Q: Hi,
I am interested in starting positions in CLS, ZDC and GRID. Do you think their current prices are a good entry point? And for CLS, I see they are expected to report earnings at the end of the month. Would it be wise to wait for that?
Thanks
I am interested in starting positions in CLS, ZDC and GRID. Do you think their current prices are a good entry point? And for CLS, I see they are expected to report earnings at the end of the month. Would it be wise to wait for that?
Thanks
5i Research Answer:
CLS' price has been consolidating since November, and its upcoming earnings could be a major catalyst for its price deciding on a direction to break out of this consolidation. In general, we think the AI theme is still ongoing, we believe hardware names like CLS can continue to partcipate. We would be comfortable buying some here, but also waiting to establish a full position until earnings.
We like GRIDs recent momentum, and we would be comfortable buying here. ZDC we think can bounce back from its recent decline, but it is expensive and there may be more consolidation needed here. We continue to like all three names for a long-term holding.