To generate strong long-term returns from the stock market, you don’t need to start with a fortune. Even a small investment of $1,000, when placed in the right growth stock, can grow significantly over time. The key is finding a high-quality, fundamentally strong company with solid growth potential and a strong track record.
One Canadian stock, Celestica (TSX:CLS), has absolutely crushed the TSX, surging 1,226% in just three years, compared to the TSX Composite’s 18.8% gain. That kind of performance wasn’t just by chance. In fact, CLS stock’s rally has been triggered by a combination of strong execution, growing demand in key markets, and some seriously impressive financial numbers. In this article, I’ll explain why Celestica could be the smartest stock to buy with $1,000 right now.
What’s driving Celestica stock higher?
One of the biggest reasons behind Celestica stock’s rally could be the ongoing strength of its Connectivity and Cloud Solutions (CCS) segment, which supplies critical hardware to some of the biggest tech players across the globe. This segment alone generated strong revenue of US$1.74 billion in the fourth quarter of 2024, marking a 30% YoY (year-over-year) jump. More importantly, the sales of Celestica’s hardware platform solutions skyrocketed 65% from a year ago.
The company’s Advanced Technology Solutions (ATS) segment, which mainly covers industries like aerospace, defence, and healthcare, posted steady performance with US$810 million in revenue in the latest quarter. While its ATS division didn’t see explosive growth like the CCS segment, it remained a big contributor to the company’s overall strength.
Record financial performance
With strength across segments, Celestica is continuing to smash records. The company finished 2024 with US$9.65 billion in revenue, reflecting a 21% increase from the previous year. Even more impressive, its adjusted earnings for the year surged 58% YoY to US$3.88 per share.
On the profitability side, the company’s adjusted operating margin climbed to 6.8% in the latest quarter from 6.0% a year ago. That means Celestica isn’t just expanding its revenue base but also becoming more efficient and profitable along the way.
Big growth ahead in AI and cloud
Celestica’s growth story is far from over. Last month, the company raised its full-year 2025 revenue outlook to US$10.7 billion from a previous forecast of US$10.4 billion as the demand for artificial intelligence (AI)-optimized hardware continues to surge.
The company is also expanding its role in AI-driven networking as it recently secured its second and third 1.6 terabyte switching program. These projects are expected to ramp up in 2026, which could help Celestica benefit from skyrocketing demand for AI infrastructure.
Why Celestica stock could be the smartest buy right now
Celestica’s solid financials, rising demand for its services, and expanding footprint in AI and cloud computing hardware position it as a winning stock. With triple-digit stock gains over the past year alone and even bigger long-term growth potential, CLS stock could be one of the best Canadian stocks to buy right now with $1,000.
