Don't Miss Today's Strong And Under The Radar Stock: Curtiss-Wright (CW)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Curtiss-Wright ( CW) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Curtiss-Wright as such a stock due to the following factors:

  • CW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.4 million.
  • CW is making at least a new 3-day high.
  • CW has a PE ratio of 21.
  • CW is mentioned 0.35 times per day on StockTwits.
  • CW has not yet been mentioned on StockTwits today.
  • CW is currently in the upper 20% of its 1-year range.
  • CW is in the upper 35% of its 20-day range.
  • CW is in the upper 45% of its 5-day range.
  • CW is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on CW:

Curtiss-Wright Corporation provides engineered products and services to the defense, power generation, oil and gas, commercial aerospace, and general industrial markets worldwide. It operates through three segments: Flow Control, Controls, and Surface Technologies. The stock currently has a dividend yield of 0.7%. CW has a PE ratio of 21. Currently there are 6 analysts that rate Curtiss-Wright a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Curtiss-Wright has been 227,900 shares per day over the past 30 days. Curtiss-Wright has a market cap of $3.5 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.58 and a short float of 1.3% with 3.40 days to cover. Shares are up 5.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Curtiss-Wright as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • CURTISS-WRIGHT CORP has improved earnings per share by 20.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CURTISS-WRIGHT CORP increased its bottom line by earning $3.41 versus $2.90 in the prior year. This year, the market expects an improvement in earnings ($3.85 versus $3.41).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 0.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.69, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.47, which illustrates the ability to avoid short-term cash problems.
  • 39.69% is the gross profit margin for CURTISS-WRIGHT CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 2.92% trails the industry average.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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