Hidden Gem Surges 600% With Major Defense Contracts
TTM Technologies (NASDAQ: TTMI), a leading printed circuit board manufacturer, has delivered a 600% stock price increase over the past year. The company serves as North America’s top PCB producer and a critical supplier of advanced circuit boards to the U.S. military.
Dual Growth Engines
TTM Technologies benefits from two powerful trends. The Data Center Computing division is expected to grow 66% year-over-year in Q1 2026, driven by infrastructure investments from major cloud providers. Meanwhile, the Pentagon’s proposed $1.5 billion budget and international military orders from Europe and the Gulf region create sustained demand.
$1.6 Billion Defense Backlog
The company holds a defense and aerospace backlog valued at $1.61 billion, providing strong revenue visibility. This includes a multi-year contract with Raytheon (NYSE:RTX) worth up to $200 million for LTAMDS radar system components.
Accelerating Financial Performance
While revenue growth averaged 4.7% annually over the past three years, analysts project this rate will exceed 15% in coming years. Earnings per share growth is expected to approach 33% annually, nearly triple recent expansion rates. The company trades at 43 times forward earnings, appearing reasonable compared to other data center suppliers with similar profiles commanding triple-digit valuations.
Investment Outlook
The combination of data center infrastructure exposure and stable defense contracts makes TTM Technologies unique among U.S.-based manufacturers. Additional contracts similar to the Raytheon agreement could substantially impact the backlog and drive further appreciation.
