11 Undervalued Aerospace Stocks To Buy According to Hedge Funds

8. Astronics Corporation (NASDAQ:ATRO)

Forward Price to Earnings Ratio: 20.06

Number of Hedge Fund Holders: 22

Astronics Corporation (NASDAQ:ATRO) is an American company providing 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.

On November 6, the company declared financial results for the third quarter of fiscal 2024. Sales grew 25% from last year to $203.7 million, the highest quarterly revenue since the first quarter of 2019. Adjusted EBITDA was posted at $27 million, representing 13% of sales. This was a 207% year-over-year increase, driven by a strong performance by the aerospace segment.

Sales increased by 24.9% for the aerospace segment, which accounts for 88% of the business, to $177.6 million, with growth fueled by commercial transport sales. Astronics Corporation (NASDAQ:ATRO) witnessed increased demand from airlines for inflight entertainment and connectivity products.

Military sales for the quarter were $21.7 million, up 30% compared to last year, driven by progress on the Future Long-Range Assault Aircraft (FLRAA) program. In August 2023, Astronics Corporation (NASDAQ:ATRO) was selected by Bell to support the development of the V-280 Valor for the American Army. The company has supplied Bell with electrical power and distribution systems for the demonstrator aircraft for several years.

Astronics Corporation (NASDAQ:ATRO) is encouraged by strong demand and is entering the fourth quarter with a backlog of $612 million. This sets it up for continued improvements in financial results toward the end of the year and the beginning of 2025. Wall Street analysts anticipate a share price upside potential of 23% for ATRO. Considering its low forward P/E ratio and 22 hedge funds, amongst those tracked by Insider Monkey, having a stake in the company, it is among the best aerospace stocks to invest in.