Core Insights - Celestica Inc. has received an upward revision in its fiscal 2026 outlook by approximately $1 billion, with Barclays raising its price target to $391 from $359 and maintaining an Overweight rating, indicating confidence in sustained demand and improving earnings visibility [1][3] Financial Performance - In Q4 2025, Celestica reported a revenue increase of 44% year-over-year to $3.65 billion, with full-year revenue growth of 28% to $12.39 billion and a doubling of GAAP EPS [3] - Management has raised its 2026 revenue guidance to $17.0 billion and adjusted EPS to $8.75, supported by demand for AI-driven data center hardware [3] Capital Expenditures and Growth Strategy - The company plans to increase capital expenditures to $1 billion in 2026 to support long-term AI infrastructure programs, with funding expected from operating cash flow [3] - Strong execution, expanding margins, and self-funded growth investments position Celestica to capitalize on structural AI spending through 2027 and beyond [3] Company Overview - Celestica Inc., founded in 1994 and headquartered in Toronto, is a multinational electronics manufacturing services provider, operating in over 15 countries and serving sectors such as AI, aerospace, defense, health technology, and industrial markets [4]

Celestica Inc (NYSE:CLS) is one of the best NYSE stocks to buy for the long term. Celestica Inc (NYSE:CLS) reported its Q4 2025 earnings on January 28. Revenue soared 44% YoY to $3.65 billion, as adjusted EPS jumped to $1.89 from $1.11 in the prior year. Celestica Inc (CLS): Analysts Bullish Amid Strong 2026 Outlook Carol Gauthier/Shutterstock.com On the back of the strong finish to 2025, Celestica raised its outlook for 2026. It now expects 2026 revenue of $17 billion, which is a $1 billion boost to th ...

Core Insights - The Straits Times Index (STI) has surpassed the 5,000 mark, leading to compressed dividend yields for income investors, prompting a search for higher yields beyond blue-chip stocks [1] Group 1: Digital Core REIT (DCR) - Digital Core REIT is a data centre REIT with assets under management of US$1.8 billion, owning 11 freehold data centres across multiple countries [2] - DCR reported a gross revenue increase of 72.2% year-on-year to US$176.2 million and a net property income rise of 43.5% to US$88.7 million [2] - The distribution per unit (DPU) remained stable at US$0.0360, supported by demand-driven rental growth, including a 31% positive cash rental reversion [3][4] Group 2: Valuetronics Holdings - Valuetronics is an integrated electronics manufacturing services provider, with a revenue decline of 3% year-on-year to just under HK$837 million for the first half of FY2026 [5] - The company is undergoing a transformation focused on margin improvement, with gross margin expanding from 16.8% to 18.8% due to growth in the higher-margin Industrial and Commercial Electronics segment [6][7] - Valuetronics declared an interim and special dividend totaling HK$0.08 per share, indicating management's confidence in cash position despite a 29.3% drop in interest income [8][9] Group 3: United Hampshire US REIT (UHREIT) - UHREIT owns 20 grocery-anchored retail properties and two self-storage facilities, with assets under management of US$731.7 million [10] - The REIT reported a gross revenue increase of 1.4% year-on-year to around US$18 million, while net property income rose 5.7% to US$12.7 million [10] - Distributable income surged 15.5% year-on-year in 3Q2025 to US$7 million, driven by reduced borrowing costs, and DPU for 1H2025 increased by 4% year-on-year to US$0.0209 [11][12] Group 4: Investment Insights - The article emphasizes the importance of understanding the underlying business supporting dividend payouts rather than focusing solely on yield percentages [14][15] - DCR's distributions are backed by strong demand for data centres, Valuetronics is improving profitability through a shift to higher-margin products, and UHREIT is growing income through lower finance costs and strategic acquisitions [14][15]

Group 1 - The core message emphasizes the importance of revitalizing the domestic semiconductor industry while also looking globally [1] - Foxconn's parent company, Hon Hai Group, held a grand annual meeting in Taipei, where 10 lucky employees won a special founder's award of 10 million NTD each (approximately 2.2 million RMB) [3] - The event, named "2026 All Hon Hai Sports Carnival," attracted over 30,000 participants, including employees and their families from various countries [3] Group 2 - Hon Hai Group achieved a record revenue of over 8 trillion NTD last year and aims to continue challenging for new highs in revenue this year [4] - Chairman Liu Yangwei expressed gratitude to all employees for their contributions to the company's success and highlighted the close relationship between him and founder Terry Gou [3][4]

Core Insights - Celestica (CLS) has experienced a significant stock increase of 116% over the past year and an impressive 2,145% over the past three years, indicating strong market performance despite valuation concerns [1] - The company is set to invest $1 billion in capacity expansion to meet rising demand for AI infrastructure, reinforcing its long-term investment potential [2] Company Overview - Celestica operates through two main segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS) [3] - ATS serves sectors such as aerospace and defense, industrial applications, HealthTech, and capital equipment, while CCS focuses on communications and enterprise markets, including servers and storage systems [4] Market Demand and Growth - The surge in demand from the communications end market, particularly in data center networking, is a significant growth driver for Celestica [5] - Revenue from the communications end market increased by 79% in Q4, largely due to strong demand and the scaling of 800G networking switch programs for major hyperscaler customers [6] - The enterprise end market also saw robust growth, with revenue up 33%, driven by the ramp-up of a next-generation AI and machine learning compute program for a major hyperscaler client [6] Segment Performance - A notable portion of growth is attributed to Celestica's Hardware Platform Solutions (HPS) business within the CCS segment, which generated $1.4 billion in Q4 revenue, a 72% year-over-year increase, and accounted for 38% of total company revenue [7] - The growth in HPS was primarily due to rising volumes in 800G switch programs across multiple hyperscaler customers [7]

Core Insights - Jabil Inc. (NYSE:JBL) is recognized as one of the best performing stocks in the S&P 500 over the past five years [1] - The company's shares reached an all-time high of $259.74 on February 6, 2026, reflecting a year-over-year increase of over 54% and a more than 12% rise in 2026 [2] Strategic Developments - On January 20, 2026, Jabil announced a manufacturing partnership and strategic minority investment with Eagle Harbour Technologies (EHT Semi), aimed at enhancing semiconductor fabrication through improved plasma stability and accuracy [3] - This partnership aligns with Jabil's strategy to increase its exposure to semiconductor capital equipment and supports the delivery of SEMI-compliant power solutions at scale [3] Analyst Ratings - On January 14, 2026, BofA maintained a 'Buy' rating on Jabil and raised its price target from $265 to $280 following discussions with senior management [4] - Jabil provides a range of electronics and diversified manufacturing services, including engineering, supply chain, and production solutions across global markets [4]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns, although identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics, with Flex (FLEX) currently highlighted as a recommended stock due to its favorable Growth Score and top Zacks Rank [2] - Stocks with a Growth Score of A or B and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) have historically outperformed the market, making them attractive options for growth investors [3] Group 2: Earnings Growth - Earnings growth is a critical factor for investors, with double-digit growth being particularly desirable as it indicates strong future prospects and potential stock price increases [3] - Flex has a historical EPS growth rate of 12%, but projected EPS growth for the current year is significantly higher at 21.7%, surpassing the industry average of 14.4% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [5] - Flex's year-over-year cash flow growth stands at 9.1%, which is notably higher than the industry average of -1.1% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 15.9%, compared to the industry average of 5.6%, indicating strong historical performance [6] Group 4: Earnings Estimate Revisions - Trends in earnings estimate revisions are indicative of a stock's potential performance, with positive revisions correlating strongly with near-term stock price movements [7] - The current-year earnings estimates for Flex have been revised upward, with the Zacks Consensus Estimate increasing by 2.2% over the past month [8] Group 5: Overall Positioning - Flex has achieved a Growth Score of B and a Zacks Rank of 2, reflecting its strong performance metrics and positive earnings estimate revisions, positioning it well for potential outperformance in the market [9]

PSU Banks - PSU banks are trading at attractive valuations of 1-1.5x book value, with earnings growth projected at 12-20% annually, creating reasonable valuations for investors [1][19] - The potential for rerating from 1x to 1.5x book value depends on maintaining growth quality and the ability to monetize real estate through REITs, which can unlock tier I capital without government recapitalization [3][7][19] - Government ownership in PSU banks has decreased below 75%, alleviating concerns about future dilution from government stake sales, which supports the rerating thesis [8][19] Private Sector Banks - Mid-level and larger private sector banks are also seen as having potential for good returns as credit growth returns to healthy levels of around 15%, despite their unimpressive historical performance [2][22] - Investors are encouraged to evaluate both public and private banks based on growth quality, asset quality maintenance, and valuation rather than making reflexive choices [23] Real Estate Monetization - The budget provision allowing CPSEs to monetize owned properties through REITs represents a significant opportunity for PSU banks to convert undervalued assets into tier I capital [4][6][7] - Many PSU banks hold real estate purchased decades ago at historical book prices, and divesting these assets can fund growth without requiring government support [6][7] Structural Growth Themes - The semiconductor and electronics manufacturing services (EMS) sectors are identified as having strong long-term growth prospects, with current capital expenditures expected to translate into revenues by 2027 [20][24] - High-tech manufacturing is anticipated to benefit from budget changes and trade deals, creating opportunities in capital expenditure-oriented plays initially, followed by manufacturing companies [20][24] - The electrical transmission ecosystem is poised for substantial gains due to increased government focus on energy production, necessitating investments in transmission and management infrastructure [14][15][25] Rare Earth Investments - The rare earth sector is highlighted as a strategic area for investment, with tax incentives creating potential for high-yield investments over a five to six-year horizon [17][21][25] - Investors are advised to monitor developments in this sector closely, as it holds strategic importance given global supply chain concerns [25]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy [3] Group 2: Flex (FLEX) Stock Analysis - Flex (FLEX) has shown a four-week price change of 4%, indicating growing investor interest [4] - The stock has gained 6.7% over the past 12 weeks and has a beta of 1.24, suggesting it moves 24% higher than the market [5] - FLEX has a Momentum Score of B, indicating a favorable time to invest [6] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investors [7] - FLEX is trading at a Price-to-Sales ratio of 0.88, suggesting it is undervalued [7] Group 3: Investment Opportunities - FLEX appears to have significant potential for growth at a fast pace, alongside other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria [8] - There are over 45 Zacks Premium Screens available for investors to identify winning stock picks based on their investing style [9]

Core Viewpoint - Growth investors are increasingly focused on identifying stocks with above-average financial growth, which can lead to solid returns, but finding such stocks is challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Fabrinet (FN) is currently highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company specializes in assembling optical, electro-mechanical, and electronic devices for other firms [3] Group 2: Earnings Growth - Fabrinet has a historical EPS growth rate of 23.7%, with projected EPS growth of 33.6% for the current year, significantly surpassing the industry average of 23.9% [5] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Fabrinet stands at 12.6%, outperforming the industry average of -5.3% [6] - Over the past 3-5 years, the company's annualized cash flow growth rate has been 20.6%, compared to the industry average of 5.2% [7] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Fabrinet, with the Zacks Consensus Estimate for the current year increasing by 2.5% over the past month [8] Group 5: Investment Positioning - Fabrinet's combination of a Zacks Rank 1 and a Growth Score of B positions it well for potential outperformance, making it an attractive option for growth investors [10]