Celestica (CLS) Soars 3.14% on Record Q1 Earnings

Celestica's (CLS) share price surged to its highest level since February 2025 today, with an intraday gain of 3.14%.

The strategy of buying CLS shares after they reached a recent high and holding for one week yielded strong results over the past five years. The strategy achieved an overall return of 865.96%, significantly outperforming the benchmark return of 56.28%. The excess return generated by the strategy was 809.69%, indicating that it delivered substantial gains relative to the benchmark. Moreover, the strategy's CAGR was 155.21%, which is a strong indicator of its compounding effectiveness. While the strategy had a maximum drawdown of -40.96%, it maintained a relatively high Sharpe ratio of 2.67, suggesting that the risk-adjusted returns were impressive. The volatility of the strategy was 58.04%, which implies that the strategy's returns were not overly reliant on any single factor and had a broad base of contributors.

Celestica has demonstrated remarkable financial growth, with a record 7.1% EBIT margin in Q1 FY 2025. The company's sales increased by 19.9%, and earnings per share (EPS) rose by 39.5%. This strong financial performance has significantly boosted investor confidence, contributing to an 85% surge in stock price since April.

Analysts have also shown optimism towards Celestica. BNP Paribas Exane analyst Karl Ackerman initiated coverage with an Outperform rating, further enhancing investor confidence and driving stock performance.

Celestica's AI-driven CCS segment has emerged as a significant revenue generator. With expectations for HPS revenue to potentially triple by 2027, this AI-driven growth trajectory is a key factor in its strong market position and continued stock price appreciation.