Stock Analysis | TE Connectivity Outlook - Weak Technicals and Mixed Analyst Signals

Market Snapshot

Headline Takeaway: TE Connectivity (TEL) faces weak technical conditions and mixed analyst opinions, despite a recent price rise of 1.82%.

News Highlights

Recent developments suggest a growing focus on tech and industrial sectors:

• May 30: Mixed-Use Project for Texas Instruments Workers – A $30 billion expansion by Texas Instruments in Sherman is spurring infrastructure development, potentially benefiting the industrial sector and firms like TE Connectivity.
• May 30: EDS Detectors Market Growth Forecast – The EDS Detectors market is expected to grow at an 8.2% CAGR through 2031, a sector where TE Connectivity could see long-term demand for its connectivity solutions.
• May 28: Why the Market Dipped But Texas Instruments Gained – While the broader market struggled, Texas Instruments outperformed, signaling strength in semiconductor demand and potentially influencing supply-side partners like TEL.

Analyst Views & Fundamentals

Average Rating Score (Simple Mean): 3.67

Weighted Rating Score (Performance-Weighted): 3.15

Rating Consistency / Dispersion: Analysts remain divided, with ratings ranging from 'Strong Buy' to 'Neutral'. This dispersion suggests uncertainty in the stock's near-term direction.

Price Trend Alignment: The current price has risen 1.82%, matching the 'moderate' weighted expectation from analysts, but the lack of strong consensus may limit further upward momentum.

Key Fundamental Factors and Model Scores:

• EV/EBIT: 67.44% (Model Score: 2.05)
• Shareholders' Equity / Total Liabilities: 105.65% (Model Score: 3.00)
• Equity Multiplier: 195.75% (Model Score: 3.00)
• Price-to-Sales (PS): 14.39 (Model Score: 1.00)
• ROE (Diluted): 4.48% (Model Score: 2.00)
• Equity Ratio (Liabilities / Equity): 94.65% (Model Score: 3.00)
• Total Profit (YoY Growth): 5.41% (Model Score: 0.00)

These fundamental values suggest moderate leverage and profitability, but the low ROE and weak profit growth highlight concerns about earnings strength.

Money-Flow Trends

Big-Money vs. Retail Flows:

• Overall Fund Flow Score: 7.69 (Internal diagnostic score, 0-10)
• Big-Investor Trend: Negative
• Small-Investor Trend: Positive
• Large-Investor Inflow Ratio: 47.47%
• Small-Investor Inflow Ratio: 50.58%

This suggests that while retail investors are showing optimism, institutional money is pulling back, which could indicate caution among larger market participants.

Key Technical Signals

Internal Diagnostic Score (0-10): 2.04

• Williams %R (WR Overbought): Score: 3.07 – Indicates a neutral but overbought condition.
• Bullish Engulfing: Score: 1.00 – A bearish signal, suggesting a potential reversal after a short-term rally.

Recent Chart Patterns:

• 2025-08-26: WR Overbought, Bullish Engulfing
• 2025-08-28: WR Overbought
• 2025-09-05: WR Overbought

Trend Quality: Technical indicators are bearish, with 2 out of 2 signals leaning negative. The lack of bullish momentum reinforces a weak trend.

Conclusion

TE Connectivity presents a mixed picture: while fundamentals show moderate leverage and some demand in industrial and tech sectors, technical signals are bearish and institutional flows are cautious. With an internal technical score of 2.04 and mixed analyst ratings, it may be wise for investors to consider waiting for a clearer trend or more alignment between fundamentals and technicals. Those with long-term exposure should monitor the stock's performance in the coming quarters for signs of stabilization.