In the latest close session, Celestica (CLS) was down 1.35% at $299.14. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 0.24%.
Shares of the electronics manufacturing services company have depreciated by 4.76% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.2%, and the S&P 500's gain of 0.94%.
Analysts and investors alike will be keeping a close eye on the performance of Celestica in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.73, showcasing a 55.86% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.45 billion, up 35.46% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.9 per share and a revenue of $12.18 billion, demonstrating changes of +52.06% and +26.31%, respectively, from the preceding year.
Any recent changes to analyst estimates for Celestica should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% lower. At present, Celestica boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Celestica has a Forward P/E ratio of 51.39 right now. This expresses a premium compared to the average Forward P/E of 20.27 of its industry.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 17, this industry ranks in the top 7% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Celestica, Inc. (CLS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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