The stock of Celestica, Inc. (NYSE: CLS) has decreased by -1.97 when compared to last closing price of 57.82.Despite this, the company has seen a loss of -10.26% in its stock price over the last five trading days. seekingalpha.com reported 2024-10-20 that Celestica’s share price surged 40% since my first call, driven by strong AI-related revenue and EBITDA growth. CLS is set to report Q3 earnings on October 23. AI tailwinds and robust data center investments by major tech firms and asset managers bolster Celestica’s growth prospects. Readers should keep in mind that buying before earnings is risky due to unpredictable market reactions, as seen with previous earnings-induced stock pullbacks.
Is It Worth Investing in Celestica, Inc. (NYSE: CLS) Right Now?
Celestica, Inc. (NYSE: CLS) has a price-to-earnings ratio of 18.51x that is above its average ratio. Additionally, the 36-month beta value for CLS is 2.30. There are mixed opinions on the stock, with 2 analysts rating it as a “buy,” 1 rating it as “overweight,” 9 rating it as “hold,” and 0 rating it as “sell.”
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The public float for CLS is 118.33M and currently, short sellers hold a 2.65% ratio of that float. The average trading volume of CLS on October 22, 2024 was 2.20M shares.
CLS’s Market Performance
CLS stock saw an increase of -10.26% in the past week, with a monthly gain of 16.31% and a quarterly increase of -2.07%. The volatility ratio for the week is 4.59%, and the volatility levels for the last 30 days are 3.68% for Celestica, Inc. (CLS). The simple moving average for the past 20 days is 2.30% for CLS’s stock, with a 18.46% simple moving average for the past 200 days.
Analysts’ Opinion of CLS
Many brokerage firms have already submitted their reports for CLS stocks, with Stifel repeating the rating for CLS by listing it as a “Buy.” The predicted price for CLS in the upcoming period, according to Stifel is $58 based on the research report published on September 09, 2024 of the current year 2024.
Fox Advisors, on the other hand, stated in their research note that they expect to see CLS reach a price target of $60. The rating they have provided for CLS stocks is “Overweight” according to the report published on May 15th, 2024.
CLS Trading at 9.72% from the 50-Day Moving Average
After a stumble in the market that brought CLS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -12.20% of loss for the given period.
Volatility was left at 3.68%, however, over the last 30 days, the volatility rate increased by 4.59%, as shares surge +14.21% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +18.63% upper at present.
During the last 5 trading sessions, CLS fell by -10.26%, which changed the moving average for the period of 200-days by +103.01% in comparison to the 20-day moving average, which settled at $55.40. In addition, Celestica, Inc. saw 93.58% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for CLS
Current profitability levels for the company are sitting at:
- 0.06 for the present operating margin
- 0.1 for the gross margin
The net margin for Celestica, Inc. stands at 0.04. The total capital return value is set at 0.18. Equity return is now at value 20.99, with 6.43 for asset returns.
Based on Celestica, Inc. (CLS), the company’s capital structure generated 0.29 points at debt to capital in total, while cash flow to debt ratio is standing at 0.59. The debt to equity ratio resting at 0.41. The interest coverage ratio of the stock is 7.3.
Currently, EBITDA for the company is 569.05 million with net debt to EBITDA at 0.74. When we switch over and look at the enterprise to sales, we see a ratio of 0.82. The receivables turnover for the company is 4.63for trailing twelve months and the total asset turnover is 1.5. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.47.
Conclusion
In conclusion, Celestica, Inc. (CLS) has seen mixed performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
