These 2 Electronic Stocks are Approaching Winning in Different Ways

NASDAQ: TTMI | TTM Technologies, Inc. News, Ratings, and Charts

TTMI – As electronic components become more sophisticated and provide the promise of efficiency and power management, many industries are upgrading and replacing electronic equipment and infrastructure. This is in turn fueling demand for these components, which was already stretched thin first by supply chain issues, and then by a rapid ramp in AI development in 2023. Many companies are just catching up in 2024. Though employing different strategies, TTMI Technologies and Eltek should see continued stock gains in 2024.

There are several ways a business can improve itself. Some of these include cutting costs, making operations more efficient, and expanding into new but adjacent markets. Another way is to focus on moving up the value chain…selling higher priced goods, which normally come with higher margins, to new or existing customers. And, simultaneously, divesting, or letting go of low margin operations. 

That is exactly what TTM Technologies (TTMI) has been doing over the past year, and the strategy should start paying dividends in 2024. TTM is a manufacturer of RF components and RF microwave and  microelectronic assemblies, and PCBs, or Printed Circuit Boards. 

These are the electronic components that make data centers (think cloud and AI) run, and radar (think global conflict as well as global travel) run correctly and efficiently. These components are used in a wide array of industries, including data centers, networking, aerospace and defense, semiconductor manufacturing, and automobiles. 

TTMI customers include NVIDIA (NVDA), Cisco (CSCO) and RTX Corp. (RTX), just to name a few. The company is global in scale, with almost 18,000 employees in over 25 facilities around the world. And TTM Technologies has been adding both products and customers as it moves up the value chain. 

In its most recent quarter, TTM recognized a goodwill impairment charge of close to $45 million as it reset its radio frequency business and divested a low performing mobility business. Commenting on the quarter, CEO Tom Edman stated non-GAAP earnings were, “well above the guided range as a result of improved execution, particularly in our North America region and strength in our Data Center Computing end market.”

In the quarter, TTMI was able to repurchase 1 million shares of stock. And generated cash flow from operations of close to $59 million. The company was also able to announce that aerospace and defense revenue had topped $1 billion, from the $700 million level just two years ago. 

TTM Technologies comes in at a B in our POWR Ratings with an overall score of 86.56%. In the component rankings TTMI scores well above average on Sentiment, where it rates above 97.68% of other stocks.

By moving up the value chain in its products, TTM is increasing both customer spend, as well as customer satisfaction, as reported by the company, with its best customers. 

Another company making strides in the electronic manufacturing industry, and set to have another good year in 2024, is Eltek (ELTK). Eltek makes PCBs, or printed circuit boards. The company is located in Israel, and despite the ongoing Middle East conflict has been able to maintain and actually increase production.

Addressing the latest quarter, CEO Eli Yaffe stated, “We generated $11.9 million in revenue, leading to a robust gross profit of $3.7 million and a net profit of $2.1 million. These exceptional numbers reflect the strong market demand for our products, underpinned by our efficient order selection, which strikes a balance between maximizing profitability and aligning with our production capabilities.”  

Eltek’s products are used in a variety of industrial applications, including for power generation, telecom, and railroad and transportation systems. Eltek has been able to take advantage of the continued build out, and update of the power grid globally, providing efficient power management tools. 

The company trades at a PE of 16, only .61 times sales, and has gross margins of almost 21%. The stock has been on a run in 2023, which should continue into 2024 as demand for its products is increasing. 

Eltek has an overall B rating in our POWR Rating system. It is incredibly strong in the Quality component, where it scores above 99.28% of the stocks we track.   

Both TTMI and ELTK come into 2024 with advantages in place. TTMI is in the midst of a restructuring, and a move upstream, while ELTK is seeing robust demand from customers and executing on its current plan. Both stocks could see profitable gains in 2024 as the year plays out.

 What To Do Next?

Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:

3 Stocks to DOUBLE This Year >


TTMI shares were trading at $14.23 per share on Thursday afternoon, up $0.02 (+0.14%). Year-to-date, TTMI has declined -9.99%, versus a -0.21% rise in the benchmark S&P 500 index during the same period.


About the Author: Steven Adams


After earning a law degree cum laude with a focus on securities law, Steven worked as a Nasdaq market maker for a large broker dealer, and then as a trader for an arbitrage focused proprietary hedge fund. He subsequently worked as a consultant for a Fortune 500 consulting firm serving both government and commercial clients, including the NYSE, Prudential, FDIC, and NASA. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
TTMIGet RatingGet RatingGet Rating
ELTKGet RatingGet RatingGet Rating
CSCOGet RatingGet RatingGet Rating
NVDAGet RatingGet RatingGet Rating
RTXGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Is This REALLY a Bull Market?

The S&P 500 (SPY) keeps making record highs...but does that mean that market conditions are truly bullish? 44 year investment veteran shines a light on how hollow recent gains are as they are only accruing to a handful of stocks with most investors searching high and low for stock market gains. Read on for more...

Unveiling Adobe (ADBE) Q2 Earnings: What Lies Ahead for Investors?

Software giant Adobe Inc. (ADBE) has released its second-quarter earnings, revealing double-digit growth in both revenue and profits. Yet, concerns arise around the complexities of navigating growth in the face of advancing AI technologies. Let’s analyze ADBE’s recent performance and assess key fundamentals to uncover what lies ahead for investors…

3 AI Stocks to Invest in for the Next Technological Revolution

The AI market is experiencing a significant growth trajectory, driven by widespread application across various industries. Hence, it could be wise to invest in top AI stocks, Alphabet (GOOGL), Meta Platforms (META), and Alibaba Group Holding (BABA) for the next technological revolution. Read more...

Analyzing Broadcom’s (AVGO) Q2 Earnings: Worth Investing?

Driven by a surge in demand for its AI products, Broadcom (AVGO) reported robust earnings in its latest quarterly results, exceeding expectations on both top and bottom lines. However, is the stock’s recent announcement of a 10-for-1 stock split worth investing in? Keep reading to find out…

Bullish or Bearish Stock Set Up?

The S&P 500 (SPY) record highs sounds pretty darn bullish on the surface. Yet as we dig below the surface there are some curious signals that point more Risk Off. This is especially true as we come into the next Fed meeting after a round of data that points to inflation still being too high...only further delaying the first rate cut. What does this all mean for stocks from here? Steve Reitmeister offers his latest views on the market outlook along with a preview of his top picks to stay on step ahead of the market. Read on for more...

Read More Stories

More TTM Technologies, Inc. (TTMI) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All TTMI News