Plexus Corp

Analysts have sharply raised their earnings estimates for Plexus, pushing the stock to a Zacks Rank #1 Strong Buy. Over the last 30 days, two estimates moved higher for the current quarter with no negative revisions, lifting the consensus estimate by 62.14% to $2.44 per share, a 14.0% year-over-year increase. For the full year, the consensus estimate rose 12.55% to $8.51 per share, up 14.5% from the prior year, also on two upward revisions and no cuts. The stock has gained 7% over the past four weeks, and Zacks notes that stocks with its top rank have historically outperformed the S&P 500.

Plexus is estimated to be undervalued by about 8% following its issuance of fiscal 2026 guidance that projects more than 20% revenue growth, with continued expansion and margin improvement expected in 2027. The most followed narrative points to a fair value of $293.25 per share, compared with the latest close of $270.35, driven by a revenue mix shift toward higher-margin healthcare, life sciences, aerospace, and defense sectors. However, the stock trades at a price-to-earnings ratio of 39 times, above a fair ratio of 29 times and the US Electronic industry average of 31.8 times, leaving less room if growth or margins disappoint. Key risks include heavy customer concentration and cyclicality in semiconductor capital equipment and aerospace.

Plexus Corp delivered record fiscal third quarter revenue of $1.305 billion, exceeding guidance with 28% year-over-year growth. The company raised its fiscal 2026 outlook to more than 20% revenue growth and anticipates fiscal 2027 growth will exceed its 9% to 12% goal. Non-GAAP operating margin of 6.3% met the high end of guidance, with expectations for fiscal 2026 margins to exceed 6% and further expansion in 2027. The qualified manufacturing opportunities funnel reached a record $4.5 billion, up 23% year-over-year, and cash cycle days improved to 62 days, the best result in over five years. Aerospace and defense wins totaled $400 million year-to-date, more than double the combined fiscal 2024 and 2025 performance.