Here's Why TE Connectivity (TEL) is a Strong Value Stock

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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

TE Connectivity (TEL)

TE Connectivity is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, including automotive, aerospace, defense, energy, and medical. With operations in over 130 countries, the company provides innovative products that enable connectivity across diverse sectors.

TEL is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 17.7X for the current fiscal year compared to the Electronics - Miscellaneous Components industry's P/E of 19.2X. Additionally, TEL has a PEG Ratio of 1.9 and a Price/Cash Flow ratio of 13.9X. Value investors should also note TEL's Price/Sales ratio of 2.7X.

A company's earnings performance is important for value investors as well. For fiscal 2025, five analysts revised their earnings estimate higher in the last 60 days for TEL, while the Zacks Consensus Estimate has increased $0.14 to $8.19 per share. TEL also holds an average earnings surprise of 3.3%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding TEL to their portfolios.

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TE Connectivity Ltd. (TEL) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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