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

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Celestica (CLS - Free Report) ended the recent trading session at $119.90, demonstrating a -1.12% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.01% for the day. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.32%.

Shares of the electronics manufacturing services company have appreciated by 27.39% over the course of the past month, outperforming the Computer and Technology sector's gain of 7.95% and the S&P 500's gain of 5.2%.

The upcoming earnings release of Celestica will be of great interest to investors. The company is forecasted to report an EPS of $1.23, showcasing a 35.16% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.65 billion, indicating a 10.95% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $5.05 per share and a revenue of $10.91 billion, demonstrating changes of +30.15% and +13.15%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Celestica. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Celestica is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Celestica is currently being traded at a Forward P/E ratio of 24. For comparison, its industry has an average Forward P/E of 19.3, which means Celestica is trading at a premium to the group.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 204, positioning it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.


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