CLS

Celestica (CLS) is set to report Q3 2026 earnings on October 26 with consensus estimates of $5.4 billion in sales and $3.01 EPS. The company is expected to benefit from AI infrastructure investments and hyperscaler demand, particularly from 800G and 1.6T networking programs.

However, investors should monitor execution risks, customer concentration (three customers represent 10%+ of revenue each), and $1 billion in planned 2026 capex. The stock has underperformed peers over the past year and currently trades at a premium valuation.

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.

Celestica stock fell 4.05% on October 12, 2026, outpacing the S&P 500's 0.06% decline. Despite a 4.5% monthly gain, the stock trades at a premium valuation with a Forward P/E of 31.98 versus the industry average of 26.08.

The company is expected to report earnings on October 26 with projected EPS of $3.01 (up 90.51% YoY) and revenue of $5.4 billion (up 69.1% YoY). Celestica holds a Zacks Rank of #3 (Hold) with no recent changes to consensus estimates.

Celestica (CLS), an electronics manufacturing services company, has gained 9.6% over the past month, outperforming the S&P 500. The company shows strong earnings growth expectations of 87.1% year-over-year for the current fiscal year and 67.9% for the next fiscal year, with consistent revenue growth forecasts of 64.3% and 57.2% respectively. However, the stock received a Zacks Rank #3 (Hold) rating, suggesting it may perform in line with the broader market in the near term, and is valued at par with its peers.

Celestica (CLS) is benefiting from AI infrastructure demand and 800G/1.6T networking growth, with expected CCS revenue growth of ~85% in 2026. However, high customer concentration (top 10 customers = 79% of revenue), intense competition, and cyclical exposure present significant risks. The stock trades at a premium valuation and carries a Zacks Rank #3 (Hold) rating.

Celestica Inc. is expanding its communications portfolio with high-speed networking solutions including the DS6000 series offering 1.6TbE connectivity and 102.4Tbps switching capacity for AI and data centers. The company is also advancing optical communication offerings for enterprise applications. Celestica faces competition from Jabil and Sanmina in the communications market.

Celestica and Marvell Technology are positioned to outperform Palantir over the next five years by capitalizing on AI infrastructure buildout. Celestica is expanding its role in data center infrastructure and AI systems design, while Marvell is growing its custom silicon and optical interconnect businesses. Both companies have strong growth trajectories, though Marvell's path to surpassing Palantir appears more straightforward than Celestica's.

Sanmina (SANM) has surged 69.3% over the past year, outperforming peers like Jabil and Celestica, driven by its vertically integrated manufacturing, 42Q connected manufacturing technology, and the ZT Systems acquisition that strengthens AI and cloud capabilities. However, supply-chain disruptions, intense competition, high R&D costs, tariff pressures, and significant China exposure pose headwinds. The stock carries a Zacks Rank #3 (Hold) rating.

Celestica (CLS) declined 1.2% to $382.69, underperforming the broader market gains. Despite strong recent performance (up 24% over the past month), the stock carries a Zacks Rank #3 (Hold) rating. The company is expected to report significant earnings growth of 90.51% YoY and revenue growth of 69.1%, but trades at a premium valuation with a Forward P/E of 34.2 versus the industry average of 22.38.

Jabil reported quarterly earnings of $4.4 per share, beating consensus estimates of $4.06, with revenues of $10.62 billion exceeding expectations by 9.91%. The company has outperformed the market by 39.8% year-to-date and received a Zacks Rank #2 (Buy) rating. Celestica, another electronics manufacturing services company, is expected to report results with projected earnings of $3.01 per share, representing 90.5% year-over-year growth.

Celestica stock rose 2.62% to $365.88, outperforming the broader market decline. The company is projected to report strong earnings growth of 90.51% EPS and 69.1% revenue growth year-over-year. However, the stock trades at a premium valuation with a Forward P/E of 31.48 versus the industry average of 24.79, and holds a Zacks Rank of #3 (Hold).

While 18 of 19 brokers rate Celestica (CLS) as Strong Buy with an average brokerage recommendation of 1.05, the article cautions against relying solely on these recommendations. The Zacks Rank assigns CLS a #3 (Hold) rating due to unchanged earnings estimates over the past month, suggesting the stock may perform in line with the broader market. The article argues that brokerage recommendations often suffer from positive bias due to vested interests, and that earnings estimate revisions are a more reliable indicator of near-term stock performance.

Flex Ltd. has completed its acquisition of EPC Power, adding advanced power conversion and grid-forming technologies to its Cloud and Power Infrastructure (CPI) portfolio. EPC Power brings 15 GW of deployed technology and supports next-generation 800-volt data center systems. Flex expects 65-75% CPI revenue growth in fiscal 2027, ahead of its planned separation into Axiom Solutions International in Q1 calendar 2027.

Jabil Inc. (JBL) reported strong Q4 fiscal 2026 results and projects AI revenues to surge 54% to $22.1 billion in fiscal 2027. The company expects total revenues of $44.5 billion and core EPS of $17.55, with the Intelligent Infrastructure segment driving growth. However, execution risks remain as Jabil expands capacity globally to support larger customer programs.

Jabil Inc. (JBL) projects fiscal 2027 revenues of $44.5 billion (+24% YoY) and core EPS of $17.55 (+34% YoY), driven by AI-related revenues surging 54% to $22.1 billion. The stock trades at 17.2X forward earnings, below industry averages but above its five-year median of 13.8X. While strong growth and margin improvements support the valuation premium, concentration in large customer programs and uneven demand outside infrastructure present execution risks.

Jabil delivered strong Q4 results with revenue surging 29% and adjusted EPS up 34%, driven by booming AI infrastructure demand. The company projects fiscal 2027 revenue growth of 24% and EPS growth of 34%. However, with the stock already up 30% year-to-date and trading at a reasonable 19X forward earnings, Zacks rates it a Hold, suggesting better buying opportunities may still be ahead.

Jabil (JBL) is set to report Q4 fiscal 2026 earnings on Sept. 30 with consensus estimates of $9.61 billion in sales and $4.05 EPS. The company is expanding AI infrastructure capabilities through new facilities in India and Malaysia, with AI-related revenue projected at $13.6 billion for 2026.

However, weakness in consumer products and automotive segments remain concerns. JBL trades at a valuation discount to peers and holds a Zacks Rank #2 (Buy) rating.