Here's Why Celestica (CLS) Fell More Than Broader Market

Celestica (CLS) ended the recent trading session at $273.58, demonstrating a -2.97% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.36% for the day. Elsewhere, the Dow lost 1.64%, while the tech-heavy Nasdaq lost 1.46%.

Prior to today's trading, shares of the electronics manufacturing services company had lost 1.64% lagged the Computer and Technology sector's loss of 0.24% and was narrower than the S&P 500's loss of 1.76%.

The upcoming earnings release of Celestica will be of great interest to investors. In that report, analysts expect Celestica to post earnings of $2.07 per share. This would mark year-over-year growth of 72.5%. Our most recent consensus estimate is calling for quarterly revenue of $4 billion, up 51.16% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.83 per share and revenue of $17.03 billion. These totals would mark changes of +45.95% and +37.42%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Celestica. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Celestica holds a Zacks Rank of #2 (Buy).

In terms of valuation, Celestica is presently being traded at a Forward P/E ratio of 31.93. This indicates a premium in contrast to its industry's Forward P/E of 23.96.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 5, putting it in the top 3% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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