(BHE) Benchmark Electronics - Ratings and Ratios

Benchmark Electronics, Inc. is a leading provider of product design, engineering services, and manufacturing solutions, catering to original equipment manufacturers across various industries, including semi-conductor capital equipment, industrial, medical, aerospace and defense, and advanced computing and communications. The companys comprehensive suite of services encompasses new product design, prototype, testing, and related engineering services, as well as electronics manufacturing and testing services, including printed circuit board assembly and test solutions.

The companys capabilities extend to precision machining, electromechanical assembly, and subsystem and system integration services, ensuring a one-stop-shop for clients. Additionally, Benchmark Electronics offers value-added support systems, supply chain management solutions, direct order fulfillment, and aftermarket non-warranty services, including repair, replacement, and refurbishment, throughout a products life cycle. With a global presence spanning the Americas, Asia, and Europe, the company is well-positioned to serve its diverse client base.

From a technical analysis perspective, Benchmark Electronics stock price is currently trading at $37.33, slightly above its 20-day simple moving average (SMA) of $37.17. The stock is also above its 50-day SMA of $36.15, indicating a short-term uptrend. However, the stock remains below its 200-day SMA of $41.79, suggesting a longer-term downtrend. The average true range (ATR) of 0.89 indicates moderate volatility, with a potential price swing of 2.38%. Given the current technical setup, a potential trading range between $36.00 and $39.00 can be expected in the short term.

Fundamentally, Benchmark Electronics has a market capitalization of $1.38 billion and a price-to-earnings (P/E) ratio of 26.58, indicating a relatively high valuation compared to its earnings. The return on equity (RoE) stands at 4.80%, suggesting a moderate level of profitability. Considering the current fundamental and technical data, a forecast for the stock price can be made. Assuming a stable earnings trajectory and a reversion to the mean for the P/E ratio, a potential target price range of $40.00 to $45.00 can be expected in the medium term, driven by a combination of improved earnings and a re-rating of the stocks valuation.