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TE Connectivity Soars to 52-Week High on Inorganic Growth - Analyst Blog

Shares of TE Connectivity Ltd.TEL soared to a new 52-week high of $73.09 on Tuesday, Mar 3, as it gained from its inorganic growth momentum. The closing price of the company on same day was $73.04 per share, representing a year-to-date return of around 16%.

Despite hitting a 52-week high, this Zacks Rank #3 (Hold) stock has plenty of upside left given the improving operational performance and growth strategies to expand in target markets. Further, the long-term expected earnings per share growth rate of TE Connectivity is presently 15%.

Growth Drivers

Of late, TE Connectivity has several deals and initiatives to fuel its growth and strengthen its top line. Last month, the company penned a definitive agreement to acquire AdvancedCath for $190 million cash (read more: TE Connectivity Eyes Inorganic Growth on AdvancedCath Buy ).

Also, leveraging its reach in the LTE Technology market, TE Connectivity created TDD-LTE technology in its FlexWave Prism and InterReach Fusion distributed antenna systems. This new technology marks a new spectrum option for wireless service providers, globally.

Moreover, in an effort to strengthen its position in the booming small-cell market, this month, TE Connectivity developed a vast range of innovative, digital distributed small cell systems and fiber connectivity solutions for small and medium sized buildings.

Also, TE Connectivity reported decent first-quarter fiscal 2015 results, with adjusted earnings per share of 98 cents surpassing the Zacks Consensus Estimate by 8.9% and the prior-year quarter figure by 19.5%. Continued strength in the transportation market acted as the primary growth driver. This apart, the company's appliances business, meant for the harsh environment, had higher margins compared to other businesses and this was also a positive.

Zacks Rank

TE Connectivity currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include AU Optronics Corp. AUO , ZAGG Inc ZAGG and Intricon Corp. IIN . All these stocks sport a Zacks Rank #1 (Strong Buy).

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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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