Recently, Zacks.com users have been paying close attention to Celestica (CLS). This makes it worthwhile to examine what the stock has in store.
Celestica (CLS) concluded the recent trading session at $93.82, signifying a -1.35% move from its prior day's close.
The growth outlook is strong, driven by tailwinds in the CCS segments' end markets. The mix-shift driven EBIT margin thesis is playing out and has more runway as the higher-margin CCS is expected to continue outgrowing ATS. Inventory reduction is improving net working capital intensity, which can lead to a higher base of FCF conversion.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Celestica (CLS) concluded the recent trading session at $93.05, signifying a +1.02% move from its prior day's close.
Celestica (CLS) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Celestica (CLS) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
Celestica's stock surged 45.81% since my last article, driven by a significant EPS and revenue beat, reinforcing my strong buy recommendation. The CCS segment's rapid growth and higher margins are key drivers, contributing to firm-level revenue and EPS expansion. Management's conservative 2025 outlook is likely understated, with analysts buying into this narrative.
Riding on a robust earnings surprise history and favorable Zacks Rank, CLS appears primed for further stock price appreciation.
Celestica has been able to build a commanding position across a range of key sectors in recent years, supporting a Buy rating. Strong growth in earnings, a robust balance sheet, and tactical investments in technology set the company apart from competitors. After a tremendous rally in recent years, I still see further growth as sectors continue to surge.
Celestica's stock has surged, tripling in value over eleven months, but short-term upside appears limited due to overextended daily price charts and negative momentum divergence. Despite overbought conditions, long-term fundamentals remain strong, with impressive EPS growth driven by operating leverage and share repurchases, though margin expansion may slow. Valuation concerns arise as Celestica's stock trades at 21X forward earnings, limiting multiple expansion potential and suggesting more muted expectations for 2025.
Celestica (CLS) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.