ZACKS·2025-11-24 14:55Core Insights - Celestica Inc. (CLS) and Pinterest, Inc. (PINS) are significant players in the technology sector, each with distinct expertise in electronics manufacturing services and visual recommendation platforms respectively [1][2] Celestica Overview - Celestica is a leading firm in the electronics manufacturing services (EMS) industry, providing a wide range of manufacturing and supply-chain solutions to various sectors including cloud services and original equipment manufacturers [1] - The company has over two decades of manufacturing experience and is focused on delivering cloud-optimized data storage and networking solutions, driven by the increasing demand for AI-based applications [4] - Celestica's product diversification and presence in high-value markets enhance its business resilience, reducing dependence on any single industry [5] - Despite its strengths, Celestica faces challenges with high operating expenses and stiff competition from major players like Foxconn and Flex, which have impacted its profit margins [6] Pinterest Overview - Pinterest offers a platform for users to save and organize visual recommendations, generating revenue through advertisements targeted at millennials and Gen Z [2][7] - The company is enhancing its advertising platform to provide unique value propositions for advertisers, including the Verified Merchants Program that allows brands to showcase shoppable products [7] - Pinterest is focusing on operational improvements and AI integration to enhance ad relevancy and personalization, which is expected to yield long-term benefits [8] - However, Pinterest anticipates a significant increase in operating expenses as it expands its operations and product offerings, facing competition from both larger and smaller firms [10] Financial Performance and Estimates - The Zacks Consensus Estimate for Celestica's 2025 sales and EPS indicates year-over-year growth of 26.3% and 52.1% respectively, with EPS estimates trending upward [11] - In contrast, Pinterest's 2025 sales are expected to grow by 16.1%, with EPS estimates showing a downward trend of 8.9% [12] - Over the past year, Celestica's stock has increased by 227.2%, outperforming the industry growth of 91.6%, while Pinterest's stock has declined by 18.2% [13] Valuation Comparison - Celestica appears more attractive from a valuation perspective, with a price/sales ratio of 2.06 compared to Pinterest's 3.54 [15] - Celestica holds a Zacks Rank of 1 (Strong Buy), while Pinterest has a Zacks Rank of 4 (Sell), indicating a more favorable investment outlook for Celestica [16] Conclusion - Both companies expect improvements in sales and earnings for 2025, but Celestica has demonstrated sharper revenue and EPS growth, making it a more appealing investment option compared to Pinterest [17]