Here's Why Flex (FLEX) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Flex (FLEX)
Singapore-based Flex Ltd (formerly known as Flextronics International Ltd) has a diverse workforce across 30 countries and offers advanced manufacturing solutions and supply chain services throughout the product lifecycle development, including fulfillment, after-market support, and circular economy solutions.
FLEX boasts a Value Style Score of A and VGM Score of B, and holds a Zacks Rank #1 (Strong Buy) rating. Shares of Flex are trading at a forward earnings multiple of 10.3X, as well as a PEG Ratio of 0.8, a Price/Cash Flow ratio of 8X, and a Price/Sales ratio of 0.4X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.09 to $2.56 per share. FLEX has an average earnings surprise of 11%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding FLEX to their portfolios.
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Flex Ltd. (FLEX) : Free Stock Analysis Report
