Astronics (ATRO) Moves 16.2% Higher: Will This Strength Last?

Astronics Corporation (ATRO) shares rallied 16.2% in the last trading session to close at $36.11. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 13.2% loss over the past four weeks.

The latest uptick in ATRO’s share price can be attributed to a recent upgrade made in this stock’s rating. Notably, Truist Securities upgraded Astronics from Hold to Buy and raised its price target to $49.00 from $32.00. 

This company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +725%. Revenues are expected to be $207.09 million, up 4.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Astronics, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ATRO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Astronics is a member of the Zacks Aerospace - Defense Equipment industry. One other stock in the same industry, TAT Technologies Ltd. (TATT), finished the last trading session 1.3% lower at $29.82. TATT has returned 16.4% over the past month.

TAT Technologies' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.29. Compared to the company's year-ago EPS, this represents a change of +16%. TAT Technologies currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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