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CLS vs FN
Which Stock Would AI Choose? Celestica (CLS) vs. Fabrinet (FN) Stock Comparison
Key Takeaways
- CLS (Celestica) and FN (Fabrinet) are both manufacturing partners to the AI (artificial intelligence) and data center supply chain, but they occupy different roles within it.
- Celestica is a larger, diversified electronics manufacturing services (EMS) player focused on hyperscaler compute and networking hardware; Fabrinet is a smaller precision optical packaging specialist.
- Both companies are growing rapidly, with Celestica posting roughly 62% year-over-year revenue growth in its most recent quarter and Fabrinet growing revenue 36% for its latest fiscal year.
- Celestica has shown stronger recent share-price momentum, while Fabrinet delivered a large earnings beat but a more mixed market reaction.
- Customer concentration is a shared risk: a handful of large hyperscaler and networking customers account for a significant share of revenue at both companies.
- Their relative positioning largely hinges on whether investors favor broader AI-compute exposure (Celestica) or precision optical packaging (Fabrinet).
Introduction
Celestica and Fabrinet sit at the center of one of the market's most closely watched themes: the build-out of AI infrastructure. Although both are contract manufacturers serving the same broad technology ecosystem, their business models, growth drivers, and risk profiles differ meaningfully. Celestica is a diversified electronics manufacturer supplying compute, storage, and networking hardware to large cloud and enterprise customers. Fabrinet specializes in advanced optical packaging and precision manufacturing for optical communications, data center interconnect, and other complex devices. For traders and investors weighing relative performance and market positioning, this stock comparison examines how each company has performed in recent weeks and what is shaping sentiment in the current environment.
CLS Overview and Recent Performance
CLS, Celestica, is a global design, engineering, and manufacturing partner serving the data center, communications, aerospace and defense, industrial, and healthcare markets. Its most important near-term growth engine is the Connectivity & Cloud Solutions (CCS) segment, which supplies Hardware Platform Solutions (HPS) — including compute, storage, and networking systems — to hyperscaler and enterprise customers.
Recent financial results underscore strong demand. In its latest reported quarter, Celestica grew revenue roughly 62% year over year to about $4.7 billion, led by an 84% increase in CCS revenue, and raised its full-year 2026 outlook to approximately $20.5 billion to $21 billion in revenue. Management has pointed to accelerating hyperscaler AI and cloud demand, scaling 800G switching, and the ramp of 1.6T (terabit) programs as key catalysts. Celestica has also disclosed collaborations tied to AI compute platforms, including advanced AI racks developed with Broadcom to support OpenAI's custom accelerator roadmap and a design-and-manufacturing role in AMD's Helios platform. A multibillion-dollar equity raise has supported expanded manufacturing capacity. This momentum has contributed to strong share-price gains in recent weeks, though customer concentration — three customers accounted for 36%, 15%, and 12% of revenue in one recent quarter — remains a central risk.
FN Overview and Recent Performance
FN, Fabrinet, is a leading provider of advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services. Headquartered in Thailand, it serves original equipment manufacturers of optical communication components and modules, automotive components, medical devices, and industrial lasers. Its core strength is high-precision, high-complexity manufacturing, increasingly anchored by data center demand.
Fabrinet's latest fiscal quarter showed record results: revenue rose about 45% year over year to $1.32 billion, and non-GAAP (non-GAAP, or adjusted, measures exclude certain items) earnings per share (EPS) increased roughly 55% to $4.10, beating analyst estimates. For the full fiscal year, revenue grew 36% to about $4.6 billion. Data center revenue became the company's largest category at 51% of sales, with data center interconnect (DCI) exceeding a $1 billion annualized run rate. Operating margin reached a three-year high of 10.9%. The company is expanding capacity aggressively, including a major new Thailand facility expected to add billions of dollars in annual revenue capacity. Notably, despite the strong results, Fabrinet's shares fell in after-hours trading following its latest earnings report, reflecting elevated expectations and concentration risk among major customers such as Cisco, Nvidia, Nokia, and Amazon.
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Head-to-Head Comparison
The clearest contrast between these two stocks is their position in the AI value chain. Celestica supplies complete hardware platforms — racks, servers, storage, and switches — giving it broad, direct exposure to hyperscaler compute spending. Fabrinet focuses on precision optical packaging and interconnects, a more specialized layer of the same build-out. This translates into different scale and growth profiles: Celestica is targeting a roughly $20 billion-plus annual revenue run rate, while Fabrinet is exiting its fiscal year at a far smaller base of about $5 billion.
Recent momentum has favored Celestica. The stock has posted strong gains in recent weeks on the back of raised guidance and new program wins, whereas Fabrinet delivered a substantial earnings beat but experienced a more muted market response — a sign that expectations were already elevated. Risk factors also differ in emphasis. Both companies face customer concentration, but Celestica's reliance on a few hyperscalers and its exposure to tariff and trade dynamics are notable, while Fabrinet's gross margin of roughly 12% reflects the lower-margin, high-volume nature of its manufacturing model. Sector exposure is another distinction: Celestica is more diversified across cloud, aerospace, industrial, and healthcare, while Fabrinet is more concentrated in optical communications and data center interconnect.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely tilt toward CLS in the current environment. Celestica combines stronger recent trend consistency, upward revisions to its full-year outlook, and a broader set of AI-compute catalysts, including the ramp of 1.6T programs and new hyperscaler collaborations. Fabrinet's fundamentals remain robust, with record revenue and expanding margins, but its post-earnings price reaction suggests a more demanding setup and less decisive short-term momentum. That said, positioning is inherently probabilistic rather than definitive, and each stock carries meaningful concentration and execution risks. Investors focused on precision optical packaging may still find FN compelling, even as the current trend evidence appears marginally more favorable for Celestica.
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 Hold and FN is a Hold.
Momentum Indicator for CLS turns negative, indicating new downward trend
CLS saw its Momentum Indicator move below the 0 level on October 08, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 81 similar instances where the indicator turned negative. In 66 of the 81 cases, the stock moved further down in the following days. The odds of a decline are at 81%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for CLS moved out of overbought territory on September 25, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 57 similar instances where the indicator moved out of overbought territory. In 37 of the 57 cases, the stock moved lower in the following days. This puts the odds of a move lower at 65%.
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 50 similar instances when the indicator turned negative. In 39 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 78%.
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 74%.
CLS broke above its upper Bollinger Band on September 24, 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 Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
CLS moved above its 50-day moving average on September 17, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for CLS crossed bullishly above the 50-day moving average on September 17, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 73%.
The 50-day moving average for CLS moved above the 200-day moving average on October 05, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +7.16% 3-day Advance, the price is estimated to grow further. Considering data from situations where CLS advanced for three days, in 310 of 370 cases, the price rose further within the following month. The odds of a continued upward trend are 84%.
The Aroon Indicator entered an Uptrend today. In 297 of 335 cases where CLS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 89%.
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 24 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 66, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 46 (best 1 - 100 worst), indicating steady price growth. CLS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 69 (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 (18.149) is very high in comparison to the industry average of (5.615). P/E Ratio (37.026) is within average values for comparable stocks, (81.453). Projected Growth (PEG Ratio) (0.030) is also within normal values, averaging (1.658). Dividend Yield (0.000) settles around the average of (0.005) among similar stocks. P/S Ratio (2.388) is also within normal values, averaging (4.796).
The Tickeron PE Growth Rating for this company is 77 (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.
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued 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.
FN in downward trend: price may decline as a result of having broken its higher Bollinger Band on October 06, 2026
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. The A.I.dvisor looked at 45 similar instances where the stock broke above the upper band. In 36 of the 45 cases the stock fell afterwards. This puts the odds of success at 80%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for FN moved out of overbought territory on October 08, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 45 similar instances where the indicator moved out of overbought territory. In 31 of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at 69%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 47 of 65 cases where FN's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 72%.
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.
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%.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 25, 2026. You may want to consider a long position or call options on FN as a result. In 66 of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 80%.
The Moving Average Convergence Divergence (MACD) for FN just turned positive on September 18, 2026. Looking at past instances where FN's MACD turned positive, the stock continued to rise in 40 of 47 cases over the following month. The odds of a continued upward trend are 85%.
The 10-day moving average for FN crossed bullishly above the 50-day moving average on October 08, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 71%.
Following a +9.73% 3-day Advance, the price is estimated to grow further. Considering data from situations where FN advanced for three days, in 272 of 331 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 227 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 Profit vs. Risk Rating rating for this company is 51 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 66, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 52 (best 1 - 100 worst), indicating steady price growth. FN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 54 (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 (5.984) is normal, around the industry mean (5.615). P/E Ratio (31.415) is within average values for comparable stocks, (81.453). Projected Growth (PEG Ratio) (0.770) is also within normal values, averaging (1.658). Dividend Yield (0.000) settles around the average of (0.005) among similar stocks. P/S Ratio (3.067) is also within normal values, averaging (4.796).
The Tickeron PE Growth Rating for this company is 65 (best 1 - 100 worst), pointing to 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 | 93 | 29 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 69 Overvalued | 54 Fair valued | |
PROFIT vs RISK RATING 1..100 | 24 | 51 | |
SMR RATING 1..100 | 20 | 45 | |
PRICE GROWTH RATING 1..100 | 46 | 52 | |
P/E GROWTH RATING 1..100 | 77 | 65 | |
SEASONALITY SCORE 1..100 | 90 | 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 (54) in the Electronic Components industry is in the same range as CLS (69). This means that FN’s stock grew similarly to CLS’s over the last 12 months.
CLS's Profit vs Risk Rating (24) in the Electronic Components industry is in the same range as FN (51). 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 (46) in the Electronic Components industry is in the same range as FN (52). This means that CLS’s stock grew similarly to FN’s over the last 12 months.
FN's P/E Growth Rating (65) in the Electronic Components industry is in the same range as CLS (77). This means that FN’s stock grew similarly to CLS’s over the last 12 months.
| CLS | FN | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 65% | 1 day ago 69% |
| Stochastic ODDS (%) | 1 day ago 82% | 1 day ago 72% |
| Momentum ODDS (%) | 1 day ago 81% | 1 day ago 80% |
| MACD ODDS (%) | 1 day ago 78% | 1 day ago 85% |
| TrendWeek ODDS (%) | 1 day ago 72% | 1 day ago 73% |
| TrendMonth ODDS (%) | 1 day ago 84% | 1 day ago 83% |
| Advances ODDS (%) | 13 days ago 84% | 8 days ago 82% |
| Declines ODDS (%) | 7 days ago 74% | 1 day ago 71% |
| BollingerBands ODDS (%) | 1 day ago 74% | 1 day ago 80% |
| Aroon ODDS (%) | 1 day ago 89% | 1 day 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 2 FA rating(s) are green while FN’s FA Score has 0 green FA rating(s).
- CLS’s FA Score: 2 green, 3 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 6 TA indicator(s) are bullish while FN’s TA Score has 5 bullish TA indicator(s).
- CLS’s TA Score: 6 bullish, 5 bearish.
- FN’s TA Score: 5 bullish, 5 bearish.
Price Growth
CLS (@Electronic Components) experienced а -7.93% price change this week, while FN (@Electronic Components) price change was -12.54% for the same time period.
The average weekly price growth across all stocks in the @Electronic Components industry was -8.02%. For the same industry, the average monthly price growth was -0.85%, and the average quarterly price growth was -3.87%.
Reported Earning Dates
CLS is expected to report earnings on Oct 26, 2026.
FN is expected to report earnings on Nov 09, 2026.
Industries' Descriptions
@Electronic Components (-8.02% 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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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 69% 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.