Celestica (CLS) closed the most recent trading day at $371.86, moving -3.79% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.26%. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq decreased by 0.97%.
The stock of electronics manufacturing services company has risen by 1.45% in the past month, leading the Computer and Technology sector's gain of 0.37% and the S&P 500's gain of 0.23%.
Investors will be eagerly watching for the performance of Celestica in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.28, marking a 64.03% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $4.32 billion, up 49.3% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.16 per share and revenue of $19.06 billion, indicating changes of +67.93% and +53.82%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Celestica. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Celestica is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Celestica has a Forward P/E ratio of 38.05 right now. This signifies a premium in comparison to the average Forward P/E of 32.06 for its industry.
Also, we should mention that CLS has a PEG ratio of 0.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Manufacturing Services was holding an average PEG ratio of 0.84 at yesterday's closing price.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 115, finds itself in the top 48% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Celestica, Inc. (CLS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).