Why TE Connectivity (TEL) is a Top Growth Stock for the Long-Term

Zacks Research highlights TE Connectivity (TEL) as a compelling long-term growth stock, assigning it a #2 (Buy) rank and strong 'B' scores for both VGM (Value, Growth, Momentum) and Growth Style. This positive outlook is supported by a forecasted 13.8% year-over-year earnings growth for the current fiscal year, alongside seven analyst upgrades for fiscal 2025 earnings estimates over the past 60 days, pushing the Zacks Consensus Estimate up by $0.35 to $8.60 per share. TEL's consistent +4.9% average earnings surprise further reinforces its position as a top investment candidate within Zacks' analytical framework.

Analysis

TE Connectivity (TEL) has been identified as a strong growth prospect based on the Zacks investment research framework, securing a #2 (Buy) rating. This positive outlook is quantitatively supported by several key metrics, including a 'B' grade for its Growth Style Score and a forecast for 13.8% year-over-year earnings growth in the current fiscal year. Analyst sentiment appears to be strengthening, with seven upward revisions to fiscal 2025 earnings estimates over the last 60 days. These revisions have elevated the Zacks Consensus Estimate for fiscal 2025 by $0.35 to $8.60 per share. Furthermore, the company has demonstrated a consistent ability to exceed market expectations, evidenced by an average positive earnings surprise of 4.9%. The combination of a strong proprietary rank, positive estimate revisions, and a solid growth forecast positions TEL favorably within this analytical model.

Key Decisions for Investors

• Given the #2 (Buy) rating and forecasted 13.8% earnings growth, investors with a growth-oriented strategy should consider TEL a strong candidate for inclusion on their watch list or for further due diligence.
• The trend of positive earnings estimate revisions is a key driver of the stock's rating; therefore, investors should monitor future analyst revisions and the company's ability to maintain its +4.9% average earnings surprise in upcoming quarters.
• While the Zacks analysis is bullish, investors should note it is based on a specific model focused on short-term price movement driven by earnings estimate revisions, and should weigh this against their own long-term fundamental analysis of the company's diverse end markets, such as automotive and aerospace.