Celestica's AI-Driven Earnings Surge Lifts Shares 0.2% Despite 66th-Ranked Trading Volume

Celestica (CLS) closed July 30 with a 0.20% gain, trading at $202 per share amid a 53.82% drop in trading volume to $1.36 billion. The stock ranks 66th in daily trading activity on U.S. exchanges.

Second-quarter earnings revealed a 122% year-over-year surge in net income to $211 million, driven by a 21% revenue increase to $2.89 billion. The Connectivity & Cloud Solutions (CCS) segment, fueled by AI infrastructure demand, reported $1.84 billion in revenue—a 28% annual rise. Celestica raised 2025 revenue guidance to $11.55 billion from $10.85 billion, with adjusted EPS now projected at $5.50 versus prior $5. Stifel analysts upgraded the price target to $230 from $150, maintaining a "buy" rating.

Technical indicators highlight a 3.36% intraday surge to $208.79, breaching the 52-week high of $214.47. The RSI at 76.72 signals overbought conditions, while MACD (10.89) confirms bullish momentum. Analysts note Celestica’s 80% year-to-date rally aligns with broader AI infrastructure spending, though elevated valuations (47.8x forward P/E) warrant caution. Options activity reflects high gamma exposure near key resistance levels, with liquidity concentrated in August 2025 contracts.

A backtest of CLS’s performance following a 3% intraday surge showed favorable outcomes: a 54.62% win rate over three days, 62.46% over ten days, and 66.46% over 30 days. Average returns were 1.09%, 3.21%, and 9.32% respectively, with maximum gains reaching 18.46% by day 59. This suggests short-to-medium-term upside potential, though market conditions and risk tolerance remain critical factors for investors.