With a 74% rise in Celestica's stock value since the start of the year, its sales value suggests it might still be a good buy. Analyst confidence is high, with earnings expected to reach $1.22 per share this quarter. The company shows strong cash flow and efficiency, which could mean good news for future investors.
What This Financial News Means
Celestica's stock has had an impressive climb, rising by 74% since earlier predictions. But what's interesting is that the company's sales value (how much people are willing to pay for its sales) is still 44% lower than its peers. This means there might be a good opportunity for investors because the stock could still go up.
Analysts are feeling positive about Celestica's future. They're expecting the company's earnings per share (a way to measure profit) to be $1.22. This is based on strong support from analysts, with 10 raising their predictions and none lowering them. That's a big vote of confidence!
Key Numbers To Understand
Here are some important figures from Celestica's latest performance that you should know:
- Stock rise: Up 74% since the initial call
- Sales value: 44% below peer average
- Earnings per share (EPS) prediction: $1.22, with 10 upgrades
- Operating margin: Record high of 7.1%
- Return on invested cash (ROIC): 31.5% over the last year
- Cash cycle days: Improved from 74 to 69 days
- Customer deposits: Fell to $472 million
These numbers suggest that Celestica is managing its money well and gaining trust with its customers, which is a good sign for the future.
What Happens Next
Looking ahead, Celestica's forward price-to-earnings ratio (a way to measure if a stock is priced well) is expected to drop from about 32 times to 26 times by 2026. This could make the stock even more attractive if Celestica continues to perform well. Here are some factors to watch:
- Whether Celestica continues to meet or exceed earnings expectations
- Improvements in operating margins and cash flow
- Any changes in customer deposit levels indicating trust and efficiency
For investors, keeping an eye on these trends can help decide if Celestica is a smart investment moving forward. Its potential for growth and strong cash handling could lead to further investment opportunities.