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ESCO Technologies Inc. (ESE) Stock Analysis

SellModerate Confidence

Technology · Scientific & Technical Instruments

Sell if holding. At $294.90, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 7.6%; Concentration risk — Supplier: Globe single supplier of critical military materials.

ESCO Technologies provides engineered components for aerospace/defense (A&D, 44% of FY2025 revenue), RF test and measurement (Test, 21%), and utility diagnostic instruments (USG, 35%) to commercial and government customers globally. Approximately 23% of 2025 revenue came from... Read more

$294.90+7.6% A.UpsideScore 5.7/10#5 of 14 Scientific & Technical Instruments
QualityF-score7 / 9FCF yield4.24%
IncomeYield0.11%(5y avg 0.30%)Payout6.30%sustainable
Stop $275.89Target $317.33(analyst − 15%)A.R:R 0.8:1
Analyst target$373.33+26.6%3 analysts
$317.33our TP
$294.90price
$373.33mean
$400

Sell if holding. At $294.90, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 7.6%; Concentration risk — Supplier: Globe single supplier of critical military materials. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.7/10, moderate confidence.

Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 83d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

Val3.8Qual6.1Grw7.2Mom5.1Sent6.8Ins5.0Peer4.8Tech7.3Risk6.85.7OVERALL

Recent Developments — ESCO Technologies Inc.

Latest news

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
Strong earnings beat streak (3/4)
Strong growth profile
Risks
Concentration risk — Supplier: Globe single supplier of critical military materials
Thin upside margin: 7.6%
Sector modifier (Technology): -0.8

Key Metrics

P/E (TTM)57.4
P/E (Fwd)31.8
Mkt Cap$7.6B
EV/EBITDA25.8
Profit Mgn24.7%
ROE9.2%
Rev Growth33.5%
Beta1.18
Dividend0.11%
Rating analysts7

Quality Signals

Piotroski F7/9MoatNarrow

Options Flow

P/C1.18bearish
IV38%normal

Concentration Risks(10-K Item 1A)

  • MEDIUMCustomerU.S. Government23%
    10-K Item 1: 'Direct and indirect sales to the U.S. Government, primarily related to the A&D segment, accounted for approximately 23%, 20% and 17% of our total revenue from continuing operations in 2025, 2024 and 2023, respectively.'
  • HIGHSupplierGlobe single supplier of critical military materials
    10-K Item 1A: 'Globe has a single supplier of critical materials for a significant military production program, and if this supplier were to discontinue producing these components in a timely manner the need to secure another source could pose a risk'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static

Ev Ebitda
0.0
Pe
2.1
Forward Pe
3.6
Peg Ratio
3.8
Analyst Target
6.0
Ps
6.2
Forward P/E: 31.8xPEG: 2.81
GatesA.R:R 0.8 < 1.5@spotMomentum 5.1<5.5 (soft — BUY_NOW allowed but watch)Momentum 5.1>=4.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 83d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
40 · Neutral
↓ 20D MA↓ 50D MA↑ 200D MAGOLDEN CROSSSupport $284.42Resistance $346.20

Price Targets

$276
$317
A.Upside+7.6%
A.R:R0.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Reward/Risk 0.8:1 at current price — below 1.5:1 minimum

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-08-10 (83d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is ESE stock a buy right now?

Sell if holding. At $294.90, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 7.6%; Concentration risk — Supplier: Globe single supplier of critical military materials. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $275.89. Score 5.7/10, moderate confidence.

What is the ESE stock price target?

Take-profit target: $317.33 (+7.6% upside). Prior stop was $275.89. Stop-loss: $275.89.

What are the risks of investing in ESE?

Concentration risk — Supplier: Globe single supplier of critical military materials; Thin upside margin: 7.6%; Sector modifier (Technology): -0.8.

Is ESE overvalued or undervalued?

ESCO Technologies Inc. trades at a P/E of 57.4 (forward 31.8). TrendMatrix value score: 3.8/10. Verdict: Sell.

What do analysts say about ESE?

7 analysts cover ESE with a consensus score of 4.1/5. Average price target: $373.

What does ESCO Technologies Inc. do?ESCO Technologies provides engineered components for aerospace/defense (A&D, 44% of FY2025 revenue), RF test and...

ESCO Technologies provides engineered components for aerospace/defense (A&D, 44% of FY2025 revenue), RF test and measurement (Test, 21%), and utility diagnostic instruments (USG, 35%) to commercial and government customers globally. Approximately 23% of 2025 revenue came from U.S. government sales, primarily in the A&D segment.

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