Here's Why You Should Add Astronics Stock to Your Portfolio Right Now

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%.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

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

To read this article on Zacks.com click here.

Zacks Investment Research