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TE Connectivity Rolls Out Latest Offering in BLS Portfolio

Switzerland-based connectivity and sensor solutions maker, TE Connectivity Ltd.TEL recently rolled out its latest standard portfolio of board-level shielding (BLS) that will help customers speed "time to market" and boost design efficiency.

The latest offering from the company will also help customers achieve weight savings and improve thermal conductivity as it includes aluminium material options. TE Connectivity affirmed that the latest solutions can be used across a gamut of applications ranging from game consoles and routers to wearable devices and the Internet of Things ("IoT") platform.

The company believes that the BLS portfolio will gain popularity among designers as they need to protect electronic components from electrical interference. BLS shielding solutions will eliminate the need of ordering custom shielding, which is usually time-consuming.

TE Connectivity is the market leader in the connectivity and sensor business, armed with a comprehensive portfolio. About 80% of TE Connectivity's revenues are driven by harsh environment applications. Over the past five years, the company's harsh business applications have experienced mid-single digit growth, driving top-line increase.

Quarter to date, TE Connectivity has gained 7.0%, slightly lower than the Zacks categorized Electronics-Miscellaneous Components industry's gain of 7.5%. Further, over the past couple of months, analysts have also turned bullish on the stock, as indicated by positive estimate revisions for the stock. Analysts have raised the Zacks Consensus Estimate for fiscal 2017 to $4.62 from $4.43 over the last 60 days, thanks to five upward revisions versus none downward.

Going forward, the company believes that steady traction of harsh-environment application as well as recovery of Communications and Industrial segments will provide ample opportunities for margin expansion. Overall, we believe that thriving end markets along with its overarching business model will continue to accelerate growth momentum of the Zacks Rank #2 (Buy) company.

Other Stocks to Consider

Other top-ranked stocks in the broader sector include Cohu, Inc. COHU , NCR Corporation NCR and Amkor Technology, Inc. AMKR . While Cohu sports a Zacks Rank #1 (Strong Buy), NCR Corp. and Amkor Technology hold the same Zacks Rank as TE Connectivity. You can see the complete list of today's Zacks #1 Rank stocks here .

Cohu has a striking earnings surprise history, with an average positive surprise of 121.2% over the trailing four quarters, beating estimates all through.

NCR also has an excellent earnings surprise history, with an average beat of 11% for the trailing four quarters, beating estimates all through.

Amkor Technology beat earnings estimates in three out of the trailing four quarters at an average of 43.1%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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