A strong stock as of late has been Flex (FLEX) . 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 ...

Core Insights - Celestica Inc. and Flex Ltd. are prominent players in the electronics manufacturing services (EMS) industry, serving various sectors including cloud computing, automotive, healthcare, and industrials [1][3] - Both companies are strategically positioned to capitalize on the growing demand for advanced manufacturing solutions driven by technologies such as AI, IoT, and 5G [2][7] Celestica Overview - Celestica has over 25 years of manufacturing experience and focuses on cloud-optimized data storage and networking solutions, benefiting from the generative AI boom [4] - The company is experiencing growth from its 800G network switches, essential for AI applications and data center operations, contributing to solid top-line growth [5] - Despite its growth, Celestica faces challenges with high research and development costs leading to margin contraction and stiff competition from major players like Foxconn and Jabil [6] Flex Overview - Flex operates in 30 countries and is well-positioned to meet the demands of emerging technologies, including IoT and autonomous vehicles [7] - The company reported a 50% growth in its cloud and data center power business in fiscal 2025, with expectations for continued strength into fiscal 2026 [8][9] - Flex's shares trade at a lower forward P/E ratio of 14.49 compared to Celestica's 22.72, making it more attractive from a valuation perspective [14] Financial Performance - Celestica's 2025 sales and EPS are expected to grow by 13.1% and 30.1%, respectively, with positive trends in EPS estimates over the past 60 days [11] - Flex's 2025 sales are projected to rise by 0.4% and EPS by 9.4%, with recent upward revisions in EPS estimates [12] - Over the past year, Celestica's stock has gained 119.8%, outperforming the industry growth of 51.7%, while Flex's stock has increased by 36.6% [13] Investment Considerations - Celestica shows strong revenue and EPS growth, while Flex's valuation metrics appear more attractive, leading to a Zacks Rank of 2 (Buy) for Flex compared to Celestica's 3 (Hold) [15][16] - Both companies anticipate improvements in sales and profits for 2025, but Flex is currently viewed as the better investment option based on Zacks Rank [16]

Core Insights - The article discusses the importance of a hybrid investing strategy, particularly the GARP (Growth at a Reasonable Price) approach, in navigating market uncertainties and achieving better investment outcomes [1][2]. GARP Strategy - GARP combines principles of both growth and value investing, focusing on stocks that are undervalued yet have sustainable growth potential [4]. - The PEG (Price/Earnings Growth) ratio is a key metric in GARP investing, helping to identify stocks with solid future potential by relating P/E ratios to future earnings growth rates [5][6]. Stock Analysis - Four stocks are highlighted as successful examples of the GARP strategy: Flex Ltd. (FLEX), CVS Health (CVS), Urban Outfitters (URBN), and Exelixis (EXEL) [3][11]. - FLEX has a historical growth rate of 35.1% and a Zacks Rank of 2, indicating strong potential [12]. - CVS Health has a long-term expected growth rate of 11.4% and also holds a Zacks Rank of 2 [14]. - Urban Outfitters has a 20% earnings growth rate over the last five years and a Zacks Rank of 1, making it a strong GARP candidate [15]. - Exelixis boasts a long-term expected earnings growth rate of 21.2% and a Zacks Rank of 2 [17]. Screening Criteria - The stocks selected for GARP investment must have a PEG ratio below the industry median, a solid earnings outlook, and a Zacks Rank of 1 or 2 [8][9]. - Additional criteria include a market capitalization greater than $1 billion and an average 20-day trading volume exceeding 50,000 [9][10].

Core Insights - Zacks Premium provides various tools to help investors make informed decisions and invest confidently in the stock market [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3][4][5][6][7] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to find attractive investment opportunities [4] Growth Score - The Growth Score evaluates a company's financial health and future potential by analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score identifies optimal times to invest based on stock price trends and earnings estimate changes, emphasizing the importance of following market trends [6] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive assessment of stocks to identify those with the best overall potential [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify the process of building a successful investment portfolio [8] Performance of Zacks Rank Stocks - Stocks rated 1 (Strong Buy) have achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering earnings outlook changes [11][12] Company Spotlight: Flex Ltd - Flex Ltd, based in Singapore, is rated 2 (Buy) on the Zacks Rank with a VGM Score of A, indicating strong potential for growth investors [13][14] Growth Potential of Flex Ltd - Flex Ltd is forecasted to have a year-over-year earnings growth of 9.8% for the current fiscal year, with upward revisions in earnings estimates and a solid earnings surprise average of 16.2% [14]

Key Takeaways FLEX joins MIT's INM as a founding member to drive sustainable, tech-led manufacturing transformation. The partnership includes factory observatory programs and a living lab at FLEX's Brazil site for MIT students. FLEX eyes growth in cloud, power, and automotive, despite macro and tariff pressures across key segments.Flex Ltd. (FLEX) recently joined forces with the Massachusetts Institute of Technology (“MIT”) on the Initiative for New Manufacturing (INM) — a cutting-edge Institute-wide proj ...

Core Insights - CrowdStrike's Falcon Flex subscription model is significantly driving its annual recurring revenue (ARR) growth, with a total deal value of $3.2 billion achieved within two years of its launch, reflecting a 31% sequential growth and over six times year-over-year growth [1][2][10] Group 1: Financial Performance - In the first quarter of fiscal 2026, CrowdStrike reported $194 million in net new ARR, primarily attributed to the Falcon Flex model, with 39 re-Flex transactions indicating increased customer renewals [3][10] - The company ended the first quarter with an ARR of $4.44 billion, marking a 22% increase year-over-year [2][10] Group 2: Customer Adoption and Growth - More than 820 customer accounts have adopted the Falcon Flex model, contributing to the robust growth in both customer adoption and deal value [2][10] - The increasing traction of Falcon Flex and the rise in re-Flex transactions position CrowdStrike to potentially reach its long-term goal of $10 billion in ARR [4] Group 3: Competitive Landscape - Competitors such as Palo Alto Networks and SentinelOne are also experiencing growth, with Palo Alto Networks achieving $5.09 billion in ARR, a 34% year-over-year increase, and SentinelOne reaching $948 million in ARR, a 24% year-over-year growth [5][6][7] Group 4: Valuation and Estimates - CrowdStrike's shares have increased by 33.9% year-to-date, outperforming the Zacks Security industry's growth of 19.4% [8] - The company trades at a forward price-to-sales ratio of 22.31, which is above the industry average of 14.47 [11] - The Zacks Consensus Estimate for CrowdStrike's fiscal 2026 earnings is $3.44 per share, indicating a 12.4% year-over-year decline, while the estimate for fiscal 2027 is $4.55 per share, reflecting a 32.2% increase [12]

Core Insights - Flex collaborates with MIT to advance manufacturing through AI, machine automation, and new system-level approaches [1][2] - The initiative aims to enhance resilience, productivity, and sustainability in manufacturing, contributing to a stronger industrial base in the U.S. and globally [2][3] Initiative Focus - The MIT Initiative for New Manufacturing emphasizes four core pillars: reimagining manufacturing technologies, elevating productivity and human experience, scaling new ventures and resilient supply chains, and transforming the global manufacturing base with sustainability and economic opportunity [5] - New labs will be established to develop advanced manufacturing tools and techniques, and students will gain hands-on experience through visits to Flex production sites [2][3] Collaboration Details - Flex will host MIT faculty, researchers, and Masters of Engineering students at its Sorocaba, Brazil site, working with the Flex Institute of Technology [2] - The collaboration aligns with a shared vision of creating resilient, human-centered, and technologically advanced manufacturing ecosystems [3] Company Overview - Flex operates in 30 countries, providing technology innovation, supply chain, and manufacturing solutions across diverse industries [4]

Group 1 - Flex LNG Ltd. shares will trade ex-dividend of USD 0.75 per share on June 5, 2025, for Oslo Stock Exchange and on June 6, 2025, for New York Stock Exchange [1][2] - The dividend payment is scheduled for approximately June 25, 2025, for Oslo Stock Exchange and June 20, 2025, for New York Stock Exchange [1][2] - Flex LNG operates a fleet of thirteen state-of-the-art LNG carriers, utilizing the latest generation two-stroke propulsion technology, which enhances fuel efficiency and reduces carbon footprint compared to older vessels [2]

Summary of Flex (FLEX) 2025 Conference Call Company Overview - **Company**: Flex (FLEX) - **Industry**: Electronics Manufacturing Services (EMS) - **Key Speakers**: CEO Revathi Advaithi, Rob Campbell (CEC Business Lead), Michelle Simmons (Head of IR) Core Business Segments - **Data Center Business**: - Unique positioning as a supplier of both IT integration and power products, which is rare in the industry [6][10] - Current business size is approximately $5 billion, with a growth rate of 35% projected for the year [10] - Previous year growth was 50% year-on-year [12] - Major drivers include the increasing demand for AI infrastructure, which is compute and power hungry [12][14] - **CEC (Communications Enterprise and Cloud)**: - Largest business unit within Flex, comprising networking, wireless, and satellite communications [27][28] - Engages with all four major US hyperscalers, providing a range of services from server boards to full rack integration [35][36] Financial Performance and Growth Drivers - **Revenue Growth**: - Data center business is expected to grow at 35% this year, following a 50% growth last year [10][12] - Long-term guidance suggests a conservative growth rate of 20% through the cycle [14] - **Impact of Tariffs**: - Transition towards North American manufacturing has accelerated due to tariffs and supply chain resiliency discussions [21][22] - Flex is focusing on complex products with long-term customer relationships to drive growth [22] Market Trends and Competitive Advantages - **AI Infrastructure**: - Significant growth potential in AI infrastructure build-out over the next decade, driving demand for data center services [12][13] - Power density and cooling solutions are becoming increasingly critical as data center requirements evolve [14][55] - **Power Business**: - Flex is positioned uniquely in the power space, providing solutions from grid to chip, which integrates both electrical and IT components [54][55] - Focus on complex products leads to higher margins, with the data center space being particularly lucrative [48] Margin Outlook - **Operating Margins**: - Guidance for 6% operating margin, with a focus on improving the mix of business units to enhance margins [42][46] - Agility business is currently producing higher margins than reliability, with expectations for continued improvement [46] Capital Allocation and Shareholder Returns - **M&A and Share Buybacks**: - Flex has balanced M&A investments with a share buyback strategy, aiming for continued shareholder returns [62] - The company plans to maintain this strategy moving forward, focusing on both organic growth and acquisitions [62] Additional Insights - **Consignment Business**: - The percentage of revenue from consignment has increased from 11% to 20%, indicating a growing trend [58] - Despite this, Flex has maintained strong growth rates in its data center business [58] - **Future Vision**: - Flex aims to be a technology leader in the data center space, addressing heat and power challenges with innovative solutions [60][61] - The company believes its margin journey has just begun, with significant potential for future growth [61]

Core Viewpoint - Flex has been recognized as the 2025 Sustainability Supplier of the Year by Ford Motor Company for its excellence in sustainable manufacturing and leadership in emissions transparency solutions [1][2]. Group 1: Recognition and Awards - Flex was awarded the title of 2025 Sustainability Supplier of the Year at Ford's annual Supplier Awards ceremony, highlighting its commitment to sustainability [2][6]. - The award reflects the successful collaboration between Flex and Ford in advancing sustainability within the automotive value chain [3]. Group 2: Sustainability Initiatives - Flex's notable contribution includes the development of the automotive industry's first product carbon footprint tracking pilot, which aims to address emissions tracking challenges across the value chain [3]. - The pilot is built on Catena-X standards and establishes a scalable framework for emissions traceability [3]. Group 3: Corporate Sustainability Strategy - Flex's sustainability strategy focuses on science-based environmental actions, ethical business practices, and community investment, aiming to create a cleaner and healthier world [4]. - The company emphasizes the importance of collaborative partnerships to enhance its sustainable value chain while delivering value to customers and stakeholders [4]. Group 4: Company Overview - Flex operates as a manufacturing partner across 30 countries, providing technology innovation and supply chain solutions to various industries [5].