TE Connectivity Plunges Below Key Averages Amid Market Challenges
TE Connectivity plc (TEL) holds a market capitalization of $44.2 billion and operates globally in the connectivity and sensor solutions sector. Established in 1941 and based in Ballybrit, Ireland, the company functions through three main segments: Transportation Solutions, Industrial Solutions, and Communications Solutions.
As a “large-cap stock,” TE Connectivity fits the profile of companies valued at over $10 billion. Being a significant player in the electronic components market, TEL specializes in manufacturing and designing products that ensure the power and data flow in countless consumer and industrial products.
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Recently, TEL experienced a pullback of 9.6% from its 52-week high of $159.98, reached on July 24, 2024. In context, TEL’s stock has dropped 3.5% over the last three months, which is a better performance compared to the broader Nasdaq Composite’s ($NASX) decline of 13% during the same period.
For the past six months, both TEL shares and the NASX index have shown slight gains. Furthermore, TEL has exhibited a 2.5% increase over the last 52 weeks, while NASX’s return stands at 8.8%.
Following a concerning trend, TEL has dropped below its 200-day moving average and its 50-day moving average since early March, signaling potential bearish activity.
On January 22, TEL shares rose by 4.6% after the company announced its Q1 earnings. In this report, TE Connectivity revealed net sales of $3.8 billion for its fiscal 2025 first quarter, with earnings per share (EPS) of $1.95, surpassing Wall Street’s expectations by 3.2%.
In comparison, TEL’s competitor, OSI Systems, Inc. (OSIS), has significantly outperformed it, with a remarkable growth of 28.8% in the last six months and a 39.5% increase over the past year.
Analysts maintain a moderately optimistic outlook for TEL. Fourteen analysts covering the stock have assigned it a consensus rating of “Moderate Buy,” with a mean price target of $172.21 representing a 19.1% upside from current market values.
On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are intended solely for informational purposes. For more details, visit the Barchart Disclosure Policy here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
