Curtiss-Wright Corporation, together with its subsidiaries, provides engineered products, solutions, and services mainly to aerospace and defense, commercial power, process, and industrial markets worldwide. It operates through three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. The Aerospace & Industrial segment offers industrial and specialty vehicle products, such as power management electronics, traction inverters, transmission shifters, and control systems; sensors, controls, and electro-mechanical actuation components used on commercial and military aircraft; and surface technology services including shot peening, laser peening, and engineered coatings. The Defense Electronics segment provides commercial off-the-shelf embedded computing board-level modules and processing equipment, data acquisition and flight test instrumentation equipment, integrated subsystems, instrumentation and control systems, tactical communications solutions; and electronic stabilization products, and weapons handling systems; avionics and electronics; flight test equipment; and aircraft data management solutions. The Naval & Power segment offers main coolant pumps, power-dense compact motors, generators, steam turbines, valves, and secondary propulsion systems; energy absorbers, retractable hook cable systems, net-stanchion systems and mobile systems to support fixed land-based arresting systems; hardware, valves, fastening systems, specialized containment doors, airlock hatches, and spent fuel management products; reactor coolant pumps and control rod drive mechanisms for commercial nuclear power plants, as well as various nuclear reactor technologies. This segment furnishes severe-service valve technologies and services, heat exchanger repair, and piping test and isolation products, and offers ship repair and maintenance for the U.S. navy. Curtiss-Wright Corporation was incorporated in 1929 and is headquartered in Davidson, North Carolina.

Curtiss-Wright appears to be a high-quality but already expensive industrial business with strong profitability and moderate leverage. A P/E of 55.5, P/S of 7.9, P/B of 10.6, and P/FCF of 51.3 are noticeably above the industry median, indicating high market expectations and limiting the potential for further re-rating. At the same time, earnings quality is indeed strong: ROE of 19.6%, ROA of 9.8%, ROI of 14.8%, and an operating margin of 18.4% are significantly above industry benchmarks and improving over time. Net margin also remains around 14%, while gross margin is stable at about 37%, which points to pricing discipline and cost control. The balance sheet overall looks comfortable: debt/equity of 0.29 is below the industry median, current ratio of 1.52 is acceptable, although a quick ratio of 1.0 leaves little liquidity buffer. Long-term debt has declined in recent periods relative to earlier levels, supporting the company’s investment profile. Revenue, operating profit, net income, and EBITDA have generally maintained positive momentum, but growth rates do not appear high enough to justify such premium multiples without caveats. Equity and assets are growing, confirming the business’s resilience, but cash holdings have decreased and dividend yield has fallen, so shareholder returns through dividends are not currently a strong argument. Overall, the fundamentals support the current valuation more than they call for a meaningful increase. For an investor, this is a story of high quality and stability, but with a significant amount of optimism already priced in. Therefore, the target should be adjusted slightly downward to reflect the elevated multiples and limited dividend contribution, despite strong operating efficiency.

Curtiss-Wright Corporation

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Средний индекс, значительно упал. Рынок не поддерживает быков.

Medium index, significantly down. The market does not support the bulls.

Средний индекс, незначительно упал. Отток средств из лонгов остается значительным.

Medium index, slightly down. The outflow of funds from longs remains significant.

Strong profitability and moderate debt support CW, but very high multiples and weak dividend yield limit revaluation potential.

Huntington Ingalls Industries, Inc. HII is scheduled to release second-quarter 2026 earnings on July 30, 2026, before market open. The company delivered an earnings surprise of 2.43% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors Likely to Affect HII’s Q2 Results
Higher sales volume from surface combatants is likely to have boosted the Ingalls segment’s top line in the second quarter.
Higher sales volumes from submarine and aircraft carrier programs are likely to have boosted the Newport News segment’s revenue performance.
Higher sales volumes from All-Domain Operations, Global Security and Unmanned Systems are likely to have bolstered the company’s Mission Technologies segment’s revenues in the second quarter of 2026.
However, higher general and administrative expenses are likely to have hurt the company’s earnings.
Huntington Ingalls Industries, Inc. Price and EPS Surprise
Q2 Estimates for HII Stock
The Zacks Consensus Estimate for HII’s second-quarter sales is pegged at $3.14 billion, which indicates an increase of 2% from the prior-year number.
The consensus estimate for HII’s earnings is pegged at $3.80 per share, which indicates a year-over-year decline of 1.6%.
What the Zacks Model Unveils for HII
Our proven model does not conclusively predict an earnings beat for HII this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.
Earnings ESP: Huntington Ingalls has an Earnings ESP of +0.53%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: HII currently carries a Zacks Rank of 4. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Investors may consider the following players from the same sector, as these have the right combination of elements to post an earnings beat this reporting cycle.
CurtissWright CW is slated to report its second-quarter 2026 results on Aug. 5, after market close. It has an Earnings ESP of +0.36% and a Zacks Rank of 3 at present.
CW’s long-term (three to five years) earnings growth rate is 14.3%. The Zacks Consensus Estimate for earnings is pegged at $3.62 per share, which suggests a year-over-year rise of 12.1%.
Axon Enterprise AXON is scheduled to report its second-quarter 2026 results on Aug. 5, after market close. It has an Earnings ESP of +4.76% and a Zacks Rank of 3 at present.
AXON’s long-term earnings growth rate is 30.1%. The Zacks Consensus Estimate for revenues stands at $868.4 million, which implies a year-over-year increase of 29.9%.
ATI INC ATI is slated to report its second-quarter 2026 results on Aug. 6, before market open. It has an Earnings ESP of +1.32% and a Zacks Rank of 2 at present.
ATI’s long-term earnings growth rate is 28%. The Zacks Consensus Estimate for earnings is pegged at $1.03 per share, which suggests a year-over-year rise of 39.2%.
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Huntington Ingalls to Post Q2 Earnings: What's in the Cards?

The Zacks Aerospace sector’s second-quarter 2026 earnings are expected to outperform estimates, driven by rising defense spending, increasing geopolitical tensions, and continued military modernization focused on missile defense, autonomous systems, artificial intelligence, space, and cybersecurity. These trends, along with growing international defense demand and efforts to strengthen the defense industrial base, reinforce long-term growth prospects for major defense contractors. Per the latest Earnings Preview, the sector’s quarterly earnings are expected to rise 21.1% on 11.8% higher revenues.
With the assistance of the Zacks Stock Screener, we have identified four defense stocks, namely General Dynamics GD, Curtiss-Wright CW, Huntington Ingalls Industries HII and L3Harris Technologies LHX, which are poised to beat on earnings this reporting cycle.
These stocks have the ideal combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) — to surpass expectations. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Factors That are Likely to Influence Defense Stocks’ Q2 Results
In the second quarter of 2026, the U.S. defense sector is expected to have benefited from the government's commitment to higher military spending and accelerating military modernization amid rising geopolitical tensions. Increased investment in missile defense, advanced aircraft, autonomous systems, AI, cyber capabilities, and naval expansion, together with growing global defense budgets, strengthened long-term demand and export opportunities for major U.S. defense contractors.
Another key indicator supporting the U.S. defense sector is the industry's record order backlog. Major defense contractors continue to build substantial backlogs as governments place multi-year orders for aircraft, missile systems, naval platforms, satellites, and defense technologies. A large backlog provides strong revenue visibility, as these long-duration contracts are typically executed over several years, supporting stable cash flows and earnings. It also reflects sustained global demand driven by rising defense budgets, military modernization programs, and increased international orders, positioning the sector for continued growth even as individual contract awards fluctuate sequentially.
Defense companies with exposure to commercial aerospace are likely to have benefited from the steady recovery in global air travel, supporting demand for aircraft, engines, and related components alongside their core defense businesses.
However, these positives are likely to have been partially offset by persistent challenges, including skilled labor shortages and supply-chain disruptions. U.S. tariffs on key trading partners are expected to have increased costs and delayed production and deliveries, tempering overall second-quarter performance of some defense companies.
Potential Defense Outperformers
General Dynamics engages in mission-critical information systems and technologies; land and expeditionary combat vehicles, armaments and munitions; shipbuilding and marine systems; and business aviation. Marine Systems likely remained a key growth driver, supported by improving shipyard productivity, stronger execution on Columbia- and Virginia-class submarine programs, and ongoing capacity expansion to meet rising U.S. naval demand. Meanwhile, Gulfstream is expected to report another solid quarter, benefiting from sustained manufacturing improvements and strong deliveries across the G700 and G800 aircraft programs.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $3.95 per share, indicating an improvement of 5.6% from the year-ago quarter’s reported figure. GD currently has an Earnings ESP of +1.61% and a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here.
General Dynamics Corporation Price and EPS Surprise
Curtiss-Wright provides highly engineered products and services for high-performance platforms, and critical applications in key areas such as commercial aerospace and defense electronics, reactor coolant pumps for next-generation nuclear reactors as well as advanced surface treatment technologies. The company’s quarterly performance is expected to have gained from increased U.S. and allied defense spending, particularly in naval defense and ground defense programs. The company also expects continued momentum from robust order activity, providing strong revenue visibility.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $3.62 per share, indicating an increase of 12.1% from the year-ago reported figure. CW currently has an Earnings ESP of +0.36% and a Zacks Rank of 3.
Curtiss-Wright Corporation Price and EPS Surprise
Huntington Ingalls Industries designs, builds, and maintains nuclear-powered ships, including aircraft carriers and submarines, as well as non-nuclear vessels such as surface combatants, expeditionary warfare/amphibious assault and coastal defense surface ships for the U.S. Navy and Coast Guard. The company also provides after-market services for military ships worldwide. Higher activity across several key defense programs likely drove broad-based growth during the second quarter. Strong shipbuilding demand supported Ingalls, increased submarine and aircraft carrier production benefited Newport News, while higher program activity across Warfare Systems, Global Security, and Unmanned Systems contributed to the growth of Mission Technologies.
The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $3.80 per share, indicating a decrease of 1.6% from the year-ago reported figure. HII currently has an Earnings ESP of +0.53% and a Zacks Rank of 3.
Huntington Ingalls Industries, Inc. Price and EPS Surprise
L3Harris Technologies is a technology-oriented aerospace and defense player that delivers advanced defense technologies across air, land, sea, space and cyber domains. Higher demand for resilient communications, classified ISR and space programs, international defense platforms, and increased production across missile, munitions, and electronic warfare programs likely supported broad-based revenue growth across the company's major defense segments in the to-be-reported quarter. Continued momentum in the Space Development Agency's Tracking Tranche 3 program and Aerojet Rocketdyne's propulsion businesses must have further strengthened growth prospects.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $2.80 per share, indicating an improvement of 0.7% from the year-ago quarter’s reported figure. LHX currently has an Earnings ESP of +2.09% and a Zacks Rank of 3.
L3Harris Technologies Inc Price and EPS Surprise
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4 Defense Stocks Poised to Beat Q2 Earnings Expectations

General Dynamics GD is scheduled to release second-quarter 2026 results on July 29, before market open. The company delivered an earnings surprise of 11.4% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Key Factors Likely to Influence GD’s Q2 Results
General Dynamics heads into second-quarter earnings season with a record backlog and healthy book-to-bill ratios across its business segments, supporting strong revenue visibility despite macroeconomic uncertainty. The company's defense operations are expected to have remained the primary growth driver, benefiting from sustained demand for submarines, combat vehicles, munitions and mission systems amid rising global defense spending.
Marine Systems is likely to have been one of the biggest catalysts for the second quarter. Management highlighted improving labor productivity across its shipyards, stronger material availability and steadily improving supplier performance, all of which might have supported higher throughput on the Columbia- and Virginia-class submarine programs. The company continues to invest aggressively in expanding shipyard capacity to meet growing U.S. naval demand. If these operational improvements continued through the second quarter, Marine Systems could have been a major contributor to revenue and margin expansion.
Gulfstream entered the second quarter after recording the strongest first-quarter delivery performance in its history, while management emphasized durable manufacturing improvements across the G700 and G800 programs. Management expects second-quarter aircraft deliveries to remain similar to the first quarter before rising further in the second half of the year, indicating another solid quarter for the segment.
Although management said supply-chain conditions have improved, critical components sourced from single suppliers continue to constrain production. Any renewed disruptions could slow the pace of submarine construction and limit further throughput improvements despite robust customer demand.
GD’s Q2 Expectations
The Zacks Consensus Estimate for earnings is pegged at $3.95 per share, indicating a year-over-year increase of 5.6%.
The Zacks Consensus Estimate for revenues is pinned at $13.49 billion, implying a year-over-year improvement of 3.4%.
The Zacks Consensus Estimate for total Gulfstream aircraft deliveries is pinned at 42, compared with the company’s registered figure of 38 in the year-ago quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for General Dynamics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
General Dynamics Corporation Price and EPS Surprise
Earnings ESP: The company’s Earnings ESP is +1.61%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, the company carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Other Stocks to Consider
Investors may also consider the following players from the same sector as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
Hexcel HXL is likely to come up with an earnings beat when it announces second-quarter results on July 29, before market open. It has an Earnings ESP of +6.13% and a Zacks Rank #3 at present.
The consensus estimate for HXL’s second-quarter sales suggests an improvement of 6.5% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 12.6% for the trailing four quarters.
L3Harris Technologies LHX is expected to come up with an earnings beat when it reports second-quarter results on July 29, after market close. It has an Earnings ESP of +2.09% and a Zacks Rank #3 at present.
The consensus estimate for LHX’s second-quarter sales implies an improvement of 6.8% from the year-ago quarter’s level. The Zacks Consensus Estimate for earnings is pinned at $2.80 per share, indicating year-over-year growth of 0.7%.
Curtiss-Wright CW is likely to come up with an earnings beat when it announces second-quarter results on Aug. 5, after market close. It has an Earnings ESP of +0.36% and a Zacks Rank #3 at present.
The consensus estimate for CW’s second-quarter sales suggests an improvement of 6.2% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 3.8% for the trailing four quarters.
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General Dynamics to Release Q2 Earnings: Here's What to Expect

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the State Street SPDR S&P MIDCAP 400 ETF Trust (Symbol: MDY) where we have detected an approximate $292.7 million dollar outflow -- that's a 1.1% decrease week over week (from 39,567,160 to 39,142,160). Among the largest underlying components of MDY, in trading today Carpenter Technology Corp. (Symbol: CRS) is up about 1.6%, Curtiss-Wright Corp. (Symbol: CW) is up about 1.5%, and Twilio Inc (Symbol: TWLO) is higher by about 1.2%. For a complete list of holdings, visit the MDY Holdings page » The chart below shows the one year price performance of MDY, versus its 200 day moving average:
Looking at the chart above, MDY's low point in its 52 week range is $559.89 per share, with $704.45 as the 52 week high point — that compares with a last trade of $688.20. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further MDY Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

State Street SPDR S&P MIDCAP 400 ETF Trust Experiences Big Outflow

Key Points
Record global defense spending is creating a long-term growth runway for financially strong defense contractors.
General Dynamics, Northrop Grumman, and Curtiss-Wright combine healthy balance sheets with expanding defense backlogs.
Investors should balance powerful spending tailwinds against elevated valuations, political uncertainty, and execution risks.
The world is arming up at a pace not seen in decades. Global military spending reached a record $2.9 trillion in 2025, NATO's combined defense budgets topped $1.5 trillion for the first time in 2026, and members have committed to a path toward spending 5% of their gross domestic product (GDP) on defense. Europe alone lifted spending by double-digit percentages, the fastest growth since the Cold War. That flood of money flows to the companies that build the ships, planes, and systems, and the ones best positioned to capture it are those with the financial strength to expand. Here are three defense contractors with solid balance sheets and clear momentum.
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1. General Dynamics
General Dynamics (NYSE: GD) is the most diversified of the group, spanning nuclear submarines, combat vehicles, government IT, and Gulfstream business jets. That mix matters because it gives the company multiple ways to grow as budgets rise at home and abroad.
The balance sheet is heading in the right direction. General Dynamics finished its most recent quarter with about $3.7 billion in cash, and net debt fell to roughly $4.4 billion from $5.7 billion at the end of 2025, meaning the company is paying down borrowings while still investing. Its total order backlog hit a record near $131 billion, with total potential contract value closer to $188 billion, and revenue for its Marine Systems unit, which builds submarines, rose 21% as the U.S. races to expand its undersea fleet. With a genuine cash engine and shrinking debt, General Dynamics can fund shipyard expansion while rewarding shareholders.
2. Northrop Grumman
Northrop Grumman (NYSE: NOC) sits at the center of the highest-priority programs in defense, including the B-21 Raider stealth bomber, space systems, and missile defense, all areas that swell when threats rise. Its order backlog stands at a record of roughly $96 billion, giving it years of visible work.
The financial picture here comes with a nuance worth understanding. Northrop generated strong free cash flow of about $3.3 billion in 2025, but it is now plowing money into expanding B-21 production, committing to a multiyear capital investment plan of about $2.5 billion after agreeing to boost bomber capacity by 25%. That heavy spending can make near-term cash flow uneven, yet it is the kind of investment that builds future earnings. Management reaffirmed full-year projections calling for free cash flow of roughly $3.1 billion to $3.5 billion, indicating that underlying cash generation remains healthy even as it invests for growth.
3. Curtiss-Wright
Curtiss-Wright (NYSE: CW) is the smallest and least famous of the three, and it may have the cleanest balance sheet. It makes specialized defense electronics, actuation systems, and the nuclear technology that powers submarines and aircraft carriers, giving it a quiet but critical role in the naval build-out.
Curtiss-Wright carries roughly $958 million in total debt against about $371 million in cash and short-term investments, and its net debt sits at a conservative level relative to its equity. Just as important, it converts more than 105% of its earnings into free cash flow, and it recently raised its cash flow outlook toward the $580 million to $600 million range. New orders climbed 16%, and its order backlog reached about $4.3 billion, with roughly 90% of that expected to turn into revenue during the next three years. That is a durable, low-leverage business riding the same demand wave as its larger peers.
Defense investing is not without pitfalls. These stocks have run up as investors piled onto the rearmament theme, so valuations are no longer cheap. Budgets ultimately depend on politics, and appropriations can be delayed, trimmed, or redirected, especially in the U.S. Big programs like the B-21 also carry execution risk, and heavy upfront spending can pressure profits before it pays off.
The takeaway for investors
Rising global military budgets are a powerful and durable tailwind, but the companies that win will be the ones with the cash and balance sheets to scale into the demand. General Dynamics offers diversification and a strengthening balance sheet; Northrop Grumman offers exposure to the most critical programs while investing for growth; and Curtiss-Wright offers low-leverage, high-quality cash generation. I would treat all three as ways to invest in a lasting trend, while keeping valuation and political risk in view.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Defense Stocks Poised to Benefit From Rising Global Military Budgets

RTX Corporation RTX continues expanding its global sustainment capabilities to support military and commercial customers throughout the lifecycle of their aircraft and defense platforms. The company provides maintenance, repair, overhaul and modernization support across a broad portfolio of engines, avionics, sensors and mission systems. These long-term service capabilities strengthen customer relationships while generating recurring business opportunities beyond initial equipment deliveries.
Sustainment services have become increasingly important as governments and commercial operators seek to maximize fleet readiness while extending the operational life of existing platforms. RTX supports customers through integrated maintenance programs, spare parts, repairs, upgrades and digital maintenance solutions that improve equipment availability and operational performance across diverse operating environments.
The company's broad installed base creates ongoing demand for aftermarket support across commercial aviation and defense markets. By combining engineering expertise with global repair and service networks, RTX continues enhancing its ability to deliver comprehensive lifecycle support for aircraft, propulsion systems and mission-critical equipment.
As aircraft fleets continue expanding and defense platforms remain in service for decades, demand for sustainment solutions is expected to grow. RTX's extensive global service network and lifecycle support capabilities position the company to benefit from long-term maintenance and modernization opportunities across the aerospace and defense markets.
Companies Expanding Lifecycle Sustainment Capabilities
Aerospace and defense companies continue expanding lifecycle support capabilities to improve fleet readiness and long-term customer support. Companies like L3Harris Technologies, Inc. LHX and Curtiss-Wright Corporation CW are also strengthening sustainment services across military and commercial platforms.
L3Harris expands lifecycle sustainment through its Global Sustainment Solutions, providing depot support, avionics upgrades, testing, certification and logistics services that enhance fleet readiness and mission capability across diverse aircraft platforms.
Curtiss-Wright supports long-term platform availability through maintenance, repair, overhaul and aftermarket services across naval, aerospace and defense systems.
Earnings Estimates for RTX
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 10.02% and 8.96%, respectively.
RTX Stock Trading at a Premium
RTX is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 2.71X compared with the industry average of 2.56X.
RTX Stock Price Performance
Over the past year, RTX shares have rallied 31.3% against the industry’s 0.1% decline.
Image Source: Zacks Investment Research
RTX’s Zacks Rank
RTX currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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Can RTX's Global Sustainment Services Drive Long-Term Growth?

Key Points
Aerospace investors don't need to bet on highly leveraged moonshots when profitable, cash-generating industry leaders offer direct exposure to long-term aerospace and defense growth.
The strongest aerospace businesses often sit in the critical infrastructure layer.
Space Exploration Technologies (NASDAQ: SPCX) raised $86 billion in its IPO and, days later, turned around to borrow another $25 billion in bonds to refinance a bridge loan it took out after absorbing X and xAI and their combined $17.5 billion in existing debt. The company posted a net loss of $4.28 billion in Q1 2026 alone. Its xAI division, the primary justification for the new debt, generated $818 million in revenue against $2.47 billion in operating losses in the same quarter. Some analysts project SpaceX will carry $400 billion in net debt by 2031.
That is one version of the aerospace investment thesis. Here is a different one: Invest in these four companies. It doesn't require betting on a company that raised $86 billion, borrowed $25 billion more, and is still losing money.
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1. RTX
RTX (NYSE: RTX) runs two of the most strategically positioned businesses in global aerospace: Pratt & Whitney, which makes the engines that power the aircraft fleets of several major airlines and air forces in the world, and Raytheon, which supplies missiles, radar systems, and electronic warfare capabilities at a moment when global defense budgets are expanding faster than they have in a generation.
In Q1 2026, RTX posted $22.1 billion in sales -- up 9% year over year -- with Raytheon's operating profit up 24% versus the prior year. For full-year 2026, the company guided to $92 billion to $93 billion in adjusted sales. Its backlog, a measure of contracted future revenue, sits at a level that provides years of visibility. RTX is a business that generates cash in peace and grows in conflict. That combination is not common, and it doesn't require a 30-year bet on an AI product with no revenue path.
2. Heico
Heico (NYSE: HEI) is the aerospace version of a toll road. The company makes FAA-approved replacement parts for commercial aircraft at prices lower than the original equipment manufacturers, creating defensible alternative supply chain that airlines depend on to manage maintenance costs.
In Q2 fiscal 2026, Heico posted record net income up 49% year over year, on record net sales of $1.375 billion -- up 25%. The company has successfully integrated four acquisitions in fiscal 2026 alone while maintaining its margin structure. The Electronic Technologies Group -- which serves defense, space, and aerospace markets -- posted 56% operating income growth and 34% sales growth in the same quarter.
Heico has compounded earnings per share for more than three decades through every aerospace cycle because its business model sits in the maintenance layer, not the capital expenditure layer. Airlines don't stop maintaining planes.
3. Curtiss-Wright
Curtiss-Wright (NYSE: CW) is a company that doesn't generate headlines, which is part of why it's worth knowing. The company makes highly specialized motion control systems, embedded computing, and defense electronics used in naval submarines, combat vehicles, and nuclear power plants.
In Q1 2026, Curtiss-Wright reported $914 million in sales -- up 13% -- with operating income up 23% and operating margin expanding to 17.5%. EPS came in at $3.46. Its 2026 guidance calls for higher sales and higher operating margins. The defense nuclear business is the part of Curtiss-Wright that most investors underweight: Every nuclear aircraft carrier and submarine in the U.S. fleet relies on components supplied by Curtiss-Wright.
With the U.S. Navy's shipbuilding budget expanding and nuclear propulsion remaining the only viable power source for strategic submarine platforms, this revenue stream is effectively contractually locked in for decades.
4. Hexcel
Hexcel makes the carbon fiber composites that go inside commercial aircraft wings, fuselage panels, and engine nacelles -- the structural materials that make modern wide-body aircraft light enough to be fuel-efficient at scale.
In Q1 2026, Hexcel reported net sales of $501.5 million, up 9.9% year over year, with adjusted EPS of $0.59 -- beating analyst estimates by 14%. The widebody production ramp up at Airbus and Boeing is the tailwind that makes this business worth understanding. Both manufacturers are accelerating production of the A350 and 787, aircraft whose airframes depend on carbon fiber composites at a level that aluminum-era planes never did. With a market cap of $7.4 billion, Hexcel trades at a fraction of the valuation commanded by aerospace companies with less direct exposure to the same build-rate ramp.
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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, Curtiss-Wright, Heico, and RTX. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SpaceX Is Losing Money and Borrowing Billions. These 4 Profitable Aerospace Stocks Might Be Better Buys Right Now

In recent trading, shares of Curtiss-Wright Corp. (Symbol: CW) have crossed above the average analyst 12-month target price of $178.50, changing hands for $180.35/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 6 different analyst targets within the Zacks coverage universe contributing to that average for Curtiss-Wright Corp., but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $170.00. And then on the other side of the spectrum one analyst has a target as high as $187.00. The standard deviation is $7.816.
But the whole reason to look at the average CW price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with CW crossing above that average target price of $178.50/share, investors in CW have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $178.50 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Curtiss-Wright Corp.:
Recent CW Analyst Ratings Breakdown
»
Current
1 Month Ago
2 Month Ago
3 Month Ago
Strong buy ratings:
5
5
5
6
Buy ratings:
0
0
0
0
Hold ratings:
0
0
0
0
Sell ratings:
0
0
0
0
Strong sell ratings:
0
0
0
0
Average rating:
1.0
1.0
1.0
1.0
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on CW — FREE.
Also see:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

CW Crosses Above Average Analyst Target

Curtiss-Wright’s CW robust presence in the aerospace market, solid liquidity and low debt are strong positives. Given its growth prospects, CW makes for a solid investment option in the Aerospace sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History of CW
The Zacks Consensus Estimate for 2026 earnings per share is pegged at $15.16, which indicates year-over-year growth of 14.6%.
The consensus estimate for 2026 sales is $3.77 billion, which indicates year-over-year growth of 7.9%.
CW’s long-term (three-to-five years) earnings growth rate is pegged at 14.2%.
It delivered an average earnings surprise of 3.81% in the last four quarters.
CW Stock’s Debt Position
Currently, the company’s total debt-to-capital is 26.68%, better than the industry’s average of 41.35%.
CW’s times interest earned (TIE) ratio at the end of the first quarter of 2026 was 16.20. A TIE ratio of more than one indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
CW’s Liquidity
CW’s current ratio at the end of the first quarter of 2026 was 1.52. A current ratio of greater than one indicates the company’s ability to meet its future short-term liabilities without difficulties.
Curtiss-Wright’s Expanding Clean Energy and Defense Outlook
Curtiss-Wright is set to benefit from the global shift toward cleaner energy, especially nuclear power, as countries work to cut emissions and meet rising electricity demand. The company plays a critical role in new-build nuclear reactor projects by supplying reactor coolant pumps, as well as a variety of ancillary plant products and services for the Generation III+ Westinghouse AP1000 reactors. The long-term growth opportunities for the company remain solid in this market, backed by new AP1000 orders, with the potential for 20-25 reactors to be built in Central and Eastern Europe. Both Poland and Bulgaria are expected to begin production before the end of the decade. The company is also exploring opportunities in the United States.
At the same time, strong demand in defense and aerospace is supporting the company’s long-term outlook. Higher U.S. funding for submarine programs and broader increases in global defense budgets are driving growth in its Naval & Power segment. Improving air traffic and rising production needs are also boosting demand for Curtiss-Wright’s components in the commercial aerospace market. With steady cash generation, a solid balance sheet and ongoing shareholder returns, the company remains well-positioned across its key end markets.
CW Stock’s Price Performance
Shares of CW have gained 67.9% in the past year compared with the industry’s 22.8% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the same industry are Heico HEI, Woodward WWD and Teledyne Technologies TDY. HEI currently sports a Zacks Rank #1 (Strong Buy). WWD and TDY carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Heico delivered an average earnings surprise of 13.82% in the last four quarters. The consensus estimate for HEI’s fiscal 2026 earnings stands at $5.78 per share, which suggests year-over-year growth of 18%.
Woodward delivered an average earnings surprise of 16.97% in the last four quarters. The Zacks Consensus Estimate for WWD’s fiscal 2026 earnings is pinned at $9.34 per share, which indicates year-over-year growth of 35.6%.
Teledyne Technologies delivered an average earnings surprise of 4.69% in the last four quarters. The consensus estimate for TDY’s 2026 earnings is pegged at $24.01 per share, which implies year-over-year growth of 9.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why You Should Add CW Stock to Your Portfolio Right Now

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Mid-Cap ETF (Symbol: IJH) where we have detected an approximate $381.1 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 1,597,900,000 to 1,603,000,000). Among the largest underlying components of IJH, in trading today Twilio Inc (Symbol: TWLO) is up about 1.3%, TechnipFMC plc (Symbol: FTI) is up about 1.9%, and Curtiss-Wright Corp. (Symbol: CW) is higher by about 0.2%. For a complete list of holdings, visit the IJH Holdings page » The chart below shows the one year price performance of IJH, versus its 200 day moving average:
Looking at the chart above, IJH's low point in its 52 week range is $59.84 per share, with $75.645 as the 52 week high point — that compares with a last trade of $75.22. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further IJH Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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