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

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Celestica (CLS - Free Report) ended the recent trading session at $91.01, demonstrating a +1.16% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.54%. On the other hand, the Dow registered a loss of 0.53%, and the technology-centric Nasdaq decreased by 0.66%.

Heading into today, shares of the electronics manufacturing services company had gained 9.65% over the past month, outpacing the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 1.5% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Celestica in its upcoming earnings disclosure. On that day, Celestica is projected to report earnings of $1.04 per share, which would represent year-over-year growth of 36.84%. Meanwhile, our latest consensus estimate is calling for revenue of $2.5 billion, up 16.65% from the prior-year quarter.

CLS's full-year Zacks Consensus Estimates are calling for earnings of $3.85 per share and revenue of $9.6 billion. These results would represent year-over-year changes of +58.44% and +20.55%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Celestica. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Celestica presently features a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Celestica currently has a Forward P/E ratio of 23.4. Its industry sports an average Forward P/E of 19.41, so one might conclude that Celestica is trading at a premium comparatively.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 12, which puts it in the top 5% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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