Celestica Inc. (CLS), an electronics manufacturing services company, saw its stock soar by 8.62% intraday on Tuesday, propelled by a notable improvement in the company's earnings outlook and rising analyst confidence.
The surge in Celestica's stock was fueled by a series of positive earnings estimate revisions from analysts, reflecting growing optimism about the company's earnings prospects. According to Zacks Investment Research, the consensus earnings estimate for the current quarter has risen by 14.12%, while the full-year estimate has increased by 7.81%.
This upward trend in earnings estimate revisions, coupled with Celestica's Zacks Rank #1 (Strong Buy) rating, suggests that the stock could continue its momentum in the near term. The Zacks Rank has a strong track record of outperformance, with stocks rated #1 (Strong Buy) historically generating an average annual return of +25% since 2008.
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