FLEX gains over 3% after upbeat results and Cerebras manufacturing deal

Traders Union
All News
Stocks
Flex ltd rises 3.38% today

Highlights

Flex Ltd exceeded quarterly EPS and revenue expectations, reporting $1.00 per share and $7.93 billion respectively.
Management issued Q2 2027 earnings and revenue guidance above analyst forecasts and expanded AI hardware partnerships with Cerebras Systems.
The stock faces mixed technical momentum, trading below short-term averages with a 5-day forecast range of $105.2 to $126.17 and a bearish bias.

Earnings beat and expanded Cerebras deal bolster Flex outlook

Flex Ltd reported quarterly earnings of $1.00 per share, exceeding consensus estimates by $0.10. The company also posted quarterly revenue of $7.93 billion, surpassing analyst expectations. Updated earnings and revenue guidance for the second quarter of 2027 came in above forecasts. Flex expanded its manufacturing partnership with Cerebras Systems to increase production of the Cerebras CS-3 AI supercomputer at its Milpitas, California facility.

Anton Kharitonov, expert at Traders Union, sees the stock's rebound as vulnerable despite upbeat revenue and profit data. He notes persistent technical weakness, with Flex trading below both short- and medium-term moving averages. Momentum signals confirm sellers dominating, and the risk of a further breakdown remains elevated. Kharitonov highlights the low probability of sustained gains as sentiment appears fragile and volatility remains high. "Until FLEX regains technical strength and sentiment improves, I expect further downside pressure and suggest a defensive approach here."

Viktoras Karapetjanc, expert at Traders Union, believes Flex's latest results highlight a robust operational trend and strong demand drivers. He sees the manufacturing expansion with Cerebras Systems as a strategic win, reinforcing the company's growth pipeline. Despite recent volatility, the bullish structure remains intact above the 200-day average. Karapetjanc notes the upgraded guidance and positive news flow provide a solid foundation for further gains. "With improved fundamentals and ongoing industry momentum, I expect FLEX to deliver upside surprises in coming quarters."

Jainam Mehta, market strategist, observes that FLEX is drifting in a consolidation phase, caught between technical headwinds and longer-term support. He points to mixed momentum readings, with potential for a tactical bounce if price holds above $112.08. The current setup may attract contrarian strategies, especially if intraday volatility persists. "If FLEX breaks above $119.38 with renewed volume, traders could position for a short-term rally toward resistance levels."

Medium-term pressure persists despite long-term support for Flex

Flex is trading below both the 20-day and 50-day moving averages ($125.6 and $139.33, respectively), but remains above the 200-day moving average at $87.88, confirming longer-term support despite recent short- and medium-term selling pressure. Immediate levels to watch are the near-term ceiling at $119.38 and the floor at $112.08, with distant indicators such as the Ichimoku Kijun ($132.7) and MA-50 ($139.33) reinforcing the longer-term bullish trend context. Momentum readings are mixed. The Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) both indicate a sell bias, supported by the Relative Strength Index (RSI) at 38.68, which signals weak momentum and potential oversold conditions. The Commodity Channel Index (CCI) and Bull/Bear Power (BBP) are both oversold, with sellers currently dominating intraday momentum. The Stochastic RSI suggests a strong buy, and the Hull Moving Average (HMA) supports a more constructive short-term view. The stock last traded at $115.69, gaining $3.78 or 3.38% on the day after an opening upside gap of 4.57%. Price is mid-range within today's $112.08 - $119.38 spread, with intraday volatility amplitude at 6.51%. This reflects a session marked by a strong open and some consolidation, as intraday signals offer mixed direction.

Earlier, analysts noted that Flex was facing persistent selling pressure and weak technical momentum despite longer-term support. The latest earnings beat and expanded partnership add a constructive dimension, but with mixed momentum signals and volatility elevated, traders should stay alert for a decisive move above $119.38 or below $112.08 as key triggers for near-term direction.

Source of Data: FLEX Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.