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Additional Reading from MarketBeat Let the Good Times Roll: 2 Stocks Showing No Signs of SlowingWritten by Nathan Reiff. Published 10/9/2025. 
Key Points - Although the broader market has generated impressive returns on its own in recent months, Innodata and Astronics are two examples of companies that have vastly outperformed the S&P 500.
- Innodata's shift toward AI data services places it in an excellent position to benefit from surging and sustained demand in this industry.
- Astronics has a dominant position in in-flight connectivity, with the benefits of this high-demand space likely outweighing risks posed by tariffs and supply chains.
Whether buoyed by massive gains in the AI space or not, the S&P 500 has had a strong run in recent months, climbing nearly 33% since early April. Two fairly under-appreciated companies—Innodata Inc. (NASDAQ: INOD) and Astronics Corp. (NASDAQ: ATRO)—have far surpassed those gains, rising roughly 173% and 123%, respectively, over the same period. Although each of these stocks has experienced a tremendous rally, their fundamentals and price catalysts suggest they may have further upside. Below we examine both companies in detail and highlight the risks investors should consider. Expansion Into AI Provides Significant Momentum for Innodata Most traders don't realize there's a window of time each day when price movements become highly predictable — and I've built a strategy designed to capitalize on it. One user reportedly earned thousands in his first few months using this approach, though results always vary. The key is timing and consistency, not luck or leverage. Discover how to target daily trading windows for potential profit Data engineering and AI firm Innodata provides content and other services to media companies, legal organizations, and a range of other clients. Its recent shift toward the enterprise AI stack has carved out a specialized niche not occupied by larger AI firms. In the most recent quarter, revenue rose 79% year-over-year and adjusted EBITDA climbed 375%. The company also beat analyst expectations on the bottom line, reporting $0.20 in EPS versus an expected $0.11. Innodata is positioning itself as a go-to source for high-accuracy data services at a time when AI applications increasingly demand them. It has so far navigated the complex web of customer relationships in the tech sector, helping it retain clients and gain a competitive edge over some rivals. For example, competitor Scale AI has faced a backlash from some customers after its major partnership with Meta Platforms Inc. (NASDAQ: META). Given these growth drivers and the recent rally, investors may wonder whether Innodata still has room to run. Its valuation metrics are not extreme for the industry: a P/E of 70.5 and a P/S of 16.3. Four of five analysts covering INOD rate the shares a Buy. Dominance in the In-Flight Power Infrastructure Space Boosts Astronics' Prospects A maker of aerospace, defense and semiconductor technologies, Astronics endured a prolonged period of losses before recently turning around its financials and returning to profitability. Strong results from the company's aerospace segment have driven this improvement: Astronics reported record aerospace sales of $194 million for the latest quarter, a 9% year-over-year increase. It also improved margins—adjusted operating margin rose 300 basis points YOY to 16.3% in the last quarter—and solid free cash flow has helped strengthen the balance sheet. Astronics is particularly strong in in-flight connectivity infrastructure. The company controls roughly 90% of the market for in-cabin power systems. As airlines increasingly rely on passengers bringing their own devices for entertainment, demand for reliable in-cabin power should grow, supporting Astronics' position. Its footprint in the defense sector also positions the company to benefit from higher U.S. government spending. With prudent financial management and a strong presence in several high-demand markets, Astronics has earned a Moderate Buy rating from analysts covering ATRO shares. Beware Risks That Remain Both Innodata and Astronics carry risks investors should weigh. Innodata's fortunes are tied to AI demand, leaving it exposed if sentiment cools or an AI-led bubble deflates, and the stock has shown significant price volatility historically. Despite Astronics' improved financial position, it has a recent history of losses and remains vulnerable to shifting tariffs, supply-chain disruptions, and other industry headwinds. Despite these concerns, several indicators suggest INOD and ATRO could continue to outperform the market, making them worth watching as potential momentum plays heading into the end of 2025.
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