On Tuesday, Fox Advisors maintained its Overweight rating on Flextronics (NASDAQ:FLEX) stock, highlighting an opportunity for investors to buy following a 26% decline since February 2025. With a current market capitalization of $12.54 billion and trading at a P/E ratio of 12.9x, the firm suggests that this could be a favorable entry point for those prepared to stay invested throughout the remainder of the year.
Flextronics, a global electronics manufacturing services provider, has seen its shares fall significantly over the past couple of months. This decline has caught the attention of Fox Advisors, with analyst Steven Fox reiterating the firm’s positive stance on the stock. The Overweight rating aligns with the broader analyst consensus, as InvestingPro data shows analyst price targets ranging from $43 to $53, suggesting significant upside potential. The Overweight rating indicates that the firm believes Flextronics stock will outperform the average total return of stocks in the analyst’s industry coverage universe over the next 12 to 18 months.
The recommendation comes after a notable drop in stock value, with Flextronics shares experiencing a 26% decrease since February of this year. InvestingPro analysis reveals two key factors supporting this view: the stock is trading at a low P/E ratio relative to near-term earnings growth and offers a strong free cash flow yield. Despite this recent downturn, Fox Advisors sees the current stock price as a potential buying opportunity for long-term investors. The firm’s outlook suggests confidence in the company’s future performance and a belief that the stock is undervalued at its current trading price.
Investors monitoring Flextronics will note that the Overweight rating reaffirmation serves as a signal that, according to Fox Advisors, the company’s fundamentals may still be strong despite the recent price decline. The firm’s guidance implies that the stock could see a rebound as the year progresses, provided investors are willing to maintain their positions through potential volatility.
While Fox Advisors has expressed optimism about Flextronics’ prospects, it is important for investors to consider their own research and risk tolerance when making investment decisions. The stock market is subject to fluctuations, and past performance is not always indicative of future results. As with any investment, there is the potential for both gains and losses.
In other recent news, Flex has expanded its U.S. manufacturing operations with a new 400,000-square-foot facility in Dallas, enhancing its production capabilities for power infrastructure solutions. This strategic move aims to cater to the growing demand for reliable power infrastructure, driven by the adoption of artificial intelligence. The facility will focus on fabricating and assembling power pods, power distribution units, and low-voltage switchgear. In addition, Stifel analysts have initiated coverage on Flex with a Buy rating and a price target of $52.00, citing the company’s strategic acquisitions and expansion into growth areas like power and cooling. These acquisitions include JetCool and Crown Technical Systems, which are seen as diversifying Flex into attractive growth sectors. Flex reported a 45% year-over-year increase in its data center business, indicating strong execution in a competitive sector. Meanwhile, Flexsteel Industries reported better-than-expected second-quarter results, with adjusted earnings per share of $0.95, surpassing analyst estimates. The company also raised its fiscal 2025 revenue guidance, though it noted potential tariff risks due to its operations in Mexico.
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