A strong stock as of late has been Plexus (PLXS) . Shares have been marching higher, with the stock up 29.9% over the past month. The stock hit a new 52-week high of $211.84 in the previous session. Plexus has gained 41.7% since the start of the year compared to the 0.7% gain for the Zacks Computer and Technology sector and the 12.5% return for the Zacks Electronics - Manufacturing Services industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't m ...

Plexus (PLXS) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.The upward trend in estimate revisions for this electronic manufacturing services company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in ear ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock characte ...

Investors might want to bet on Plexus (PLXS) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power of a cha ...

Financial Performance - Net sales for the three months ended January 3, 2026, increased by $93.8 million, or 9.6%, compared to the same period in 2024, reaching $1,069.9 million[83]. - Operating income for the three months ended January 3, 2026, increased by $7.6 million, or 16.2%, to $54.5 million, with an operating margin of 5.1%[94]. - Net income for the three months ended January 3, 2026, rose by $3.9 million, or 10.5%, to $41.2 million, primarily due to increased operating income[99]. - Diluted earnings per share increased to $1.51 for the three months ended January 3, 2026, up from $1.34 in the prior year[100]. Segment Performance - In the AMER segment, net sales increased by $70.9 million, or 25.9%, driven by production ramps of new products and increased customer demand[86]. - In the APAC segment, net sales increased by $4.6 million, or 0.8%, with production ramps partially offset by customer disengagements[87]. - In the EMEA segment, net sales increased by $17.2 million, or 17.0%, attributed to production ramps of new products[88]. Profitability and Margins - Gross profit for the three months ended January 3, 2026, increased by $5.4 million, or 5.4%, with a gross margin of 9.9%, down 40 basis points from the previous year[93]. - Cost of sales increased by $88.3 million, or 10.1%, primarily due to higher material and component costs[91]. Cash Flow and Liquidity - Cash and cash equivalents as of January 3, 2026, were $249.4 million, down from $306.8 million as of September 27, 2025[106]. - Cash flows used in operating activities for the three months ended January 3, 2026, were $(15.4) million, compared to $53.6 million for the same period in 2024[108]. - Free Cash Flow (FCF) for the three months ended January 3, 2026, was $(50.6) million, a decrease of $77.7 million compared to $27.1 million for the same period in 2024[114]. - Cash flows used in investing activities increased to $35.1 million for the three months ended January 3, 2026, from $26.4 million in the same period in 2024[117]. - Cash flows used in financing activities were $8.0 million for the three months ended January 3, 2026, compared to $52.8 million for the same period in 2024[119]. Capital Expenditures and Investments - Capital expenditures for fiscal 2026 are estimated to be approximately $100.0 million to $120.0 million to support new program ramps and replace older equipment[118]. - As of January 3, 2026, 91% of cash and cash equivalents were held outside the U.S. by foreign subsidiaries[107]. - The company has a share repurchase program with $62.6 million of authority remaining under the 2026 Program as of January 3, 2026[121]. Currency and Interest Rate Risks - As of January 3, 2026, 10% of net sales and 17% of total costs were denominated in currencies other than the U.S. dollar[132]. - A 10.0% change in the value of the U.S. dollar relative to other transactional currencies would not have a material effect on the company's financial position, results of operations, or cash flows[132]. - The only material interest rate risk as of January 3, 2026, was associated with the Credit Facility, which has various interest rate options based on different benchmarks[134]. - The borrowing rate under the Credit Facility was SOFR plus 1.00% as of January 3, 2026[135]. - Borrowings under the 2018 NPA are based on a fixed interest rate, mitigating much of the company's interest rate risk[135]. - A 10.0% change in interest rates would not have a material effect on the company's financial position, results of operations, or cash flows[135].

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Market Performance - U.S. stocks closed lower on Friday, with the Nasdaq Composite dropping over 200 points during the session [1] - The S&P 500 experienced losses for the third consecutive session but recorded a gain of 1.4% for January [1] - The Dow Jones Industrial Average fell approximately 179 points, closing at 48,892.47, while the S&P 500 decreased by 0.43% to 6,939.03 and the Nasdaq Composite declined by 0.94% to 23,461.82 [1] - For January, the Dow added 1.7% and the Nasdaq recorded a monthly gain of 1% [1] Analyst Insights - Wall Street analysts frequently make new stock picks, but their track records in predicting market movements are often inconsistent [2] - There is significant variation in analyst ratings and price targets for individual stocks, leading to confusion among investors regarding which opinions to trust [2]

Group 1 - Benchmark raised the price target on Plexus (PLXS) to $220 from $195, maintaining a Buy rating on the shares [1] - The firm was surprised by the strength of the Q2 guidance and the upbeat tone around demand momentum for the remainder of FY26 and beyond [1]

Core Insights - Plexus Corp (PLXS) reported first-quarter fiscal 2026 adjusted earnings per share (EPS) of $1.78, surpassing the previous year's $1.73 and beating the Zacks Consensus Estimate of $1.77 per share [1][7] - Revenues reached $1.07 billion, reflecting a year-over-year increase of 9.6%, although it slightly missed the Zacks Consensus Estimate of $1.071 billion [1][7] - Management anticipates non-GAAP EPS to be in the range of $1.66-$1.81 and revenues between $1.05 billion and $1.09 billion for the upcoming quarter [1] Revenue Breakdown - Revenues from the Americas increased by 25.9% to $345 million, while revenues from EMEA and Asia-Pacific rose by 16.8% and 0.8%, respectively [2] - The company secured 22 manufacturing program wins, projected to contribute $283 million in annualized revenues once fully operational [2][7] Growth Outlook - Management indicated that program wins, market share gains, and increasing demand position the company to potentially exceed its revenue growth target of 9% to 12% for fiscal 2026 [3] - For the second quarter of fiscal 2026, revenues are expected to be between $1.11 billion and $1.15 billion, with non-GAAP operating margin anticipated to be between 5.6% and 6% [15] Segment Performance - Aerospace/Defense revenues grew by 11.3% year over year to $178 million, contributing 17% to total revenues [5] - Healthcare/Life Sciences revenues increased by 24.6% year over year to $466 million, accounting for 43% of total revenues [9] - Industrial sector revenues decreased by 3.6% year over year to $426 million, contributing 40% to total revenues [10] Financial Metrics - Gross profit on a GAAP basis rose by 5.4% year over year to $106.2 million, with a gross margin of 9.9%, down from 10.3% in the previous year [12] - Cash and cash equivalents stood at $248.8 million as of January 3, 2026, down from $306.5 million as of September 27, 2025 [13] - The company reported a negative free cash flow of $50.6 million after capital expenditures of $35.2 million [14]

Plexus (NasdaqGS:PLXS) Q1 2026 Earnings call January 29, 2026 08:30 AM ET Company ParticipantsOliver Mihm - EVP and COOPatrick Jermain - EVP and CFOShawn Harrison - Head of Investor RelationsTodd Kelsey - CEOConference Call ParticipantsAnja Soderstrom - Senior Equity Research AnalystDavid Williams - Equity Research AnalystJames Ricchiuti - AnalystMelissa Fairbanks - Vice President and Equity Research AnalystSteve Barger - AnalystOperatorI will now hand the call over to Shawn Harrison, Vice President of Inve ...