TE Connectivity Ltd. (TEL) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of TE Connectivity (TEL)? Shares have been on the move with the stock up 8.6% over the past month. The stock hit a new 52-week high of $246.13 in the previous session. TE Connectivity has gained 68.4% since the start of the year compared to the 30.9% gain for the Zacks Computer and Technology sector and the 53.9% return for the Zacks Electronics - Miscellaneous Components industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 29, 2025, TE Connectivity reported EPS of $2.44 versus consensus estimate of $2.29.For the current fiscal year, TE Connectivity is expected to post earnings of $9.51 per share on $18.37 in revenues. This represents a 8.56% change in EPS on a 6.4% change in revenues. For the next fiscal year, the company is expected to earn $10.14 per share on $19.1 in revenues. This represents a year-over-year change of 6.71% and 3.99%, respectively.Valuation MetricsThough TE Connectivity has recently hit a 52-week high, what is next for TE Connectivity? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.TE Connectivity has a Value Score of C. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 25.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 28.1X. On a trailing cash flow basis, the stock currently trades at 20.6X versus its peer group's average of 17.6X. Additionally, the stock has a PEG ratio of 2.24. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, TE Connectivity currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if TE Connectivity meets the list of requirements. Thus, it seems as though TE Connectivity shares could have potential in the weeks and months to come.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TE Connectivity Ltd. (TEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks