Celestica (CLS) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Zacks.com users have recently been watching Celestica (CLS) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Celestica is a key enabler in the AI infrastructure buildout, assembling custom hardware for hyperscalers and benefiting from surging AI demand. Strong partnerships with major cloud customers and hyperscalers are driving significant market share gains and robust revenue growth in networking switches. Celestica's revenue and EPS growth far outpace sector medians, reflecting strong execution, margin expansion, and cost control in high-value AI infrastructure segments.
Celestica (CLS) reached $162.41 at the closing of the latest trading day, reflecting a +1.44% change compared to its last close.
As AI reshapes the EMS landscape, Jabil and Celestica take several initiatives to capitalize on the emerging market trend.
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?
Celestica's HPS sub-segment is driving structural margin expansion and higher profitability, supporting my continued bullish stance despite recent stock outperformance. Consensus Q2 estimates appear conservative given Celestica's strong track record of earnings beats and ongoing share gains with hyperscalers, setting up for another positive surprise. The new ES1500 networking switch provides a strong future growth narrative that should boost investor sentiment and lead to positive forward earnings revisions.
Celestica has climbed 74% since the first call, yet its EV/Sales remains ~44% below peer average, signaling asymmetry. Q2 consensus EPS is $1.22 with 10 estimate upgrades and zero downgrades, highlighting strong analyst confidence and momentum. Record adjusted operating margin of 7.1% and trailing twelve-month ROIC of 31.5% prove durable cash flow quality.
Celestica (CLS) closed the most recent trading day at $158.83, moving 1.29% from the previous trading session.
CLS rides the rising AI hardware demand with innovative switches and storage solutions targeting data centers and edge AI.
Celestica's CCS segment is rapidly gaining share among hyperscalers, driven by next-gen product launches and strong positioning in AI/ML networking. Valuation risk is rising, with CLS trading at a 63% premium to comps, mostly due to multiple expansion rather than earnings growth. The trend on the CLS vs SPX500 technical charts remains firmly bullish, with no signs of seller pressure.
Recently, Zacks.com users have been paying close attention to Celestica (CLS). This makes it worthwhile to examine what the stock has in store.