Flex Ltd. (FLEX) Hit a 52 Week High, Can the Run Continue?

Flex Ltd. (FLEX) recently hit a 52-week high, driven by a strong earnings track record, with the latest EPS of $0.73 beating estimates by $0.04. The company's positive outlook includes expected EPS growth of 9.43% this fiscal year on revenue of $25.92 billion, and 12.62% EPS growth the following year on revenue of $27.11 billion. Despite the recent surge, Flex's valuation metrics, including a Value Score of A and a Zacks Rank of #2 (Buy), suggest the stock may still have room to grow, particularly for value investors.

Analysis

Flex Ltd. (FLEX) has demonstrated robust stock performance, recently achieving a new 52-week high of $45.84, reflecting a 7.1% increase over the past month and a 17.9% gain year-to-date. This significantly outpaces the Zacks Computer and Technology sector's 1.6% gain and the Zacks Electronics - Miscellaneous Products industry's 19.5% decline. The outperformance is underpinned by a strong track record of earnings surprises, with the company exceeding consensus earnings estimates in each of the last four quarters. In its latest earnings report on May 7, 2025, Flex reported EPS of $0.73, surpassing the consensus estimate of $0.69, and also beat revenue expectations by 2.73%.Looking ahead, Flex is projected to achieve earnings of $2.90 per share on $25.92 billion in revenue for the current fiscal year, representing a 9.43% EPS growth and a 0.43% revenue increase. For the subsequent fiscal year, expectations are for $3.27 EPS (a 12.62% year-over-year increase) on $27.11 billion in revenue (a 4.59% year-over-year increase). Despite its recent price appreciation, valuation metrics suggest further potential. Flex holds a Zacks Value Score of A and a VGM Score of A, though its Momentum Score is D. The stock trades at 15.6 times current fiscal year EPS estimates, below the industry average of 18.7X, and its trailing cash flow multiple of 11.6X is in line with its peer group. A PEG ratio of 1.5 further supports its value proposition. Coupled with a Zacks Rank of #2 (Buy) driven by rising earnings estimates, Flex appears well-positioned for continued gains.

Key Decisions for Investors

• Given Flex's consistent earnings outperformance, strong forward-looking EPS growth (9.43% current FY, 12.62% next FY), and a Zacks Rank of #2 (Buy), investors may find the stock an attractive opportunity despite its recent 52-week high.
• Investors should note the favorable valuation metrics, including a Value Score of A, a P/E of 15.6X (below industry average), and a PEG ratio of 1.5, which suggest the stock could offer value even after its recent ascent.
• Monitor upcoming earnings reports to confirm the realization of projected revenue and EPS growth, and observe if the Momentum Score (currently D) improves, which could signal broader market conviction in the stock's trajectory.