Celestica Inc. (CLS) Down 9.0% — Is It Worth Holding Any Longer?
Celestica Inc. (CLS) spent the latest session under heavy pressure, with the stock sliding 9.02% and losing $27.93 to close at $281.83 on the NYSE. That marks a sharp retreat from the prior close of $309.76, extending a pattern of recent weakness. Trading activity was somewhat subdued relative to normal levels, with about 2.49 million shares changing hands versus an average of roughly 2.79 million over the past 90 days, suggesting the stock is losing ground without an accompanying surge in participation. From a price standpoint, shares are firmly in retreat and appear to be giving back a notable portion of earlier gains.
The latest decline also pushes Celestica further away from its 52-week high of $363.40 set on Nov. 5, 2025, leaving the stock now trading more than 22% below that peak. This distance from the high underscores the extent to which the share price has come under pressure and highlights the stock’s recent erosion in momentum. Within the broader technology hardware and communications equipment space, several large-cap peers such as Apple (AAPL), Cisco Systems (CSCO), and Amphenol (APH) have generally shown more resilience in recent sessions, reinforcing Celestica’s status as a relative underperformer. Taken together, the combination of a steep single-day drop, trading volume running below its longer-term average, and a widening gap from the 52-week high paints a picture of a stock currently facing meaningful headwinds in the market.
Why Celestica Inc. Price is Moving Lower
Celestica Inc. is coming under pressure as investors reassess recent gains following a sharp run-up into mid-January. After touching an intraday high near $320 on Jan. 20, the stock has slipped back toward the low $300s, signaling profit-taking and waning momentum. The recent pullback follows a 21.6% rise over the prior three months highlighted earlier in January, suggesting that a portion of the current weakness is driven by valuation fatigue and traders locking in short-term gains rather than fresh positive catalysts. The lack of new company-specific announcements or incremental bullish drivers in the past week leaves the stock exposed to mean reversion, with short-term sentiment turning cautious after a rapid advance.
Fundamentally, Celestica’s strong 27.79% revenue growth and positive earnings per share of $6.03 have already been largely discounted by the market, raising the bar for further upside. A profit margin of 6.20% is respectable for an electronics manufacturing and hardware-oriented business, but it is still thin compared with higher-margin technology leaders, which can lead investors to question how much more they are willing to pay for each dollar of earnings at these levels. Meanwhile, sector peers such as Apple, Cisco, and Amphenol offer exposure to the broader Technology Hardware and Equipment space, giving portfolio managers alternatives that may appear less extended after Celestica’s rapid climb. This combination of stretched expectations, modest margin profile, and the absence of fresh growth catalysts is contributing to the current weakness in Celestica’s share price and warrants a more cautious stance in the near term.
What is the Celestica Inc. Rating - Should I Sell?
Weiss Ratings assigns CLS a B rating. Current recommendation is Buy. That sounds encouraging at first glance, but investors should be cautious about assuming a smooth path from here. A B rating signals a favorable overall risk/reward profile, yet it does not eliminate the potential for sharp setbacks, especially after a strong run-up and amid rich expectations.
Celestica’s Excellent Growth Index and Excellent Efficiency Index show the company has been executing well operationally, with revenue growth of 27.79% and a return on equity of 36.38%. The Excellent Solvency Index and Excellent Total Return Index further indicate that, historically, the business and the stock have rewarded investors who accepted the risks. However, these positives have come with a cost: a forward P/E near 51.41 leaves very little room for disappointment. At that valuation, even a modest slowdown in growth or a margin miss could trigger outsized downside.
The Fair Volatility Index is another warning sign. It indicates that CLS has already experienced meaningful price swings relative to its fundamentals. A seemingly solid profit margin of 6.20% does not offer much cushion if market sentiment turns or if the broader Information Technology sector comes under pressure. Compared with sector peers like Cisco Systems, Inc. (CSCO, B) and Amphenol Corporation (APH, B), Celestica is carrying higher expectations on a more aggressive multiple, which amplifies risk.
In short, the B (Buy) rating acknowledges strong historical performance but does not guarantee future protection. Investors should treat CLS as a higher-risk holding where downside from valuation and volatility is very real, despite its current operational strengths.
About Celestica Inc.
Celestica Inc. (CLS) is a global electronics manufacturing services (EMS) and technology solutions provider operating within the Information Technology sector, with a focus on Technology Hardware and Equipment. The company positions itself primarily as a contract manufacturer, designing, assembling and testing complex electronic products for original equipment manufacturers across end markets such as communications, enterprise computing, industrial, aerospace and defense, and healthcare technology. Its business is heavily oriented around high-volume, high-mix production, with a concentration in outsourced manufacturing rather than proprietary product development.
Celestica’s offerings span design and engineering services, supply chain management, component sourcing, systems integration and after-market services, but these capabilities largely support customers’ brands rather than building Celestica’s own. The company’s competitive positioning relies on cost-efficient manufacturing, global production footprint and logistics support, which leaves it exposed to intense price pressure typical of the EMS and hardware manufacturing space. Celestica competes against large, diversified contract manufacturers and regional specialists, limiting its bargaining power and differentiation. In many engagements, its role is that of a lower-margin provider responsible for execution and operational efficiency, rather than a strategic technology leader setting product direction. This dependence on customer roadmaps and outsourcing trends can constrain Celestica’s ability to control its own growth trajectory within the technology hardware and equipment industry.
Investor Outlook
Despite its B (Buy) Weiss Rating, investors may want to exercise caution with Celestica Inc. (CLS), closely monitoring how execution risks, sector cyclicality and any signs of margin pressure could affect its overall risk/reward profile. Watch for shifts that might threaten its Buy status, including changes in volatility or balance sheet strength that could weigh on future returns. See full rankings of all B-rated Information Technology stocks inside the Weiss Stock Screener.
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