economy
This manufacturing stock made Josh Brown's list as it gets ready for a big move higher
Josh Brown and Sean Russo take a look at the latest addition to their Best Stocks in the Market list.
TL;DR
- Flex LTD (formerly Flextronics) has evolved from consumer electronics assembly to strategic manufacturing.
- The company designs, builds, and sources electronics for over a thousand companies, including major tech firms.
- Flex's business is divided into Flex Reliability Solutions (FRS) and Flex Agility Solutions, with FRS being the higher-value segment.
- FRS focuses on long-cycle, high-value programs in automotive, medical, industrial, and data center infrastructure.
- The AI boom and data center buildout are significant drivers for Flex's growth, particularly in its data center segment.
- Flex's data center manufacturing has higher margins and is becoming a larger share of revenue, boosting earnings.
- The stock has shown strong performance, with significant EPS growth and share count reduction, and has appreciated annually for the past decade except for 2018.
- Technical analysis indicates the stock is holding strong at highs, with intact trends and positive momentum indicators.