Can TTM Technologies’ Quiet Rally Continue in 2025?

Just about every modern device, from advanced electric vehicles and state-of-the-art fighter jets to your everyday household appliances and smartphone, relies on printed circuit boards (PCBs) to function. TTM Technologies (NASDAQ: TTMI) is one of the largest manufacturers of such circuit boards in North America.

But that’s not the only reason the stock is worth watching … Let’s start by looking at a recent bullish catalyst. 

On February 5, the company released its Q4 2024 earnings report.

To say that the results came in better than expected would be putting it mildly. Earnings per share (EPS) came in at $0.52 — some 26.83% above consensus analyst estimates of $0.41. Revenues, on the other hand, clocked in at $651 million — outperforming expectations, which were pegged at $630.6 million.

This beat wasn’t a one-off. For the past 8 quarters, earnings have either surpassed estimates or met them. It comes then, as little wonder, that the price of TTMI stock has increased by 71.80% over the past 365 days.

Our proprietary quant system, which takes into account 115 factors, gave the stock a Zen Rating of A or Strong Buy. Equities that earn that distinction have, on average, provided a yearly return of 32.52% since the early 2000s. However, looking at the chart above, you really get a sense of the weight of the ‘average’ in that statement.

We have reason to believe that this level of outperformance wasn’t a one-off. Taken as a whole, 115 factors can be a bit much to take in and digest — but once they’re neatly separated into the 7 Component Grade ratings that come together for a final tally, we can more easily drill down into the specifics.

On the whole, there’s quite a lot to like here. TTMI’s Sentiment and Safety ratings are the stars of the show, however. 

The Safety rating is a measure of how consistently a business performs — think predictable earnings, stable cash flows, and strong operational metrics. While TTM Technologies stock is prone to numerous (temporary) dips, it has also been on a pretty clear uptrend since Q2 of 2023 — netting a Safety rating of A.

The Sentiment rating, on the other hand, takes into account earnings surprises and analyst estimates. Interestingly enough, the stock hasn’t received a lot of attention thus far. 

Most recently, Ruben Roy, a Stifel Nicolaus analyst, initiated coverage with a ‘Strong Buy’ rating issued after the latest earnings call. Beyond that, the only other analyst tracking TTMI stock is Needham’s James Ricchiuti, who maintains a ‘Buy’ rating.

Here’s why that’s still a strong vote of confidence — for one, both analysts set price targets at $33 — a mark that implies a pretty decent 26.15% upside. Secondly, these aren’t your average analysts — Ruben Roy is rated in the top 3%, while James Ricchiuti breathes even more rarified air as a top 1% rated analyst.

With all of that said, readers should keep in mind that our system does rate things on a curve — while it might seem that Financials, for example, are a weak point, that’s not necessarily true. 

The company’s debt level has consistently been shrinking over the past 5 years, and it maintains a robust war chest of short-term assets that outstrip its short-term and long-term liabilities.

Lastly, we have to talk about valuation — with a price-to-earnings (P/E) ratio of 39.04x, you wouldn’t think to call TTMI a cheap stock at first glance, especially when you consider that the market-wide average sits at 38.39x. 

But everything’s relative, and nothing happens in a vacuum — compared to the average of other stocks in its industry, which is 42.3x, that valuation becomes a lot more enticing — and once growth is factored in through a very appealing price to earnings growth (PEG) ratio of 0.29x, TTM Technologies stock starts looking like a bargain.

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