TE Connectivity (TEL)
NYSEInformation TechnologySemiconductorsSnapshot 2026-09-04
$208.65-0.36%
Close 2026-09-04 · 1-day change
NYSEInformation TechnologySemiconductorsSnapshot 2026-09-04
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.
TEL represents a durable compounder with a focus on consistent sales and earnings growth. The current thesis is intact, supported by strong recent financial performance and management's commitment to growth targets.
The market currently prices TEL as cheap compared to its peers, with a slight expectations gap. This suggests that investors may not fully account for the potential risks associated with weak execution quality.
Management is on track to achieve double-digit sales and earnings growth, which has been reflected in recent results. However, there is a moderate risk due to the company's history of misses, even with a low probability of missing expectations in the near term.
The long-term thesis hinges on management's ability to maintain guidance and execute on growth strategies. Additionally, external factors such as Fed rate changes and performance of sector leaders like NVDA and TSM will play a crucial role in shaping outcomes.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the read on TEL. However, margins are under pressure, which threatens the goal of double-digit sales growth.
as of 2026-09-04
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 performance will depend on its execution and broader market conditions. Not investment advice.