Why These Defense Stocks Are Gaining This Week

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1. Astronics Corporation (NASDAQ:ATRO)

Weekly Gains: 22.19%

Astronics Corporation (NASDAQ:ATRO) provides advanced technologies to global aerospace, defense, and electronics clients. Some of its offerings include lighting and safety systems, aircraft electronics integration, automated test systems, and distribution and motion systems, among other products and services.

The stock has soared in the past week after Astronics Corporation (NASDAQ:ATRO) announced results for the fourth quarter of fiscal 2024. The company reported sales of $208.5 million for the quarter, growing 6.8% from last year. Adjusted operating income stood at 11.4%, expanding 550 basis points year-over-year.

Adjusted EBITDA was $31.5 million or 15.1% of sales. The positive margins resulted in cash from operations of $26.4 million. Chairman, President and CEO, Peter Gundermann, stated this was the ‘first seriously positive cash quarter since before the pandemic’.

Following the results, Truist Securities raised Astronics Corporation (NASDAQ:ATRO)’s price target from $17 per share to $23, while maintaining the hold rating.

Overall, Astronics Corporation (NASDAQ:ATRO) ranks first among the defense stocks that are gaining this week. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ATRO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires 

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