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Celestica (CLS) Stock Sinks As Market Gains: Here's Why

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The latest trading session saw Celestica (CLS - Free Report) ending at $46.02, denoting a -0.09% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.74%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq added 1.68%.

The the stock of electronics manufacturing services company has risen by 2.29% in the past month, leading the Computer and Technology sector's gain of 0.95% and the S&P 500's gain of 0.8%.

Market participants will be closely following the financial results of Celestica in its upcoming release. The company plans to announce its earnings on April 24, 2024. The company's earnings per share (EPS) are projected to be $0.72, reflecting a 53.19% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.1 billion, indicating a 14.25% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $2.91 per share and a revenue of $8.74 billion, demonstrating changes of +19.75% and +9.77%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Celestica. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Celestica presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Celestica is currently being traded at a Forward P/E ratio of 15.83. This denotes a discount relative to the industry's average Forward P/E of 16.02.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 196, putting it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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