A strong stock as of late has been Astronics Corporation (ATRO). Shares have been marching higher, with the stock up 14.3% over the past month. The stock hit a new 52-week high of $50 in the previous session. Astronics has gained 213.2% since the start of the year compared to the 34% move for the Zacks Aerospace sector and the 33.5% return for the Zacks Aerospace - Defense Equipment industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each 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 $1.65 per share on $858.36 in revenues. This represents a 51.38% change in EPS on a 7.91% change in revenues. For the next fiscal year, the company is expected to earn $2.27 per share on $936.03 in revenues. This represents a year-over-year change of 37.58% and 9.05%, respectively.
Valuation Metrics
While Astronics has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? 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 these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Astronics has a Value Score of D. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 30.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 36.3X. On a trailing cash flow basis, the stock currently trades at 26.8X versus its peer group's average of 27.7X. 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 supersedes any trend on the style score front. Fortunately, Astronics currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 meets the list of requirements. Thus, it seems as though Astronics shares could still be poised for more gains ahead.
How Does ATRO Stack Up to the Competition?
Shares of ATRO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is BWX Technologies, Inc. (BWXT). BWXT has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. BWX Technologies, Inc. beat our consensus estimate by 29.11%, and for the current fiscal year, BWXT is expected to post earnings of $3.74 per share on revenue of $3.12 billion.
Shares of BWX Technologies, Inc. have gained 13.5% over the past month, and currently trade at a forward P/E of 53.5X and a P/CF of 46.62X.
The Aerospace - Defense Equipment industry may rank in the bottom 59% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for ATRO and BWXT, even beyond their own solid fundamental situation.
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Astronics Corporation (ATRO): Free Stock Analysis Report BWX Technologies, Inc. (BWXT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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