What Happened?
Shares of industrial components supplier NN (NASDAQ: NNBR) jumped 3.8% in the morning session after the company provided a positive update on its Aerospace and Defense business, including news that it obtained a Federal Firearms License (FFL) and secured a new weapons customer. The FFL, issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives, allowed NN to produce specific components for firearms. This license, along with its existing registration under the International Traffic in Arms Regulations (ITAR), strengthened the company's position to serve U.S. and allied defense clients.
After the initial pop the shares cooled down to $2.03, up 2.3% from previous close.
Is now the time to buy NN? Access our full analysis report here.
What Is The Market Telling Us
NN’s shares are extremely volatile and have had 55 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 20 days ago when the stock gained 2.7% on the news that the company presented its strategic vision at an investor conference, outlining an ambitious plan to grow revenue and boost profitability. During the presentation, the company detailed its goal to surpass $1 billion in revenue, supported by a strong new business pipeline that secured $182 million in wins since the second quarter of 2023. Management highlighted significant financial improvements, noting that adjusted gross margins climbed to 18.2% and adjusted EBITDA margins grew to 11.1% in the first six months of 2025. Furthermore, a focus on efficiency was expected to deliver $15 million in cost savings in 2025. Investors reacted positively to the combination of cost discipline, improved profitability, and a clear path for growth, particularly in the defense and electronics sectors.
NN is down 35.8% since the beginning of the year, and at $2.03 per share, it is trading 52.2% below its 52-week high of $4.25 from December 2024. Investors who bought $1,000 worth of NN’s shares 5 years ago would now be looking at an investment worth $322.22.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
