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The stock market has a tendency to focus on the very short-term and this can often create bargains with superior potential for long-term investors when their looking for stocks to buy now.
This appears to be what is happening right now with the electronic contract manufacturers.
I know it sounds like a mouthful, but this industry is worth a closer look for investors.
You see, the electronic manufacturing services industry has been sadly drifting along with the global economy. Demand for electronics has been held down by a lack of spending at both the consumer and corporate levels.
This combination of weak current business conditions and bright prospects for future growth has created some opportunities for investors to buy selected companies at bargain prices.
And now's the time to scoop them up.
That's because the industry is showing some signs of recovery as demand for some devices, most notably smartphones and tablets, is beginning to increase.
It's not just the mobile wave that'll push this industry into profit territory.
New opportunities will open up for contract manufacturers as the auto industry continues to add electronic features to cars and wireless companies turn toward smart antennas over the next few years. Both industries expect huge sales growth this year. For example vehicle sales are on track to reach about 15 million units this year – a 44% gain from 2009.
To play these areas of growth, here are two electronics stocks to buy now that will benefit as electronic contract manufacturers reap the rewards of increased consumer and business spending.
Our Best Buys: Two Electronics Stocks to Buy Now
Multi-Fineline Electronix Inc. (Nasdaq: MFLX) is a company that should do very well for long-term investors.
The company makes flexible circuit and component assemblies to customers around the world. MFLX is well positioned in the smartphone and tablet markets and has strong relationships with the major mobile companies. It has built a solid reputation as a contract manufacturer to the industry as a result of a willingness to commit capital to meet changing market conditions and better serve OEM (original equipment manufacturer) customers.
The market for smartphones is expected to grow globally by more than 20% a year and this provide a source of top and bottom line growth for this company. The tablet market is expected to be even more explosive with 45% annual growth for the next several years.
Even better: The company is not just relying on those two powerful markets…