Knowles Corporation research snapshot
KN AI stock analysis currently reads Knowles Corporation as a specialized electronic components company with defensible positions in precision capacitors, RF filters, and medtech audio, serving defense, industrial, medtech, and communications end-markets. The analysis is not a certain price prediction. At the July 10, 2026 cutoff, the latest verified close used here was $34.47, market capitalization was about $2.95 billion, and the main question was whether the 60%+ YTD rally and roughly 49x TTM earnings multiple can be sustained by consistent earnings growth and margin expansion. This is informational research and not investment advice.
Current price
$34.47
Market cap
$2.95 billion
AI score
55 / 100
Rating
Niche technology business, premium valuation, strong momentum
Trend status
Above 50-day and 200-day moving averages, strong YTD momentum but well off 52-week high
Data cutoff (updated weekly)
July 10, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Knowles designs and manufactures precision capacitors, RF and microwave filters, balanced armature speakers, and medtech microphones. Revenue depends on defense, medtech, industrial, and communications end-market spending. | Medium |
| Moat | Knowles holds defensible positions in custom high-reliability capacitors (defense/aerospace grade), proprietary balanced armature speaker technology for hearing aids, and miniaturized MEMS microphones. Switching costs in defense and medtech are high due to qualification cycles. | Medium |
| Management | The leadership team has deep engineering and industry experience. Management has guided the company through the MEMS microphone commoditization cycle and shifted focus toward higher-margin precision devices and medtech audio. | Medium |
| Financial trend | TTM revenue was about $614 million and TTM net income was about $56 million, with a 9.1% net margin. The balance sheet is modestly leveraged at 19% debt-to-equity with $41 million cash. Levered free cash flow was about $46 million. | Medium |
| Valuation | The stock traded near 48.6x TTM earnings and 5.3x revenue at the cutoff. For an electronic components business with mid-single-digit revenue growth, this multiple embeds optimism about sustained margin expansion and growth acceleration. | Medium |
| Technical trend | KN rallied over 60% YTD and was trading near $34.47, below the 52-week high of $42.93. The stock was above its 50-day and 200-day moving averages with strong momentum through mid-2026. | Medium-high |
| Risk level | Key risks are customer concentration in defense and medtech, potential normalization of the strong YTD rally, cyclical end-market exposure in industrial and communications, component commoditization pressure in legacy products, and a premium multiple that leaves limited downside protection. | Medium |
| AI confidence | Medium confidence for the business profile, financial filings, and valuation math. Lower confidence because the 60%+ YTD rally introduces momentum uncertainty that financial data alone cannot resolve. | Medium data confidence |
| Investment certainty | Low-medium certainty. Knowles has defensible niche positions in defense and medtech components with long-term secular demand, but the premium near-50x earnings multiple with modest revenue growth creates a narrow path for attractive forward returns. | Low-medium |
KN AI stock forecast
The KN AI stock forecast uses scenario ranges around the $34.47 cutoff price. It does not claim that AI can predict a specific future price. The bullish case requires sustained defense and medtech spending, successful new product adoption, and margin expansion. The base case assumes steady revenue with moderate earnings growth. The bearish case assumes end-market normalization, multiple compression from the current elevated level, or revenue disappointment.
$48 to $56
More likely if defense and medtech end-market spending accelerates, Knowles gains share in high-reliability capacitors and RF filters for defense/aerospace, operating margins expand above 12%, and the market sustains a premium multiple near 40x forward EPS.
$28 to $36
More likely if revenue grows at a mid-single-digit pace, margins stabilize near current levels, and the stock trades near 25-30x forward earnings, reflecting a normal valuation for a specialized electronic components company.
$16 to $22
More likely if defense or medtech budgets face pressure, industrial and communications end-markets slow, component commoditization intensifies in legacy product lines, or investors re-rate KN toward a low-teens earnings multiple reflecting cyclical risk and modest growth.
KN AI technical analysis
KN AI technical analysis starts from the $34.47 July 10 close used for this July 12 static page. Public technical sources showed the stock above its 50-day and 200-day moving averages following a strong YTD rally from the $17-20 zone, though it had retreated from the 52-week high near $42.93. Because this page does not fetch request-time market data, traders should confirm levels on a live chart before acting.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $34.47 | Latest verified close used for this page as of the July 10, 2026 data cutoff. |
| Near support | $31 to $33 | Support planning zone around the 50-day moving average area, which has provided intermediate support during the YTD uptrend. |
| Secondary support | $26 to $28 | The next support zone near the 200-day moving average. A break below this area would weaken the intermediate technical setup. |
| Near resistance | $36 to $38 | The near-term resistance zone. A reclaim and hold above this level would signal continuation of the uptrend. |
| Secondary resistance | $42 to $43 | The 52-week high zone around $42.93. A breakout above the prior high would need volume confirmation and catalyst support. |
| 50-day moving average | About $32 | KN was trading above the 50-day MA around the cutoff, indicating the intermediate trend remained positive. |
| 200-day moving average | About $27 | The 200-day MA is a key long-term trend reference. KN was well above this level at the cutoff, consistent with the strong YTD uptrend. |
| Momentum | RSI near 55-60, strong YTD momentum | RSI was in neutral-to-moderate territory after retreating from overbought levels during the YTD rally. Momentum indicators were constructive but not extended. |
| Volume | About 1.08 million shares average | Average volume was about 1.08 million shares. Recent volume was below average, so breakouts and breakdowns should be confirmed by participation. |
| Volatility | Beta 1.59, daily range typical 2-4% | Position sizing should account for above-market volatility. The stock has a beta of 1.59. |
| Invalidation | Close below $31, then $27 | A close below the 50-day MA near $31 would weaken the intermediate setup. A break below the 200-day MA near $27 would challenge the longer-term uptrend. |
KN AI trading strategy
The KN AI trading strategy is a rules-based framework, not personalized advice. It combines filing-backed business evidence, technical confirmation, position sizing, and clear invalidation levels.
Look for KN to hold above the 50-day MA near $32 with improving volume. A move above $38 with defense and medtech sector strength would strengthen the continuation case. Monitor earnings reports for revenue growth and margin trajectory.
A failed breakout or daily close below the 50-day MA near $31 should reduce confidence in the setup.
If KN pulls back toward the 50-day MA area near $31-33, compare price stabilization with defense spending indicators, medtech demand trends, and quarterly order trends.
Do not average down solely because KN has niche technology assets. Define maximum loss and review revenue growth and margin trajectory first.
Track quarterly revenue growth by segment (Precision Devices vs Medtech & Specialty Audio), defense and medtech end-market indicators, gross margin trends, free cash flow generation, and order backlog trends.
Lower the rating if revenue growth decelerates consistently, gross margins contract, the book-to-bill ratio weakens, or the valuation multiple expands beyond 50x earnings without accelerating growth.
Investment research summary
Knowles turns precision engineering in capacitors, RF filters, balanced armature speakers, and miniaturized microphones into components sold to defense contractors, medtech OEMs, industrial equipment makers, and communications infrastructure customers.
The moat comes from high-reliability qualification cycles in defense and medtech (years-long certification processes that create switching costs), proprietary balanced armature speaker technology for hearing aids, and custom capacitor designs for mission-critical aerospace and defense applications.
The thesis can fail if defense or medtech budgets face sustained pressure, component commoditization erodes pricing in legacy MEMS microphone and capacitor lines, new entrant competition emerges in medtech audio, or the premium near-50x earnings multiple contracts without revenue growth acceleration.
The management team has guided Knowles through the MEMS microphone commoditization cycle and strategically shifted focus toward higher-margin precision devices and medtech audio. Capital allocation, M&A discipline, and organic investment returns remain key monitoring areas.
Knowles operates in the electronic components industry, benefiting from long-term defense modernization, medtech innovation (hearing health, wearable devices), industrial automation, and communications infrastructure buildout. However, segments of the components market face pricing pressure from commoditization.
At roughly 48.6x TTM earnings and 5.3x revenue with mid-single-digit revenue growth, the price embeds optimism about sustained margin expansion and growth acceleration. A fair entry would benefit from either a lower multiple or consistent evidence of double-digit earnings growth.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| KN price | $34.47 close on July 10, 2026 | Yahoo Finance quote snapshot | July 12, 2026 |
| Market capitalization | $2.95 billion, verified as $34.47 x 85.7M shares | financial_rigor.py market cap verification and Yahoo Finance | July 12, 2026 |
| Enterprise value | $3.26 billion | Yahoo Finance statistics | July 12, 2026 |
| TTM revenue | $614.1 million | Yahoo Finance financials | July 12, 2026 |
| TTM net income | $62.6 million ($56.1 million to common) | Yahoo Finance earnings data | July 12, 2026 |
| Diluted EPS (TTM) | $0.71 | Yahoo Finance key statistics | July 12, 2026 |
| Cash and cash equivalents | $41 million | Yahoo Finance balance sheet | July 12, 2026 |
| Debt-to-equity | 19.44% | Yahoo Finance financial highlights | July 12, 2026 |
| Revenue segments | Precision Devices (capacitors, RF filters for defense/industrial/medtech) and Medtech & Specialty Audio (hearing health, balanced armature speakers, specialty microphones) | Yahoo Finance company description and SEC filings | July 12, 2026 |
| Analyst consensus | Baird: Outperform, PT $39. Argus: BUY, PT $44-47. Average target $36.25 | Yahoo Finance analyst insights | July 12, 2026 |
| Valuation math | 48.55x TTM PE, 4.03x PB, 5.27x PS, 5.30x EV/Revenue, 26.59x EV/EBITDA from financial_rigor.py verification | financial_rigor.py valuation verification and Yahoo Finance | July 12, 2026 |
This KN AI stock analysis is an informational tool for research and education only. It is not investment advice, a recommendation, or a guarantee of future performance. Forecast ranges are scenarios based on available data as of July 10, 2026 and can be wrong.
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