Celestica (CLS) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Celestica (CLS) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors often adjust their valuations based on earnings estimates, leading to significant stock price movements when estimates are revised [3]. Celestica's Earnings Outlook - Celestica is projected to earn $5.05 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 30.2% [7]. - Over the past three months, the Zacks Consensus Estimate for Celestica has risen by 1.7%, indicating a positive trend in earnings expectations [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade of Celestica to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9].