After the jump in price tonight do you still consider it cheap?
With thanks
Sheldon
CLS can be considered 'relatively' cheap vs other sector companies. But its P/E is moving up, now in the 35X range. Earnings are also moving up nicely, but it certainly is not as cheap as it was. Still, fundamentals accelerated in the recent quarter, and the outlook indicates the sector has legs. EPS of $1.39 beat estimates of $1.23. Revenue of $2.89B beat estimates of $2.66B. EBITDA of $260M beat estimates by 14%. Revenue rose 21%. Yearly revenue forecast was boosted to $11.55B from $10.85B. EPS to $5.50 from $5.00. The move in the stock was very close to the 10% in earnings expectations. As we have seen in other quarters, the company also tends to be a bit conservative in its forecasts, so these numbers will likely be higher as the quarters tick by this year. Cash flow is solid, the balance sheet is very strong and consensus calls for at least 20% growth in 2026 as well. We remain very comfortable here.