Woodward Stock Is One Worth Watching As Aerospace Remains A Hot Group

At a time when the major indexes and many stocks are below key moving averages, aerospace stock Woodward (WWD) is holding well above its 50-day line and is Investor’s Business Daily’s Big Cap 20 name to watch this week. Shares are forming a new potential buy point as well.

Woodward is a leader in designing and manufacturing energy conservation and control systems for the aerospace and industrial markets. The company produces critical components for aircraft engines, industrial turbines and more.

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Woodward: Multiple Quarters Of Accelerating Growth

Based in Colorado, Woodward beat expectations for its first-quarter top and bottom lines on Feb. 2, impressing investors. Shares gapped up more than 13% following the report and have held the gap over the past month.

Earnings jumped 61% to $2.17 per share year over year. Sales climbed 29% to $996 million. Analysts polled by FactSet had projected $1.65 per share and $890.1 million in revenue.

In the aerospace segment, Woodward’s revenue grew 29% to $635 million, and earnings increased 57% to $148 million, fueled by industrywide growth. Sales for the industrial segment jumped 30% to $362 million, with earnings soaring 67%.

Most importantly, Woodward is seeing multiple quarters of year-over-year accelerating growth. Earnings growth has ranged between 4% and 61% over the past four quarters. Meanwhile, sales growth ran from 6% to 8%, 17% and 29% over the same period. This kind of growth underscores top-tier fundamentals from an investor’s perspective.

For 2026, earnings are expected to rise 27%, followed by an increase of 16% in 2027, according to Investor’s Business Daily’s MarketSurge.

Woodward Stock Sets Up Base Amid Market Volatility

Despite its nearly 4% drop on Friday, Woodward stock is holding up after a 13% jump on Feb. 3 following earnings. Shares have traded tightly and are setting up a new base. The potential buy point to watch  currently sits at 403.31, according to IBD MarketSurge chart analysis.

This recent tight consolidation is occurring after a powerful 48% run from the prior cup-with-handle base breakout. That stage-two base was formed over the course of 11 weeks from August 2025 through October 2025.

Investors should be aware of Friday’s action, which undercut the 21-day exponential moving average. This could signal weakness if the stock is unable to regain that line.

Its relative strength line has drifted sideways after a long run higher, showing the stock has been performing alongside the overall market. A top-shelf 99 IBD Composite Rating means this stock is one to watch. The stock also has a solid 98 Earnings Per Share Rating.

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