Key Takeaways CRWD's Falcon Flex ARR topped $1.35B in Q3 fiscal 2026, growing more than 200% year over year.Falcon Flex is driving larger deals, including multiple eight-figure contracts tied to SIEM and AI modules.Re-Flex activity surged, with several customers signing new deals at more than twice their original spend.CrowdStrike’s (CRWD) Falcon Flex subscription model is becoming a key driver of the company’s growth. In the third quarter of fiscal 2026, management said that more customers are choosing Fle ...

Industry Overview - The global electronics manufacturing services (EMS) industry is experiencing significant growth, driven by AI data centers, consumer electronics, IoT markets, 5G adoption, and automotive innovations, particularly electric vehicles. The EMS industry is projected to grow at a compound annual growth rate (CAGR) of 6.95% from 2025 to 2034 [1]. Company Analysis: Flex Ltd (FLEX) - Flex is well-positioned for multi-year growth, with its data center business identified as the primary growth engine, significantly influenced by AI infrastructure developments [3][4]. - The company has introduced a new AI infrastructure platform that enhances data center deployment speed by up to 30% and reduces execution risk [4]. - Flex's revenue from the data center segment is expected to rise at least 35% in the current fiscal year, benefiting from partnerships with leading technology companies like NVIDIA [5][10]. - Despite strong performance in the power and cloud markets, Flex anticipates a slight decline in Agility Solutions revenues due to softer demand in consumer devices and challenges from the Ukraine facility shutdown [7][8]. - The diversified portfolio of Flex continues to provide stability, with steady demand in the Health Solutions segment and growth in the Communications and enterprise segment [6]. Company Analysis: Jabil Inc (JBL) - Jabil's growth is driven by its expanding opportunities in healthcare, cloud, data center, and energy infrastructure, with its Intelligent Infrastructure segment emerging as a key growth driver [9]. - The Intelligent Infrastructure segment generated $3.9 billion in revenues in the first quarter of fiscal 2026, reflecting a 54% year-over-year increase and constituting 46% of total revenues [11]. - Jabil's cloud and data center business is projected to reach $9.8 billion for fiscal 2026, bolstered by new program wins and acquisitions [12]. - The healthcare segment is expected to remain a long-term growth catalyst, with strong visibility into program ramps across various medical technologies [13]. - Jabil's free cash flow was $1.3 billion in fiscal 2025, with expectations to maintain this level in fiscal 2026, allowing for share buybacks and continued investments [15]. Performance and Valuation - Over the past six months, FLEX and JBL have seen stock gains of 27.2% and 7.2%, respectively [16]. - FLEX is trading at a forward 12-month price/earnings ratio of 18.22X, while JBL is at 19.02X, indicating a slightly more favorable valuation for FLEX [17]. Earnings Estimates - Analysts have maintained FLEX's earnings estimates for the current fiscal year, with no revisions over the past 60 days [19]. - In contrast, JBL has seen a 4.5% upward revision in its earnings estimates during the same period [20]. Investment Outlook - FLEX currently holds a Zacks Rank of 3 (Hold), while JBL has a Zacks Rank of 2 (Buy), suggesting that JBL may present a better investment opportunity at this time [21].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Overview: Flex (FLEX) - Flex currently holds a Momentum Style Score of B, indicating a positive outlook based on price changes and earnings estimate revisions [3] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4] Performance Metrics - Over the past week, Flex shares have increased by 10.24%, while the Zacks Electronics - Miscellaneous Products industry remained flat [6] - In a longer timeframe, Flex's monthly price change is 12.92%, significantly outperforming the industry's 1.11% [6] - Over the past quarter, Flex shares rose by 9.57%, and over the last year, they have surged by 73.82%, compared to the S&P 500's increases of 3.47% and 13.15%, respectively [7] Trading Volume - Flex's average 20-day trading volume is 6,756,452 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the last two months, four earnings estimates for Flex have been revised upwards, raising the consensus estimate from $2.99 to $3.14 [10] - For the next fiscal year, four estimates have also moved higher, with no downward revisions noted [10] Conclusion - Given the positive performance metrics and earnings outlook, Flex is positioned as a strong momentum pick with a Zacks Rank of 2 (Buy) and a Momentum Score of B [12]

Core Insights - CrowdStrike's Falcon Flex model is rapidly growing and is integral to the company's expansion strategy, with Annual Recurring Revenue (ARR) from Falcon Flex customers reaching $1.35 billion in Q3 fiscal 2026, more than tripling from the previous year [1][9] Group 1: Falcon Flex Growth and Impact - Falcon Flex facilitates quicker adoption of new modules without lengthy contract processes, resulting in increased platform usage and strong re-Flex activity, with over 200 customers expanding their contracts in Q3 [2][9] - The model is driving growth in key product areas such as Next-Generation Security Information and Event Management, cloud security, identity security, and endpoint protection, as it reduces procurement friction and encourages multi-module adoption [3][9] - Falcon Flex is expected to remain a significant growth engine for CrowdStrike, contributing to increased ARR, larger deal sizes, and deeper platform utilization, with revenue estimates indicating a year-over-year increase of around 21% for fiscal 2026 and 2027 [4] Group 2: Competitive Landscape - Competitors like Palo Alto Networks and SentinelOne are also experiencing growth through platform expansion and AI innovations, with Palo Alto Networks reporting a 29% year-over-year increase in its Next-Gen Security ARR in Q1 fiscal 2026 [5] - SentinelOne achieved a 23% year-over-year growth in its ARR for Q3 fiscal 2026, driven by the adoption of its AI-first Singularity platform [6] Group 3: Financial Performance and Valuation - CrowdStrike's shares have increased by 9.6% over the past three months, contrasting with a 3.3% decline in the Zacks Security industry [7] - The company trades at a forward price-to-sales ratio of 21.56, significantly higher than the industry average of 11.83 [11] - The Zacks Consensus Estimate for CrowdStrike's fiscal 2026 earnings suggests a year-over-year decline of 5.6%, while fiscal 2027 earnings are expected to grow by 28.8%, with recent upward revisions in estimates [14]

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead ...

Group 1: Stock Performances - EchoStar Corporation (NASDAQ:SATS) gained 24.70% after Morgan Stanley upgraded the stock from Equal-Weight to Overweight and raised its price target from $82 to $110 [1] - Rocket Lab Corporation (NASDAQ:RKLB) rose 22.78% due to advancing a South Korean Earth-imaging mission into its next available launch window [2] - Pan American Silver Corp. (PAAS) increased 11.18% amid higher trading of precious metal companies, driven by investor optimism of a Fed rate cut [3] - Core & Main, Inc. (NYSE:CNM) gained 11.19% after reporting better-than-expected Q3 adjusted EPS, with multiple analysts raising their price forecast [3] - Flex Ltd. (NASDAQ:FLEX) increased 4.70% after Goldman Sachs maintained a Buy rating and raised its price forecast from $67 to $74 [4] Group 2: Acquisitions and Analyst Upgrades - Confluent, Inc. (NASDAQ:CFLT) increased 0.64% following IBM's agreement to acquire the company for $31 per share, with multiple analysts raising their price forecast [1][2] - Carvana Co. (NYSE:CVNA) rose 5.35% after announcing it will join the S&P 500 on December 22, 2025, along with multiple analysts raising their price forecast [2]

Core Insights - Flex Ltd. is experiencing robust business performance, primarily due to increasing demand in its data center and technology-driven sectors, while facing challenges in the automotive sector within its Reliability Solutions segment [1] Financial Performance - In the last reported quarter, revenues from the Reliability Solutions Group grew by 3% to $3 billion, representing 45% of net sales, driven by strong growth in Power and moderate gains in Health Solutions and Core Industrial, despite ongoing automotive sector weakness [2] - The adjusted operating margin for the Reliability Solutions division increased to 6.5%, up 105 basis points from the previous year, attributed to a favorable mix from the Power business, effective cost management, and disciplined execution [4] - Flex anticipates Reliability Solutions revenues to grow in the low- to mid-single digits, supported by strong power demand and accelerating growth in medical devices in fiscal 2026, although concerns remain regarding the automotive and renewables sectors [5] Market Dynamics - The durability of data center demand is crucial for Flex to continue offsetting pressures from the automotive sector, with revenues expected to rise at least 35% this year in the data center segment, providing significant mix benefits [6] - Flex's diversification across mission-critical industrial and healthcare verticals reduces reliance on any single end market, including automotive [6] Competitive Landscape - Jabil is positioned to benefit from AI-driven data center expansion and higher demand for advanced cooling solutions, but faces challenges in consumer-driven products and volatile automotive demand [7][8] - Celestica is capitalizing on AI investments driving demand for its data communications and processing infrastructure products, although it faces concerns in its ATS segment and customer concentration risks [9][10] Stock Performance and Valuation - Flex's shares have increased by 19.5% in the past month, outperforming the Electronics - Miscellaneous Products industry, which grew by 10.1% [11] - Flex trades at a forward 12-month price-to-earnings (P/E) ratio of 21.09, below the industry average of 25.53 [13] - The Zacks Consensus Estimate for Flex's earnings for fiscal 2026 has been revised upward over the past 60 days, indicating positive sentiment [14]

Group 1 - The article provides a market analysis focusing on Flex Ltd and Symbotic Inc, highlighting their performance and potential investment opportunities [1] - Flex Ltd is noted for its strong revenue growth, with a reported increase of 15% year-over-year, reaching $7.5 billion in the last quarter [1] - Symbotic Inc is recognized for its innovative automation solutions in supply chain management, which have led to a significant increase in demand, contributing to a 20% rise in their market share [1] Group 2 - The analysis emphasizes the growing trend of automation in the logistics sector, driven by companies like Symbotic Inc, which is reshaping operational efficiencies [1] - Flex Ltd's diversification strategy is highlighted as a key factor in mitigating risks and enhancing its competitive edge in the market [1] - The report suggests that both companies are well-positioned to capitalize on the increasing demand for advanced manufacturing and supply chain solutions [1]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Summary of Conference Call Company and Industry - **Company**: Flex - **Industry**: IT hardware, communications equipment, cloud services, data center solutions Key Points and Arguments Cloud and Data Center Growth - Flex's cloud business is projected to grow at approximately **35%** this year, with the data center segment growing at **50%** last year and expected to maintain strong growth [9][10] - The cloud portion of the business is larger but is expected to grow slightly below **35%** this year, while the power business is anticipated to grow above **35%** [9][10] Customer Diversity and Engagement - Flex has a diverse customer base categorized into three segments: hyperscalers, co-location providers (co-los), and silicon providers, with multiple engagements in each segment [15][16] - The company emphasizes its broad customer engagement, which drives growth through various products and services [15][16] Power Business Outlook - The power business is critical as compute densities increase, leading to higher power consumption and heat generation [18][19] - Innovations in power management include modular solutions that allow faster deployment of data centers, with power pods enabling setups **30%** faster than traditional methods [20][21] - Flex is focusing on 800-volt architectures and partnerships with companies like NVIDIA to enhance its power solutions [39][41] Rack Integration and Margin Improvement - The market for rack integration services is expanding, with Flex positioned to provide comprehensive solutions due to its scale and vertical integration capabilities [24][25] - The fastest-growing business segment is also the highest margin segment, driven by the EMS products and services strategy [27] Custom ASICs and AI Infrastructure - Flex is actively involved in manufacturing accelerator hardware and is well-positioned to meet the increasing complexity of custom ASICs [30] - The AI infrastructure platform represents Flex's strategy to address power, heat, and scale challenges in data centers, focusing on modular solutions [31][32] Financial Performance and Margin Structure - Flex has improved its operating margins from around **3%** post-COVID to approximately **6%**, with expectations for further growth driven by the data center business [35][36] - The company anticipates that the growth in the data center segment will continue to enhance overall margin structure [37] Capacity and Investment Strategy - Flex has invested in expanding its manufacturing footprint in Eastern Europe and North America to meet growing demand while avoiding over-investment [45][46] - The company is focused on organic investments in capital and footprint to ensure sustainable growth [46] Other Business Lines and Growth Opportunities - Flex is exploring growth in areas such as digital infrastructure (high-speed networking and satellite communications), automation in industrial settings, and healthcare devices [50][51] - The automotive sector presents long-term growth opportunities, particularly in software-defined vehicles and power platforms [52] Conclusion - Flex is strategically positioned to capitalize on growth opportunities across various sectors, leveraging its diverse customer base, innovative power solutions, and integrated service offerings to enhance margins and operational efficiency [62][65]