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CLS vs FN
Which Stock Would AI Choose? Celestica (CLS) vs. Fabrinet (FN) Stock Comparison
Key Takeaways
- Two AI-linked manufacturers, one shared pressure point. Both CLS and FN are contract manufacturers riding AI infrastructure demand, and both have sold off sharply in recent weeks as the broader "AI trade" cooled.
- Different roles in the AI supply chain. Celestica focuses on servers, storage, and networking hardware for hyperscalers, while Fabrinet specializes in optical packaging and precision manufacturing for data-center optics.
- Revenue momentum remains strong at both. Each company has posted or guided to double-digit revenue growth, yet investor sentiment has shifted toward concerns about margins, capital spending, and customer concentration.
- Valuations have compressed. Both stocks have re-rated meaningfully lower from their highs, bringing forward earnings multiples closer to levels that some analysts now describe as more reasonable.
- Concentration is a shared risk. Celestica derives a large share of revenue from a few hyperscaler clients, while Fabrinet is closely tied to customers such as Cisco and NVIDIA.
- For deeper coverage, explore CLS Major News and CLS Today's Price Move, as well as FN Major News and FN Today's Price Move, for the latest developments on each ticker.
- To see how automated strategies are currently positioned across these and other tickers, explore the Trending AI Robots page.
Introduction
Celestica (CLS) and Fabrinet (FN) are two of the most closely watched manufacturing names tied to artificial intelligence (AI) infrastructure. Although both operate in the electronics manufacturing services (EMS) space, they occupy different links in the AI value chain. This stock comparison is relevant for investors and traders seeking exposure to the hardware buildout behind data centers, but who want to understand how differing business models, customer bases, and margin profiles shape relative performance. With both equities experiencing pronounced volatility in recent weeks, a side-by-side look at their fundamentals, momentum, and risk factors can help clarify their market positioning.
CLS Overview and Recent Performance
Celestica is a Canadian electronics manufacturing and supply-chain services company that assembles servers, storage, compute, and networking equipment for some of the world's largest hyperscale cloud providers. A substantial portion of its revenue—roughly 63%—is concentrated among a small number of major customers, including large technology platforms. This deep exposure has made CLS one of the fastest-growing beneficiaries of the AI data-center buildout, with revenue and earnings expanding at a rapid pace in recent quarters.
In recent market activity, however, the stock has pulled back sharply. After trading near a 52-week high around $474, shares declined roughly 45% to the $260 area, underperforming the broader market as investors rotated away from high-multiple AI names. The selloff occurred even as the company's fundamentals improved, with full-year revenue guidance raised toward $20.5 billion and adjusted earnings expectations lifted. A roughly $3 billion equity offering completed in August also introduced share dilution and weighed on sentiment. The result has been a notable compression in the stock's forward price-to-earnings (P/E) ratio, from the low 40s to around 23 times forward earnings, even as the company's operating margins remain relatively thin by technology-sector standards.
FN Overview and Recent Performance
Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services, serving markets in North America, Asia-Pacific, and Europe. The company is a key supplier of the optical components and co-packaged optics used in AI data centers, with data-center revenue representing roughly half of its total. Its customer base is concentrated among major networking and semiconductor companies, including Cisco and NVIDIA, which ties its fortunes closely to the AI hardware cycle.
Like CLS, Fabrinet has delivered strong top-line growth—revenue rose approximately 45% in its most recent fiscal quarter—but has seen its shares retreat in recent weeks. FN recorded a multi-day losing streak that erased more than a quarter of its value, even after reporting results that beat analyst estimates and issuing guidance above consensus. Investors appeared focused on modest gross-margin compression, elevated capital expenditures tied to capacity expansion, and the stock's previously rich valuation. Fabrinet is expanding production capacity to support AI optics demand, and the company maintains a light debt load and strong return on invested capital (ROIC), but weak near-term cash conversion and heavy reliance on a few large customers remain key watchpoints.
Trending AI Robots
Tickeron's Trending AI Robots page curates a selection of automated trading bots from a much larger library of hundreds of AI trading bots that collectively trade thousands of different tickers. Because each bot operates with its own trading style, strategy, timeframe, performance history, and set of covered tickers, only those most suitable for current market conditions are featured in this curated section. The page highlights measurable statistics—such as win rates, profit-loss ratios, and drawdowns—so traders can evaluate bots based on observable data rather than assumptions. Whether you follow large-cap AI names like CLS and FN or a broader universe, exploring the Trending AI Robots section can help you identify automated strategies aligned with the current environment.
Head-to-Head Comparison
While both companies are frequently grouped under the "AI infrastructure" umbrella, their business models diverge in meaningful ways. Celestica's scale skews toward server, storage, and networking assembly for hyperscale cloud providers, giving it broad exposure to data-center capital expenditure but also a thin, single-digit operating-margin profile. Fabrinet, by contrast, is more specialized in optical packaging and precision manufacturing, an area that may benefit from the industry's shift toward co-packaged optics but is tightly linked to a narrower set of large customers.
On momentum, both stocks have faced selling pressure, but the drivers differ in nuance. Celestica's decline has been amplified by its high beta and the recent equity offering, while Fabrinet's slide has been associated with margin scrutiny and elevated capital spending. In terms of growth drivers, Celestica's revenue ramp is powered by hyperscaler spending commitments, whereas Fabrinet's outlook is tied to optical interconnect adoption and capacity expansion. Sector exposure is another contrast: Celestica is a broader play on computing hardware, while Fabrinet is a more concentrated bet on optical networking. Risk factors converge around customer concentration, thin margins, and sensitivity to shifts in AI-related sentiment.
Tickeron AI Verdict
Based on observable factors such as trend consistency, relative valuation compression, and the quality of near-term catalysts, Tickeron's AI would likely favor CLS at the current juncture. The stock's larger, more diversified hyperscaler-driven revenue base, combined with a forward P/E that has reset toward a more historically reasonable level, suggests a relatively more balanced risk-reward profile. Fabrinet's specialized optics exposure remains compelling, but its higher sensitivity to a concentrated customer set and ongoing margin and capital-spending questions introduce additional uncertainty. This assessment is probabilistic rather than definitive, reflecting observable positioning and sentiment rather than a forecast of future returns.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CLS is a Buy and FN is a Hold.
CLS in upward trend: price may ascend as a result of having broken its lower Bollinger Band on October 14, 2026
CLS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 28 of 32 cases where CLS's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 88%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where CLS's RSI Oscillator exited the oversold zone, 16 of 19 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 84%.
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a +21.55% 3-day Advance, the price is estimated to grow further. Considering data from situations where CLS advanced for three days, in 314 of 374 cases, the price rose further within the following month. The odds of a continued upward trend are 84%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 08, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CLS as a result. In 59 of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 73%.
The Moving Average Convergence Divergence Histogram (MACD) for CLS turned negative on October 09, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In 40 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 82%.
CLS moved below its 50-day moving average on October 14, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for CLS crossed bearishly below the 50-day moving average on October 21, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 12 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 90%.
The 50-day moving average for CLS moved below the 200-day moving average on October 15, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CLS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 75%.
The Aroon Indicator for CLS entered a downward trend on November 02, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 20 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 42 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock slightly better than average.
The Tickeron Valuation Rating of 71 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: CLS's P/B Ratio (12.675) is very high in comparison to the industry average of (4.205). P/E Ratio (25.721) is within average values for comparable stocks, (5.559). CLS's Projected Growth (PEG Ratio) (0.030) is slightly lower than the industry average of (0.930). Dividend Yield (0.000) settles around the average of (0.020) among similar stocks. P/S Ratio (2.388) is also within normal values, averaging (4.422).
The Tickeron Price Growth Rating for this company is 81 (best 1 - 100 worst), indicating slightly worse than average price growth. CLS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 89 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
FN in downward trend: price dove below 50-day moving average on October 13, 2026
FN moved below its 50-day moving average on October 13, 2026 date and that indicates a change from an upward trend to a downward trend. In 41 of 46 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are 89%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on FN as a result. In 64 of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 77%.
The Moving Average Convergence Divergence Histogram (MACD) for FN turned negative on October 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In 35 of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at 74%.
The 10-day moving average for FN crossed bearishly below the 50-day moving average on October 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 14 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 78%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FN declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 71%.
FN broke above its upper Bollinger Band on October 06, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where FN's RSI Indicator exited the oversold zone, 15 of 19 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 79%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 47 of 61 cases where FN's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 77%.
Following a +12.93% 3-day Advance, the price is estimated to grow further. Considering data from situations where FN advanced for three days, in 275 of 334 cases, the price rose further within the following month. The odds of a continued upward trend are 82%.
The Aroon Indicator entered an Uptrend today. In 226 of 270 cases where FN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 84%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 45 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 64 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.595) is normal, around the industry mean (4.205). P/E Ratio (23.823) is within average values for comparable stocks, (5.559). Projected Growth (PEG Ratio) (0.770) is also within normal values, averaging (0.930). Dividend Yield (0.000) settles around the average of (0.020) among similar stocks. P/S Ratio (3.067) is also within normal values, averaging (4.422).
The Tickeron Profit vs. Risk Rating rating for this company is 68 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 82 (best 1 - 100 worst), indicating slightly worse than average price growth. FN’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 89 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
CLS | FN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 68 | 61 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 71 Overvalued | 64 Fair valued | |
PROFIT vs RISK RATING 1..100 | 42 | 68 | |
SMR RATING 1..100 | 20 | 45 | |
PRICE GROWTH RATING 1..100 | 81 | 82 | |
P/E GROWTH RATING 1..100 | 89 | 89 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
FN's Valuation (64) in the Electronic Components industry is in the same range as CLS (71). This means that FN’s stock grew similarly to CLS’s over the last 12 months.
CLS's Profit vs Risk Rating (42) in the Electronic Components industry is in the same range as FN (68). This means that CLS’s stock grew similarly to FN’s over the last 12 months.
CLS's SMR Rating (20) in the Electronic Components industry is in the same range as FN (45). This means that CLS’s stock grew similarly to FN’s over the last 12 months.
CLS's Price Growth Rating (81) in the Electronic Components industry is in the same range as FN (82). This means that CLS’s stock grew similarly to FN’s over the last 12 months.
CLS's P/E Growth Rating (89) in the Electronic Components industry is in the same range as FN (89). This means that CLS’s stock grew similarly to FN’s over the last 12 months.
| CLS | FN | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 84% | 2 days ago 79% |
| Stochastic ODDS (%) | 2 days ago 84% | 2 days ago 77% |
| Momentum ODDS (%) | 2 days ago 73% | 2 days ago 77% |
| MACD ODDS (%) | 2 days ago 82% | 2 days ago 74% |
| TrendWeek ODDS (%) | 2 days ago 84% | 2 days ago 73% |
| TrendMonth ODDS (%) | 2 days ago 74% | 2 days ago 78% |
| Advances ODDS (%) | 7 days ago 84% | 7 days ago 82% |
| Declines ODDS (%) | 2 days ago 75% | 2 days ago 71% |
| BollingerBands ODDS (%) | 2 days ago 88% | 2 days ago 75% |
| Aroon ODDS (%) | 2 days ago 71% | 2 days ago 84% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CLS’s FA Score shows that 1 FA rating(s) are green while FN’s FA Score has 0 green FA rating(s).
- CLS’s FA Score: 1 green, 4 red.
- FN’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CLS’s TA Score shows that 4 TA indicator(s) are bullish while FN’s TA Score has 4 bullish TA indicator(s).
- CLS’s TA Score: 4 bullish, 7 bearish.
- FN’s TA Score: 4 bullish, 6 bearish.
Price Growth
CLS (@Electronic Components) experienced а +1.04% price change this week, while FN (@Electronic Components) price change was -3.24% for the same time period.
The average weekly price growth across all stocks in the @Electronic Components industry was -2.74%. For the same industry, the average monthly price growth was -17.41%, and the average quarterly price growth was -14.72%.
Reported Earning Dates
CLS is expected to report earnings on Jan 27, 2027.
FN is expected to report earnings on Feb 08, 2027.
Industries' Descriptions
@Electronic Components (-2.74% weekly)The Electronic Components industry produces electronic equipment for industries and consumer electronics products, such as mobile devices, televisions, and circuit boards. TE Connectivity Ltd, for example, is a company that designs and manufactures connectivity and sensor products for harsh environments in various industries, such as automotive, industrial equipment, aerospace, and oil & gas. Another major player, Corning Inc., makes advanced optics including end-to-end fiber and wireless solutions for communications networks along with various other technologies catering to industrial and scientific applications.
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CLS and
Correlation & Price change
A.I.dvisor indicates that over the last year, CLS has been loosely correlated with FN. These tickers have moved in lockstep 66% of the time. This A.I.-generated data suggests there is some statistical probability that if CLS jumps, then FN could also see price increases.
FN and
Correlation & Price change
A.I.dvisor indicates that over the last year, FN has been closely correlated with GLW. These tickers have moved in lockstep 70% of the time. This A.I.-generated data suggests there is a high statistical probability that if FN jumps, then GLW could also see price increases.
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