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Flex Ltd. (FLEX) Hit a 52 Week High, Can the Run Continue?
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A strong stock as of late has been Flex (FLEX - Free Report) . Shares have been marching higher, with the stock up 7.1% over the past month. The stock hit a new 52-week high of $45.84 in the previous session. Flex has gained 17.9% since the start of the year compared to the 1.6% gain for the Zacks Computer and Technology sector and the -19.5% return for the Zacks Electronics - Miscellaneous Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 7, 2025, Flex reported EPS of $.73 versus consensus estimate of $.69 while it beat the consensus revenue estimate by 2.73%.
For the current fiscal year, Flex is expected to post earnings of $2.9 per share on $25.92 billion in revenues. This represents a 9.43% change in EPS on a 0.43% change in revenues. For the next fiscal year, the company is expected to earn $3.27 per share on $27.11 billion in revenues. This represents a year-over-year change of 12.62% and 4.59%, respectively.
Valuation Metrics
Though Flex has recently hit a 52-week high, what is next for Flex? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Flex has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 15.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 18.7X. On a trailing cash flow basis, the stock currently trades at 11.6X versus its peer group's average of 11.6X. Additionally, the stock has a PEG ratio of 1.5. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Flex an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Flex currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Flex passes the test. Thus, it seems as though Flex shares could still be poised for more gains ahead.
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Flex Ltd. (FLEX) Hit a 52 Week High, Can the Run Continue?
A strong stock as of late has been Flex (FLEX - Free Report) . Shares have been marching higher, with the stock up 7.1% over the past month. The stock hit a new 52-week high of $45.84 in the previous session. Flex has gained 17.9% since the start of the year compared to the 1.6% gain for the Zacks Computer and Technology sector and the -19.5% return for the Zacks Electronics - Miscellaneous Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 7, 2025, Flex reported EPS of $.73 versus consensus estimate of $.69 while it beat the consensus revenue estimate by 2.73%.
For the current fiscal year, Flex is expected to post earnings of $2.9 per share on $25.92 billion in revenues. This represents a 9.43% change in EPS on a 0.43% change in revenues. For the next fiscal year, the company is expected to earn $3.27 per share on $27.11 billion in revenues. This represents a year-over-year change of 12.62% and 4.59%, respectively.
Valuation Metrics
Though Flex has recently hit a 52-week high, what is next for Flex? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Flex has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 15.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 18.7X. On a trailing cash flow basis, the stock currently trades at 11.6X versus its peer group's average of 11.6X. Additionally, the stock has a PEG ratio of 1.5. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Flex an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Flex currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Flex passes the test. Thus, it seems as though Flex shares could still be poised for more gains ahead.