Curtiss-Wright Stock May Have More Upside

We think Curtiss-Wright (CW) stock might be a good investment candidate. Why? Because you get strong margin, low-debt capital structure, and strong momentum – with room to run as the stock is meaningfully below its 52-week high.

There Are Several Things In Favor Of CW Stock

CW is up 51% so far this year, but can still run more given its good fundamentals and the fact that it is 11% below its 52-week high.

Curtiss-Wright’s Q3 2025 demonstrated expanded operating margins, stemming from efficiency gains and favorable product mix in aerospace and defense. A strong capital structure is supported by free cash flow consistently exceeding 105% conversion and a low 1.3x debt-to-EBITDA ratio.

Momentum is building, fueled by a record $3.9 billion order backlog, up 14% year-to-date, reflecting new contracts across key markets. Full-year sales and operating income guidance were raised multiple times. While the stock had a minor dip post-Q3, its year-to-date return exceeds 50%.

And Its Fundamentals Look Good

• Long-Term Profitability: About 16.9% operating cash flow margin and 17.6% operating margin last 3-year average.
• Strong Momentum: Currently in the top 10th percentile of stocks in terms of “trend strength” – our proprietary momentum metric.
• Revenue Growth: Curtiss-Wright saw revenue growth of 9.5% LTM and 11.1% last 3-year average, but this is not a growth story
• Room To Run: Despite its momentum, CW stock is trading 11% below its 52-week high.

Below is a quick comparison of CW fundamentals with S&P medians.

*LTM: Last Twelve Months

But Be Wary Of The Risks

While CW stock may be a compelling investment opportunity, it’s always helpful to be aware of a stock’s history of drawdown. This stock fell about 25% during the dot-com bubble, nearly 59% in the Global Financial Crisis, and around 20% in the recent inflation shock. Even during smaller sell-offs like 2018 and the Covid pandemic, it dropped 31% and 49%, respectively. Solid fundamentals matter, but when markets turn, significant dips can still happen. But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read CW Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

If you want to see more details, read Buy or Sell CW Stock.

CW Is Just One of Several Such Stocks

You could also check out:

1. Ubiquiti (UI)
2. BWX Technologies (BWXT)
3. Nextpower (NXT)

We chose these stocks using the following criteria:

1. Greater than $2 Bil in market cap
2. High operating or (cash flow from operations) margins
3. No instance of very large revenue decline in the past 5 years
4. Low-debt capital structure
5. Strong momentum

A portfolio that was built starting 12/31/2016 with stocks that fulfil the criteria above would have performed as follows:

• Average 12-month forward returns of nearly 15%
• 12-month win rate (percentage of picks returning positive) of about 60%

Stock Picking Falls Short Against Multi Asset Portfolios

Stocks soar and sink but bonds commodities and other assets balance the ride. A multi asset portfolio keeps returns steadier and reduces single market risk.

The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices