Flextronics International (NASDAQ: FLEX) provides design, engineering, manufacturing, distribution and warehousing services to original equipment manufacturers in the automotive, computing, consumer digital, industrial, infrastructure, medical instrumentation and telecommunications industries. Products include printed circuit boards, electromechanical components, electronic subsystems, and complete systems. The company operates from facilities in 35 countries. Customers include Cisco Systems (NASDAQ: CSCO), Hewlett-Packard (NYSE: HPQ) and Microsoft (NASDAQ: MSFT).

The firm pleased investors last week, when it reported fiscal Q3 EPS of 30 cents and revenues of $9.1 billion. Analysts had been expecting 26 cents and $8.6 billion. Management also guided Q4 EPS to 22-24 cents (23 cent consensus) and Q4 revenues to $7.5-$7.9 billion ($7.77B consensus).

FLEX shares popped through 30, 50, 90 and 200-day moving average resistance on the news and then began to define a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with six "strong buys", eight "buys" and six "holds". Analysts expect a 24% growth rate, through the next year. The FLEX P/E ratio (11.82), PEG ratio (0.57), Price to Sales ratio (0.41), Price to Book ratio (1.20), Sales Growth rate (68.05%) and EPS Growth rate (42.86%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 72% of the outstanding shares. The stock is one of those used to calculate the Nasdaq 100 Index. Over the past 52 weeks, it has traded between $9.11 and $13.60. A stop-loss of $9.75 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.