Core Insights - Celestica Inc. (CLS) expresses skepticism regarding the macro environment due to trade policy uncertainty, although recent U.S. government exemptions for key data center IT hardware provide some near-term clarity [1][7]. Company Overview - Celestica's products are sophisticated and based on the latest technological innovations, leading to high research and development costs, which pressure margins [2][7]. - The company has over two decades of manufacturing experience and aims to deliver next-generation, cloud-optimized data storage and industry-leading networking AI solutions [3]. Market Position and Performance - Celestica operates primarily as a behind-the-scenes partner for other electronics businesses and is considered a lesser-known beneficiary of the AI revolution [3]. - The company's stock has surged 125.8% over the past year, outperforming the industry growth of 56.4% [6][7]. Financial Metrics - Celestica's forward price-to-sales ratio is 1.26, which is above the industry average [9]. - The Zacks Consensus Estimate for CLS' earnings for 2025 has been increasing over the past 60 days, indicating positive sentiment [10]. Earnings Estimates - The current earnings estimates for Q1, Q2, E1, and F2 are 1.23, 1.29, 5.05, and 6.07 respectively, with revisions showing an upward trend [11].

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 ...

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 [12] - 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 [12] Investment Ratings - Celestica holds a Zacks Rank of 3 (Hold) with a VGM Score of A, indicating a solid position in the market [13] - The company is considered a potential top pick for growth investors due to its strong Growth Style Score of A, forecasting a year-over-year earnings growth of 30.2% for the current fiscal year [13] Earnings Estimates - In the last 60 days, three analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.27 to $5.05 per share [13] - Celestica has an average earnings surprise of 7.4%, suggesting a positive trend in earnings performance [13] Conclusion - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, Celestica is recommended for investors' consideration [14]

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]. Group 1: Company Overview - Celestica has over two decades of manufacturing experience and operates a simplified global network, focusing on next-generation, cloud-optimized data storage and AI networking solutions [2]. - The company serves as a behind-the-scenes partner for electronics businesses, providing a comprehensive range of services including design, manufacturing, and supply chain management [2]. Group 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]. - The launch of high-performance 800G network switches and scalable AI storage platforms has positioned Celestica as a key player in supporting AI applications and data center solutions [5][6]. Group 3: 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]. Group 4: Market Challenges - Despite healthy 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 faces ongoing margin pressures due to high research and development costs and operating expenses, which have historically impacted profitability [10][15]. - Intense competition from industry giants like Foxconn, Jabil, Flex, and regional players, along with the cyclical nature of the semiconductor industry, poses additional challenges [11]. Group 5: Future Outlook - Celestica is well-positioned for sustained growth, supported by robust infrastructure investments and extensive industry experience, despite current volatility in the macroeconomic landscape [14].

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]

Group 1 - Ericsson is part of the Computer and Technology sector, which includes 607 companies and ranks 8 in the Zacks Sector Rank [2] - The Zacks Rank model indicates that Ericsson has a Zacks Rank of 2 (Buy), with a 21.4% increase in the consensus estimate for full-year earnings over the past 90 days, reflecting improved analyst sentiment [3] - Year-to-date, Ericsson has returned approximately 9.9%, outperforming the Computer and Technology sector average return of -3% [4] Group 2 - Ericsson belongs to the Wireless Equipment industry, which consists of 12 stocks and currently ranks 18 in the Zacks Industry Rank, with an average gain of 3.9% this year [5] - Another stock in the sector, Celestica, has a year-to-date return of 23.5% and is part of the Electronics - Manufacturing Services industry, which has moved +11.2% this year [4][6] - Both Ericsson and Celestica are showing solid performance, making them noteworthy for investors interested in Computer and Technology stocks [6]

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].