A strong stock as of late has been Plexus (PLXS) . Shares have been marching higher, with the stock up 29.9% over the past month. The stock hit a new 52-week high of $211.84 in the previous session. Plexus has gained 41.7% since the start of the year compared to the 0.7% gain for the Zacks Computer and Technology sector and the 12.5% return for the Zacks Electronics - Manufacturing Services industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't m ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock characte ...

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].

Core Insights - Plexus Corp (PLXS) reported first-quarter fiscal 2026 adjusted earnings per share (EPS) of $1.78, surpassing the previous year's $1.73 and beating the Zacks Consensus Estimate of $1.77 per share [1][7] - Revenues reached $1.07 billion, reflecting a year-over-year increase of 9.6%, although it slightly missed the Zacks Consensus Estimate of $1.071 billion [1][7] - Management anticipates non-GAAP EPS to be in the range of $1.66-$1.81 and revenues between $1.05 billion and $1.09 billion for the upcoming quarter [1] Revenue Breakdown - Revenues from the Americas increased by 25.9% to $345 million, while revenues from EMEA and Asia-Pacific rose by 16.8% and 0.8%, respectively [2] - The company secured 22 manufacturing program wins, projected to contribute $283 million in annualized revenues once fully operational [2][7] Growth Outlook - Management indicated that program wins, market share gains, and increasing demand position the company to potentially exceed its revenue growth target of 9% to 12% for fiscal 2026 [3] - For the second quarter of fiscal 2026, revenues are expected to be between $1.11 billion and $1.15 billion, with non-GAAP operating margin anticipated to be between 5.6% and 6% [15] Segment Performance - Aerospace/Defense revenues grew by 11.3% year over year to $178 million, contributing 17% to total revenues [5] - Healthcare/Life Sciences revenues increased by 24.6% year over year to $466 million, accounting for 43% of total revenues [9] - Industrial sector revenues decreased by 3.6% year over year to $426 million, contributing 40% to total revenues [10] Financial Metrics - Gross profit on a GAAP basis rose by 5.4% year over year to $106.2 million, with a gross margin of 9.9%, down from 10.3% in the previous year [12] - Cash and cash equivalents stood at $248.8 million as of January 3, 2026, down from $306.5 million as of September 27, 2025 [13] - The company reported a negative free cash flow of $50.6 million after capital expenditures of $35.2 million [14]

分组1 - Celestica reported quarterly earnings of $1.89 per share, exceeding the Zacks Consensus Estimate of $1.74 per share, and showing a significant increase from $1.11 per share a year ago, resulting in an earnings surprise of +8.62% [1] - The company achieved revenues of $3.65 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 5.46%, and up from $2.55 billion in the same quarter last year [2] - Celestica has consistently outperformed consensus EPS and revenue estimates over the last four quarters, indicating strong operational performance [2] 分组2 - The stock has gained approximately 12.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $1.83 on revenues of $3.59 billion, while for the current fiscal year, the estimate is $8.21 on revenues of $16.01 billion [7] - The Electronics - Manufacturing Services industry, to which Celestica belongs, is currently ranked in the top 23% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]

Plexus (PLXS) came out with quarterly earnings of $1.78 per share, beating the Zacks Consensus Estimate of $1.77 per share. This compares to earnings of $1.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +0.57%. A quarter ago, it was expected that this electronic manufacturing services company would post earnings of $1.84 per share when it actually produced earnings of $2.14, delivering a surprise of +16.3%.Over the last fo ...

Group 1 - Sanmina reported quarterly earnings of $2.38 per share, exceeding the Zacks Consensus Estimate of $2.15 per share, and showing a significant increase from $1.44 per share a year ago, resulting in an earnings surprise of +10.96% [1] - The company achieved revenues of $3.19 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.89%, and up from $2.01 billion in the same quarter last year [2] - Sanmina has consistently outperformed consensus EPS and revenue estimates over the last four quarters, indicating strong operational performance [2] Group 2 - The stock has gained approximately 18.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 1% [3] - The future performance of Sanmina's stock will largely depend on management's commentary during the earnings call and the outlook for upcoming earnings [4][6] - The current consensus EPS estimate for the next quarter is $2.36 on revenues of $3.49 billion, and for the current fiscal year, it is $9.64 on revenues of $14 billion [7] Group 3 - The Electronics - Manufacturing Services industry, to which Sanmina belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a favorable outlook for companies within this sector [8] - Another company in the same industry, Celestica, is expected to report quarterly earnings of $1.74 per share, reflecting a year-over-year increase of +56.8%, with revenues projected at $3.47 billion, up 36.1% from the previous year [9][10]

Core Viewpoint - Celestica is expected to show significant earnings growth in its upcoming earnings release, with a projected EPS of $1.73, indicating a 55.86% increase year-over-year, and revenue forecasted at $3.45 billion, reflecting a 35.46% rise from the same quarter last year [2]. Company Performance - In the latest trading session, Celestica closed at $290.93, down by 6.08% from the previous day, underperforming the S&P 500, which gained 0.55% [1]. - Over the past month, Celestica's shares have increased by 0.38%, while the Computer and Technology sector gained 0.04% and the S&P 500 rose by 0.71% [1]. Earnings Estimates - For the full year, Zacks Consensus Estimates project earnings of $5.9 per share and revenue of $12.19 billion, representing a 52.06% increase in earnings but no change in revenue compared to the prior year [3]. - The Zacks Consensus EPS estimate has remained unchanged over the past month, indicating stability in analyst expectations [5]. Analyst Sentiment - Recent changes to analyst estimates for Celestica reflect evolving short-term business trends, with positive revisions indicating optimism regarding the company's profitability [3]. - Celestica currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook among analysts [5]. Industry Context - The Electronics - Manufacturing Services industry, which includes Celestica, is part of the Computer and Technology sector and has a Zacks Industry Rank of 53, placing it in the top 22% of over 250 industries [6]. - The Zacks Industry Rank indicates that the top 50% of rated industries outperform the bottom half by a factor of 2 to 1, highlighting the potential for growth within this sector [6].

Core Viewpoint - Sanmina Corporation (SANM) is set to report its first-quarter fiscal 2026 earnings on January 26, with consensus estimates for sales at $3.1 billion and earnings per share (EPS) at $2.15, indicating stable earnings projections for fiscal years 2026 and 2027 [1][4]. Earnings Estimates - The earnings estimates for Q1 FY26 remain unchanged at $2.15, with Q2 also at $2.36, and fiscal years 2026 and 2027 at $9.64 and $11.46 respectively, showing no revisions over the past 60 days [2]. - Sanmina has a trailing four-quarter earnings surprise average of 5.35%, having beaten estimates in each of the previous quarters, with the last quarter's surprise at 6.37% [2][3]. Recent Developments - Sanmina completed the acquisition of ZT Systems' data center infrastructure manufacturing business from AMD for up to $3 billion, enhancing its capabilities in the Cloud and AI market [6]. - The company partnered with Koncar to co-design a medium-voltage transformer, which is expected to boost revenues in power transmission and energy infrastructure manufacturing [7]. Price Performance - Over the past year, Sanmina's stock has increased by 116.2%, outperforming the Electronics - Manufacturing Services industry growth of 84.4% and its peer Jabil Inc. (47.6% increase), but lagging behind Celestica Inc. (129.8% increase) [8]. Valuation Metrics - Sanmina's shares are currently trading at a price/earnings ratio of 17.76, which is lower than the industry average of 25.74 but higher than its own historical mean of 11.46 [9]. Market Position and Demand - The company is experiencing strong demand across key markets, including communications networks, cloud and AI infrastructure, medical, and defense and aerospace sectors, benefiting from a diversified presence [11]. - Sanmina's end-to-end offerings from design to manufacturing provide a competitive edge in the market [11]. Challenges - Ongoing supply chain disruptions are causing component shortages and delivery delays, while strong competition from larger EMS companies is pressuring sales and margins [12]. - High exposure to overseas manufacturing introduces geopolitical risks, tariffs, and increased costs, alongside elevated R&D spending impacting profitability [12][13].