Flex's AI-led CPI growth and rising margins support higher guidance, but a 22.2X forward P/E, heavier capex and higher debt temper the buy case.
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Flex's planned CPI spin-off would separate its fastest-growing business, sharpening its AI data-center exposure and the remaining company's cash focus.
FLEX's 10.6% slide comes as AI-led CPI growth, raised guidance and stronger margins collide with higher debt, heavy spending and a premium valuation.
FLEX's Cloud and Power Infrastructure growth is fueling a stronger FY27 outlook as AI-driven demand boosts revenue, margins and expansion plans.
FedEx, Tapestry, Celestica and Vertiv stand out for strong interest coverage ratios as investors seek financially stable stocks.