U.S. Markets open in 2 hrs 50 mins
  • S&P Futures

    4,401.75
    +8.00 (+0.18%)
     
  • Dow Futures

    34,976.00
    +142.00 (+0.41%)
     
  • Nasdaq Futures

    14,995.75
    -15.75 (-0.10%)
     
  • Russell 2000 Futures

    2,242.80
    +22.10 (+1.00%)
     
  • Crude Oil

    72.62
    +0.23 (+0.32%)
     
  • Gold

    1,822.00
    +22.30 (+1.24%)
     
  • Silver

    25.55
    +0.67 (+2.69%)
     
  • EUR/USD

    1.1881
    +0.0034 (+0.2851%)
     
  • 10-Yr Bond

    1.2610
    0.0000 (0.00%)
     
  • Vix

    17.61
    -1.75 (-9.04%)
     
  • GBP/USD

    1.3958
    +0.0050 (+0.3573%)
     
  • USD/JPY

    109.8510
    -0.0590 (-0.0537%)
     
  • BTC-USD

    40,204.93
    +124.13 (+0.31%)
     
  • CMC Crypto 200

    941.55
    +11.62 (+1.25%)
     
  • FTSE 100

    7,081.09
    +64.46 (+0.92%)
     
  • Nikkei 225

    27,782.42
    +200.76 (+0.73%)
     

Is Celestica (CLS) Stock Undervalued Right Now?

·3 min read

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Celestica (CLS). CLS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.16. This compares to its industry's average Forward P/E of 13.11. Over the past year, CLS's Forward P/E has been as high as 16.31 and as low as 3.61, with a median of 10.09.

CLS is also sporting a PEG ratio of 0.90. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CLS's industry currently sports an average PEG of 1.04. CLS's PEG has been as high as 7.66 and as low as 0.63, with a median of 4.56, all within the past year.

We should also highlight that CLS has a P/B ratio of 0.80. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.79. CLS's P/B has been as high as 0.87 and as low as 0.27, with a median of 0.66, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CLS has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.29.

Value investors will likely look at more than just these metrics, but the above data helps show that Celestica is likely undervalued currently. And when considering the strength of its earnings outlook, CLS sticks out at as one of the market's strongest value stocks.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Celestica, Inc. (CLS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research