Plexus Corp. (NASDAQ: $PLXS) is a small-cap stock worth knowing about.
Founded in 1979 and based in Wisconsin, Plexus is an electronic manufacturing services provider that specializes in product design, manufacturing, and supply chain solutions for the healthcare, aerospace, and industrial sectors.
Not sexy but a necessary business that is flourishing and driving up the stock price.
Originally an engineering firm, Plexus today is a global company with operations in North America, Europe, the Middle East, and Asia.
A market capitalization of $7.61 billion U.S. makes Plexus a small-cap stock. But there’s been nothing small about its share price movement.
In the last 12 months, PLXS stock has gained 110%, including an 86% gain this year. Over five years, the share price is up 208%.
The strong performance has been driven by solid financial results from the company.
Plexus most recently reported record financial results that crushed Wall Street forecasts. The company has delivered earnings and revenue beats for five consecutive quarters.
At the end of April, Plexus announced earnings per share (EPS) of $2.05 U.S., beating Wall Street estimates of $1.87 U.S.
Revenue of $1.16 billion U.S. surpassed the $980.17 million U.S. consensus forecast of analysts. Sales were up 19% from a year earlier.
The valuation of Plexus stock looks rich right now, with shares trading at 41 times this year’s earnings estimates. And the company does not offer shareholders a dividend.
Still, PLXS stock offers market-beating returns and upside potential that might be appealing to investors.
