WWD - Woodward: An Upgrade Is Warranted After A Costly Misjudgment
2024-04-11 17:53:01 ET
Summary
- Woodward, a designer and producer of control solutions, has seen significant gains in its stock price, outperforming the S&P 500.
- Despite the high trading multiples, Woodward's stock is actually cheaper now on a forward basis compared to earlier, and the company is forecasted to continue growing.
- The company has achieved strong operational performance, with revenue and profitability increasing, and management has raised its growth expectations for this year.
One of the downsides to value investing is that it can be difficult to give bullish ratings to companies that are growing rather rapidly because of the price at which shares are trading. Ingrained in our minds is the idea of purchasing firms on the cheap. So high trading multiples can sometimes get in the way of that. An example of this that I could point to involves a company called Woodward ( WWD ). For those not aware of the enterprise, it operates as a designer and producer of control solutions for both the aerospace and industrial markets. The company has a wide array of products. But examples of some of its work include the construction of innovative fluid energy, combustion control, electrical energy, and motion control systems that aid with the efficient operation of equipment....
Woodward: An Upgrade Is Warranted After A Costly Misjudgment