• Woodward (WWD) shows strong technical momentum.
• WWD stock is trading above all its daily moving averages and recently hit multiple new highs.
• Barchart’s Opinion assigns a 100% technical buy signal to Woodward.
• Plus, shares have gained 26% over the past month.  

Today’s Featured Stock:

Valued at $12.68 billion, Woodward (WWD) is an independent designer, manufacturer and service provider of energy control and optimization solutions. It provides a wide array of products for fuel, combustion, fluid, actuation, and electronic applications. These products serve the commercial aerospace, business jet, military, and energy markets. It also engages in aftermarket repairs, replacements and other service support operations.

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. WWD checks those boxes. Since the Trend Seeker signaled a buy on May 5, the stock has gained 11.92%.

On the chart, you can note that the stock is trading above all of its daily moving averages and has rising prices on steady volume.

WWD Price vs. Daily Moving Averages:

Barchart Technical Indicators for Woodward:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each 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. These technical indicators form the Barchart Opinion on a particular stock.

When a stock is trading above all of its daily moving averages and closed within 1.73% of its 52-week high, it won’t take much to hit another new high.

• Woodward has a 100% technical “Buy” signal.
• The stock closed at $213.20 on May 20, above its 50-day moving average of $184.01.
• WWD has a Weighted Alpha of +25.38.
• The stock has gained 17.5% over the past year.
• Trend Seeker “Buy” signal intact.
• WWD is trading above its 20, 50 and 100-day moving averages.
• The stock has made 20 new highs and is up 26% in the last month.
• The 14-day Relative Strength Index is at 77.12%.
• The technical support level is at $208.74.

Follow the Fundamentals:

• $12.68 billion market cap.
• Forward price-earnings ratio of 34.36x.
• Dividend yield of 0.53%.
• Revenue is projected to grow 3.77% this year and another 8.23% next year.
• Earnings are estimated to increase 2.84% this year and an additional 18.47% next year.

Analyst and Investor Sentiment on Woodward:

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.

It looks like not only Wall Street analysts, but also many of the popular investing advisory services, are moderately bullish on this stock.

• Wall Street analysts tracked by Barchart issued five “Strong Buy” and six “Hold” opinions on the stock with a price target of $205.50.
• Value Line gives the stock an above average rating.
• CFRA’s MarketScope gives the stock a “Hold.”
• MorningStar thinks the stock is 7% overvalued.
• Of the 1,379 individual investors following the stock on Motley Fool, 1,309 think the stock will beat the market, while 70 think it won’t.
• 4,670 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line:

Woodward currently has momentum and support from both the market and individual investors. Plus, its fundamentals are solid with projected revenue and earnings growth for the next two years. 

However, due to volatility, speculation, and a slightly elevated price-earnings ratio, I recommend disciplined risk management and regular stop loss reviews.

Additional disclosure: The Barchart 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 on a weekly basis.