ESCO Technologies Inc. (ESE) Stock Analysis
Breakout setup
Technology · Scientific & Technical Instruments
Hold if already holding. Not a fresh buy at $329.46, but acceptable to hold if already in. Reasons: Concentration risk — Supplier: Globe single supplier of critical materials; Analyst target reached - limited upside remaining.
ESCO Technologies operates three segments: Aerospace & Defense (44% of FY2025 revenue from continuing operations), Utility Solutions Group (35%), and RF Test & Measurement (21%), with total firm-order backlog of $1.13 billion at September 30, 2025. The company sells to U.S.... Read more
Hold if already holding. Not a fresh buy at $329.46, but acceptable to hold if already in. Reasons: Concentration risk — Supplier: Globe single supplier of critical materials; Analyst target reached - limited upside remaining. Chart setup: Golden cross, above all MAs, RSI 69, MACD bullish. Maintain position. Not compelling to add more. Score 5.7/10, moderate confidence.
Passes 7/9 gates (positive momentum, clean insider activity, news boost analyst 0.35, news boost analyst cluster(3), earnings proximity 55d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated 2026-06-17Recent Developments — ESCO Technologies Inc.
Material events (past 30 days)
- 8K Jun 3, 2026 MEDIUM Item 1.01: ESCO entered into new credit agreement with JPMorgan Chase as administrative agent on May 29, 2026, to finance approximately $2.35 billion acquisition of Megger Group Limited (cash portion ~$922M plus 5.10M shares). Agreement effective upon acquisition closing.
- 8K Jun 3, 2026 MEDIUM Item 1.02: Prior credit agreement terminated concurrent with entry into new acquisition credit facility on May 29, 2026. Termination connected to Megger Group acquisition refinancing. No other reason cited.
- 8K Jun 3, 2026 MEDIUM Item 2.03: Direct financial obligation created under new acquisition credit agreement entered May 29, 2026, to finance approximately $2.35 billion Megger Group Limited purchase. JPMorgan Chase as administrative agent; effective upon acquisition consummation.
Latest news
- NEWS ESCO Technologies (NYSE:ESE) Issues Q2 2026 Earnings Guidance - MarketBeat — MarketBeat positive
- NEWS ESCO Technologies to buy Megger Group in $2.35B cash and stock deal (ESE:NYSE) - Seeking Alpha — Seeking Alpha positive
- NEWS Esco Technologies to Acquire TBG’s Megger Group in $2.35 Billion Deal - WSJ — WSJ positive
- NEWS Horizon Investments LLC Grows Stock Holdings in ESCO Technologies Inc. $ESE - MarketBeat — MarketBeat positive
- NEWS What To Expect From ESCO’s (ESE) Q1 Earnings - StockStory — StockStory neutral
Generated 2026-06-17T08:56:47Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWCustomerU.S. Government23%10-K Item 1A: 'In 2025, approximately 23% of our revenues from continuing operations were generated from sales to the U.S. Government or its contractors, primarily within our A&D segment.'
- MEDIUMProductAerospace & Defense segment44%10-K Item 1: 'The A&D segment accounted for approximately 44%, 37% and 34% of our total revenue from continuing operations in 2025, 2024 and 2023, respectively.'
- HIGHSupplierGlobe single supplier of critical materials10-K Item 1A: 'Globe has a single supplier of critical materials for a significant military production program'
- LOWSupplierDoble single-location supplier10-K Item 1A: 'one of these suppliers produces approximately 23% of Doble's products from a single location within the United States'
Material Events(8-K, last 90d)
- 2026-06-03Item 1.01MEDIUMESCO entered into new credit agreement with JPMorgan Chase as administrative agent on May 29, 2026, to finance approximately $2.35 billion acquisition of Megger Group Limited (cash portion ~$922M plus 5.10M shares). Agreement effective upon acquisition closing.SEC filing →
- 2026-06-03Item 1.02MEDIUMPrior credit agreement terminated concurrent with entry into new acquisition credit facility on May 29, 2026. Termination connected to Megger Group acquisition refinancing. No other reason cited.SEC filing →
- 2026-06-03Item 2.03MEDIUMDirect financial obligation created under new acquisition credit agreement entered May 29, 2026, to finance approximately $2.35 billion Megger Group Limited purchase. JPMorgan Chase as administrative agent; effective upon acquisition consummation.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $329.46, but acceptable to hold if already in. Reasons: Concentration risk — Supplier: Globe single supplier of critical materials; Analyst target reached - limited upside remaining. Chart setup: Golden cross, above all MAs, RSI 69, MACD bullish. Maintain position. Not compelling to add more. Target $329.06 (-0.1%), stop $308.88 (−6.7%), A.R:R -0.3:1. Score 5.7/10, moderate confidence.
Take-profit target: $329.06 (-0.1% upside). Target $329.06 (-0.1%), stop $308.88 (−6.7%), A.R:R -0.3:1. Stop-loss: $308.88.
Concentration risk — Supplier: Globe single supplier of critical materials; Analyst target reached - limited upside remaining; Near 52-week high (4.8% away).
ESCO Technologies Inc. trades at a P/E of 64.5 (forward 35.9). TrendMatrix value score: 3.1/10. Verdict: Hold.
7 analysts cover ESE with a consensus score of 4.1/5. Average price target: $373.
What does ESCO Technologies Inc. do?ESCO Technologies operates three segments: Aerospace & Defense (44% of FY2025 revenue from continuing operations),...
ESCO Technologies operates three segments: Aerospace & Defense (44% of FY2025 revenue from continuing operations), Utility Solutions Group (35%), and RF Test & Measurement (21%), with total firm-order backlog of $1.13 billion at September 30, 2025. The company sells to U.S. Government and its contractors (23% of 2025 revenues) and international customers (34%), employing 3,425 persons across domestic and 16 international offices.