Shares of the aerospace and defense contractor Curtiss-Wright are experiencing a period of correction as investors question their current valuation. Despite posting robust operational results and an upgraded outlook, the stock has been trending downward for weeks following a significant rally over the past year. The central debate in the market is whether the share price can be sustained given elevated valuation multiples.
The stock extended its recent decline at the open, trading down 1.1% at $543.88. This continues a downtrend over the preceding 21 trading sessions, during which the equity lost nearly 7% of its value. Consequently, the price sits roughly 10% below its 52-week high of $601.78, recorded in November, even after posting an impressive annual gain exceeding 53%.
Strong Operational Performance
The company’s latest quarterly report, released on November 6, provided a solid counterpoint to valuation concerns by surpassing analyst expectations.
- Adjusted earnings per share (EPS) came in at $3.40, beating estimates by $0.12.
- Revenue showed year-over-year growth of 8.8%, reaching $869 million.
- The operating margin expanded by 90 basis points to 19.6%.
- The order backlog climbed to a record level above $3.9 billion.
In response to this strong performance, management raised its full-year 2025 guidance. The company now anticipates revenue growth of 10-11% and EPS growth in the range of 19-21%.
Should investors sell immediately? Or is it worth buying Curtiss-Wright?
Institutional Activity and Analyst Perspectives
Large investors have maintained interest in the stock despite its price retreat. Jump Financial LLC increased its stake by 27.8%, bringing the total position value to approximately $26.16 million. Other notable institutions also expanded their holdings, contributing to an overall institutional ownership level of 82.71%. However, some firms, such as Brown Advisory Inc., reduced their positions, cutting holdings by 11.2% in the second quarter.
The consensus view among research analysts remains favorable, with a “Moderate Buy” rating supported by five “Buy” and two “Hold” recommendations. The average price target stands at $562.83. Morgan Stanley has taken a more bullish stance, raising its target price to $645.00.
Valuation Concerns Linger
The primary headwind for the stock remains its rich valuation. Many market participants consider the current price-to-earnings (P/E) ratio of 44.33 to be stretched, particularly following the stock’s substantial prior advance. Historical analysis also indicates that Curtiss-Wright shares have demonstrated less resilience than the broader S&P 500 index during periods of economic downturn.
The future trajectory of the share price will likely depend on the company’s ability to deliver on its upgraded growth targets and thereby justify the market’s high long-term expectations. The next significant test will be the release of fourth-quarter 2025 results, which are scheduled for February 2026.
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