CelesticaNYSE: CLS

Zacks.com users have recently been watching Celestica (CLS) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

Celestica (CLS) is well positioned to outperform the market, as it exhibits above-average growth in financials.

Riding on a robust earnings surprise history and favorable Zacks Rank, CLS appears primed for further stock price appreciation.

CLS remains well positioned to report robust top/ bottom-lines, as observed in its supply agreements with numerous hyperscalers and AI-related companies. These developments have also contributed to its double beat FQ3'24 performance, raised FY2024 guidance, and exemplary FY2025 guidance. CLS' numbers are well supported by the robust AI market spending trends, as reported by TSM and numerous hyperscalers in the FQ3'24 earnings call.

Celestica's Q3 2024 report shows ~$2.5 billion in revenues - that was a 22% growth year over year, with the CCS segment experiencing a stunning 42% YoY expansion. We see Celestica continuing to raise internal expectations - the market is listening and following suit by also significantly raising revenue/EPS estimates en masse. Celestica still seems too undervalued to ignore. According to my calculations, the fair value of Celestica's stock today is around $101 - that's almost 48% more than the stock's price.

Celestica (CLS) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

Does Celestica (CLS) have what it takes to be a top stock pick for momentum investors? Let's find out.

Celestica (CLS) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?