Should You Bet on CLS Stock Amid Rising Estimate Revision Trend?

Core Insights - Earnings estimates for Celestica Inc. (CLS) for 2026 and 2027 have increased by 7.5% and 7.1% to $8.83 and $12.61 per share, indicating positive growth sentiment [1][6] Group 1: Growth Drivers - Celestica is benefiting from the generative AI boom, with strong demand for AI/ML compute and networking products from hyperscale customers [2] - The company is expanding its offerings through innovation, launching the SD6300 ultra-dense storage expansion system to address AI data growth [3] - New 1.6TbE data center switches, DS6000 and DS6001, have been introduced to support high-bandwidth AI/ML applications, effectively doubling switching capacity [4] Group 2: Financial Outlook - Celestica raised its 2026 revenue outlook to approximately $17 billion, up from $16 billion, with adjusted EPS expected to be $8.75 [12] - Non-GAAP operating margin is projected at 7.8%, and non-GAAP free cash flow is estimated at $500 million [12] Group 3: Market Position and Performance - The company has surged 209.2% over the past year, outperforming the industry growth of 115.8% and competitors like Flex Ltd. and Jabil Inc. [9] - Celestica's focus on product diversification and R&D enhances its market penetration across various industries, including communication, healthcare, and aerospace [7][8]