Knowles Corporation (KN) - Stock Analysis
Last updated: Jun 13, 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: ⢠Margin Stability ⢠Free Cash Flow ⢠Rich Valuation KN has stable gross margins and moderate leverage, but its rich valuation and inconsistent free cash flow limit upside despite reasonable liquidity. ŕ´
Price Behavior
Key Price Behavior Insights: ⢠Higher lows ⢠Support defended ⢠Near resistance Support Level: $37.0-$37.5 Resistance Level: $39.8 KN has trended higher over the last month with higher highs and lows, rebounded cleanly from around $37.3, and is now testing resistance near $39.8 despite a choppy, somewhat extended run.
Sentiment & News
Key News Insights: ⢠Price surge ⢠New fund stake ⢠Valuation stretch Knowles Corp has surged sharply with strong YTD gains and a new fund stake, but the rally has pushed valuation into overvalued territory, raising questions about upside from here.
AI Summary
KN has shifted into a momentum-driven rerating story after its Q1 beat, but with valuation already rich, free cash flow turning negative, and debt edging higher, the key takeaway is that upside now depends on management proving durable cash conversion rather than just delivering revenue and margin stability.
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% |