Astronics Corporation (ATRO) Soars 8.3%: Is Further Upside Left in the Stock?

Astronics Corporation (ATRO) shares soared 8.3% in the last trading session to close at $13.66. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4% loss over the past four weeks.

The recent uptick in Astronics’ share price can be attributed to its latest upgrade reportedly made by Richard Ryan, an analyst at Colliers Securities, from Neutral to Buy with a price target of $19. Per a few reports, over the past quarter, there has been active corporate inside buying at Astronics, which in turn might have led Richard Ryan to upgrade the company’s rating, thereby leading to an upside in its share price.

This company is expected to post quarterly loss of $0.15 per share in its upcoming report, which represents a year-over-year change of +11.8%. Revenues are expected to be $116.52 million, up 9.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Astronics Corporation, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ATRO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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