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Celestica (CLS) Outpaces Stock Market Gains: What You Should Know

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Celestica (CLS - Free Report) closed the latest trading day at $50.35, indicating a +1.45% change from the previous session's end. This change outpaced the S&P 500's 0.01% gain on the day. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.08%.

The electronics manufacturing services company's stock has climbed by 6.85% in the past month, exceeding the Computer and Technology sector's gain of 1.03% and the S&P 500's gain of 1.21%.

Investors will be eagerly watching for the performance of Celestica in its upcoming earnings disclosure. The company is expected to report EPS of $0.92, up 41.54% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.41 billion, up 18.01% from the prior-year quarter.

CLS's full-year Zacks Consensus Estimates are calling for earnings of $3.65 per share and revenue of $9.47 billion. These results would represent year-over-year changes of +50.21% and +18.93%, respectively.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Celestica is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Celestica is currently being traded at a Forward P/E ratio of 13.6. This denotes a discount relative to the industry's average Forward P/E of 13.7.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 185, this industry ranks in the bottom 27% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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