Bottleneck Solvers

BN · rank #12 · 2026-07-22

TATT

NASDAQ · $529M (USD)

SignalSell
verdict · CAUTION

The exact numbers the algorithm saw.

Bottleneck themes
The structural shortage this name supplies into.
US munitions and energetics capacity
Factor scores and the inputs behind this pick.
Composite score
Z-score blend of the factors below; drives the rank.
0.27
Forward revenue growth
Consensus forward revenue growth.
+17.1%
Forward net margin
Consensus forward net margin.
+10.8%
Net margin TTM
Trailing twelve month net margin.
+9.3%
Margin expansion
Forward minus trailing net margin (percentage points).
+1.5%
Forward PEG
Forward P/E to growth. Below 1 is cheap for the growth.
4.62
Debt / FCF
Net debt relative to free cash flow. Lower is safer.
1.35×
Analyst upside
Spread between the consensus 12m target and the current price.
+49.1%
Last EPS surprise
Most recent reported EPS versus consensus.
-44%
Market cap (USD)$529M

The AI research card

Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.

Summary

TAT Technologies (TATT) supplies thermal management components and MRO services for APUs, landing gear and jet engines to commercial, cargo and defense customers, with a growing contracted backlog.

Rationale

The bottleneck-solver signal is supported by a record roughly $550–580 million backlog, new $45 million long-term MRO awards, and program-linked OEM/defense relationships that create revenue visibility and capacity scarcity value.

Material risks

  • 1The biggest thesis-breaker is customer insourcing or qualification displacement by major OEMs and integrators like Boeing, Embraer or defense partners, which could erode TAT’s specialized positioning and backlog quality.
  • 2The stock screens expensive at a forward PEG of 4.6 after a weak last EPS surprise, so any supply-chain hiccup or margin miss could compress the multiple quickly.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.

OpenAI
Proceed
Claude
Caution
Gemini
Error