Astronics (NASDAQ: ATRO) has been on fire this year, jumping 137% year-to-date and hitting a 52-week high of $38.26. The big driver? Its Aerospace segment, which just posted record Q2 sales of $193.6 million, is up 9.4% from last year.
With demand booming for commercial and military aircraft, the company raised its full-year revenue outlook to $840M–$860M. That’s a clear sign that management believes this run has more miles in it.
The segment is also running with a 16.3% operating margin, showing strong pricing power and production efficiency.
In simple words, they’re not just selling more; they’re making more money on what they sell.
Trouble in the Test Systems Segment
Not everything is smooth sailing, though. The Test Systems business is dragging, posting a $6.6 million loss thanks to project cost overruns. But Astronics’ $191 million in liquidity means they have enough cushion to handle these bumps without slowing down their Aerospace growth.
Valuation and Technical Signals to Watch
Even with the rally, Astronics doesn’t look outrageously priced. At a 23.6x P/E, it’s still cheaper than the industry average of 37.9x. Analysts are backing it too, with a Zacks Rank #2 (Buy) and a solid VGM Score of A.
From a technical angle, the stock is trading comfortably above its 200-day moving average of $25.10, keeping the bullish momentum alive.
Resistance is sitting near $35.81, so some traders are watching for a pullback before jumping in. The short-term charts also hint at an overbought signal, meaning a little cooling off could happen soon.
Astronics looks like a strong long-term play, especially with Aerospace doing the heavy lifting and the valuation still sitting below many peers. Short-term traders might want to wait for dips, but for investors thinking long term, this stock still has room to climb, as long as the Test Systems hiccups don’t turn into something bigger.
In a market where many small caps are struggling to keep pace, Astronics is proving that staying focused on what works and keeping a healthy balance sheet can really pay off.
