Why Celestica Inc. (CLS) Went Up on Wednesday

We recently compiled a list of the 10 Companies Jump on Better Earnings, Outlook. In this article, we are going to take a look at where Celestica Inc. (NYSE:CLS) stands against the other stocks.

The stock market extended its winning streak on Wednesday, closing firmer as investors seemed to have already priced in the news of tit-for-tat tariffs and uncertainties surrounding the Artificial Intelligence industry.

The Dow Jones gained another 0.71 percent, the S&P 500 grew 0.39 percent, and the tech-heavy Nasdaq increased by 0.19 percent.

Ten companies traded in line with the broader market sentiment, mostly on the back of record achievements in their latest earnings performance and optimistic outlook guidance.

To come up with Wednesday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A close-up of a circuit board with components depicting the intricate electronic componentry products the company produces.

Celestica Inc. (NYSE:CLS)

Celestica Inc. rose for a second day on Wednesday, adding 8.84 percent to close at $143.67 apiece after earning an upgraded rating from an investment research firm.

On Wednesday, RBC Capital Markets boosted its price target for Celestica to $160 from $140 previously while reiterating an “outperform” rating on the back of the company’s continued momentum in launching new programs and its distinctive products for hyperscaler clients. Such factors, coupled with its ability to surpass consensus estimates, justified a higher valuation for its stock price.

Last week, Celestica announced a 19-percent jump in its revenues for the fourth quarter of 2024 at $2.55 billion versus the $2.14 billion registered in the same period in 2023.

For this year, Celestica posted confidence that it would achieve improved business and earnings performance, as it raised its full-year outlook as a reflection of the strengthening demand in its Connectivity and Clouds Solutions (CCS) segment.

Overall CLS ranks 9th on our list of Wednesday’s top gainers. While we acknowledge the potential of CLS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CLS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.