The consumer technology sector encompasses everything from everyday gadgets like smartphones, fitness apps, and connected home devices to innovative solutions for work and entertainment. As demand for cutting-edge devices and seamless connectivity grows, the sector offers fertile ground for investors seeking growth opportunities.
Within this landscape, hidden gems like Benchmark Electronics (BHE), M-tron Industries (MPTI), and Bel Fuse Inc. (BELFB) are strategically positioned to capitalize on emerging trends. These companies operate in niche yet high-growth areas such as advanced manufacturing, defense technology, and telecommunications.
According to Gartner, Inc. (IT), global IT spending is forecasted to reach approximately $5.61 trillion in 2025, reflecting an increase of 9.8% from last year. Of this, $810.23 billion is expected to be spent on devices, fueled by demand for computers, portable audio devices, and TVs.
Meanwhile, the consumer electronics market is projected to grow from $864.73 billion in 2025 to $1.47 trillion by 2032, exhibiting a CAGR of 7.8%. This growth underscores the sector’s resilience and its ability to adapt to technological innovation and evolving consumer needs.
In light of these encouraging trends, let us dive into the fundamentals of the three Technology – Electronics industry stocks, beginning with the third choice.
Stock #3: Benchmark Electronics, Inc. (BHE)
BHE provides comprehensive product design, engineering, technology, and manufacturing services across the Americas, Asia, and Europe. Serving industries like aerospace, defense, medical technologies, and advanced computing, the company offers solutions ranging from prototyping and precision machining to supply chain management and lifecycle support.
On January 14, 2025, the company paid its shareholders a quarterly dividend of $0.17 per share. BHE pays an annual dividend of $0.68, which translates to a dividend yield of 1.42% at the prevailing price levels. Its four-year average dividend yield is 2.34%.
In terms of the trailing-12-month Return on Common Equity, BHE’s 5.77% is 33.5% higher than the 4.32% industry average. Similarly, its 4.80% trailing-12-month ROTC is 57.2% higher than the industry average of 3.06%. Also, its trailing-12-month asset turnover ratio of 1.20x compares to the industry average of 0.61x.
For the fiscal third quarter, which ended on September 30, 2024, BHE’s sales and gross profit amounted to $657.75 million and $66.74 million, respectively. Its non-GAAP income from operations came in at $34.85 million, while it reported a non-GAAP net income of $20.71 million or $0.57 per share. In addition, the company’s free cash flow stood at $29.22 million, up 63.1% year-over-year. As of September 30, BHE’s cash and cash equivalents amounted to $324.42 million, indicating an increase of 16.9% from $277.39 million recorded on December 31, 2023
Street expects BHE’s EPS for the fiscal year (ended December 31, 2024) to increase 10.5% year-over-year to $2.25, while its revenue is estimated to be $2.66 billion. For the fiscal year 2025, both the EPS and revenue are forecasted to register a year-over-year growth of 8% and 3.8%, reaching $2.43 and $2.76 billion, respectively.
The stock has gained 88% over the past year and 14.9% over the past six months to close the last trading session at $48.08.
BHE’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
BHE has an A grade for Momentum, and it is ranked #11 out of 40 stocks in the Technology – Electronics industry.
Beyond what we have stated above, we also have given BHE grades for Growth, Value, Stability, Sentiment, and Quality. Get all the BHE’s ratings here.
Stock #2: M-tron Industries, Inc. (MPTI)
MPTI specializes in designing and manufacturing advanced frequency and spectrum control products like filters, oscillators, resonators, and power amplifiers. The company serves the aerospace, defense, space, and avionics industries, offering reliable, high-performance products for the most challenging environments and applications.
On January 6, 2025, MPTI secured a year-end order exceeding $10 million from a leading U.S. Department of Defense contractor for a major air defense program. The order includes advanced rugged lumped element RF filters and precision clock oscillators integral to the U.S. and allied nations’ air defense systems.
This long-term contract, with production extending beyond 2029, reinforces MPTI’s position as a leader in high-performance RF components, driving growth and innovation in defense systems.
In terms of the trailing-12-month MPTI’s EBIT and net income margins of 18.67% and 11.86% are 248.7% and 209% higher than their respective industry averages of 5.35% and 3.84%. Likewise, its 25.33% trailing-12-month ROCE compares favorably to the industry average of 4.32%.
MPTI’s revenues increased 21.4% year-over-year to $13.21 million in the fiscal third quarter that ended on September 30, 2024. The company’s adjusted EBITDA came in at $3.30 million, reflecting an increase of 41.3% from the prior-year quarter. Its operating income came in at $2.92 million, up 43.7% year-over-year. In addition, the company’s net income amounted to $2.27 million or $0.81 per share, reflecting an increase of 42.9% and 42.1% year-over-year, respectively.
The consensus EPS estimate of $0.50 for the fiscal fourth quarter (ended December 31, 2024) represents a significant growth year-over-year. The consensus revenue estimate of $12.60 million for the to-be-reported quarter indicates a 16.9% increase from the same period last year. The company has an impressive earnings surprise history, surpassing the consensus EPS estimates in three of the trailing four quarters.
The stock has gained 25.7% over the past year and 52.9% over the past six months to close the last trading session at $ 55.42.
It’s no surprise that MPTI has an overall rating of B, equating to a Buy in our POWR Ratings system. It has an A grade for Sentiment and Quality and a B for Growth and Momentum. Within the same industry, it is ranked #6.
Beyond what is stated above, we’ve also rated MPTI for Value and Stability. Get all MPTI ratings here.
Stock #1: Bel Fuse Inc. (BELFB)
BELFB designs, manufactures, markets, and sells cutting-edge products for networking, telecommunications, computing, industrial, data transmission, military, aerospace, transportation, and e-mobility sectors. Its segments include Connectivity Solutions; Power Solutions and Protection; and Magnetic Solutions.
On November 14, 2024, BELFB completed its acquisition of a majority stake in Enercon Technologies, Ltd. for $320 million upfront, based on a $400 million enterprise value. The deal was financed through $80 million in cash and $240 million in incremental borrowings, with an additional $10 million earnout potential. The company also plans to acquire the remaining 20% stake by early 2027, contingent on future EBITDA performance.
On October 29, the company’s board of directors declared regular quarterly dividends of $0.06 per share on the Company’s Class A common shares and $0.07 per share on the Company’s Class B common shares. These dividends are payable on January 31, 2025, to shareholders of record on January 15, 2025. BELFB pays an annual dividend of $ 0.28, which translates to a dividend yield of 0.35% at the current share price. Its four-year average dividend yield is 1.09%.
BELFB’s trailing-12-month EBITDA Margin of 16.60% is 59.8% higher than the industry average of 10.38%. In addition, its trailing-12-month net income margin and ROCE of 10.44% and 15.91% compare favorably to their respective industry averages of 3.84% and 4.32%.
During the third quarter that ended on September 30, 2024, BELFB’s net sales amounted to $123.64 million. The company’s adjusted EBITDA came in at $20.62 million, with a margin of 16.7%. In addition, its income from operations and net earnings for the quarter stood at $11.45 million and $8.08 million, respectively. As of September 30, BHE’s cash and cash equivalents amounted to $134.27 million, reflecting an increase of 50.2% from $89.37 million as of December 31, 2023.
Analysts expect BELFB’s revenue for the fiscal first quarter (ending March 2025) to increase by 1.7% from the year-ago value to $130.25 million, while its EPS is expected to come in at $0.91. In fiscal 2025, both revenue and EPS are expected to reach $551.34 million and $4.70, registering a year-over-year growth of 7.8% and 12.5%, respectively
Shares of BELFB have gained 28.9% over the past year and 15.2% over the past six months to close the last trading session at $79.99.
BELFB’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which equates to Buy in our proprietary rating system.
BELFB has an A grade for Sentiment and a B for Value, Momentum, and Quality. Out of 40 stocks in the Technology - Electronics industry, it is ranked #5. To access BELFB’s Growth and Stability ratings, click here.
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BHE shares were unchanged in premarket trading Tuesday. Year-to-date, BHE has gained 5.90%, versus a 1.96% rise in the benchmark S&P 500 index during the same period.
About the Author: Shweta Kumari
Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.
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