Momentum Stock Watch: BWX Technologies, Inc. (BWXT)

Company Profile:

BWX Technologies, Inc. manufactures and sells nuclear components in the United States, Canada, and internationally. BWXT provides safe and effective nuclear solutions for national security, clean energy, environmental remediation, nuclear medicine and space exploration. With approximately 6,600 employees, BWXT has 12 major operating sites in the U.S. and Canada. In addition, BWXT joint ventures provide management and operations at more than a dozen U.S. Department of Energy and NASA facilities. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. The company was founded in 1867 and is headquartered in Lynchburg, Virginia.

Recent News:

On March 11, 2020, The company announced that its BWXT Nuclear Operations Group, Inc. (NOG) subsidiary has been awarded a contract from the Department of Energy’s Oak Ridge National Laboratory (ORNL) to manufacture TRISO nuclear fuel to support the continued development of the Transformational Challenge Reactor (TCR).

The company posted revenues of $501.24 million for the quarter ended December 2019. This compares to year-ago revenues of $478 million. It came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.64 per share. This compares to earnings of $0.74 per share a year ago.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

BWXT’s strengths can be seen in its strong growth and better efficiency compared with its peers. Its revenue and income have increased over recently several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, the MACD is trying to cross back up and the RSI stands at 37.61 with positive bias. We rate BWX Technologies, Inc. (BWXT) a STRONG BUY.