Market swings can knock hefty gains from even the best stocks. But those swings are psychological barometers that may have little do with the stock's inherent traits. Just take the example of Celestica stock.
Last Monday, DeepSeek left several tech titans severely damaged after the China startup burst into the artificial intelligence scene with an AI model that was more efficient because it used older chips made by Nvidia. But a handful of stocks holding a strong fundamental outlook have recovered and made up for the loss.
Investor's Business Daily's stock screen for stocks with rising profit estimates shows four stocks where analysts are bullish. Data center and AI leader Celestica stands out as a stock that suffered from the DeepSeek-incited carnage but has risen after its strong performance in the fourth quarter.
Celstica stock also has returned to the top of the IBD 50 list — the elite group of stocks with top-notch fundamentals and superior market performance. That is all the more notable since Celestica stock got axed from the top spot on the IBD 50 list last week after its 28% plunge on Jan. 27.
Celestica Stock Rises on Two Counts
Celestica reported fourth-quarter results Wednesday — two days after the DeepSeek meltdown. Sales grew 19% to $2.55 billion while earnings per share of $1.11 surged 44% from the prior year. The company raised its 2025 sales outlook to $10.7 billion from its previous forecast for $10.4 billion. Analysts polled by FactSet see earnings rising 24% in 2025 to $4.83 per share and 21% in 2026 to $5.86 per share.
The stock gapped up on Thursday and hit an all-time high of 133.67 on Friday.
Celestica holds a Composite Rating of 98 and a best-possible EPS Rating of 99 from Investor's Business Daily. Shares have outperformed 98% of other stocks in the IBD database over the past 52 weeks. Mutual funds have been adding to their holdings in droves over the past 13 weeks, going by Celestica's strong Accumulation/Distribution Rating of A+. More funds have been net buyers of the stock over the past seven quarters as well.
Celestica makes products such as switches, storage products and processors that address network, storage and computing needs in data centers.
Also On The Rise: Walmart, Axon, GoDaddy
Other stocks with rising profit estimates include Dow Jones component Walmart, taser and security cameras maker Axon and website hosting services provider GoDaddy.
GoDaddy stock is in a buy zone from an entry point of 211.11 with fourth-quarter earnings due Feb. 13. Walmart stock also sits in a buy range that goes up to 100.99. Earnings are due on Feb. 20. Finally, Axon stock is building a cup base with a buy point of 698.67.
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