Shares of Astronics Corporation (ATRO) have been strong performers lately, with the stock up 4.7% over the past month. The stock hit a new 52-week high of $38.26 in the previous session. Astronics has gained 137% since the start of the year compared to the 27.9% gain for the Zacks Aerospace sector and the 26.4% return for the Zacks Aerospace - Defense Equipment industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 6, 2025, Astronics reported EPS of $0.38 versus consensus estimate of $0.33 while it missed the consensus revenue estimate by 1.17%.
For the current fiscal year, Astronics is expected to post earnings of $1.6 per share on $850.77 in revenues. This represents a 46.79% change in EPS on a 6.96% change in revenues. For the next fiscal year, the company is expected to earn $2.12 per share on $927.8 in revenues. This represents a year-over-year change of 32.5% and 9.05%, respectively.
Valuation Metrics
Astronics may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Astronics has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 23.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 37.9X. On a trailing cash flow basis, the stock currently trades at 20.3X versus its peer group's average of 29.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Astronics currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Astronics fits the bill. Thus, it seems as though Astronics shares could have potential in the weeks and months to come.
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Astronics Corporation (ATRO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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