The most recent trading session ended with Celestica (CLS) standing at $107.05, reflecting a -0.76% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 1.59% for the day. At the same time, the Dow added 1.39%, and the tech-heavy Nasdaq gained 1.63%.
Coming into today, shares of the electronics manufacturing services company had lost 5.5% in the past month. In that same time, the Computer and Technology sector lost 3.43%, while the S&P 500 lost 2.42%.
The upcoming earnings release of Celestica will be of great interest to investors. On that day, Celestica is projected to report earnings of $1.10 per share, which would represent year-over-year growth of 27.91%. Simultaneously, our latest consensus estimate expects the revenue to be $2.55 billion, showing a 15.34% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.78 per share and a revenue of $10.77 billion, representing changes of +23.2% and +11.69%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Celestica. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Within the past 30 days, our consensus EPS projection has moved 9.04% higher. Currently, Celestica is carrying a Zacks Rank of #1 (Strong Buy).
Investors should also note Celestica's current valuation metrics, including its Forward P/E ratio of 22.55. This valuation marks a premium compared to its industry's average Forward P/E of 18.31.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 3, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
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