TE Connectivity Outlook - Technical Weakness Persists Amid Mixed Analyst Opinions

1. Market Snapshot

Takeaway: TE Connectivity (TEL) is currently in a weak technical state with bearish signals dominating and is best avoided at this time, according to our internal diagnostic score (0-10) of 2.62.

2. News Highlights

• Texas Instruments Expansion Drives Sector Activity: The $30 billion Texas Instruments expansion in Sherman includes a 53-acre mixed-use development to support workers. This indirectly supports TE Connectivity’s industrial market, but it remains to be seen how much of an impact it will have on the stock.
• Logic Pro Update for Music Producers: Apple's new updates for the Logic Pro app on Mac and iPad devices highlight growing demand for digital production tools. While not directly related to TE Connectivity, it signals continued growth in consumer electronics and tech sectors that TE supplies components for.
• EDS Detectors Market to Grow: The EDS Detectors market is projected to expand at an 8.2% CAGR by 2031. TE Connectivity may benefit from increased demand for electronic components in detector systems, but this is still in the long-term outlook.

3. Analyst Views & Fundamentals

Average Rating Score: The simple average rating is 3.67, while the performance-weighted rating is 3.15, indicating a generally neutral to slightly positive outlook from analysts.

Consistency of Analyst Ratings: The analysts have mixed opinions, with three "Neutral" ratings, one "Strong Buy," and two "Buy" ratings. This dispersion suggests differing views on the stock's short-term potential.

Price Trend Alignment: The stock has recently risen by 3.22%, which aligns with the neutral to positive analyst ratings. However, the technical indicators suggest caution, as the price movement may not be sustainable.

Fundamental Factors & Scores:

• PE Ratio: 4585.02 (internal diagnostic score: 1) – this extremely high ratio suggests the stock may be overvalued in terms of earnings.
• PS Ratio: 14.39 (internal diagnostic score: 3) – a moderate score, indicating some value, but not strong.
• ROE (Diluted): 4.48% (internal diagnostic score: 2) – a weak return on equity suggests limited profitability relative to shareholders' equity.
• Equity Ratio: 94.65% (internal diagnostic score: 3) – a high equity ratio (low leverage) is generally positive for stability, but it can also indicate a conservative capital structure.

4. Money-Flow Trends

Despite a recent 3.22% price increase, money-flow patterns remain bearish overall. The fund flow score (0-10) for TEL is 7.72, which is high and considered good in our system.

• Big Money Trends: The block trend is negative, and the block inflow ratio is 46.21%, indicating that large institutional investors are not currently favoring TEL.
• Retail vs. Institutional Flow: Retail investors are showing a positive trend with a Small inflow ratio of 51.09%, whereas large and extra-large investors are withdrawing, with inflow ratios of 48.48% and 45.31%, respectively.

5. Key Technical Signals

Our internal diagnostic score (0-10) for TEL is 2.62, indicating a weak technical position.

Recent Indicators (Last 5 Days):

• Marubozu White (internal diagnostic score: 3.69) – a bearish candlestick pattern that suggests a potential reversal or continuation of a downward trend.
• WR Overbought (internal diagnostic score: 3.17) – indicates the stock may be overbought and due for a correction.
• Dividend Payable Date (internal diagnostic score: 1.00) – historically has had a negative impact, with an average return of -2.86% and a win rate of 0%.

Chart Pattern Summary by Date:

• 2025-09-10: WR Overbought, Marubozu White
• 2025-09-12: Dividend Payable Date
• 2025-09-11: WR Overbought
• 2025-09-05: WR Overbought
• 2025-09-09: WR Overbought

Momentum Quality: The technical signal landscape is highly bearish with 3 bearish indicators and 0 bullish in the last 5 days. This suggests a high risk of price decline.

6. Conclusion

Given the weak technical signal and the recent mixed analyst ratings, we recommend that investors consider waiting for a pull-back before engaging with TE Connectivity (TEL). While the recent price rise is positive, the lack of strong fundamental support and bearish chart patterns suggest caution. Investors should monitor the next few weeks for any improvement in technical indicators and potential earnings surprises.