Flex(US:FLEX) ZACKSยท2025-09-22 14:31Core Insights - Flex Ltd. has experienced a significant stock surge of 75% over the past year, outperforming the Zacks Electronics - Miscellaneous Products industry, the Zacks Computer and Technology sector, and the S&P 500 composite, which grew by 7.5%, 31.2%, and 18.8% respectively [1] - The company has also outperformed several peers, with its stock closing at $58.65, near its 52-week high of $58.8 [2] Company Overview - Flex is based in Singapore and operates with a diverse workforce across 30 countries, providing advanced manufacturing solutions and a wide array of services including design, engineering, and circular economy solutions [3] - The company has transformed into an end-to-end solutions provider, offering services from design to supply chain integration across various products, including electronics and athletic footwear [4] Competitive Advantages - Flex's global manufacturing scale is a key competitive advantage, operating over 49 million square feet worldwide, with significant facilities in the U.S. and Mexico [5] - The company utilizes AI-enabled systems and advanced automation to enhance speed, flexibility, and resilience, particularly in regulated markets such as automotive, healthcare, and industrials, which account for approximately 75% of total revenues [5] Growth Strategy - Flex is aggressively expanding into the high-growth data center market, targeting $6.5 billion in revenue with at least 35% growth, which will represent 25% of total sales [8][11] - Recent acquisitions, including JetCool and Crown Systems, are aimed at enhancing its capabilities in liquid cooling and power solutions for data centers [12] Financial Performance - Flex's shares are currently trading at a price/earnings ratio of 20.62, which is lower than the industry average of 25.36, indicating a potential valuation opportunity [15][18] - The company has raised its fiscal 2026 outlook, driven by strong data center momentum and expanded power capacity in Europe [19]