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

Is CLS a bully banal to buy? We came crossed a bullish thesis connected Celestica Inc. connected Beating The Tide’s Substack by George Atuan, CFA. In this article, we volition summarize the bulls’ thesis connected CLS. Celestica Inc.'s stock was trading astatine $401.12 arsenic of April 20th. CLS’s trailing and guardant P/E were 56.02 and 44.64 respectively according to Yahoo Finance.

Celestica Inc., unneurotic with its subsidiaries, provides proviso concatenation solutions successful Asia, North America, and internationally. CLS delivered a standout Q4 2025, reporting gross of $3.6 cardinal (+44% y/y), EPS of $1.89 (+70%), and grounds profitability with 7.7% operating margins and 43.1% ROIC, yet the banal fell ~15%, creating what appears to beryllium a mispricing opportunity.

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Growth continues to beryllium driven by its Connectivity & Cloud Solutions (CCS) segment, which present accounts for 78% of gross and grew 64%, fueled by hyperscaler demand for AI infrastructure, including 800G networking and next-generation compute programs. The institution besides confirmed its strategical concern with Google remains intact, positioning Celestica arsenic a cardinal manufacturing spouse for TPU systems, portion caller concerns astir bid shifts were clarified arsenic capacity-driven alternatively than request weakness.

A large absorption is the company’s assertive $1 cardinal capex program for 2026, a fivefold summation aimed astatine expanding planetary accumulation capableness to conscionable strong, disposable demand. While this raised capitalist concerns, absorption emphasized that the concern is backed by committed lawsuit request and volition beryllium funded done operating currency flow, supported by beardown escaped currency procreation and precocious returns connected capital. Additionally, Celestica raised its 2026 outlook to $17 cardinal successful revenue, implying continued beardown growth, peculiarly successful AI-driven segments, contempt blimpish guidance assumptions astir imaginable proviso constraints.

Fears astir slowing growth, AI capex fatigue, and lawsuit attraction look overstated, as hyperscaler demand remains robust and semipermanent AI infrastructure concern continues to accelerate. With accordant execution, expanding margins, and beardown lawsuit alignment, Celestica remains well-positioned to payment from a multi-year AI supercycle, making the caller banal diminution look disconnected from underlying fundamentals.

Previously, we covered a bullish thesis on Celestica Inc. (CLS) by OrangeEveryday in March 2025, which highlighted the company’s relation successful physics manufacturing, accordant request for technological upgrades, and risks astir lawsuit attraction and macro pressures. CLS’s banal terms has appreciated by astir 347.77% since our coverage. George Atuan, CFA shares a akin presumption but emphasizes connected AI-driven growth, hyperscaler demand, and capableness expansion.