Investment Rating - The report maintains an "Overweight" (OW) rating for the covered companies, indicating an expectation of outperforming the average total return of the stocks in the research analyst's coverage universe [29][31][33]. Core Insights - The report highlights robust capital expenditure (capex) growth among major US Cloud Service Providers (CSPs) such as Meta, Microsoft, and Google, with a combined year-over-year growth of 60% [1]. - The positive outlook for capex investments is supported by raised full-year guidance from Meta and reiterated forecasts from Microsoft and Google, suggesting continued strong investment momentum throughout the year [1][3]. - Despite concerns regarding a slowdown in AI investments and tariff impacts, the report suggests limited near-term effects on capex trajectories for the CSPs [1]. Summary by Company Meta - Meta's capex increased by $7 billion year-over-year for the second consecutive quarter, with a 104% rise year-over-year in Q1 2025, reaching $13.7 billion [3]. - The full-year capex outlook for 2025 has been raised to $64-$72 billion, reflecting a year-over-year growth of 73%, driven by AI investments and core business support [3]. Microsoft - Microsoft reported a capex of $21.4 billion for Q3 2025, marking a 53% increase year-over-year, despite a 5% quarter-over-quarter decline [3]. - The company maintains a double-digit growth outlook for fiscal 2H25, with expected year-over-year growth of over 10% for Q4 2025 [3]. Google - Google's capex for Q1 2025 rose by 20% quarter-over-quarter and 43% year-over-year, totaling $17.2 billion, primarily due to infrastructure investments [3]. - The full-year capex outlook for 2025 is reiterated at $75 billion, indicating a year-over-year growth of over 40% [3].

Group 1 - The core viewpoint is that Celestica's (CLS) strong Q4 2024 results led to a slight downgrade in rating from Strong Buy to Buy due to rapid price increase and anticipated negative seasonality [1] - Bram de Haas, with 15 years of investing experience and over 5 years managing a Euro hedge fund, is highlighted for his risk management skills and ability to identify lucrative investments [1]

Group 1 - Celestica is positioned as a key player in the AI and cloud infrastructure sectors, benefiting from the increasing demand from hyperscalers [1] - The company serves as a profit-leveraged enabler for backbone systems, indicating its critical role in supporting the growth of these technologies [1] Group 2 - The investment strategy of the analyst focuses on long-term fundamentals and valuation discipline, particularly in technology, semiconductors, AI, and energy sectors [1] - The analyst manages a long-only, unleveraged portfolio aimed at capital preservation and capturing asymmetric upside during market dislocations [1] - The Nasdaq High-Alpha Black Swan Portfolio is highlighted as a private strategy designed for resilience and long-term outperformance [1]

Core Viewpoint - Celestica (CLS) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors often adjust their valuations based on earnings estimates, leading to significant stock price movements when estimates are revised [3]. Celestica's Earnings Outlook - Celestica is projected to earn $5.05 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 30.2% [7]. - Over the past three months, the Zacks Consensus Estimate for Celestica has risen by 1.7%, indicating a positive trend in earnings expectations [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade of Celestica to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9].

Core Insights - Celestica Inc. (CLS) has significantly outperformed the industry and peers, with a stock price increase of 98.8% over the past year compared to the industry's 36.4% growth [1] - The company has a strong focus on AI applications, leveraging over 25 years of manufacturing experience to provide advanced data storage and networking solutions [2] Performance and Growth - The ongoing generative AI boom has driven demand for Celestica's AI/ML compute and networking products, particularly from hyperscale customers [3] - Celestica's high-performance 800G network switches and scalable storage solutions are essential for AI applications, enhancing its market position [3] - Earnings estimates for 2025 have increased by 5.7% to $5.05, and for 2026 by 2.4% to $6.07, indicating positive growth expectations [6] Financial Guidance - The company has raised its revenue guidance for 2025 to $10.85 billion from $10.7 billion, with an expected non-GAAP operating margin of 7.2% [7] - Non-GAAP adjusted earnings are projected to be $5 per share, up from a previous estimate of $4.75 [7] Challenges and Competition - Despite strong growth, Celestica faces high operating expenses due to sophisticated product development, which has impacted margins [8] - The company competes with major players like Foxconn, Jabil, and Flex, as well as smaller regional firms, in a highly cyclical semiconductor industry [9] - Persistent weakness in the ATS segment and elevated inventory levels in industrial markets are hindering net sales growth [9] Future Outlook - Management anticipates demand stabilization in the first half of 2025, although macroeconomic challenges remain a concern [12] - As production scales and costs decrease, the potential applications for silicon photonics are expected to expand across various industries [13] - The stock has a trailing four-quarter average earnings surprise of 7.4% and a favorable Zacks Rank of 2 (Buy), suggesting potential for further appreciation [14]

Shares of Celestica (CLS) have gained 28.9% over the past four weeks to close the last trading session at $89.21, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $120 indicates a potential upside of 34.5%.The average comprises 10 short-term price targets ranging from a low of $95 to a high of $150, with a standard deviation of $13.85. While the lowest estimate indicates an incre ...

Group 1 - Celestica (CLS) has recently reached a key level of support and has overtaken the 50-day moving average, indicating a short-term bullish trend [1] - CLS has rallied 28.9% over the past four weeks and currently holds a Zacks Rank 2 (Buy), suggesting potential for further upward movement [2] - Positive earnings estimate revisions for CLS, with three higher estimates compared to none lower for the current fiscal year, strengthen the bullish outlook [2] Group 2 - Investors are encouraged to monitor CLS for potential gains in the near future due to its key technical level and favorable earnings revisions [3]

Core Insights - The Q1 2025 earnings cycle is heavily focused on guidance, influenced by recent economic uncertainties and tariff announcements [1][9] - Several companies, including Centene, Boston Scientific, and Celestica, have raised their guidance, indicating positive performance [2][17] Centene (CNC) - Centene reported an adjusted EPS of $2.90 and sales of $46.6 billion, exceeding consensus estimates with a year-over-year earnings growth of 28% [3] - The company raised its 2025 premium and service revenues guidance by $6.0 billion, reflecting a 17% year-over-year improvement [3][6] - Analysts now expect Centene to post $172.8 billion in revenues for the current fiscal year, with a favorable Zacks Rank 2 (Buy) [6] Boston Scientific (BSX) - Boston Scientific surpassed both top and bottom line expectations, achieving a 12% EPS beat and sales 2.3% above expectations [8] - The company now anticipates FY25 sales growth between 15% and 17%, with current year sales expectations adjusted to $19.4 billion, a 10% increase from the previous year [10] Celestica (CLS) - Celestica exceeded Zacks Consensus EPS estimates by 8% and reported sales nearly 4% ahead of expectations, with a year-over-year sales growth of 20% [12] - The company raised its full-year 2025 revenue outlook to $10.85 billion from $10.7 billion, expecting non-GAAP adjusted EPS of $5.00, up from $4.75 [13] - Strong demand for solutions amid the AI trend and a shift to higher-margin products contributed to Celestica's stellar performance [13]

Celestica Inc CLS reported better-than-expected first-quarter earnings after the closing bell on Thursday.The company posted revenue of $2.65 billion, versus estimates of $2.61 billion. Adjusted earnings came in at $1.20 per share, versus estimates of $1.15 per share."Celestica delivered a strong first quarter in 2025, achieving revenue of $2.65 billion and non-GAAP adjusted EPS of $1.20, both surpassing the high end of our guidance ranges. This strong performance was further highlighted by our highest ever ...

Group 1 - The core focus of JR Research is on identifying attractive risk/reward opportunities that can generate alpha above the S&P 500 through robust price action [1][2] - The investment strategy emphasizes growth investing, combining price action analysis with fundamental investing while avoiding overhyped stocks [2] - JR Research runs the Ultimate Growth Investing group, which specializes in high-potential opportunities across various sectors with a 18 to 24 month outlook [3] Group 2 - The group targets growth stocks with strong fundamentals, buying momentum, and turnaround plays at attractive valuations [3] - JR Research has been recognized as a Top Analyst by TipRanks and Seeking Alpha for expertise in Technology, Software, Internet, Growth, and GARP [1]