Stock market investing, especially when markets worldwide are on the rise, seems like an exciting opportunity. However, many Canadians are wary of throwing money into the stock market. Back before the pandemic and right after the pandemic-induced downturn, it seemed like you could invest in just about anything and get amazing returns.
Those days are a thing of the past, and finding high-quality investments with reliable returns has become increasingly difficult. While difficult, it isn’t impossible to find amazing investments on the market. There still are diamonds shining much more than most other investments available on the market right now.
One such investment that aligns with the growing artificial intelligence (AI) trend is Celestica (TSX:CLS). Today, we’ll take a closer look at the Canadian tech stock that I feel should be part of every self-directed investment portfolio.
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Celestica
Celestica is a $38.68 billion market capitalization Canadian tech company offering supply chain solutions. The company has been catering to a growing need for improved supply chains worldwide by offering advanced tech-based solutions to streamline operations for its clients. The demand has been there for a while, and based on the company’s performance, it shows that it is fulfilling it.
During the recent earnings for the second quarter of fiscal 2025, Celestica reported a 21% year-over-year surge. The surge blew past analyst expectations and the company’s own anticipated revenue and earnings per share. Beyond that, the stock raised its financial outlook for the fiscal year based on the terrific numbers. The company expects more revenue and earnings growth due to the strong demand, especially from its Connectivity & Cloud Solutions segments.
Up by 500%
As of this writing, Celestica stock trades for $336.26 per share, up by over 500% from its 52-week low. Based purely on the aspect of getting multi-bagger returns, it might be enough to signal a strong buy for investors interested in high-growth stocks. That said, past growth isn’t necessarily indicative of future gains. However, Celestica might have a case to be a strong buy despite already delivering substantial growth over the last 12 months.
Celestica is an increasingly efficient company, improving its operational profitability. The improvement in performance, coupled with more growth opportunities, can make it an attractive investment to consider at current levels. The company has shown strength in designing, manufacturing, and supply chain solutions. As emerging markets need more and more of these solutions, Celestica stands ready to deliver. In turn, it has the potential to drive far more growth for its investors.
Foolish takeaway
While it might not be possible to see five-fold returns by investing in its shares at current levels, it does not mean Celestica stock will be a bad investment right now. It can be a solid investment at current levels for several reasons. The company’s strong financial results are a big factor, and so is the investor outlook. At a time when it is not entirely clear where to invest on the TSX, Celestica offers the picture-perfect opportunity for a safe and stable investment. It is important to remember that stock market investing is inherently risky, and you must never put all your eggs in one basket. However, if you are willing to stomach the risk, it can be an excellent holding to consider for growth-seeking investors with well-balanced portfolios.
