Company Overview - Jabil (JBL) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to the market [3] Price Performance - Over the past week, Jabil's shares increased by 1.19%, while the Zacks Electronics - Manufacturing Services industry rose by 1.52% [5] - In the last month, Jabil's stock price changed by 4.18%, outperforming the industry's 1.74% [5] - Over the past quarter, Jabil's shares have surged by 19.78%, and they have gained 87.05% over the last year, compared to the S&P 500's -5.1% and 15.18% respectively [6] Trading Volume - Jabil's average 20-day trading volume is 1,416,843 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Estimates - In the past two months, five earnings estimates for Jabil have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $11.58 to $12.30 [9] - For the next fiscal year, five estimates have also moved upwards without any downward revisions [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, Jabil is positioned as a promising investment opportunity with a Momentum Score of A and a Zacks Rank of 2 (Buy) [10]

Core Insights - Sanmina Corporation (SANM) is leveraging its diverse product offerings to strengthen its market presence across various sectors, including medical, defense, aerospace, communication, cloud infrastructure, automotive, industrial, and energy [1] Group 1: Company Overview - The company provides comprehensive end-to-end solutions encompassing product design, engineering, manufacturing, logistics, and after-market support, allowing clients to depend on a single partner throughout the product lifecycle [2] - Sanmina's vertically integrated manufacturing process enhances operational flexibility and responsiveness, enabling swift adjustments to investments and production processes in response to market changes [3] - The vertical integration strategy facilitates the development of customized solutions tailored to diverse customer specifications, optimizing costs and accelerating time to market [4] Group 2: Competitive Landscape - Sanmina competes with Jabil, Inc. (JBL) and Celestica, Inc. (CLS) in the electronic manufacturing services sector, with Jabil focusing on AI data center infrastructure, warehouse automation, and renewable energy among other areas [5] - Celestica emphasizes product diversification and high-value market presence, supported by strong R&D capabilities to produce complex technology infrastructure products [6] Group 3: Financial Performance - Sanmina's stock has increased by 71.5%, while the Electronics - Manufacturing Services industry has grown by 108.9% [7] - The company's diverse portfolio contributes to revenue stability, with rising earnings estimates for 2025 and 2026 indicating an improving outlook [8][11] - Currently, Sanmina's shares are trading at 12.2 times forward 12-month earnings, which is lower than the industry average [9]

Company Performance - Celestica's stock closed at $273.58, reflecting a decrease of -2.97% from the previous day's closing price, underperforming the S&P 500 which fell by 1.36% [1] - Prior to the recent trading session, Celestica's shares had declined by 1.64%, which was worse than the Computer and Technology sector's loss of 0.24% and slightly better than the S&P 500's loss of 1.76% [1] Upcoming Earnings - Analysts anticipate that Celestica will report earnings of $2.07 per share, indicating a year-over-year growth of 72.5% [2] - The consensus estimate for quarterly revenue is projected at $4 billion, representing an increase of 51.16% compared to the same period last year [2] Full Year Estimates - For the full year, analysts expect earnings of $8.83 per share and revenue of $17.03 billion, which would signify increases of +45.95% and +37.42% respectively from the previous year [3] Analyst Sentiment - Recent changes in analyst estimates for Celestica suggest a positive outlook on the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which incorporates these estimate changes, indicates a favorable rating for Celestica, currently holding a Zacks Rank of 2 (Buy) [6] Valuation Metrics - Celestica is currently trading at a Forward P/E ratio of 31.93, which is higher than the industry's Forward P/E of 23.96, indicating a premium valuation [7] - The Electronics - Manufacturing Services industry, to which Celestica belongs, has a Zacks Industry Rank of 5, placing it in the top 3% of over 250 industries [7]

Core Insights - Jabil (JBL) reported quarterly earnings of $2.69 per share, exceeding the Zacks Consensus Estimate of $2.54 per share, and showing an increase from $1.94 per share a year ago, resulting in an earnings surprise of +6.01% [1] - The company achieved revenues of $8.28 billion for the quarter ended February 2026, surpassing the Zacks Consensus Estimate by 5.83%, and up from $6.73 billion year-over-year [2] - Jabil has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Jabil's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.89 on revenues of $8.06 billion, and for the current fiscal year, it is $11.62 on revenues of $32.62 billion [7] Industry Context - The Electronics - Manufacturing Services industry, to which Jabil belongs, is currently ranked in the top 3% of over 250 Zacks industries, indicating a favorable outlook for stocks in this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Company Overview - Sanmina is a Zacks Rank 1 (Strong Buy) company operating in the Electronics - Manufacturing Services industry, which ranks in the Top 2% of Zacks Industry Rank [2] - The company plays a crucial role in the production of essential components for modern technology, including circuit boards, complex systems, communications equipment, cloud hardware, medical devices, and aerospace electronics [2] Earnings Estimates - Sanmina has experienced positive earnings estimate revisions for both the current year and the next year, contributing to its strong buy rating [4] - Over the last 60 days, the Zacks Consensus Estimate for the current year has increased from $9.64 to $10.06, while next year's estimate has risen from $11.46 to $12.11 [4] Growth Drivers - The company's growth is supported by several structural tailwinds, including demand for cloud infrastructure, AI and data center hardware, defense and aerospace electronics, medical device manufacturing, and industrial automation [5] - Sanmina is positioned at the center of significant trends driving global technology spending [5] Valuation Metrics - Sanmina's current valuation metrics suggest it is undervalued, with a forward PE of 12.3x, a price-to-sales ratio of 0.73, and a PEG ratio of 0.47 [5] - The company has reported a 58% year-over-year sales growth, with strong growth forecasts for the future, indicating a potential misalignment between its performance and stock price [5]

Core Insights - Celestica's recent earnings report showed strong performance, with adjusted earnings and revenues surpassing estimates, indicating potential for future growth [2][3]. Financial Performance - Quarterly net earnings reached $267.5 million or $2.31 per share, a significant increase from $151.7 million or $1.29 per share in the same quarter last year, driven by top-line improvement [4]. - Revenues for the quarter were $3.65 billion, reflecting a 44% year-over-year increase, exceeding management's guidance and the Zacks Consensus Estimate by $189 million [5]. - The Connectivity & Cloud Solutions (CCS) segment saw revenues rise 64% year over year to $2.86 billion, accounting for 78.3% of total revenues [6]. Segment Analysis - The Communications end market contributed to the CCS segment's growth, with hardware platform solutions revenues increasing 72% year over year to $1.4 billion, and segment margin improving to 8.4% [7]. - The Advanced Technology Solutions segment experienced a slight decline in revenues, down 1% year over year to $0.8 billion, but its margin improved to 5.3% [8]. Cash Flow and Liquidity - Operating cash flow for the quarter was $250.6 million, up from $143.4 million in the previous year, with free cash flow increasing to $155.9 million [9]. - As of December 31, 2025, the company held $595.6 million in cash and cash equivalents, with long-term debt at $750.5 million [10]. Future Guidance - For Q1 2026, Celestica anticipates revenues between $3.85 billion and $4.15 billion, with non-GAAP earnings per share expected to be in the range of $1.95 to $2.15 [12]. - The company projects 2026 revenues to be approximately $17 billion, an increase from the previous estimate of $16 billion, with non-GAAP adjusted earnings expected to be $8.75 per share [13]. Market Sentiment - Recent estimates for Celestica have shown an upward trend, with a consensus estimate shift of 15.1% [14]. - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [16]. Industry Comparison - Celestica operates within the Zacks Electronics - Manufacturing Services industry, where competitor Sanmina reported a 59% year-over-year revenue increase, highlighting strong industry performance [17].

Company Performance - Plexus (PLXS) has seen a significant increase in its stock price, rising 29.9% over the past month and reaching a new 52-week high of $211.84 [1] - Year-to-date, Plexus has gained 41.7%, outperforming the Zacks Computer and Technology sector's 0.7% gain and the Zacks Electronics - Manufacturing Services industry's 12.5% return [1] Earnings and Revenue Expectations - Plexus has a strong track record of positive earnings surprises, having met or exceeded earnings consensus estimates in the last four quarters [2] - For the current fiscal year, Plexus is expected to report earnings of $7.61 per share on revenues of $4.45 billion, reflecting a 2.42% increase in EPS and a 10.46% increase in revenues [3] - For the next fiscal year, earnings are projected to rise to $8.45 per share on revenues of $4.81 billion, indicating year-over-year changes of 11.04% and 7.94%, respectively [3] Valuation Metrics - Plexus currently trades at 27.4 times the current fiscal year EPS estimates, which is above the peer industry average of 25.2 times [6] - On a trailing cash flow basis, Plexus trades at 22.1 times, compared to the peer group's average of 20 times [6] - The stock has a Value Score of B, a Growth Score of C, and a Momentum Score of A, resulting in a combined VGM Score of B [6] Zacks Rank - Plexus holds a Zacks Rank of 2 (Buy), supported by a solid earnings estimate revision trend [7] - The recommendation is for investors to consider stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, indicating potential for Plexus shares in the near future [7] Industry Comparison - The Electronics - Manufacturing Services industry is performing well, ranking in the top 2% of all industries, providing favorable conditions for both Plexus and its peer, Jabil, Inc. (JBL) [10] - Jabil, Inc. also has a Zacks Rank of 2 (Buy) and has shown strong earnings performance, beating consensus estimates by 4.78% last quarter [9]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling even higher, capitalizing on established price movements [1] Company Overview: Plexus (PLXS) - Plexus currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), which is associated with a historical outperformance in the market [3] Price Performance - Over the past week, Plexus shares increased by 3.46%, while the Zacks Electronics - Manufacturing Services industry rose by 8.88% [5] - In a longer time frame, Plexus shares have appreciated by 30.75% over the past month, outperforming the industry's 14.19% [5] - Over the last quarter, Plexus shares surged by 46.91%, and over the past year, they gained 46.12%, compared to the S&P 500's increases of 3.37% and 15.17%, respectively [6] Trading Volume - Plexus has an average 20-day trading volume of 407,527 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, two earnings estimates for Plexus have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $7.49 to $7.61 [9] - For the next fiscal year, two estimates have also moved upwards without any downward revisions [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, Plexus is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment option [11]

Core Insights - Celestica, Inc. (CLS) reported strong fourth-quarter 2025 results with adjusted earnings and revenues exceeding Zacks Consensus Estimates, driven by significant growth in the Connectivity & Cloud Solutions (CCS) segment [1][9] Financial Performance - Total revenues in the CCS segment increased by 64% year over year to $2.86 billion, with the Enterprise business revenues rising by 33% and the Communications end market achieving 79% growth [2] - Celestica generated $250.6 million in cash from operations, up from $143.4 million in the previous year, and free cash flow increased by 62.7% year over year to $155.9 million, indicating strong capital management [4] - The company's inventory balance rose to $2.19 billion, an increase of $427 million compared to the prior year, while cash cycle days improved by 8 days to 61 days, reflecting efficient inventory management [5] Strategic Partnerships and Market Position - Celestica is collaborating closely with Google on complex data center hardware, serving as the preferred manufacturing partner for Google's Tensor Processing Unit (TPU), and is expanding its capacity to support the adoption of these systems [3] - The company has outperformed its peers, with its stock increasing by 125.4% over the past year, compared to 74.4% growth in the Electronics - Manufacturing Services industry [10][11] Challenges and Risks - Growth is heavily reliant on AI data center spending by hyperscalers, with significant customer concentration risk as the top three customers account for approximately 63% of total revenues [6] - The Advanced Technology Solutions segment experienced a 1% decline in revenues year over year, and the company faces challenges from foreign exchange fluctuations and geopolitical volatility [7][6] Valuation Metrics - Celestica's shares are currently trading at a premium with a price/earnings ratio of 34.42 for forward 12-month earnings, compared to 23.59 for the industry [13]

Core Insights - Celestica Inc. (CLS) reported strong Q4 2025 earnings with adjusted EPS of $1.89, exceeding the Zacks Consensus Estimate of $1.74 and the previous year's EPS of $1.11. Quarterly revenues reached $3.65 billion, surpassing the Zacks Consensus Estimate of $3.46 billion and showing a 44% year-over-year increase [1][9]. Financial Performance - The Connectivity & Cloud Solutions (CCS) segment saw a 64% year-over-year revenue increase, contributing 78.3% to total revenues in Q4. In contrast, the Advanced Technology Solutions segment experienced a 1% decline in revenues year-over-year [2][9]. - For Q1 2026, Celestica anticipates revenues between $3.85 billion and $4.15 billion, with non-GAAP EPS projected to be in the range of $1.95 to $2.15. The non-GAAP operating margin is expected to be around 7.8% [8][10]. Market Trends and Demand - The demand in the CCS segment is driven by strong performance in the communications market, particularly in the Hyperscaler Portfolio Solutions networking business and optical programs, with increasing demand for 800G and 400G network switches [4][7]. - The rise of AI applications and generative AI tools is boosting investments in AI across the technology sector, leading to increased demand for Celestica's data communications and processing infrastructure products [5][7]. Product Innovation - Celestica launched the SD6300 ultra-dense storage expansion system to address the growing AI data needs in enterprise and hyperscale data centers, optimizing space utilization within standard racks [6]. Growth Outlook - Celestica's 2026 revenue target has been raised to approximately $17 billion, up from a previous estimate of $16 billion. Non-GAAP EPS is now expected to be $8.75, an increase from the prior estimate of $8.20 per share [10]. - The company has an expected revenue growth rate of 29.2% and an earnings growth rate of 36.9% for the current year, with improvements in the Zacks Consensus Estimate for earnings over the past week [11]. Industry Position - The Electronics - Manufacturing Services industry, where Celestica operates, is currently ranked in the top 7% of the Zacks Industry Rank, with a remarkable 101% return over the past year and a year-to-date return of 78.6% [16]. - Celestica's innovative product portfolio and strong market presence in the AI data center market position it as a favorable investment opportunity [17].