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FLEX Stock Gains 27.2% YTD: Will the Momentum Continue?
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Flex (FLEX - Free Report) witnessed strong momentum this year, with its shares rallying 27.2% compared with the sub-industry’s rise of 14%.
The company has a diverse workforce across 30 countries and offers advanced manufacturing solutions and supply chain services throughout the product lifecycle development, including fulfillment, after-market support and circular economy solutions.
Flex serves companies of all sizes in various industries and end-markets including medical, automotive, industrial, home appliances, capital equipment, energy, telecom, networking, enterprise compute, wearables, connected living and mobile.
Image Source: Zacks Investment Research
Catalysts Behind the Price Surge
Let’s delve into the factors working in favor of this Zacks Rank #3 (Hold) stock.
The company is benefiting from the continued momentum in the company’s Agility Solutions and Reliability Solutions segments, backed by a strong customer backlog.
The company’s automotive sector benefits owing to increasing demand for electric vehicles and next-generation mobility. Also, the company’s healthcare segment is expected to benefit from strong demand for elective procedures and a continued ramp-up in large medical device programs.
The industrial business is gaining momentum from ongoing secular trends. Apart from that, the company invests heavily in research and development to minimize waste and prioritize sustainability as part of the company’s circular economy solutions
FLEX’s fourth-quarter fiscal 2023 adjusted earnings came in at 57 cents per share, beating the Zacks Consensus Estimate by 11.8%. The bottom line increased 9.6% year over year. Revenues increased 9% year over year to $7.5 billion, surpassing the consensus mark by 4.1%.
The Zacks Consensus Estimate for fiscal 2023 and 2024 revenues increased 2.1% and 3.4%, respectively, in the past 60 days. This reflects on analysts’ optimism regarding the company’s prospects.
Also, it has an impressive VGM Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.
Despite strong demand, the company’s performance is being affected by semiconductor shortages. The lack of panel availability continues to weigh on the Nextracker segment’s performance.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings per share (EPS) has increased 1.1% in the past 60 days to $2.72.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have surged 80.3% in the past year.
The Zacks Consensus Estimate for InterDigital’s 2023 EPS has increased 249% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 51% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 EPS has improved 9.3% in the past 60 days to $3.75.
Blackbaud’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 10.4%. Shares of the company have risen 22.7% in the past year.
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FLEX Stock Gains 27.2% YTD: Will the Momentum Continue?
Flex (FLEX - Free Report) witnessed strong momentum this year, with its shares rallying 27.2% compared with the sub-industry’s rise of 14%.
The company has a diverse workforce across 30 countries and offers advanced manufacturing solutions and supply chain services throughout the product lifecycle development, including fulfillment, after-market support and circular economy solutions.
Flex serves companies of all sizes in various industries and end-markets including medical, automotive, industrial, home appliances, capital equipment, energy, telecom, networking, enterprise compute, wearables, connected living and mobile.
Image Source: Zacks Investment Research
Catalysts Behind the Price Surge
Let’s delve into the factors working in favor of this Zacks Rank #3 (Hold) stock.
The company is benefiting from the continued momentum in the company’s Agility Solutions and Reliability Solutions segments, backed by a strong customer backlog.
The company’s automotive sector benefits owing to increasing demand for electric vehicles and next-generation mobility. Also, the company’s healthcare segment is expected to benefit from strong demand for elective procedures and a continued ramp-up in large medical device programs.
The industrial business is gaining momentum from ongoing secular trends. Apart from that, the company invests heavily in research and development to minimize waste and prioritize sustainability as part of the company’s circular economy solutions
FLEX’s fourth-quarter fiscal 2023 adjusted earnings came in at 57 cents per share, beating the Zacks Consensus Estimate by 11.8%. The bottom line increased 9.6% year over year. Revenues increased 9% year over year to $7.5 billion, surpassing the consensus mark by 4.1%.
The Zacks Consensus Estimate for fiscal 2023 and 2024 revenues increased 2.1% and 3.4%, respectively, in the past 60 days. This reflects on analysts’ optimism regarding the company’s prospects.
Also, it has an impressive VGM Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.
Despite strong demand, the company’s performance is being affected by semiconductor shortages. The lack of panel availability continues to weigh on the Nextracker segment’s performance.
Stocks to Consider
Some better-ranked stocks in the broader technology space are Badger Meter (BMI - Free Report) , InterDigital (IDCC - Free Report) and Blackbaud (BLKB - Free Report) . InterDigital sports a Zacks Rank #1 (Strong Buy), while Badger Meter and Blackbaud carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings per share (EPS) has increased 1.1% in the past 60 days to $2.72.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have surged 80.3% in the past year.
The Zacks Consensus Estimate for InterDigital’s 2023 EPS has increased 249% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 51% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 EPS has improved 9.3% in the past 60 days to $3.75.
Blackbaud’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 10.4%. Shares of the company have risen 22.7% in the past year.