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Celestica (CLS) Gains As Market Dips: What You Should Know
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Celestica (CLS - Free Report) closed at $10.80 in the latest trading session, marking a +0.28% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.19%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Coming into today, shares of the electronics manufacturing services company had lost 2% in the past month. In that same time, the Computer and Technology sector gained 8.91%, while the S&P 500 gained 4.7%.
Investors will be hoping for strength from Celestica as it approaches its next earnings release. In that report, analysts expect Celestica to post earnings of $0.53 per share. This would mark year-over-year growth of 20.45%. Meanwhile, our latest consensus estimate is calling for revenue of $1.96 billion, up 29.44% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.86 per share and revenue of $7.16 billion, which would represent changes of +43.08% and +27.15%, respectively, from the prior year.
Any recent changes to analyst estimates for Celestica should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate remained stagnant. Celestica is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Celestica currently has a Forward P/E ratio of 5.79. Its industry sports an average Forward P/E of 11.43, so we one might conclude that Celestica is trading at a discount comparatively.
We can also see that CLS currently has a PEG ratio of 0.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Manufacturing Services was holding an average PEG ratio of 0.72 at yesterday's closing price.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 3, putting it in the top 2% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Celestica (CLS) Gains As Market Dips: What You Should Know
Celestica (CLS - Free Report) closed at $10.80 in the latest trading session, marking a +0.28% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.19%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Coming into today, shares of the electronics manufacturing services company had lost 2% in the past month. In that same time, the Computer and Technology sector gained 8.91%, while the S&P 500 gained 4.7%.
Investors will be hoping for strength from Celestica as it approaches its next earnings release. In that report, analysts expect Celestica to post earnings of $0.53 per share. This would mark year-over-year growth of 20.45%. Meanwhile, our latest consensus estimate is calling for revenue of $1.96 billion, up 29.44% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.86 per share and revenue of $7.16 billion, which would represent changes of +43.08% and +27.15%, respectively, from the prior year.
Any recent changes to analyst estimates for Celestica should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate remained stagnant. Celestica is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Celestica currently has a Forward P/E ratio of 5.79. Its industry sports an average Forward P/E of 11.43, so we one might conclude that Celestica is trading at a discount comparatively.
We can also see that CLS currently has a PEG ratio of 0.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Manufacturing Services was holding an average PEG ratio of 0.72 at yesterday's closing price.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 3, putting it in the top 2% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.