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Flex (FLEX) Stock Jumps 4.1%: Will It Continue to Soar?
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Flex (FLEX - Free Report) shares ended the last trading session 4.1% higher at $150.78. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 58.2% gain over the past four weeks.
The increase in share price can be attributed to Flex’s strengthening financial performance, supported by clear structural tailwinds and disciplined operational execution.
Flex’s data center business is now its most powerful growth engine. AI is driving one of the biggest data center infrastructure build-outs, and Flex is well-positioned to benefit from this trend. Flex’s grid-to-chip approach is compelling as it integrates the product portfolio with advanced manufacturing capabilities and global scale.
The company has now consolidated the data center power and cloud businesses into a new segment, Cloud and Power Infrastructure or CPI. It was earlier reported within the industrial and CEC. In fiscal 2026, CPI revenue rose 38% to $6.6 billion, with Power growing 61% and Cloud & Cooling up 29%. Management expects demand to remain driven by AI deployment and has guided 65% to 75% CPI revenue growth for fiscal 2027.
Investors also remain interested in the upcoming spin-off. Earlier this year, the company announced its intention to spin off its Cloud and Power Infrastructure segment into a newly formed, independent, publicly traded company, marking a significant step in the company's broader strategic realignment.
This electronics designer and manufacturer is expected to post quarterly earnings of $0.93 per share in its upcoming report, which represents a year-over-year change of +29.2%. Revenues are expected to be $7.55 billion, up 14.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Flex, the consensus EPS estimate for the quarter has been revised 12.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on FLEX going forward to see if this recent jump can turn into more strength down the road.
Flex is a member of the Zacks Electronics - Miscellaneous Products industry. One other stock in the same industry, Daktronics (DAKT - Free Report) , finished the last trading session 0.3% higher at $20.68. DAKT has returned 4.9% over the past month.
For Daktronics, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.16. This represents a change of -11.1% from what the company reported a year ago. Daktronics currently has a Zacks Rank of #5 (Strong Sell).
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Flex (FLEX) Stock Jumps 4.1%: Will It Continue to Soar?
Flex (FLEX - Free Report) shares ended the last trading session 4.1% higher at $150.78. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 58.2% gain over the past four weeks.
The increase in share price can be attributed to Flex’s strengthening financial performance, supported by clear structural tailwinds and disciplined operational execution.
Flex’s data center business is now its most powerful growth engine. AI is driving one of the biggest data center infrastructure build-outs, and Flex is well-positioned to benefit from this trend. Flex’s grid-to-chip approach is compelling as it integrates the product portfolio with advanced manufacturing capabilities and global scale.
The company has now consolidated the data center power and cloud businesses into a new segment, Cloud and Power Infrastructure or CPI. It was earlier reported within the industrial and CEC. In fiscal 2026, CPI revenue rose 38% to $6.6 billion, with Power growing 61% and Cloud & Cooling up 29%. Management expects demand to remain driven by AI deployment and has guided 65% to 75% CPI revenue growth for fiscal 2027.
Investors also remain interested in the upcoming spin-off. Earlier this year, the company announced its intention to spin off its Cloud and Power Infrastructure segment into a newly formed, independent, publicly traded company, marking a significant step in the company's broader strategic realignment.
This electronics designer and manufacturer is expected to post quarterly earnings of $0.93 per share in its upcoming report, which represents a year-over-year change of +29.2%. Revenues are expected to be $7.55 billion, up 14.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Flex, the consensus EPS estimate for the quarter has been revised 12.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on FLEX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Flex is a member of the Zacks Electronics - Miscellaneous Products industry. One other stock in the same industry, Daktronics (DAKT - Free Report) , finished the last trading session 0.3% higher at $20.68. DAKT has returned 4.9% over the past month.
For Daktronics, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.16. This represents a change of -11.1% from what the company reported a year ago. Daktronics currently has a Zacks Rank of #5 (Strong Sell).