Celestica Inc. (NYSE:CLS) finished Wednesday with an addition of $0.66 to close at $22.11, an upside of 3.08 percent. An average of 2,088,140 shares of common stock have been traded in the last five days. There was a gain of $1.03 in the past week, and it reached a new high 28 times over the past 12 months. The last 20 days have seen an average of 2,458,575 shares traded, while the 50-day average volume stands at 1,459,072.
CLS stock has increased by 33.84% in the last month. The company shares reached their 1-month lowest point of $15.98 on 07/24/23. With the stock rallying to its 52-week high on 08/01/23, shares of the company touched a low of $8.21 and a high of $22.68 in 52 weeks. It has reached a new high 24 times so far this year and achieved 96.18% or $10.84 in price. In spite of this, the price is down -2.51% from the 52-week high.
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Valuation Metrics
Celestica Inc. (CLS) has a trailing price-to-earnings (P/E) ratio of 16.00. The stock’s beta is 2.15. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.35, the price-to-book (PB) ratio at 1.58, and the price-to-cash flow ratio at 11.07.
Financial Health
The quick ratio of Celestica Inc. for the three months ended June 29 was 0.60, and the current ratio was 1.40, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.43 and a total debt to equity ratio of 0.47 for the quarter ending June 29. Celestica Inc.’s EBITDA margin for the year ending June 29 is 5.72%, while its operating margin for the same period stands at 4.00%. Its gross profit as reported stood at $636.3 million compared to revenue of $7.25 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Celestica Inc.’s return on assets was 3.10%.
Earnings Surprise
In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $145.5 million in the quarter, while revenues were grew 28.59%. The analyst consensus anticipated Celestica Inc.’s latest quarter earnings to come in at $0.47 per share, but it turned out to be $0.55, a 17.00% surprise. For the quarter, EBITDA amounted to $127.2 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Celestica Inc. (CLS) price momentum. RSI 9-day as of the close on 23 August was 72.58%, suggesting the stock is Overbought, with historical volatility in this time frame at 29.37%.
As of today, CLS’s price is $21.12 +4.89% or $1.03 from its 5-day moving average. CLS is currently trading +34.33% higher than its 20-day SMA and +74.92% higher than its 100-day SMA. However, the stock’s current price level is +64.26% above the SMA50 and +111.38% above the SMA200.
The stochastic %K and %D were 61.24% and 39.62%, respectively, and the average true range (ATR) was 0.83. With the 14-day stochastic at 85.17% and the average true range at 0.82, the RSI (14) stands at 71.99%. The stock has reached 0.31 on the 9-day MACD Oscillator while the 14-day reading was at 0.30.
Analyst Ratings
TD Securities upgraded Celestica Inc. (NYSE: CLS) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Hold. The consensus rating for Celestica Inc. (CLS) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell CLS, while 1 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 6 others rate it as a “buy”.
What is CLS’s price target for the next 12 months?
Analysts predict a range of price targets between $16.67 and $25.00, with a median target of $23.50. Taking a look at these predictions, the average price target given by analysts for Celestica Inc. (CLS) stock is $22.45.
