Astronics (ATRO) Moves 11.3% Higher: Will This Strength Last?

Astronics Corporation (ATRO) shares soared 11.3% in the last trading session to close at $64.81. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.8% gain over the past four weeks.

Recently, U.S. President Donald Trump proposed increasing military spending to $1.5 trillion for 2027, compared with the $901 billion defense budget approved for 2026, subject to congressional authorization. The proposal strengthened expectations of sustained defense spending, improving long-term funding visibility for aerospace and defense suppliers and supporting positive investor sentiment across the sector.

On Jan. 8, Astronics Corporation released its preliminary results for 2025, highlighting strong operating momentum. Preliminary fourth-quarter revenue exceeded company guidance, while full-year revenue reflected solid year-over-year growth. Strong order activity further supported visibility, helping reinforce investor confidence in the stock.

This company is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of +14.6%. Revenues are expected to be $234.83 million, up 12.6% 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 part of the Zacks Aerospace - Defense Equipment industry. Woodward (WWD), another stock in the same industry, closed the last trading session 1% lower at $319.23. WWD has returned 11.2% in the past month.

Woodward's consensus EPS estimate for the upcoming report has changed +2.6% over the past month to $1.64. Compared to the company's year-ago EPS, this represents a change of +21.5%. Woodward currently boasts a Zacks Rank of #2 (Buy).

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

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