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Flex (FLEX) Dips More Than Broader Markets: What You Should Know
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Flex (FLEX - Free Report) closed at $22.95 in the latest trading session, marking a -0.86% move from the prior day. This change lagged the S&P 500's 0.61% loss on the day. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.
Heading into today, shares of the electronics designer and manufacturer had gained 15.29% over the past month, outpacing the Computer and Technology sector's gain of 0.89% and the S&P 500's gain of 0.89% in that time.
Investors will be hoping for strength from Flex as it approaches its next earnings release. On that day, Flex is projected to report earnings of $0.60 per share, which would represent year-over-year growth of 20%. Meanwhile, our latest consensus estimate is calling for revenue of $7.48 billion, up 13.01% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.28 per share and revenue of $29.56 billion. These totals would mark changes of +16.33% and +13.52%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Flex. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Flex is currently a Zacks Rank #2 (Buy).
In terms of valuation, Flex is currently trading at a Forward P/E ratio of 10.15. This represents a discount compared to its industry's average Forward P/E of 16.97.
Also, we should mention that FLEX has a PEG ratio of 0.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 2.13 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 136, which puts it in the bottom 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow FLEX in the coming trading sessions, be sure to utilize Zacks.com.
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Flex (FLEX) Dips More Than Broader Markets: What You Should Know
Flex (FLEX - Free Report) closed at $22.95 in the latest trading session, marking a -0.86% move from the prior day. This change lagged the S&P 500's 0.61% loss on the day. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.
Heading into today, shares of the electronics designer and manufacturer had gained 15.29% over the past month, outpacing the Computer and Technology sector's gain of 0.89% and the S&P 500's gain of 0.89% in that time.
Investors will be hoping for strength from Flex as it approaches its next earnings release. On that day, Flex is projected to report earnings of $0.60 per share, which would represent year-over-year growth of 20%. Meanwhile, our latest consensus estimate is calling for revenue of $7.48 billion, up 13.01% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.28 per share and revenue of $29.56 billion. These totals would mark changes of +16.33% and +13.52%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Flex. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Flex is currently a Zacks Rank #2 (Buy).
In terms of valuation, Flex is currently trading at a Forward P/E ratio of 10.15. This represents a discount compared to its industry's average Forward P/E of 16.97.
Also, we should mention that FLEX has a PEG ratio of 0.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 2.13 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 136, which puts it in the bottom 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow FLEX in the coming trading sessions, be sure to utilize Zacks.com.