Twin Momentum Investor Model Scores 100% on CELESTICA INC (CLS)

CELESTICA INC (CLS) is a large-cap growth stock in the Semiconductors industry. Based on Dashan Huang's Twin Momentum Investor model, the stock receives a 100% rating due to its fundamental momentum and price momentum. The model combines traditional price momentum with improving fundamentals to generate market outperformance. The stock outperforms the market when it is in the top 20% of the universe according to the fundamental momentum measure, and when combined with price momentum, it doubles its outperformance.

Celestica Inc (CLS) shares surged to a record high on July 2, 2025, with an intraday gain of 5.30%. The stock's recent performance can be attributed to several key factors, including strong revenue growth driven by increasing demand for AI applications and new product launches [3].

Celestica's stock received a 100% rating from Validea's Twin Momentum Investor model, which combines traditional price momentum with improving fundamentals [1]. This model, developed by Dashan Huang, an Assistant Professor of Finance at Singapore Management University, has shown that stocks in the top 20% of the universe according to the fundamental momentum measure outperform the market. When combined with price momentum, the outperformance is doubled [1].

The company's High-Performance Switch (HPS) sales have been particularly boosted by AI-fueled demand, while new switch products are gaining momentum. Additionally, Celestica's Cloud Computing Solutions (CCS) segment is rapidly gaining share among hyperscalers, further strengthened by next-generation product launches and a strong positioning in AI/ML networking [3].

Several institutional investors have recently increased their stakes in Celestica. Sharpepoint LLC bought 18,515 shares in the first quarter, while FMR LLC grew its holdings by 91.2% during the fourth quarter. Other notable investors include FIL Ltd, Norges Bank, Polar Capital Holdings Plc, and Arrowstreet Capital Limited Partnership, which all increased their positions in Celestica [2].

Analysts have also shown interest in Celestica. JPMorgan Chase & Co. increased their price target to $115.00 and gave the company an "overweight" rating. BNP Paribas raised Celestica to a "strong-buy" rating, while CIBC reduced their price objective to $120.00 and set an "outperformer" rating. Two research analysts have rated the stock with a hold rating, nine have issued a buy rating, and two have issued a strong buy rating to the company [2].

Celestica's latest quarterly earnings data showed a strong performance, with earnings per share (EPS) of $1.20, beating the consensus estimate of $1.10. The company reported revenue of $2.65 billion, up 19.9% year-over-year. The stock has a market cap of $18.53 billion, a P/E ratio of 44.40, and a beta of 1.81 [2].

In conclusion, Celestica Inc (CLS) shares have been performing well, driven by strong AI demand and positive analyst ratings. The company's focus on AI and ML technologies, along with its ability to innovate and meet market demands, positions it well for continued growth and success in the tech industry.

References:
[1] https://www.nasdaq.com/articles/cls-quantitative-stock-analysis-1
[2] https://www.marketbeat.com/instant-alerts/filing-sharpepoint-llc-buys-shares-of-18515-celestica-inc-nysecls-2025-07-10/
[3] https://www.ainvest.com/news/celestica-cls-shares-soar-5-30-ai-demand-2507/