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Astronics (ATRO) Flat As Market Gains: What You Should Know

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In the latest trading session, Astronics (ATRO - Free Report) closed at $32.81, marking no change from the previous day. This move lagged the S&P 500's daily gain of 0.66%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.46%.

Coming into today, shares of the maker of lighting and electrical products for commercial and military planes had gained 3.34% in the past month. In that same time, the Aerospace sector lost 1.83%, while the S&P 500 gained 3.97%.

Investors will be hoping for strength from ATRO as it approaches its next earnings release, which is expected to be May 7, 2019. On that day, ATRO is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 254.55%. Meanwhile, our latest consensus estimate is calling for revenue of $189.53 million, up 5.85% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.71 per share and revenue of $783.77 million, which would represent changes of +21.28% and -2.43%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ATRO. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ATRO is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that ATRO has a Forward P/E ratio of 19.19 right now. For comparison, its industry has an average Forward P/E of 18.25, which means ATRO is trading at a premium to the group.

It is also worth noting that ATRO currently has a PEG ratio of 1.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Aerospace - Defense Equipment stocks are, on average, holding a PEG ratio of 2.03 based on yesterday's closing prices.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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