TEL Stock Analysis — TE Connectivity
Sector: Industrial Technology
AI Verdict
TEL trades at 16.6x next year's earnings for 23.1% expected EPS growth, which is cheap for the growth on offer if its entrenched industrial relationships keep driving demand.
Competitive Moat
TE Connectivity dominates in mission-critical connectors and sensors for harsh environments, supplying automotive, industrial, and communications sectors where reliability and certification create high switching costs. Its entrenched position in automotive wiring harnesses and industrial automation makes it hard for new entrants to displace them without years of qualification and trust-building.
Summary
RSI at 33.2 signals oversold territory just as the stock trades at 16.6x forward earnings with 23.1% EPS growth expected.
Where It Stands
TEL is up 13.13% over the past year, trades at 16.6x forward earnings (below the industrials median of 20x), and its RSI of 33.2 suggests the stock is currently oversold.
Key Metrics
- RSI: 33.2 — Near Oversold
- Trailing P/E: 20.4x
- Forward P/E: 16.6x
- PEG Ratio: 0.89
- Earnings Growth: +0.2%
- Revenue Growth: +0.2%
- Market Cap: $58.5B
- Dividend Yield: 0.02%
- 1-Year Return: 13.13%
- 52-Week High: $252.56
- 52-Week Low: $172.64
Analyst Consensus
17 Buy · 9 Hold · 0 Sell (26 analysts)
Bull Case
With analysts forecasting 23.1% EPS growth and the stock trading at just 16.6x forward earnings, you're getting high expected growth at a discount to the sector median.
Bear Case
If the P/E reverts to the sector median of 20x after a rally from oversold RSI, upside could be capped and a bounce might be short-lived if growth disappoints.
Catalyst to Watch
Watch for upcoming earnings — if EPS growth hits or beats the 23.1% consensus, the low forward P/E could quickly re-rate higher.