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Celestica and Westlake have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – August 1, 2025 – Zacks Equity Research shares Celestica (CLS - Free Report) as the Bull of the Day and Westlake Corp. (WLK - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Coca-Cola Company's (KO - Free Report) , Monster Beverage Corp. (MNST - Free Report) and PepsiCo Inc. (PEP - Free Report) .
Celestica, a Zacks Rank #2 (Buy), is one of the largest electronics manufacturing companies in the world. This company provides supply chain solutions in North America, Europe, as well as Asia. The stock is displaying relative strength, breaking out to the upside amid a bullish move that pushed shares to new all-time highs.
The price movement is a sign of strength as we head deeper into the second half of the year. Increasing volume has attracted investor attention as buying pressure accumulates in this top-ranked stock.
Celestica is part of the Zacks Electronics – Manufacturing Services industry group, which currently ranks in the top 4% out of more than 250 industries. Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months, just as it has over the prior 3 months.
Historical research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It's no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top industries, we can dramatically improve our stock-picking success.
Company Description
Celestica provides a range of services such as new product design and development, engineering and component sourcing, complex mechanical assembly, systems integration, and logistics.
The company has also been involved in the AI movement in terms of delivering platform solutions, which includes development of infrastructure platforms along with hardware and software design services.
Celestica offers their products and services to hyperscalers, cloud-based providers, and original equipment manufacturers. The company serves a variety of industries such as aerospace and defense, industrial, capital equipment, and communication markets.
Earnings Trends and Future Estimates
A leading electronics manufacturer, Celestica has built up an impressive reporting history and hasn't missed the earnings mark in many years. The company has delivered a trailing four-quarter average earnings beat of 7.7%.
Earlier in the week, Celestica reported second-quarter earnings of $1.39 per share, a 12.1% surprise over the $1.24/share consensus estimate. Revenues of $2.89 billion also exceeded projections by 8.3%. Solid growth in the hardware platform solutions portfolio, backed by hyperscaler demand for networking products, buoyed the top line.
Analysts are bullish on the stock and have been raising earnings estimates lately. The full-year consensus EPS estimate has been revised upward in the past 60 days by 0.59% to $5.08 per share. If the company is able to achieve this, it would translate to a 30.9% growth rate versus the prior year.
Let's Get Technical
This market leader has seen its stock advance nearly 200% off the April lows. Only stocks that are in extremely powerful uptrends are able to experience this type of outperformance. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.
Notice how both the 50-day (blue line) and 200-day (red line) moving averages are sloping up. The stock has been making a series of higher highs throughout the past year. With both strong fundamental and technical indicators, CLS stock is poised to continue its outperformance.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Celestica has recently witnessed positive revisions. As long as this trend remains intact (and CLS continues to deliver earnings beats), the stock will likely continue its bullish run.
Bottom Line
A growing proliferation of AI-based applications and generative AI tools across industries presents robust growth opportunities for Celestica. The company has offered a bullish outlook for 2025 and increased previous guidance, another sign that the bullish run can be sustained.
Backed by a leading industry group and history of earnings beats, it's not difficult to see why Celestica stock is a compelling investment. Robust fundamentals combined with an appealing technical trend certainly justify adding shares to the mix.
Recent positive earnings estimate revisions should also serve to create a 'floor' in terms of any sudden or unexpected downside moves. If you haven't already done so, be sure to put CLS on your shortlist.
Westlake Corp. manufactures and markets performance and essential materials as well as housing and infrastructure products globally. The company produces and supplies a variety of products such as ethylene, polyethylene, PVC, vinyl intermediates, and fence and decking components.
Founded in 1986 and headquartered in Houston, Texas, Westlake also provides consumer and commercial products including landscape edging, home and office matting, and marine dock edging. It offers its products to chemical processors, plastics fabricators, construction contractors, and supply warehouses for use in various consumer and industrial markets.
The company faces challenges from elevated interest rates and lingering inflation. High rates and affordability concerns have dampened housing starts, leading to reduced demand and lower business confidence. Sluggish construction activity in North America remains a concern over the short-term. As a result, both the pipe-and-fitting and siding-and-trim businesses have been negatively impacted.
The Zacks Rundown
A Zacks Rank #5 (Strong Sell) stock, Westlake is a component of the Zacks Chemical – Plastic industry group, which currently ranks in the bottom 4% out of approximately 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months, just as it has so far this year.
Stocks in the bottom tiers of industries can often be intriguing short candidates. While individual stocks have the ability to outperform even when they're part of a lagging industry, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.
WLK shares have been underperforming over the past year. The stock is hitting a series of lower lows and represents a compelling short opportunity as we head further into 2025.
Recent Earnings Misses & Deteriorating Outlook
Westlake Corp. has fallen short of earnings estimates in three of the past four quarters. Back in May, the company reported a first-quarter loss of -$0.31 per share, missing the Zacks Consensus Estimate by a whopping -144.3%.
Westlake has posted a trailing four-quarter average earnings miss of -61.4%. Consistently falling short of earnings estimates is a recipe for underperformance, and WLK is no exception.
The company has been on the receiving end of negative earnings estimate revisions as of late. Looking at the second quarter, analysts have slashed estimates by -88.89% in the past 60 days. The Q2 Zacks Consensus EPS Estimate is now $0.06 per share, reflecting negative growth of -97.5% relative to the year-ago period.
Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.
Technical Outlook
WLK stock has experienced what is known as a "death cross," whereby the stock's 50-day moving average (blue line) crosses below its 200-day moving average. Shares would have to make an outsized move to the upside and show increasing earnings estimate revisions to warrant taking any long positions. The stock has fallen more than 30% this year alone.
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock is not set to make its way to new highs anytime soon. The fact that WLK is included in one of the worst-performing industry groups adds yet another headwind to a long list of concerns.
A history of earnings misses and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock's downtrend.
Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy. Bulls will want to steer clear of WLK until the situation shows major signs of improvement.
Additional content:
Is Coca-Cola's Diversification into Energy Drinks Gaining Traction?
The Coca-Cola Company's push into the energy drink category is starting to yield results, although it is a gradual build. While the second-quarter 2025 earnings call did not shine the spotlight on energy drinks directly, the company's emphasis on its diversified portfolio, including BODYARMOR and Powerade, signals strategic momentum. Both brands registered volume growth in the second quarter, contributing to Coca-Cola's broader objective of gaining value share for the 17th consecutive quarter. This reflects consumer receptiveness to Coca-Cola's expanding non-soda offerings.
The company's innovation agenda also plays a key role. The latest launches, such as Sprite+Tea, though not energy drinks, highlight Coca-Cola's agility in crafting hybrid beverages that tap into evolving tastes for functionality and flavor. This strategy complements its efforts in premium stills and sports hydration — segments that overlap with consumer needs — in the energy category. The company's all-weather approach and accelerated marketing execution have further enhanced visibility and consumer traction for its broader beverage lineup.
While Coca-Cola has not yet disrupted the energy drink market on the scale of leaders like Monster Beverage Corp. or Red Bull, its existing brand power, distribution strength and innovation pipeline suggest it is in for the long game. If current execution trends continue, Coca-Cola's diversification into energy beverages may shift from incremental gain to a more commanding presence in the next few quarters.
The Rivalry in Energy Drinks Strengthens: Can PEP & MNST Keep Up?
As Coca-Cola steadily expands its footprint in the energy drink market, all eyes are on PepsiCo Inc. and Monster Beverage to see if they can keep pace in this increasingly competitive and fast-evolving segment.
PepsiCo is intensifying its energy drink strategy with bold moves like acquiring Poppi, a fast-growing prebiotic soda brand, and expanding Sting's global visibility through a multi-year Formula 1 partnership. Gatorade remains central to its sports hydration portfolio, while Propel drives strong growth in functional drinks. With continued investments in zero-sugar, performance beverages and away-from-home channels, PepsiCo is positioning itself for sustained growth in the fast-evolving energy and wellness drink segment.
Monster Beverage continues to dominate the energy drink space with a diverse portfolio that includes Monster Energy, Reign Total Body Fuel, Reign Storm, Bang Energy, Predator and Fury. In first-quarter 2025, the company expanded globally with product launches like Monster Ultra Blue Hawaiian and continues to lead in market share across several countries. Monster is also ramping up innovation and expanding affordable brands internationally, positioning itself for global growth and consumer reach.
The Zacks Rundown for Coca-Cola
KO shares have risen 10.4% year to date compared with the industry's growth of 5.3%.
From a valuation standpoint, Coca-Cola trades at a forward price-to-earnings ratio of 22.04X, significantly higher than the industry's 17.64X.
The Zacks Consensus Estimate for KO's 2025 and 2026 earnings implies year-over-year growth of 3.1% and 8.3%, respectively. Earnings estimates for 2025 have been unchanged in the past 30 days.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Celestica and Westlake have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – August 1, 2025 – Zacks Equity Research shares Celestica (CLS - Free Report) as the Bull of the Day and Westlake Corp. (WLK - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Coca-Cola Company's (KO - Free Report) , Monster Beverage Corp. (MNST - Free Report) and PepsiCo Inc. (PEP - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Celestica, a Zacks Rank #2 (Buy), is one of the largest electronics manufacturing companies in the world. This company provides supply chain solutions in North America, Europe, as well as Asia. The stock is displaying relative strength, breaking out to the upside amid a bullish move that pushed shares to new all-time highs.
The price movement is a sign of strength as we head deeper into the second half of the year. Increasing volume has attracted investor attention as buying pressure accumulates in this top-ranked stock.
Celestica is part of the Zacks Electronics – Manufacturing Services industry group, which currently ranks in the top 4% out of more than 250 industries. Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months, just as it has over the prior 3 months.
Historical research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It's no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top industries, we can dramatically improve our stock-picking success.
Company Description
Celestica provides a range of services such as new product design and development, engineering and component sourcing, complex mechanical assembly, systems integration, and logistics.
The company has also been involved in the AI movement in terms of delivering platform solutions, which includes development of infrastructure platforms along with hardware and software design services.
Celestica offers their products and services to hyperscalers, cloud-based providers, and original equipment manufacturers. The company serves a variety of industries such as aerospace and defense, industrial, capital equipment, and communication markets.
Earnings Trends and Future Estimates
A leading electronics manufacturer, Celestica has built up an impressive reporting history and hasn't missed the earnings mark in many years. The company has delivered a trailing four-quarter average earnings beat of 7.7%.
Earlier in the week, Celestica reported second-quarter earnings of $1.39 per share, a 12.1% surprise over the $1.24/share consensus estimate. Revenues of $2.89 billion also exceeded projections by 8.3%. Solid growth in the hardware platform solutions portfolio, backed by hyperscaler demand for networking products, buoyed the top line.
Analysts are bullish on the stock and have been raising earnings estimates lately. The full-year consensus EPS estimate has been revised upward in the past 60 days by 0.59% to $5.08 per share. If the company is able to achieve this, it would translate to a 30.9% growth rate versus the prior year.
Let's Get Technical
This market leader has seen its stock advance nearly 200% off the April lows. Only stocks that are in extremely powerful uptrends are able to experience this type of outperformance. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.
Notice how both the 50-day (blue line) and 200-day (red line) moving averages are sloping up. The stock has been making a series of higher highs throughout the past year. With both strong fundamental and technical indicators, CLS stock is poised to continue its outperformance.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Celestica has recently witnessed positive revisions. As long as this trend remains intact (and CLS continues to deliver earnings beats), the stock will likely continue its bullish run.
Bottom Line
A growing proliferation of AI-based applications and generative AI tools across industries presents robust growth opportunities for Celestica. The company has offered a bullish outlook for 2025 and increased previous guidance, another sign that the bullish run can be sustained.
Backed by a leading industry group and history of earnings beats, it's not difficult to see why Celestica stock is a compelling investment. Robust fundamentals combined with an appealing technical trend certainly justify adding shares to the mix.
Recent positive earnings estimate revisions should also serve to create a 'floor' in terms of any sudden or unexpected downside moves. If you haven't already done so, be sure to put CLS on your shortlist.
Bear of the Day:
Westlake Corp. manufactures and markets performance and essential materials as well as housing and infrastructure products globally. The company produces and supplies a variety of products such as ethylene, polyethylene, PVC, vinyl intermediates, and fence and decking components.
Founded in 1986 and headquartered in Houston, Texas, Westlake also provides consumer and commercial products including landscape edging, home and office matting, and marine dock edging. It offers its products to chemical processors, plastics fabricators, construction contractors, and supply warehouses for use in various consumer and industrial markets.
The company faces challenges from elevated interest rates and lingering inflation. High rates and affordability concerns have dampened housing starts, leading to reduced demand and lower business confidence. Sluggish construction activity in North America remains a concern over the short-term. As a result, both the pipe-and-fitting and siding-and-trim businesses have been negatively impacted.
The Zacks Rundown
A Zacks Rank #5 (Strong Sell) stock, Westlake is a component of the Zacks Chemical – Plastic industry group, which currently ranks in the bottom 4% out of approximately 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months, just as it has so far this year.
Stocks in the bottom tiers of industries can often be intriguing short candidates. While individual stocks have the ability to outperform even when they're part of a lagging industry, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.
WLK shares have been underperforming over the past year. The stock is hitting a series of lower lows and represents a compelling short opportunity as we head further into 2025.
Recent Earnings Misses & Deteriorating Outlook
Westlake Corp. has fallen short of earnings estimates in three of the past four quarters. Back in May, the company reported a first-quarter loss of -$0.31 per share, missing the Zacks Consensus Estimate by a whopping -144.3%.
Westlake has posted a trailing four-quarter average earnings miss of -61.4%. Consistently falling short of earnings estimates is a recipe for underperformance, and WLK is no exception.
The company has been on the receiving end of negative earnings estimate revisions as of late. Looking at the second quarter, analysts have slashed estimates by -88.89% in the past 60 days. The Q2 Zacks Consensus EPS Estimate is now $0.06 per share, reflecting negative growth of -97.5% relative to the year-ago period.
Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.
Technical Outlook
WLK stock has experienced what is known as a "death cross," whereby the stock's 50-day moving average (blue line) crosses below its 200-day moving average. Shares would have to make an outsized move to the upside and show increasing earnings estimate revisions to warrant taking any long positions. The stock has fallen more than 30% this year alone.
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock is not set to make its way to new highs anytime soon. The fact that WLK is included in one of the worst-performing industry groups adds yet another headwind to a long list of concerns.
A history of earnings misses and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock's downtrend.
Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy. Bulls will want to steer clear of WLK until the situation shows major signs of improvement.
Additional content:
Is Coca-Cola's Diversification into Energy Drinks Gaining Traction?
The Coca-Cola Company's push into the energy drink category is starting to yield results, although it is a gradual build. While the second-quarter 2025 earnings call did not shine the spotlight on energy drinks directly, the company's emphasis on its diversified portfolio, including BODYARMOR and Powerade, signals strategic momentum. Both brands registered volume growth in the second quarter, contributing to Coca-Cola's broader objective of gaining value share for the 17th consecutive quarter. This reflects consumer receptiveness to Coca-Cola's expanding non-soda offerings.
The company's innovation agenda also plays a key role. The latest launches, such as Sprite+Tea, though not energy drinks, highlight Coca-Cola's agility in crafting hybrid beverages that tap into evolving tastes for functionality and flavor. This strategy complements its efforts in premium stills and sports hydration — segments that overlap with consumer needs — in the energy category. The company's all-weather approach and accelerated marketing execution have further enhanced visibility and consumer traction for its broader beverage lineup.
While Coca-Cola has not yet disrupted the energy drink market on the scale of leaders like Monster Beverage Corp. or Red Bull, its existing brand power, distribution strength and innovation pipeline suggest it is in for the long game. If current execution trends continue, Coca-Cola's diversification into energy beverages may shift from incremental gain to a more commanding presence in the next few quarters.
The Rivalry in Energy Drinks Strengthens: Can PEP & MNST Keep Up?
As Coca-Cola steadily expands its footprint in the energy drink market, all eyes are on PepsiCo Inc. and Monster Beverage to see if they can keep pace in this increasingly competitive and fast-evolving segment.
PepsiCo is intensifying its energy drink strategy with bold moves like acquiring Poppi, a fast-growing prebiotic soda brand, and expanding Sting's global visibility through a multi-year Formula 1 partnership. Gatorade remains central to its sports hydration portfolio, while Propel drives strong growth in functional drinks. With continued investments in zero-sugar, performance beverages and away-from-home channels, PepsiCo is positioning itself for sustained growth in the fast-evolving energy and wellness drink segment.
Monster Beverage continues to dominate the energy drink space with a diverse portfolio that includes Monster Energy, Reign Total Body Fuel, Reign Storm, Bang Energy, Predator and Fury. In first-quarter 2025, the company expanded globally with product launches like Monster Ultra Blue Hawaiian and continues to lead in market share across several countries. Monster is also ramping up innovation and expanding affordable brands internationally, positioning itself for global growth and consumer reach.
The Zacks Rundown for Coca-Cola
KO shares have risen 10.4% year to date compared with the industry's growth of 5.3%.
From a valuation standpoint, Coca-Cola trades at a forward price-to-earnings ratio of 22.04X, significantly higher than the industry's 17.64X.
The Zacks Consensus Estimate for KO's 2025 and 2026 earnings implies year-over-year growth of 3.1% and 8.3%, respectively. Earnings estimates for 2025 have been unchanged in the past 30 days.
Coca-Cola currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
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Zacks Investment Research
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.