Celestica (CLS) closed at $273.61 in the latest trading session, marking a -9.47% move from the prior day. The stock’s performance was behind the S&P 500’s daily loss of 1.74%. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 2.38%.
Prior to today’s trading, shares of the electronics manufacturing services company had gained 2.8% outpaced the Computer and Technology sector’s loss of 5.77% and the S&P 500’s loss of 4.99%.
Market participants will be closely following the financial results of Celestica in its upcoming release. The company is predicted to post an EPS of $2.07, indicating a 72.5% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4 billion, reflecting a 51.16% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.83 per share and revenue of $17.03 billion, which would represent changes of +45.95% and +37.42%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Celestica. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Celestica boasts a Zacks Rank of #2 (Buy).
Digging into valuation, Celestica currently has a Forward P/E ratio of 34.23. For comparison, its industry has an average Forward P/E of 25.58, which means Celestica is trading at a premium to the group.
The Electronics – Manufacturing Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 6, positioning it in the top 3% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.