3 Reasons WWD Has Explosive Upside Potential Radek Strnad Fri, October 16, 2026 at 11:39 AM EDT 3 min read WWD -0.11% ^GSPC -0.42% Trade WWD on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Over the last six months, Woodward's shares have sunk to $333.50, producing a disappointing 11% loss - a stark contrast to the S&P 500's 9.7% gain. This may have investors wondering how to approach the situation.
Given the weaker price action, is now an opportune time to buy WWD? Find out in our full research report, it's free.
Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ:WWD) designs, services, and manufactures energy control products and optimization solutions.
A company's long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Woodward's 13.7% annualized revenue growth over the last five years was exceptional. Its growth surpassed the average industrials company and shows its offerings resonate with customers.
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses — everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
Looking at the trend in its profitability, Woodward's operating margin rose by 6.7 percentage points over the last five years, as its sales growth gave it immense operating leverage. Its operating margin for the trailing 12 months was 15.8%.
We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable.
Woodward's EPS grew at 23.3% compounded annual growth rate over the last five years, higher than its 13.7% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
These are just a few reasons why we're bullish on Woodward. After the recent drawdown, the stock trades at 32× forward P/E (or $333.50 per share). Is now the time to initiate a position? See for yourself in our in-depth research report, it's free.
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