Fundamental comparison
Eltek (ELTK) posted a 20 % QoQ revenue jump in Q2 2025 and lifted its gross margin to 24 % – the first time the margin has breached the 20 % threshold in the past two years. In the PCB‑manufacturing space, the nearest peers (e.g., TTM Technologies (TTMI), Cognex (COG) and Molex (MOLX)) have been reporting modest 3‑8 % quarterly revenue growth and margins still stuck in the 17‑20 % range. ELTK’s margin expansion outpaces the sector’s average by roughly 4‑7 pp, indicating a successful cost‑efficiency drive (material‑mix optimization and higher‑value, multilayer board mix) that peers have yet to replicate. The combination of top‑line acceleration and expanding profitability puts ELTK on a relative valuation premium to the sector (EV/EBITDA now ~9.5× vs. the peer median of ~7.8×).
Technical & market dynamics
On the chart, ELTK has broken above its 50‑day SMA (≈ $12.8) and is testing the 200‑day SMA (~$13.4) with a bullish MACD crossover and rising RSI (now 62). Volume has been 1.5× the 30‑day average, suggesting strong buying interest. The broader PCB market is being buoyed by a global electronics resurgence—especially in EVs, data‑center servers and 5G infrastructure—yet supply‑chain constraints still cap upside for many manufacturers. ELTK’s superior margin profile gives it a buffer against raw‑material cost spikes, a key differentiator in a sector where peers are still vulnerable to copper and epoxy price volatility.
Trading implications
- Long‑bias: The Q2 beat and margin expansion, combined with a technically clean breakout, support a buy‑on‑dip around the current $13.10‑$13.30 range. A move above $13.45 (the 200‑day SMA) could trigger a short‑term rally toward $14.00–$14.50, aligning with the next resistance on the weekly chart.
- Risk: The primary downside is a macro‑tightening shock (e.g., higher rates or a slowdown in consumer electronics) that could compress demand and pressure margins. A break below the 50‑day SMA with a reversal in MACD would be a warning sign, suggesting a stop‑loss around $12.70.
Overall, ELTK’s Q2 performance outpaces its PCB peers on both growth and profitability, positioning it for a relative out‑performance in the coming months if the sector’s demand tailwinds hold. The current technical set‑up favors a moderate‑risk long position with upside potential toward $14.50, while keeping a tight stop near $12.70 to guard against sector‑wide pull‑backs.