South America
Zacks Electronics Components Industry Overview
• The Zacks Electronics – Miscellaneous Components industry faces challenges due to global macroeconomic environment, geopolitical tensions, and foreign currency headwinds.
• Despite these challenges, industry players are benefiting from automation drive and increased spending by manufacturers of semiconductors, automobiles, machinery, and mobile phones.
• Industry participants like BWX Technologies BWXT, Fabrinet FN, and OSI Systems OSIS are well-positioned to benefit from the adoption of Artificial Intelligence (AI) and the democratization of IoT.
• The industry caters to various end markets such as telecommunications, automotive electronics, medical devices, industrial, transportation, energy harvesting, defense and aerospace electronic systems, and consumer electronics.
• The industry is primarily housed within the broader Zacks Computer and Technology sector, with a Zacks Industry Rank #157, placing it in the bottom 37% of more than 250 Zacks industries.
• The industry has underperformed the Zacks S&P 500 composite and the broader Zacks Computer and Technology sector in the past year, with a return of 1.1%.
• The industry’s current valuation is based on the forward 12-month price to earnings (P/E), a commonly-used multiple for valuing electronics – miscellaneous components stocks.
• The industry has traded as high as 22.68X and as low as 20.05X, with a median of 21.18X.
• The industry’s recent stock-market performance and valuation picture indicate dim near-term prospects.
