From a technical perspective, Celestica (CLS) is looking like an interesting pick, as it just reached a key level of support. CLS recently overtook the 50-day moving average, and this suggests a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
CLS has rallied 28.9% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests CLS could be on the verge of another move higher.
The bullish case only gets stronger once investors take into account CLS's positive earnings estimate revisions. There have been 3 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors may want to watch CLS for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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Celestica, Inc. (CLS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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