Celestica is Tuesday's selection for IBD 50 Stocks To Watch as the electronic products maker rebounds from its 50-day moving average. Shares of Celestica stock currently are working on their fifth-straight day of gains.
While Celestica continues to rally, its relative strength line is rising as the stock keeps climbing. For the year, the company's stock has shown a gain of more than 85%. By comparison, the S&P 500 is up 19%.
Shares rallied ahead of second-quarter earnings on July 24 and fell, undercutting both their base and the stock's 50-day moving average. As shares found support at the 200-day moving average, it reset Celestica's base count. Celestica stock now offers a buy point at 63.49 which is also its all-time high.
Keeping an eye on sales and earnings is crucial to making sound picks. Celestica's sales rose 23% to $2.4 billion in the second quarter while earnings of 91 cents per share came in 65% higher than the prior year.
For the third quarter, the company expects sales of $2.4 billion with earnings of 91 cents a share at the midpoint. Analysts polled by FactSet have sales estimates that are in line with the company's outlook. Estimated earnings of 93 cents a share is a tad higher.
The company hiked its full-year outlook and now expects per-share earnings of $3.62 on sales of $9.45 billion. Earlier, it had targeted $3.30 in earnings per share on $9.1 billion in sales.
Celestica Stock Is Under Accumulation
Celestics provides storage controllers, servers and network switches used in several industries. They range from aerospace and defense to communications, health technology and capital equipment. Celestica also serves semiconductor, robotics and automation players.
Mutual funds own 50% of outstanding shares of Celestica stock. More funds have been adding it to their holdings over the past seven quarters and in recent weeks, giving Celestica an Accumulation/Distribution Rating of B- from Investor's Business Daily. Among top funds, the Invesco Discovery Fund (OPOCX) holds shares of Celestica stock.
The company ranks first in the electronics and contract manufacturing group.
Celestica holds ideal scores of 99 for both its Composite Rating and EPS Rating from IBD. Both ratings compare Celestica stock with others in the IBD database based on several metrics. The Relative Strength Rating of 92 is impressive as well.
To pick the best investments, investors should first compare stocks with each other and with a benchmark like the S&P 500. For example, the relative strength line compares Celestica stock with the S&P 500 while the Relative Strength Rating compares it with others in the IBD database. You can compare other metrics as well on IBD Stock CheckUp.
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