We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Record Inflation, hawkish Fed policy, lingering supply chain issues and uncertainty prevailing over global macroeconomic conditions are roiling the U.S. and global equity markets.
In such a scenario, growth-rated stocks like Plexus with solid fundamental drivers and sound growth opportunities can be an attractive investment.
The stock is down 8.4% from its 52-week high level of $99.12 on Jan 5, 2022, making it more affordable for investors. In the past, the company’s shares have gained 0.6% compared with the industry’s decline of 2.1%.
Image Source: Zacks Investment Research
Plexus has an average earnings surprise of 6.7% in the trailing four quarters.
For fiscal 2022 and 2023, the company’s revenues estimates are pegged at $3.7 billion and $4.11 billion, suggesting year-over-year growth of 9.8% and 11.2%, respectively.
The Zacks Consensus Estimate of $4.44 per share for fiscal 2022 earnings rose 8.3% in the past 60 days. For fiscal 2023, the Zacks Consensus Estimate of $5.49 per share for fiscal 2022 earnings moved up 0.2% in the past 60 days.
Strong Fundamental Drivers
Neenah, WI. -based Plexus is a leading provider of electronic contract manufacturing services to original equipment manufacturers in various industries, including networking/ communications, health care/life sciences, industrial/ commercial and defense/security/aerospace.
Plexus’ performance is gaining from an improving demand environment and new program ramps amid global supply chain disruptions. Global expansion and revenue growth in the industrial segment are acting as tailwinds.
Plexus won 47 manufacturing contracts during the third fiscal quarter of 2022, worth $201 million in annualized revenues. Trailing four-quarter manufacturing wins totaled a record $1 billion in annualized revenues. In the last reported quarter, Industrial revenues were up 22% year over year to $454 million, contributing 46% to total revenues.
The company’s cost-cutting initiatives and strong growth in higher-margin engineering agreements are aiding it in strengthening its gross and operating margins over the long run. Plexus’ efforts to streamline its manufacturing facilities to optimize its operations bode well.
For fourth-quarter fiscal 2022, revenues are projected between $980 million and $1.02 billion.
However, supply chain woes, widespread component shortages and inflationary pressure remain major concerns for Plexus. These supply chain challenges limit the company’s ability to cater to robust demand in the near term.
Other Stocks to Consider
Some better-ranked stocks from the broader technology space are CadenceDesign Systems (CDNS - Free Report) , Badger Meter (BMI - Free Report) and Arista Networks (ANET - Free Report) . All stocks sport a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS are up 1.9% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 6% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 9.5% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $4.04 per share, increasing 9.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 30.5% in the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Here's Why Investors Need to Keep an Eye on Plexus (PLXS) Stock
Plexus (PLXS - Free Report) is one stock investors may want to keep an eye on in the current volatile market conditions, given its upside potential. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Record Inflation, hawkish Fed policy, lingering supply chain issues and uncertainty prevailing over global macroeconomic conditions are roiling the U.S. and global equity markets.
In such a scenario, growth-rated stocks like Plexus with solid fundamental drivers and sound growth opportunities can be an attractive investment.
The stock is down 8.4% from its 52-week high level of $99.12 on Jan 5, 2022, making it more affordable for investors. In the past, the company’s shares have gained 0.6% compared with the industry’s decline of 2.1%.
Image Source: Zacks Investment Research
Plexus has an average earnings surprise of 6.7% in the trailing four quarters.
For fiscal 2022 and 2023, the company’s revenues estimates are pegged at $3.7 billion and $4.11 billion, suggesting year-over-year growth of 9.8% and 11.2%, respectively.
The Zacks Consensus Estimate of $4.44 per share for fiscal 2022 earnings rose 8.3% in the past 60 days. For fiscal 2023, the Zacks Consensus Estimate of $5.49 per share for fiscal 2022 earnings moved up 0.2% in the past 60 days.
Strong Fundamental Drivers
Neenah, WI. -based Plexus is a leading provider of electronic contract manufacturing services to original equipment manufacturers in various industries, including networking/ communications, health care/life sciences, industrial/ commercial and defense/security/aerospace.
Plexus’ performance is gaining from an improving demand environment and new program ramps amid global supply chain disruptions. Global expansion and revenue growth in the industrial segment are acting as tailwinds.
Plexus won 47 manufacturing contracts during the third fiscal quarter of 2022, worth $201 million in annualized revenues. Trailing four-quarter manufacturing wins totaled a record $1 billion in annualized revenues. In the last reported quarter, Industrial revenues were up 22% year over year to $454 million, contributing 46% to total revenues.
The company’s cost-cutting initiatives and strong growth in higher-margin engineering agreements are aiding it in strengthening its gross and operating margins over the long run. Plexus’ efforts to streamline its manufacturing facilities to optimize its operations bode well.
For fourth-quarter fiscal 2022, revenues are projected between $980 million and $1.02 billion.
However, supply chain woes, widespread component shortages and inflationary pressure remain major concerns for Plexus. These supply chain challenges limit the company’s ability to cater to robust demand in the near term.
Other Stocks to Consider
Some better-ranked stocks from the broader technology space are Cadence Design Systems (CDNS - Free Report) , Badger Meter (BMI - Free Report) and Arista Networks (ANET - Free Report) . All stocks sport a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS are up 1.9% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 6% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 9.5% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $4.04 per share, increasing 9.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 30.5% in the past year.