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Strength Seen in Flex (FLEX): Can Its 3.1% Jump Turn into More Strength?
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Flex (FLEX - Free Report) shares soared 3.1% in the last trading session to close at $147.61. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.8% gain over the past four weeks.
The uptrend was largely buoyed by its strategic transformation toward higher-value, technology-intensive businesses, positioning itself to capitalize on long-term structural growth opportunities. The company has streamlined its portfolio by exiting consumer-focused markets, divesting non-core assets and investing in advanced technologies while maintaining disciplined execution over the past seven years. The planned spin-off of its Cloud and Power Infrastructure (CPI) business is the next step in this strategy, enabling both entities to sharpen their strategic focus, optimize capital allocation and pursue their respective growth priorities more effectively. Post-spin, Flex intends to focus on advanced manufacturing opportunities across healthcare, robotics, warehouse automation and networking, strengthening its exposure to high-growth and technology-driven markets.
The company is also benefiting from the rapid expansion of AI-driven data center infrastructure. Its CPI business has built a differentiated end-to-end platform spanning power infrastructure, thermal management and compute integration, allowing customers to rely on a single partner rather than multiple vendors. Management believes the ongoing transition toward integrated power and cooling architectures, along with the adoption of solid-state transformers and 800-volt DC distribution, creates a significant long-term opportunity. These capabilities position Flex to benefit from the increasing complexity and power requirements of next-generation AI data centers.
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 remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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 part of the Zacks Electronics - Miscellaneous Products industry. Mistras (MG - Free Report) , another stock in the same industry, closed the last trading session 0.5% higher at $18.46. MG has returned 8% in the past month.
For Mistras, the consensus EPS estimate for the upcoming report has changed +1.4% over the past month to $0.25. This represents a change of +31.6% from what the company reported a year ago. Mistras currently has a Zacks Rank of #3 (Hold).
View the Zacks #1 Rank List
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Strength Seen in Flex (FLEX): Can Its 3.1% Jump Turn into More Strength?
Flex (FLEX - Free Report) shares soared 3.1% in the last trading session to close at $147.61. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.8% gain over the past four weeks.
The uptrend was largely buoyed by its strategic transformation toward higher-value, technology-intensive businesses, positioning itself to capitalize on long-term structural growth opportunities. The company has streamlined its portfolio by exiting consumer-focused markets, divesting non-core assets and investing in advanced technologies while maintaining disciplined execution over the past seven years. The planned spin-off of its Cloud and Power Infrastructure (CPI) business is the next step in this strategy, enabling both entities to sharpen their strategic focus, optimize capital allocation and pursue their respective growth priorities more effectively. Post-spin, Flex intends to focus on advanced manufacturing opportunities across healthcare, robotics, warehouse automation and networking, strengthening its exposure to high-growth and technology-driven markets.
The company is also benefiting from the rapid expansion of AI-driven data center infrastructure. Its CPI business has built a differentiated end-to-end platform spanning power infrastructure, thermal management and compute integration, allowing customers to rely on a single partner rather than multiple vendors. Management believes the ongoing transition toward integrated power and cooling architectures, along with the adoption of solid-state transformers and 800-volt DC distribution, creates a significant long-term opportunity. These capabilities position Flex to benefit from the increasing complexity and power requirements of next-generation AI data centers.
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 remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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 part of the Zacks Electronics - Miscellaneous Products industry. Mistras (MG - Free Report) , another stock in the same industry, closed the last trading session 0.5% higher at $18.46. MG has returned 8% in the past month.
For Mistras, the consensus EPS estimate for the upcoming report has changed +1.4% over the past month to $0.25. This represents a change of +31.6% from what the company reported a year ago. Mistras currently has a Zacks Rank of #3 (Hold).