New Lifetime High Today: Astronics (ATRO)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Astronics as such a stock due to the following factors:
- ATRO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.4 million.
- ATRO has traded 3,376 shares today.
- ATRO is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ATRO with the Ticky from Trade-Ideas. See the FREE profile for ATRO NOW at Trade-Ideas
More details on ATRO:
Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace and defense industries worldwide. It operates in two segments, Aerospace and Test Systems. ATRO has a PE ratio of 28.9. Currently there are 3 analysts that rate Astronics a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Astronics has been 171,500 shares per day over the past 30 days. Astronics has a market cap of $1.2 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.27 and a short float of 6% with 2.79 days to cover. Shares are up 26.2% year-to-date as of the close of trading on Tuesday.
Analysis:
rates Astronics as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- ATRO's very impressive revenue growth greatly exceeded the industry average of 0.4%. Since the same quarter one year prior, revenues leaped by 57.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.80, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- ASTRONICS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ASTRONICS CORP increased its bottom line by earning $2.66 versus $1.48 in the prior year. This year, the market expects an improvement in earnings ($3.20 versus $2.66).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 188.6% when compared to the same quarter one year prior, rising from $6.39 million to $18.44 million.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full Astronics Ratings Report.
null