Why investors should use the Zacks Earnings ESP tool to help find stocks that are poised to top quarterly earnings estimates.
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.
Recently, Zacks.com users have been paying close attention to Celestica (CLS). This makes it worthwhile to examine what the stock has in store.
In the most recent trading session, Celestica (CLS) closed at $248.03, indicating a -4.99% shift from the previous trading day.
CLS strengthens its AI networking edge with twin 1.6TbE switch launches, fueling optimism for further stock gains.
Five AI infrastructure players namely, CRDO, WDC, CLS, MU and UI have notched triple-digit returns YTD, with momentum still building into Q4.
Celestica has consistently beaten guidance, but Q3's expected beat might be less impactful than prior quarters, potentially leading to market consolidation despite strong fundamentals. The stock's explosive rally has priced in much of the future growth, making its current valuation stretched and limiting immediate upside for new investors. The revenue mix shift towards higher-margin HPS within CCS is a multi-year driver, but the gap between segment and consolidated margins is narrowing, signaling potential EPS growth deceleration.
In the closing of the recent trading day, Celestica (CLS) stood at $237.79, denoting a +1.04% move from the preceding trading day.
Celestica trades at a high 45x forward earnings multiple, driven by strong AI hardware demand and rapid EPS growth projections. The CCS segment is the main growth engine, now representing 68% of revenue and 79% of earnings, with expanding margins lifting overall profitability. Management guidance for 2025 is conservative, but CLS has a history of outperforming estimates, supported by buybacks and strategic customer relationships.
Celestica (CLS) closed at $251.69 in the latest trading session, marking a +2.16% move from the prior day.
I maintain a Buy rating on Celestica Inc. Celestica's strong 2Q fueled by surging demand for 800G data center hardware. Revenue jumped 21% and adjusted EPS by 54% y/y. CLS is powering the 800G transition for some of the largest hyperscalers. And demand has been strong.
Celestica (CLS) closed the most recent trading day at $247.66, moving 2.65% from the previous trading session.