Investors who focus on Alphabet (GOOG) and Microsoft (MSFT) will miss the tremendously better opportunities post-earnings. Celestica (CLS), which beat expectations and raised its Q1 outlook, is one of two stocks to watch today. Its peer, Sanmina (SANM) gained 28.2% after posting results on Jan. 29.
Celestica is an electronics manufacturer that still offers investors stellar valuation. The firm posted 76 cents in non-GAAP earnings per share. Its revenue rose by 4.9% Y/Y to $2.14 billion. Most importantly, it raised its Q1/2024 guidance. Celestica expects revenue as high as $2.175 billion.
Sanmina posted revenue of $1.76 billion, down by 20.8% Y/Y. After earnings of $1.30 in the first quarter, it expects to earn between $0.95 to $1.05 a share in the second quarter. These lackluster results suggest that the stock could fall. On its conference call, the firm mentioned AI (artificial intelligence) just four times. It said it could build its cloud business around AI and machine learning.
Customers need to upgrade their cloud networks to meet AI traffic needs.
In the value sector, Chubb’s (CB) Q4 earnings beat justifies more upside from here. The insurance company reported consolidated net premiums of $11.6 billion, down from $13.1 billion in Q3. Investors will bid the stock higher after Chubb grew its property and casualty premium growth. P&C catastrophe losses fell to $300 million, compared to $670 million in Q3.
