Zacks Industry Outlook Highlights TE Connectivity, nVent Electric and Fabrinet

For Immediate ReleaseChicago, IL – August 14, 2025 – Today, Zacks Equity Research discusses TE Connectivity TEL, nVent Electric NVT and Fabrinet FN.Industry: Electronics ComponentsLink: https://www.zacks.com/commentary/2707829/3-electronics-components-stocks-to-buy-from-a-prospering-industryThe Zacks Electronics - Miscellaneous Components industry participants are benefiting from the ongoing automation drive and increased spending by manufacturers of semiconductors, automobiles, machinery and mobile phones. Industry participants like TE Connectivity, nVent Electric and Fabrinet are well-poised to benefit from the solid adoption of Artificial Intelligence (AI) and the democratization of IoT, which are transforming robotics, industrial automation, transportation systems, retail and healthcare.However, a challenging global macroeconomic environment, end-market volatility, and higher tariffs are headwinds. Export restrictions imposed by the United States, as well as China, are a major headwind. Growing geopolitical tensions and foreign currency headwinds are taking a toll on the industry players.Industry DescriptionThe Zacks Electronics - Miscellaneous Components industry primarily comprises companies providing various accessories and parts used in electronic products. The industry participants' offerings include power control and sensor technologies to mitigate equipment damage, testing products for safety, and advanced medical solutions.They cater to varied end markets, such as telecommunications, automotive electronics, medical devices, industrial, transportation, energy harvesting, defense and aerospace electronic systems, and consumer electronics. Customers in this industry are mainly original equipment manufacturers, independent electronic component distributors and electronic manufacturing service providers.3 Trends Shaping the Future of Electronics - Miscellaneous Components IndustryAutomation Boom a Tailwind: The requirement for faster, more powerful and energy-efficient electronics leads to increased automation. Control systems, such as computers, and robots and information technologies for handling different processes and machinery, are driving the industry. The growing installation of collaborative robots, which add efficiency to production processes by working with production workers, will benefit industry participants. IoT-supported factory automation solutions are other contributing factors. The evolution of smart cars and autonomous vehicles is expected to drive growth for the industry.Miniaturization Remains a Key Lever: The industry participants are benefiting from the ongoing transition in semiconductor manufacturing technology. Demand for advanced packaging, enabling the miniaturization of electronic products, remains strong. The consistent shift to smaller dimensions, the rapid adoption of device architectures like FinFET transistors and 3D-NAND, and the increasing utilization of new manufacturing materials to increase transistor and bit density are driving the demand for solutions provided by industry players.Geopolitical Tensions Are Worrisome: The ongoing Russia-Ukraine war and the souring relationship between the United States and China are headwinds. Increasing dependency on AI-backed electronic devices on semiconductors and current restrictions ordered by the United States on trading with China, which remains the main hub for chip production, is a significant negative for the industry.Zacks Industry Rank Indicates Bullish ProspectsThe Zacks Electronics - Miscellaneous Components industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #89, which places it in the top 36% of more than 250 Zacks industries.The group's Zacks Industry Rank, the average of the Zacks Rank of all the member stocks, indicates bullish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.The industry's positioning in the top 50% of the Zacks-ranked industries is a result of the positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group's earnings growth potential. Since March 31, 2025, the industry's earnings estimates for the current year have moved 4.5% up.Given the bullish prospects, there are a number of stocks that investors can choose to pick for a healthy portfolio. However, before we present the stocks, let us look at the industry's recent stock-market performance and the valuation picture.Industry Beats S&P 500, Meets SectorThe Zacks Electronics - Miscellaneous Components industry has outperformed the Zacks S&P 500 composite but was in line with the broader Zacks Computer and Technology sector in the past year.The industry has appreciated 27.1% over this period compared with the S&P 500's 19.1% growth.Industry's Current ValuationBased on the forward 12-month price to earnings (P/E), a commonly used multiple for valuing electronics – miscellaneous components stocks, the industry is currently trading at 22.69X compared with the S&P 500's 21.86X and the sector's 28.39X.In the past five years, the industry has traded as high as 22.69X and as low as 17.04X, with a median of 18.74X.3 Electronics - Miscellaneous Components Stocks to BuyTE Connectivity: This Zacks Rank #1 (Strong Buy) stock is expected to benefit from strong demand for its solutions in the AI domain, as well as energy applications. You can see the complete list of today's Zacks #1 Rank stocks here.The company is benefiting from strength in Asia in the Transportation segment, where increased data connectivity trends and the ongoing growth of the electrified powertrain. TEL's global manufacturing strategy with 70% localized production is helping the company expand margins and generate free cash flow. TE Connectivity expects the trend to continue in the near term, along with positive forex. The company expects fourth-quarter fiscal 2025 sales to increase 6% organically on a year-over-year basis to $4.55 billion.TE Connectivity shares have appreciated 42.8% in the year-to-date period. The Zacks Consensus Estimate for the company's fiscal 2025 earnings has increased 3.5% to $8.54 per share in the past 30 days.nVent Electric: This Zacks Rank #1 company is benefiting from strong data center order growth. The Trachte and Electrical Products Group acquisitions are performing better than expected, further strengthening NVT's position in the high-growth infrastructure vertical, including power utilities, data centers and renewables.nVent Electric shares have appreciated 34.7% year to date. The Zacks Consensus Estimate for 2025 earnings has increased 6.1% to $3.28 per share in the past 30 days.Fabrinet: This Zacks Rank #2 (Buy) company is expected to see near-term softness in the Datacom business. However, Fabrinet remains optimistic about a return to Datacom growth as demand for 1.6T devices increases over the long term. FN expects continued year-over-year growth in Non-Optical Communications in the fourth quarter of fiscal 2025.Fabrinet shares have returned 58.4% in the year-to-date period. The Zacks Consensus Estimate for FN's fiscal 2026 earnings has been revised upward by 3.4% to $10.16 per share over the past 30 days.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 Report Fabrinet (FN): Free Stock Analysis Report nVent Electric PLC (NVT): 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