Why Plexus (PLXS) Is Down 10.2% After New US-China Trade Tensions Raise Supply Chain Risks

• In recent days, escalating trade tensions between the US and China surfaced after new Chinese export controls on rare-earth minerals and critical remarks from President Trump, impacting technology companies with supply chain exposure, including Plexus.
• This development underscores the vulnerability of electronics manufacturers like Plexus to disruption from geopolitical events and shifting trade policies that influence component sourcing and operating stability.
• To understand the implications for Plexus, we'll examine how increased exposure to supply chain risk in China could affect its investment outlook.

Find companies with promising cash flow potential yet trading below their fair value.

Plexus Investment Narrative Recap

To be a shareholder in Plexus, you need to believe in the company's ability to profit from expanding demand for advanced electronics manufacturing through its global footprint and sector diversification. The recent escalation in US-China trade tensions highlights supply chain risk as the key short-term concern; however, the immediate operational or earnings impact for Plexus does not appear material based on current information, while the most important near-term catalyst remains execution on new program ramps in high-growth verticals.

The July 2025 quarterly earnings report is particularly relevant here, with sales rising to US$1,018.31 million and net income reaching US$45.12 million. This suggests the company has maintained financial momentum into recent periods, reinforcing optimism around its ability to win and execute major new contracts, yet it also underscores how quickly external shocks, like supply disruptions from China, could become relevant for future results. In contrast, investors should stay alert to...

Read the full narrative on Plexus (it's free!)

Plexus’ outlook points to $4.8 billion in revenue and $202.1 million in earnings by 2028. This projection is based on a 6.1% annual revenue growth rate and a $39.4 million increase in earnings from the current $162.7 million.

Uncover how Plexus' forecasts yield a $154.60 fair value, a 16% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community's single fair value estimate for Plexus stands at US$114.18 per share. With recent headlines focused on supply chain risk and trade tensions, it’s clear opinions and expectations can differ, there are many angles to consider in assessing future prospects.

Explore another fair value estimate on Plexus - why the stock might be worth 15% less than the current price!

Build Your Own Plexus Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Plexus research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Plexus' overall financial health at a glance.

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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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