Celestica (CLS) Stock Drops Despite Market Gains: Important Facts to Note

Company Performance - Celestica's stock closed at $246.42, reflecting a decrease of -2.61% from the previous day's closing price, underperforming the S&P 500 which gained 0.85% [1] - Over the past month, Celestica's shares have increased by 23.9%, significantly outperforming the Computer and Technology sector's gain of 4.39% and the S&P 500's gain of 2.38% [2] Financial Expectations - Analysts anticipate Celestica will report earnings of $1.45 per share, representing a year-over-year growth of 39.42%. Revenue is expected to reach $3 billion, indicating a 19.99% increase compared to the same quarter last year [3] - For the full year, earnings are projected at $5.55 per share and revenue at $11.63 billion, reflecting increases of +43.04% and +20.61% respectively from the previous year [4] Analyst Sentiment - Recent revisions in analyst estimates are crucial as they often indicate near-term business trends, with positive changes suggesting optimism regarding Celestica's business and profitability [4][5] - Celestica currently holds a Zacks Rank of 1 (Strong Buy), which has historically delivered an average annual return of +25% since 1988 [6] Valuation Metrics - Celestica is trading with a Forward P/E ratio of 45.59, which is a premium compared to the industry average Forward P/E of 20.08 [7] - The Electronics - Manufacturing Services industry, to which Celestica belongs, ranks 9th in the Zacks Industry Rank, placing it in the top 4% of over 250 industries [7][8]