Shares of Lumentum Holdings (NASDAQ:LITE | LITE Price Prediction) surged 14% to $932 on Wednesday afternoon after a blowout fiscal Q4 report the prior evening.
CLS Holdings plc (CLIHF) Q2 2026 Earnings Call Transcript
MU, STX, FIX, VRT and CLS are growth stocks for August, with AI-driven demand highlighting opportunities in the ongoing market rally.
Celestica Inc. delivered a strong Q2 CY26, with accelerating AI networking switch revenues and significant gross margin expansion. CLS is capitalizing on hyperscaler demand by investing $1B in capex, securing raw materials to support unprecedented growth and margin resilience. The recent $3B equity offering, while dilutive short-term (~8.4–10%), strategically funds capex and positions CLS for sustained high growth and margin expansion.
Celestica is positioned as a key AI infrastructure supplier, benefiting from hyperscaler investments in data centers, cloud, and high-speed networking. CLS's Connectivity and Cloud Solutions segment drives rapid growth, with an 84% YOY revenue increase and a major catalyst in the 1.6T networking platform ramp through 2027. My base case values CLS at $434/share (31% upside), assuming $34.24B revenue, 9% margin, and $20.66 EPS in 2027, supported by accelerating earnings and margin expansion.
Celestica (CLS) could produce exceptional returns because of its solid growth attributes.
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From a technical perspective, Celestica (CLS) is looking like an interesting pick, as it just reached a key level of support. CLS recently overtook the 50-day moving average, and this suggests a short-term bullish trend.
Celestica gains from AI networking demand, hyperscaler spending and strategic partnerships as earnings estimates rise despite trading at a premium.
It's finally time to upgrade Celestica to Buy as the stock finds a firm footing at the $280 level, driven by re-energized bullish sentiments in the AI value chain. CLS benefits from deepened co-design partnerships with AMD and OpenAI, lowering revenue concentration risks and expanding beyond traditional hyperscaler workloads. Q2 results were clearly strong, with revenue up 62%, adjusted operating margins at 8.2% (above guidance), and management guided Q3 margin even higher.
The mean of analysts' price targets for Celestica (CLS) points to a 31% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.
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.