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Celestica - AI Stock Analysis

Analysis generated June 23, 2024

Celestica Inc. is a multinational electronics manufacturing services (EMS) provider headquartered in Toronto, Canada. Offering a range of supply chain solutions, design engineering support, and manufacturing services, Celestica caters to diverse industries including communications, enterprise, healthcare, and aerospace. With a global footprint and a reputation for delivering high-quality service, Celestica remains committed to innovation and operational excellence.

Fundamental Analysis

Analyzing Celestica's financial performance, we note the revenue for the last quarter was $2.2 billion. Though this represents a minor decrease of 0.03% from the previous quarter, it reflects a year-over-year increase of 19.66%, suggesting strong annual growth.

Net income for the last quarter stood at $102 million, marking a robust increase of 20.78% compared to the previous quarter and a phenomenal year-over-year growth of 311.74%. This indicates a substantial improvement in net profitability.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the last quarter reached $180 million, showing an increase of 7.01% from the previous quarter and an impressive year-over-year rise of 75.65%. These positive figures reflect Celestica's growing operational efficiency and profitability.

The current Price to Earnings (P/E) ratio is 20.86, which aligns with industry norms. This ratio suggests that while the stock isn't overly cheap, it isn't excessively valued either, presenting a balanced investment prospect based on earnings.

Technical Analysis

Today's stock price for Celestica is $55.91, which represents an increase of 0.98% from a month ago, hinting at a positive short-term trend. Significantly, the stock has surged by 292.63% compared to a year ago, indicating a strong long-term bullish trend.

However, the stock demonstrates some bearish indicators. The current Simple Moving Average over 10 days (SMA10) is $56.59, slightly lower than the previous SMA10 of $56.67. This slight downturn suggests a potential weakening in price movement. Additionally, a Relative Strength Index (RSI) of 74.2 signals an overbought condition, which could lead to a price correction.

Alternative Data Analysis

Evaluating alternative data reveals mixed insights. Celestica maintains 404 open positions, indicating stability in its workforce needs. Employee sentiment remains neutral, reflecting neither strong optimism nor significant concerns among the workforce.

In terms of customer acquisition, Celestica has seen an increase of 56% in website visitors over recent months, with the current estimate at 200,000 visitors. This upward trend is a bullish signal as it suggests rising interest in the company's products and services. Additionally, Celestica's social media engagement shows growth, with a 4% increase in Instagram followers, though Twitter followers have remained stable at 2,500.

According to AltIndex's AI model, which integrates fundamental, technical, and alternative data analytics, Celestica has a score of 65, indicating a buy signal and an overall positive outlook for the stock.

Conclusion

Based on comprehensive analysis, Celestica appears to be in a strong financial position with significant year-over-year growth in revenue, net income, and EBITDA. The P/E ratio is within a normal range, suggesting the stock is fairly valued.

While recent technical trends indicate possible overbought conditions and a potential price correction, the long-term outlook remains positive. The alternative data analysis shows a healthy trend in customer acquisition and stable employee sentiment. With an AI score of 65 from AltIndex, the overall recommendation leans towards a buy. However, investors should remain cautious of potential short-term volatility and overbought conditions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.