Is Celestica Inc. (CLS) A Good Stock To Buy Now?

We came crossed a bullish thesis connected Celestica Inc. connected Value & Momentum by Denis D.’s Substack. In this article, we volition summarize the bulls’ thesis connected CLS. Celestica Inc.'s stock was trading astatine $270.64 arsenic of March 4th. CLS’s trailing and guardant P/E were 35.89 and 28.99 respectively according to Yahoo Finance.

Celestica (CLS) has emerged arsenic a starring subordinate successful the AI and data center infrastructure market, driven by its Electronics Manufacturing Services (EMS) and Original Design Manufacturer (ODM) capabilities. The institution operates done 2 main segments: Connectivity and Cloud Solutions (CCS), which contributes 67% of gross and focuses on hyperscalers with AI-optimized servers, networking switches, and retention platforms, and Advanced Technology Solutions (ATS), serving aerospace, industrial, and HealthTech clients.

CLS has demonstrated exceptional execution with 13 consecutive net beats, Q4 2025 gross of $3.67 cardinal (up 44% YoY), EPS of $1.89 (up 70% YoY), and important guidance upgrades for FY2026. Free currency travel procreation is strong, and the equilibrium expanse remains steadfast with a indebtedness ratio nether 12%, supporting operational flexibility and maturation investments.

The company’s maturation is underpinned by the AI/data center mega-trend, peculiarly its Hardware Platform Solutions (HPS), which grew 63% successful 2024, serving top hyperscalers such arsenic Amazon, Google, and Meta. While gross attraction is notable, with the apical 2 CCS customers accounting for 39% of sales, Celestica’s market-leading plan and manufacturing capabilities presumption it to capitalize connected the continued surge successful request for AI infrastructure. Recent insider selling and precocious valuation (P/E of 53x) awesome caution, but these are balanced by a PEG ratio adjacent 1.2x and resilient fundamentals.

Despite short-term volatility and an 18% pullback from highest levels, Celestica’s ascendant presumption successful a high-growth, AI-driven market, combined with robust execution, beardown currency flow, and high risk/reward profile, marque it a compelling buy. At existent levels, the banal offers investors a uncommon accidental to summation vulnerability to a parabolic momentum play underpinned by tangible maturation drivers and semipermanent structural demand, suggesting important upside potential after a imaginable pullback to $200-$250 range while the concern fundamentals stay solid.

Previously, we covered a bullish thesis on Celestica Inc. (CLS) by OrangeEveryday in March 2025, highlighting its beardown presumption successful physics manufacturing and plan solutions and semipermanent request for technological upgrades. CLS’s banal terms has appreciated by astir 202.12% since our coverage. Denis D. shares a akin presumption but emphasizes CLS’s enactment successful AI/data center infrastructure and accelerated maturation successful Hardware Platform Solutions.