Is Celestica (CLS) a Solid Growth Stock? 3 Reasons to Think "Yes"

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system simplifies the identification of promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Celestica (CLS) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being a strong indicator of a company's potential [4] - Celestica's historical EPS growth rate is 42.7%, with projected EPS growth of 50.2% this year, significantly outperforming the industry average of -3.8% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, enabling them to expand without relying on external funding [6] - Celestica's year-over-year cash flow growth is 19.4%, exceeding the industry average of 12.7% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 19.2%, compared to the industry average of 9.2% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [8] - Celestica has seen a 12.4% increase in current-year earnings estimates over the past month [8] Group 5: Conclusion - Celestica has achieved a Growth Score of A and a Zacks Rank 1 due to its strong earnings estimate revisions and growth metrics, positioning it well for potential outperformance [9][10]