Plexus continues its bullish rally to test new highs.
From a fundamental viewpoint, the group is in a good financial situation. Analysts widely revised upward in recent times their earnings per share estimates, which is a reliable indicator reflecting the company's health.
Technically, prices continue to increase sharply for several months. On all time scales, all indicators are green and moving averages are well oriented. The security is now moving toward the mid-term resistance located at USD 40.5 and seems able to breakout soon. This crossing would provide a strong buy signal in order to reach the trend line at USD 43.
Taking into account all these elements, investors could buy the stock at the current price. The target price is set above the USD 40.5 mid-term resistance. A stop loss will be fixed below the USD 39, corresponding to the 20-day moving average.
Plexus Corp. is specialized in providing design and development, supply chain solutions, new product introduction, manufacturing, and sustaining services. The Company offers solutions to industrial, healthcare/life sciences and aerospace/defense market sectors by comprehensive solutions throughout the products lifecycle. Its segments include Americas (AMER), Asia-Pacific (APAC) and Europe, Middle East, and Africa (EMEA) regions. Its design and development services include user-centered design (UCD), mechanical engineering, electrical engineering, quality, and compliance engineering, project management, and software engineering. Its supply chain services include design for supply chain, supply chain risk management, actionable analytics, innovative sourcing, and others. Its new product introduction includes test engineering, rapid prototyping, and transition management. Its sustaining services include aftermarket services, product lifecycle extension, and distribution management.