Celestica (CLS) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Celestica (CLS) closed at $288.73, marking a +2.5% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.72% for the day. At the same time, the Dow added 0.48%, and the tech-heavy Nasdaq gained 1.16%.

Heading into today, shares of the electronics manufacturing services company had gained 9.62% over the past month, outpacing the Computer and Technology sector's loss of 5.35% and the S&P 500's loss of 4.99%.

The investment community will be paying close attention to the earnings performance of Celestica in its upcoming release. It is anticipated that the company will report an EPS of $2.07, marking a 72.5% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4 billion, indicating a 51.16% growth compared to the corresponding quarter of the prior year.

CLS's full-year Zacks Consensus Estimates are calling for earnings of $8.83 per share and revenue of $17.03 billion. These results would represent year-over-year changes of +45.95% and +37.42%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Celestica. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Celestica is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, Celestica is holding a Forward P/E ratio of 31.9. This denotes a premium relative to the industry average Forward P/E of 23.91.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 17, placing it within the top 7% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CLS in the coming trading sessions, be sure to utilize Zacks.com.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

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

Zacks Investment Research