The world of investing often feels like a rollercoaster. Markets go up and down, and investors look for opportunities to buy quality stocks at lower prices. This strategy, known as “buying the dip,” can be rewarding when done wisely. Two Canadian tech companies, Altus Group (TSX:AIF) and Celestica (TSX:CLS), have recently caught the eye of investors. Both have strong fundamentals and may be poised for a rebound.
Altus
Altus Group, headquartered in Toronto, provides asset and fund intelligence for commercial real estate. The tech stock operates in North America, Europe, and Asia Pacific, employing approximately 2,800 people. Its services include software and data analytics under the Argus brand, as well as property tax, valuation, and cost advisory services. Clients range from large property owners and managers to developers and financial institutions.
In the fourth quarter (Q4) of 2024, Altus Group reported revenues of $135.5 million, marking a 3.4% increase from the same period in 2023. The tech stock’s profit from continuing operations was $22.9 million, a significant improvement compared to a loss of $8.3 million in the previous year. Earnings per share (EPS) from continuing operations were $0.50, up from a loss of $0.18 per share in Q4 2023. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stood at $32.4 million, a 55.4% increase year over year. Plus, it has an adjusted EBITDA margin of 23.9%, up from 15.9% in the prior year. For the full year 2024, Altus Group achieved revenues of $519.7 million, a 2.0% increase from 2023, and adjusted EBITDA of $82.9 million, up 26.1% year over year.
As of writing, Altus Group’s market capitalization was approximately $2.37 billion. The tech stock’s price was also at $51.55 per share, leading to a potentially valuable share price for investors to consider. Over the past year, the stock has experienced fluctuations, but the company’s strong financial performance suggests potential for future growth.
Celestica
Celestica, also based in Toronto, specializes in design, manufacturing, and supply chain solutions for various industries, including communications, enterprise, aerospace, and defence. The tech stock offers products such as switches, storage devices, and processors that address network, storage, and computing needs in data centres.
In Q4 2024, Celestica reported sales of $2.55 billion, a 19% increase from the same period in the previous year. EPS surged 44% to $1.11. Following these strong results, the tech stock raised its 2025 sales outlook to $10.7 billion, up from the previous forecast of $10.4 billion. Analysts anticipate earnings to rise 24% in 2025 to $4.83 per share and 21% in 2026 to $5.86 per share.
As of writing, Celestica’s market capitalization was approximately $14.47 billion, with a stock price of $132.72 per share. Over the past year, the company’s market cap has increased by 115.21%, reflecting strong investor confidence. So, investors may enjoy even more growth from this tech stock.
Bottom line
Investing in tech stocks like Altus Group and Celestica requires careful consideration. While both tech stocks have demonstrated strong financial performance, it’s essential to assess factors such as market conditions, competition, and individual financial goals. Diversifying investments and consulting with financial advisors can help mitigate risks associated with market volatility.
Together, the recent dip in the tech sector presents potential opportunities for investors. Altus Group and Celestica, with their robust financials and market positions, are two Canadian tech stocks that may be primed for a rebound. As always, thorough research and prudent investment strategies are key to navigating the dynamic world of stock markets.
