Bull of the Day: Astronics (ATRO)

Astronics (ATRO) is a Zacks Rank #1 (Strong Buy) that has a D for Value and an A for Growth. This company makes lighting and electronics for cockpits, cabins and exteriors of military, commercial and private aircraft.  The company recently reported a beat of the Zacks Consensus Estimate and looks to be heading back to recent highs. Let’s learn more about why this stock is the Bull of the Day.Description                                               Astronics Corp. engages in the provision of electrical power generation and distribution systems. It includes motion systems, lighting and safety systems, avionics products, aircraft structures, systems certification, and automated test systems. It operates through the Aerospace and Test Systems segments. The Aerospace segment designs and manufactures products for the global aerospace industry. The Test Systems segment designs, develops, manufactures and maintains communications and weapons test systems and training and simulation devices for military applications. The firm's products and solutions include Aircraft Data Systems, Aircraft Electrical Power Systems, Airfield Lighting, Custom Design & Manufacturing, Emergency Systems, Enhanced Vision Systems, IFC Antennas and Radome Systems, Inflight Entertainment System Hardware, Interiors & Structures, Lighting Systems, Seat Actuation Systems, Simulation & Training, Systems Certification, Test & Measurement and VIP IFEC & CMS Systems. The company was founded on December 5th, 1968 and is headquartered in East Aurora, NY.Earnings History                                                          When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.Astronics (ATRO) has topped the Zacks Consensus Estimate in each of the last four quarters. The company most recently posted EPS of $0.49 per shar when the Zacks Consensus Estimate was calling for $0.42.  That 7 cent beat translates into a 16.6% positive earnings surprise.Over the last four quarters the average positive surprise works out to be 59%.Earnings Estimates RevisionsEarnings estimate revisions is what the Zacks Rank is all about. Estimates are moving higher for Astronics (ATRO).The full year 2025 has increased from $1.60 to $1.78 over the last 60 days.2026 has increased from $2.12 to $2.43 over the same time period.GrowthThere is good growth projected for Astronics (ATRO).  This fiscal year analysts are expecting $857M in revenue which would be good for 7.7% topline growth.Next fiscal year, the consensus is calling for $980M and that would be good for 14.4% sales growth.ValuationThe valuation for Astronics (ATRO) is interesting given the growth prospects. I see a price to book multiple of 16x is pretty high given that this is not an asset slim business model.  The forward PE if 27x is a little high, but the growth the company is expected to show makes up for that high multiple.  Price to sales comes in at 2x, likely due to prior low levels of topline growth, but we know that is about to change.Operating margins have increased from 5.8% to 7.2% to 8% over the last three quarters. Good revenue growth couples with margins expansion leads to higher earnings.  When we see good earnings growth the chances for higher multiples gets bigger and bigger.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant 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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks