TTM Technologies: Enjoy the Soaring Flight with Caution

TTM Technologies experienced an impressive 48.8% increase in its stock price over the past six months, reaching a new 52-week high of $37.15 per share. This development was fueled by strong quarterly results, but the recent price surge might prompt investors to consider their next steps carefully. The question of whether TTM Technologies is currently a good investment remains open. Despite recent success, there are also warning signs. Over the past five years, TTM Technologies' revenue grew by only an average of 3.8% per year, which is considered below average in the business services sector. Furthermore, StockStory analysts emphasize that free cash flow is crucial. Despite growing revenue, TTM Technologies has been unable to improve its margins. These have dropped by 9.2 percentage points over the past five years, putting the company in a difficult position. The return on invested capital (ROIC) of TTM Technologies also raises concerns. With a five-year average of 4.7%, it is below the typical capital costs for companies in the services sector, indicating inefficient use of invested capital. While the market reflects optimism with a forward P/E ratio of 17.5, experts suggest exploring alternative investment opportunities, particularly since better prospects might be available in the digital advertising market. Nonetheless, investors remain cautious following Donald Trump's 2024 election victory and the subsequent market highs. Despite political uncertainties, some companies remain promising in the long term. Our recommendations for stocks that have risen by 183% over the past five years are available to these investors. Well-known brand names such as Nvidia showed a gain of 1,545% from 2020 to 2025, while lesser-known companies like Comfort Systems saw an increase of 782%.