Celestica (NYSE:CLS) Trading Up 8.9% - Still a Buy?

Key Points

• Celestica shares surged 8.9% to about $372 after the company reported quarterly EPS of $2.54 versus the $2.29 consensus and revenue of $4.68 billion versus $4.30 billion expected. Revenue rose 62.4% year over year, while management issued full-year 2026 EPS guidance of $11.30.
• The company is benefiting from strong demand for AI networking equipment and hyperscaler infrastructure spending. Analysts remain bullish, with a consensus “Moderate Buy” rating and a $437 average price target, including recent targets as high as $510.
• Risks include a relatively elevated valuation of roughly 39 times earnings, a high beta of 2.06, and recent insider selling. The stock could be vulnerable if AI infrastructure demand or broader technology sentiment weakens.

Celestica, Inc. (NYSE:CLS - Get Free Report) TSE: CLS shares traded up 8.9% on Tuesday . The stock traded as high as $374.59 and last traded at $372.1910. 2,755,106 shares traded hands during mid-day trading, an increase of 14% from the average daily volume of 2,415,012 shares. The stock had previously closed at $341.91.

Trending Headlines about Celestica

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Celestica was highlighted as one of five highly efficient stocks with strong growth potential, placing it among a small group selected from a universe of 7,906 companies based on operating and financial ratios. Buy These 5 Top-Ranked Efficient Stocks With Strong Growth Potential
• Positive Sentiment: The company continues to benefit from demand for AI networking equipment, hyperscaler capital spending and strategic partnerships. Rising earnings estimates are supporting the view that Celestica can participate in the broader AI infrastructure buildout. CLS Stock Surges 20.1% in Six Months: Is There More Upside Ahead?
• Positive Sentiment: Recent quarterly results were considerably stronger than expected. EPS reached $2.54 versus the $2.29 consensus, revenue was $4.68 billion versus $4.30 billion expected, and sales increased 62.4% year over year. Management also provided third-quarter 2026 EPS guidance of $2.88 to $3.08 and full-year EPS guidance of $11.30.
• Positive Sentiment: Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $437. Stifel Nicolaus set a $500 target, while JPMorgan raised its target to $485. Celestica analyst coverage
• Neutral Sentiment: A recent analysis noted that Celestica’s higher 2026 outlook comes after an approximately 18% decline over 90 days, leaving investors to reassess whether the stock is below fair value after its longer-term gains. Celestica Lifted Guidance, Is the Pullback Leaving It Below Fair Value?
• Negative Sentiment: CEO Robert Mionis sold 9,543 shares worth about $3.51 million, reducing his direct holdings by 15.8%. CFO Mandeep Chawla also sold 883 shares valued at approximately $324,000. The sales could temper sentiment, although both executives retain substantial positions. Celestica Insider Selling
• Negative Sentiment: Valuation remains a risk: Celestica trades at roughly 36–39 times earnings, while its high beta makes the shares vulnerable if AI infrastructure spending or broader technology sentiment weakens.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on CLS shares. Susquehanna upped their price target on shares of Celestica from $460.00 to $510.00 and gave the company a "positive" rating in a research note on Wednesday, April 29th. BMO Capital Markets lifted their price objective on shares of Celestica from $370.00 to $450.00 and gave the stock an "outperform" rating in a research note on Friday, April 24th. Royal Bank Of Canada boosted their target price on shares of Celestica from $440.00 to $450.00 and gave the stock an "outperform" rating in a report on Wednesday, July 29th. Bank of America restated a "buy" rating on shares of Celestica in a research report on Wednesday, July 29th. Finally, Wolfe Research increased their price target on shares of Celestica from $425.00 to $475.00 and gave the company an "outperform" rating in a report on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, Celestica presently has a consensus rating of "Moderate Buy" and a consensus price target of $437.00.

Celestica Stock Up 8.9%

The company has a current ratio of 1.23, a quick ratio of 0.68 and a debt-to-equity ratio of 0.32. The company has a 50-day simple moving average of $360.20 and a 200 day simple moving average of $333.77. The company has a market cap of $42.79 billion, a P/E ratio of 38.69 and a beta of 2.06.

Celestica (NYSE:CLS - Get Free Report) TSE: CLS last released its earnings results on Monday, July 27th. The technology company reported $2.54 earnings per share for the quarter, topping the consensus estimate of $2.29 by $0.25. The business had revenue of $4.68 billion during the quarter, compared to the consensus estimate of $4.30 billion. Celestica had a return on equity of 39.96% and a net margin of 7.16%.The business's revenue for the quarter was up 62.4% compared to the same quarter last year. During the same period last year, the company earned $1.39 earnings per share. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS. On average, equities analysts anticipate that Celestica, Inc. will post 9.97 EPS for the current year.

Insider Activity at Celestica

In related news, CFO Mandeep Chawla sold 883 shares of Celestica stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $366.52, for a total transaction of $323,637.16. Following the completion of the sale, the chief financial officer owned 81,561 shares in the company, valued at $29,893,737.72. This trade represents a 1.07% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Michael Max Wilson sold 4,168 shares of the business's stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $333.31, for a total transaction of $1,389,236.08. Following the completion of the sale, the director directly owned 24,718 shares of the company's stock, valued at approximately $8,238,756.58. This trade represents a 14.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 171,594 shares of company stock worth $67,021,079 in the last 90 days. 1.10% of the stock is owned by corporate insiders.

Institutional Trading of Celestica

Large investors have recently modified their holdings of the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in Celestica during the 4th quarter valued at $28,000. Swiss RE Ltd. bought a new position in shares of Celestica during the 4th quarter worth $29,000. Cullen Frost Bankers Inc. bought a new position in shares of Celestica during the 4th quarter worth $30,000. Sittner & Nelson LLC purchased a new position in shares of Celestica during the fourth quarter valued at $31,000. Finally, Ascentis Independent Advisors purchased a new position in shares of Celestica during the first quarter valued at $29,000. Hedge funds and other institutional investors own 67.38% of the company's stock.

Celestica Company Profile

Celestica Inc is a multinational electronics manufacturing services (EMS) company that provides design, engineering, manufacturing and supply chain solutions to original equipment manufacturers across a range of industries. Headquartered in Toronto, Ontario, Canada, Celestica works with customers to develop and produce complex electronic and electro-mechanical products, integrating activities from product design and prototyping through high-volume assembly, testing and final system integration.

The company's service offering typically includes product engineering and design support, printed circuit board assembly, box-build and systems assembly, automated test and inspection, aftermarket repair and refurbishment, and end-to-end supply chain and logistics management.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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