A strong stock as of late has been Woodward (WWD). Shares have been marching higher, with the stock up 13.9% over the past month. The stock hit a new 52-week high of $384.66 in the previous session. Woodward has gained 22.8% since the start of the year compared to the 10.1% move for the Zacks Aerospace sector and the 12% return for the Zacks Aerospace - Defense Equipment industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on February 2, 2026, Woodward reported EPS of $2.17 versus consensus estimate of $1.65.
Valuation Metrics
While Woodward has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Woodward has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 47.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 35.9X. On a trailing cash flow basis, the stock currently trades at 41.5X versus its peer group's average of 32.2X. Additionally, the stock has a PEG ratio of 3.1. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Woodward currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Woodward meets the list of requirements. Thus, it seems as though Woodward shares could still be poised for more gains ahead.
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Woodward, Inc. (WWD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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