Back to top

Image: Bigstock

Celestica (CLS) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Celestica (CLS - Free Report) closed the most recent trading day at $12.37, moving -0.56% from the previous trading session. This move lagged the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 1.35%.

Prior to today's trading, shares of the electronics manufacturing services company had lost 5.11% over the past month. This has lagged the Computer and Technology sector's gain of 6.41% and the S&P 500's loss of 1.48% in that time.

Celestica will be looking to display strength as it nears its next earnings release. On that day, Celestica is projected to report earnings of $0.46 per share, which would represent year-over-year growth of 17.95%. Our most recent consensus estimate is calling for quarterly revenue of $1.8 billion, up 14.74% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.97 per share and revenue of $7.51 billion, which would represent changes of +3.68% and +3.52%, respectively, from the prior year.

Investors might also notice 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 company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Celestica is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Celestica is currently trading at a Forward P/E ratio of 6.31. For comparison, its industry has an average Forward P/E of 9.94, which means Celestica is trading at a discount to the group.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Celestica, Inc. (CLS) - free report >>

Published in