NYSEInformation TechnologySemiconductorsSnapshot 2026-08-31
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Create your account →Intact: The reason to own it still holds.
TE Connectivity grows sales about 15% yearly, driven by AI and electrification. Profit per share is rising, with a 17% EPS increase targeted. Orders are strong, up 25% year over year. The company trades cheaper than peers, offering value.
The recent 20% share price drop shows market doubts. Growth could slow below double digits. Rising debt and weaker orders could hurt profits and cash flow.
The price is about 21% below our fair value near $252. Analysts expect roughly 11% revenue growth. Our fair value is slightly below the Street median, reflecting cautious optimism.
Breaks if: Adjusted EPS falls below $2.83 in 2026-Q3
Breaks if: Orders fall below $5.3 billion in 2026-Q1
Breaks if: YoY revenue growth falls below 10% next year
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This is a long-term thesis on a company with a mix of strong growth and moderate risk. TEL is positioned as a durable compounder, focusing on double-digit sales and earnings growth, while navigating challenges in its sector.
The current valuation suggests that the market views TEL as cheap compared to its peers. However, there is an expectations gap, indicating that investors may not fully anticipate the fragility in earnings quality.
Management is on track with its goals of double-digit sales and earnings growth, supported by strong recent financial results. However, the earnings quality remains fragile, which could impact future performance.
The thesis hinges on the performance of sector bellwethers like NVDA, TSM, and AVGO. If these companies continue to perform well, it could provide a favorable environment for TEL. Conversely, any negative guidance from these peers could pose risks.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the thesis. However, margins are under pressure, which could hinder sales growth.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Over the next 1 to 3 years, TEL's growth trajectory will depend on both its execution and the broader tech sector's performance. Not investment advice.
