Plexus (PLXS): Assessing Valuation After Upbeat Revenue Guidance and Q2 Earnings Beat

Plexus (PLXS) just delivered quarterly results that topped expectations for both revenue and profit, even as overall sales growth stayed mostly flat compared to last year. The company also issued upbeat revenue guidance, crediting wins with new customers and expanding market share for its positive outlook.

See our latest analysis for Plexus.

Plexus’s share price has powered up 15.4% over the past 90 days, a run that stands out against a mostly flat year-to-date performance. While momentum cooled this week, longer-term investors have still seen a 1-year total shareholder return of 1.9% and an impressive 3-year total return above 45%, highlighting the company’s ability to generate consistent value even through recent industry headwinds and company buybacks.

If Plexus’s proven resilience and renewed growth streak got your attention, it could be the perfect moment to broaden your search and discover fast growing stocks with high insider ownership

With the share price on the move and guidance painting an optimistic picture, the key question is whether Plexus’s strong run leaves meaningful upside or if the market has already fully priced in the next phase of growth.

Most Popular Narrative: 9.5% Undervalued

The narrative’s fair value for Plexus stands above the latest closing price, suggesting that market optimism has not yet reflected the underlying growth drivers and margin benefits. This creates a focus on the most debated catalyst in the consensus view.

The company's increasing success in winning programs in high-margin, complex sectors such as healthcare/life sciences, aerospace, and defense (including strong defense pipeline in Europe and record sector wins) is shifting the revenue mix toward segments with higher pricing power and more stable, long-term contracts. This should positively impact both revenue consistency and net margin expansion.

Read the complete narrative.

Want to uncover the numbers powering this optimistic view? The narrative is built on bolder profit growth, a strategic earnings mix, and an ambitious multiple only select companies command. Curious what earnings and margin ramp justify this premium fair value? Click for the full calculation narrative and all the surprising financial targets that fuel Plexus’s upside story.

Result: Fair Value of $159 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing tariff uncertainty and customer demand shifts could quickly disrupt Plexus’s growth story. This reminds investors that even consensus narratives carry risks.

Find out about the key risks to this Plexus narrative.

Another View: What If Market Ratios Shift?

Looking at valuation through the lens of the price-to-earnings ratio tells a slightly different story. Plexus trades at 22.5x earnings, lower than the US Electronic industry average of 25.9x and well below the peer group’s 37.9x. The fair ratio, based on market trends, stands at 23.8x. This is a level the market could eventually target. This gap suggests there may be more value on the table, but could shifting industry multiples challenge this favorable positioning?

See what the numbers say about this price — find out in our valuation breakdown.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Plexus for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Plexus Narrative

If you have a different perspective or want to dive into the numbers firsthand, you can craft your own narrative in just a few minutes: Do it your way

A great starting point for your Plexus research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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