We recently published a list of 10 Defense and Aerospace Stocks To Benefit From Trump’s Peace Through Strength Policy. In this article, we are going to take a look at where Curtiss-Wright Corporation (NYSE:CW) stands against other defense and aerospace stocks to benefit from Trump’s peace through strength policy.
Donald Trump is a vocal critic of international conflicts, especially those in which the US gets involved militarily or financially. At his inauguration, he continued the old Republican policy of Peace Through Strength, implying that the US and its allies should increase defense spending not to fight more wars but to ensure fewer wars happen.
In other words, this means defense contractors continue to make money even if global conflicts die down under Donald Trump. EU leaders have just held an informal meeting to discuss transatlantic relations and defense spending. President of the European Commission, Ursula von der Leyen, is considering extraordinary measures to boost defense budgets.
Under these circumstances, it is vital to understand that most defense and aerospace stocks should continue to benefit even during peaceful times. We, therefore, decided to create a list of stocks that are likely to survive any change in policy during the unpredictable Donald Trump’s term.
To come up with our list of 10 Defense and Aerospace stocks that will benefit from Trump’s Peace Through Strength policy, we only considered stocks that have a market cap of at least $5 billion, an ROE of over 15%, and a forward PE under 40 against an industry average PE of 63.
An assembly line of industrial vehicles, showcasing the company’s technological prowess.
Curtiss-Wright Corporation (NYSE:CW)
Curtiss-Wright Corporation (NYSE:CW) is an engineered product, services, and solutions provider to commercial power, aerospace & defense, process, and general industrial markets. It operates in defense electronics, aerospace & industrial, and naval & power segments. The company released its Q3 earnings report recently and showed an outstanding performance.
According to the report, aerospace & industrial revenue went up by 4%, defense electronics revenue rose by 12%, and naval & power sales grew by 14%. As a result of the strong Q3 performance Curtiss-Wright (NYSE:CW) increased its FY 2024 financial guidance. The expected revenue growth is 7-9% while the expected operating income growth is 7-10%.
Analyzing the company’s attractive financial guidance and stock performance over the previous year, it might continue to draw investors’ attention as countries boost their defense spending. The stock outperformed the market by gaining over 50% in the last year and has the potential to consistently deliver high single-digit growth.
Overall, CW ranks 9th on our list of defense and aerospace stocks to benefit from Trump’s peace through strength policy. While we acknowledge the potential of CW as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as CW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.