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Summary

Celestica (CLS) is a leading electronics manufacturing services company with strong technical momentum and a recent 46.77% gain since a Trend Seeker “Buy” signal.

CLS has achieved 336.59% annual growth, 11 new highs in the past month, and maintains robust technical indicators, including a 100% “Buy” opinion from Barchart.

Fundamentals show projected revenue and earnings growth exceeding 20% and 28% next year, with strong analyst and investor sentiment supporting CLS.

Despite a consensus “Strong Buy” rating, some caution is advised due to high valuation; tight stop losses are recommended for new buyers.

Today’s Featured Stock

Valued at $34.12 billion Celestica CLS is one of the largest electronics manufacturing services company in the world, serving the computer, and communications sectors. The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers. Celestica's extensive depth and breadth of offerings supports a wide variety of customer requirements from low volume, high complexity custom products to high volume commodity products. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. CLS checks those boxes. Since the Trend Seeker signaled a new “Buy” on Aug. 27, the stock has gained 46.77%.

CLS (Barchart)

Barchart Technical Indicators for Celestica

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Celestica hit an All Time high of $300.75 in intraday trading on Oct. 24.

• CLS has a Weighted Alpha of +337.08.
• Celestica an 100% “Buy” opinion from Barchart.
• The stock gained 336.59% over the past year.
• CLS has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $296.62 with a 50-day moving average of $238.31.
• Celestica has made 11 new highs and gained 23.36% in the last month.
• Relative Strength Index (RSI) is at 67.09.
• There’s a technical support level around $292.16.

Don’t Forget the Fundamentals

• $34.12 billion market capitalization.
• 66.84x trailing Price/Earnings
• Revenue is projected to grow 21.42% this year and another 20.73% next year.
• Earnings are estimated to increase 44.74% this year and an additional 28.60% next year.

Analyst and Investor Sentiment on Celestica

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are high on Celestica and so are individual investors.

• The Wall Street analysts tracked by Barchart have issued 12 “Strong Buys”, 2 " Moderate Buys" and 3 “Hold” opinion on the stock with price targets between $208 and $340.
• Value Line rates the stock “Highest.”
• CFRA’s MarketScope Advisor rates it a Hold.”
• Morningstar thinks the stock is 46% overvalued.
• 479 investors following the stock on Motley Fool think the stock will beat the market while 73 think it won’t.
• 49,030 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy” and comments:" CLS's strong growth, profitability, and stellar momentum, along with positive earnings revisions, make it a compelling investment opportunity. Despite its high valuation compared to peers, the stock's overall performance supports a Strong Buy rating. "

The Bottom Line on Celestica

Although Wall Street analysts have a “Strong Buy” opinion on the stock,Morningstar think the stock is very overvalued. If you buy at this level, please keep your stop losses tight.

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