(KTCC) Key Tronic - Ratings and Ratios

Key Tronic Corporation is a contract manufacturing services provider to original equipment manufacturers globally, offering a comprehensive suite of services including electronic and mechanical engineering, assembly, sourcing, procurement, logistics, and new product testing. The companys capabilities span product design, printed circuit board assembly, tool making, precision plastic molding, and complex assembly, among others. With a presence in the US and international markets, Key Tronic leverages field sales personnel and distributors to promote its products and services. Founded in 1969, the company is headquartered in Spokane Valley, Washington, and maintains an online presence at https://www.keytronic.com.

Analyzing the provided data, Key Tronic Corporation operates within the Electronic Manufacturing Services sub-industry, a sector known for its competitive landscape and sensitivity to global demand fluctuations. The companys common stock is listed under the ticker symbol KTCC. Given its market capitalization of $29.60M USD and negative P/E ratio, it indicates that the company is currently not profitable, a common trait in some EMS companies due to thin margins and high operational costs.

From a technical standpoint, KTCCs stock price is currently at $3.05, above its 20-day and 50-day simple moving averages (SMA) of $2.52 and $2.53, respectively, indicating a short-term positive trend. However, the stock is below its 200-day SMA of $4.11, suggesting a longer-term downtrend. The Average True Range (ATR) of 0.17, representing 5.72% of the current price, indicates moderate volatility. The stocks 52-week range is between $2.26 and $6.03, showing significant price swings over the past year.

Combining technical and fundamental insights, a forecast for KTCC could involve monitoring its ability to break through resistance levels, potentially around the 200-day SMA of $4.11. A successful breakout could signal a reversal of the long-term downtrend, possibly driven by improved profitability or positive industry trends. Conversely, failure to break through this resistance, coupled with continued negative RoE of -3.46, might indicate further downside. Investors should closely watch industry demand, the companys operational efficiencies, and any strategic moves that could impact profitability. A potential trading strategy could involve buying on a breakout above $4.11 with a stop-loss around the recent low of $2.26, adjusting for ATR. However, given the lack of profitability and negative RoE, a cautious stance is warranted, emphasizing the need for a clear turnaround signal.