Astronics and IAC have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – June 20, 2025 – Zacks Equity Research shares Astronics ATRO as the Bull of the Day and IAC Inc. IAC as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Oklo Inc. OKLO and NuScale Power Corp. SMR.

Here is a synopsis of all four stocks:

Bull of the Day:

Many aerospace and defense-related stocks have continued to etch out new highs amid ongoing global conflicts, including the Russia-Ukraine war and the Iran-Israel war.

While these conflicts are heartbreaking and unfortunate, the necessary need for increased aerospace and defense spending lands Astronics stock as the Zacks Bull of the Day for the second time in just over two months.

As a manufacturer of specialized lighting and electronics for jets and other airplanes, including military aircraft, Astronics most recently held the Bull of the Day on April 9th, and has seen its stock skyrocket over +50% since then, as shown in the price performance chart below. Notably, ATRO is now sitting on gains of over +100% in 2025.

Innovative Products & Record-Breaking Backlog

Astronics' defense aircraft products are being increasingly integrated into both manned and unmanned aerial systems (UAS), including drones used for surveillance and specialized missions.
Seeing a record backlog worth $673 million at the end of Q1, some of Astronics' noteworthy and renowned clients include Lockheed Martin and RTX Corp., along with the U.S. military branches.

Outside of its aerospace defense offerings, Astronics has also released innovative products for commercial aviation, including the SkyShow Server 4K in-flight entertainment system, and the award-winning EmPower UltraLite G2 power system, a next-generation in-seat power system that is expected to be a game changer for airline passengers.

Astronics' Attractive Valuation

Echoing Astronics' Zacks Rank #1 (Strong Buy) rating is that despite posting unprecedented gains this year, ATRO still trades at a far more reasonable valuation than most aerospace defense stocks, which investors have been willing to pay a noticeable premium for.
Trading near its 52-week high of $35 a share, ATRO still trades at a reasonable 22.9X forward earnings multiple. This is slightly beneath the benchmark S&P 500's average and offers a steep discount to its Zacks Aerospace-Defense Equipment Industry average of 51.7X, which includes other top-performing stocks this year, such as Elbit Systems and Bae Systems.

Plus, ATRO trades under the optimum level of less than 2X forward sales compared to its industry average of 9.8X and the S&P 500's 5.2X.

ATRO EPS Revisions

Most important to triggering Atronics' strong buy rating is that fiscal 2025 EPS estimates have spiked over 30% in the last 60 days to $1.50 from $1.13. Plus, FY26 EPS estimates are up nearly 6% in the last two months, with Astronics expected to post high double-digit bottom-line growth for the foreseeable future.

Conclusion & Final Thoughts

Astronics is one of the most intriguing companies to invest in when considering aerospace and defense stocks that have shown promising growth but could still have more upside.

Optimistically, the affordable stock price and reasonable valuation of ATRO also makes it a prime buy-the-dip target compared to its peers, with it noteworthy that institutional ownership of Astronics shares has ballooned to over 70%, signaling credibility and long-term confidence.

Bear of the Day:

Although IAC Inc. has played a major role in acquiring, developing, and scaling several successful businesses, its stock has been on a continued downturn in recent years.

Unfortunately, despite being viable businesses, many of IAC's spinoffs have had very lackluster stock performances as well, as the multi-sector conglomerate has failed to capitalize on its goal to unlock shareholder value following their independence.

Profitability Concerns & Declining EPS Revisions

Cutting to the chase and pinpointing investors' concerns, IAC is still expected to post an adjusted loss of -$2.23 a share in fiscal 2025. While IAC's portfolio has seen strength from its digital printing businesses, such as Dotdash Meridith and the Daily Boost, its medical subsidiary, Care.com, has faced both product and marketing challenges that have affected the bottom line.

Diluting optimism, IAC is projected to post EPS of $1.33 next year, but estimates have dropped over 30% in the last 60 days from projections of $1.96. This comes as FY25 EPS estimates have fallen from a much narrower than expected adjusted loss of -$1.04 two months ago.

IAC Struggles to Unlock Shareholder Value

Having a long-standing plan to incubate promising digital businesses, scale them, and then launch them independently to unlock shareholder value, it's noteworthy that this strategy hasn't worked out for IAC of late.

To that point, IAC stock and its recent spinoffs, Match Group, Vimeo and ANGI inc. have all fallen 40% or more in the last three years.

More perplexing is that IAC's top-line growth was not that overwhelming before establishing its more successful subsidiaries as stand-alone companies, seeing a peak of $5.2 billion in annual sales over the last five years.

This begs the question of whether IAC really capitalized on its efforts and will be able to efficiently capitalize on lower operating costs going forward, as annual sales are expected to drop another 35% this year to $2.48 billion.

Bottom Line

Quite frankly, it's still hard to see how IAC stock could be positioned for a rebound, even with strong assets like Dotdash Meridith and a healthy balance sheet. This may buy the company time and hopefully strengthen its long-term prospects at some point, but for now, more short-term risk is likely ahead for IAC shares.

Additional content:

Which Nuclear Energy Stock - Oklo or NuScale - Offers Better Gains?

Shares of Oklo Inc. and NuScale Power Corp. skyrocketed 195.7% and 118.9% this year due to political support for nuclear energy. What factors are driving this momentum, and which stock offers more potential gains? Let's explore –

Reasons to Be Bullish on Oklo

Oklo, a nuclear energy start-up, announced recently that it received a notice of intent to award (NOITA) for an Alaska project. Oklo was chosen by the Department of Defense (DoD) to provide nuclear reactor technology for Eielson Air Force Base in Alaska.

Oklo's CEO, Jacob DeWitte, said that the contract with the branch of the U.S. military "reflects continued confidence in Oklo's ability to deliver clean and secure energy solutions for mission-critical infrastructure."

Oklo will create a nuclear facility for power and heat supply to the base, operating independently from the electrical grid, which is ideal for remote areas. This marks a significant milestone for Oklo as it secures an early client from the military, boosting confidence in its unique nuclear technology.

Lest we forget that President Donald Trump's executive order to accelerate new nuclear power reactor deployment in the United States and reform the Nuclear Regulatory Commission (NRC) has been a boon for Oklo. This is because the Eielson-Oklo deal, announced in August 2023, was canceled a month later due to regulatory complications.

Reasons to Be Bullish on NuScale Power

NuScale Power, known for providing innovative advanced small modular reactor (SMR) technology, also received support from Trump's executive order to increase nuclear energy production in the United States by easing regulations and expediting power plant licenses.

The Trump administration has prioritized SMRs for their cost-effectiveness, flexibility, and quick construction. Such a special focus has benefited NuScale Power as its NuScale Power Module is the only SMR to get design approval from NRC.

The NRC's approval of NuScale SMR technology boosts ENTRA1 Energy's ability to deliver energy swiftly through ENTRA1 Energy Plants, using NuScale SMR technology. ENTRA1 Energy is NuScale's development platform for independent power plants.

It's worth mentioning that NuScale Power's first-quarter exceeded expectations, positioning the company for strong future performance amid recent positive developments.

OKLO vs. SMR: Which Nuclear Energy Stock Has Higher Potential Gains?

DoD's interest in Oklo benefits its shares, while NuScale Power stands to gain from being the sole NRC-approved SMR technology company. Having said that, Oklo plans to introduce its first SMR by late 2027 or early 2028, with both companies set to profit from increasing demand for SMRs due to the need for clean energy solutions.

Oklo and NuScale Power also stand to benefit from Trump's executive orders supporting the industry and fueling the AI revolution, with both stocks displaying bullish chart patterns. Shares of Oklo and NuScale Power are trading above both the short-term 50-day moving average (DMA) and long-term 200 DMA, indicating a positive trend.

Therefore, it's challenging to determine which stock might offer better gains. NuScale Power, older than Oklo, has shown consistent returns with limited risk. Whereas Oklo, through its recent share issues for fundraising, aims for business growth and expansion, leading to a higher expected earnings growth this quarter at 97.7% compared to NuScale Power at 64.5%.

Each of the stocks has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.

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