News        Sectors        Watchlists

Woodward, Inc. (WWD)

Woodward stock forecast: buy or sell

Close on Sep 25th, 2020
$76.03 0.01%
3 months performance
-0.01%
Published: September 27th, 2020 - 02:12

Woodward stock outlook

  • Woodward stock merely changed 0.72% to close at $76.03 on the stock market on Friday.
  • The price is currently below the lower Bollinger band, which usually indicates a short-term bounce that you should not try to trade
  • Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. The company operates in two segments, Aerospace and Industrial.

Important:
The thoughts published in this post are personal and not recommendations for you to buy or sell shares. The author of this text does not have an understanding of the individual conditions of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are expressed for education purposes only

Woodward stock charts

Should I buy Woodward stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is WWD stock a buy?

Currently, Woodward stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean WWD will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Woodward stock?

"To sell or not to sell", if you are holding Woodward stock?. Trading strategies give us the ability us to avoid impulsive decisions based on our feelings or the buzz that surrounds the market. We like very simple strategies to guide us on when is the best moment to sell our shares. Be aware that these strategies should not be used for shorting Woodward stock

As a golden rule, you should not keep an open trade that results in higher than expected losses upon purchase. The timing to sell shares always has to be determined by the stop-loss (automatic or manual)

Is it time to sell Woodward stock?

In the current situation of Woodward there is not any eligible sell setup, so Woodward stock holders with operations in profit can keep their positions

Price lost SMA50 level

Since Woodward moved up above the 50-day simple moving average in early August price rose a 6.07%. On Monday, price crossed down the 50-day moving average in a sign that the previous bullish trend is likely to have ended. This is a good time to review your current setup for this position and consider if it's time to sell

Price broke down below last bottom

Analysts' recommendations to buy or sell Woodward stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 2 ratings were published for Woodward. General sentiment is bullish, with 2 out of 2 publishing positive forecasts

Woodward ratings

Brokerage firmRating
Sep 10th, 2020
Barclays Buy
Sep 18th, 2020
Credit Suisse Group NeutralBuy

Technical analysis

Since in mid-May, Woodward has been drawing an uptrend that by now marked an amazing 50.91%. The chart shows higher highs and higher troughs, and along the way gave some entry points for those who wanted to trade in. Latest low was in mid-August, when price bounced at $81.08. However, WWD could not resume the uptrend after marking a top at $90.62, and moved downward breaking down its last bottom on Monday

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show market direction. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. Further about Moving Averages from sources like Wikipedia and Investopedia

WWD SMAs chart

Supports and resistances

Traders use supports and resistances as a way to find price points in the stock price action that may work as obstacles, preventing the price of a stock to move up or down. Supports are levels where the price tends to find support as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it is likely to continue falling until meeting another support level. On the contrary, a resistance level is where the price may find a curb as it rises. In the same way, the price is more liable to "bounce off" at this level, and if it finally crosses this level, it will climb more easily until it finds the next resistance

The current resistance levels are:

  • R1: $76.47 (0.58% above)
  • R2: $76.96 (1.22% above)
  • R3: $78.15 (2.79% above)
  • The current support levels are:

  • S1: $74.40 (-2.14% below)
  • S2: $73.96 (-2.72% below)
  • S3: $73.16 (-3.77% below)
  • Bollinger bands

    This is an indicator that was developed in the 1980s by John Bollinger. In essence, the Bollinger Bands are lines that run around a centralmoving average, varying the distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    When the price moves out of the band (above the upper line or below the lower line) it tells that the stock is maintaining a very strong trend and therefore can correct the trend to the average. At this point, the price is lower the upper band, meaning a short-term rebound (at least) until it is back above the band

    WWD RSI chart

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that measures price fluctuations to reveal when the share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI moves between 0 and 100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    The RSI has been between the the levels of 30 and 70 for some weeks, and therefore, without this indicator really being helpful in making any decisions.

    WWD RSI chart

    Earnings and financials

    Woodward, Inc. (WWD) published quarterly earnings of $0.48 per share, significantly surpassing the Market consensus estimate of $0.36 per share. This Q2 report means an earnings surprise of 33.33%. On the contrary, reported sales were $523.8 million, in line with analysts' forecasts.

    This compares to earnings of $1.30 per share a year ago, so reported EPS is a drop of -63.08%. Turnover dropped a -30.34% on an annualized basis in the 2nd-quarter, from $752.0M to $523.8M last quarter.

    Woodward presents Q3 financial report next November. Wall Street predicts an EPS of $0.53, compared to previous quarter that was $0.48. Earnings reporting day has an additional risk for traders as the results provided can jump up or down the price with very low volume and not respecting your buy or stop-loss orders. It's always good to review company's website to confirm time and details on the earnings call and the earnings report.

    WWD revenues and profits chart