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Astronics (ATRO) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Astronics (ATRO - Free Report) closed at $33.50, marking a +1.12% move from the previous day. This move outpaced the S&P 500's daily gain of 0.11%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.19%.

Heading into today, shares of the maker of lighting and electrical products for commercial and military planes had gained 4.87% over the past month, lagging the Aerospace sector's gain of 5.25% and outpacing the S&P 500's gain of 4.42% in that time.

Wall Street will be looking for positivity from ATRO as it approaches its next earnings report date. This is expected to be May 8, 2019. On that day, ATRO is projected to report earnings of $0.37 per share, which would represent year-over-year growth of 236.36%. Our most recent consensus estimate is calling for quarterly revenue of $189.53 million, up 5.85% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.62 per share and revenue of $761.59 million. These totals would mark changes of +14.89% and -5.19%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for ATRO. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 5.26% lower. ATRO is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note ATRO's current valuation metrics, including its Forward P/E ratio of 20.45. This valuation marks a premium compared to its industry's average Forward P/E of 19.11.

Investors should also note that ATRO has a PEG ratio of 2.05 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense Equipment was holding an average PEG ratio of 2.08 at yesterday's closing price.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% 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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