In the latest close session, Celestica (CLS) was up +1.67% at $152.66. The stock's performance was ahead of the S&P 500's daily gain of 0.52%. Meanwhile, the Dow experienced a rise of 1%, and the technology-dominated Nasdaq saw an increase of 0.52%.
The stock of electronics manufacturing services company has risen by 29.03% in the past month, leading the Computer and Technology sector's gain of 9.55% and the S&P 500's gain of 5.95%.
Market participants will be closely following the financial results of Celestica in its upcoming release. The company is forecasted to report an EPS of $1.23, showcasing a 35.16% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.65 billion, indicating a 10.95% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.05 per share and a revenue of $10.91 billion, signifying shifts of +30.15% and +13.15%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Celestica. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Celestica is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Celestica currently has a Forward P/E ratio of 29.71. This expresses a premium compared to the average Forward P/E of 21.34 of its industry.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 39, positioning it in the top 16% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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