Q: Celestica's stock was at $497 last November. Six months later, it's at $495. Meanwhile, it seems the entire semiconductor industry has exploded upward, along with everything associated with it, including cloud, memory, and AI. Do you have an explanation as to why CLS has been stuck in idle?
5i Research Answer:
We might not be so harsh on a stock up 219% in a year and still up 22% YTD. While it certainly has semi and datacentre exposure, it does have other customers which are not as sexy. The last quarter was decent but not spectacular. Investors these days are looking more or less for perfection. It still has 24 BUY analysts, 2 HOLDs and no SELLs. Stocks do not go straight up, especially after big gains.