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ESCO Technologies Inc

ESCO Technologies Inc

ESE
$318.52USD↓-1.18%-3.80 today

MARKET CAP

8.3B

P/E (TTM)

42.6x

FWD P/E

35.9x

DAY RANGE

$311 – $325

52W RANGE

$175
$362

AI Summary

Stalk
Sell NowMedium

Price is entrenched in a Stage 4 decline, with active Support Failure and a clear sequence of lower highs and lower lows reinforcing sustained seller control. Medium-term bias is firmly bearish, permitting only sell-side engagement. In the short-term, EMAs are declining and price has decisively broken below key support, creating a favorable timing window to participate in the downward continuation through the broken support zone.

  • ↑Q2 orders surged 42%, driving backlog to $932 M.
  • ↑Adjusted EBIT margin expanded to 21.7%, EPS jumped 63% to $1.91.
  • ↓Earnings yield is negative, raising valuation concerns.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

ESCO Technologies Inc. (NYSE: ESE) is a leading provider of innovative engineered products and solutions in the aerospace and defense, utility solutions, and test and measurement markets. The company operates in a diversified structure that allows it to capitalize on growth opportunities fueled by increased government defense spending and utility infrastructure investments. ESCO is strategically positioned to enhance its value through key acquisitions, such as the recent maritime business acquisition, which bolsters its presence in the Navy and expands its capabilities within the utility sector.

Bull says

  • ↑Q2 orders surged 42%, driving backlog to $932 M.
  • ↑Adjusted EBIT margin expanded to 21.7%, EPS jumped 63% to $1.91.
  • ↑85% of segment activity tied to utility capex supports stable demand.
  • ↑Megger acquisition set to be EPS-accretive in year one.
  • ↑Momentum and growth factors are strong, signaling positive sentiment.
  • ↑Operating cash flow rose to $135 M, fueling M&A and capex.

Bear says

  • ↓Earnings yield is negative, raising valuation concerns.
  • ↓Dependency on U.S. defense budgets exposes order downside.
  • ↓Renewables segment slows as expiring tax credits delay projects.
  • ↓High short interest reflects bearish sentiment and volatility risk.
  • ↓Negative book-to-price score signals limited value cushion.
  • ↓Low institutional ownership may constrain share support.

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 05-28-2026neutral

Transcript signals

Bull points

  • The good news is, as Brian said, I mean, we see them as on track. The backlogs are really healthy. So they're kind of trending, you know, at or above the kind of plans we were thinking of whenever we announced this last July.
  • we're already starting to see signs that things are moving in the right direction.
  • The first half of our fiscal 2025 has been highlighted by really good operational performance and positive strategic developments.

Bear points

  • We certainly see the waters are getting a little bit choppy, and economic growth could be a little bit more challenging,
  • We certainly see the waters are getting a little bit choppy, and economic growth could be a little bit more challenging,
  • We are anticipating unfavorable earnings impacts from tariffs in a range of $2 to $4 million, and those impacts are factored into the new adjusted earnings per share guidance.
Read full transcript analysis ›