Chicago, IL – May 30, 2025 – Today, Zacks Equity Research discusses TTM Technologies TTMI, American Superconductor AMSC and Allient ALNT.
Industry: Electronics Components
Link: https://www.zacks.com/commentary/2479021/3-electronics-components-stocks-to-buy-from-a-prospering-industry
The Zacks Electronics - Miscellaneous Components industry participants are benefiting from the ongoing automation drive and increased spending by manufacturers of semiconductors, automobiles, machinery and mobile phones. Industry participants like TTM Technologies, American Superconductor and Allient are well-poised to benefit from the solid adoption of Artificial Intelligence (AI) and the democratization of IoT, which are transforming robotics, industrial automation, transportation systems, retail and healthcare.
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Powered by Money.com - Yahoo may earn commission from the links above. However, a challenging global macroeconomic environment, end-market volatility, and higher tariffs are headwinds. Export restrictions imposed by the United States, as well as China, are a major headwind. Growing geopolitical tensions and foreign currency headwinds are taking a toll on the industry players.
The Zacks Electronics - Miscellaneous Components industry primarily comprises companies providing various accessories and parts used in electronic products. The industry participants’ offerings include power control and sensor technologies to mitigate equipment damage, testing products for safety, and advanced medical solutions.
They cater to varied end markets, such as telecommunications, automotive electronics, medical devices, industrial, transportation, energy harvesting, defense and aerospace electronic systems, and consumer electronics. Customers in this industry are mainly original equipment manufacturers, independent electronic component distributors and electronic manufacturing service providers.
Automation Boom a Tailwind: The requirement for faster, more powerful and energy-efficient electronics leads to increased automation. Control systems, such as computers, and robots and information technologies for handling different processes and machinery, are driving the industry. The growing installation of collaborative robots, which add efficiency to production processes by working with production workers, will benefit the industry participants. IoT-supported factory automation solutions are other contributing factors. The evolution of smart cars and autonomous vehicles is expected to drive growth for the industry.
Miniaturization Remains a Key Lever: The industry participants are benefiting from the ongoing transition in semiconductor manufacturing technology. Demand for advanced packaging, enabling the miniaturization of electronic products, remains strong. The consistent shift to smaller dimensions, the rapid adoption of device architectures like FinFET transistors and 3D-NAND, and the increasing utilization of new manufacturing materials to increase transistor and bit density are driving the demand for solutions provided by industry players.
Geopolitical Tensions Are Worrisome: The ongoing Russia-Ukraine war and the souring relationship between the United States and China are headwinds. Increasing dependency on AI-backed electronic devices on semiconductors and current restrictions ordered by the United States on trading with China, which remains the main hub for chip production, is a significant negative for the industry.
The Zacks Electronics - Miscellaneous Components industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #80, which places it in the top 33% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bullish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of the positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. Since March 31, 2025, the industry’s earnings estimates for the current year have moved 1.8% up.
Given the bullish prospects, there are a number of stocks that investors can choose to pick for a healthy portfolio. However, before we present the stocks, let us look at the industry’s recent stock-market performance and the valuation picture.
The Zacks Electronics - Miscellaneous Components industry has underperformed the Zacks S&P 500 composite and the broader Zacks Computer and Technology sector in the past year.
The industry has decreased 8.9% over this period compared with the S&P 500’s as well as the broader sector’s rally of 12.4%.
Based on the forward 12-month price to earnings (P/E), a commonly used multiple for valuing electronics – miscellaneous components stocks, the industry is currently trading at 18.16X compared with the S&P 500’s 21.66X and the sector’s 25.6X.
In the past five years, the industry has traded as high as 20.84X and as low as 16.52X, with a median of 18.24X.
Allient: This Zacks Rank #1 (Strong Buy) stock is benefiting from operational and strategic discipline amid demand softness in the industrial automation and vehicle markets. You can see the complete list of today’s Zacks #1 Rank stocks here.
Allient’s “Simplify to Accelerate NOW” program is driving efficiency and realigning resources according to demand. ALNT is taking steps to reduce exposure to geopolitical risks related to tariffs and rare-earth magnet sourcing due to the China-U.S. trade war and export restrictions.
Allient shares have appreciated 29% in the year-to-date period. The Zacks Consensus Estimate for the company’s 2025 earnings has increased 4.8% to $1.93 per share in the past 30 days.
TTM Technologies: This Zacks Rank #1 company is benefiting from strong end-market demand from industries like aerospace and defense, data center computing, networking, and medical, industrial, and instrumentation. In first-quarter 2025, the company’s book-to-bill ratio was 1.10.
TTM Technologies shares have dropped 6.6% year to date. The Zacks Consensus Estimate for 2025 earnings has been steady at $3.42 per share in the past 30 days.
American Superconductor: This Zacks Rank #2 (Buy) company’s diversified offerings cater to a broad range of industries, including utilities, renewables and defense. The company’s D-VAR systems, which stabilize power grids and advanced wind turbine designs, continue to see strong demand. Its recent acquisition of NWL expands its footprint in the military and industrial markets.
American Superconductor shares have returned 13.2% in the year-to-date period. The Zacks Consensus Estimate for AMSC’s fiscal 2026 earnings has been revised upward by a penny to 62 cents per share over the past 30 days.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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American Superconductor Corporation (AMSC) : Free Stock Analysis Report
TTM Technologies, Inc. (TTMI) : Free Stock Analysis Report
Allient Inc. (ALNT) : Free Stock Analysis Report
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