Why Celestica (CLS) Stock Offers a High-Probability 43% Return in 2026

Celestica Inc. (CLS) has emerged as a pivotal player in the AI-driven infrastructure revolution, positioning itself to deliver a compelling 43% return by 2026. This projection is underpinned by robust financial performance, a surge in demand for AI data center solutions, and a favorable options market environment. By combining these fundamentals with strategic options-based bullish approaches, investors can capitalize on CLS's high-growth trajectory.

AI-Driven Growth Momentum: A Catalyst for Revenue Expansion

Celestica's business model is deeply intertwined with the global shift toward AI and high-performance computing. The company's Q3 2025 results underscore this momentum, with revenue surging 28% year-over-year to $3.19 billion and non-GAAP adjusted EPS reaching $1.58-well above guidance-driven by strong demand for AI data center infrastructure according to Q3 2025 financial results. Looking ahead, Celestica has raised its 2026 revenue forecast to $16.0 billion, a 44% increase from its trailing 12-month sales, reflecting an upgraded consensus from 15 analysts who now project a 34% annualized revenue growth rate for the period as analysts report. This acceleration far outpaces both the company's five-year historical growth rate of 15% and the industry average of 25% according to market analysis.

The AI infrastructure market's explosive growth is a critical tailwind. Celestica's partnerships with leading hyperscalers and semiconductor firms position it to benefit from the ongoing deployment of AI servers and cooling systems, which require specialized manufacturing and logistics expertise. Analysts note that the company's ability to scale production for advanced AI chips and modular data center solutions will remain a key differentiator in 2026 as financial results indicate.

Financials and Valuation: Justifying Elevated Multiples

Despite Celestica's current P/E ratio of 52.74-228% above its 10-year average of 15.88-the stock's valuation appears justified by its growth prospects according to financial analysis. The forward P/E ratio of 38.76 suggests that the market anticipates earnings to catch up with the company's revenue expansion, particularly as AI-driven margins stabilize as reported by Yahoo Finance. Historical volatility data further highlights CLS's dynamic nature, with a 52-week price range of $58.05 to $363.40 and a 30-day historical volatility of 58.11% as of January 12, 2026 according to key statistics. This volatility, while risky, creates opportunities for options strategies that can amplify returns.

Celestica's beta coefficient of 2.42 underscores its heightened sensitivity to market movements as market data shows. In a rising market environment, this volatility could amplify gains, making CLS an attractive candidate for leveraged plays. However, the stock's beta has fluctuated, with a reading of 1.43 reported as recently as January 13, 2026, indicating potential mean reversion in risk profile according to GuruFocus data.

Option-Based Bullish Strategies: Leveraging Volatility and Momentum

The options market for CLS reflects strong conviction in its 2026 outlook. For instance, call options with a $300 strike price exhibit an implied volatility of 54.93%, while puts at the same strike show 51.66% according to options data. These elevated levels suggest that traders expect significant price movement, particularly to the upside. High open interest in $300 calls and puts further validates this strike as a focal point for market sentiment as options data shows.

Investors seeking to capitalize on this environment might consider the following strategies:
1. Long Call Options: Buying calls with a $300 strike (or slightly out-of-the-money strikes for lower premiums) allows investors to leverage CLS's volatility while capping downside risk. Given the stock's beta and AI-driven growth, a 43% price appreciation by year-end would yield substantial returns on these options.
2. Covered Calls: For those holding CLS shares, selling calls against a position can generate income while benefiting from the stock's upward trajectory. The high implied volatility ensures attractive premium yields.
3. Straddles/Strangles: These volatility-based strategies profit from large price swings. Given CLS's 52-week range and beta, a straddle near the $300 level could pay off if the stock breaks out or collapses sharply-a scenario plausible in a high-growth, high-beta stock.

Conclusion: A Convergence of Fundamentals and Market Sentiment

Celestica's 43% return projection for 2026 is not merely speculative-it is rooted in a confluence of AI-driven demand, aggressive revenue growth, and a valuation that, while elevated, is supported by forward-looking metrics. The options market's elevated implied volatility and open interest further validate the stock's potential for outsized gains. For investors willing to navigate its volatility, CLS offers a high-probability opportunity to participate in the AI infrastructure boom through both directional bets and strategic options plays.