Celestica (CLS) is a leading electronics manufacturing services company that is trading at new all-time highs. Shares are up 340% over the past year and 25% over the past month. CLS has a 100% “Buy” Barchart opinion and a Trend Seeker “Buy” signal intact. Despite a consensus “Strong Buy” rating, some caution is advised due to CLS’s high valuation. Today’s Featured Stock Valued at $34.12 billion, Celestica (CLS) is one of the largest electronics manufacturing services company in the world, servi ...

Core Insights - Celestica Inc. is set to release its third-quarter earnings results on October 27, with analysts expecting earnings of $1.49 per share, an increase from $1.04 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $3.04 billion, compared to $2.5 billion a year earlier [1] Recent Performance - On July 28, Celestica reported better-than-expected second-quarter results and raised its FY25 guidance, leading to a 4.9% increase in share price, closing at $296.62 [2] Analyst Ratings - RBC Capital analyst Paul Treiber maintained an Outperform rating and raised the price target from $225 to $315 [4] - Goldman Sachs analyst Michael Ng initiated coverage with a Buy rating and a price target of $340 [4] - TD Cowen analyst Daniel Chan reinstated a Hold rating with a price target of $238 [4] - JP Morgan analyst Samik Chatterjee maintained an Overweight rating and increased the price target from $225 to $295 [4] - Citigroup analyst Atif Malik maintained a Neutral rating and boosted the price target from $172 to $212 [4]

Group 1 - Celestica (CLS) stock has surged approximately 206% this year, driven by strong demand for data center services and artificial intelligence computing equipment [1] - The stock is currently at a high but may experience a pullback, which could help it form a base for future growth [1] - Celestica holds the top position in the IBD 50 list of growth stocks, indicating strong market performance [1] Group 2 - Broadcom is highlighted as one of the best stocks in earnings performance, boasting a 98 EPS Rating, one of the highest in the semiconductor industry [2]

Core Insights - Celestica, Inc. is set to report Q3 2025 earnings on October 27, with sales estimated at $3.02 billion and earnings per share (EPS) at $1.47, reflecting a positive trend in earnings estimates for 2025 and 2026 [1][7] Earnings Performance - The company has a strong earnings surprise history, with an average surprise of 7.71% over the last four quarters, consistently exceeding earnings expectations [2][3] Earnings Predictions - A positive Earnings ESP of +2.49% and a Zacks Rank of 2 (Buy) suggest a likely earnings beat for the upcoming quarter [4] Product Innovations - Celestica introduced the SC6110, a next-generation storage controller designed for AI infrastructure and high-performance computing, which is expected to enhance its market position [5][8] Market Demand - The company anticipates solid net sales growth from the Enterprise segment, driven by a large hyperscaler customer beginning mass production and increasing demand for 400G and 800G switches [10] Stock Performance - Over the past year, Celestica's stock has surged by 339.1%, significantly outperforming the industry average of 121.2% and competitors like Flex Ltd. and Jabil Inc. [11] Valuation Metrics - Celestica's shares are trading at a forward P/E ratio of 43.18, which is above the industry average of 25.87 and its historical mean of 24.93, indicating a premium valuation [12] Industry Trends - The demand for power-efficient and scalable hardware solutions is increasing due to the growing complexity of AI workloads across various industries, positioning Celestica favorably in the market [15] Supply Chain Resilience - The company's diversified manufacturing network across 16 countries and robust inventory management strategies are helping to mitigate supply chain challenges, enhancing reliability among customers [16] Financial Health - Strong revenue growth and a stable cash cycle indicate effective capital management, which is expected to drive free cash flow and maintain a competitive edge in the electronics manufacturing services sector [17] Future Outlook - With a comprehensive portfolio and strong demand for networking products and AI-driven data center investments, Celestica is well-positioned for continued stock price appreciation, supported by positive earnings estimate revisions [18]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Celestica (CLS) - Celestica currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance in the market [2][3] - The stock has shown significant price increases, with a 13.43% rise over the past week, outperforming the Zacks Electronics - Manufacturing Services industry, which increased by 11.09% during the same period [5] - Over the past quarter, CLS shares have risen by 41.46%, and over the last year, they have surged by 316.15%, while the S&P 500 has only moved 6.22% and 17.55%, respectively [6] Trading Volume - The average 20-day trading volume for CLS is 2,582,815 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, one earnings estimate for CLS has increased, raising the consensus estimate from $5.55 to $5.58, with two upward revisions for the next fiscal year and no downward revisions [9] Conclusion - Considering the positive momentum indicators and earnings outlook, CLS is positioned as a promising stock to watch for near-term gains, supported by its 2 (Buy) rating and Momentum Score of B [11]

Core Insights - Celestica (CLS) is positioned to continue its earnings-beat streak, having a history of exceeding earnings estimates, particularly in the last two reports [1][2] - The company has an average surprise of 10.10% over the past two quarters, with the most recent earnings reported at $1.39 per share, surpassing the expected $1.24 by 12.10% [2][5] - Recent estimates for Celestica have been increasing, with a positive Earnings ESP of +2.49%, indicating bullish sentiment among analysts [5][8] Earnings Performance - In the previous quarter, Celestica reported earnings of $1.20 per share against an expectation of $1.11, resulting in a surprise of 8.11% [2] - The upcoming earnings report is anticipated on October 27, 2025, with expectations for continued strong performance [8] Earnings ESP and Zacks Rank - The Zacks Earnings ESP metric suggests that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of beating consensus estimates [6][7] - Celestica's current Zacks Rank is 2 (Buy), which, combined with its positive Earnings ESP, indicates a strong likelihood of another earnings beat [8]

Group 1 - Celestica (NYSE: CLS) is benefiting from a strategic shift towards serving large hyperscale customers in the communications end market [1] - Key margins for Celestica have been consistently improving [1] Group 2 - Novo Capital's analyst has developed a resilient methodology focusing on corporate valuation, due diligence for investment opportunities, and crafting accurate forecasts [1] - The goal of Novo Capital is to discuss investment ideas and gain "alpha" through out-of-consensus information [1]

Core Insights - Celestica Inc. (NYSE:CLS) is highlighted as a strong investment opportunity with a Buy rating and a price target of $350 from Aletheia Capital [1] - The company is positioned as a key manufacturing partner for Google's TPU modules and networking switches, and plans to onboard OpenAI for its Capricorn server, the first ASIC-based AI server [1] Group 1: Financial Projections - Aletheia Capital anticipates that the deployment of Gothfish and Zebrafish ASIC servers for Google will significantly increase unit and content value, potentially doubling Celestica's enterprise revenue for fiscal 2026 and adding another 50% growth for fiscal 2027 [2] - The firm expects communication sales to triple from fiscal 2024 to fiscal 2027, reaching $12.6 billion, driven by 800Gbps switch upgrades for AI infrastructure at Amazon and Google [3] Group 2: Company Overview - Celestica Inc. designs and manufactures hardware platforms and provides supply chain solutions, operating through two main segments: Advanced Technology Solutions and Connectivity & Cloud Solutions [3]

Core Insights - The discussion centers around the significant investments in technology and infrastructure, particularly in the context of demand outpacing supply, with a focus on companies that are positioned to benefit from this trend [2][6]. Investment Strategy - The investment strategy suggests focusing on companies with a market cap of $500 billion or less, as they are expected to have substantial growth potential [3][4]. - Specific companies highlighted include Celestica (CLS) and Verdiff (VRT), which are involved in hardware manufacturing and data center operations, respectively [4][5]. Market Valuation and Trends - Current market valuations have increased significantly, driven by excitement around AI, but high valuations do not necessarily indicate an impending market sell-off [8][9]. - The expectation for slower returns in the remainder of the year is noted, with a target for the S&P 500 set at 6,700, indicating limited upside potential [11][12]. Economic Factors - The importance of both the AI narrative and Federal Reserve policies is emphasized, with the AI trade being viewed as more critical for market direction [12][13]. - Concerns are raised about the Fed's potential interest rate cuts in an environment of persistent core inflation above 3%, which is atypical and could pose risks [14].

Core Insights - Celestica's stock has seen a significant increase of 168% in 2025, indicating strong market performance and investor confidence [4] - Goldman Sachs has initiated coverage of Celestica with a buy rating and a price target of 340, suggesting a potential 19% upside from current levels around 286 [1] Company Performance - Celestica's stock reached record highs following positive analyst ratings, particularly from Goldman Sachs [1] - The company is recognized as a key supplier of data center equipment for hyperscalers, which positions it well in a growing market [1] Market Trends - The overall stock market opened higher, influenced by positive earnings reports and guidance from companies like Celestica [1] - Fabrinet, another data center equipment supplier, also experienced a rise in stock price, reflecting a bullish sentiment in the sector [1]