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Celestica (CLS) Stock Declines While Market Improves: Some Information for Investors

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Celestica (CLS - Free Report) closed at $293.24 in the latest trading session, marking a -3.03% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 1.23%, and the Nasdaq, a tech-heavy index, added 0.69%.

Coming into today, shares of the electronics manufacturing services company had lost 6.98% in the past month. In that same time, the Computer and Technology sector lost 0.21%, while the S&P 500 gained 0.55%.

The investment community will be closely monitoring the performance of Celestica in its forthcoming earnings report. The company's upcoming EPS is projected at $1.73, signifying a 55.86% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $3.45 billion, up 35.46% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.9 per share and revenue of $12.18 billion, indicating changes of +52.06% and 0%, respectively, compared to the previous 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% lower. At present, Celestica boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Celestica is currently being traded at a Forward P/E ratio of 36.88. Its industry sports an average Forward P/E of 19.69, 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 group has a Zacks Industry Rank of 6, putting it in the top 3% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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