The chart of the day belongs to the aerospace company Woodward (WWD), states Jim Van Meerten of BarChart.com.
I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum, and a Trend Seeker buy signal. I then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 11/3 the stock gained 5.42%.
WWD Price vs Daily Moving Averages
Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. The company operates in two segments, Aerospace and Industrial. The Aerospace segment provides fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, and flight deck controls, actuators, servo controls, motors, and sensors for aircraft. These products are used on commercial and private aircraft and rotorcraft, as well as on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems. It also provides aftermarket maintenance, repair and overhaul, and other services to commercial airlines, repair facilities, military depots, third-party repair shops, and other end users. This segment sells its products to original equipment manufacturers (OEMs), tier-one suppliers, and contractors, as well as through aftermarket sales of components, such as provisioning spares and replacements. The Industrial segment offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, speed controls, electronics and software, and sensors. These products are used on industrial gas turbines, steam turbines, compressors, and reciprocating engines. This segment sells its aftermarket products, and other related services to OEMs through an independent network of distributors, as well as directly to end users. The company was founded in 1870 and is headquartered in Fort Collins, Colorado.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 50.70+ Weighted Alpha
- 42.29% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50, and 100-day moving averages
- Eight new highs and up 5.42% in the last month
- Relative Strength Index 67.48%
- Technical support level at $134.20
- Recently traded at $138.56 with a 50-day moving average of $128.38
Fundamental Factors:
- Market Cap $8.13 billion
- P/E 32.26
- Dividend yield .65%
- Revenue is expected to grow 9.80% this year and another 6.10% next year
- Earnings are estimated to increase 33.60% this year, an additional 16.20% next year, and continue to compound at an annual rate of 21.70% for the next five years
Analysts and Investor Sentiment: I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analysts gave four strong buy, five hold, and one sell opinions on the stock
- Analysts' price targets are between $105 and $160—a wide range
- The individual investors following the stock on Motley Fool voted 505 to 12 for the stock to beat the market with the most experienced investors voting 78 to three for the same result
- Value Line gives it the highest rating of one and notes a three to five-year price target of $135-$205—another wide range
- CFRAs MarketScope rates it a hold
- 3,420 investors monitor the stock on Seeking Alpha
Additional Disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least every week.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
