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Flex Ltd. FLEX stock has proved to be resilient amid a volatile market environment, with a 38.7% gain in the past year. Flex has also outperformed the Zacks Electronics - Miscellaneous Products industry’s decline of 37%. Also, the company outperformed the Zacks Computer and Technology sector and the S&P 500 composite’s growth of 18.3% and 18.2%, respectively. The stock has risen 19.6% in the past six months.
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It closed the last trading session at $38.58, down from its 52-week high of $45.10. Does this recent pullback indicate a buying opportunity? Let's analyze the pros and cons of FLEX and decide on the optimal strategy for your portfolio.
Growth Drivers
Flex is experiencing strong momentum across its data center, medical devices and consumer-related markets. The company's strategic programs in cloud, power and automotive businesses have contributed to its robust top-line growth in the fiscal third quarter. The initiatives are likely to positively impact Flex’s performance in the fiscal fourth quarter. Artificial intelligence (AI)-driven cloud transformation led to 45% year-over-year growth in the data center business in the fiscal third quarter. It continues to anticipate a long-term multi-year data center CAGR of 20%.
On Feb. 20, 2025, Flex announced a significant expansion of its U.S. manufacturing capacity with the launch of a new 400,000-square-foot facility in Dallas dedicated to power product manufacturing. This new facility strengthens Flex’s efficiency and production capabilities, particularly for its grid-to-chip data-center power infrastructure solutions, including power distribution units, power pods and low-voltage switchgear.
Flex Ltd. Price and Consensus
Flex Ltd. price-consensus-chart | Flex Ltd. Quote
Flex has consistently used acquisitions to expand its manufacturing footprint and enter new markets. Key acquisitions, including Bose facilities, Mirror Controls International (MCi), Alcatel-Lucent, and Nextracker, have strengthened its presence in audio, automotive, telecom and smart solar tracking. Smaller acquisitions have also bolstered its capabilities in medical devices, consumer electronics, household industrial and lifestyle markets.
Recent strategic moves include the May 2024 acquisition of FreeFlow, enhancing Flex’s presence in secondary markets and sustainability solutions. In November 2024, Flex acquired JetCool Technologies, further enhancing its data center and power solutions to help hyperscale and enterprise customers address growing challenges related to power, heat and scalability in the AI era. Also, Flex finalized its $325 million acquisition of Crown Technical Systems, expanding its power portfolio and increasing its presence in the U.S. data center and utility power markets.