A Transformed Business Model Could Cause This Stock To Double

Investors have ignored this sector for too long

Highlights:

• From 2004 to 2014, U.S.-listed EMS (electronics manufacturing services) stocks posted cumulative returns of just 4%.

• In the decade since, however, the group has kept pace with the NASDAQ 100 and crushed the S&P.

• Significant changes in the business models are a key factor. Yet investors aren’t appreciating the scale of the transformation.

• One of the sector’s highest-margin players is facing cyclical weakness from inventory corrections. As that normalizes, there’s a path to huge returns.