Group 1 - The article discusses the timing of issuing top investment picks for 2025, noting that valuations have significantly decreased across various sectors, creating investment opportunities [1] - The analyst, Uttam, specializes in growth-oriented equity research, focusing on technology sectors such as semiconductors, artificial intelligence, and cloud software, as well as MedTech, Defense Tech, and Renewable Energy [1] - Uttam co-authors a newsletter, The Pragmatic Optimist, which is frequently cited by major publications like the Wall Street Journal and Forbes, indicating its influence in the investment community [1] Group 2 - The analyst has a background in leading teams at major technology firms, including Apple and Google, which adds credibility to his research and insights [1]

Group 1 - The core focus of Pythia Research is on identifying multi-bagger stocks, particularly within the technology sector [1] - The investment approach integrates financial analysis, behavioral finance, psychology, social sciences, and alternative metrics to evaluate companies with high conviction and asymmetric risk-reward potential [1] - The strategy aims to uncover breakout opportunities before they become mainstream, leveraging both traditional and unconventional insights to navigate market sentiment and identify emerging trends [1] Group 2 - Pythia Research emphasizes investing in transformative businesses that are positioned for exponential growth, rather than merely following market trends [1] - The multidisciplinary strategy is designed to anticipate disruptions that could lead to the next significant winners in the market [1]

Core Insights - Beyond the Wall Investing offers a subscription service that provides access to high-quality equity research reports, potentially saving investors thousands of dollars annually [1] - Celestica Inc. (NYSE: CLS) has been highlighted positively, with three bullish articles published since March 2024, indicating that CLS has consistently outperformed the broader market and its direct peers [1] Company Analysis - The investment group Beyond the Wall Investing features a fundamentals-based portfolio, weekly insights from institutional investors, and alerts for short-term trade ideas based on technical signals [1] - The analyst has a beneficial long position in CLS shares, indicating confidence in the company's future performance [1]

Financial Performance - Q4 2024 revenue reached $2.55 billion, an increase of $405.2 million or 19% compared to Q4 2023 [512]. - CCS segment revenue increased by $402.3 million (30%) year-over-year, driven by a 64% increase in Communications end market revenue [512]. - HPS revenue for Q4 2024 was $807 million, representing 32% of total revenue and a 65% increase from Q4 2023 [512]. - Gross profit increased by $74.0 million in Q4 2024, with gross margin rising to 11.7% from 10.4% in Q4 2023 [512]. - Net earnings for Q4 2024 were $151.7 million, up from $91.6 million in Q4 2023, primarily due to higher gross profit and lower SG&A expenses [512]. - The company reported an adjusted EPS of $1.29 for Q4 2024, exceeding the high end of the guidance range [516]. - GAAP revenue for Q4 2024 was $2,545.7 million, a 19% increase from $2,140.5 million in Q4 2023 [535]. - Adjusted gross profit for Q4 2024 was $279.8 million, representing an adjusted gross margin of 11.0%, compared to 10.5% in Q4 2023 [535]. - GAAP net earnings for the year ended December 31, 2024, were $428.0 million, up from $244.4 million in 2023, reflecting a 75% increase [535]. - Adjusted net earnings for Q4 2024 were $130.2 million, or 5.1% of revenue, compared to $92.1 million, or 4.3% of revenue in Q4 2023 [535]. - Free cash flow for the year ended December 31, 2024, was $305.9 million, an increase from $203.8 million in 2023 [535]. Risk Management - The fair value of outstanding foreign currency contracts at December 31, 2024, was a net unrealized loss of $18.5 million, compared to a net unrealized gain of $6.5 million at December 31, 2023 [500]. - Unhedged borrowings of $411.2 million at December 31, 2024, expose the company to interest rate risk, with a one-percentage point increase in interest rates potentially increasing annual interest expense by $4.1 million [502]. - The company maintains a portfolio of liquid funds and investments to manage liquidity risk, alongside access to a revolving credit facility and other financial instruments [507]. - The allowance for credit losses was $10.1 million at December 31, 2024, compared to $8.4 million at December 31, 2023 [506]. - The company is subject to various financial risks, including dependence on third parties for materials and the cyclical nature of the semiconductor industry [18]. - The company does not engage in hedging activities for commodity price risk, which may impact future operating results [508]. Operational Insights - Less than 1% of gross accounts receivable were over 90 days past due at December 31, 2024, consistent with the previous year [506]. - Transportation costs are being managed through optimized logistics and supply chain planning amid industry-wide capacity challenges [509]. - The company executed a sublease for a portion of the leased space under the Purchaser Lease, which commenced in June 2024 [527]. - Transition Costs related to relocations and property dispositions were recorded, impacting the comparison of core operating results [527]. Taxation and Financial Metrics - The GAAP effective tax rate for Q4 2024 was 20%, with an adjusted effective tax rate of 19% [516]. - The GAAP tax expense for Q4 2024 was $37.8 million, compared to $23.1 million in Q4 2023, marking a 63.7% increase [539]. - Adjusted tax expense (non-GAAP) for the year ended December 31, 2024, was $109.7 million, up from $75.9 million in 2023, reflecting a 44.5% increase [539]. - Finance costs for Q4 2024 were $11.9 million, a decrease from $15.5 million in Q4 2023, indicating improved cost management [539]. - Miscellaneous income for Q4 2024 was $(1.2) million, a significant improvement from $21.0 million in Q4 2023, highlighting volatility in non-operating income [539]. Future Outlook - The company anticipates continued growth in the advancement and commercialization of artificial intelligence technologies and cloud computing [12]. - The company is focused on diversifying its customer base and developing new capabilities to mitigate risks associated with customer dependence [12]. - The company expects to face challenges related to managing changes in customer demand and potential disruptions to operations from external events [18].

Group 1: Celestica (CLS) - Celestica is a provider of critical assembly components and manufacturing support to leading original equipment manufacturers [2] - CLS shares have experienced significant gains over the last three years, currently trading 22% below its 52-week high of $144 [3] - Total sales for Celestica are expected to rise by 11% this year and projected to increase another 18% in FY26 to $12.72 billion [3] - The Zacks Electronics-Manufacturing Services Industry, where Celestica operates, is in the top 6% of nearly 250 Zacks industries, indicating high demand for its services [4] Group 2: GE Aerospace (GE) - GE Aerospace focuses on aviation technologies, producing commercial and defense airline engines, and is a core holding for many hedge funds [5] - GE's stock is near its 52-week high of $212, with a planned 30% increase in dividends due to strong cash flow [6] - The company expects to generate $6.3-$6.8 billion in free cash flow this year, with a Cash Flow per share (CF/PS) ratio of 7.1X, above industry averages [7] Group 3: JPMorgan Chase (JPM) - JPMorgan Chase is the largest U.S. bank, with shares down 8% from its 52-week peak of $280 [10][11] - The bank trades at a forward earnings multiple of 14.2X and offers a 1.94% annual dividend, with a payout ratio under 30% [11] - JPMorgan has a history of dividend growth, with an annualized dividend growth rate of 6.03% over the last five years [11]

Core Viewpoint - Celestica (CLS) has shown a significant price increase of 26.9% over the past four weeks, with analysts suggesting further upside potential based on short-term price targets, averaging $140.56, indicating a 26.8% upside from the current price of $110.88 [1] Price Target Analysis - The mean estimate consists of nine short-term price targets with a standard deviation of $23.71, indicating variability among analysts. The lowest estimate is $95, suggesting a 14.3% decline, while the highest estimate is $166, indicating a potential surge of 49.7% [2] - A low standard deviation in price targets suggests a high degree of agreement among analysts regarding the stock's price movement direction, which can serve as a starting point for further research [7] Earnings Estimates - Analysts are optimistic about CLS's earnings prospects, as indicated by a strong consensus in revising earnings per share (EPS) estimates higher, which historically correlates with near-term stock price movements [9] - The Zacks Consensus Estimate for the current year has increased by 8.5% over the past month, with no negative revisions, reinforcing the positive outlook [10] Zacks Rank - CLS holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, providing a strong indication of potential upside in the near term [11] Conclusion on Price Targets - While the consensus price target may not be a reliable measure of the extent of CLS's potential gains, it does provide a useful guide for the direction of price movement [12]

Group 1 - The stock of Celestica (NYSE: CLS) has increased by 51% since November 2024, indicating strong bullish sentiment [1] - Recent developments suggest multiple reasons to maintain a bullish outlook on Celestica [1] - DCF modeling indicates positive financial projections for the company [1] Group 2 - The author has a beneficial long position in Celestica shares, indicating confidence in the stock's performance [2]

Group 1 - Celestica Inc (NYSE:CLS) stock has recently experienced a pullback from all-time highs to its 20-day moving average, presenting potential buying opportunities after a post-earnings breakout above $64 in October [2] - The stock exhibited a bullish island reversal pattern in late January following quarterly results, indicating an ideal time to buy call options [2] - There is a limited number of brokerages covering CLS, with eight out of nine rating it a "buy" or better, suggesting potential for further analyst coverage [3] Group 2 - Short interest in CLS has increased by 20.4% in the last two reporting periods and 57% since September, yet the stock has continued to rally, indicating technical strength [3] - It would take shorts nearly three days to cover their positions based on the equity's average daily trading volume [3] - The recommended call option has a leverage ratio of 4.8, which would double with a 21.3% rise in the underlying equity [4]

Group 1 - Celestica (CLS) is a stock that has significantly outperformed its peers in the Computer and Technology sector, with a year-to-date return of approximately 35.5% compared to the sector average of 1.8% [4] - The Zacks Rank for Celestica is currently 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings prospects [3] - Over the past 90 days, the Zacks Consensus Estimate for Celestica's full-year earnings has increased by 7.8%, reflecting positive analyst sentiment [4] Group 2 - Celestica operates within the Electronics - Manufacturing Services industry, which consists of 4 companies and holds a Zacks Industry Rank of 4 [6] - The average return for stocks in the Electronics - Manufacturing Services industry this year is 17.4%, further highlighting Celestica's strong performance [6] - Anterix (ATEX), another stock in the Computer and Technology sector, has also shown strong performance with a year-to-date return of 31.7% and a Zacks Rank of 2 (Buy) [5][7]

Market Overview - Wall Street has experienced a solid bull run over the last 26 months, with several stocks significantly appreciating in value over the past year. The bull run is expected to continue into 2025 despite some fluctuations in U.S. stock markets [1] - Non-U.S. stocks traded in U.S. markets have also seen substantial gains during this period, with some stocks benefiting from strong revenues and positive earnings estimate revisions [1] Selected Stocks - Five stocks with favorable Zacks Rank have been identified: Celestica Inc. (CLS), Atlassian Corp. (TEAM), Spotify Technology S.A. (SPOT), Sportradar Group AG (SRAD), and Logitech International S.A. (LOGI) [2][3] Celestica Inc. (CLS) - Celestica is a leading electronics manufacturing services company, providing solutions for printed circuit assembly and system assembly [5] - For 2025, the Zacks Consensus Estimate projects revenues of $10.71 billion, reflecting an 11% year-over-year increase, and earnings per share (EPS) of $4.75, indicating a 22.4% year-over-year increase. Current-year earnings estimates have improved by 7.7% in the last 30 days [7] - The 2026 estimates show a year-over-year increase of 16.4% for revenues and 19.3% for EPS [8] Atlassian Corp. (TEAM) - Atlassian is benefiting from the rising demand for remote working tools and has seen a 25-fold increase in AI interactions year-over-year [9][10] - The Zacks Consensus Estimate for the current year (ending June 2025) indicates revenues of $5.17 billion, an 18.6% year-over-year increase, and EPS of $3.45, a 17.8% year-over-year increase. Current-year earnings estimates have improved by 8.2% in the last 30 days [12] - For the next year (ending June 2026), the estimates indicate a 19.1% increase in revenues and a 21% increase in EPS [13] Spotify Technology S.A. (SPOT) - Spotify provides audio streaming services globally, with a significant increase in Monthly Active Users (MAUs) reported [15][17] - The Zacks Consensus Estimate for 2025 shows revenues of $18.83 billion, an 11.1% year-over-year increase, and EPS of $10.30, a 73.1% year-over-year increase. Current-year earnings estimates have improved by 17.7% in the last 30 days [18] - For 2026, the estimates indicate a 14.8% increase in revenues and a 27.2% increase in EPS [19] Sportradar Group AG (SRAD) - Sportradar provides sports data services for the sports betting and media industries, offering critical software and data solutions [21][22] - The Zacks Consensus Estimate for 2025 indicates revenues of $1.31 billion, a 15.7% year-over-year increase, and EPS of $0.29, a 94.5% year-over-year increase. Current-year earnings estimates have improved by 17.7% in the last 30 days [24] Logitech International S.A. (LOGI) - Logitech has experienced four consecutive quarters of year-over-year sales growth, driven by rising hybrid work trends [26] - The Zacks Consensus Estimate for fiscal 2025 shows revenues of $4.56 billion, a 6.1% year-over-year increase, and EPS of $4.77, a 12.2% year-over-year increase. Current-year earnings estimates have improved by 0.9% in the last seven days [28] - For fiscal 2026, the estimates indicate a 3.1% increase in revenues and a 3.9% increase in EPS [29]