Latest news with #Celestica
Yahoo
6 days ago
- Business
- Yahoo
AI Investments Shield Ethernet Data Center Switch Market from Tariff Disruptions, Shattering Sales Records, According to Dell'Oro Group
Celestica and NVIDIA Rise as Top Beneficiaries, Cementing their Dominance among the Elite Top 5 Vendors in the Market REDWOOD CITY, Calif., June 5, 2025 /PRNewswire/ -- According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, Ethernet Data Center Switch sales surged over 40 percent in the first quarter of 2025, marking the strongest growth since we began separately tracking the market in 2013 and breaking a new all-time high. Celestica and NVIDIA captured the lion's share of the gains, each expanding their revenue share by more than five percentage points. "AI investments continue to accelerate at unprecedented level, even amid tariff disruptions—propelling a surge in spending on the compute as well on the networking infrastructure that goes with it," said Sameh Boujelbene, Vice President at Dell'Oro Group. "Just two years ago, over 80 percent of AI clusters ran on InfiniBand, but Ethernet is striking back rapidly—gaining significant ground as reflected by the astonishing surge in Ethernet Data Center Switch sales during the quarter." Additional highlights from the 1Q 2025 Ethernet Switch–Data Center Report: Arista continues to lead the market for the fourth consecutive quarter. Celestica and NVIDIA are now among the top five vendors in the market. 800 Gbps switch sales eclipsed $1 B during the quarter. About the ReportThe Dell'Oro Group Ethernet Switch – Data Center Quarterly Report offers a detailed view of the market, including Ethernet switches for server access, server aggregation, and data center core. (Software is addressed separately.) The report contains in-depth market and vendor-level information on manufacturers' revenue; ports shipped; average selling prices for both Modular and Fixed Managed and Unmanaged Ethernet Switches (1, 10, 25, 40, 50, 100, 200, 400, 800, ≥1600 Gbps); revenue split by market segments as well as regional breakouts. To purchase these reports, please contact us by email at dgsales@ About Dell'Oro GroupDell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunication, security, enterprise networks, and data center infrastructure markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit View original content to download multimedia: SOURCE Dell'Oro Group Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-06-2025
- Business
- Yahoo
Why Celestica (CLS) is a Top Growth Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics. Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time. Headquartered in Ontario, Canada, Celestica is one of the largest electronics manufacturing services companies in the world, primarily serving original equipment manufacturers, cloud-based and other service providers and enterprises from several industries. The company offers a comprehensive range of manufacturing and supply-chain solutions related to design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, systems integration, logistics, product licensing, after-market repair, return and information technology (IT) asset management and disposition services. Celestica's extensive depth and breadth of offerings support a wide variety of customer requirements, from low-volume, high-complexity custom products to high-volume commodity products. CLS boasts a Growth Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Its bottom-line is projected to rise 30.2% year-over-year for 2025, while Wall Street anticipates its top line to improve by 13.2%. Three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.27 to $5.05 per share for 2025. CLS boasts an average earnings surprise of 7.4%. Celestica is also cash rich. The company has generated cash flow growth of 22.4%, and is expected to report cash flow expansion of 34.1% in 2025. Investors should take the time to consider CLS for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Celestica, Inc. (CLS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
04-06-2025
- Business
- Yahoo
CLS Outpaces Industry in the Past 3 Months: Reason to Buy the Stock? (Revised)
Celestica Inc. CLS has gained 24.3% over the past three months compared with the industry's growth of 15.4%. It has also outperformed peers like Flex Ltd. FLEX and Jabil Inc. JBL. Flex has gained 17.3% and Jabil is up 14.7% over this period. With more than two decades of experience in manufacturing backed by a simplified and global network, Celestica is committed to delivering next-generation, cloud-optimized data storage and industry-leading networking AI (artificial intelligence) solutions to help customers balance performance, power efficiency and space as technologies evolve. Operating primarily as a behind-the-scenes partner for other electronics businesses, it is among the lesser-known winners of the AI revolution. The Toronto, Canada-based company offers a one-stop shop for the electronics market, encompassing design, manufacturing and supply chain management. Three-Month CLS Stock Price Performance Image Source: Zacks Investment Research Celestica has benefited from the ongoing generative AI (GenAI) boom, thanks to the solid demand trends for AI/ML (machine learning) compute and networking products from hyperscale customers. It has launched a high-performance 800G family of network switches, which are vital for data centers that power AI applications and storage solutions like the SC6100 controller and SD6200 platform (which provide efficient and scalable data storage for AI). This transformational solution provides a foundational technology to advance AI while maintaining scalable, sustainable and profitable business such innovative products, the company has recorded solid revenue growth over the years. The data center switches combined with optical transceivers have the potential to handle and sustain high volumes of both inbound and outbound network traffic and cater to the demand for data center bandwidth for supporting AI/ML and data analytics applications. Image Source: Zacks Investment Research Earnings estimates for Celestica for 2025 have moved up 5.7% to $5.05 over the past 60 days, while the same for 2026 has improved 2.4% to $6.07. The positive estimate revision depicts optimism about the stock's growth potential. Image Source: Zacks Investment Research Despite the healthy demand trends, Celestica remains skeptical of the dynamic macro environment owing to trade policy uncertainty. While the environment remains fluid with frequent policy adjustments, recent announcements have provided near-term clarity with the U.S. government offering temporary exemptions for key data center IT hardware, including servers and networking switches, which comprise the majority of its Connectivity & Cloud Solutions (CCS) segment. The company is collaborating with its customers to evaluate the evolving policy landscape and take necessary actions, clouding its near-term revenue prospects. Celestica remains plagued by margin woes. Its products are highly sophisticated and typically based on the latest technological innovations, which have historically led to high research and development costs. High operating expenses have contracted margins. This has dented CLS' prospects to some Celestica faces stiff competition from industry giants like Foxconn, Jabil, Flex and Sanmina Corporation. Several smaller companies operating at a regional level also intensify competition. The highly cyclical nature of the semiconductor industry further remains an overhang. Celestica is helping customers balance performance, power efficiency and space as technologies evolve. We believe that the company is well-positioned for sustained growth over the years, backed by its robust infrastructure investments, solid technology know-how and wide industry high operating expenses for highly technological products have hurt margins. Although CLS is currently witnessing intense volatility owing to challenging macroeconomic conditions, investors are likely to profit in the long run if they bet on this stock. With a Zacks Rank #3 (Hold), Celestia appears to be treading in the middle of the road, and investors could be better off if they trade with caution. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. (We are reissuing this article to correct a mistake. The original article, issued on June 2, 2025, should no longer be relied upon.) Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jabil, Inc. (JBL) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
02-06-2025
- Business
- Yahoo
CLS Outpaces Industry in the Past 3 Months: Reason to Buy the Stock?
Celestica Inc. CLS has gained 24.3% over the past three months compared with the industry's growth of 15.4%. It has also outperformed peers like Flex Ltd. FLEX and Jabil Inc. JBL. Flex has gained 17.3% and Jabil is up 14.7% over this period. With more than two decades of experience in manufacturing backed by a simplified and global network, Celestica is committed to delivering next-generation, cloud-optimized data storage and industry-leading networking AI (artificial intelligence) solutions to help customers balance performance, power efficiency and space as technologies evolve. Operating primarily as a behind-the-scenes partner for other electronics businesses, it is among the lesser-known winners of the AI revolution. The Toronto, Canada-based company offers a one-stop shop for the electronics market, encompassing design, manufacturing and supply chain management. Three-Month CLS Stock Price Performance Image Source: Zacks Investment Research Celestica has benefited from the ongoing generative AI (GenAI) boom, thanks to the solid demand trends for AI/ML (machine learning) compute and networking products from hyperscale customers. In addition to the high-performance 800G family of network switches (which are vital for data centers that power AI applications) and storage solutions like the SC6100 controller and SD6200 platform (which provide efficient and scalable data storage for AI), Celestica offers Photonic Fabric – an optical compute and memory fabric solution capable of supercharging AI infrastructure. This transformational solution provides a foundational technology to advance AI while maintaining scalable, sustainable and profitable business such innovative products, the company has recorded solid revenue growth over the years. By integrating next-generation networking products with silicon photonics packaging solutions, Celestica aims to optimize supply chain solutions to reduce time to market. The data center switches combined with optical transceivers have the potential to handle and sustain high volumes of both inbound and outbound network traffic and cater to the demand for data center bandwidth for supporting AI/ML and data analytics applications. Image Source: Zacks Investment Research Earnings estimates for Celestica for 2025 have moved up 5.7% to $5.05 over the past 60 days, while the same for 2026 has improved 2.4% to $6.07. The positive estimate revision depicts optimism about the stock's growth potential. Image Source: Zacks Investment Research Despite the healthy demand trends, Celestica remains skeptical of the dynamic macro environment owing to trade policy uncertainty. While the environment remains fluid with frequent policy adjustments, recent announcements have provided near-term clarity with the U.S. government offering temporary exemptions for key data center IT hardware, including servers and networking switches, which comprise the majority of its Connectivity & Cloud Solutions (CCS) segment. The company is collaborating with its customers to evaluate the evolving policy landscape and take necessary actions, clouding its near-term revenue prospects. Celestica remains plagued by margin woes. Its products are highly sophisticated and typically based on the latest technological innovations, which have historically led to high research and development costs. High operating expenses have contracted margins. This has dented CLS' prospects to some Celestica faces stiff competition from industry giants like Foxconn, Jabil, Flex and Sanmina Corporation. Several smaller companies operating at a regional level also intensify competition. The highly cyclical nature of the semiconductor industry further remains an overhang. As the company scales up production volumes and costs go down, possible uses for silicon photonics are likely to soar across several industries, including automotive, data center and high-performance computing, telecommunications, medical, aerospace and defense. We believe that Celestica is well-positioned for sustained growth over the years, backed by its robust infrastructure investments, solid technology know-how and wide industry high operating expenses for highly technological products have hurt margins. Although CLS is currently witnessing intense volatility owing to challenging macroeconomic conditions, investors are likely to profit in the long run if they bet on this stock. With a Zacks Rank #3 (Hold), Celestia appears to be treading in the middle of the road, and investors could be better off if they trade with caution. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jabil, Inc. (JBL) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
With 75% ownership, Celestica Inc. (TSE:CLS) boasts of strong institutional backing
Institutions' substantial holdings in Celestica implies that they have significant influence over the company's share price The top 25 shareholders own 44% of the company Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Every investor in Celestica Inc. (TSE:CLS) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 75% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. Let's take a closer look to see what the different types of shareholders can tell us about Celestica. View our latest analysis for Celestica Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. Celestica already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Celestica, (below). Of course, keep in mind that there are other factors to consider, too. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Celestica is not owned by hedge funds. The company's largest shareholder is FMR LLC, with ownership of 7.4%. With 6.0% and 3.9% of the shares outstanding respectively, Whale Rock Capital Management LLC and The Vanguard Group, Inc. are the second and third largest shareholders. Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our most recent data indicates that insiders own less than 1% of Celestica Inc.. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own CA$98m of stock. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling. The general public-- including retail investors -- own 25% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. It's always worth thinking about the different groups who own shares in a company. But to understand Celestica better, we need to consider many other factors. Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow. If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
