Celestica Inc. (CLS)

In the closing of the recent trading day, Celestica (CLS) stood at $237.79, denoting a +1.04% move from the preceding trading day.

Recently, Zacks.com users have been paying close attention to Celestica (CLS). This makes it worthwhile to examine what the stock has in store.

Market opportunities in the Automation in Medical Devices Manufacturing Market include leveraging automation to enhance precision and compliance, driven by

Celestica trades at a high 45x forward earnings multiple, driven by strong AI hardware demand and rapid EPS growth projections. The CCS segment is the main growth engine, now representing 68% of revenue and 79% of earnings, with expanding margins lifting overall profitability. Management guidance for 2025 is conservative, but CLS has a history of outperforming estimates, supported by buybacks and strategic customer relationships.

Celestica (CLS) closed at $251.69 in the latest trading session, marking a +2.16% move from the prior day.

Does Celestica (CLS) have what it takes to be a top stock pick for momentum investors? Let's find out.

Revenue expanded from $5.6B in 2021 to $9.6B in 2024, with 2025 guidance raised to $11.55B. Q2 2025 revenue hit $2.89B, up 21% year-over-year, while adjusted EPS rose 54% to $1.39. Connectivity and Cloud Solutions grew 28% to $2.07B, with Hardware Platform Solutions nearly doubling revenue to $1.2B.

In the closing of the recent trading day, Celestica (CLS) stood at $257.64, denoting a +1.12% move from the preceding trading day.

CLS' AI-driven storage and networking solutions fuel strong revenue growth and position it to capture rising demand from data-intensive applications.

Zacks.com users have recently been watching Celestica (CLS) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

There is great reason to invest in artificial intelligence (AI) stocks. The global AI market will soar from $189 billion in 2023 to $4.8 trillion by 2033 -- a 25-fold increase in a decade -- according to an estimate by the United Nations Conference on Trade and Development.

Celestica Inc. is well-positioned in the AI infrastructure sector, with strong growth in its Connectivity and Cloud Solutions division. CLS consistently beats analyst estimates, posting 21% revenue growth and margin expansion in Q2/25, signaling operational strength and cost efficiency. Despite some balance sheet concerns, CLS remains undervalued compared to peers, with further upside potential as AI spending accelerates.

I maintain a Buy rating on Celestica Inc. Celestica's strong 2Q fueled by surging demand for 800G data center hardware. Revenue jumped 21% and adjusted EPS by 54% y/y. CLS is powering the 800G transition for some of the largest hyperscalers. And demand has been strong.

Celestica (CLS) closed the most recent trading day at $247.66, moving 2.65% from the previous trading session.

The S&P 500 technology sector is heading into Q4 with solid momentum—the second-highest performing sector year-to-date—and is up about 50% since the market bottomed on April 8. The tech sector offers huge earnings upside potential due to major trends such as booming AI-fueled capital spending, adoption of smart technologies, and expanding connectivity and satellite communications. Tech stocks have also benefitted from rising interest rate cut expectations, cooling inflation, steady economic growth, and solid Q2 earnings results.

In the closing of the recent trading day, Celestica (CLS) stood at $246.42, denoting a -2.61% move from the preceding trading day.