Congresswoman April McClain Delaney recently disclosed up to $1.4 million worth of new stock trades. Wall Street is paying attention because she sits on the House Science, Space, and Technology Committee.
BWX Technologies, Inc. (NYSE:BWXT) and Entegris, Inc. (NASDAQ:ENTG) are among the top buys in the politician’s portfolio that are getting limelight. Let’s look at what these companies do and whether smart money is interested in them.
BWX Technologies, Inc. (NYSE:BWXT)
BWX Technologies, Inc. (NYSE:BWXT) makes nuclear components and fuel for the U.S. Navy. The company sits in the middle of two big themes: national defense and the push toward nuclear power.
BWXT reported second-quarter revenue up about 18% year over year. Adjusted earnings per share rose from a year ago. Backlog rose 40%. The Commercial Operations segment grew sharply, and its EBITDA more than doubled.
Bull case: BWXT is a key licensed supplier of naval nuclear fuel. That work is backed by government contracts that run for decades. Commercial demand is picking up too. Data centers and clean energy goals are pushing more countries toward nuclear power, and BWXT’s new capacity comes online right as that demand builds.
Bear case: The stock trades at a forward P/E near 37 and a trailing P/E around 48. The PEG ratio is above 3 and EV/EBITDA sits near 38. If naval procurement slows or defense budgets get delayed, the stock would take a hit.
According to Insider Monkey’s proprietary database of over 900 funds, a total of 61 hedge funds in our database held BWXT at the end of the first quarter, down from 64 at the end of the fourth quarter. However, the dollar value of holdings rose about 25% quarter over quarter. So fewer funds, but bigger stakes.
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Entegris, Inc. (NASDAQ:ENTG)
Entegris, Inc. (NASDAQ:ENTG) makes specialty materials used to make computer chips. Its products cut contamination and defects on the most advanced chips. So the harder chips get to build, the more the company earns.
Entegris reported second quarter revenue up 11.5% year over year, beating expectations. Earnings per share jumped 41%. Gross margin hit 47.6%, its best level since early 2022, helped by a better product mix. Management pointed to better fab utilization and stronger AI chip demand, and raised its outlook for the current quarter.
Bull case: Entegris benefits when chipmaking moves to advanced nodes. Why? Because those nodes need more of its materials per wafer.
Growth is spread across advanced logic and memory. The AI buildout keeps wafer starts near full capacity. Sales got a boost from that rising chip demand and from the company’s grip on materials that are hard to replace.
Bear case: The stock trades at a forward P/E around 40 and a trailing P/E in the low-to-mid 80s. That’s well above its five-year median near 55. Growth depends mostly on AI infrastructure spending, and that’s a risk. Any pullback or slowdown in data center spending from big tech would hurt the fastest-growing parts of the business. Company insiders also sold shares 28 times over the past six months and bought nothing, which is a caution signal.
Hedge fund sentiment improved earlier this year. A total of 47 hedge funds in our database held ENTG at the end of the first quarter, up from 43 at the end of the fourth quarter.
While we acknowledge the risk and potential of ENTG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FLUT and that has 10,000% upside potential, check out our report about the cheapest AI stock.
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