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

Celestica (CLS) closed the most recent trading day at $13.15, moving +1.15% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.14%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 1.54%.

Coming into today, shares of the electronics manufacturing services company had lost 2.84% in the past month. In that same time, the Computer and Technology sector lost 4.64%, while the S&P 500 lost 4.07%.

Celestica will be looking to display strength as it nears its next earnings release. On that day, Celestica is projected to report earnings of $0.46 per share, which would represent year-over-year growth of 17.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.8 billion, up 14.74% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.97 per share and revenue of $7.51 billion. These totals would mark changes of +3.68% and +3.52%, respectively, from last year.

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Any recent changes to analyst estimates for Celestica should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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.

In terms of valuation, Celestica is currently trading at a Forward P/E ratio of 6.6. This represents a discount compared to its industry's average Forward P/E of 10.05.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 20% 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.

To follow CLS in the coming trading sessions, be sure to utilize Zacks.com.

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Celestica, Inc. (CLS) : Free Stock Analysis Report

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