Astronics Corporation ATRO, with rising earnings estimates, low debt, high liquidity and a rising backlog, offers a great investment opportunity in the Zacks Aerospace Defense Equipment industry.
Let’s focus on the reasons that make this Zacks Rank #1 (Strong Buy) stock an attractive investment pick at the moment.
Growth Projections & Surprise History of ATRO
The Zacks Consensus Estimate for Astronics’ 2025 earnings per share (EPS) has increased 6.4% to $1.17 in the past 60 days and indicates a 129.4% improvement from the year-ago estimated figure.
The consensus estimate for ATRO’s 2025 total revenues is pinned at $837.8 million, which indicates growth of 7.6% from the 2024 estimated figure.
It delivered an earnings surprise of 94.44% in the last reported quarter.
Astronics’ Debt Position
Currently, the company’s total debt to capital is 41.8%, better than the industry’s average of 54.02%.
ATRO’s Liquidity
Astronics’ current ratio at the end of the third quarter was 2.83. A current ratio of greater than one indicates the company’s ability to meet its future short-term liabilities without difficulties.
Rising Backlog for Astronics
Astronics had an excellent backlog of $611.9 million as of Sept. 28, 2024, up from $586.6 million at the end of 2023. Such significant backlog trends boost the company's revenue-generating possibilities for the following quarters.
ATRO Stock Price Performance
Shares of ATRO have lost 1.7% in the past month compared with the industry’s 2.5% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
Other top-ranked stocks from the same industry are Mercury Systems MRCY, Triumph Group TGI and Leonardo DRS, Inc. DRS. Triumph Group sports a Zacks Rank of 1 at present, while Mercury Systems and Leonardo carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Mercury Systems has a long-term earnings growth rate of 13.2%. The Zacks Consensus Estimate for MRCY’s fiscal 2025 sales is pinned at $848.9 million, which indicates year-over-year growth of 1.6%.
Triumph Group delivered an average earnings surprise of 100.48% in the last four quarters. The Zacks Consensus Estimate for TGI’s fiscal 2026 sales is pinned at $1.33 billion, which indicates growth of 12% from the fiscal 2025 estimated figure.
Leonardo DRS delivered an average earnings surprise of 22.27% in the last four quarters. The Zacks Consensus Estimate for DRS’ 2025 sales is pinned at $3.43 billion, which indicates year-over-year growth of 7.4%.
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Free: See Our Top Stock And 4 Runners UpTriumph Group, Inc. (TGI) : Free Stock Analysis Report
Astronics Corporation (ATRO) : Free Stock Analysis Report
Mercury Systems Inc (MRCY) : Free Stock Analysis Report
Leonardo DRS, Inc. (DRS) : Free Stock Analysis Report
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