Celestica (CLS) shares soared 4.4% in the last trading session to close at $123.27. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 21.1% gain over the past four weeks.

Celestia is benefiting from the ongoing generative AI boom, thanks to the solid demand trends for AI/ML compute and networking products from hyperscale customers. By integrating next-generation networking products with silicon photonics packaging solutions, the company aims to optimize supply chain solutions to reduce time to market. 

With robust infrastructure investments, solid technology know-how and wide industry experience, Celestia is well poised for sustained growth over the years. As the company scales up production volumes and costs go down, possible uses for silicon photonics are likely to soar across several industries, including automotive, data center and high-performance computing, telecommunications, medical, aerospace and defense.

This electronics manufacturing services company is expected to post quarterly earnings of $1.04 per share in its upcoming report, which represents a year-over-year change of +36.8%. Revenues are expected to be $2.49 billion, up 16.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Celestica, the consensus EPS estimate for the quarter has been revised 1.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CLS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Celestica is a member of the Zacks Electronics - Manufacturing Services industry. One other stock in the same industry, Sanmina (SANM), finished the last trading session 0.6% lower at $83.65. SANM has returned 8.3% over the past month.

Sanmina's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.37. Compared to the company's year-ago EPS, this represents a change of +5.4%. Sanmina currently boasts a Zacks Rank of #3 (Hold).

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