TE Connectivity Ltd.

(New York Stock Exchange)
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Bullish +70

Zacks.com featured highlights include Ross Stores, Globe Life, Broadcom, Colgate-Palmolive and TE Connectivity

AI-generated analysis

๐Ÿ“‰ Oil prices surged to $120 a barrel due to geopolitical tensions, but markets stabilized after the U.S. administration allowed Iranian tankers through the Strait of Hormuz.

๐Ÿ’ผ Zacks Investment Research highlights five stocks with high Return on Equity (ROE) as solid investment options amid market volatility.

๐Ÿช Ross Stores is an off-price retailer targeting middle-income households with apparel priced 20% to 60% below department store prices.

๐Ÿ“ˆ Ross Stores holds a Zacks Rank #2, has a long-term earnings growth expectation of 10%, and beat trailing earnings by 6.2%.

๐Ÿ›ก๏ธ Globe Life is an insurance holding company focused on lower-middle to middle-income households offering traditional and supplemental health plans.

๐ŸŽฏ Globe Life carries a Zacks Rank #2 but does not have a specific long-term earnings growth expectation listed in the provided text.

๐Ÿ’พ Broadcom develops semiconductor solutions for enterprise networking, data centers, consumer electronics, and power generation systems.

๐Ÿš€ Broadcom has a long-term earnings growth expectation of 48.6% and a trailing four-quarter earnings surprise average of 1.9%.

๐Ÿฆท Colgate-Palmolive is a global leader in oral care distributing products across household, healthcare, pet nutrition, and home care categories.

๐Ÿ’Š Colgate-Palmolive operates in over 200 countries with a long-term earnings growth expectation of 5.7% and a Zacks Rank #2.

๐Ÿ”Œ TE Connectivity designs and manufactures connectivity and sensor solutions for industries like automotive, aerospace, and medical sectors.

โšก TE Connectivity focuses on emerging technologies including 5G, electric vehicles, and industrial automation with a 12% earnings growth expectation.

๐Ÿ“Š All five highlighted stocks carry a Zacks Rank #2, indicating moderate buy potential according to the screening criteria.

๐Ÿ’น ROE is used as a key financial metric to distinguish profit-generating companies from those burning cash and assess management efficiency.

Bullish Signals
  • Ross Stores has a long-term earnings growth expectation of 10% and delivered a trailing four-quarter earnings surprise of 6.2% on average, demonstrating consistent profitability.
  • Broadcom boasts an impressive long-term earnings growth expectation of 48.6%, with a trailing four-quarter earnings surprise of 1.9%, indicating strong semiconductor demand.
  • Colgate-Palmolive maintains a steady long-term earnings growth expectation of 5.7% and delivered a trailing four-quarter earnings surprise of 4% on average, solidifying its position as a global leader in oral care hygiene markets across 200+ countries.
  • TE Connectivity has a robust long-term earnings growth expectation of 12%, with an outstanding trailing four-quarter earnings surprise of 7.5% on average, positioning itself at the forefront of emerging technologies like 5G and electric vehicles.
  • All five highlighted stocksโ€”Ross Stores, Globe Life, Broadcom, Colgate-Palmolive, and TE Connectivityโ€”carry a Zacks Rank #2, signaling strong buy ratings from analysts.
  • The companies are identified as high ROE stocks that reinvest cash at high rates of return, ensuring financial health and attractive risk-adjusted returns for shareholders.
Risk Factors
  • All five featured stocks (Ross Stores, Globe Life, Broadcom, Colgate-Palmolive, and TE Connectivity) carry a Zacks Rank #2, which is an 'Buy' rating but typically considered inferior to the top-rated #1 rank stocks in terms of immediate upside potential.
  • The article does not provide specific financial data or downside risks for the mentioned stocks beyond general qualitative descriptions, offering no quantitative metrics to support investment decisions without accessing external links.
  • Market volatility driven by geopolitical tensions involving Iran and Israel has caused oil prices to surge to record highs of $120 per barrel, creating uncertainty that could impact revenue streams for retailers like Ross Stores and other consumer-facing businesses.
  • Investors are adopting a wait-and-see approach due to escalating international tensions, which suggests persistent market instability and potential for further downside risk despite recent cooling in oil prices.
  • The screening criteria highlighted only stocks with high ROE without mentioning any valuation concerns or competitive threats that could undermine their long-term profitability.
Full Analysis
Zacks Investment Research featured an article on March 18, 2026, highlighting five stocks with high Return on Equity (ROE) as a strategic investment consideration amidst recent market volatility. The broader equity markets experienced a positive uptrend following a tumultuous week driven by oil price fluctuations; crude prices peaked at $120 per barrel due to the war between Iran and Israel blocking shipping in the Strait of Hormuz, before calming after the U.S. administration allowed Iranian tankers to pass safely. President Trump is reportedly forming a coalition to escort ships through the Strait to stabilize oil prices, prompting investors to focus on "cash cow" stocks with strong efficiency ratios for higher returns. The article specifically recommends Ross Stores, Inc. (ROST), Globe Life Inc. (GL), Broadcom Inc. (AVGO), Colgate-Palmolive Co. (CL), and TE Connectivity plc (TEL), all of which carry a Zacks Rank #2. Ross Stores, based in Dublin, California, operates as an off-price retailer targeting middle-income households with prices 20% to 60% below department stores, boasting a long-term earnings growth expectation of 10% and a trailing four-quarter earnings surprise average of 6.2%. Globe Life, headquartered in McKinney, Texas, markets life and supplemental health insurance products, while Broadcom, based in San Jose, California, develops semiconductor solutions for enterprise, data center, and consumer markets with a projected long-term earnings growth expectation of 48.6% and an average trailing earnings surprise of 1.9%. Colgate-Palmolive, a New York City-based leader in oral care operating in over 200 countries, is noted for its four core categories including Oral Care, Personal Care, Pet Nutrition, and Home Care, with a long-term earnings growth expectation of 5.7% and an average trailing earnings surprise of 4%; it additionally holds a VGM Score of B. TE Connectivity plc, headquartered in Galway, Ireland, designs connectivity and sensor solutions across automotive, aerospace, defense, energy, and medical sectors with operations in over 130 countries. TE Connectivity has a long-term earnings growth expectation of 12%, an average trailing four-quarter earnings surprise of 7.5%, a VGM Score of B, and a Zacks Rank #2. The analysis emphasizes that high ROE helps investors identify companies effectively multiplying profits without new equity capital, distinguishing profitable entities from those burning cash.