Celestica Inc Scores 77% in Growth Investor Model Analysis

According to a recent report, Celestica Inc has received a 77% rating under the Growth Investor model, indicating solid fundamentals despite some weaknesses. Key areas like revenue growth and debt levels may influence investment sentiment going forward.

Date: 01-10-2024

AI Rating: 6

Celestica Inc (CLS) has achieved a rating of 77% in the Growth Investor model, which assesses growth stocks based on their earnings and sales growth, valuation, and debt levels. While a score above 80% indicates interest, its current rating still denotes decent potential.

While the overall fundamentals seem favorable, certain areas show weaknesses that could impact investor sentiment. Specifically:

Revenue Growth in Relation to EPS Growth: The stock FAILS this criterion, indicating potential concerns about revenue growth not keeping pace with earnings growth, which may raise red flags for investors looking for sustainability.
Long-term EPS Growth: This aspect PASSES, suggesting a positive trajectory in earnings per share over the long term, which may appeal to investors.
Total Debt/Equity Ratio: This ratio FAILS, which could be a significant concern for investors worried about leverage and its effects on overall financial stability.
Other Positive Indicators: Celestica passes metrics like current quarter earnings and positive earnings growth, which are critical for maintaining investor confidence.

In summary, while Celestica has favorable ratings in many areas, the failures in debt levels and revenue growth relative to EPS could create hesitance among investors. These factors might push the stock towards moderate volatility as investors digest these insights.

Stocks: CLS