In the latest close session, Celestica (CLS) was up +1.69% at $343.25. The stock’s change was more than the S&P 500’s daily gain of 1.18%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 2.07%.
Prior to today’s trading, shares of the electronics manufacturing services company had lost 12.42% lagged the Computer and Technology sector’s loss of 5.33% and the S&P 500’s loss of 2.9%.
Investors will be eagerly watching for the performance of Celestica in its upcoming earnings disclosure. The company’s earnings per share (EPS) are projected to be $2.28, reflecting a 64.03% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.32 billion, indicating a 49.3% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.16 per share and revenue of $19.05 billion, which would represent changes of +67.93% and +53.74%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Celestica. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Celestica is carrying a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Celestica is currently exchanging hands at a Forward P/E ratio of 33.23. This indicates a premium in contrast to its industry’s Forward P/E of 30.69.
We can also see that CLS currently has a PEG ratio of 0.73. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. CLS’s industry had an average PEG ratio of 0.76 as of yesterday’s close.
The Electronics – Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 27, putting it in the top 12% of all 250+ industries.
