Woodward, Inc.’s (NASDAQ:WWD) 26% Share Price Surge Not Quite Adding Up
Woodward, Inc. (NASDAQ:WWD) shareholders would be excited to see that the share price has had a great month, posting a 26% gain and recovering from prior weakness. Taking a wider view, although not as strong as the last month, the full year gain of 17% is also fairly reasonable.
After such a large jump in price, Woodward may be sending very bearish signals at the moment with a price-to-earnings (or “P/E”) ratio of 33.3x, since almost half of all companies in the United States have P/E ratios under 18x and even P/E’s lower than 10x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
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