In the latest trading session, Flex (FLEX) closed at $21.56, marking a +1.84% move from the previous day. This change outpaced the S&P 500’s 0.19% loss on the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 0.09%.
Prior to today’s trading, shares of the electronics designer and manufacturer had gained 7.96% over the past month. This has lagged the Computer and Technology sector’s gain of 8.91% and outpaced the S&P 500’s gain of 4.7% in that time.
Investors will be hoping for strength from Flex as it approaches its next earnings release. In that report, analysts expect Flex to post earnings of $0.60 per share. This would mark year-over-year growth of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.48 billion, up 13.01% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.28 per share and revenue of $29.56 billion. These totals would mark changes of +16.33% and +13.52%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Flex. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Flex is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Flex is holding a Forward P/E ratio of 9.29. For comparison, its industry has an average Forward P/E of 16.86, which means Flex is trading at a discount to the group.
Also, we should mention that FLEX has a PEG ratio of 0.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. FLEX’s industry had an average PEG ratio of 1.84 as of yesterday’s close.
The Electronics – Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 138, which puts it in the bottom 46% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow FLEX in the coming trading sessions, be sure to utilize Zacks.com.
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