CELESTICA INC (NYSE:CLS) has emerged as a compelling candidate for growth investors, meeting both Mark Minervini’s Trend Template and high-growth momentum criteria. The stock demonstrates strong technical health and accelerating fundamentals, making it worth a closer look.
Why CLS Fits the Minervini Trend Template
Minervini’s strategy focuses on stocks with strong uptrends, confirmed by moving averages and relative strength. CLS meets these technical criteria:
- Price Above Key Moving Averages: The stock trades at $160.12, well above its 50-day ($131.69), 150-day ($109.57), and 200-day ($100.36) moving averages.
- Upward-Trending Averages: The 50-day, 150-day, and 200-day MAs are all rising, confirming long-term strength.
- Relative Strength: With a ChartMill Relative Strength score of 97.69, CLS outperforms nearly 98% of all stocks.
- Near 52-Week High: The stock is trading within 3.4% of its 52-week high ($165.83), indicating strong momentum.
Growth Fundamentals Supporting the Case
Beyond technicals, CLS exhibits strong earnings and revenue growth:
- Earnings Growth: EPS (TTM) grew 51% year-over-year, with quarterly EPS up 39.5% in the most recent quarter.
- Revenue Growth: Sales increased 21% over the past year, with consistent quarterly growth above 19%.
- Profitability: The company has improved its profit margin to 4.44% (FY), up from 3.07% the prior year.
- Estimate Beats: CLS has beaten EPS estimates in all of the last four quarters, with an average beat of 7.48%.
Technical Outlook
The stock’s technical rating of 10/10 reflects its strong uptrend and leadership within the Electronic Equipment, Instruments & Components industry. A pullback to support near $148.90 could offer an attractive entry point.
For a deeper technical breakdown, review the full technical report here.
Our High Growth Momentum + Trend Template screener lists more stocks with similar growth and momentum traits.
Disclaimer
This is not investment advice. Always conduct your own research before making any investment decisions.
