CLS

Celestica, Inc. CLS is scheduled to report third-quarter 2026 earnings on Oct 26. The Zacks Consensus Estimate for sales and earnings is pegged at $5.4 billion and $3.01 per share, respectively. Earnings estimates for CLS have remained unchanged over the past 60 days. Image Source: Zacks Investment Research This leading electronics manufacturing services firm has had a solid earnings surprise history in the trailing four quarters, exceeding earnings expectations on most occasions. It delivered a four-quarter earnings surprise of 7.7%, on average. Image Source: Zacks Investment Research Our proven model does not predict an earnings beat for Celestica for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Celestica currently has an ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here. Celestica is expected to benefit from continued investments in AI infrastructure, hyperscale customers expand data center capacity. The company's Connectivity & Cloud Solutions (CCS) segment is likely to remain the primary growth driver, supported by demand for networking equipment, AI computing platforms, servers and storage systems. Networking demand is expected to receive additional support from the continued ramp-up of 800G Ethernet switches and the beginning of mass production for 1.6-terabit (1.6T) networking programs with two hyperscaler customers. Celestica also expects its established 400G programs to maintain momentum. For the third quarter, management anticipates approximately 60% growth in communications revenue, reflecting sustained investments in high-performance data center connectivity. The enterprise business is another important contributor. Continued growth in hyperscaler AI and machine-learning computing programs, alongside improving demand for storage solutions is set to drive growth. However, the Electronics - Manufacturing Services industry is highly competitive. Celestica faces stiff competition from industry giants like Foxconn, Jabil, Flex Ltd. and Sanmina Corporation. Several smaller companies operating at a regional level also intensify competition. The highly cyclical nature of several sub sectors also remain a concern. Over the past year, CLS has gained 12.4% compared with the industry's growth of 26.8%. It has underperformed its peers like Jabil Inc. JBL and Sanmina Corporation SANM over this period. Sanmina has gained 35.2%, and Jabil is up 41.4% over this period. Image Source: Zacks Investment Research From a valuation standpoint, Celestica appears to be trading at a premium relative to the industry and is trading above its mean. Going by the price/earnings ratio, the company's shares currently trade at 17.37 forward earnings, higher than 17.2 for the industry but lower than the stock's mean of 32.59. Image Source: Zacks Investment Research The ongoing expansion of AI infrastructure provides Celestica with a significant growth opportunity. Its exposure to high-speed networking, AI computing and storage platforms positions the company to benefit from rising data center investment. The transition toward higher-speed networking, including 800G and 1.6T solutions, could provide additional avenues for growth as hyperscalers upgrade their infrastructure. However, investors should also consider the execution challenges associated with this rapid expansion. Celestica is investing heavily in additional capacity, with full-year 2026 capital expenditures expected to be approximately $1 billion. Its ability to manage component availability, production schedules and working capital will be crucial to maintaining profitability and generating cash flow. Customer concentration is another consideration: three customers each accounted for at least 10% of total revenue in the second quarter, making results sensitive to spending decisions by major customers. Celestica's third-quarter results are expected to reflect continued demand for AI infrastructure, expanding high-speed networking programs and improving contributions from ATS. The company's raised full-year outlook and expectations for accelerated revenue growth in 2027 provide a positive longer-term backdrop. Nevertheless, investors should assess whether strong sales growth is accompanied by sustained margin expansion and healthy cash generation. CLS maintains a balanced outlook, with existing investors advised to hold their positions while prospective investors may consider waiting for a more attractive entry point. 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 Jabil, Inc. (JBL) : Free Stock Analysis Report Sanmina Corporation (SANM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Shares of Sanmina (SANM) have returned 68% over the past twelve months, easily outpacing the 17.0% return of the S&P 500. Share repurchases may be part of the case for owning the electronics manufacturer, given that the company operates with about 7% fewer shares than it had three years ago. Yet Sanmina bought back no shares in its latest reported quarter. So how much more does each share earn after three years of buybacks? Sanmina's Flat Profit Is Split Among Fewer Shares Net income at Sanmina grew just 0.2% a year over the last three years, but earnings per share advanced 2.2% a year during the same period. A declining share count explains the difference: a nearly static pool of profit is being divided among fewer shares. That reduction has not been a straight line. The share count fell about 7.6% over the first two of those years, then rose 0.5% over the last twelve months. The latest rise came even though Sanmina's buybacks exceeded the stock it issued as pay by $150 million, or 1.3% of its market value, because the company also issued shares as part of its ZT Systems acquisition. Sanmina's Factories Produce More Cash Than Repurchases Use Sanmina pays for its buybacks with the cash left over from contract electronics manufacturing for other companies, but the profit margins on that work are thin. The company operates with an operating margin of 5.5%, against the 18.5% margin for the S&P 500. Maintaining operations also requires holding significant parts and products on hand, and inventory equals 24.7% of revenue. Since Sanmina owes its suppliers 0.8 times that inventory, existing supplier credit does not cover the full stockpile. Even so, the cash has been more than enough. Sanmina pays no dividend, and its free cash flow over the last twelve months amounted to 2.48 times what the company spent on buybacks. One part of Sanmina's business is also expanding rapidly, helped by an acquisition. Sales to communications networks, cloud and AI infrastructure customers rose 173.2% from a year earlier in fiscal Q3 2026, with the acquired ZT Systems business contributing $1.1 billion in the quarter. Sanmina Has Cash But Skipped Fiscal Q3 Repurchases Debt is not holding the company back. Net debt sits at just 0.5 times EBITDA, and operating profit covers interest expenses 7.4 times over. Yet during the fiscal Q3 2026 call, management said it had not repurchased any shares in the quarter, and about $600 million was still available under the current buyback program. Management expects working capital to rise ahead of anticipated growth in its core business and its ZT Systems business, and said this will affect cash flow from operations. On the same call, executives raised the fiscal 2026 revenue forecast to $14.15 billion at the midpoint, up from a previous projection of $14.0 billion. Investors will be watching when Sanmina reports its fiscal Q4 2026 results next. A second straight quarter with no repurchases would show that the company is putting its cash into growth before buybacks. How To Act On SANM? Now you know SANM better. And that's our purpose: to make you informed before you invest your money. However, making a bet on a single stock carries its own risks. There is a smarter choice. Since its inception, the Trefis High Quality (HQ) Portfolio has beaten the benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000. And it did so without taking the concentrated risk that comes with do-it-yourself stock picking. If you'd rather act on SANM itself: Play Offense | Play Defense Learn More About SANM & Invest | Save Taxes On Capital Gains Earn From SANM Cash Secured Puts | Covered Call Against SANM See Your Next Steps On SANM

Global trade bodies now link a sharp pickup in merchandise trade by 2026 to heavy investment in AI infrastructure, which includes the kind of fast growing Canadian businesses investors screen for when hunting future leaders. That creates a window where high growth potential could matter more than ever. This article highlights three stocks from this growth focused Canadian screener that analysts currently view as having especially strong potential. The three stocks below are only a small sample from this high growth potential idea. The full screen surfaced 15 more Canadian companies with equally compelling stories that are not covered here. To identify and analyze the highest conviction setups from this broader group, go straight to the Best high growth potential screener. Overview: Celestica provides design, manufacturing, and supply chain services for technology customers, with a major focus on AI ready data center and cloud hardware. Operations: Celestica generates about US$3.3b from Advanced Technology Solutions and about US$12.3b from Connectivity and Cloud Solutions. Market Cap: CA$60.9b Celestica plugs directly into the screener's high growth theme through its work building AI focused cloud and data center hardware, which is where some of the most aggressive investment in tech infrastructure is currently concentrated. "Accelerated demand for advanced networking and AI infrastructure by hyperscaler customers is driving rapid growth in Celestica's CCS segment, with multiple new 800G and upcoming 1.6T program ramps, supporting robust revenue expansion and greater operating leverage over the next 12 to 24 months." The real swing factor for Celestica is how resilient profitability stays if one powerful customer concentration pressure starts to bite. If that customer risk is what you keep circling back to, read the full narrative for Celestica to see how Celestica's AI build out could still accelerate the story. Overview: LunR Royalties is a Vancouver based royalty and streaming company that collects copper, gold, and silver linked payments from large mining projects. Market Cap: CA$2.1b LunR Royalties provides exposure to the Best high growth potential theme through forecast earnings growth of about 66.94% a year and project linked royalties on Los Helados, Fruta del Norte, and Lunahuasi that are tied to future production ramps. Whether that potential translates into durable cashflow depends on what happens when those cornerstone assets reach their next development milestones. Those turning points are exactly what many investors want to stress test with the 1 key reward and 2 important warning signs (1 is major!), before LunR Royalties' royalty stream either scales smoothly or hits friction. Overview: Fortuna Mining operates gold focused mines at Lindero and Séguéla alongside silver, lead, zinc, and exploration assets across Latin America and West Africa. Operations: Fortuna Mining generates about $680 million from Sango, $357 million from Mansfield, and $145 million from Bateas, reflecting a broad geographic footprint. Market Cap: CA$4.3b Fortuna Mining provides direct exposure to the screener theme through Lindero and Séguéla, which are central to current revenue and earnings forecasts that indicate 23% annual top line growth and 27.7% earnings expansion over the next 3 years. The key variable is how efficiently Séguéla's expansion converts higher planned output into lasting cash flow, particularly if one unseen pressure on future returns intensifies. That unseen pressure on future returns is exactly what the 5 key rewards and 1 important warning sign unpacks, so you can see where Fortuna Mining's upside and risk really diverge. Fresh momentum rarely stays quiet for long. Screen curated ideas before the crowd catches the next breakout, while the data still matters and sentiment has not fully caught up. Act now. - Spot cash generative AI leaders early and track the ones already building real profits through the 35 profitable AI stocks that aren't just burning cash before sentiment fully prices in their momentum. - Lock in potential income streams from companies screened as 3 dividend fortresses while yields remain elevated and prices have not yet fully reflected their strength. - Hunt for resilient balance sheets and disciplined operators using the curated list of solid balance sheet and fundamentals (7 results) before fresh money crowds into the same dependable ideas. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Jabil Inc. JBL enters fiscal 2027 with a stronger growth profile after delivering a solid fourth quarter and issuing an upbeat outlook. In the fourth quarter, revenue rose to $10.6 billion from $8.3 billion, while core EPS climbed to $4.4 from $3.29. Management expects this upward trajectory will likely continue in coming quarters. The company projected fiscal 2027 revenue of $44.5 billion, representing 24% growth, alongside a 30-basis-point expansion in core operating margin to 6.1%. Core EPS is projected to increase 34% to $17.55. Image Source: Zacks Investment Research AI infrastructure has become the most important growth engine for Jabil. AI-related opportunity goes beyond traditional server manufacturing and extends across compute, networking, power and cooling components in data centers. Its exposure to AI is not limited to hyperscale data centers. Its capital equipment business is expected to reach $4.2 billion in fiscal 2027, up 40% year over year. Strong demand for automated testing and an anticipated improvement in the wafer-fabrication equipment market are expected to be key contributors. Networking and communications are becoming another important contributor to the AI infrastructure opportunity. Jabil expects this business to generate $3.9 billion in fiscal 2027 revenues, up 15% year over year. The company is seeing advanced networking program expansion in India, alongside demand for high-speed interconnects and optics. Jabil is benefiting from strong demand trends in the healthcare and packaging business. The company expects to manufacture more than 700 million injectors and delivery pens during fiscal 2027. It is expected to generate $5.6 billion in fiscal 2027 revenues, up 6%. Renewable and energy infrastructure revenue is expected to rise 7% to $3 billion in fiscal 2027. Commercial energy projects, energy storage and utility and grid-scale power capabilities are the major drivers in this business. Jabil is also positioned to benefit from structural changes in the automotive industry. Auto and transportation revenue is expected to increase 9% to $5 billion in fiscal 2027. JBL's broad capabilities in automotive allow it to venture across evolving vehicle architectures rather than relying exclusively on legacy internal-combustion programs. Warehouse automation, retail automation and robotics also remain a major growth driver. Jabil's worldwide manufacturing footprint and connected factory network provide meaningful scale advantages. The company continues to expand capacity in North Carolina, Memphis, India and other locations while maintaining an asset-light model. Ongoing investments in AI, automation and disciplined working capital management improve productivity, support customer ramps and strengthen long-term operating margins without materially increasing capital intensity. Jabil has gained 50.5% in a year compared with the Electronic Manufacturing Services industry's growth of 64.5%. It has outperformed the Zacks Computer & Technology sector and the S&P 500's growth during this period. Image Source: Zacks Investment Research Among its competitors, the company has underperformed Flex Ltd. FLEX and Celestica, Inc. CLS. Celestica has increased 64.5%, while Flex has gained 103.5%. Earnings estimates for Jabil for 2026 and 2027 have remained unchanged over the past 60 days. Image Source: Zacks Investment Research From a valuation standpoint, JBL appears to be relatively more premium than the industry but below its mean. Going by the price/earnings ratio, the company's shares currently trade at 17.5 forward earnings, lower than 20.2 for the industry and its mean of 21.5. Image Source: Zacks Investment Research Jabil's focus on end-market and product diversification remains a key long-term catalyst. Management continues to target a balanced portfolio so that no individual product or product family becomes an outsized contributor to operating income or cash flow. This strategy improves the stability of earnings through industry cycles while allowing the company to capture opportunities across AI infrastructure, healthcare, industrial and automation markets. Its diverse portfolio and global manufacturing footprint boost its competitive edge against its peers such as Flex, Celestica and Sanmina. Jabil now carries a Zacks Rank #2 (Buy) and a VGM Style Score of A, strengthening its near-term setup. The stock has a Growth Score of B, reflecting its strong earnings and sales growth outlook, while the Momentum Score has improved to A, indicating a more favorable recent price and trading profile. The Value Score of B also suggests a reasonably attractive valuation relative to key benchmarks. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Jabil, Inc. (JBL) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Along with Micron Technology MU), electronics manufacturer Jabil JBL) was a tech highlight of this week's earnings lineup, delivering impressive fiscal fourth-quarter results as booming demand for artificial intelligence infrastructure continues to fuel rapid growth. Adding to the appeal, Jabil's Zacks Electronics-Manufacturing Services Industry currently ranks in the top 11% of more than 240 Zacks industries, highlighting a favorable backdrop for the company and its peers. That said, let's take a look at Jabil's Q4 results and guidance, along with its valuation, to see if now is still a good time to buy JBL or if much of the upside is already priced into the stock. Jabil posted Q4 adjusted earnings of $4.40 per share, up roughly 34% from $3.29 a year ago and 8% above the Zacks EPS Consensus of $4.06. Revenue climbed 28.6% year over year to $10.62 billion, comfortably surpassing expectations of $9.62 billion by nearly 10%. The standout was Jabil's Intelligent Infrastructure business, where revenue surged 56% to approximately $5.8 billion as AI-related demand accelerated beyond management's already-strong expectations. Jabil also benefited from better-than-expected performance in automotive and transportation, as well as renewable and energy infrastructure products, broadening Q4 strength beyond AI alone. Image Source: Zacks Investment Research Management expects the momentum to continue in fiscal 2027, projecting revenue to increase 24% to $44.5 billion, while adjusted EPS is forecast to jump 34% to $17.55. Jabil also expects its core operating margin to expand 30 basis points to 6.1%. This comes as Jabil's expanding AI and data-center exposure is placing it alongside electronics manufacturing leaders such as Celestica CLS) and Sanmina SANM), which are competing for many of the same advanced electronics and infrastructure manufacturing opportunities. Year to date, Jabil stock is up 30%, roughly on par with its Zacks Electronics-Manufacturing Services Industry and ahead of the S&P 500 and Nasdaq's gains of 11% and 16%, respectively. Despite outperforming the broader stock market indexes over the last two years as well, JBL's 150% return has trailed its Zacks industry's 251% gain, with Sanmina stock up more than 230% during this period and Celestica shares skyrocketing over 600%. Image Source: Zacks Investment Research At current levels, JBL is trading at a reasonable 19X forward earnings multiple, offering a modest discount to the S&P 500's 21X and its Zacks industry average of 24X. JBL's strong earnings outlook for FY27 certainly adds to the appeal, with Celestica shares trading at a much richer 32X forward earnings, although Sanmina stands out at just 15X. Image Source: Zacks Investment Research Jabil's Q4 results reinforced its compelling growth story, with AI infrastructure supporting accelerating revenue and earnings growth. Still, investors may not need to aggressively chase JBL following its substantial run over the last year. For now, Jabil stock lands a Zacks Rank #3 (Hold), suggesting better buying opportunities could still be ahead. 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 Jabil, Inc. (JBL) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report Sanmina Corporation (SANM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Jabil (JBL) came out with quarterly earnings of $4.4 per share, beating the Zacks Consensus Estimate of $4.06 per share. This compares to earnings of $3.29 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.37%. A quarter ago, it was expected that this electronics manufacturer would post earnings of $3.12 per share when it actually produced earnings of $3.16, delivering a surprise of +1.28%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Jabil, which belongs to the Zacks Electronics - Manufacturing Services industry, posted revenues of $10.62 billion for the quarter ended August 2026, surpassing the Zacks Consensus Estimate by 9.91%. This compares to year-ago revenues of $8.25 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Jabil shares have added about 39.8% since the beginning of the year versus the S&P 500's gain of 12.1%. While Jabil has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Jabil was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.69 on $9.89 billion in revenues for the coming quarter and $16.74 on $42.23 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Manufacturing Services is currently in the top 9% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Celestica (CLS), another stock in the same industry, has yet to report results for the quarter ended September 2026. This electronics manufacturing services company is expected to post quarterly earnings of $3.01 per share in its upcoming report, which represents a year-over-year change of +90.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Celestica's revenues are expected to be $5.4 billion, up 69.1% from the year-ago quarter. 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 Jabil, Inc. (JBL) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Jabil, Inc. JBL is scheduled to report fourth-quarter fiscal 2026 earnings on Sept. 30. The Zacks Consensus Estimate for sales and earnings is pegged at $9.61 billion and $4.05 per share, respectively. Earnings estimates for JBL in 2026 have remained unchanged over the past 60 days, while for 2027 it has moved upward. Image Source: Zacks Investment Research The leading electronics manufacturing services firm has had a solid earnings surprise history in the trailing four quarters, exceeding earnings expectations on all occasions. It delivered a four-quarter earnings surprise of 5.88%, on average. Image Source: Zacks Investment Research Our proven model does not conclusively predict an earnings beat for Jabil for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Jabil currently has an ESP of 0.00% with a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here. During the quarter, Jabil announced several initiatives that could support its long-term growth. The company expanded its manufacturing footprint in India by opening a new facility in Pune. The move increased its India manufacturing footprint from 500,000 square feet to 1.2 million square feet over the past year. The expanded facility will boost Jabil's capability to serve several industries such as telecommunications, AI cloud data centers, automotive and digital commerce in India. The company announced an intent to form a strategic alliance with Adani Enterprises to build a vertically integrated AI and data center infrastructure manufacturing platform in India. The planned platform would cover high-density liquid-cooled AI racks, servers, storage, networking systems and other power and thermal-management equipment. In the quarter under review, Jabil opened a 417,000-square-foot intelligent logistics hub in Penang, Malaysia, designed to improve inventory management, traceability and material flow through AI-enabled systems, automated storage and retrieval, and robotics. The facility supports Jabil's efforts to scale its operations while improving supply-chain efficiency. These factors bode well for sustainable growth. However, weakness in consumer-centric products is expected to hinder growth in the Connected Living & Digital Commerce segment. Revenues from Connected Living & Digital Commerce are projected to remain flat at $1.39 billion compared to $1.38 billion in the year-ago quarter. In the fourth quarter, per the Zacks Consensus Estimate, revenues in the Regulated Industries are pegged at $3.31 billion, indicating growth from $3.12 billion a year ago quarter. Revenues from the Intelligent Infrastructure segment for the fourth quarter are pegged at $4.91 billion, indicating growth from $3.74 billion. Over the past year, JBL has surged 47.6% compared with the industry's growth of 56.5%. It has underperformed its peers, Flex Ltd. FLEX and Celestica Inc. CLS. Flex has gained 99.2%, while Celestica has surged 48.5% during this period. Image Source: Zacks Investment Research From a valuation standpoint, Jabil appears to be trading at a discount relative to the industry. Going by the price/earnings ratio, the company's shares currently trade at 18.67 forward earnings, lower than 19.99 for the industry and its mean of 21.53. Image Source: Zacks Investment Research Jabil's management expects fiscal 2026 AI-related revenues of approximately $13.6 billion, up from $9 billion in fiscal 2025. The company is expected to benefit from strength in the Intelligent Infrastructure business backed by strong demand from AI infrastructure, cloud and data centers, capital equipment and networking. In the AI infrastructure space, the company faces competition from other electronics manufacturing services companies such as Celestica, Flex and Sanmina. The company also benefits from a broad manufacturing and engineering footprint. JBL is adding capacity in India, North Carolina, Memphis and other locations to support customer ramps. Its expansion in Pune and the new logistics hub in Penang further strengthen its manufacturing and supply-chain capabilities. At the same time, the business remains exposed to uneven demand. Connected Living & Digital Commerce is expected to remain broadly flat in the fourth quarter, reflecting a mixed consumer environment. Management has also remained cautious regarding its automotive business. Jabil continues to benefit from sustained demand in AI data center infrastructure, capital equipment and warehouse automation. The company's worldwide manufacturing footprint and connected factory network provide meaningful scale advantages. Strong free cash flow growth underscores efficient capital management. Jabil's diversified business and growing AI exposure are helping support a more consistent earnings trajectory. Its diverse end market presence also protects the company from cyclicality and weakness in some sectors. Owing to these factors, with a favorable valuation and a Zacks Rank 2, Jabil is a good investment option at present. 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 Jabil, Inc. (JBL) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bond market volatility has pushed government yields in major economies to multi year highs, which keeps borrowing costs in focus for every sector. At the same time, the physical plumbing of artificial intelligence is still being built out, from power hungry data centers to high grade connectivity. This creates a targeted way for you to focus on AI’s “picks and shovels.” This article highlights three stocks from that infrastructure theme. The three stocks in this article are just a starting sample. The full screen surfaced 52 more AI infrastructure companies with equally compelling narratives that are not covered here. If you want to rapidly identify and analyze your own high conviction plays across this theme, head straight into the AI Infrastructure Stocks screener. Western Digital is a global data storage company that develops and sells hard disk drives and related solutions used in everything from PCs to hyperscale data centers. Its business is highly focused on HDDs, which generated about US$12.9b in revenue, and within that, the data center drives and platforms segment is the clearest link to AI infrastructure because it supplies the high capacity storage that keeps AI training data and models online. The company sells across the United States, China, Hong Kong, the rest of Asia, and Europe, the Middle East and Africa, and is currently valued at around US$162.4b. For investors who want exposure to AI’s physical build out rather than just software stories, Western Digital offers a direct line into the storage racks of hyperscale data centers. The company is heavily tied to high capacity HDDs for AI data stores and has been reporting strong margins and free cash flow, which gives it room to invest in next generation products such as 40TB plus drives while returning capital through buybacks and dividends. The catch is that this is still a cyclical hardware market where a few big players control supply, and any break in discipline or a shift in the AI capex cycle could quickly pressure pricing and profitability. The key issue is how long Western Digital can keep that balance of tight supply, long term AI contracts and high margins working in its favor. Western Digital’s high margin HDD cash flows may be masking a more complex story involving AI data center exposure and capital returns. Get the full picture in the 4 key rewards and 2 important warning signs (1 is major!) Celestica is a Toronto based supply chain and electronics manufacturing company that builds complex hardware for sectors ranging from aerospace and industrials to cloud and enterprise computing. Its clearest link to the AI infrastructure theme sits in the Connectivity & Cloud Solutions segment, which generates about US$12.3b in revenue and includes rack scale platforms and server systems for hyperscalers, plus the Helios rack scale AI platform developed with AMD. The Advanced Technology Solutions arm adds roughly US$3.3b from end markets like aerospace and HealthTech, and the company as a whole is valued at about CA$47.8b. Celestica gives you exposure to the physical build out of AI data centers, with its Connectivity & Cloud Solutions segment designing and assembling the high density racks, switching gear and Helios AI platforms that hyperscalers are buying today. Analysts and recent UBS commentary link this to earnings and revenue momentum, supported by improving margins and high returns on equity as larger AI programs scale through its factories. The trade off is heavy exposure to a small group of powerful cloud customers and to rapid technology shifts such as the move to 800G and 1.6T networking, which can amplify both upside and execution risk. For investors looking at hardware suppliers tied to AI infrastructure spending, Celestica is a story that may warrant closer attention. Celestica’s AI rack and Helios momentum has many investors focusing on growth; yet the real story may be how that flows through earnings resilience. Get the analyst forecasts for Celestica and see what could shift next Vertiv Holdings Co builds the hardware that keeps high power data centers running, with a particular focus on liquid and air cooled thermal management systems and high density power distribution that are used to cool and feed energy to AI GPU racks. It generates most of its roughly US$9.5b in segment revenue from the Americas at about US$7.5b, with Asia Pacific at about US$2.7b and Europe, the Middle East and Africa at about US$2.4b, and has a market value of about US$99.6b. Vertiv may be of interest if you want exposure to the physical side of AI, where demand for liquid cooling and high density power gear is directly related to how many GPU racks hyperscalers deploy. The company combines this with lifecycle services and monitoring software, which can deepen customer relationships and support margins as AI capacity expands. The catch is that the stock already trades on a rich valuation and a handful of large cloud and data center customers drive a large share of orders, so any pause in AI capital expenditure or competitive pressure in cooling and power solutions could affect sentiment quickly. Vertiv’s surge into liquid cooling and high density power has many investors focused on AI excitement, while the rich valuation raises questions. Get the analyst forecasts for Vertiv Holdings Co and see whether the current enthusiasm is hiding something bigger. Fresh ideas do not stay under the radar for long. While momentum builds and breakouts form, the clean entry points get caught quickly. Check these themes and consider acting while conditions remain favorable. Spot cash rich companies before they start flying by scanning the 50 high quality undervalued stocks, curated for quality balance sheets and earnings power while it still matters. Ride structural growth trends with the 38 robotics and automation stocks, where automation leaders are quietly building momentum while most attention is fixed on headline AI stocks. Get ahead of the next infrastructure wave with the 39 power grid technology and infrastructure stocks, focused on companies tied to grid upgrades that support AI, electrification and data center expansion. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Earnings estimates for Celestica Inc. CLS for fiscal 2026 and fiscal 2027 have moved up 11.42% to $11.32 and 30.21% to $19.01, respectively, over the past 60 days. The positive estimate revision depicts bullish sentiments about the stock’s growth potential. Image Source: Zacks Investment Research The proliferation of AI-based applications is expanding demand for Celestica's data communications and information processing infrastructure. In the second quarter of 2026, Enterprise revenues rose 167%, driven by the accelerated ramp of a hyperscaler AI/ML compute program, while 800G switching continued to scale. The company expects mass production of 1.6T programs with two hyperscalers to begin in the third quarter of 2026, with 10 active programs expected to ramp through 2027.The company will manufacture advanced AI racks developed in collaboration with Broadcom to support OpenAI's custom accelerator roadmap. Initial deliveries are expected later in 2026, with mass production scheduled for 2027.AMD is broadening its AI infrastructure offerings with the planned Helios platform. Celestica is playing an important role as a design and manufacturing partner for the platform. Celestica’s comprehensive portfolio spanning communications, cloud, aerospace and defense, industrial and healthcare markets strengthens its business model by making it less vulnerable to downturn in any single market. Its strong focus on product diversification and high-value markets is supported by R&D, engineering and advanced manufacturing capabilities. This allows the company to maintain its competitive edge in a highly competitive electronics manufacturing services industry where it faces competition from major players such as Jabil, Inc. JBL, Sanmina Corporation SANM and Flex. Cash provided by operating activities increased to $410.9 million from $152.4 million in the year-ago quarter, supported by stronger earnings despite higher working capital requirements tied to rapid growth. Free cash flow was $147.1 million, up 22.7% year over year.As of the second quarter of 2026, Celestica’s current ratio stands at 1.23. A current ratio more than 1 implies that the company is well positioned to pay off its short-term debt obligations. Celestica shares have declined 1% in the past year against the Electronics - Manufacturing Services industry’s growth of 20.3%. The stock has underperformed the Zacks Computer & Technology sector and the S&P 500 during the same time frame. Image Source: Zacks Investment Research The company has underperformed its peers like Jabil and Sanmina. Shares of Jabil have jumped 31.2%, and shares of Sanmina have risen 24.9%. From a valuation standpoint, CLS is currently trading at a discount compared to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 17.75 forward 12-month earnings, lower than 18.08 for the industry. Image Source: Zacks Investment Research CLS is witnessing solid momentum across several end markets backed by its robust portfolio. Growing investments in AI infrastructure are driving expansion of Celestica's AI compute business. CLS expects AI-related demand to remain a significant contributor to growth in the coming quarter. The company’s strong liquidity better positions it to navigate economic downturns and capitalize on emerging growth opportunities. Celestica’s expanding client base and growing collaboration with tech giants such as Broadcom, AMD and OpenAI bring a multi-billion-dollar revenue-generating opportunity in the next several years. Hence, with a Zacks Rank #1 (Strong Buy), Celestica appears to be a good investment option at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 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 Jabil, Inc. (JBL) : Free Stock Analysis Report Sanmina Corporation (SANM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research