BHE - Benchmark Electronics: Still Not Buying Due To Sluggish Growth Amid Market Uncertainty

2024-03-20 12:02:53 ET

Summary

• Benchmark Electronics' stock has returned approximately 15% in the past 7 months, in line with the S&P500.
• Technical indicators suggest that the stock may not see higher prices in the near future.
• The company's profitability is facing headwinds, with negative growth expected in revenue and earnings for 2024.

We wrote about Benchmark Electronics, Inc. ( BHE ) in August of last year when we reiterated our 'Hold' rating in the electronic component supplier. Although Benchmark had recently announced a non-GAAP earnings beat in late July (resulting in a long-awaited operating cash-flow print, we pointed to the company's high inventory, growing debt, technical overhead resistance & moderate growth outlook as reasons to not buy the stock at that moment in time....

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