- Celestica (CLS) hit a new 52-week high in morning trading on July 24.
- Shares have strong technical momentum and a 100% “Buy” signal via Barchart.
- CLS stock is up more than 200% in the past year, and up 80% in the year to date.
- Fundamentals are solid, and analyst sentiment is mostly positive. However, some caution CLS stock is overvalued.
Valued at $19.4 billion, Celestica (CLS) is one of the largest electronics manufacturing services companies in the world, serving the computer and communications sectors. The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world’s leading original equipment manufacturers.
What I’m Watching:
I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. CLS checks those boxes. Since the Trend Seeker signaled a buy on May 2, the stock has gained 79.43%.
CLS Price vs. Daily Moving Averages:
Barchart Technical Indicators for Celestica:
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each 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. These technical indicators form the Barchart Opinion on a particular stock.
Celestica shares hit a new 52-week high on July 24, touching $173.24 in morning trading.
- CLS has a 100% technical “Buy” signal.
- The stock recently traded at $163.75 above its 50-day moving average of $136.99.
- Celestica has a Weighted Alpha of +211.98.
- The stock has gained 211.7% over the past year.
- CLS has its Trend Seeker “Buy” signal intact.
- Celestica is trading above its 20, 50 and 100-day moving averages.
- The stock made nine new highs and gained 15.7% in the last month.
- Relative Strength Index is at 60.55%.
- The technical support level is $161.68.
Don’t Forget the Fundamentals:
- $19.4 billion market capitalization.
- Revenue is projected to grow 13.63% this year and another 17.12% next year.
- Earnings are estimated to increase 30.45% this year and increase an additional 21.27% next year.
Analyst and Investor Sentiment on Celestica:
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.
It looks like Wall Street analysts are bullish, but some major advisory sites are split.
- The Wall Street analysts tracked by Barchart issued eight “Strong Buy,” two “Moderate Buy,” and two “Sell” opinions on the stock.
- Value Line gives the company its highest rating.
- CFRAs Market Scope rates the stock a “Buy.”
- Morningstar thinks the stock is 46% overvalued.
- 49,900 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy.”
The Bottom Line:
Celestica currently has momentum and is hitting new highs on Wall Street. Plus, analysts project double-digit increases in both revenue and earnings.
I caution that CLS is volatile and speculative — use strict risk management and stop-loss strategies.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart 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.
