Core Insights - Celestica, Inc. (CLS) has experienced a significant stock surge of 103.4% year-to-date, outperforming the Electronics - Manufacturing Services industry growth of 57.5% and the S&P 500 [1][8] - The company has outperformed peers such as Jabil, Inc. (JBL) and Flex Ltd (FLEX), with Jabil's shares increasing by 45.2% and Flex's by 30% [2] Demand and Revenue Growth - Celestica is benefiting from strong demand in the Connectivity & Cloud Solutions (CCS) segment, with revenues rising 28% year-over-year to $2.07 billion in Q2 [3] - The Hyperscaler Portfolio Solutions (HPS) business saw an impressive 82% year-over-year revenue increase, generating $1.2 billion, driven by demand for 800G networking switches [3] - The CCS segment is projected to achieve 30% year-over-year revenue growth by 2025 [3] AI Infrastructure Market Position - Celestica is establishing itself as a key player in the rapidly growing AI infrastructure market, projected to reach $223.45 billion by 2030 with a CAGR of 30.4% from 2024 to 2030 [4] - The company is expanding its portfolio to capitalize on this market trend [4] Product Innovation - The introduction of the SC6110, a next-generation all-flash storage controller, is designed to support mission-critical applications, enhancing performance and energy efficiency [5] Financial Health - As of June 30, 2025, Celestica reported $313.8 million in cash and cash equivalents, with a current ratio of 1.44, indicating strong liquidity compared to the industry average of 1.15 [9] - In Q2 2025, the company generated $152.4 million in cash from operations, a significant increase from $99.6 million year-over-year, with free cash flow rising 82.8% to $119.9 million [10] Earnings Estimates - Earnings estimates for Celestica for 2025 and 2026 have been revised upward over the past 60 days, reflecting growing investor confidence [11][14] Valuation Metrics - Celestica's shares are currently trading at a premium with a price/earnings ratio of 30.91 compared to the industry average of 22.59 [12] Strategic Positioning - The company benefits from a globally diversified manufacturing network, mitigating geopolitical risks and tariff uncertainties, and has established strategic relationships with leading hyperscaler customers [14] - Collaborations with industry leaders like AMD and Broadcom enhance Celestica's competitive edge in the Electronics Manufacturing Industry [14]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1]. Company Overview: Celestica (CLS) - Celestica currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance in the market [2][3]. - The stock has shown significant price increases, with a 6.63% rise over the past week compared to the Zacks Electronics - Manufacturing Services industry, which increased by 3.57% [5]. - Over the past quarter, Celestica's shares have increased by 66.19%, and over the last year, they have gained 251.14%, significantly outperforming the S&P 500's increases of 10.12% and 19.99%, respectively [6]. Trading Volume - The average 20-day trading volume for Celestica is 4,351,083 shares, which serves as a bullish indicator when combined with rising stock prices [7]. Earnings Outlook - In the past two months, three earnings estimates for Celestica have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $5.05 to $5.55 [9]. - For the next fiscal year, three estimates have also moved upwards, indicating positive sentiment regarding future earnings [9]. Conclusion - Given the strong performance metrics and positive earnings outlook, Celestica is positioned as a promising investment opportunity with a Momentum Score of B and a Zacks Rank of 1 (Strong Buy) [11].

Investment Rating - The report assigns a "Cautious Accumulate" rating to the company [1][24]. Core Insights - The AI ASIC server and Ethernet switch markets are experiencing high demand, positioning the company favorably for rapid revenue growth as projects enter mass production. The transition to ODM is expected to enhance profitability, with profit growth outpacing revenue growth [2][9]. Financial Summary - The company’s projected revenue for FY2023 to FY2027 is as follows: - FY2023: $7,961 million - FY2024: $9,646 million (+21%) - FY2025: $11,630 million (+21%) - FY2026: $14,568 million (+25%) - FY2027: $16,917 million (+16%) [4][16] - Adjusted net profit is projected to grow significantly, with estimates of $296 million in FY2023, $461 million in FY2024, $635 million in FY2025, $819 million in FY2026, and $940 million in FY2027 [4][16]. Business Segments - The company operates in two main segments: Connectivity & Cloud Solutions (CCS) and Advanced Technology Solutions (ATS). The CCS segment includes server and storage businesses, while ATS encompasses aerospace, defense, industrial, and medical technology [26][30]. - Revenue from the ATS segment is expected to grow steadily, while the CCS segment is anticipated to see rapid growth driven by AI demand, particularly in 400G and 800G switches [18][19]. Market Position - The company is a leading player in the EMS and ODM sectors, with a strong focus on high-value end markets. It has a robust project pipeline in AI ASIC and Ethernet switches, which are expected to drive future growth [26][30]. - The company has established a solid customer base, including major clients like Amazon, Dell, and Google, with a significant portion of revenue derived from top customers [30][35]. Valuation - The report employs a DCF valuation method, estimating a target price of $202 per share, corresponding to a market capitalization of $23.4 billion [24][25]. - The company’s PEG ratio is calculated at 1.4, reflecting its strong earnings growth relative to peers in the EMS and ODM industries [22][24].

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, logistics, and IT asset management [11] Investment Highlights - Celestica holds a 1 (Strong Buy) rating on the Zacks Rank, indicating strong potential for investment [12] - The company has a VGM Score of B, with a Momentum Style Score of A, reflecting its strong performance in the market [12] - Over the past four weeks, Celestica's shares have increased by 23.5%, showcasing significant momentum [12] - Analysts have revised earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate rising by $0.50 to $5.55 per share [12] - Celestica has an average earnings surprise of +7.7%, indicating a history of exceeding earnings expectations [12][13]

Group 1 - The article expresses a bullish outlook on Celestica (NYSE: CLS) stock, highlighting its unique market positioning and gradual business model evolution over the past two years [1] - The chief investment analyst, Daniel Sereda, emphasizes the importance of filtering vast amounts of information to identify critical investment ideas [1] - The investment group, Beyond the Wall Investing, provides access to high-quality analysis and insights that institutional market participants prioritize [1] Group 2 - The article does not provide any specific financial metrics or performance data related to Celestica or the broader industry [2]

Company Overview - Invictus Origin is a high-alpha investment company founded by Oliver Rodzianko in May 2025, aiming to deliver among the highest annual returns globally [1] - The company is developing innovative portfolio strategies, particularly through its flagship High-Alpha Black Swan Portfolio, designed to outperform leading indices like the Nasdaq-100 [1] Investment Strategy - The Invictus Hydra Portfolio maintains approximately 20% in dynamic cash reserves, allowing for strategic value investing during significant market disruptions [1] - The investment process emphasizes fundamental valuation, long-term market cycles, and sector expertise in technology, semiconductors, artificial intelligence, and energy [1] Leadership and Expertise - Oliver Rodzianko has extensive experience as a macro-focused investment analyst and has built a strong reputation through platforms like Seeking Alpha, TipRanks, and GuruFocus [1] - As CEO, Rodzianko leverages his expertise to establish a firm characterized by resilience, performance, and disciplined capital stewardship [1]

Core Viewpoint - Celestica (CLS) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism regarding Celestica's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, Celestica is projected to earn $1.45 per share, representing a 39.4% increase from the previous year, with a 14.96% rise in the Zacks Consensus Estimate over the last 30 days [7]. - For the full year, the earnings estimate is $5.55 per share, indicating a 43.0% increase from the prior year, with three estimates moving up and no negative revisions [8]. Zacks Rank and Performance - Celestica has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which historically correlate with strong stock performance [9]. - Stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500, indicating a strong potential for Celestica's stock [9]. Recent Stock Performance - Celestica shares have increased by 30.8% over the past four weeks, suggesting investor confidence in the company's earnings growth prospects [10].

Core Insights - Celestica Inc. has launched the SC6110, a 2U dual-node, all-flash 32-drive bay storage controller aimed at enhancing performance and efficiency for modern enterprises [1][2] - The SC6110 supports up to 32 E3.S PCIe Gen 5 NVMe dual-port SSDs and features a redundant architecture with battery backup and hot-swappable components, making it suitable for mission-critical applications [2][3] - The storage controller is powered by AMD EPYC™ Embedded 9004 Series processors, which enhance performance-per-watt and reduce energy costs for demanding enterprise workloads [3] Company Overview - Celestica is recognized for its customer-centric approach, partnering with leading companies across various sectors including Aerospace and Defense, Communications, and HealthTech to deliver complex solutions [4] - The company specializes in design, manufacturing, hardware platform, and supply chain solutions, providing expertise at every stage of product development [4]

Group 1: Company Highlights - Celestica (CLS) is one of the largest electronics manufacturing services companies globally, serving various industries, with a 9.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - SB Financial Group (SBFG) is a financial services holding company providing a full range of services for consumers and small businesses, also experiencing a 9.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - HomeTrust Bancshares (HTB) focuses on attracting deposits and investing in loans secured by mortgages, with a 7.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Houlihan Lokey (HLI) is a global investment bank specializing in mergers and acquisitions, with a 6.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] - Udemy (UDMY) offers online courses across various subjects, with a 4.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [5]

Investment Focus - The report highlights Amazon (AMZN US) as a top pick due to its leading position in the cloud industry with a 30% global market share, stable margin improvements, and strong demand for its T3 inference capabilities [1] - Alphabet (GOOGL US) is favored for its AI and advertising synergy, expected margin improvements in IaaS cloud services, and strong self-developed capabilities, although its stock price upside is currently limited [1] - Arista (ANET US) is recognized for its leadership in high-speed data center switches and expected revenue contributions from AI backend switch business, with a significant growth visibility [1] - Meituan (3690 HK) is noted for its strong cash flow generation ability and competitive cost structure, positioning it well in the face of industry competition [1] - Lenovo (992 HK) is highlighted for its record revenue in AI server business and significant growth potential compared to peers like Dell [2] - NVIDIA (NVDA US) is recognized for its strong financial performance and technological leadership in data center business, with a focus on emerging applications driving growth [2] - Tencent (700 HK) is expected to benefit significantly from AI advancements, with an upward revision in revenue and profit expectations for 2025 [2] - New Oriental (EDU US) is noted for its diverse revenue sources and strong brand recognition, supporting its high profit margins [3] - AIA (1299 HK) is favored for its steady growth in new business value and strong operational metrics, particularly in the ASEAN market [3] - Futu (FUTU US) is expected to see significant growth in paid user numbers and total AUM, supported by its low commission model and quality customer service [3] - The report emphasizes the potential of Chinese pharmaceutical companies like China Biologic Products (1177 HK) and Innovent Biologics (1801 HK) in their innovative drug pipelines and market leadership [4]