Key Takeaways CLS margins remain under pressure due to high research and development costs. Temporary U.S. exemptions aid CLS' CCS segment, which includes servers and networking switches. Despite margin headwinds, CLS shares have surged 125.8% over the past year, outpacing its industry.Celestica Inc. (CLS) remains skeptical of the dynamic macro environment owing to trade policy uncertainty. While the business environment remains fluid with frequent policy adjustments, recent announcements have provided ne ...

Now you can get access to the latest and highest-quality analysis of recent Wall Street buying and selling ideas with just one subscription to Beyond the Wall Investing ! There is a free trial and a special discount of 10% for you. Join us today!I initiated my investment coverage of Celestica Inc. ( CLS ) stock in August 2023, initially with a "Buy" rating, which I then changed to "Hold" and back depending on market conditions and CLS's varying valuation levels. My most recent article on CLSDaniel Sereda is ...

Since my last coverage , Celestica (NYSE: CLS ) has surged over 50% outpacing the S&P 500’s 11% return. Celestica is quietly emerging as one of the strongest high-performance networking plays in the AI hardware stack. Fueled by surging demand for 800G EthernetHi, I'm Yiannis. Spotting winners before they break out is what I do best.Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accountant, Fellow Member of ACCA Global, with BSc ...

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Key Takeaways CLS stock jumped 24.3% in 3 months, beating FLEX, JBL and the broader industry's 15.4% gain. Celestica is riding GenAI momentum with high-speed switches and scalable AI storage platforms. Earnings estimates for CLS rose 5.7% for 2025 and 2.4% for 2026, signaling bullish sentiment.Celestica Inc. (CLS) has gained 24.3% over the past three months compared with the industry’s growth of 15.4%. It has also outperformed peers like Flex Ltd. (FLEX) and Jabil Inc. (JBL) . Flex has gained 17.3% and Ja ...

Core Insights - Celestica Inc. (CLS) has outperformed the industry and peers with a stock gain of 24.3% over the past three months, compared to the industry's 15.4% growth and Flex Ltd. (FLEX) and Jabil Inc. (JBL) gains of 17.3% and 14.7% respectively [1][7]. Company Overview - With over two decades of manufacturing experience, Celestica focuses on next-generation, cloud-optimized data storage and AI networking solutions, operating primarily as a behind-the-scenes partner for electronics businesses [2]. - The company provides a comprehensive range of services in the electronics market, including design, manufacturing, and supply chain management [2]. Growth Drivers - The ongoing generative AI (GenAI) boom has significantly benefited Celestica, driven by strong demand for AI/ML compute and networking products from hyperscale customers [5]. - Key products include the high-performance 800G family of network switches and storage solutions like the SC6100 controller and SD6200 platform, which are essential for AI applications [5][6]. - Celestica's innovative Photonic Fabric solution enhances AI infrastructure, supporting scalable and sustainable business models [5]. Financial Performance - Earnings estimates for Celestica have increased by 5.7% for 2025 to $5.05 and by 2.4% for 2026 to $6.07, indicating positive sentiment regarding the company's growth potential [8][7]. Market Environment - Despite strong demand trends, Celestica expresses skepticism about the macro environment due to trade policy uncertainties, although recent U.S. government exemptions for key IT hardware provide some near-term clarity [9]. - The company is actively collaborating with customers to navigate the evolving policy landscape [9]. Challenges - Celestica faces ongoing margin pressures due to high research and development costs associated with sophisticated products, leading to high operating expenses [10][15]. - The company competes with industry giants like Foxconn, Jabil, Flex, and Sanmina Corporation, as well as smaller regional players, in a highly cyclical semiconductor industry [11]. Future Outlook - As production volumes increase and costs decrease, the potential applications for silicon photonics are expected to expand across various industries, positioning Celestica for sustained growth [14].

Company Overview - Celestica is one of the largest electronics manufacturing services companies globally, headquartered in Ontario, Canada, serving original equipment manufacturers and various service providers across multiple industries [11] - The company offers a wide range of manufacturing and supply-chain solutions, including design and development, engineering services, electronics manufacturing and assembly, and IT asset management [11] Investment Insights - Celestica holds a Zacks Rank of 3 (Hold) with a VGM Score of A, indicating a solid position in the market [12] - The company has a Momentum Style Score of B, with shares increasing by 30.4% over the past four weeks [12] - Recent analyst activity shows three analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate rising by $0.27 to $5.05 per share [12] - Celestica has an average earnings surprise of 7.4%, suggesting potential for positive performance [12] Conclusion - With a strong Zacks Rank and favorable Momentum and VGM Style Scores, Celestica is positioned as a noteworthy option for investors [13]

Core Insights - The article highlights the investment strategies and achievements of Paul Franke, a seasoned investor with 38 years of trading experience, emphasizing his contrarian stock selection style and algorithmic analysis [1] Group 1: Investment Strategies - Paul Franke developed a system called "Victory Formation," which focuses on identifying supply/demand imbalances through specific stock price and volume movements [1] - The "Bottom Fishing Club" articles target deep-value stocks or those showing significant upward technical momentum reversals [1] - "Volume Breakout Report" articles analyze positive trend changes supported by strong price and volume trading actions [1] Group 2: Performance and Recognition - Franke was consistently ranked among the top investment advisors nationally during the 1990s and achieved the 1 position in the Motley Fool® CAPS stock picking contest in 2008 and 2009 out of over 60,000 portfolios [1] - As of September 2024, he is ranked in the Top 3% of bloggers by TipRanks® for 12-month stock picking performance over the last decade [1] Group 3: Risk Management - Franke advises investors to implement stop-loss levels of 10% or 20% on individual stock choices and to maintain a diversified portfolio of at least 50 well-positioned stocks to enhance regular stock market outperformance [1]

Core Viewpoint - Celestica Inc. and Plexus Corp are prominent players in the electronics manufacturing services (EMS) industry, each with distinct strengths and challenges in their respective market segments [1][2][3]. Group 1: Company Overview - Celestica is one of the largest EMS companies globally, providing a wide range of manufacturing and supply-chain solutions to various industries [1]. - Plexus specializes in electronic contract manufacturing services across multiple sectors, including Healthcare, Industrial, and Aerospace/Defense [2]. Group 2: Competitive Dynamics - Plexus is experiencing growth in the Healthcare/Life Sciences and Aerospace/Defense sectors, driven by strong customer demand and program ramps [4]. - Celestica is capitalizing on the growing AI demand, with products like the SC6100 storage controller and DS4100 switch gaining traction in enterprise applications [7]. Group 3: Financial Metrics - Plexus has a debt-to-capital ratio of 0.13, significantly lower than the industry average of 0.46, indicating strong financial health [5]. - Celestica's debt-to-capital ratio stands at 0.37, also below the industry average, with a current ratio of 1.43, reflecting good liquidity [9]. Group 4: Growth Estimates - The Zacks Consensus Estimate projects Celestica's 2025 sales and EPS to grow by 13.15% and 30.15%, respectively [12]. - For Plexus, the 2025 sales growth is estimated at 2.64%, with EPS growth at 20.98%, although the EPS estimate for 2026 is trending downward [12]. Group 5: Price Performance - Over the past year, Celestica's stock has increased by 112.4%, outperforming the industry growth of 46.7%, while Plexus has gained 15.2% [14]. - Plexus shares trade at a forward P/E ratio of 17.98, lower than Celestica's 20.69, making Plexus appear more attractive from a valuation perspective [16]. Group 6: Investment Outlook - Celestica's focus on AI and cloud technologies has led to impressive revenue and EBITDA growth, positioning it as a more favorable investment option compared to Plexus, which faces challenges [18].

Group 1 - The article emphasizes the importance of delivering alpha-generating investment ideas through a structured and evidence-based approach [1] - The investment strategy involves a generalist approach, analyzing and investing in various sectors with perceived alpha potential compared to the S&P 500 [1] - The typical holding period for investments ranges from a few quarters to multiple years, indicating a long-term investment perspective [1] Group 2 - The author has a beneficial long position in CLS shares, indicating confidence in the stock's performance [2] - The article expresses the author's personal opinions and is not influenced by any compensation from companies mentioned [2] - There is no business relationship with any company whose stock is discussed, ensuring an independent viewpoint [2]