Astronics Buys Buhler Motor Aviation: Time to Invest in the Stock?

Astronics Corporation (ATRO) has recently acquired Bühler Motor Aviation, a German aircraft seat actuation specialist. The deal enhances Astronics' engineering and product portfolio with $22 million in anticipated annual revenues next year, strengthening its commitment to provide best-in-class motion control for commercial aerospace industry players.This acquisition news might encourage aerospace investors to add ATRO to their portfolios right away, amid the stable demand trend in the commercial aerospace industry, backed by a steadily growing air passenger traffic. However, a prudent investor knows that a strategic decision, such as investing in a stock, should not be based on a single event. Instead, it should be based on a detailed analysis of the company's past performance, growth prospects, and potential risks. Let’s take a closer look at ATRO’s performance on the bourses, the key drivers behind its growth, and the challenges the company may be facing.ATRO’s Stock Price PerformanceAstronics’ shares have soared a solid 107.6% over the past six months, outperforming both the Zacks Aerospace-Defense Equipment industry’s surge of 30.8% and the broader Zacks Aerospace sector’s gain of 27.2%.Image Source: Zacks Investment ResearchOther industry players like Curtiss-Wright Corp. (CW) and Leonardo DRS (DRS) have delivered a similar stellar performance in the said period. Shares of CW and DRS have surged 71.9% and 20.2%, respectively, over the past six months.What Pushed ATRO Up?The primary catalyst that has driven ATRO’s share price appreciation over the past six months is its impressive quarterly results. Notably, the company’s sales improved year over year in the first and second quarters of 2025. Its adjusted net income also delivered a robust performance compared to the year-ago quarter’s level. In particular, improved sales from the Commercial Transport market remained the major highlight for both these quarterly results. Another pertinent announcement that must have bolstered investor confidence in ATRO during the six months was the launch of the ATS-9000M Communications System Analyzer. This was Astronics’ latest Land Mobile Radio testing and analysis solution, amid the growing need for secure radio technology solutions, particularly to support critical missions. Can ATRO Stock Keep Its Winning Streak Alive?Looking ahead, as airlines expand their fleets and enhance passenger experiences in response to the rapidly growing air travel demand worldwide, there is a heightened demand for advanced cabin power systems and in-flight entertainment and connectivity (IFEC) solutions. This should bode well for Astronics, which is already capitalizing on this trend, as evident from the 13.4% year-over-year increase in its second-quarter 2025 Commercial Transport sales.Moreover, a strong financial position should enable companies like Astronics to continue innovating new technologies to meet the growing demand for advanced commercial and defense aerospace products. To this end, it is imperative to mention that as of June 2025, it had cash and cash equivalents of $13 million. While its long-term debt totaled $159 million for the second quarter of 2025, its current debt was nil. So, it is safe to conclude that ATRO boasts a solid solvency position in the near term, which, in turn, should enable it to invest in new product innovation and strengthen its organic growth. Now, let’s take a sneak peek at ATRO’s near-term estimates to check whether they also reflect similar growth prospects.ATRO’s EstimatesThe Zacks Consensus Estimate for 2025 sales implies year-over-year growth of 7%, while that for earnings indicates an improvement of 46.8%. The company’s 2026 top and bottom-line estimates also show a similar improving trend.Image Source: Zacks Investment ResearchFurther, its near-term earnings estimate reflects no movement over the past 60 days, suggesting investors’ stable confidence in this stock’s earnings generation capabilities.Image Source: Zacks Investment ResearchATRO Stock Reflects Discounted ValuationIn terms of valuation, ATRO’s forward 12-month price-to-sales (P/S) is 1.87X, a discount to the industry average of 10.05X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with its industry average.Image Source: Zacks Investment ResearchOther industry peers, on the contrary, are trading at a premium to ATRO. While DRS is trading at a forward 12-month P/S of 3.08X, CW is trading at 5.77X.Risks to Consider Before Choosing ATROAerospace and defense firms like ATRO, CW, and DRS continue to grapple with ongoing supply-chain issues, including shortages of essential raw materials, escalating input costs, and a scarcity of skilled labor. These challenges are putting additional strain on production timelines and operational efficiency.Furthermore, the recent hike in U.S. tariffs on imports from multiple trading partners is anticipated to exacerbate these difficulties. For Astronics, this could lead to delayed product shipments and pose potential headwinds to its operating performance.In addition, Astronics carries a higher level of debt compared with its peers, as shown by its elevated long-term debt-to-capital ratio. This greater reliance on borrowing raises financial risk, reduces flexibility in managing capital and may limit the company’s ability to navigate periods of economic uncertainty.Image Source: Zacks Investment ResearchShould You Invest in ATRO Stock Now?Investors interested in ATRO stock should wait for a better entry point, considering the company’s greater leverage value compared to its industry peers amid the current economic uncertainties facing the U.S. economy. However, those who already own this Zacks Rank #3 (Hold) stock may continue to do so, considering its solid sales and earnings growth prospects in the near term.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Astronics Corporation (ATRO): Free Stock Analysis Report Curtiss-Wright Corporation (CW): Free Stock Analysis Report Leonardo DRS, Inc. (DRS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks