$CW: Defense stocks look primed

2022年4月16日

Quarterly charts look extremely appealing in various defense names, CW is one example of a good valuation and technical setup being present in tandem, together with the right macro backdrop for long term appreciation in this stock. Price to sales is at reasonable levels vs margins here, and free cash flow yield is around 5.95%, with a 4.35% earnings yield (TTM). The stock can reach between $263.08 and $558.90 by Q2 2025, according to the Timemode trend signal present here. Long term, the invalidation for said trend sits below $123.84, but I would use a tighter stop for sizing at least, best bet is to not let yourself be stopped out and rather assign a determined % of your long term account to the sector, and rather monitor the long term invalidation and also the evolution of fundamentals on each quarterly report and main corporate event every year to determine if the long term bullish thesis remains viable.

Best of luck,

Ivan Labrie.

2022年4月19日

交易進行

Off to a good start.