Celestica, Inc. (CLS) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Celestica (CLS)? Shares have been on the move with the stock up 20.7% over the past month. The stock hit a new 52-week high of $99.34 in the previous session. Celestica has gained 238.8% since the start of the year compared to the 34.8% move for the Zacks Computer and Technology sector and the 48.1% return for the Zacks Electronics - Manufacturing Services industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 23, 2024, Celestica reported EPS of $1.04 versus consensus estimate of $0.94 while it beat the consensus revenue estimate by 3.66%.For the current fiscal year, Celestica is expected to post earnings of $3.85 per share on $9.6 billion in revenues. This represents a 58.44% change in EPS on a 20.55% change in revenues. For the next fiscal year, the company is expected to earn $4.43 per share on $10.42 billion in revenues. This represents a year-over-year change of 15.32% and 8.52%, respectively.Valuation MetricsCelestica may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Celestica has a Value Score of B. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 25.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 20X. On a trailing cash flow basis, the stock currently trades at 26.1X versus its peer group's average of 14.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Celestica currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Celestica passes the test. Thus, it seems as though Celestica shares could have a bit more room to run in the near term.How Does CLS Stack Up to the Competition?Shares of CLS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Plexus Corp. (PLXS). PLXS has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of B.Earnings were strong last quarter. Plexus Corp. beat our consensus estimate by 20.92%, and for the current fiscal year, PLXS is expected to post earnings of $6.79 per share on revenue of $4.2 billion.Shares of Plexus Corp. have gained 8.5% over the past month, and currently trade at a forward P/E of 24.48X and a P/CF of 23.84X.The Electronics - Manufacturing Services industry is in the top 10% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CLS and PLXS, even beyond their own solid fundamental situation.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Celestica, Inc. (CLS): Free Stock Analysis Report Plexus Corp. (PLXS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks