CLS

Celestica (CLS), an electronics manufacturing services company, has declined 15.8% over the past month while the broader market gained 0.7%. Despite strong fundamentals including 90.5% year-over-year earnings growth for the current quarter and consistent beats on both earnings and revenue estimates, the stock received a Zacks Rank #3 (Hold) rating. The company is valued at par with peers and is expected to perform in line with the broader market in the near term.

Celestica (CLS) closed down 1.14% and is expected to report earnings on October 26, 2026, with projected EPS of $3.01 (up 90.51% YoY) and revenue of $5.4 billion (up 69.1% YoY). The company holds a Zacks Rank #3 (Hold) rating with a Forward P/E of 26.83, trading at a premium to its industry average of 22.9. The Electronics - Manufacturing Services industry ranks #17 among all industries.

SpaceX (SPCX) emerges as the better investment pick compared to Celestica (CLS), driven by stronger price performance, significant upward earnings revisions (350% over 60 days), and a higher Zacks Rank #2 (Buy). While CLS offers more attractive valuation metrics with lower price-to-sales ratio, SPCX's projected 136.2% sales growth in 2026 and commanding market position in commercial launches outweigh valuation concerns. However, SPCX faces margin uncertainty due to heavy capital investments in AI infrastructure initiatives.