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With a market cap of $46.1 billion, TE Connectivity plc (TEL) is a global leader in connectivity and sensor solutions, serving industries such as automotive, aerospace, energy, and telecommunications through its Transportation Solutions, Industrial Solutions, and Communication Solutions segments. Based in Ballybrit, Ireland, the company provides innovative products that enhance efficiency, safety, and performance across diverse applications worldwide.
Shares of the electronics maker have underperformed the broader market over the past 52 weeks. TEL stock has increased 9.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 22.1%. However, shares of TEL are up 9.2% on a YTD basis, outpacing SPX's nearly 4% gain.
In addition, TE Connectivity has lagged behind the Technology Select Sector SPDR Fund's (XLK) 19.2% return over the past 52 weeks.
Shares of TE Connectivity rose 4.6% on Jan. 22 due to its stronger-than-expected Q1 2025 adjusted EPS of $1.95, which beat the consensus estimate and grew 6% year over year. Despite net sales of $3.84 billion missing expectations, the Industrial Solutions segment posted strong 11% year-over-year reported growth, with Digital Data Networks soaring 48% and Aerospace, Defense & Marine rising 15%. Investors were also encouraged by TEL’s guidance for fiscal Q2 2025, projecting net sales of around $4 billion and adjusted EPS of $1.96, alongside sequential organic growth in its Transportation and Industrial Solutions segments.
For the fiscal year ending in September 2025, analysts expect TEL's EPS to grow 6.5% year-over-year to $8.05. The company's earnings surprise history is promising. It beat or met the consensus estimates in the last four quarters.
Among the 14 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings and six “Holds.”
On Feb. 12, J.P. Morgan analyst Samik Chatterjee maintained a “Hold" rating on TE Connectivity and set a price target of $169.
As of writing, TEL is trading below the mean price target of $172.21. The Street-high price target of $190 implies a potential upside of 21.8% from the current price levels.
