Flex Stock Surges 39% in the Past Year: Will the Uptrend Continue?

Core Viewpoint - Flex Ltd. has demonstrated resilience in a volatile market, achieving a 38.7% gain over the past year, significantly outperforming the Zacks Electronics - Miscellaneous Products industry's decline of 37% [1] Group 1: Stock Performance - Flex's stock has risen 19.6% in the past six months, outperforming the S&P 500 composite's growth of 18.2% [1] - The stock closed at $38.58, down from its 52-week high of $45.10, raising questions about potential buying opportunities [2] Group 2: Growth Drivers - The company is experiencing strong momentum in data center, medical devices, and consumer-related markets, with a 45% year-over-year growth in the data center business driven by AI [3] - Flex anticipates a long-term compound annual growth rate (CAGR) of 20% for its data center business [3] Group 3: Strategic Expansion - On February 20, 2025, Flex announced a new 400,000-square-foot manufacturing facility in Dallas, enhancing its production capabilities for power products [4] - The company has made several key acquisitions, including Bose facilities and Nextracker, to expand its market presence in various sectors [5] - Recent acquisitions, such as FreeFlow and JetCool Technologies, are aimed at enhancing Flex's capabilities in sustainability and data center solutions [6] Group 4: Earnings Estimates - Analysts have raised earnings estimates for the current quarter by 6.2% and for the next year by 2.5% [7] - Flex's optimistic outlook includes projected revenues of $25.4-$25.8 billion and adjusted EPS of $2.57-$2.65 for fiscal 2025 [9] Group 5: Investment Outlook - Flex is rated as a Zacks Rank 2 (Buy), indicating strong fundamentals and potential for further appreciation [10]