Making a lot of money with stock market investing doesn’t mean you must have a fortune to invest freely. If you invest even as little as $500 in the right growth stock, the value of your money can grow substantially over the years. It might seem difficult, but it is not impossible to see your money grow several times over. The key to achieving this is finding and investing in a company with substantial long-term growth potential and the kind of fundamentals to sustain such growth.
Identifying sustainable emerging trends is a good way to direct your search for the right stock. Artificial intelligence (AI) is a space worth exploring right now. AI has come a long way from being a science-fiction concept to being the closest thing to discovering the wheel might have been. The new technology is paving the way for revolutionary changes in every aspect of our lives at a pace that was previously unimaginable.
Celestica (TSX:CLS) might not be the biggest name in the top AI stocks, but it is a prominent TSX-listed tech company that stands to benefit from the AI boom.
Source: Getty Images
Celestica stock
Celestica is a Toronto-headquartered company that operates in the supply chain industry. The $14.92 billion market capitalization company offers supply chain solutions, operating in two primary segments: Connectivity & Cloud Solutions (CCS) and Advanced Technology Solutions (ATS). The company has been delivering a top-notch performance on the stock market in recent years.
As of this writing, CLS stock trades for $125.78 per share, up by almost 2,000% from its share price five years ago. This kind of growth sets a whole different standard for a market-bearing performance. For context, the S&P/TSX Composite Index, which is the benchmark index for the Canadian stock market, has grown by just over 80% in the same period.
The company’s CCS segment is the primary reason behind its remarkable rally over the years. This company segment provides critical hardware to major tech players worldwide. The fourth quarter of fiscal 2024 saw the segment generate US$1.74 billion for the company, reflecting a 30% year-over-year growth. The company’s hardware platform solutions soared by 65% in the same period.
The ATS segment focuses primarily on healthcare, aerospace, and defence segments, and it also contributed to the company’s growth. The segment posted US$810 million in revenue in its last quarterly earnings report. While it might not boast the same growth as the CCS segment, it does contribute to the company’s solid fundamentals. Celestica is also expanding its role in AI-driven networking to reap the benefits of growing AI infrastructure demand worldwide.
Foolish takeaway
Despite posting an impressive growth in the last five years, recent weeks have not been too kind to the stock. As of this writing, Celestia stock is down by 39.11% from its 52-week high in February 2025. It is also important to note that the stock has an elevated 24.38 price-to-earnings (P/E) ratio, which technically makes it an expensive stock.
Typically, such a high P/E ratio should make investors wary of investing in a stock. However, analysts watching the company anticipate that the company will generate an annual 21% growth in the next three years.
Remember, there is always an inherent risk with investing in growth stocks. However, Celestia stock can turn out to be an excellent long-term bet for higher-risk-tolerance investors who have the kind of capital to invest right now.
