This Top-Performing Small-Cap Stock Is Gaining Wall Street's Attention

InTest benefits from strong auto and chip markets.

This Top-Performing Small-Cap Stock Is Gaining Wall Street's Attention

InTest, a manufacturer of electronic testing and manufacturing processes gear, saw its sales increase in recent months due to growth segments on the automotive and semiconductor market. INTT's stock has been pushed to the top of IBD's Tech Leaders list.

InTest's shares reached a record high of 21,19 dollars on March 22. However, they have since fallen amid the recent volatility in tech stocks. INTT closed Wednesday's regular session at 18.32.

In a recent client note, Northland Capital Markets' Ted Jackson stated that he believes the shares of the company will continue to rise as more people become aware. He described InTest's stock as "an excellent investment."

Jackson has a 24 price target for INTT and rates it as an outperform stock.

Mount Laurel-based company manufactures precision-engineered equipment for manufacturing and testing in the automotive, aerospace, defense, energy, industrial and semiconductor markets.

INTT stock surges after earnings report

InTest announced better than expected results on March 3. The company reported earnings of 34 cents per share, adjusted for inflation, with sales of $60.10 million. Sales increased 45% and earnings rose 386% on a year-overyear basis. INTT's stock soared following the report.

InTest reported strong demand for its services from customers in the semiconductor, automotive and aerospace and defense industries, as well as life sciences.

InTest's sales increased by 38% last year to $116.8 millions. The company expects sales to rise 9% this year, to $127.5 Million, based upon the midpoint in its outlook.

Through organic growth and acquisitions, the company aims to reach annual sales between $200 million and $250 million by 2025.

New Focus, New Management

Tim Moore, EF Hutton analyst, said InTest benefits from a management team that is focused on growth. He said that these opportunities include equipment for producing silicon carbide semiconductors, and electric vehicle battery tests. Moore also rates INTT as a Buy with a 22-cent price target.

In August 2022, Nick Grant will become the new CEO of InTest. Duncan Gilmour, the Chief Financial Officer, joined InTest in June 2021. Both executives are also former ABB (ABB) employees.

Grant, speaking at the Sidoti Small Cap Conference in March 23, said that InTest was "in the middle of a transformative process." Grant said that the company was moving from being a conservative value company to one with growth potential.

Grant stated that "our team is focused on being the preferred supplier for our innovative testing and process technologies."

Grant has been in charge of three acquisitions since he joined the company. These have helped to diversify its business.

InTest has customers such as Analog Devices, Lockheed Martin, Qualcomm (QCOM), Raytheon and Texas Instruments. InTest's total sales last year were 59% attributed to the semiconductor industry.

INTT has the highest possible IBD Composite rating of 99.