Celestica (CLS) Falls More Steeply Than Broader Market: What Investors Need to Know

Celestica (CLS) closed the most recent trading day at $265.80, moving -1.26% from the previous trading session. This change lagged the S&P 500's 0.08% loss on the day. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq added 0.08%.

Heading into today, shares of the electronics manufacturing services company had lost 9.64% over the past month, lagging the Computer and Technology sector's loss of 2.38% and the S&P 500's loss of 2.16%.

Investors will be eagerly watching for the performance of Celestica in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.07, signifying a 72.50% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4 billion, reflecting a 51.16% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.83 per share and a revenue of $17.03 billion, indicating changes of +45.95% and +37.42%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Celestica. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Celestica holds a Zacks Rank of #2 (Buy).

With respect to valuation, Celestica is currently being traded at a Forward P/E ratio of 30.49. This indicates a premium in contrast to its industry's Forward P/E of 23.4.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 7, finds itself in the top 3% echelons 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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Celestica, Inc. (CLS): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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