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In a remarkable display of market confidence, Plexus Corp 's stock (NASDAQ:PLXS) has reached an all-time high, touching a price level of $132.48. This milestone underscores a period of significant growth for the company, which has seen its stock value surge by an impressive 45.76% over the past year. Investors have rallied behind Plexus, buoyed by the company's strong financial performance and strategic initiatives that promise to enhance its market position. The ascent to this record price level reflects the bullish sentiment surrounding Plexus's prospects and the broader industry's positive outlook.
In other recent news, Plexus Corp has announced a fresh $50M stock buyback plan, a strategic move demonstrating the company's financial confidence and commitment to enhancing shareholder value. The company has also reported robust financial performance in its fiscal third quarter of 2024, surpassing revenue expectations with a substantial $961 million and generating $114 million of free cash flow. The company's non-GAAP operating margin stood at 5.8%, and it projects a revenue growth of 9-12% for fiscal 2025. Despite lower than expected growth in the aerospace and defense sector due to supply constraints and customer design changes, Plexus Corp sees a mid-single-digit revenue increase in the fiscal fourth quarter. The company has also reported a strong demand in the aerospace and defense sector, while the industrial sector is experiencing some demand weakness. Among recent developments, Plexus Corp's funnel of qualified manufacturing opportunities has grown to $3.6 billion. The healthcare life sciences sector had a strong third quarter with $197 million in wins, and the company has secured over $500 million in healthcare life sciences contracts over the past four quarters. Lastly, the company discussed the impact of AI on power opportunities related to data centers, indicating potential growth in this area.
InvestingPro Insights
In light of Plexus Corp's recent stock performance, a closer look at the company's metrics and analyst insights from InvestingPro provides a clearer picture of its financial landscape. Plexus's market capitalization stands at a solid $3.6 billion, indicating a substantial presence in the market. Despite concerns about weak gross profit margins, which currently sit at 9.34%, the company has been successful in maintaining profitability over the last twelve months.
InvestingPro Tips highlight that Plexus is operating with a moderate level of debt, which is a crucial factor for investors monitoring financial stability. Additionally, analysts have revised their earnings upwards for the upcoming period, signaling confidence in the company's future performance. The company has also been trading near its 52-week high, with the stock price reaching 99.66% of this peak, and has experienced a large price uptick over the last six months.
It's important to note that Plexus does not pay a dividend to shareholders, which may be a consideration for income-focused investors. However, with a strong return over the last three months of 24.15% and a remarkable one-year price total return of 41.06%, the stock has demonstrated significant growth potential. For those interested in deeper analysis, InvestingPro offers additional tips on Plexus Corp to help investors make informed decisions.
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