Flex Ltd. (FLEX) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Flex has shown strong stock performance, with a 16.8% increase over the past month and a 30.8% rise since the beginning of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Electronics - Miscellaneous Products industry [1] Financial Performance - Flex reported an EPS of $0.64 in its last earnings report, exceeding the consensus estimate of $0.56, and beat the revenue estimate by 0.44% [2] - For the current fiscal year, Flex is projected to achieve earnings of $2.42 per share on revenues of $25.22 billion, reflecting a 12.56% increase in EPS but a 10.16% decrease in revenues. For the next fiscal year, earnings are expected to rise to $2.77 per share on $26.79 billion in revenues, indicating a year-over-year change of 14.3% in EPS and 6.22% in revenues [3] Valuation Metrics - Flex has a Value Score of A, a Growth Score of B, and a Momentum Score of D, resulting in a combined VGM Score of A [6] - The stock trades at 16.5 times the current fiscal year EPS estimates, below the peer industry average of 19.9 times. On a trailing cash flow basis, it trades at 12.2 times compared to the peer group's average of 10.3 times, with a PEG ratio of 2.24 [7] Zacks Rank - Flex holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts, indicating potential for further gains [8]