Whether buoyed by massive gains in artificial intelligence or not, the S&P 500 has had several strong months, rising nearly 33% since early April. Two somewhat underappreciated companies — Innodata Inc. NASDAQ:INOD Astronics Corporation Nansdaq: Atro– These gains far exceeded, as they rose by about 173% and 123%, respectively, during the same period.
Although each of these stocks has seen a massive rally, their strong fundamentals and share price catalysts suggest that each could have more room to run. We’ll explore both in detail and also look at some of the risks each stock presents.
The expansion of AI provides great momentum to the viscera
Inodata today
As of 04:00 PM ET
- 52 week range
- $14.79
▼
$93.85
- P/E ratio
- 73.98
- Price target
- $63.00
Data engineering and artificial intelligence company Innodata provides content and other services to media companies, legal organizations, and a range of other clients. Its recent shift toward the enterprise AI suite allows it to carve out a niche not occupied by other larger AI companies. With strong new deals and a strong pipeline, Innodata improved revenue by an impressive 79% year-over-year (YOY) for the most recent quarter, and boosted adjusted EBITDA by 375% in the process. The company came in well ahead of analysts’ expectations on the bottom line as well, reporting 20 cents in earnings per share compared to 11 cents expected.
Innodata positions itself as a trusted source of high-resolution data service at a time when AI applications demand more and more of these tools. Even better for the company is that it has so far been able to navigate a complex web of customer relationships in the technology space, which should allow it to retain customers at a competitive advantage over some of its competitors. For example, Innodata’s competitor Scale AI faced backlash from some companies that subsequently cut ties Great partnership With Meta Platforms Inc. Nasdaq: Meta.
With all these growth drivers, and given the impressive recent rally, investors may be skeptical that Innodata still has room to rise further. However, the company’s value metrics aren’t off the chart for the industry: it has a P/E ratio of 70.5 and a P/E ratio of 16.3. Four out of five analysts rating INOD shares agree that the company is a buy.
Innodata Inc. price chart (INOD) for Thursday, October 9, 2025
Dominance of in-flight power infrastructure boosts Astronic’s prospects
Astronomers today
As of 04:00 PM ET
- 52 week range
- $14.13
▼
$48.94
- Price target
- $49.00
Astronics, a maker of aerospace, defense and semiconductor technologies, faced losses for a long period before recently turning around its financials and returning to profitability. The strong results achieved by the company in the aviation sector contributed to enhancing this performance. Astronics reported record sales of $194 million in this area during the latest quarter, a 9% improvement year over year. At the same time, it also improved its margin (adjusted operating margin rose 300 basis points year over year last quarter to 16.3%, while fairly strong free cash flow allowed Astronics to strengthen its balance sheet.
Where Astronics shines is in the onboard communications infrastructure. The company controls about 90% of the in-cabin power systems market. Airlines are increasingly relying on customers bringing their own devices on board to offer in-flight entertainment options, which means Astronics’ power infrastructure is likely to become more popular over time. At the same time, its position in the defense sector will allow it to benefit from increases in spending by the US government.
Thanks to prudent financial management and a strong presence in several high-demand markets, Astronics has received an Average Buy rating from the analysts who have reviewed ATRO stock.
Astronics Corporation (ATRO) price chart for Thursday, October 9, 2025
Beware of the risks that remain
Both Innodata and Astronics carry risks that investors should consider. Innodata relies on demand for AI, which makes it vulnerable to a potential bubble, and has historically faced significant price fluctuations. Although Astronics has improved its financial position, it has a recent history of losses and could be severely impacted by a changing tariff landscape, supply chain issues, and similar concerns.
Despite these concerns, several signs suggest that INOD and ATRO could continue to aggressively outperform the market, making them worthy of investor attention for their potential with momentum heading toward the end of 2025.
Before you consider Innodata, you’ll need to hear this.
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