Chart of the Day: Celestica - Still Going Strong
NOTE: Celestica (CLS) was last featured on 10/4 when it closed at $23.70 and has gained 76% since that date.
The Chart of the Day belongs to the circuit board company Celestica (CLS) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 1/ 10 the stock gained 41.50%.
Celestica Inc. provides supply chain solutions in North America, Europe, and Asia. It operates through Advanced Technology Solutions, and Connectivity & Cloud Solutions segments. The company offers a range of product manufacturing and related supply chain services, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services. It also provides hardware platform solutions, which includes development of infrastructure platforms, and hardware and software design solutions and services which is used as-is, or customized for specific applications; and management of program including design and supply chain, manufacturing, and after-market support. The company serves aerospace and defense, industrial, HealthTech, capital equipment, original equipment manufacturers, cloud-based, and other service providers, including hyperscalers, and other companies, as well as communication and enterprise markets including servers and storage. Celestica Inc. was incorporated in 1996 and is headquartered in Toronto, Canada.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 232.26+ Weighted Alpha
- 221.06% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 17 new highs and up 32.02% in the last month
- Relative Strength Index 72.28%
- Technical support level at $39.78
- Recently traded at $41.77 with 50 day moving average of $32.09
Fundamental Factors:
- Market Cap 4.40 billion
- P/E 15.42
- Wall Street projects Revenue will grow 10.00% this year and grow another 7.20% next year
- Earnings are estimated to increase 20.20% this year, increase an additional 9.20% next year and continue to compound at an annual rate of 18.70% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analysts issued 3 strong buy, 3 buy, 1 hold and 1 sell recommendation this month
- Analysts price targets are $36 to $41 - consensus price target $38 - a loss of 9% so why all the strong buy and buys???
- The individual investors following the stock on Motley Fool voted 176 to 19 for the stock to beat the market with the most experienced investors voting 35 to 5 for the same result
- Value Line rates the stock it's highest rating of 1 but has a price target of $24 for a 35% loss — does that make sense?
- CFRAs MarketScope has a strong buy rating
- 17,370 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
Provided Content: Content provided by Barchart. The Globe and Mail was not involved, and material was not reviewed prior to publication.
