While Woodward stands out as a key supplier in aerospace with strong management and a solid balance sheet, its current valuation and exposure to industry cycles suggest investors may want to wait for a better entry point or clearer signs of lasting margin growth.
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But their prominence also brings high exposure to the ups and downs of economic cycles.
Luckily, the tide is turning in their favor as the industry’s 26.8% return over the past six months has topped the S&P 500 by 18.2 percentage points.
Woodward delivered a fourth quarter that exceeded Wall Street’s expectations, with management crediting robust demand in both its aerospace and industrial segments as primary drivers. CEO Charles P. Blankenship emphasized that “commercial services activity was robust across narrow-body, wide-body, and regional platforms,” and highlighted operational improvements that enabled the company to capitalize on strong order flow. Management also pointed to margin expansion in both segments, attributing this to a combination of pricing, higher volumes, and favorable mix, especially in commercial aerospace services and industrial power generation.
A number of stocks jumped in the afternoon session after the broader market rebounded from a tech-driven sell-off, with investors taking the opportunity to buy stocks at lower prices.
Companies that consistently increase their sales, margins, or returns on capital are usually rewarded with the best returns,
and those that can do all three for years on end are almost always the legendary stocks that return 100 times your money.
Shares of aerospace and defense company Woodward (NASDAQ:WWD) jumped 16.5% in the morning session after it reported fourth-quarter 2025 results that significantly surpassed expectations.
Aerospace and defense company Woodward (NASDAQ:WWD) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 29% year on year to $996.5 million. Its GAAP profit of $2.17 per share was 29.5% above analysts’ consensus estimates.
Aerospace and defense company Woodward (NASDAQ:WWD) reported revenue ahead of Wall Streets expectations in Q4 CY2025, with sales up 29% year on year to $996.5 million. Its GAAP profit of $2.17 per share was 29.4% above analysts’ consensus estimates.
Since January 2021, the S&P 500 has delivered a total return of 77%. But one standout stock has more than doubled the market - over the past five years, Woodward has surged 176% to $337.34 per share. Its momentum hasn’t stopped as it’s also gained 34.2% in the last six months thanks to its solid quarterly results, beating the S&P by 26.5%.
Each stock in this article is trading near its 52-week high.
These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Shares of aerospace and defense company Woodward (NASDAQ:WWD) jumped 3% in the afternoon session after Deutsche Bank raised its price target on the stock to $400 from $360 while maintaining a 'Buy' rating.
Woodward Inc. exemplifies quality investing with high returns on capital, strong cash flow, and a solid balance sheet, making it a durable buy-and-hold candidate.
The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital,
and those that can maintain this trifecta year in and year out often become the legends of the investing world.
Woodward’s third quarter results were well received by the market, with management highlighting strong execution across both its aerospace and industrial businesses. The quarter benefited from robust demand in commercial aerospace services and defense original equipment manufacturing, as well as successful price realization and operational improvements. CEO Charles Blankenship credited the company’s ability to capture higher-than-expected commercial services demand and double-digit growth in oil and gas and power generation in the industrial segment. Management also pointed to the positive impact of increased automation and improved supply chain performance on margins and productivity.
