GrowthTurtle
Data Science PhD & IEEE Fellow, Ex-Two Sigma
BWX Technologies looks expensive against its earnings. Fair value runs $81.12-$103.24, and the valuation leans on forecasts, with forward earnings 35% above trailing; the price sits 37% above the top of that range. Forward P/E is 27x and PEG 1.67. This is a levels-only read off reported earnings and revenue estimates, with no fundamental work. x.com
BWX Technologies combines established naval nuclear demand with growth from commercial nuclear and microreactors, making it one of the most obvious buys today. Nuclear components and fuel for US submarines and aircraft carriers carry the business, with real contracts, profits, growing revenue and little reliance on speculative announcements. Guidance is up and backlog has grown, which looks better at a lower price. The premium valuation is worth paying as the next wave of nuclear demand builds. … Show more
BWX Technologies is a company of the future, with bets on a positive future such as Kinectrics building a tritium loop facility in the UK for fusion reactors. The stock is expensive, but the chart shows a bullish ascending triangle, and a break above $220 is the signal to watch; a deep break of the lower trendline would be unwelcome. Look beyond the thin veil of negativity. x.com
