Strength Seen in Plexus (PLXS): Can Its 7.5% Jump Turn into More Strength?

Core Viewpoint - Plexus (PLXS) shares experienced a significant increase of 7.5%, closing at $172.35, driven by strong trading volume and broader strength in the electronics manufacturing services (EMS) sector related to AI and industrial demand [1][2]. Group 1: Company Performance - Plexus ended fiscal 2025 with 141 manufacturing wins, translating to $941 million in annualized revenues, and anticipates new program ramps across all segments to support revenue growth in fiscal 2026 [2]. - The company is projected to report quarterly earnings of $1.77 per share, reflecting a year-over-year increase of 2.3%, with expected revenues of $1.07 billion, marking a 9.7% rise from the previous year [3]. Group 2: Market Context - Elevated global geopolitical tensions have led to increased defense budgets, which bolster long-cycle demand for mission-critical electronics, an area where Plexus excels [3]. - The consensus EPS estimate for Plexus has remained stable over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [5]. Group 3: Industry Comparison - Plexus is part of the Zacks Electronics - Manufacturing Services industry, where Celestica (CLS) also operates, having closed 4.4% higher at $328.56, with a 3.9% return over the past month [6]. - Celestica's consensus EPS estimate has increased by 1.2% over the past month to $1.73, representing a substantial year-over-year change of 55.9% [7].