TE Connectivity (TEL) Loses 7.89% on Middle East Supply Disruptions
We recently published 10 Firms Facing a Rough March So Far. TE Connectivity PLC (NYSE:TEL) was one of the worst performers on Monday.
TE Connectivity extended its losing streak to a third consecutive day on Monday, shedding 7.89 percent to finish at $211.98 apiece, as investors parked funds in a wait-and-see mode amid ongoing geopolitical tensions and the lack of fresh leads to boost investing appetite.
While not directly affected by the ongoing tensions in the Middle East, TE Connectivity PLC (NYSE:TEL) remains exposed to the global supply disruptions and the potential surge in shipping costs, amid the marked jump in oil prices.
As of writing, oil benchmarks Brent and WTI are already up by 7.67 percent and 6.68 percent, respectively.
In other news, TE Connectivity PLC (NYSE:TEL) announced last month its earnings performance for the first quarter of fiscal year 2026, with net income jumping by 42 percent to $750 million from only $528 million in the same period a year earlier.
Net sales increased by 21.7 percent to $4.669 billion from $3.836 billion year-on-year, driven by growth in both the industrial and transportation segments.
For the second quarter, TE Connectivity PLC (NYSE:TEL) is targeting to record $4.7 billion in sales, or an implied growth of 13 percent on a reported basis, and a 6 percent growth organically.
Adjusted earnings per share are pegged at $2.65, up 20 percent year-on-year.
While we acknowledge the potential of TEL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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