Is CTS Corporation (NYSE:CTS) a buy in 2026?
Hold. CTS Corporation is a wait-and-watch at today's price, not a fresh buy.
A 130-year-old sensor maker pivoting from cars to medical and defense, but the easy money has been made above $64.
Where CTS is headed
CTS Corporation in 2028 looks nothing like the auto-pedal supplier most people remember. Transportation, which was 55% of revenue back in 2021, is on track to be under 35% by FY27 as the company pushes harder into medical ultrasound transducers, defense piezo components, and industrial flow sensors. The SyQwest acquisition (sonar and underwater acoustics for the US Navy) and the steady drumbeat of medical wins have shifted the mix toward higher-margin, longer-cycle, less cyclical revenue streams. Gross margin at 39% today should sit closer to 42-43% by FY27 if the mix shift plays out, with operating margin pushing toward 19%.
Read the full Compass Direction on CTS
The complete destination call, the overlooked angle, milestones, and bull, base, and bear price scenarios (around $66.27).
See the full CTS analysisGet calls like this, free
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Frequently asked questions
Is CTS Corporation (NYSE:CTS) a buy in 2026?
Hold. CTS Corporation is a wait-and-watch at today's price, not a fresh buy. A 130-year-old sensor maker pivoting from cars to medical and defense, but the easy money has been made above $64.
What is CTS's Compass Score?
CTS Corporation scores 82/100 on Alexandria's Compass, placing it in the "True North" tier. Scores blend eight factors and update weekly.
What is the price target for CTS?
Alexandria's full Compass Direction includes bull, base, and bear price scenarios with the valuation math behind each. Read the full breakdown on the CTS page.
Compass verdicts are AI-generated, forward-looking editorial research from publicly available data, not investment advice or a recommendation regarding any security. Scores and verdicts update as the data changes.