Celestica (CLS) Stock Declines While Market Improves: Some Information for Investors

Celestica (CLS) closed the most recent trading day at $158.83, moving -1.29% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.28% for the day. Meanwhile, the Dow experienced a rise of 0.43%, and the technology-dominated Nasdaq saw an increase of 0.09%.

Heading into today, shares of the electronics manufacturing services company had gained 26.01% over the past month, outpacing the Computer and Technology sector's gain of 6.2% and the S&P 500's gain of 4.37%.

The investment community will be closely monitoring the performance of Celestica in its forthcoming earnings report. The company is scheduled to release its earnings on July 28, 2025. The company's upcoming EPS is projected at $1.23, signifying a 35.16% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.65 billion, reflecting a 10.95% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.05 per share and revenue of $10.91 billion, which would represent changes of +30.15% and +13.15%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Celestica. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Celestica boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Celestica is currently exchanging hands at a Forward P/E ratio of 31.84. Its industry sports an average Forward P/E of 21.64, so one might conclude that Celestica is trading at a premium comparatively.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 45, this industry ranks in the top 19% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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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This article originally published on Zacks Investment Research (zacks.com).

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