Celestica is well positioned in the AI hardware value chain, with HPS driving significant growth, but margins remain single-digit and value accrues upstream. HPS's share of revenue is set to rise from 21% in 2023 to 41% in 2025, reflecting strong execution on 1.6T programs and engineering investments. CLS trades at a demanding 35x earnings and 79x FCF, requiring 50%+ EPS growth and FCF above $1.2B by 2027 to justify the current valuation.
In the most recent trading session, Celestica (CLS) closed at $334.77, indicating a -2.97% shift from the previous trading day.
Consensus forecasts Celestica's revenue growth accelerating from 55.55% to 57.24% YoY through FY26, supported by the 1.6T networking production ramp. Analysts issued 16 upward EPS revisions and 13 revenue revisions, with zero downward revisions, reinforcing confidence ahead of July 28 earnings. Celestica has beaten EPS estimates in eight consecutive quarters and revenue in seven of the last eight, supporting expectations of another quarterly beat.
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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.
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Celestica stock has done well in the past few years, helped by the ongoing artificial intelligence (AI) boom. Its US stock has jumped by 125% in the last 12 months and by over 4,500% in the last five years.
Celestica (CLS) concluded the recent trading session at $345.06, signifying a -1.47% move from its prior day's close.
CLS trails peers amid margin and ATS woes, but AI demand, diverse markets and higher estimates highlight its growth case for cautious investors.
CLS' industrial and smart energy solutions support automation, EV charging and clean energy systems, positioning it for long-term growth.
Celestica (CLS) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
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.