Knowles Corporation (KN) - Stock Analysis
Last updated: Apr 12, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Knowles Corporation demonstrated a strong Q2 2025 earnings beat on July 24 with 8% YoY revenue growth and 20% EPS growth, followed by a 27% stock rally. Management's positive Q3 guidance, robust cash flow, new product launches in high-demand sectors, and strong technical momentum above moving averages signal favorable near-term return potential.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Strong margins ⢠Solid liquidity ⢠High valuation KN combines robust margins, positive EBITDA and strong liquidity with modest leverage, but is offset by high market multiples, large intangibles, negative retained earnings and year-level cash-flow outflows.
Price Behavior
Key Price Behavior Insights: ⢠Higher highs ⢠Strong momentum ⢠Pullback risk Support Level: $25.78; $25.00â$26.70 Resistance Level: $28.68 (prior $28.48) The stock is in a clear short-term uptrendâlast month's SMA â $25.78 with the $28.68 close ~11% aboveâshowing strong buyer momentum but elevated overbought/pullback risk after a ~16.6% nine-day rally.
Sentiment & News
Key News Insights: ⢠New Phocas stake ⢠Q1 earnings catalyst ⢠No operational updates Phocas disclosed a new 43,927âshare (~$941k, ~0.05%) stake in Knowles ahead of its April 23 Q1 2026 earnings call, signaling modest thirdâparty buying and a nearâterm catalyst rather than any operational news.
AI Summary
Treat Knowles primarily as a manufacturingâscale execution bet: recent healthy margins and FCF depend on a successful specialtyâfilm capacity ramp and designâwin conversion to reach the ~$55â60M runârate, and given rich multiples any yield/volume shortfall or cashâflow setback could trigger rapid downside.
Description
Knowles Corporation manufactures acoustic components (microphones, balanced-armature speakers and related audio processors) and precision electronic parts, including high-performance capacitors and RF products, serving consumer electronics, medical, defense, automotive and industrial markets. The business is organized into Audio and Precision Devices segments that supply components for applications such as hearing health, true wireless earbuds, medical implants, satellite communications and radar, and sells primarily to OEMs, contract manufacturers and distributors. Founded in 1946 and headquartered in Itasca, Illinois, the company operates across Asia, North America, Europe and other international markets.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Sep 29 | Oct 6 | KN | Knowles Corporation | Knowles Corporation demonstrated a strong Q2 2025 earnings beat on July 24 with 8% YoY revenue growth and 20% EPS growth, followed by a 27% stock rally. Management's positive Q3 guidance, robust cash flow, new product launches in high-demand sectors, and strong technical momentum above moving averages signal favorable near-term return potential. | Closed | +4.9% |