Core Insights - Celestica Inc. (CLS) has a diverse product portfolio essential for AI applications, leveraging over 25 years of manufacturing experience to provide cloud-optimized data storage and networking solutions, resulting in healthy revenue growth [1][2] Group 1: AI Market Opportunity - The rise of AI-based applications and generative AI tools across various industries presents significant growth opportunities for Celestica, with increasing demand for its enterprise-level data communications and information processing infrastructure products [2] - Celestica is expanding its offerings through innovation and strategic collaborations to capitalize on the growing AI trend [2] Group 2: Product Innovations - The SC6100, powered by AMD's EPYC Embedded 9004 series processors, is a next-generation all-flash storage controller designed for demanding enterprise workloads [3] - The DS4100 is a 1U 800G per port top-of-rack switch designed to meet high-bandwidth demands, utilizing Broadcom's TH4-12.8T switch chipset, with expected solid demand for 400G and 800G switch products due to the rise of data-intensive AI applications [3] Group 3: Financial Performance - Celestica's stock has surged 409.7% over the past year, significantly outperforming the industry's growth of 141.6% [6][7] - The forward price-to-sales ratio for Celestica is 2.23, which is above the industry average of 0.91 [8] - The Zacks Consensus Estimate for Celestica's earnings for 2025 has increased by 9.5% over the past 60 days, indicating positive earnings revisions [9][10]

Core Viewpoint - Celestica Inc. and Plexus Corp are prominent players in the electronics manufacturing services (EMS) industry, each with distinct strengths and challenges in their respective market segments [1][2][3]. Group 1: Company Overview - Celestica is one of the largest EMS companies globally, providing a wide range of manufacturing and supply-chain solutions to various industries [1]. - Plexus specializes in electronic contract manufacturing services across multiple sectors, including Healthcare, Industrial, and Aerospace/Defense [2]. Group 2: Competitive Dynamics - Plexus is experiencing growth in the Healthcare/Life Sciences and Aerospace/Defense sectors, driven by strong customer demand and program ramps [4]. - Celestica is capitalizing on the growing AI demand, with products like the SC6100 storage controller and DS4100 switch gaining traction in enterprise applications [7]. Group 3: Financial Metrics - Plexus has a debt-to-capital ratio of 0.13, significantly lower than the industry average of 0.46, indicating strong financial health [5]. - Celestica's debt-to-capital ratio stands at 0.37, also below the industry average, with a current ratio of 1.43, reflecting good liquidity [9]. Group 4: Growth Estimates - The Zacks Consensus Estimate projects Celestica's 2025 sales and EPS to grow by 13.15% and 30.15%, respectively [12]. - For Plexus, the 2025 sales growth is estimated at 2.64%, with EPS growth at 20.98%, although the EPS estimate for 2026 is trending downward [12]. Group 5: Price Performance - Over the past year, Celestica's stock has increased by 112.4%, outperforming the industry growth of 46.7%, while Plexus has gained 15.2% [14]. - Plexus shares trade at a forward P/E ratio of 17.98, lower than Celestica's 20.69, making Plexus appear more attractive from a valuation perspective [16]. Group 6: Investment Outlook - Celestica's focus on AI and cloud technologies has led to impressive revenue and EBITDA growth, positioning it as a more favorable investment option compared to Plexus, which faces challenges [18].