CTS (CTS) Narrative Overview: Key Factors Driving Valuation

Correction: Previous versions of this article published on September 21st and 23rd incorrectly attributed an internet and broadband expansion program to CTS Corporation (NYSE:CTS). The program was undertaken by CTS Telecom (which was acquired by MetroNet in 2021). CTS Corporation is a separate and unrelated entity and was not involved in the program. We apologize for any confusion.

CTS is coming off a mixed year for shareholders. The stock is down about 19% in 2024 and lost 12% over the past twelve months, showing a steady, if not dramatic, drift lower. Over the past five years, though, CTS has provided a nearly ninefold return, so anyone holding long term has seen considerable upside. The company is also growing both revenue and profits annually, though the pace is steady rather than rapid.

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CTS Investment Narrative Recap

The latest quarterly earnings report (July 2025) highlighted growth in both sales and earnings, reaffirming management’s confidence with a maintained full-year sales guidance of US$520 million to US$550 million. 

However, investors should be careful not to overlook the impact of continued transportation market weakness...

Read the full narrative on CTS (it's free!)

CTS is expected to reach $610.6 million in revenue and $78.8 million in earnings by 2028. This outlook relies on an annual revenue growth rate of 5.4% and a $14.6 million increase in earnings from the current $64.2 million.

Uncover how CTS' forecasts yield a $43.00 fair value, a 3% upside to its current price.

Exploring Other Perspectives

One member of the Simply Wall St Community valued CTS at US$43.00, leaving no range of estimates to compare. While opinions may be closely grouped, continued softness in transportation sales remains a critical factor influencing future performance and should be considered alongside these views.

Build Your Own CTS Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your CTS research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free CTS research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CTS' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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