FLEX Should I Buy
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Flex Ltd is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 to invest. The company's strong growth potential in the AI and power business, coupled with bullish analyst ratings and a positive technical outlook, make it an attractive investment opportunity.
The technical indicators for FLEX are bullish. The MACD is positive and expanding, the RSI is neutral but leaning towards bullish territory, and the moving averages (SMA_5 > SMA_20 > SMA_200) confirm an upward trend. The stock is trading above its pivot point, with resistance levels at 65.595 and 67.419, suggesting room for further price appreciation.
Flex's new modular solutions for AI infrastructure deployment, which enhance efficiency by 30%, position the company as a key player in the AI market.
Analysts have initiated coverage with bullish ratings and price targets of $70-$72, citing strong growth and margin potential.
The company's power business is seen as a critical enabler for AI, further boosting its growth outlook.
The company's latest financials show a decline in net income (-9.13% YoY) and EPS (-4.48% YoY), which could be a concern for some investors.
Post-market price change of -1.23% may indicate short-term volatility.
In Q3 2026, Flex reported a 7.66% YoY increase in revenue to $7.058 billion, demonstrating strong top-line growth. However, net income dropped by 9.13% YoY to $239 million, and EPS declined by 4.48% YoY to 0.64. Gross margin improved by 6.03% YoY to 9.49%, reflecting operational efficiency.
Analysts are bullish on FLEX. Baird initiated coverage with an Outperform rating and a $70 price target, highlighting growth and margin potential. Barclays raised its price target to $72, citing momentum in the company's data center portfolio.
