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Ballybrit, Ireland-based TE Connectivity plc (TEL) manufactures and sells connectivity and sensor solutions. Valued at a market cap of $61.4 billion, the company’s products serve a wide range of industries, including automotive, industrial equipment, communications, aerospace, defense, and medical.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and TEL fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the electronic components industry. The company's strength lies in its broad and diversified product portfolio of connectors and sensors, which are critical for enabling seamless power, data, and signal transmission. By combining scale, innovation, and engineering expertise, TEL is uniquely positioned to support the growing demand for electrification, connectivity, and advanced technology solutions worldwide.
This tech leader is currently trading 2.3% below its 52-week high of $212.76, reached on Jul. 29. Shares of TEL have soared 26.3% over the past three months, considerably outperforming the Technology Select Sector SPDR Fund’s (XLK) 11.1% return during the same time frame.
In the longer term, TEL has surged 45% over the past 52 weeks, outpacing XLK's 29.9% uptick over the same time period. Moreover, on a YTD basis, shares of TEL are up 45.4%, compared to XLK’s 13.9% rise.
To confirm its bullish trend, TEL has been trading above its 200-day moving average since early May, and has remained above its 50-day moving average since late April.
Shares of TE Connectivity soared 12% on Jul. 23 after its strong Q3 earnings release. The company reported robust growth in revenue across both of its segments, with the industrial solutions division leading the way with a 30% year-over-year increase. This drove its overall revenue up 13.9% to a record $4.5 billion, beating consensus estimates by 5.1%. Moreover, its adjusted EPS also reached a record high of $2.27, marking an 18.8% rise from the year-ago quarter and 9.1% above Wall Street's expectation. A notable 390 basis points expansion in the adjusted operating margin of its industrial solutions segment further supported its profitability.
However, despite outperforming the broader market, TEL has underperformed its rival, Amphenol Corporation (APH), which rallied 84.7% over the past 52 weeks and 59.2% on a YTD basis.
Looking at TEL’s recent outperformance relative to its sector, analysts remain highly optimistic about its prospects. The stock has a consensus rating of "Strong Buy” from the 17 analysts covering it, and the mean price target of $213.19 suggests a 2.6% potential upside from its current price levels.
