TEL Stock Analysis: Buy, Sell, or Hold?

TEL - TE Connectivity plc

WHOLESALE-ELECTRONIC PARTS & EQUIPMENT, NEC
$226.35
-0.78 (-0.34%) ▼
5d: -1.92%
30d: -2.95%
90d: -8.36%
BUY
HIGH Confidence
Last Updated: February 3, 2026
Earnings: Apr 21, 2026

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
✅ BUY SIGNAL: TEL appears deeply undervalued. Market expects -4.7% annual earnings decline despite 44% recent earnings growth. Contrarian opportunity at discount to historical valuation.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$382.06
Based on 8.0% avg growth
INTRINSIC VALUE TODAY
$237.23
4.6% Margin of Safety

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 21.1x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: TEL is currently trading at $226.35, which is considered slightly low relative to its 30-day fair value range of $225.80 to $235.71. From a valuation perspective, the stock is trading at a discount (Forward PE: 18.3) compared to its historical average (21.1). Remarkably, the market is currently pricing in an annual earnings decline of 4.7% over the next few years. This pessimistic expectation contrasts with the company's recent 44.4% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, TEL is in a strong uptrend. The price is currently testing key support at $221.05. A bounce from this level would confirm strength, while a break below could signal further downside.

Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $272.00 (+20.2%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.

Quick Decision Summary

Current Position SLIGHTLY LOW
Fair Price Range $225.80 - $235.71
Company Quality Score 61/100 (BUY)
Volume Confirmation HIGH
Confidence Score 79.5%

All Signals

  • BULLISH: Price oversold vs 30-day range
  • NEUTRAL: Mixed technical signals (40/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading 20.2% below Wall St target ($272.00)

Fair Price Analysis

30-Day Fair Range $225.80 - $235.71
Current vs Fair Value SLIGHTLY LOW

Support & Resistance Levels

Support Level $221.05
Resistance Level $239.54
Current Trend Strong Uptrend

Fundamental Context

Forward P/E (Next Year Est.) 18.29
Wall Street Target $272.00 (+20.2%)
Revenue Growth (YoY) 21.7%
Earnings Growth (YoY) 44.4%
Profit Margin 11.4%
Valuation Discount vs History -4.7% cheaper
PE vs Historical 18.3 vs 21.1 CHEAP
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -4.7% (market-implied from PE analysis)
1-Year Target $215.71 (-5%)
2-Year Target $205.57 (-9%)
3-Year Target $195.91 (-13%)
3-Yr Target (if PE normalizes) (PE: 18→21) $225.96 (0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.3, Growth: 11.9%) $386.12 (+71%)
Base: (SPY PE: 18.3, Growth: 11.9%) $316.76 (+40%)
Bear: (PE: 15.6, Growth: 11.9%) $269.25 (+19%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (32x PE), but valuation improves significantly next year (18x PE) as earnings recover.
Trailing PE: 32.04 | Current EPS (TTM): $7.09
Bull Case $436.00 (+93%)
Analyst growth 74.5%, PE expands to 35.2
Base Case $396.36 (+75%)
Market implied 74.5%, PE stable at 32.0
Bear Case $154.45 (-32%)
Severe decline -20.0%, PE contracts to 27.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡 Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 18.3 to 21.1
Stabilization Target: $261.06 (+15.3%)
PE Expansion Potential: +15.3%
Last updated: February 03, 2026 11:32 PM ET
Data refreshes hourly during market hours. Next update: 12:32 AM
🔥 Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
1
Sells
Net
INSIDERS SELLING
Recent Transactions
Shadrak W Kroeger SELL 23850 shares 2025-09-02

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Advanced TEL Option Strategies

Professional options setups generated by AI based on today's TEL price and gamma walls.

Iron Condor Bull Call Bear Put Collar

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