Woodward (WWD) Soars 4.3%: Is Further Upside Left in the Stock?

Woodward WWD shares ended the last trading session 4.3% higher at $305.97. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 13.4% gain over the past four weeks.

Woodward shares climbed 4.3%, driven by a combination of positive factors rather than any single catalyst. Investors appear to be responding to the company’s strong underlying momentum across its aerospace and core industrial (power generation, oil & gas and marine transportation) units. The company’s aerospace segment is benefiting from strength across commercial services and defense OEM.

Also, Woodward’s Industrial business segment has been gaining from solid demand for power generation and continued requirement for primary and backup power for data centers. Demand for gas turbine systems, data center backup power, and midstream and downstream gas investments is driving higher volumes, while Woodward’s expanding industrial services portfolio is improving mix and margins. The company’s focus on automation, supply-chain stabilization and operational efficiency is enhancing productivity and supporting margin resilience across segments.

Recently, the company also unveiled a new $1.8 billion share repurchase authorization and intends to return $650–$700 million to shareholders in fiscal 2026.

Woodward appears well-positioned for further upside, supported by a healthy growth outlook for fiscal 2026. Management expects continued sales growth across both aerospace and industrial businesses, aided by higher OEM production rates, sustained defense demand and expanding aftermarket opportunities. For fiscal 2026, the company expects consolidated net sales to rise 7% to 12%, with Aerospace projected to grow 9% to 15% and Industrial anticipated to increase 5% to 9%.

This maker of cockpit controls and other equipment for the defense and aerospace markets is expected to post quarterly earnings of $1.64 per share in its upcoming report, which represents a year-over-year change of +21.5%. Revenues are expected to be $892.46 million, up 15.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Woodward, the consensus EPS estimate for the quarter has been revised 6.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on WWD going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Woodward belongs to the Zacks Aerospace - Defense Equipment industry. Another stock from the same industry, Hexcel HXL, closed the last trading session 1.6% higher at $74.53. Over the past month, HXL has returned 4%.

For Hexcel, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.52. This represents no change from what the company reported a year ago. Hexcel currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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