Core Insights - Celestica Inc. and Flex Ltd. are prominent players in the electronics manufacturing services (EMS) industry, serving various sectors including cloud computing, automotive, healthcare, and industrials [1][3] - Both companies are strategically positioned to capitalize on the growing demand for advanced manufacturing solutions driven by technologies such as AI, IoT, and 5G [2][7] Celestica Overview - Celestica has over 25 years of manufacturing experience and focuses on cloud-optimized data storage and networking solutions, benefiting from the generative AI boom [4] - The company is experiencing growth from its 800G network switches, essential for AI applications and data center operations, contributing to solid top-line growth [5] - Despite its growth, Celestica faces challenges with high research and development costs leading to margin contraction and stiff competition from major players like Foxconn and Jabil [6] Flex Overview - Flex operates in 30 countries and is well-positioned to meet the demands of emerging technologies, including IoT and autonomous vehicles [7] - The company reported a 50% growth in its cloud and data center power business in fiscal 2025, with expectations for continued strength into fiscal 2026 [8][9] - Flex's shares trade at a lower forward P/E ratio of 14.49 compared to Celestica's 22.72, making it more attractive from a valuation perspective [14] Financial Performance - Celestica's 2025 sales and EPS are expected to grow by 13.1% and 30.1%, respectively, with positive trends in EPS estimates over the past 60 days [11] - Flex's 2025 sales are projected to rise by 0.4% and EPS by 9.4%, with recent upward revisions in EPS estimates [12] - Over the past year, Celestica's stock has gained 119.8%, outperforming the industry growth of 51.7%, while Flex's stock has increased by 36.6% [13] Investment Considerations - Celestica shows strong revenue and EPS growth, while Flex's valuation metrics appear more attractive, leading to a Zacks Rank of 2 (Buy) for Flex compared to Celestica's 3 (Hold) [15][16] - Both companies anticipate improvements in sales and profits for 2025, but Flex is currently viewed as the better investment option based on Zacks Rank [16]

Group 1 - Khaveen Investments is a Macroquantamental Hedge Fund managing a globally diversified investment portfolio across various asset classes, countries, sectors, and industries [1] - The investment approach combines top-down and bottom-up methodologies, integrating global macro, fundamental, and quantitative strategies [1] - The fund serves accredited investors globally, including high-net-worth individuals, corporations, associations, and institutions [1] Group 2 - The strategic focus of Khaveen Investments is on transformative fields such as Artificial Intelligence, Cloud Computing, 5G, Autonomous & Electric Vehicles, FinTech, Augmented & Virtual Reality, and the Internet of Things [1] - The company possesses specialized expertise in cutting-edge technologies that are reshaping numerous industries [1]