CELESTICA INC (NYSE:CLS) – A Strong Growth Stock with Technical Breakout Potential

CELESTICA INC (NYSE:CLS) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamental growth metrics with a bullish chart pattern, making it worth a closer look.

Fundamental Strengths

• Growth: CLS has demonstrated impressive growth, with earnings per share (EPS) increasing by 51.06% over the past year. Revenue growth has also been strong at 21.05% year-over-year. Future EPS is expected to grow by 24.42% annually.
• Profitability: The company scores an 8 out of 10 in profitability, with strong return metrics (ROIC of 17.26% and ROE of 27.13%), outperforming most industry peers.
• Valuation: While not cheap, CLS trades at reasonable levels relative to its growth prospects, with a forward P/E ratio slightly below the industry average.

Technical Setup

• Trend Strength: Both short-term and long-term trends are positive, with the stock trading near its 52-week high.
• Support & Resistance: Key support lies around $115.38-$115.84, while resistance is at $122.66. A breakout above resistance could signal further upside.
• Volume & Momentum: Recent consolidation has occurred with lower volatility, suggesting a potential breakout if buying pressure resumes.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks meeting these criteria.
For a deeper dive, review the full fundamental report and technical analysis.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.