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

TE Connectivity (TEL) is highlighted as a top momentum stock, securing a Zacks #1 (Strong Buy) Rank and an 'A' Momentum Style Score, complemented by a 'B' VGM Score. The company's shares have gained 18.1% over the past four weeks, while the fiscal 2025 consensus earnings estimate has increased $0.29 to $8.54 per share, driven by six analyst upward revisions in the last 60 days. This strong fundamental and technical profile, coupled with an average earnings surprise of 4.9%, positions TEL as a compelling consideration for investors seeking high-momentum opportunities.

Analysis

TE Connectivity (TEL) is exhibiting strong positive momentum, underpinned by favorable analyst ratings and upward earnings revisions. The company has been assigned a Zacks Rank #1 (Strong Buy), indicating a high probability of near-term market outperformance. This is further substantiated by its Style Scores, receiving an 'A' for Momentum and a 'B' for its overall VGM (Value, Growth, Momentum) score. The stock's recent performance aligns with this rating, having appreciated 18.1% over the past four weeks. Fundamentally, the bullish sentiment is driven by analyst actions; six analysts have revised their fiscal 2025 earnings estimates upward within the last 60 days. This collective revision has increased the Zacks Consensus Estimate for fiscal 2025 by $0.29 to $8.54 per share. This positive outlook is supported by a consistent history of exceeding expectations, with the company reporting an average earnings surprise of +4.9%.

Key Decisions for Investors

• Given the stock's #1 'Strong Buy' rank, 'A' Momentum Score, and recent 18.1% price appreciation, momentum-oriented investors should consider TEL a prime candidate for their watchlists.
• The uniform upward revision in fiscal 2025 earnings estimates from six analysts suggests a strong underlying fundamental trend, which may warrant establishing or adding to a position.
• Investors should monitor the trend in analyst earnings estimates, as the current bullish thesis is heavily predicated on the continuation of these positive revisions and the company's ability to maintain its 4.9% average earnings surprise.