Celestica: The AI Party May Be Ending
Celestica's stock has massively outperformed since 2022, but current valuations mirror Dot-com 2000 bubble extremes, making the risk/reward balance unattractive. Valuation metrics have surged: high P/E and price-to-sales ratios, matched with ultra-low free cash flow yield, now require continued high-growth rates to justify current pricing. Insider selling has been significant (especially above $120), with management dumping most of their shares during 2024–25, signaling a lack of confidence in further upside.
Wall Street Bulls Look Optimistic About Celestica (CLS): Should You Buy?
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Celestica - Finally An AI Play That Is Not Trading At Too Elevated Valuations
Celestica is a lesser-known AI hardware and supply chain play, offering exposure to AI trends without high risk or overvaluation. Despite a low gross profit margin, CLS boasts strong ROE and exceptional revenue and EBITDA growth, outpacing industry averages and peers. Valuation is attractive: CLS trades at lower EV/EBITDA and P/S ratios than most AI peers, with growth prospects superior to similarly valued companies.
Celestica vs. Plexus: Which EMS Stock is a Better Bet Right Now?
CLS is riding on growing demand for its 400G and 800G switches in AI applications, while PLXS is witnessing strong demand in healthcare and semicap verticals.
Celestica: Continue Walking The Bull Trail
Celestica's robust growth is fueled by surging demand for hardware platform solutions, especially networking switches for hyperscalers. Recent US-China tariff reductions are a major positive catalyst, likely paving the way for future guidance upgrades, as management had earlier assumed no changes to tariff policies. Valuations are at a premium vs peers, but the risk here has eased slightly, as CLS stock today is at a lower premium vs peers than it was months ago.
Here is Why Growth Investors Should Buy Celestica (CLS) Now
Celestica (CLS) is well positioned to outperform the market, as it exhibits above-average growth in financials.
Celestica: The Quiet AI Hardware Powerhouse
Celestica is a top beneficiary of AI, cloud, aerospace, and defense trends, with strong financial momentum and double-digit growth outlook for 2025. The company's strategic shift to complex, high-value manufacturing and end-to-end solutions drives superior margins and customer stickiness. Despite rapid growth and improved profitability, Celestica trades at modest multiples, offering significant re-rating and upside potential if execution continues.
Celestica, Inc. (CLS) Is a Trending Stock: Facts to Know Before Betting on It
Celestica (CLS) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Celestica: An Overlooked AI Play
I remain extremely bullish due to robust fundamentals, strong AI tailwinds, and compelling upside potential. The company posted a solid Q1 with 20% YoY revenue growth and EPS rising from $0.86 to $1.20, driven by AI-driven data center demand. Valuation scenarios suggest a 38% to 18% upside potential, with a target price of $133, supported by a conservative 10% revenue CAGR assumption.
Celestica: AI Needs It, The Market Doesn't Know It
Celestica's Q1 2025 revenue rose 20% YoY to $2.65B, driven by 28% CCS growth and 99% HPS surge. Adjusted operating margin hit a record 7.1%, with EPS up 45% YoY to $1.20 and FCF at $94M. Customer concentration remains high, with the top 10 customers contributing 78% of revenue; one hyperscaler alone made up 28%.
Finding Opportunity In Chaos: Why Celestica Thrives
Celestica's Q1 results beat expectations, with revenue and EPS exceeding consensus, leading to an upgraded rating from Buy to Strong Buy. Management's conservative guidance has been raised, and they see opportunities to gain market share despite tariff challenges, showcasing their ability to navigate complexity. Margins are expanding, particularly in the high-growth CCS segment, driving significant earnings growth and adding value.
Wall Street Analysts Think Celestica (CLS) Is a Good Investment: Is It?
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
