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Celestica (CLS) Gains As Market Dips: What You Should Know
Celestica (CLS - Free Report) closed the most recent trading day at $11.27, moving +1.26% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.25%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 5.91%.
Prior to today's trading, shares of the electronics manufacturing services company had lost 0.98% over the past month. This has was narrower than the Computer and Technology sector's loss of 3.63% and the S&P 500's loss of 2.59% in that time.
Celestica will be looking to display strength as it nears 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 recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Celestica is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Celestica currently has a Forward P/E ratio of 5.98. This represents a discount compared to its industry's average Forward P/E of 10.28.
We can also see that CLS currently has a PEG ratio of 0.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CLS's industry had an average PEG ratio of 0.69 as of yesterday's close.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.