Celestica Surges 1.75 as $1.61 Billion Trading Volume Pushes It into Top 53 Most Active Stocks Amid Earnings Beat and Raised Guidance

Market Snapshot

Celestica (CLS) delivered a notable performance on October 27, 2025, with a 1.75% gain in its stock price. The company’s trading volume surged by 89.45% to $1.61 billion, securing a spot among the top 53 most actively traded stocks of the day. This increase in liquidity and price momentum reflects heightened investor interest, likely driven by the company’s recent earnings report and strategic outlook adjustments.

Key Drivers

Celestica’s third-quarter results significantly outperformed expectations, serving as a primary catalyst for the stock’s upward movement. The company reported non-GAAP earnings per share of $1.58, exceeding the $1.47 consensus estimate by $0.11, while revenue reached $3.19 billion, surpassing forecasts by $150 million. These results underscored the company’s strong execution in its Connectivity & Cloud Solutions (CCS) segment, which saw a 43% year-over-year revenue increase. Management attributed this growth to sustained demand for AI-driven data center infrastructure, a trend that aligns with broader industry dynamics in cloud computing and digital transformation.

The company’s raised 2025 and 2026 guidance further reinforced investor confidence. Celestica now projects $12.2 billion in 2025 revenue, up from its prior $11.55 billion forecast, and $5.90 in non-GAAP adjusted EPS, a 7.3% increase from its previous target. For 2026, the company anticipates $16.0 billion in revenue and $8.20 in adjusted EPS, reflecting a 31% and 39% year-over-year growth, respectively. These revisions highlight management’s optimism about the scalability of its CCS segment and the continued strength of customer demand, particularly in the communications and enterprise markets.

Financial health metrics also contributed to the stock’s positive reception. Celestica’s operating margin expanded to 7.6% in Q3, a 0.8 percentage-point increase from the prior year, while its net margin stood at 4.93%. The company maintained a conservative debt structure, with a debt-to-equity ratio of 0.5 and an interest coverage ratio of 18.73, indicating robust liquidity and financial flexibility. However, valuation concerns linger, as the stock’s P/E ratio of 65.33 and P/S ratio of 3.37 approach their 10-year highs. Analysts noted that the market has already priced in much of Celestica’s growth potential, raising questions about future upside.

Despite the strong fundamentals, caution persists due to mixed signals in market sentiment. Institutional ownership remains high at 69.09%, but insider selling activity over the past year—18 transactions with no purchases—has raised eyebrows. Additionally, the stock’s relative strength index (RSI) of 67.09 suggests it is nearing overbought territory, potentially setting the stage for short-term volatility. While the Piotroski F-Score of 7 and Beneish M-Score of -2.31 indicate strong financial integrity and low earnings manipulation risk, the company’s beta of 2.34 highlights its heightened sensitivity to market fluctuations, a factor that could amplify both gains and losses in a volatile environment.

The interplay of these factors—robust earnings, optimistic guidance, and valuation pressures—has created a complex landscape for Celestica investors. While the company’s strategic positioning in the data center infrastructure market and operational efficiency provide a solid foundation, the elevated valuations and insider activity serve as cautionary signals. As the stock approaches historical highs, investors must weigh its growth potential against the risks of overvaluation and sector-specific volatility.