#4 - BWX Technologies (NYSE:BWXT)
Until now, we’ve been looking at large-cap defense stocks. For the rest of this presentation, we’re going to look at one mid-cap and three small-cap options that investors may want to consider. The first is BWX Technologies, Inc. (NYSE: BWXT).
This mid-cap stock is a play on the uranium boom as much as it is a play on defense. That’s because it produces, among other things, nuclear fuels, nuclear propulsion equipment, and materials for nuclear medicine. One of the current revenue drivers for the company is the small nuclear reactors and fuel it sells to the U.S. Navy. This area of the U.S. defense infrastructure is becoming a high priority because a nuclear-powered fleet can sail for longer without refueling.
And the company also stands to benefit from the Inflation Reduction Act, which provides incentives to companies that provide clean energy generation sources, which includes nuclear power.
BWXT stock is trading at around 16x earnings and looks undervalued compared to the sector average of around 28x earnings.
About BWX Technologies
BWX Technologies, Inc, together with its subsidiaries, manufactures and sells nuclear components in the United States, Canada, and internationally. It operates through two segments, Government Operations and Commercial Operations. The Government Operations segment designs and manufactures naval nuclear components, reactors, and nuclear fuel; fabrication activities; and supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers.
Read More - Current Price
- $89.45
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 5 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $92.43 (3.3% Upside)
