Core Insights - Celestica (NYSE: CLS) has doubled in value since coverage initiation, significantly outperforming the S&P 500, driven by strong demand in AI-driven capital expenditures [1] Company Analysis - Leadership & Management: Celestica demonstrates a proven track record in scaling businesses, smart capital allocation, and insider ownership, alongside consistent revenue growth and credible guidance [1] - Financial Health: The company exhibits sustainable revenue growth with efficient cash flow, a strong balance sheet, and a long-term survival runway, while avoiding excessive dilution and financial weakness [1] Market Positioning - Competitive Advantage: Celestica benefits from a strong technology moat and first-mover advantage, with network effects that drive exponential growth and market penetration in high-growth industries [1] Investment Methodology - Valuation: The analysis includes revenue multiples compared to peers and DCF modeling, with a focus on institutional backing and market sentiment to ensure downside protection while maximizing upside potential [1] - Portfolio Construction: The investment strategy includes core positions (50-70%), growth bets (20-40%), and speculative investments (5-10%) to balance risk and reward [1]

Group 1 - Celestica's stock increased by 2.81% to $159.26, outperforming the S&P 500's gain of 0.83% and the Dow's rise of 0.77% [1] - Over the past month, Celestica's stock has risen by 29.19%, leading the Computer and Technology sector's gain of 8.25% and the S&P 500's gain of 4.99% [1] Group 2 - Celestica is projected to report earnings of $1.23 per share, representing year-over-year growth of 35.16%, with expected revenue of $2.65 billion, a 10.95% increase compared to the previous year [2] - For the full year, analysts expect earnings of $5.05 per share and revenue of $10.91 billion, marking changes of +30.15% and +13.15% respectively from last year [3] Group 3 - Recent modifications to analyst estimates for Celestica reflect short-term business trends, with positive revisions indicating a favorable outlook on business health and profitability [4] - The Zacks Rank system, which incorporates estimate changes, provides an actionable rating system, with Celestica currently holding a Zacks Rank of 3 (Hold) [5][6] Group 4 - Celestica is trading with a Forward P/E ratio of 30.65, which is a premium compared to the industry average Forward P/E of 21.91 [7] - The Electronics - Manufacturing Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 42, placing it in the top 18% of over 250 industries [7][8]

Core Insights - Celestica, Inc. (CLS) has experienced a significant stock surge of 67.9% year-to-date, outperforming the Electronics - Manufacturing Services industry's growth of 44.7% and the broader Computer & Technology sector as well as the S&P 500 [1][8] Company Performance - The company has outperformed peers such as Jabil, Inc. (JBL) and Sanmina Corporation (SANM), with Jabil's shares increasing by 54.2% and Sanmina's by 33.8% [2][8] - Celestica's strong research and development capabilities enable it to produce high-volume electronic products and complex technology infrastructure products across various industries, enhancing its market penetration [3][8] Market Position - The company maintains a strong presence in multiple sectors, including aerospace and defense, industrial, communications, enterprise, HealthTech, and capital equipment, which helps reduce dependence on any single industry [4][8] - In Q1 2025, Celestica's current ratio was 1.43, surpassing the industry's 1.19, indicating a solid position to meet short-term obligations. The times interest earned improved to 11.4 from 6.2 a year ago, and the debt-to-capital ratio is 37.7%, compared to the industry's 45.9% [5][8] Challenges and Competition - The Electronics - Manufacturing industry is highly competitive, with significant competition from giants like Foxconn, Jabil, and Sanmina, as well as smaller regional players [6][8] - Jabil is gaining traction in the AI data center infrastructure market, which could challenge Celestica's prospects in that vertical. Sanmina is also enhancing its position in the data center vertical through a $3 billion acquisition [9][10] Global Exposure - Celestica generates a significant portion of its revenues outside North America, making it vulnerable to geopolitical volatility and foreign exchange fluctuations [11][8] Future Outlook - Earnings estimates for Celestica for 2025 and 2026 have remained unchanged over the past 60 days, with current estimates at 1.23 for Q1, 1.29 for Q2, 5.05 for FY 2025, and 6.07 for FY 2026 [13][14] - The company is expected to benefit from solid demand for its 400G and 800G switch products, driven by the increasing use of high bandwidth-intensive AI applications [15][8]

Group 1 - Celestica Inc. (NYSE: CLS) stock has increased by 65% since the last analysis, indicating a potential time to reduce positions [1] Group 2 - Invictus Origin, founded by Oliver Rodzianko in May 2025, aims to be a globally recognized actively managed fund with innovative portfolio strategies [2] - The flagship Nasdaq High-Alpha Black Swan Portfolio is designed to sustainably outperform the Nasdaq-100 while maintaining approximately 20% in strategic cash reserves for downside protection [2] - Oliver Rodzianko has extensive experience as a macro-focused investment analyst, emphasizing fundamental valuation and sector expertise in technology, semiconductors, artificial intelligence, and energy [2] - The investment process of Invictus Origin integrates U.S. market specialization with international market awareness, aiming for durable outperformance [2] - The firm is characterized by resilience, performance, and disciplined capital stewardship, supported by a family office structure for lower-volatility capital preservation [2]

Core Insights - Celestica, Inc. (CLS) reported a 20% year-over-year revenue increase to $2.64 billion in Q1 2025, driven by strong performance in the Connectivity & Cloud Solutions segment [1] - The company anticipates a revenue of $10.91 billion in 2025, reflecting a 13.15% year-over-year growth, supported by demand in the AI-data center infrastructure market [3] Group 1: Company Performance - CLS experienced significant growth in its High Performance Solutions product lines, with revenues up 99% year-over-year, primarily due to strong sales of 400G and 800G switches [1] - The introduction of innovative products like the ES1500 enterprise access switch and the DS4100 800G switch is enhancing CLS's market position [2] - Celestica's stock has increased by 165.5% over the past year, outperforming the industry growth of 94.7% [7] Group 2: Competitive Landscape - Celestica faces competition from Sanmina Corporation and Jabil, Inc. in the electronics contract manufacturing services sector [4] - Sanmina reported $1.59 billion in revenues for Q2 2025, marking a 9.7% year-over-year growth, with a projected revenue of $8.1 billion for 2025 [5] - Jabil's Intelligent Infrastructure segment generated $3.4 billion in revenues, up 51% year-over-year, with an expected revenue of $29.05 billion for the current fiscal year [6] Group 3: Valuation and Estimates - Celestica's forward price-to-earnings ratio stands at 27.47, which is above the industry average [8] - The Zacks Consensus Estimate for Celestica's earnings for 2025 has remained unchanged over the past 60 days [9]

Core Insights - Celestica Inc. has launched the ES1500, a new 1U campus access switch with up to 48 ports and 2.5GbE per port, aimed at meeting the demands of enterprise edge networks [1][2] - The ES1500 provides up to 220 Gbps of switching capacity and offers 2.5X faster port speeds compared to the previous ES1000 model, catering to edge IoT and edge-AI applications [2][3] - The switch is designed to optimize capital and operational expenditures while ensuring reliability and performance for modern IT infrastructure [2][3] Product Features - The ES1500 supports complex connectivity needs on enterprise campuses, addressing the increasing number of IoT devices and AI-intensive workloads [3] - It includes features such as cost-effectiveness with scalable access in a 1U form factor, reliability with redundant features, and flexibility with 90W PoE++ for connected devices [5] - The switch is suitable for various use cases, including IoT/OT, with a fanless design that supports an extended temperature range [5] Company Overview - Celestica partners with leading companies across multiple sectors, including Aerospace and Defense, Communications, and HealthTech, to provide solutions for complex challenges [4] - The company emphasizes a customer-centric approach and has a global presence with teams in North America, Europe, and Asia [4]

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 Potential - Celestica holds a Zacks Rank of 3 (Hold) with a VGM Score of B, indicating a solid position in the market [12] - The company is particularly appealing to growth investors, with a Growth Style Score of A and a forecasted year-over-year earnings growth of 30.2% for the current fiscal year [12] - Recent upward revisions in earnings estimates by three analysts for fiscal 2025 have increased the Zacks Consensus Estimate by $0.28 to $5.05 per share, showcasing positive market sentiment [12] - Celestica has an average earnings surprise of 7.4%, further indicating its potential for outperforming expectations [12][13]

Core Points - Celestica Inc. announced the election of its board of directors at the Annual and Special Meeting of Shareholders [1] - The company also approved the 2025 Long Term Incentive Plan and the adoption of By-Law 2 (Advance Notice) [2] Board of Directors Election - Eight nominees were elected as directors, with the following vote results: - Kulvinder (Kelly) Ahuja: 69,261,385 votes (96.31% for) [2] - Robert A. Cascella: 68,052,645 votes (94.63% for) [2] - Françoise Colpron: 66,527,817 votes (92.51% for) [2] - Jill Kale: 71,011,261 votes (98.75% for) [2] - Amar Maletira: 71,605,054 votes (99.57% for) [2] - Robert A. Mionis: 71,828,648 votes (99.88% for) [2] - Luis A. Müller: 68,635,849 votes (95.44% for) [2] - Michael M. Wilson: 67,237,060 votes (93.50% for) [2] Company Overview - Celestica is a leader in design, manufacturing, and supply chain solutions, partnering with companies in various sectors including Aerospace and Defense, Communications, and HealthTech [3] - The company emphasizes a customer-centric approach and provides solutions throughout the product development lifecycle [3]

Core Insights - Celestica Inc. and Flex Ltd. are prominent players in the electronics manufacturing services (EMS) industry, serving various sectors including cloud computing, automotive, healthcare, and industrials [1][3] - Both companies are strategically positioned to capitalize on the growing demand for advanced manufacturing solutions driven by technologies such as AI, IoT, and 5G [2][7] Celestica Overview - Celestica has over 25 years of manufacturing experience and focuses on cloud-optimized data storage and networking solutions, benefiting from the generative AI boom [4] - The company is experiencing growth from its 800G network switches, essential for AI applications and data center operations, contributing to solid top-line growth [5] - Despite its growth, Celestica faces challenges with high research and development costs leading to margin contraction and stiff competition from major players like Foxconn and Jabil [6] Flex Overview - Flex operates in 30 countries and is well-positioned to meet the demands of emerging technologies, including IoT and autonomous vehicles [7] - The company reported a 50% growth in its cloud and data center power business in fiscal 2025, with expectations for continued strength into fiscal 2026 [8][9] - Flex's shares trade at a lower forward P/E ratio of 14.49 compared to Celestica's 22.72, making it more attractive from a valuation perspective [14] Financial Performance - Celestica's 2025 sales and EPS are expected to grow by 13.1% and 30.1%, respectively, with positive trends in EPS estimates over the past 60 days [11] - Flex's 2025 sales are projected to rise by 0.4% and EPS by 9.4%, with recent upward revisions in EPS estimates [12] - Over the past year, Celestica's stock has gained 119.8%, outperforming the industry growth of 51.7%, while Flex's stock has increased by 36.6% [13] Investment Considerations - Celestica shows strong revenue and EPS growth, while Flex's valuation metrics appear more attractive, leading to a Zacks Rank of 2 (Buy) for Flex compared to Celestica's 3 (Hold) [15][16] - Both companies anticipate improvements in sales and profits for 2025, but Flex is currently viewed as the better investment option based on Zacks Rank [16]

Group 1 - Celestica's stock closed at $130.73, reflecting a +2.38% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.38% [1] - The stock has increased by 12.55% over the past month, surpassing the Computer and Technology sector's gain of 11.61% and the S&P 500's gain of 6.6% [1] Group 2 - Celestica is projected to report earnings of $1.23 per share, indicating a year-over-year growth of 35.16%, with anticipated revenue of $2.65 billion, representing a 10.95% increase from the same quarter last year [2] - For the annual period, earnings are expected to be $5.05 per share and revenue at $10.91 billion, reflecting increases of +30.15% and +13.15% respectively from the previous year [3] Group 3 - The Zacks Rank system, which evaluates estimate revisions, indicates that positive revisions reflect analysts' confidence in business performance [4][5] - Celestica currently holds a Zacks Rank of 3 (Hold), with no changes in the consensus EPS estimate over the past month [5] Group 4 - Celestica's Forward P/E ratio is 25.27, which is higher than the industry average of 19.72, indicating a premium valuation [6] - The Electronics - Manufacturing Services industry is ranked 203 in the Zacks Industry Rank, placing it in the bottom 18% of over 250 industries [6][7]