Group 1 - Celestica (CLS) stock is highlighted as a significant investment opportunity, being this week's Big Cap 20 pick, with a year-to-date increase of over 168% [1] - The company specializes in design, manufacturing, and supply-chain solutions across various sectors, including enterprise, aerospace, health, communications, sustainable energy, and data centers [1] - Celestica stock ranks first in its category, indicating strong market performance and investor interest [1] Group 2 - The stock has experienced a notable pullback after a 95% surge, suggesting potential for bullish plays among option traders [4] - Despite not paying a dividend, strategies to create yield from Celestica stock are being explored [4] - The overall market sentiment includes other stocks performing well, with some mutual fund favorites up around 70% this year [4]

Group 1 - Celestica Inc. is a significant player in the AI infrastructure industry, particularly in ensuring smooth operations in data centers [1] - The focus is on identifying high-quality companies with a market capitalization of less than $10 billion, which presents ample growth opportunities [1] - The ideal companies should demonstrate a long-term capability of capital compounding with a high compound annual growth rate, potentially delivering tenfold returns or greater [1] Group 2 - A long-term investment perspective is emphasized to generate higher returns compared to market indices in a rapidly evolving investment landscape [1] - A conservative investment strategy is primarily adopted, with occasional pursuit of favorable risk-reward opportunities [1] - Investments are carefully considered and allocated proportionally within the portfolio to maintain overall stability [1]

Group 1 - Celestica Inc. is a significant player in the AI infrastructure industry, particularly in ensuring smooth operations in data centers [1] - The focus is on identifying companies with a market capitalization of less than $10 billion that can reinvest capital for impressive returns [1] - The ideal companies should demonstrate a long-term capability of capital compounding with a high compound annual growth rate, potentially delivering tenfold returns or greater [1] Group 2 - A conservative investment strategy is primarily adopted, with occasional pursuit of opportunities that have a favorable risk-reward ratio [1] - The approach emphasizes maintaining a long-term perspective to generate higher returns compared to market indices in a rapidly evolving investment landscape [1]

Core Viewpoint - Celestica Inc. is highlighted as a strong investment opportunity, particularly due to its relationship with OpenAI and the anticipated revenue growth from non-semiconductor content [1][3]. Financial Performance - For Q2 2025, Celestica reported revenue of $2.89 billion, a 21% increase year-over-year from $2.39 billion in Q2 2024 [2]. - The adjusted EPS for Q2 was $1.39, reflecting a 54% growth compared to $0.90 in Q2 2024 [2]. - The Connectivity & Cloud Solutions (CCS) segment generated $2.07 billion in revenue, up 28%, with Hardware Platform Solutions within CCS seeing an 82% increase to approximately $1.2 billion [3]. - The Advanced Technology Solutions (ATS) segment reported revenue of $0.82 billion, marking a 7% increase [3]. Analyst Insights - JPMorgan analyst Samik Chatterjee raised the price target for Celestica from $225 to $295 while maintaining an Overweight rating, citing increased revenue visibility driven by OpenAI [1][3]. - The revenue opportunity for Celestica is linked to the $10 billion of rack revenue, emphasizing the potential for growth in non-semiconductor areas [1]. Company Overview - Celestica Inc. provides supply chain solutions across Asia, North America, and internationally, operating through two segments: Advanced Technology Solutions and Connectivity & Cloud Solutions [4].

Group 1 - Celestica Inc. (NYSE: CLS) is identified as a strong buy due to its significant role in the AI infrastructure development [1] - The investment philosophy of Kennedy Njagi focuses on companies with aggressive growth prospects that are expected to become highly profitable within 1-2 years [1] - The analysis emphasizes long-term discipline and consistent alpha generation while acknowledging the presence of risk [1] Group 2 - The article expresses a beneficial long position in Celestica shares, indicating confidence in the company's future performance [1]

Group 1 - Celestica's stock closed at $247.66, reflecting a -2.65% change from the previous day, underperforming the S&P 500's loss of 0.1% [1] - The stock has increased by 37.71% over the past month, outperforming the Computer and Technology sector's gain of 5.94% and the S&P 500's gain of 2.57% [1] - The upcoming earnings report on October 27, 2025, is expected to show an EPS of $1.45, a 39.42% increase year-over-year, with projected revenue of $3 billion, a 19.99% rise from the same quarter last year [2] Group 2 - Full-year Zacks Consensus Estimates predict earnings of $5.55 per share and revenue of $11.63 billion, indicating year-over-year increases of +43.04% and +20.61%, respectively [3] - Recent analyst estimate changes for Celestica suggest a positive outlook for the business, as these revisions are often correlated with near-term stock price movements [4][3] - Celestica currently holds a Zacks Rank of 1 (Strong Buy), with a Forward P/E ratio of 45.84, indicating a premium compared to the industry average Forward P/E of 19.53 [5] Group 3 - The Electronics - Manufacturing Services industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 18, placing it in the top 8% of over 250 industries [6] - The Zacks Industry Rank assesses the performance of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [6]

Core Insights - The article highlights Steven Cress's role as VP of Quantitative Strategy and Market Data at Seeking Alpha, emphasizing his contributions to the platform's quantitative stock rating system and analytical tools designed to assist investors [1][2][4] - Cress's focus on a data-driven approach aims to eliminate emotional biases in investment decisions, utilizing sophisticated algorithms to streamline investment research [2][4] - His background includes founding CressCap Investment Research, which was acquired by Seeking Alpha in 2018, and previously running a proprietary trading desk at Morgan Stanley [3][4] Company Contributions - Seeking Alpha benefits from Cress's development of a quantitative stock rating system that interprets data for investors, providing insights and saving time [1][2] - The platform's systematic stock recommendation tool, Alpha Picks, is designed to help long-term investors build a high-quality portfolio [1] Industry Experience - Cress brings over 30 years of experience in equity research, quantitative strategies, and portfolio management, positioning him as an expert in various investment topics [4]

Core Idea - The article emphasizes the investment philosophy of Thomas W. Phelps, particularly his book "100 to 1 in the Stock Market," which advocates for buying exceptional companies early, holding them with discipline, and allowing compounding to generate wealth [1][4][6]. Phelps's Investment Framework - Phelps's framework focuses on identifying companies with durable advantages, such as network effects, proprietary know-how, and advantageous cost structures [8]. - The importance of verifying a large addressable market that allows for long-term compounding without hitting a wall is highlighted [8]. - Present-tense profitability is essential; Phelps preferred companies that generate cash rather than speculative ventures [8]. - The article suggests buying companies when their narratives are still forming, favoring modest valuations over those priced for perfection [8]. - A strategy of doing less is recommended, as holding onto winning investments can lead to tax deferral and reduced errors [8]. Current Investment Candidates - The article lists 25 companies that fit Phelps's criteria, categorized by how they create competitive advantages rather than by index labels [9]. - Companies in the construction and infrastructure sector, such as EMCOR Group and Quanta Services, are noted for their execution capabilities and ability to convert backlog into cash [10][11]. - Precision manufacturers like Celestica and Fabrinet are recognized for their high returns on capital and asset-light models [12]. - In network infrastructure, Arista Networks and Super Micro Computer are highlighted for their strong positions in high-speed switching and AI hardware, respectively [13]. - Companies in the materials sector, such as Martin Marietta Materials, are noted for their pricing power and local monopolies [14]. - Engineering firms like WSP Global are recognized for their expertise and customer relationships in regulated markets [15]. - Consumer brands like e.l.f. Beauty and Academy Sports are mentioned for their market share growth and operational efficiency [16]. - Specialty finance companies like FirstCash and software firms like Agilysys are noted for their cash generation and growth potential [17]. - Internationally, utilities like Sabesp and fintechs like StoneCo are highlighted for their governance and profitability improvements [18]. - UK companies like Spectris and Halma are recognized for their consistent acquisition strategies and operational excellence [19]. Conclusion - The article concludes that the focus should be on finding real engines of growth and sizing investments appropriately to endure market volatility, allowing time to enhance value [22].

Core Insights - Celestica Inc. (CLS) and AST SpaceMobile, Inc. (ASTS) are significant players in the technology sector, with Celestica specializing in electronics manufacturing services and AST SpaceMobile focusing on space-based cellular broadband networks [1][2] Group 1: Celestica Inc. (CLS) - Celestica has over two decades of manufacturing experience and offers cloud-optimized data storage and networking solutions, driven by the demand for AI-based applications [4] - The company is diversifying its product offerings and expanding into high-value markets, which enhances business resilience by reducing dependence on a single industry [5] - Despite its strengths, Celestica faces margin pressures due to high research and development costs and stiff competition from industry giants like Foxconn and Flex [6] - Celestica's sales and EPS are expected to grow by 20.6% and 43% year-over-year in 2025, respectively, with a positive trend in EPS estimates [12] - The company has experienced a remarkable stock performance, gaining 424% over the past year, significantly outperforming the sector's growth of 30.1% [15][18] - Celestica's valuation metrics are more attractive, with a price/sales ratio of 2.13 compared to AST SpaceMobile's 69.34 [16] Group 2: AST SpaceMobile, Inc. (ASTS) - AST SpaceMobile is developing the first global cellular broadband network in space, utilizing a constellation of satellites to provide service directly to smartphones [2][10] - The company has launched five commercial satellites, with plans to deploy 45 to 60 more by Q1 2026, aiming to enhance cellular coverage in areas lacking terrestrial networks [7][10] - AST SpaceMobile's sales are projected to grow by an extraordinary 1,120% in 2025, but its EPS is expected to decline by 48.5% [12] - The company faces challenges from unfavorable macroeconomic conditions and competition from established players like SpaceX's Starlink, which may pressure its financial performance [11] - AST SpaceMobile's stock has gained 29.8% over the past year, but this is significantly lower than Celestica's performance [15]

Core Viewpoint - Celestica Inc. will announce its third quarter 2025 financial results and host an Investor and Analyst Day on October 28, 2025, providing updates on business operations and financial outlook [1] Group 1: Financial Results and Conference Call - The financial results will be released after market close on October 27, 2025 [1] - The conference call will start at 8:00am ET on October 28, 2025 [1] - Management will discuss strategic priorities and growth opportunities during the call [1] Group 2: Investor and Analyst Day - Following the conference call, Celestica will host a Lunch Forum for investors and analysts in Midtown Manhattan, New York City [3] - A panel of management will be available to answer questions from institutional investors [3] - Attendance is limited and subject to availability [3] Group 3: Webcast Information - Participants can join a live webcast of the conference call [2] - A recorded version of the webcast will be available approximately two hours after the call [2] - The recorded webcast can be accessed via Celestica's website [2] Group 4: Attendance Registration - Institutional investors and research analysts interested in attending are invited to express their interest [4] - Contact information for Celestica Investor Relations is provided for inquiries [4]