Key Stats for TE Connectivity Stock
- This week’s performance: -3.25%
- 52-week range: $116 to $251
- Valuation model target price: $290
- Implied upside: 29.4% over 2.7 years
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What Happened?
Shares of connector and sensor solutions manufacturer TE Connectivity (TEL) fell about 3.25% since Friday, with the move occurring after the company reported earnings.
During the week, TE Connectivity reported Q1 2026 results on January 21, 2026. The company posted net sales of $4.7 billion, up 22% compared to the prior year quarter.
The company beat Q1 sales estimates on strong AI demand. Management also provided an upbeat forecast for the second-quarter profit.
At the same time, an analyst at Macquarie also noted TE Connectivity’s strength. The pullback reflects market consolidation rather than any deterioration in business fundamentals.
TE Connectivity’s revenue growth momentum and earnings power remain intact despite the weekly stock decline.
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Is TE Connectivity Stock Undervalued?
Under the valuation model assumptions realized through September 2028, the stock is modeled using
- Revenue growth (CAGR): 9.1%
- Operating margins: 22.6%
- Exit P/E multiple: 19.1x
Based on these inputs, the model estimates a target price of $290, implying 29.4% total upside from the current share price of $224 and a 10.1% annualized return over the next 2.7 years.
The company operates through two segments: Transportation Solutions and Industrial Solutions. TE Connectivity manufactures and sells connectivity and sensor solutions across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific region.
Its forward 2-year revenue CAGR is expected at 10.1%, forward 2-year EBITDA CAGR at 15.1%, and forward 2-year EPS CAGR at 18.7%. The company’s LTM gross margin stands at 35.7% and LTM EBIT margin at 19.9%.
If these operational drivers hold, the current valuation reflects execution risk rather than optimism, which explains why the stock can remain volatile even as the long-term thesis stays intact.
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