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Celestica (CLS) Dips More Than Broader Market: What You Should Know

In the latest market close, Celestica (CLS) reached $55.71, with a -1.87% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.04%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 0.12%.

Coming into today, shares of the electronics manufacturing services company had gained 8.3% in the past month. In that same time, the Computer and Technology sector lost 2.27%, while the S&P 500 gained 4.15%.

Analysts and investors alike will be keeping a close eye on the performance of Celestica in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.81, reflecting a 47.27% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.25 billion, indicating a 15.78% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.32 per share and a revenue of $9.12 billion, representing changes of +36.63% and +14.59%, respectively, from the prior year.

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Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Celestica. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Celestica boasts a Zacks Rank of #2 (Buy).

Digging into valuation, Celestica currently has a Forward P/E ratio of 17.13. For comparison, its industry has an average Forward P/E of 15.82, which means Celestica is trading at a premium to the group.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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

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