BWX Technologies BWXT shares have returned 17% over the trailing six months, outperforming the Zacks Computer & Technology appreciation of 2.4% and the Zacks Electronics - Miscellaneous Components industry’s decline of 5.5%.

BWXT’s shares outpaced its competitors, including SPX Technologies SPXC, nVent Electric NVT and Symbotic Inc. SYM, over the same time frame.

SPX Technologies shares have returned a modest 2%, while nVent Electric and Symbotic’s shares have lost 11.5% and 30.1%, respectively.

This outperformance reflects investors’ optimism over BWXT’s prospects, driven by its consistent strong quarterly results. Over the past four quarters, the company’s results have exceeded the Zacks Consensus Estimates for both top and bottom lines.

Key contract wins, driven by targeted business development efforts, along with double-digit revenue and earnings growth on both quarterly and year-to-date basis, reflect strategic and operational strengths.

Acquisitions & Deals Strengthen BWXT’s Portfolio

In November 2024, BWXT announced the acquisition of Aerojet Ordnance Tennessee, a sole-source provider of depleted uranium and specialty metals for defense applications. This acquisition aims to expand the company's special materials portfolio and is targeted to close soon.

In December 2024, BWXT Canada, a subsidiary of BWX Technologies, and Westinghouse Electric Company signed an MOU to collaborate on AP1000 and AP300 projects. This partnership aims to expand the capability to supply carbon-free energy globally.

BWXT-    led team won a Phase 1B contract from the U.S. Department of Energy for cleanup operations at the West Valley Demonstration Project in New York. The contract is valued at $3 billion and underscores BWX Technologies' commitment to environmental remediation.

In June 2024, BWXT secured the second phase of a contract with the Wyoming Energy Authority to evaluate the deployment of small-scale nuclear reactors in Wyoming. The contract, valued at approximately $20 million, is expected to conclude by the third quarter of 2025.

BWXT Raises FY24 Guidance

For 2024, BWX Technologies anticipates $2.7 billion in revenues. The figure, which indicates an 8.02% year-over-year increase, is in line with the Zacks Consensus Estimate.

Adjusted earnings for the year are expected to be $3.20 per share. The Zacks Consensus Estimate for the metric is pegged at $3.23 per share, up 3 cents over the past 60 days. The estimate indicates a year-over-year rise of 6.95%.

The company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 9.14%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Conclusion

BWX Technologies has demonstrated solid growth, driven by acquisitions, key partnerships and strong financial results. However, rising operational and acquisition-related costs, and ongoing market volatility in the defense and nuclear sectors may weigh on its short-term performance. 

BWXT currently has a Zacks Rank #3 (Hold), which implies that it may be wise for investors to wait for a more favorable entry point to accumulate the stock.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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