Celestica (CLS) Falls More Steeply Than Broader Market: What Investors Need to Know

Company Overview - Celestica's shares have decreased by 3.81% over the past month, underperforming the Computer and Technology sector's loss of 3.17% and the S&P 500's gain of 2.14% [1] - The most recent trading session closed with Celestica at $56.32, reflecting a decline of 0.91% from the previous day's closing, which is worse than the S&P 500's daily loss of 0.78% [2] Earnings Forecast - Celestica's upcoming earnings report is anticipated on July 24, 2024, with an expected EPS of $0.81, indicating a 47.27% increase from the same quarter last year [3] - Revenue is projected to be $2.25 billion, representing a 15.78% increase compared to the year-ago quarter [3] - For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.32 per share and revenue of $9.12 billion, reflecting changes of +36.63% and +14.59% from the prior year, respectively [7] Industry Context - The Electronics - Manufacturing Services industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 227, placing it in the bottom 10% of over 250 industries [5] - The Zacks Rank system indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [5] Analyst Insights - Recent changes to analyst estimates for Celestica suggest a favorable outlook on the company's business health and profitability [8] - The Zacks Rank, which incorporates estimate changes, provides a quantitative model for assessing stock performance [9] Valuation Metrics - Celestica's Forward P/E ratio is currently 17.15, which is a premium compared to the industry's average Forward P/E of 15.4 [10]