A strong stock as of late has been Astronics Corporation (ATRO). Shares have been marching higher, with the stock up 4.3% over the past month. The stock hit a new 52-week high of $55.65 in the previous session. Astronics has gained 240.9% since the start of the year compared to the 29.9% move for the Zacks Aerospace sector and the 29.3% return for the Zacks Aerospace - Defense Equipment industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on November 4, 2025, Astronics reported EPS of $0.49 versus consensus estimate of $0.42 while it missed the consensus revenue estimate by 0.85%.
For the current fiscal year, Astronics is expected to post earnings of $1.82 per share on $856.89 in revenues. This represents a 66.97% change in EPS on a 7.73% change in revenues. For the next fiscal year, the company is expected to earn $2.41 per share on $980.67 in revenues. This represents a year-over-year change of 32.97% and 14.45%, respectively.
Valuation Metrics
Though Astronics has recently hit a 52-week high, what is next for Astronics? 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). 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 A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 30X current fiscal year EPS estimates, which is not in-line with the peer industry average of 37.2X. On a trailing cash flow basis, the stock currently trades at 29.2X versus its peer group's average of 29.3X. 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 consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Astronics currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
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 have a bit more room to run in the near term.
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 Elbit Systems Ltd. (ESLT). ESLT has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. Elbit Systems Ltd. beat our consensus estimate by 21.82%, and for the current fiscal year, ESLT is expected to post earnings of $14.17 per share on revenue of $7.91 billion.
Shares of Elbit Systems Ltd. have gained 8.9% over the past month, and currently trade at a forward P/E of 41.52X and a P/CF of 41.61X.
The Aerospace - Defense Equipment industry is in the top 37% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ATRO and ESLT, even beyond their own solid fundamental situation.
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Astronics Corporation (ATRO): Free Stock Analysis Report Elbit Systems Ltd. (ESLT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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