In the latest trading session, Celestica (CLS) closed at $266.98, marking a -3.84% move from the previous day. This change lagged the S&P 500's 0.04% gain on the day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.36%.
Coming into today, shares of the electronics manufacturing services company had lost 1.2% in the past month. In that same time, the Computer and Technology sector lost 5.15%, while the S&P 500 lost 1.33%.
Analysts and investors alike will be keeping a close eye on the performance of Celestica in its upcoming earnings disclosure. The company is expected to report EPS of $2.07, up 72.5% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4 billion, indicating a 51.16% increase compared to the same quarter of the previous year.
CLS's full-year Zacks Consensus Estimates are calling for earnings of $8.83 per share and revenue of $17.03 billion. These results would represent year-over-year changes of +45.95% and +37.42%, respectively.
It is also important to note the recent changes to analyst estimates for Celestica. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. The Zacks Consensus EPS estimate has moved 8.58% higher within the past month. At present, Celestica boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Celestica is currently trading at a Forward P/E ratio of 31.44. This denotes a premium relative to the industry average Forward P/E of 24.01.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 7, putting it in the top 3% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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