Trade-Ideas LLC identified

Celestica

(

CLS

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Celestica as such a stock due to the following factors:

  • CLS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.2 million.
  • CLS has traded 9.865700000000000358113538823090493679046630859375 options contracts today.
  • CLS is making at least a new 3-day high.
  • CLS has a PE ratio of 17.
  • CLS is mentioned 0.48 times per day on StockTwits.
  • CLS has not yet been mentioned on StockTwits today.
  • CLS is currently in the upper 20% of its 1-year range.
  • CLS is in the upper 35% of its 20-day range.
  • CLS is in the upper 45% of its 5-day range.
  • CLS is currently trading above yesterday's high.

TheStreet Recommends

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on CLS:

Celestica Inc. provides supply chain solutions to customers in the communications, consumer, industrial, aerospace and defense, healthcare, solar, green technology, semiconductor equipment, servers, and storage end markets in the Americas, Asia, and Europe. CLS has a PE ratio of 17. Currently there is 1 analyst that rates Celestica a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Celestica has been 346,100 shares per day over the past 30 days. Celestica has a market cap of $1.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.95 and a short float of 1.8% with 7.53 days to cover. Shares are up 11.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Celestica as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • CLS's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
  • Compared to its closing price of one year ago, CLS's share price has jumped by 28.78%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.6%. Since the same quarter one year prior, revenues slightly dropped by 3.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • CELESTICA INC's earnings per share declined by 36.4% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, CELESTICA INC reported lower earnings of $0.58 versus $0.64 in the prior year. This year, the market expects an improvement in earnings ($1.06 versus $0.58).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 40.8% when compared to the same quarter one year ago, falling from $40.90 million to $24.20 million.

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