Taking Profits in Celestica: A High-Flying Canadian Tech Stock

Celestica (CLS-T) is a Canadian tech stock that has seen significant growth, with shares up 471% since a November 2023 recommendation. The company's revenue increased 20% YoY in Q1, and adjusted EPS rose to $1.20 from $0.83 the previous year. The stock's p/e ratio is now at 44.86, which is high but not outlandish for a tech stock.

Title: Celestica (CLS-T): A Canadian Tech Stock's Remarkable Uptrend

Celestica (CLS-T), a Canadian tech stock, has been a standout performer in the market, with shares soaring 471% since November 2023. The company's impressive growth trajectory is a result of robust financial performance and a strong market position.

In the first quarter of 2025, Celestica reported a 20% year-over-year (YoY) increase in revenue, reaching $2.65 billion, and an adjusted earnings per share (EPS) of $1.20, up from $0.83 the previous year [1]. The company's Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS) segments continue to drive growth, with the ATS segment focusing on aerospace, defense, industrial, healthtech, and capital equipment, while the CCS segment serves enterprise infrastructure markets [3].

The stock's price-to-earnings (P/E) ratio is currently at 44.86, which is high but not out of the ordinary for a tech stock, especially considering that Nvidia is trading at 55 times earnings [1]. Despite the high valuation, the strong fundamentals and positive analyst sentiment have supported Celestica's stock price.

Celestica's recent achievements include hitting an all-time high of $165.50 in May 2025, a remarkable 156.42% increase from a year ago [2]. The company's financial health score is rated "GREAT," indicating strong overall performance and investor confidence [2]. Analysts have revised earnings estimates upward, reflecting their bullish outlook on the company's prospects.

The company's first quarter results and improved revenue and profit guidance have been well-received by investors and financial professionals. Celestica has raised its full-year 2025 revenue outlook to $10.85 billion and increased its adjusted EPS guidance to $5.00 [2]. The stock's performance has been driven by strategic wins, significant contract wins, and a strong competitive position in the tech industry [2].

Celestica's board of directors has also undergone significant changes, with eight directors elected to the company's board, including notable figures like Amar Maletira and Robert A. Mionis [3]. These changes reflect the company's commitment to governance and strategic direction.

In conclusion, Celestica's remarkable performance, strong financial results, and positive analyst sentiment make it a notable stock to watch in the Canadian tech sector. However, investors should be mindful of the stock's high valuation and potential risks associated with the tech industry.

References:
[1] https://www.theglobeandmail.com/investing/markets/inside-the-market/article-its-time-to-take-some-profits-in-this-high-flying-canadian-tech-stock/
[2] https://www.investing.com/news/company-news/celestica-stock-hits-alltime-high-at-1655-usd-93CH-4135970
[3] https://www.stocktitan.net/news/CLS/