InTest, a maker of electronics testing and manufacturing process gear, has gotten a sales boost lately from growth segments in the automotive and semiconductor markets. And that has pushed INTT stock near the top of the IBD Tech Leaders list.
InTest shares hit a 23-year high of 21.19 on March 22, but have pulled back amid recent turmoil for tech stocks. Meanwhile, INTT stock ended the regular session Thursday at 18.85, up 2.9%.
"We believe the company's shares will continue to appreciate as the Street gains awareness," Northland Capital Markets analyst Ted Jackson said in a recent note to clients. He called InTest stock "an excellent value investment."
Jackson rates INTT stock as outperform with a price target of 24.
The Mount Laurel, N.J.-based company makes precision-engineered gear for use in manufacturing and testing across automotive, aerospace and defense, energy, industrial, semiconductor and telecommunications markets.
INTT Stock Surges After Earnings Report
On March 3, InTest posted better-than-expected results for the fourth quarter, reporting earnings of an adjusted 34 cents a share on sales of $60.1 million. On a year-over-year basis, earnings jumped 386% while sales climbed 45%. INTT stock surged after the report.
InTest cited strong demand from semiconductor, automotive, aerospace and defense, and life sciences customers.
Last year, InTest sales rose 38% to $116.8 million. This year, the company has forecast sales rising 9% to $127.5 million, based on the midpoint of its outlook.
The company is targeting annual sales of $200 million to $250 million in 2025 through organic growth and acquisitions.
New Management, New Focus
EF Hutton analyst Tim Moore said InTest is benefiting from a new management team focused on growth opportunities. Those opportunities include equipment to produce silicon carbide semiconductors and for electric vehicle battery testing, he said. Also, Moore rates INTT stock as a buy with a price target of 22.
InTest Chief Executive Nick Grant took the company's reins in August 2022. Chief Financial Officer Duncan Gilmour joined in June 2021. In addition, both executives came from electrical equipment maker ABB.
Speaking at the Sidoti Small Cap Conference on March 23, Grant said InTest is "in the midst of a transformation." Further, the company is moving from a conservative value play to a growth company, he said.
"Our team really is laser-focused on being the supplier of choice for our innovative test and process technologies," Grant said.
Since coming on board, Grant has overseen three acquisitions that have diversified its business base.
InTest's customers include Analog Devices, Lockheed Martin, Qualcomm, Raytheon and Texas Instruments, to name a few. Last year, the semiconductor market accounted for 59% of its total sales.
InTest ranks first out of 36 stocks in IBD's Electronics-Miscellaneous Products industry group, according to IBD Stock Checkup. Also, INTT stock has a best-possible IBD Composite Rating of 99.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
