Group 1: Momentum Investing Overview - Momentum investing deviates from the traditional strategy of "buying low and selling high," focusing instead on "buying high and selling higher" to maximize returns in a shorter timeframe [1] - Identifying the right entry point for fast-moving stocks can be challenging, as these stocks may lose momentum if their valuations exceed future growth potential, leading to potential losses for investors [2] Group 2: Investment Strategy and Stock Selection - Investing in bargain stocks that have recently shown price momentum can be a safer approach, with tools like the Zacks Momentum Style Score aiding in identifying promising momentum stocks [3] - Flex (FLEX) is highlighted as a strong candidate for investment, having experienced a 12.9% price increase over the past four weeks, indicating growing investor interest [4] - FLEX has also gained 9.6% over the past 12 weeks, with a beta of 1.26, suggesting it moves 26% more than the market in either direction, demonstrating its strong momentum [5] Group 3: Performance Metrics and Valuation - FLEX holds a Momentum Score of B, indicating a favorable time to invest based on its momentum characteristics [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest and drive prices higher [7] - FLEX is currently trading at a Price-to-Sales ratio of 0.91, suggesting it is undervalued, as investors pay only 91 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides FLEX, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks based on their personal investing styles [9]

Group 1: Stock Performances - EchoStar Corporation (NASDAQ:SATS) gained 24.70% after Morgan Stanley upgraded the stock from Equal-Weight to Overweight and raised its price target from $82 to $110 [1] - Rocket Lab Corporation (NASDAQ:RKLB) rose 22.78% due to advancing a South Korean Earth-imaging mission into its next available launch window [2] - Pan American Silver Corp. (PAAS) increased 11.18% amid higher trading of precious metal companies, driven by investor optimism of a Fed rate cut [3] - Core & Main, Inc. (NYSE:CNM) gained 11.19% after reporting better-than-expected Q3 adjusted EPS, with multiple analysts raising their price forecast [3] - Flex Ltd. (NASDAQ:FLEX) increased 4.70% after Goldman Sachs maintained a Buy rating and raised its price forecast from $67 to $74 [4] Group 2: Acquisitions and Analyst Upgrades - Confluent, Inc. (NASDAQ:CFLT) increased 0.64% following IBM's agreement to acquire the company for $31 per share, with multiple analysts raising their price forecast [1][2] - Carvana Co. (NYSE:CVNA) rose 5.35% after announcing it will join the S&P 500 on December 22, 2025, along with multiple analysts raising their price forecast [2]

Core Insights - Flex Ltd. is experiencing robust business performance, primarily due to increasing demand in its data center and technology-driven sectors, while facing challenges in the automotive sector within its Reliability Solutions segment [1] Financial Performance - In the last reported quarter, revenues from the Reliability Solutions Group grew by 3% to $3 billion, representing 45% of net sales, driven by strong growth in Power and moderate gains in Health Solutions and Core Industrial, despite ongoing automotive sector weakness [2] - The adjusted operating margin for the Reliability Solutions division increased to 6.5%, up 105 basis points from the previous year, attributed to a favorable mix from the Power business, effective cost management, and disciplined execution [4] - Flex anticipates Reliability Solutions revenues to grow in the low- to mid-single digits, supported by strong power demand and accelerating growth in medical devices in fiscal 2026, although concerns remain regarding the automotive and renewables sectors [5] Market Dynamics - The durability of data center demand is crucial for Flex to continue offsetting pressures from the automotive sector, with revenues expected to rise at least 35% this year in the data center segment, providing significant mix benefits [6] - Flex's diversification across mission-critical industrial and healthcare verticals reduces reliance on any single end market, including automotive [6] Competitive Landscape - Jabil is positioned to benefit from AI-driven data center expansion and higher demand for advanced cooling solutions, but faces challenges in consumer-driven products and volatile automotive demand [7][8] - Celestica is capitalizing on AI investments driving demand for its data communications and processing infrastructure products, although it faces concerns in its ATS segment and customer concentration risks [9][10] Stock Performance and Valuation - Flex's shares have increased by 19.5% in the past month, outperforming the Electronics - Miscellaneous Products industry, which grew by 10.1% [11] - Flex trades at a forward 12-month price-to-earnings (P/E) ratio of 21.09, below the industry average of 25.53 [13] - The Zacks Consensus Estimate for Flex's earnings for fiscal 2026 has been revised upward over the past 60 days, indicating positive sentiment [14]

Group 1 - The article provides a market analysis focusing on Flex Ltd and Symbotic Inc, highlighting their performance and potential investment opportunities [1] - Flex Ltd is noted for its strong revenue growth, with a reported increase of 15% year-over-year, reaching $7.5 billion in the last quarter [1] - Symbotic Inc is recognized for its innovative automation solutions in supply chain management, which have led to a significant increase in demand, contributing to a 20% rise in their market share [1] Group 2 - The analysis emphasizes the growing trend of automation in the logistics sector, driven by companies like Symbotic Inc, which is reshaping operational efficiencies [1] - Flex Ltd's diversification strategy is highlighted as a key factor in mitigating risks and enhancing its competitive edge in the market [1] - The report suggests that both companies are well-positioned to capitalize on the increasing demand for advanced manufacturing and supply chain solutions [1]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Summary of Conference Call Company and Industry - **Company**: Flex - **Industry**: IT hardware, communications equipment, cloud services, data center solutions Key Points and Arguments Cloud and Data Center Growth - Flex's cloud business is projected to grow at approximately **35%** this year, with the data center segment growing at **50%** last year and expected to maintain strong growth [9][10] - The cloud portion of the business is larger but is expected to grow slightly below **35%** this year, while the power business is anticipated to grow above **35%** [9][10] Customer Diversity and Engagement - Flex has a diverse customer base categorized into three segments: hyperscalers, co-location providers (co-los), and silicon providers, with multiple engagements in each segment [15][16] - The company emphasizes its broad customer engagement, which drives growth through various products and services [15][16] Power Business Outlook - The power business is critical as compute densities increase, leading to higher power consumption and heat generation [18][19] - Innovations in power management include modular solutions that allow faster deployment of data centers, with power pods enabling setups **30%** faster than traditional methods [20][21] - Flex is focusing on 800-volt architectures and partnerships with companies like NVIDIA to enhance its power solutions [39][41] Rack Integration and Margin Improvement - The market for rack integration services is expanding, with Flex positioned to provide comprehensive solutions due to its scale and vertical integration capabilities [24][25] - The fastest-growing business segment is also the highest margin segment, driven by the EMS products and services strategy [27] Custom ASICs and AI Infrastructure - Flex is actively involved in manufacturing accelerator hardware and is well-positioned to meet the increasing complexity of custom ASICs [30] - The AI infrastructure platform represents Flex's strategy to address power, heat, and scale challenges in data centers, focusing on modular solutions [31][32] Financial Performance and Margin Structure - Flex has improved its operating margins from around **3%** post-COVID to approximately **6%**, with expectations for further growth driven by the data center business [35][36] - The company anticipates that the growth in the data center segment will continue to enhance overall margin structure [37] Capacity and Investment Strategy - Flex has invested in expanding its manufacturing footprint in Eastern Europe and North America to meet growing demand while avoiding over-investment [45][46] - The company is focused on organic investments in capital and footprint to ensure sustainable growth [46] Other Business Lines and Growth Opportunities - Flex is exploring growth in areas such as digital infrastructure (high-speed networking and satellite communications), automation in industrial settings, and healthcare devices [50][51] - The automotive sector presents long-term growth opportunities, particularly in software-defined vehicles and power platforms [52] Conclusion - Flex is strategically positioned to capitalize on growth opportunities across various sectors, leveraging its diverse customer base, innovative power solutions, and integrated service offerings to enhance margins and operational efficiency [62][65]

Core Insights - Flex Ltd. (FLEX) has experienced a significant stock surge of 79.9% over the past year, reaching a 52-week high of $70.37 before closing at $68.50, driven by strong execution and a shift towards higher-value, technology-intensive businesses [1][4][8] Price Performance - FLEX's performance outpaces the Zacks Electronics - Miscellaneous Products industry, the Zacks Computer and Technology sector, and the S&P 500 composite, which grew by 24.3%, 24.8%, and 14.6% respectively [4] Growth Drivers - Flex's revenue for the second quarter of fiscal 2026 increased by 4% year-over-year to $6.8 billion, with the data center business identified as the primary growth engine [5][6] - The company is leveraging AI to drive infrastructure build-outs, enhancing its product portfolio with advanced manufacturing capabilities [6][8] - A new AI infrastructure platform has been introduced, allowing data center operators to deploy systems up to 30% faster while reducing execution risk [8] Partnerships and Innovations - Flex has partnered with NVIDIA on next-gen 800-volt DC AI factories, improving energy efficiency and reliability [9] - A collaboration with LG Electronics aims to develop integrated modular cooling systems to address thermal challenges in AI-driven data centers [9] Financial Performance - Flex's non-GAAP gross margin expanded by 80 basis points to 9.3%, and non-GAAP operating margin increased by 55 basis points to 6% [13] - The company reported a record $1.1 billion in free cash flow for fiscal 2025 and $305 million in adjusted free cash flow for the second quarter of fiscal 2026 [14] - Flex has repurchased $1.3 billion in stock in fiscal 2025 and $297 million in the second quarter of fiscal 2026 [16] Guidance and Outlook - Flex revised its fiscal 2026 revenue guidance to $26.7-$27.3 billion, expecting an adjusted operating margin of 6.2% to 6.3% and adjusted EPS of $3.09 to $3.17 [17][18] - Despite challenges such as tariffs and unfavorable forex movements, the company maintains a positive growth outlook [18] Valuation - FLEX trades at a forward 12-month price-to-earnings (P/E) ratio of 20.35, which is below the industry average of 24.99 [20] - Compared to peers like Jabil, Sanmina, and Celestica, FLEX's valuation appears attractive [22] Investment Opportunity - With strong cash flow, disciplined execution, and expanding margins, Flex presents an appealing investment opportunity even after its substantial stock appreciation [23]

Company Overview - Flex Limited is a leading contract manufacturing company with approximately $26 billion in revenue [2] - The company operates in six business units across five major end markets: lifestyle and consumer devices, cloud enterprise communication (CEC), healthcare devices, automotive, and industrial [2] Market Segmentation - 75% of Flex's revenue comes from traditional contract manufacturing, while 25% is derived from AI data center utility, which is experiencing a growth rate of 35% [3] - The AI data center segment is identified as one of the highest growth areas for the company [3]

Summary of Flex Limited Conference Call Company Overview - **Company**: Flex Limited - **Industry**: Contract Manufacturing - **Revenue**: Approximately $26 billion - **Business Units**: Six, with participation in five major end markets: - Consumer (Lifestyle and Consumer Devices) - Cloud Enterprise Communication (CEC) - Healthcare (particularly devices) - Automotive - Industrial - **Global Presence**: Operates in 30 countries with around 100 manufacturing sites and approximately 140,000 employees [8][9] Core Business Insights - **Data Center and AI Infrastructure**: - 25% of revenue comes from AI data center utility space, growing at 35% - Revenue from this segment projected to reach $6.5 billion in the current fiscal year [9][17] - Focus on compute integration, cooling, and power solutions [17][18] - **Competitive Landscape**: - Flex competes with companies like Delta in embedded power and Eaton, Schneider in electrical distribution - The cooling market is fragmented with many small players [21][22] - **Power Pods**: - Integrated solutions that include power modules, infrastructure, and cooling systems, designed to improve installation speed and reduce labor costs [23][24] Recent Acquisitions - **Crown Technical Systems**: - Acquired to enhance presence in the fragmented U.S. utility market and expand power pod capabilities [25][27] - **JetCool**: - Acquired to strengthen liquid cooling portfolio, focusing on high-density cooling solutions for data centers [30][32] Financial Performance and Growth - **Operating Margin**: - Increased from 3% to 6% over the past seven years, with expectations for continued expansion driven by mix shift and productivity enhancements [15][39] - **Growth Areas**: - Data centers and utilities are identified as key growth sectors, with ongoing investments expected to yield significant returns [40][41] Market Trends and Challenges - **Regionalization Strategy**: - Flex is adapting its footprint to align with growth areas, particularly in North America and Europe, while reducing presence in less profitable regions [36][37] - **Supply Chain and Capacity**: - Capacity constraints are a constant consideration, with ongoing evaluations to meet growing demand [28][29] - **AI Investments**: - Anticipated growth in data center capacity driven by AI investments, with projections for significant infrastructure development in the coming years [41][42] Other Business Lines - **Healthcare**: - Strong performance in medical devices, particularly continuous glucose monitors [33] - **Industrial**: - Mixed performance with growth in infrastructure and energy sectors, while residential renewables have declined [34] - **Automotive**: - Clarity in platform investments is expected to drive growth, with Flex being platform agnostic [34] - **Consumer**: - Flat growth anticipated, with limited focus on this segment [35] Conclusion - Flex Limited is positioned as a leading contract manufacturer with a strong focus on data center and utility solutions, leveraging its global footprint and recent acquisitions to drive growth and enhance operational efficiency. The company is well-prepared to capitalize on emerging trends in AI and infrastructure development while maintaining a disciplined approach to portfolio management and margin expansion [45]

Core Insights - Flex Ltd. is experiencing growth momentum with increased AI investments, strong customer relationships, and disciplined financial management as it enters the second half of fiscal 2026 [1] - The company is focused on long-term value creation despite facing challenges such as tariff tensions and forex headwinds [1] Financial Performance - Flex reported a record $1.1 billion in free cash flow for fiscal 2025 and generated $305 million in adjusted free cash flow in the second quarter of fiscal 2026 [2] - The company aims for over 80% free cash flow conversion, supporting share repurchases, debt reduction, and continued investments [2] - In fiscal 2025, Flex repurchased $1.3 billion worth of stock, with $297 million repurchased in the second quarter of fiscal 2026 [2] Business Segments and Growth Outlook - Flex is advancing its data center portfolio with next-generation AI power, compute, and cooling solutions, showing solid growth in Medical Devices, Optical, and Satcom [3] - The company expects data center revenues to grow at least 35% this year, with balanced growth projected for fiscal 2026 across its segments [4] - The Reliability segment is expected to deliver low- to mid-single-digit growth, while the Agility segment is projected to grow at a mid- to high-single-digit rate [4] Competitive Landscape - Flex faces intense competition from EMS peers like Jabil Inc. and Sanmina Corporation, which may impact contract wins and revenue growth [4] - Jabil is diversifying its business and expanding in healthcare and cloud sectors, while Sanmina's diverse market presence strengthens its resilience [5][6] Market Performance and Valuation - Flex shares have gained 78% over the past year, outperforming the Electronics - Miscellaneous Products industry, which grew by 24.7% [9] - The company trades at a forward 12-month price-to-earnings (P/E) ratio of 22.04, below the industry's 24.76 [10] - The Zacks Consensus Estimate for Flex's earnings for fiscal 2026 has been revised upward over the past 60 days [11]