Core Insights - Jabil, Inc. (JBL) has experienced a stock price increase of 58.1% over the past year, underperforming compared to the industry growth of 97.6% and peers like Celestica Inc. (CLS) which surged 206.2% [1][8] Group 1: Company Performance - Jabil's revenue for fiscal 2026 is projected to reach $32.4 billion, an increase from the previous estimate of $31.3 billion, with earnings per share (EPS) raised to $11.55 from $11.00 [10][8] - The Zacks Consensus Estimate for Jabil's fiscal 2026 earnings has increased by 12.4% to $11.55 per share, indicating positive sentiment regarding the stock's growth potential [13] Group 2: Growth Drivers - Jabil is expected to benefit from growth in AI data center infrastructure, capital equipment, and warehouse automation markets, alongside the rapid adoption of 5G wireless and cloud computing [6][10] - The company's focus on end-market and product diversification is a key growth catalyst, aiming for no single product or product family to exceed 5% of operating income or cash flows in any fiscal year [5] Group 3: Strategic Initiatives - Jabil has reorganized its internal structure to align operations with specific end markets, aiming to develop domain-specific expertise and enhance responsiveness to market demands [9] - The company is positioned to capitalize on growth opportunities in sectors such as AI data center hardware, power and energy infrastructure, and healthcare, supported by strong margins and robust free cash flow [16][17] Group 4: Technological Advancements - Jabil's optical modules, developed in collaboration with Intel Corporation, are designed to enhance performance in AI/ML applications, promising significant improvements in data transmission efficiency and reliability [12][11] - The company's commitment to leveraging cutting-edge technology positions it as a strategic partner in the AI/ML ecosystem, enhancing its competitive edge [11]

Core Insights - Foxconn, the world's largest contract electronics manufacturer, reported a significant increase in revenue during the final quarter of 2025, highlighting ongoing growth momentum in the electronics sector [1] Company Performance - The revenue surge in the last quarter of 2025 indicates strong demand for Foxconn's manufacturing services, particularly in relation to its partnership with Nvidia [1] - This performance reflects the broader trends in the electronics industry, where demand for advanced technology products continues to rise [1]

Core Insights - Foxconn reported a 22% increase in revenues for Q4 2025, driven by heightened spending on AI infrastructure by tech firms [1] - The company's revenues reached 2.6 trillion Taiwan dollars ($83 billion), exceeding analyst expectations of NT$2.4 trillion ($77 billion) [1] - Foxconn's share price increased by 25% throughout 2025, following a significant 76% rise in the previous year [2] Company Overview - Foxconn, also known as Hon Hai, is the world's largest contract electronics manufacturer, producing servers for data centers and assembling Apple's iPhone [2] - The company has positioned itself as a crucial player in the AI sector as businesses accelerate the development of related infrastructure [2]

Core Viewpoint - Foxconn, the world's largest contract electronics manufacturer, achieved record revenue in the fourth quarter, primarily due to robust demand for artificial intelligence products [1] Company Summary - Foxconn reported record fourth-quarter revenue, indicating strong performance in the electronics sector [1] - The growth in revenue is attributed to the increasing demand for artificial intelligence products, highlighting a significant trend in the industry [1]

Core Viewpoint - Foxconn reported record fourth-quarter revenue driven by strong demand for artificial intelligence products, with revenue reaching T$2.6028 trillion ($82.73 billion), a 22.07% increase from the same quarter last year [1]. Group 1: Financial Performance - Revenue exceeded the T$2.418 trillion LSEG SmartEstimate, indicating strong performance relative to analyst forecasts [2]. - Fourth-quarter revenue grew significantly both quarter-on-quarter and year-on-year, surpassing expectations and setting a high base for comparison for the first quarter of 2026 [2]. - On a U.S. dollar basis, fourth-quarter revenue rose 26.4% [2]. Group 2: Segment Performance - Growth was primarily driven by the cloud and networking products division, fueled by booming demand for AI products [3]. - The smart consumer electronics segment, which includes iPhones, experienced a slight revenue decline due to unfavorable exchange rates [3]. - In December, Foxconn achieved revenue of T$862.86 billion, marking a 31.77% annual increase and setting a record for that month [3]. Group 3: Stock Performance - Foxconn's shares rose 25.3% last year, aligning with the broader Taiwan market, and closed up 1.08% on Monday ahead of the revenue data [4]. - The benchmark index gained 2.57% on the same day [4].

Core Viewpoint - Antique projects CY26 as a potential turning point for Indian equities, anticipating a recovery in corporate profits and foreign portfolio investor (FPI) flows, with a target of 29,500 for the Nifty index, implying a 13% upside from current levels [1][13] Earnings Outlook - Nifty earnings are expected to grow at a compound annual rate of approximately 16% over FY26–28, significantly higher than the 7% CAGR recorded over FY24–26 [1][13] - The brokerage emphasizes an earnings-led market recovery rather than relying on multiple expansions, with corporate earnings positively correlated with wholesale price inflation and nominal GDP growth, both expected to normalize in FY27 [3][13] - A broad-based recovery in profits is anticipated, particularly in sectors such as electronics manufacturing services, telecom, industrials, and retail, while oil and gas, IT services, power utilities, FMCG, and automobiles are expected to lag [3][13] Capital Expenditure and Financials - The capital expenditure theme is expected to rebound after two years of slowdown, with favorable conditions across global monetary policies and domestic support [7][13] - Financials are a core focus, with expectations for banks to enter an earnings upcycle in CY26, supported by a strong domestic macro backdrop and the nearing end of the rate-cut cycle [8][13] - Public sector banks are favored due to comparable growth metrics to private lenders while trading at a 45% discount [8][13] Consumption Sector and Mid/Small-Cap Stocks - The broader consumption sector is viewed with caution due to high valuations and competitive pressures, although select discretionary segments like alcoholic beverages and hotels are seen positively [9][13] - Mid- and small-cap stocks are expected to show earnings growth that outpaces the Nifty over the next two to three years, driven by domestic cyclicals and increased capex activity [10][13] Stock Picks and Market Flows - Top large-cap stock picks include ICICI Bank, State Bank of India, and Hindustan Aeronautics, while mid-cap and small-cap preferences include Siemens Energy India and Chalet Hotels, respectively [11][13] - After a significant outflow of $17.5 billion from Indian equities in CY25, Antique anticipates stabilization and potential revival of FPI flows in CY26, supported by low FPI ownership and reasonable valuations [11][13] - Despite trading at a premium to historical averages, valuations are expected to be sustained due to lower bond yields and sectoral divergence, with many Nifty 500 stocks having corrected over 20% from their highs [12][13]

Industry Overview - The global electronics manufacturing services (EMS) industry is experiencing significant growth, driven by AI data centers, consumer electronics, IoT markets, 5G adoption, and automotive innovations, particularly electric vehicles. The EMS industry is projected to grow at a compound annual growth rate (CAGR) of 6.95% from 2025 to 2034 [1]. Company Analysis: Flex Ltd (FLEX) - Flex is well-positioned for multi-year growth, with its data center business identified as the primary growth engine, significantly influenced by AI infrastructure developments [3][4]. - The company has introduced a new AI infrastructure platform that enhances data center deployment speed by up to 30% and reduces execution risk [4]. - Flex's revenue from the data center segment is expected to rise at least 35% in the current fiscal year, benefiting from partnerships with leading technology companies like NVIDIA [5][10]. - Despite strong performance in the power and cloud markets, Flex anticipates a slight decline in Agility Solutions revenues due to softer demand in consumer devices and challenges from the Ukraine facility shutdown [7][8]. - The diversified portfolio of Flex continues to provide stability, with steady demand in the Health Solutions segment and growth in the Communications and enterprise segment [6]. Company Analysis: Jabil Inc (JBL) - Jabil's growth is driven by its expanding opportunities in healthcare, cloud, data center, and energy infrastructure, with its Intelligent Infrastructure segment emerging as a key growth driver [9]. - The Intelligent Infrastructure segment generated $3.9 billion in revenues in the first quarter of fiscal 2026, reflecting a 54% year-over-year increase and constituting 46% of total revenues [11]. - Jabil's cloud and data center business is projected to reach $9.8 billion for fiscal 2026, bolstered by new program wins and acquisitions [12]. - The healthcare segment is expected to remain a long-term growth catalyst, with strong visibility into program ramps across various medical technologies [13]. - Jabil's free cash flow was $1.3 billion in fiscal 2025, with expectations to maintain this level in fiscal 2026, allowing for share buybacks and continued investments [15]. Performance and Valuation - Over the past six months, FLEX and JBL have seen stock gains of 27.2% and 7.2%, respectively [16]. - FLEX is trading at a forward 12-month price/earnings ratio of 18.22X, while JBL is at 19.02X, indicating a slightly more favorable valuation for FLEX [17]. Earnings Estimates - Analysts have maintained FLEX's earnings estimates for the current fiscal year, with no revisions over the past 60 days [19]. - In contrast, JBL has seen a 4.5% upward revision in its earnings estimates during the same period [20]. Investment Outlook - FLEX currently holds a Zacks Rank of 3 (Hold), while JBL has a Zacks Rank of 2 (Buy), suggesting that JBL may present a better investment opportunity at this time [21].

Core Insights - Celestica, Inc. (CLS) reported an operating cash flow of $126.2 million for the third quarter, an increase from $122.8 million year-over-year, with total cash flow for the first nine months of 2025 reaching $408.9 million, up from $330.5 million in 2024 [2][9] - The company experienced a 43% increase in revenues from the Connectivity & Cable Solutions (CCS) segment, driven by demand for advanced networking products, particularly 400G and 800G switches, fueled by AI investments [3][9] - Celestica raised its free cash flow guidance for 2025 to $425 million, up from $400 million, supported by strong revenue growth and a stable cash cycle [5][9] Financial Performance - The inventory balance for Celestica was $2.05 billion, an increase of $226 million year-over-year and $129 million from the previous quarter, with cash cycle days improving to 68 days from 70 days in the second quarter of 2025 [4] - Free cash flow for the third quarter was $88.9 million, compared to $76.8 million in the same quarter last year, with capital expenditure at $37 million, representing 1.2% of revenues, below the expected range of 1.5-2% [5] Competitive Landscape - Competitors such as Sanmina Corporation reported a significant increase in cash flow, generating $199.1 million from operating activities in the fourth quarter of fiscal 2025, compared to $51.9 million the previous year, driven by growth in Communications Networks and Cloud Infrastructure [6] - Jabil, Inc. also showed strong performance with $323 million in net cash from operating activities in the first quarter of fiscal 2026, up from $312 million a year ago, and a free cash flow of $272 million compared to $226 million the previous year [7] Valuation and Estimates - Celestica's shares have increased by 223.5% over the past year, outperforming the industry growth of 105.1% [8] - The company trades at a forward price-to-earnings ratio of 36.51, significantly higher than the industry average of 24.37 [10] - Earnings estimates for 2025 have remained stable over the past 60 days, while estimates for 2026 have seen a decrease [11]

Group 1 - The company, Guanghong Technology, has entered the AI server market, focusing on manufacturing services for AI server computing boards and high-speed connection components [1] - The company has accumulated rich manufacturing experience and unique technological achievements in the AI server field [1]

Core Insights - Celestica, Inc. (CLS) reported quarterly revenues of $3.19 billion, reflecting a year-over-year increase of 27.8%, surpassing management's guidance and the Zacks Consensus Estimate by $170 million [1][8] Group 1: Company Performance - The growth in revenue was driven by strong demand in the Connectivity and Cable Solution portfolio, which saw net sales surge 43.2% year over year to $2.41 billion, primarily due to the demand for 800G and 400G switching products [3][8] - Celestica's management is optimistic about future revenue growth, projecting revenues between $3.325 billion and $3.575 billion for the next quarter, indicating a potential 36% year-over-year growth [4][8] - The company's shares have increased by 215.6% over the past year, significantly outperforming the industry growth of 93.7% [7] Group 2: Market Opportunities - The global data center networking market is valued at $38.49 billion in 2024, with a projected compound annual growth rate of 17.2% from 2025 to 2033, presenting a substantial growth opportunity for Celestica [4] - Celestica is actively collaborating with industry leaders like AMD and Broadcom to enhance its product offerings in the expanding AI infrastructure market [2] Group 3: Competitive Landscape - Competitors such as Jabil, Inc. and Flex Ltd. are also performing well, with Jabil reporting revenues of $8.3 billion, up from $6.96 billion year over year, and Flex generating $6.8 billion, up 4% year over year [5][6] - Jabil's growth was driven by demand in Capital Equipment and AI-related Cloud and Data Center Infrastructure, while Flex's diversified portfolio across multiple industries remains a key strength [5][6] Group 4: Valuation and Earnings Estimates - Celestica trades at a forward price-to-earnings ratio of 37.68, higher than the industry average of 24.13 [9] - Earnings estimates for 2025 have increased by 6.3% to $5.90, and for 2026, they have risen by 20.9% to $8.20 over the past 60 days [10]