Celestica Stock May Be The Ultimate GARP Stock To Buy Today

Summary

  • CLS looks like the ultimate AI pick at a reasonable price, unlike many other stocks in this space that have gone up too much recently. Read on.
  • The company's strong financial performance includes increased revenue, improved operating profit margins, and successful Q4 results.
  • Celestica's balance sheet is healthy, with decreasing debt ratios, and the company has a track record of shareholder returns through buybacks.
  • I believe the CLS stock should trade 40% higher than today by the end of 2025, assuming the potential for revenue growth from the hyperscaler market continues and historically high margins are maintained.
  • I'm therefore issuing a buy recommendation today.
  • I do much more than just articles at Beyond the Wall Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Entrance of Celestica Inc. in Newmarket, Ontario, Canada.

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My Thesis

My analysis of Celestica Inc. (NYSE:CLS) leads me to the conclusion that the company is now one of the most attractive investment opportunities related to the artificial intelligence trend - and the stock can still be

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This article was written by

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Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information.

He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CLS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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