A strong stock as of late has been Astronics Corporation (ATRO). Shares have been marching higher, with the stock up 35.2% over the past month. The stock hit a new 52-week high of $81.89 in the previous session. Astronics has gained 48.2% since the start of the year compared to the 10.1% gain for the Zacks Aerospace sector and the 12% return for the Zacks Aerospace - Defense Equipment industry.
What's Driving the Outperformance?
The stock has an impressive 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 November 4, 2025, Astronics reported EPS of $0.49 versus consensus estimate of $0.42.
For the current fiscal year, Astronics is expected to post earnings of $2.55 per share on $857.95 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $2.93 per share on $965 in revenues. This represents a year-over-year change of 36.36% and 12.48%, respectively.
Valuation Metrics
While Astronics has moved to its 52-week high over the past few weeks, 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 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. 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 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 31.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 35.9X. On a trailing cash flow basis, the stock currently trades at 43.1X versus its peer group's average of 32.2X. 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 passes the test. Thus, it seems as though Astronics shares could have potential in the weeks and months to come.
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 AAR Corp. (AIR). AIR has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. AAR Corp. beat our consensus estimate by 15.69%, and for the current fiscal year, AIR is expected to post earnings of $4.85 per share on revenue of $3.2 billion.
Shares of AAR Corp. have gained 22.8% over the past month, and currently trade at a forward P/E of 22.66X and a P/CF of 20.1X.
The Aerospace - Defense Equipment industry is in the top 25% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ATRO and AIR, even beyond their own solid fundamental situation.
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Astronics Corporation (ATRO): Free Stock Analysis Report AAR Corp. (AIR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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