Celestica (CLS) ended the recent trading session at $195.12, demonstrating a -8.11% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.64%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 1.15%.
Heading into today, shares of the electronics manufacturing services company had gained 6.24% over the past month, outpacing the Computer and Technology sector's gain of 2.91% and the S&P 500's gain of 1.91%.
The investment community will be paying close attention to the earnings performance of Celestica in its upcoming release. The company's earnings per share (EPS) are projected to be $1.45, reflecting a 39.42% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3 billion, indicating a 19.99% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.55 per share and revenue of $11.63 billion, which would represent changes of +43.04% and +20.61%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Celestica. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 7.4% higher. Celestica presently features a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Celestica is currently exchanging hands at a Forward P/E ratio of 38.26. Its industry sports an average Forward P/E of 21.23, so one might conclude that Celestica is trading at a premium comparatively.
The Electronics – Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
