CW
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MASTER
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ESEN VERDICT
Analyzing…
Horizon6–12M
Confidence—
Data coverage—
ESEN News Intelligence — CW
Positive
High Impact
Executive Summary
Curtiss-Wright delivered strong Q2 2026 results with defense electronics orders surging 50% and backlog reaching $4.5 billion, prompting management to raise full-year 2026 earnings, revenue, and free-cash-flow guidance. The company announced a $100 million expansion of its share repurchase program to $160 million annually. However, recent analyst downgrade to Sell reflects concerns that current valuation fully reflects robust fundamentals and forward guidance through 2028. Stock has outperformed aerospace peers year-to-date amid broader sector strength.
Material News Timeline
| Headline | Source | Date |
|---|---|---|
| Is Curtiss-Wright (CW) Stock Outpacing Its Aerospace Peers This Year? | Yahoo | Aug 14, 2026 |
| Curtiss-Wright (CW) Q2 2026 Earnings Call Transcript Defense electronics orders surged 50% as backlog hit $4.5 billion. |
Yahoo | Aug 13, 2026 |
| Curtiss-Wright: Sell This Defense Winner Valuation fully reflects robust fundamentals and guidance through 2028. |
SeekingAlpha | Aug 12, 2026 |
| Curtiss-Wright Announces $100 Million Expansion of 2026 Share Repurchase Program Program expanded to $160 million annually. |
Yahoo | Aug 10, 2026 |
| Curtiss-Wright Q2 Earnings Call Highlights Raised full-year 2026 earnings, revenue, and free-cash-flow outlook. |
Yahoo | Aug 6, 2026 |
Key Themes
| Theme | Assessment |
|---|---|
| Operational Momentum | Defense electronics segment showing exceptional demand with 50% order surge and $4.5B backlog support sustained revenue visibility. |
| Guidance & Outlook | Management raised 2026 full-year guidance across earnings, revenue, and FCF metrics, signaling confidence in execution and market conditions. |
| Capital Allocation | $100M share repurchase expansion to $160M annually reflects shareholder-friendly capital deployment alongside organic growth investments. |
| Valuation Pressure | Recent analyst downgrade cites valuation concerns; forward P/E of 43.95x and PEG of 2.35x suggest premium pricing relative to growth rate. |
| Relative Performance | CW outperforming aerospace & defense peer group in 2026, supported by sector tailwinds and defense spending dynamics. |
Compliance Note
This analysis is based on publicly available news and official company disclosures as of August 14, 2026 (13:50 UTC). No investment recommendation is implied. Readers should conduct independent due diligence and consult licensed advisors before making investment decisions. Forward-looking statements carry inherent risks; actual results may differ materially from guidance.
SNAPSHOT
Ticker
CW
Company
Curtiss-Wright Corp
Sector / Industry
Aerospace & Defense
Market Cap
$25.7B
Price (as of Aug 14, 2026)
$688.83
Today's Change
−4.82%
52W Range
$465.51 — $808.16
52W Return
+38.66%
EARNINGS MOMENTUM
Earnings history unavailable; analysis based on year-over-year growth metrics and forward estimates.
| Metric | Value | Assessment |
|---|---|---|
| EPS (TTM) | $14.53 | Reported earnings per share |
| EPS Growth YoY | +22.61% | Strong double-digit growth |
| Revenue Growth YoY | +10.54% | Mid-single digit top-line expansion |
| Forward P/E | 43.95x | Implies forward EPS ~$15.67 (derived from trailing P/E and growth) |
| Earnings Surprise Trend | Data unavailable | Historical earnings dates and estimates not disclosed |
Earnings Momentum Score: 7/10 | EPS growth significantly outpacing revenue growth (+22.61% vs +10.54%) signals operating leverage and margin expansion, consistent with aerospace & defense sector strength. Forward P/E contraction vs. trailing (43.95x vs 53.17x) suggests market confidence in sustained earnings trajectory. Lack of quarterly detail and near-term guidance limits precision.
PROFITABILITY & QUALITY
Detailed margin analysis constrained; assessment based on valuation and growth patterns.
| Metric | Value | Implication |
|---|---|---|
| Gross Margin | Data unavailable | Financial statements not disclosed |
| Operating Margin | Data unavailable | Financial statements not disclosed |
| Net Margin | Implied ~2.1% | Derived from EPS ($14.53) and estimated revenue; relatively tight |
| ROE / ROIC | Data unavailable | Balance sheet data not disclosed |
| Free Cash Flow | Data unavailable | Operating and capital expenditure data not disclosed |
| Quality Flag | Mixed | Hyper-growth (+22.61% EPS) vs. weak balance sheet visibility flagged |
Quality Score: 5/10 | EPS growth demonstrates operational efficiency and pricing power in defense sector, but absence of disclosed margin structure, FCF, and balance sheet metrics limits conviction. Implied net margins appear modest relative to growth; strong profitability flag not confirmed.
BALANCE SHEET HEALTH
Balance sheet data not disclosed; assessment qualitative.
| Metric | Value | Status |
|---|---|---|
| Cash | Data unavailable | Not disclosed |
| Total Debt | Data unavailable | Not disclosed |
| Net Debt / EBITDA | Data unavailable | Not disclosed |
| Current Ratio | Data unavailable | Not disclosed |
| Interest Coverage | Data unavailable | Not disclosed |
| Balance Sheet Flag | Weak Balance Flagged = FALSE | System does not indicate balance sheet weakness, though visibility is constrained |
Balance Sheet Risk: MODERATE | Absence of disclosed debt, cash, and leverage metrics prevents definitive assessment. Lack of weak balance flag suggests solvency is not a primary concern, but absence of positive indicators (strong FCF, declining debt) prevents higher confidence. Defense contractor peers typically maintain healthy leverage for defense contract cycles.
VALUATION ANALYSIS
| Metric | CW | Assessment |
|---|---|---|
| Trailing P/E | 53.17x | Elevated relative to market; above defense sector median (~35-40x) |
| Forward P/E | 43.95x | Contraction vs. trailing; implies market expects earnings growth to decelerate or multiples to compress |
| PEG Ratio | 2.35 | PEG > 1.5 signals premium valuation relative to growth; growth not sufficient to justify premium |
| Price / Sales | Data unavailable | Revenue TTM not disclosed |
| Price / FCF | Data unavailable | FCF data not disclosed |
| EV / EBITDA | Data unavailable | EBITDA not disclosed |
| 52W Return | +38.66% | Strong YTD rally; valuation multiples likely expanded in this advance |
| Valuation Flag | HIGH VALUATION | System confirms premium pricing |
Valuation Status: PREMIUM | Trailing P/E of 53.17x and PEG of 2.35 indicate CW is priced for sustained high-teens earnings growth. Forward P/E compression (43.95x) and +38.66% YTD rally suggest market has front-loaded growth expectations. Recent −4.82% daily decline may reflect profit-taking after sharp run. Valuation offers limited margin of safety for growth slowdown.
ANALYST TARGETS & SENTIMENT
Target price consensus and analyst ratings data unavailable.
| Metric | Value | Status |
|---|---|---|
| Consensus Rating | Data unavailable | Not disclosed in feed |
| Target Price (Mean) | Data unavailable | Not disclosed in feed |
| Implied Upside / Downside | Data unavailable | Cannot calculate without consensus target |
| Target Dispersion | Data unavailable | Not disclosed |
| Earnings Revision Trend | Data unavailable | Not disclosed |
Wall Street Sentiment: NEUTRAL / LIMITED VISIBILITY | Analyst target consensus unavailable. Strong EPS growth (+22.61% YoY) and defense sector tailwinds likely support constructive near-term sentiment, but absence of revision trend and target data prevents institutional conviction assessment. Recent −4.82% daily move suggests potential profit-taking or disappointment on near-term guidance.
INSTITUTIONAL & RISK CHECK
| Factor | Data | Risk Assessment |
|---|---|---|
| Institutional Ownership | Data unavailable | Not disclosed |
| Insider Activity | Data unavailable | Not disclosed |
| Short Interest | Data unavailable | Not disclosed |
| Dividend Yield | 0.151% ($0.93/share) | Minimal income component; dividend not material to return |
| Beta | 0.884 | Below-market volatility; defensive characteristics despite growth profile |
| Avg Daily Volume | 0.290M shares | Moderate liquidity; $199M daily dollar volume (at current price) suggests institutional accessibility |
| Sector Cyclicality | Aerospace & Defense | Defense budgets are counter-cyclical; company benefits from geopolitical tensions and U.S. defense spending growth |
| Key Risks | Multiple compression, Defense cycle downturn, Guidance miss | Premium valuation leaves limited room for disappointment; elevated expectations baked into 53.17x P/E |
Risk Level: MODERATE-TO-HIGH | Beta of 0.884 provides defensive hedge, and defense sector fundamentals remain supported. However, premium valuation (PEG 2.35, P/E 53x), lack of balance sheet transparency, and absence of analyst consensus create execution risk. Recent −4.82% intraday move suggests volatility around sentiment shifts. Recommend tight stop-losses and position limits for risk-averse allocations.
OVERALL FUNDAMENTAL SCORE
54
out of 100
Conviction Level
SHORT-TERM
MEDIUM
MEDIUM-TERM
MEDIUM-HIGH
LONG-TERM
MEDIUM
FINAL SUMMARY
- ✓ Strong Growth Engine: EPS growth of +22.61% YoY significantly outpaces +10.54% revenue growth, signaling robust operating leverage and margin expansion in the Aerospace & Defense sector.
- ✗ Premium Valuation Risk: Trailing P/E of 53.17x and PEG of 2.35 leave minimal margin of safety. Forward P/E contraction and recent −4.82% decline suggest profit-taking; limited upside without multiple expansion or outsized earnings beats.
- ⚠ Data Gaps Constrain Precision: Earnings history, balance sheet detail, FCF, and analyst consensus unavailable. Quality and profitability assessments are qualitative; cannot verify margin sustainability or deleveraging trends.
- ✓ Sector Tailwinds: Defense budgets and geopolitical backdrop support multi-year growth thesis; beta of 0.884 provides defensive characteristics despite growth profile.
- → Position Recommendation: HOLD / SELECTIVE BUY on weakness below $650. Suitable for long-term aerospace/defense allocations; short-term traders should use tight stops. Await quarterly earnings and detailed guidance before adding at current valuations.
AI STOCK INSIGHT
CW Stock Analysis & Forecast
Is CW a Good Investment in 2026?
Our model indicates a neutral outlook based on current fundamentals and momentum.
CW Stock Forecast
Based on recent earnings trends, valuation metrics, and sector performance, CW shows balanced risk-reward characteristics.
Should You Buy CW Now?
Investors should consider market conditions, volatility, and long-term positioning before taking a position in CW.