CELESTICA INC (CLS) Rated 100% by Dashan Huang's Twin Momentum Investor Model

CELESTICA INC (CLS) is a large-cap growth stock in the Semiconductors industry that scores highest using the Twin Momentum Investor model based on Dashan Huang's strategy. The stock has a rating of 100% based on its fundamental momentum, twelve minus one momentum, and final rank, indicating strong interest. The stock's fundamental momentum and price momentum are both positive, and it has a high return on equity and return on assets. The stock also has a low net payout ratio and high gross profit to assets.

Celestica Inc. (CLS) has been a subject of significant interest among institutional investors and analysts alike. The technology company, which provides supply chain solutions in North America, Europe, and Asia, has seen a substantial increase in its shareholding by various institutional investors. According to its most recent Form 13F filing with the Securities & Exchange Commission, Townsquare Capital LLC significantly increased its stake in Celestica by 165.4% in the first quarter, owning a total of 16,901 shares valued at approximately $1.33 million [1].

Celestica's financial performance has been robust, with earnings of $1.39 per share for the most recent quarter, exceeding expectations. Revenue increased by 21.0% year-over-year to $2.89 billion. Several other hedge funds and institutional investors have also made notable changes to their positions in Celestica. Rezny Wealth Management Inc. purchased a new position valued at about $1,235,000, while Forsta AP Fonden purchased a new position valued at about $4,677,000. Swiss National Bank increased its holdings by 43.6%, and Pinpoint Asset Management Ltd increased its holdings by 4,482.2% [1].

The company's stock has been performing well, with a 30% increase in the past year. As of July 2, 2025, Celestica's stock has a market capitalization of $23.51 billion, a PE ratio of 44.24, and a beta of 1.80. Analysts have been bullish on the stock, with two research analysts rating it with a hold rating, ten giving a buy rating, and two issuing a strong buy rating. The average rating is "Buy" with a consensus target price of $168.92 [1].

Celestica's strong fundamentals, including a high return on equity and return on assets, and its low net payout ratio, make it an attractive investment. However, the stock's high P/E ratio suggests that it may be overvalued in the short term. Investors should consider the stock's valuation and potential risks, such as the hardware cycle, which can turn fast and lead to sharp corrections if orders slow.

In conclusion, Celestica Inc. (CLS) is a large-cap growth stock that has been receiving significant attention from institutional investors and analysts. Its strong financial performance and robust fundamentals make it an attractive investment, but investors should also consider the stock's valuation and potential risks.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-celestica-inc-nysecls-shares-purchased-by-townsquare-capital-llc-2025-08-14/