Flex FLEX shares soared 13.6% in the last trading session to close at $31.58. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.6% loss over the past four weeks.

The increase in share price can attributed to President Trump’s announcement of a 90-day pause on reciprocal tariffs, barring China. This led to skyrocketing indices and subsequent increases for most stocks including Flex.

Apart from that, the company specific factors are also driving the stock price performance. The company is experiencing solid momentum across its core segments—particularly data centers, medical devices, and consumer markets. In the third quarter, its data center business recorded an impressive 45% year-over-year growth, fueled by AI-powered cloud transformation. With a projected long-term CAGR of 20%, this segment is set to remain a key growth driver. Flex’s innovative power products and services are further enhancing customer satisfaction and positioning the company to capitalize on the industry-wide shift toward AI—from grid to chip and cloud to edge.

Strategic acquisitions have also supported the stock’s upward trajectory. Its recent strategic buyouts of JetCool Technologies and Crown Systems are aimed at expanding its footprint in high-growth areas like data centers, enterprise, and lifestyle. JetCool adds advanced liquid cooling capabilities, while Crown enhances critical power solutions and supports grid modernization. Together, these acquisitions enrich Flex’s data center portfolio, open new revenue streams, and promote sustainability through second-life products.

Recently, the company reinforced its commitment to healthcare innovation with the launch of a new state-of-the-art New Product Introduction (NPI) center near Boston. This facility will streamline the development of medical devices from prototyping to production, enabling faster and more efficient market entry for healthcare products.

Flex issued an optimistic outlook for fiscal 2025, raising its revenue guidance to $25.4–$25.8 billion from the earlier range of $24.9–$25.5 billion. The company also increased its adjusted EPS forecast to $2.57–$2.65, up from the previous estimate of $2.39–$2.51.

This electronics designer and manufacturer is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents a year-over-year change of +21.1%. Revenues are expected to be $6.23 billion, up 1% from the year-ago quarter.

Story Continues

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Flex, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on FLEX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Flex belongs to the Zacks Electronics - Miscellaneous Products industry. Another stock from the same industry, SiTime SITM, closed the last trading session 28.4% higher at $149.90. Over the past month, SITM has returned -25.3%.

SiTime's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.11. Compared to the company's year-ago EPS, this represents a change of +237.5%. SiTime currently boasts a Zacks Rank of #3 (Hold).

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

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