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Can Celestica's Expertise in Powering 5G Drive Future Growth?

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Key Takeaways

  • Celestica supports telecom firms with design, PCBA and system integration for reliable 5G equipment.
  • Celestica works with Cisco, Ericsson and Nokia to develop and manufacture advanced telecom infrastructure.
  • CLS also builds high-speed 800G and 1.6T networking platforms as it prepares for future 6G technologies.

Celestica Inc. (CLS - Free Report) has become a key partner for network equipment manufacturers as the telecom industry accelerates 5G deployment. Its expertise in electronics manufacturing services (EMS) and supply chain management helps telecom providers deliver reliable and scalable network infrastructure.

Celestica provides accurate design, manufacturing and deployment of 5G equipment using capabilities in printed circuit board assembly (PCBA), system integration and engineering collaboration. By working with clients during development, the company helps improve performance and reduce product launch time to remain competitive in the telecom sector. It is also preparing for future technologies like 6G by developing high-speed networking platforms such as 800G and 1.6T systems.

Beyond manufacturing, Celestica strengthens 5G rollouts through global supply chain services, helping telecom operators source components, manage logistics and meet growing demand efficiently while adopting new technologies to stay ahead. The company collaborates with major telecom equipment providers like Cisco Systems, Ericsson and Nokia to support the development and manufacturing of advanced telecom infrastructure.

As 5G adoption increases and next-generation networks develop, Celestica’s engineering and manufacturing capabilities will likely help the telecom industry build faster, smarter and more connected networks for the digital era.

How Are Competitors Advancing in the Telecom Sector?

Celestica faces competition from Jabil, Inc. (JBL - Free Report) and Sanmina Corporation (SANM - Free Report) . Jabil is expanding in the telecom industry by developing high-speed connectivity solutions, such as 1.6T optical transceivers for next-generation networks and data centers. The company also manufactures 4G and 5G telecom equipment for partners like Ericsson to support global network deployments.

Sanmina is strengthening its presence in the telecom industry by providing manufacturing and design services for 5G and optical networking equipment. The company also supports telecom providers with solutions for base stations, networking hardware and data-center infrastructure. It partners with companies like Nokia to produce telecom and broadband network equipment.

Celestica's Price Performance, Valuation & Estimates

Celestica shares have soared 200.5% over the past year compared with the industry’s growth of 114.1%.

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From a valuation standpoint, Celestica trades at a forward price-to-earnings ratio of 28.18, up from the industry average of 21.67.

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Image Source: Zacks Investment Research

Earnings estimates for 2026 have increased 7.55% to $8.83 over the past 60 days, while the same for 2027 has increased 7.05% to $12.61.

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Image Source: Zacks Investment Research

Celestica currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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