When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
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 continues to demonstrate strong revenue growth and substantial operating leverage as it capitalizes on secular trends in AI and data centers. The company's revenue and EBITDA growth are unmatched by industry peers, indicating that Celestica is gaining market share at the expense of its rivals. The management is confident that the company will be able to sustain strong growth momentum, which is evident from the full year guidance boost.
Celestica (CLS) possesses solid growth attributes, which could help it handily outperform the market.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
I downgraded Celestica stock to "Hold" 6 months ago due to valuation concerns, but the recent Q2 FY2024 results have led to an upgrade back to Buy. Read on. Q2 performance showed strong growth in the CCS segment, offsetting weakness in the ATS segment, leading to increased revenue and margins. Overall, Celestica's business growth isn't slowing. According to my DCF model, the stock is undervalued by approximately 68.7% - hence the upgrade to Buy.
Recently, Zacks.com users have been paying close attention to Celestica (CLS). This makes it worthwhile to examine what the stock has in store.
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 (NYSE: CLS) is an American technology company.
Celestica Inc. (NYSE:CLS ) Q2 2024 Earnings Conference Call July 25, 2024 8:00 AM ET Company Participants Craig Oberg - Vice President, IR & Corporate Development Rob Mionis - President & Chief Executive Officer Mandeep Chawla - Chief Financial Officer Conference Call Participants Thanos Moschopoulos - BMO Capital Markets Matthew Sheerin - Stifel Nicolaus Steven Fox - Fox Advisors Daniel Chan - TD Cowen Paul Treiber - RBC Capital Markets Jesse Pytlak - Cormark Securities Todd Coupland - CIBC Operator Good morning, ladies and gentlemen, and welcome to the Celestica Q2 2024 Earnings Call. At this time, all lines are in listen-only mode.
Celestica (CLS) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.82 per share. This compares to earnings of $0.55 per share a year ago.
Celestica (CLS) possesses solid growth attributes, which could help it handily outperform the market.