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's share price has doubled, outperforming the S&P 500, driven by AI-driven CapEx and hyperscale data center demand. Strong product portfolio targets $29 billion AI switching market by FY29, with 42% YoY EBITDA growth validating bullish projections. ES1500 switch launch boosts AI-edge and IoT opportunities, offering 2.5x faster port speeds than its predecessor ES1000.
In the most recent trading session, Celestica (CLS) closed at $159.26, indicating a +2.81% shift from the previous trading day.
Celestica, Inc. CLS has surged 67.9% in the year-to-date period compared with the Electronics - Manufacturing Services industry's growth of 44.7%. The stock has outperformed the Zacks Computer & Technology sector and the S&P 500 during the same time frame.
Without the requisite experience, it's always tempting to buy stocks on a roaring rally instead of trim positions. I suggest that you take the latter approach here. Celestica may be a remarkably company with a remarkable secular growth opportunity, but valuation trumps all other financial positives. A great company at a bad valuation is a bad investment. Consider looking into healthcare's Eli Lilly as the next value opportunity. AI stocks have already recalibrated to fair and overvaluation. Healthcare is slower to react and will expand in 2026.
CLS posts strong revenue growth as AI-fueled demand boosts HPS sales and new switch products gain momentum.
Celestica (CLS) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Here is how Celestica (CLS) and Allient (ALNT) have performed compared to their sector so far this year.
Recently, Zacks.com users have been paying close attention to Celestica (CLS). This makes it worthwhile to examine what the stock has in store.
CLS bets on edge-AI growth with its new ES1500 switch, offering faster speed, scalability and compact design.
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.
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