Core Insights - TE Connectivity has been recognized on Fortune's World's Most Admired Companies list for the ninth consecutive year, reflecting its strong reputation in the global business community [1][2]. Company Performance - The CEO of TE Connectivity, Terrence Curtin, emphasized the importance of strong engineering capabilities and commitment to excellence in helping businesses compete and succeed in a rapidly advancing technological landscape [2]. - TE Connectivity collaborates with global customers to advance critical technologies, including data centers for artificial intelligence, energy networks, next-generation transportation, and industrial automation [2]. Industry Recognition - The World's Most Admired Companies ranking is based on a survey of approximately 15,000 senior executives, directors, and analysts, evaluating companies across nine key criteria, including talent attraction and innovation [3]. - Companies that rank in the top half of their industry are considered the "most admired," with the rankings including the 1,000 largest U.S. companies by revenue and non-U.S. companies with revenues of $10 billion or more [3].

Core Insights - ClearBridge Investments reported strong but volatile performance in US equities for Q4 2025, with the S&P 500 Index returning 2.7% and the Russell Midcap Growth Index declining 3.7% [1] - The ClearBridge Growth Strategy achieved its third consecutive quarter of outperformance through a balanced, highly active share approach, capturing early momentum while providing downside protection during rising volatility [1] - The strategy maintained a disciplined portfolio management and opportunistic capital allocation philosophy [1] Company Highlights - TE Connectivity Ltd. (NYSE:TEL) is highlighted as a key stock in the ClearBridge Growth Strategy, with a one-month return of 0.63% and a 52-week gain of 64.36% [2] - As of January 9, 2026, TE Connectivity's stock closed at $231.60 per share, with a market capitalization of $68.22 billion [2] - The outperformance of the ClearBridge Growth Strategy in Q4 was attributed to balanced portfolio construction and strong stock selection, with TE Connectivity contributing positively due to trends in its automotive and industrial sectors [3] Hedge Fund Interest - TE Connectivity is not among the 30 most popular stocks among hedge funds, but it saw an increase in hedge fund portfolios holding its stock, rising from 47 to 60 in the last quarter [4] - While TE Connectivity is recognized for its potential, the company is compared to certain AI stocks that are believed to offer greater upside potential and less downside risk [4]

Market Overview - Broader equity markets experienced a four-day winning streak as the likelihood of a Federal Reserve rate cut increased to approximately 89%, up from 67% a month ago [1] - The surge in the 10-year Treasury yield raised skepticism, impacting the short-term market rally following the release of key economic data [1] Economic Indicators - The core personal consumption expenditures price index for September showed an annual increase of 2.8%, slightly below the expected 2.9% [2] - U.S. consumer sentiment improved in December, with the Consumer Sentiment Index rising to 53.3 from 51 in November [2] Investment Strategy - Investors are advised to focus on "cash cow" stocks with high returns, emphasizing the importance of attractive efficiency ratios like return on equity (ROE) [2] - High ROE indicates effective reinvestment of cash at a high rate of return, helping to identify financially healthy companies [3][4] Screening Parameters - Stocks were shortlisted based on criteria including cash flow greater than $1 billion and ROE exceeding industry averages [5] - Additional metrics included price/cash flow lower than industry averages and return on assets (ROA) greater than industry averages [6] Stock Picks - Selected stocks with high ROE and strong cash flow include TE Connectivity (TEL), ZTO Express (ZTO), Pilgrim's Pride Corporation (PPC), Assurant, Inc. (AIZ), and Host Hotels & Resorts, Inc. (HST) [7] - These stocks also exhibit solid earnings surprises, strong growth outlooks, and favorable valuation metrics [7] Company Profiles - **TE Connectivity**: A global technology company focused on connectivity and sensor solutions across various industries, with a long-term earnings growth expectation of 12.3% and a trailing four-quarter earnings surprise of 6.5% [8][9] - **ZTO Express**: A leading express delivery service in China with a long-term earnings growth expectation of 1.7% and a Zacks Rank of 1 [10][11] - **Pilgrim's Pride**: Engaged in the production and distribution of chicken products, with a trailing four-quarter earnings surprise of 10.4% and a Zacks Rank of 2 [11][12] - **Assurant**: Provides risk management solutions in housing and lifestyle markets, with a trailing four-quarter earnings surprise of 22.7% and a Zacks Rank of 2 [12][13] - **Host Hotels**: A leading lodging REIT focused on luxury and upper-upscale hotels, with a trailing four-quarter earnings surprise of 11% and a Zacks Rank of 2 [14][15]

Company Overview - TE Connectivity plc (TEL) is based in Ballybrit, Ireland, and specializes in manufacturing and selling connectivity and sensor solutions, with a market cap of $61.4 billion [1] - The company serves various industries, including automotive, industrial equipment, communications, aerospace, defense, and medical [1] Market Position - TEL is classified as a "large-cap stock" due to its market cap exceeding $10 billion, highlighting its size and influence in the electronic components industry [2] - The company's strength lies in its diversified product portfolio of connectors and sensors, essential for power, data, and signal transmission [2] Stock Performance - TEL's shares are currently trading 2.3% below their 52-week high of $212.76, reached on July 29 [3] - Over the past three months, TEL's shares have increased by 26.3%, outperforming the Technology Select Sector SPDR Fund's (XLK) return of 11.1% [3] Long-term Growth - In the past 52 weeks, TEL's stock has surged by 45%, compared to XLK's 29.9% increase [4] - Year-to-date, TEL shares are up 45.4%, while XLK has risen by 13.9% [4] - TEL has consistently traded above its 200-day moving average since early May and above its 50-day moving average since late April, confirming a bullish trend [4] Recent Earnings - TEL's shares rose by 12% on July 23 following a strong Q3 earnings release [5] - The company reported a 30% year-over-year revenue increase in its industrial solutions division, contributing to an overall revenue growth of 13.9% to a record $4.5 billion, exceeding consensus estimates by 5.1% [5] - Adjusted EPS reached a record high of $2.27, marking an 18.8% increase from the previous year and 9.1% above Wall Street expectations [5] - The industrial solutions segment experienced a notable 390 basis points expansion in adjusted operating margin, enhancing profitability [5]

Core Viewpoint - TE Connectivity is well-positioned to benefit from the increasing demand for industrial automation and robotics, leading to a 'Buy' rating for the stock [1] Company Overview - TE Connectivity (NYSE: TEL) is an industrial technology manufacturer that specializes in connectivity and sensor solutions for transportation and industrial markets [1]