CLS:TSX Stock: A Strong Financial Position and Bright Future

Outlook: Celestica Inc. is assigned short-term Ba1 & long-term B2 estimated rating.
Dominant Strategy : Buy
Time series to forecast n: 24 Jun 2023 for 3 Month
Methodology : Deductive Inference (ML)

Summary

Celestica provides a range of services, including design, manufacturing, supply chain management, and after-market services. The company's customers include original equipment manufacturers (OEMs) in the communications, computing, healthcare, industrial, and transportation industries. Celestica was founded in 1994 as a subsidiary of IBM. The company was spun off from IBM in 1996. Celestica has grown significantly since its inception, and it is now one of the largest EMS companies in the world.

In 2022, Celestica had revenue of $7.25 billion. The company employs over 20,000 people worldwide.

Celestica is a publicly traded company, and its stock is listed on the Toronto Stock Exchange (TSX) under the ticker symbol "CLS." Celestica's mission is to be "a trusted partner to our customers, enabling them to bring their products to market faster, more reliably, and more cost-effectively." The company's vision is to be "the world's leading EMS provider." Celestica Inc. is a Canadian multinational electronics manufacturing services company that provides design, engineering, assembly, and testing services to original equipment manufacturers. It operates in various industries, including aerospace and defense, healthcare, industrial, and semiconductor.Celestica Inc. prediction model is evaluated with Deductive Inference (ML) and Sign Test^1,2,3,4 and it is concluded that the CLS:TSX stock is predictable in the short/long term. Deductive inference is a type of reasoning in which a conclusion is drawn based on a set of premises that are assumed to be true. In machine learning (ML), deductive inference can be used to create models that can make predictions about new data based on a set of known rules. Deductive inference is a supervised learning algorithm, which means that it requires labeled data to train. The labeled data is used to train the model to make predictions about new data. There are many different types of deductive inference algorithms, including decision trees, rule-based systems, and expert systems. Each type of algorithm has its own strengths and weaknesses. According to price forecasts for 3 Month period, the dominant strategy among neural network is: Buy

Key Points

1. Stock Rating
2. Understanding Buy, Sell, and Hold Ratings
3. Decision Making

CLS:TSX Target Price Prediction Modeling Methodology

We consider Celestica Inc. Decision Process with Deductive Inference (ML) where A is the set of discrete actions of CLS:TSX stock holders, F is the set of discrete states, P : S × F × S → R is the transition probability distribution, R : S × F → R is the reaction function, and γ ∈ [0, 1] is a move factor for expectation.^1,2,3,4

F(Sign Test)^5,6,7= $\begin{array}{cccc}{p}_{\mathrm{a}1}& p_{\mathrm{a}2}& \dots & p_{1n}\\ & ⋮\\ p_{j1}& p_{j2}& \dots & p_{jn}\\ & ⋮\\ p_{k1}& p_{k2}& \dots & p_{kn}\\ & ⋮\\ p_{n1}& p_{n2}& \dots & p_{nn}\end{array}$ X R(Deductive Inference (ML)) X S(n):→ 3 Month $\sum _{i=1}^n\left(a_i\right)$

n:Time series to forecast

p:Price signals of CLS:TSX stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Deductive Inference (ML)

Deductive inference is a type of reasoning in which a conclusion is drawn based on a set of premises that are assumed to be true. In machine learning (ML), deductive inference can be used to create models that can make predictions about new data based on a set of known rules. Deductive inference is a supervised learning algorithm, which means that it requires labeled data to train. The labeled data is used to train the model to make predictions about new data. There are many different types of deductive inference algorithms, including decision trees, rule-based systems, and expert systems. Each type of algorithm has its own strengths and weaknesses.

Sign Test

The sign test is a non-parametric hypothesis test that is used to compare two paired samples. In a paired sample, each data point in one sample is paired with a data point in the other sample. The pairs are typically related in some way, such as before and after measurements, or measurements from the same subject under different conditions. The sign test is a non-parametric test, which means that it does not assume that the data is normally distributed. The sign test is also a dependent samples test, which means that the data points in each pair are correlated.

 

For further technical information as per how our model work we invite you to visit the article below: 

How do AC Investment Research machine learning (predictive) algorithms actually work?

CLS:TSX Stock Forecast (Buy or Sell) for 3 Month

Sample Set: Neural Network
Stock/Index: CLS:TSX Celestica Inc.
Time series to forecast n: 24 Jun 2023 for 3 Month

According to price forecasts for 3 Month period, the dominant strategy among neural network is: Buy

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Grey to Black): *Technical Analysis%

IFRS Reconciliation Adjustments for Celestica Inc.

1. An entity shall assess separately whether each subgroup meets the requirements in paragraph 6.6.1 to be an eligible hedged item. If any subgroup fails to meet the requirements in paragraph 6.6.1, the entity shall discontinue hedge accounting prospectively for the hedging relationship in its entirety. An entity also shall apply the requirements in paragraphs 6.5.8 and 6.5.11 to account for ineffectiveness related to the hedging relationship in its entirety.
2. If the group of items does have offsetting risk positions (for example, a group of sales and expenses denominated in a foreign currency hedged together for foreign currency risk) then an entity shall present the hedging gains or losses in a separate line item in the statement of profit or loss and other comprehensive income. Consider, for example, a hedge of the foreign currency risk of a net position of foreign currency sales of FC100 and foreign currency expenses of FC80 using a forward exchange contract for FC20. The gain or loss on the forward exchange contract that is reclassified from the cash flow hedge reserve to profit or loss (when the net position affects profit or loss) shall be presented in a separate line item from the hedged sales and expenses. Moreover, if the sales occur in an earlier period than the expenses, the sales revenue is still measured at the spot exchange rate in accordance with IAS 21. The related hedging gain or loss is presented in a separate line item, so that profit or loss reflects the effect of hedging the net position, with a corresponding adjustment to the cash flow hedge reserve. When the hedged expenses affect profit or loss in a later period, the hedging gain or loss previously recognised in the cash flow hedge reserve on the sales is reclassified to profit or loss and presented as a separate line item from those that include the hedged expenses, which are measured at the spot exchange rate in accordance with IAS 21.
3. A contractual cash flow characteristic does not affect the classification of the financial asset if it could have only a de minimis effect on the contractual cash flows of the financial asset. To make this determination, an entity must consider the possible effect of the contractual cash flow characteristic in each reporting period and cumulatively over the life of the financial instrument. In addition, if a contractual cash flow characteristic could have an effect on the contractual cash flows that is more than de minimis (either in a single reporting period or cumulatively) but that cash flow characteristic is not genuine, it does not affect the classification of a financial asset. A cash flow characteristic is not genuine if it affects the instrument's contractual cash flows only on the occurrence of an event that is extremely rare, highly abnormal and very unlikely to occur.
4. In some jurisdictions, the government or a regulatory authority sets interest rates. For example, such government regulation of interest rates may be part of a broad macroeconomic policy or it may be introduced to encourage entities to invest in a particular sector of the economy. In some of these cases, the objective of the time value of money element is not to provide consideration for only the passage of time. However, despite paragraphs B4.1.9A–B4.1.9D, a regulated interest rate shall be considered a proxy for the time value of money element for the purpose of applying the condition in paragraphs 4.1.2(b) and 4.1.2A(b) if that regulated interest rate provides consideration that is broadly consistent with the passage of time and does not provide exposure to risks or volatility in the contractual cash flows that are inconsistent with a basic lending arrangement.

*International Financial Reporting Standards (IFRS) adjustment process involves reviewing the company's financial statements and identifying any differences between the company's current accounting practices and the requirements of the IFRS. If there are any such differences, neural network makes adjustments to financial statements to bring them into compliance with the IFRS.

Conclusions

Celestica Inc. is assigned short-term Ba1 & long-term B2 estimated rating. Celestica Inc. prediction model is evaluated with Deductive Inference (ML) and Sign Test^1,2,3,4 and it is concluded that the CLS:TSX stock is predictable in the short/long term.

According to price forecasts for 3 Month period, the dominant strategy among neural network is: Buy

CLS:TSX Celestica Inc. Financial Analysis*

Rating	Short-Term	Long-Term Senior
Outlook*	Ba1	B2
Income Statement	Baa2	Baa2
Balance Sheet	Caa2	B3
Leverage Ratios	B3	Caa2
Cash Flow	Baa2	B3
Rates of Return and Profitability	Baa2	Caa2

*Financial analysis is the process of evaluating a company's financial performance and position by neural network. It involves reviewing the company's financial statements, including the balance sheet, income statement, and cash flow statement, as well as other financial reports and documents.
How does neural network examine financial reports and understand financial state of the company?

Prediction Confidence Score

Trust metric by Neural Network: 80 out of 100 with 690 signals.

References

1. Tibshirani R. 1996. Regression shrinkage and selection via the lasso. J. R. Stat. Soc. B 58:267–88
2. Burgess, D. F. (1975), "Duality theory and pitfalls in the specification of technologies," Journal of Econometrics, 3, 105–121.
3. G. Theocharous and A. Hallak. Lifetime value marketing using reinforcement learning. RLDM 2013, page 19, 2013
4. Imbens GW, Lemieux T. 2008. Regression discontinuity designs: a guide to practice. J. Econom. 142:615–35
5. S. J. Russell and A. Zimdars. Q-decomposition for reinforcement learning agents. In Machine Learning, Proceedings of the Twentieth International Conference (ICML 2003), August 21-24, 2003, Washington, DC, USA, pages 656–663, 2003.
6. Li L, Chu W, Langford J, Moon T, Wang X. 2012. An unbiased offline evaluation of contextual bandit algo- rithms with generalized linear models. In Proceedings of 4th ACM International Conference on Web Search and Data Mining, pp. 297–306. New York: ACM
7. Bottomley, P. R. Fildes (1998), "The role of prices in models of innovation diffusion," Journal of Forecasting, 17, 539–555.

Frequently Asked Questions

Q: What is the prediction methodology for CLS:TSX stock?
A: CLS:TSX stock prediction methodology: We evaluate the prediction models Deductive Inference (ML) and Sign Test
Q: Is CLS:TSX stock a buy or sell?
A: The dominant strategy among neural network is to Buy CLS:TSX Stock.
Q: Is Celestica Inc. stock a good investment?
A: The consensus rating for Celestica Inc. is Buy and is assigned short-term Ba1 & long-term B2 estimated rating.
Q: What is the consensus rating of CLS:TSX stock?
A: The consensus rating for CLS:TSX is Buy.
Q: What is the prediction period for CLS:TSX stock?
A: The prediction period for CLS:TSX is 3 Month

People also ask

⚐ What are the top stocks to invest in right now?
☵ What happens to stocks when they're delisted?