Celestica Inc. (CLS) Up 4.6% — Should I Upgrade This From Watchlist to Buy?

Key Points


  • CLS rose 4.6% to $322.66 from $308.41 previous trading day
  • Weiss Ratings assigns B (Buy)
  • Stock trades 11% below its 52-week high of $363.40

Celestica Inc. (CLS) advanced sharply in today’s session, extending its recent uptrend with a decisive move higher. The stock finished at $322.66 versus a previous close of $308.41, gaining 4.62% on the day and adding $14.25 in market value per share. The move came on below-average activity, a sign that buyers were able to push price higher without heavy turnover. From a positioning standpoint, CLS remains 11% below its 52-week high of $363.40, leaving room for a potential retest if momentum persists.

The upside action reflects firm investor confidence, with buyers stepping in steadily throughout the session. Price strength on lighter volume can indicate a lack of selling pressure, underscoring constructive sentiment and a healthy trend. The close near session highs further points to sustained demand and bullish follow-through in the near term.

Technically, this jump adds to a pattern of higher highs and higher lows that has defined CLS in recent months, consistent with strong relative strength versus broad market benchmarks. The stock’s ability to rally while remaining below its prior peak also suggests a favorable reward-to-risk setup for trend followers watching for continuation. With the stock still off its high-water mark, today’s performance keeps the trajectory intact and highlights ongoing enthusiasm around the company’s growth outlook in technology hardware and AI infrastructure.

Overall, the price behavior—decisive gains, favorable momentum, and a constructive distance from the 52-week high—speaks to a bullish bias building in CLS.


Why Celestica Inc. Price is Moving Higher

Celestica’s move to $322.66 reflects a blend of strong fundamentals, upbeat sentiment, and supportive analyst narratives tied to the company’s position in AI hardware and advanced supply chain solutions. The company’s market capitalization of $35.37 billion underscores its rising profile, while an EPS (TTM) of $6.03 connects earnings power to the broader growth story. Although today’s trading volume of 1,289,936 shares was below the 90-day average of 3,324,791, the lighter tape did not impede a 4.62% advance, indicating buyers were effective without overwhelming participation—often a constructive sign in ongoing uptrends.

A key driver has been improving growth expectations. Analysts highlight a robust outlook with consensus revenue growth projected at 26% in 2025 and 31% in 2026, anchored by a multiyear expansion pathway from roughly $5.6 billion in 2021 toward a projected $16 billion. Adjusted earnings are similarly constructive, with forecasts for a 52% increase this year and 39% next year, while 2026 earnings estimates have been revised higher by approximately 21% since the Q3 release. This momentum has contributed to a Zacks Rank #1 (Strong Buy), and roughly 77% of 17 brokerage recommendations rate the stock a strong buy—adding a tailwind of credibility to the growth narrative.

Further boosting confidence, a recent insider purchase exceeding 6,000 shares—valued at about $2 million—signals leadership alignment with shareholders. While CLS trades at a premium valuation, investors appear willing to pay up given the growth runway in AI infrastructure and complex manufacturing. With price still 11% below the 52-week high of $363.40, the setup remains favorable for continued bullish momentum.


What is the Celestica Inc. Rating - Should I Buy?

Weiss Ratings assigns CLS a B rating. Current recommendation is Buy.

The rating is built on five indices: the Excellent Growth Index (measures revenue and earnings expansion) aligns with Celestica’s rising demand profile and 27.79% revenue growth. The Excellent Efficiency Index (measures operational effectiveness and profit margins) is supported by scalable operations and disciplined cost control, reflected in a 6.20% profit margin and strong asset utilization. The Excellent Solvency Index (measures financial health and debt management) points to a solid balance sheet and prudent leverage, reinforcing financial flexibility. The Excellent Total Return Index (measures stock price appreciation plus dividends) reflects strong multi-period performance and wealth creation for shareholders. The Fair Volatility Index (measures price stability and risk) indicates price swings that are manageable but above the most stable peers, consistent with a 51.19 P/E ratio and a robust 36.38% ROE.

Relative to peers, CLS sits alongside other B-rated leaders in Information Technology. Sector peers include NVDA (B), AAPL (B), and MSFT (B). Celestica’s growth and efficiency profile compares well, supported by durable end-market demand and attractive returns on capital, while its volatility remains a moderating consideration in the overall risk-reward mix.

In sum, the blend of Excellent indices across growth, efficiency, solvency, and total return supports a Good overall assessment, while Fair volatility tempers the profile to a B rather than A. The result is a balanced, risk-adjusted view that recognizes meaningful upside potential with prudent acknowledgment of market-driven swings.


About Celestica Inc.

Celestica Inc. is a global electronics manufacturing services leader operating within the Information Technology sector and the Technology Hardware and Equipment industry. The company provides end-to-end design, engineering, manufacturing, and supply chain solutions for original equipment manufacturers and platform companies that require complex, high-reliability hardware.

Its portfolio spans new product introduction, design for manufacturability, rapid prototyping, printed circuit board assembly, system integration, and final configuration. Celestica also supports after-market services including repair, refurbishment, and lifecycle management, helping customers optimize total cost of ownership and speed to market. The company’s engineering capabilities extend into design services, thermal and power management, test development, and reliability engineering, enabling customers to scale products efficiently from concept through volume production.

Celestica serves diversified end markets such as communications and enterprise infrastructure, hyperscale and cloud data centers, aerospace and defense, healthtech, industrial and smart energy, and capital equipment including semiconductor and display. This mix balances secular growth drivers—like AI computing, networking, and data center expansion—with long-cycle, mission-critical applications that require stringent quality and compliance.

Competitive advantages include deep domain expertise in complex assemblies, a global manufacturing footprint, and integrated supply chain orchestration that reduces lead times and mitigates component volatility. Celestica’s focus on continuous improvement, automation, and advanced testing underpins consistent quality at scale. The company’s ability to co-design and co-develop hardware platforms with customers positions it as a strategic partner, not just a contract manufacturer, enhancing stickiness and share-of-wallet across the product lifecycle.


Investor Outlook

With a B rating and a Buy recommendation from Weiss Ratings, CLS enters the next phase of its uptrend with positive momentum and a supportive growth narrative. Strong fundamentals and favorable positioning in AI-related hardware underpin the potential for continued performance.

See full rankings of all B-rated Information Technology stocks inside the Weiss Stock Screener.

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This Weiss Instant News Alert was compiled by narrative data technology, our proprietary ratings models and analysis by Weiss Ratings with the intent of providing our readers with the fastest research and independent coverage. Weiss Instant News Alerts have been reviewed by a member of our editorial staff before publication. Please send any questions or comments about this story to [email protected]
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