TE Connectivity - AI Stock Analysis

Analysis generated December 20, 2025

TE Connectivity Ltd. (NYSE: TEL) is a global industrial technology leader that designs and manufactures connectivity and sensor solutions. The company's products are used in a wide array of industries, including automotive, industrial, healthcare, data communications, and appliances. With a heritage of innovation, TE Connectivity is committed to developing products that improve the performance, reliability, and sustainability of the connected world.

Fundamental Analysis

Revenue: For the last quarter, TE Connectivity reported revenue of $4.58 billion, which represents an increase of 0.93% from the previous quarter and a significant 12.49% increase on a year-over-year basis. The growth in revenue underscores the company’s focused strategy on expanding its market presence.

Net Income: The net income for the last quarter was $663 million, reflecting a 3.92% increase from the preceding quarter and a dramatic 140.22% increase compared to the same quarter last year. This remarkable year-over-year growth in net income demonstrates strong operational performance and effective cost management.

EBITDA: TE Connectivity reported EBITDA of $1.17 billion for the last quarter, an increase of 7.34% from the previous quarter and a notable 29.42% year-over-year increase. This upward trend in EBITDA indicates the company’s improved profitability and operational efficiency.

P/E Ratio: The current P/E ratio of 37.33 is relatively high, which might suggest that the stock is overvalued. A high P/E ratio often indicates high investor expectations about future growth, but it can also reflect a bearish outlook due to overvaluation concerns.

It is important to note that in the past couple of months, there have been several insider sales. This could be interpreted as a bearish signal, suggesting that insiders might perceive the stock as too high-priced or lacking imminent growth potential.

Technical Analysis

Stock Price: The current stock price of TE Connectivity stands at $229.98, marking a 7.57% increase from a month ago, indicating positive short-term momentum.

Long-term Trend: Compared to a year ago, the stock price has surged by 62.55%, indicating a robust positive long-term trend.

SMA (Simple Moving Average): The current SMA10 is $230.10, slightly lower than the previous SMA10 of $231.52, suggesting a potential downward trend in price movement. This could signal caution for investors looking at short-term trades.

RSI (Relative Strength Index): With an RSI of 43.8, the stock is in neutral territory. An RSI between 30 and 70 typically indicates that the stock is neither overbought nor oversold.

Alternative Data Analysis

Job Postings and Employee Sentiment: TE Connectivity has 1,318 open positions, a stable number over the last few months, suggesting a stable growth prospect and a balanced workforce dynamic.

Customer Acquisition: Estimates indicate that TE Connectivity's website has received approximately 1.3 million visitors. However, the number of visitors has decreased by 8% over the last couple of months. This trend could be a cause for concern, as it may imply a declining interest or customer base.

Customer Engagement: On social media, TE Connectivity has 23,000 followers on Instagram, with a follower growth of 13% over the last couple of months. Conversely, the company has 37,000 followers on Twitter, a slight decrease of 1% during the same period. These metrics reflect mixed sentiments regarding customer interest and engagement.

AI Score: According to AltIndex’s AI score, which integrates fundamental, technical, and alternative data analyses, TE Connectivity has an AI score of 61, which signals a buy recommendation.

Conclusion and Recommendation

TE Connectivity demonstrates strong fundamental metrics, with substantial growth in revenue, net income, and EBITDA on both quarterly and yearly bases. While the high P/E ratio and insider sales might raise concerns about overvaluation, the overall financial health appears robust.

Technical analysis presents a mixed outlook: despite the positive short-term upward movement and substantial long-term growth, a bearish trend and neutral RSI indicate caution for short-term trades.

Alternative data metrics offer additional insights, including stable job postings and mixed customer engagement indicators. The AI score of 61 supports a buy recommendation.

Given the combination of strong fundamentals, mixed technical signals, and generally positive alternative data, the overall recommendation would be to buy but with cautious optimism, particularly considering the potential for overvaluation and recent bearish movements.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.