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Celestica (CLS) Gains As Market Dips: What You Should Know
Celestica (CLS - Free Report) closed at $12 in the latest trading session, marking a +0.84% move from the prior day. This move outpaced the S&P 500's daily loss of 1.1%. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, lost 3.27%.
Heading into today, shares of the electronics manufacturing services company had lost 11.52% over the past month, lagging the Computer and Technology sector's gain of 1.45% and the S&P 500's loss of 3.02% in that time.
Wall Street will be looking for positivity from Celestica as it approaches its next earnings report date. On that day, Celestica is projected to report earnings of $0.46 per share, which would represent year-over-year growth of 17.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.8 billion, up 14.74% from the year-ago period.
CLS's full-year Zacks Consensus Estimates are calling for earnings of $1.97 per share and revenue of $7.51 billion. These results would represent year-over-year changes of +3.68% and +3.52%, respectively.
Investors might also notice recent changes to analyst estimates for Celestica. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Celestica is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Celestica's current valuation metrics, including its Forward P/E ratio of 6.04. This valuation marks a discount compared to its industry's average Forward P/E of 9.37.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.