Should I buy Celestica stock in 2025?

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At HelloSafe, our expert has been closely following Celestica’s performance for more than three years. Every month, hundreds of thousands of Canadians rely on us to make sense of market trends and highlight the top investment opportunities. Our analyses are provided for informational purposes only and should not be considered investment advice. As part of our ethical charter, we have never received, and will never receive, any compensation from Celestica.

What is Celestica?

How much is Celestica stock?

The price of Celestica stock is falling this week. As of today, the TSX-listed shares of Celestica are trading at $120.48 CAD, down 0.635% in the last 24 hours and down 3.97% over the past week.

A beta of 2.10 indicates that the share price is more volatile than the broader market. This volatility suggests investors should be mindful of potential sharp price swings, but also of opportunities that come with active trading environments.

Our full analysis on Celestica stock

Having systematically reviewed Celestica’s Q1 2025 financial results, analyzed its price evolution over the past three years, and integrated technical, fundamental, and comparative market data through our proprietary analytical framework, a clear picture emerges of an EMS (Electronic Manufacturing Services) powerhouse on the rise. Celestica’s journey—underscored by robust revenue expansion, decisive margin improvement, and sector-defining participation in AI and cloud infrastructure—invites a timely re-examination. So, why might Celestica stock once again become a strategic entry point into the technology sector in 2025?

Recent Performance and Market Context

Celestica’s stock (CLS) has delivered an exceptional performance—up nearly 97% in USD and 102% in CAD over the past twelve months—a testament to both sector tailwinds and company-specific execution. This rally has not occurred in isolation: since late 2022, Celestica has benefited from relentless demand for cloud and AI hardware platforms, outpacing most of its EMS peers.

Notably, the company’s Q1 2025 delivered revenue of $2.65 billion (up 20% YoY), beating consensus estimates and providing management the conviction to raise guidance for the remainder of 2025. Such results reinforce investor confidence that Celestica is capturing a disproportionate share of secular growth within cloud and next-gen computing.

Industry dynamics further amplify this opportunity: the EMS sector is entering a new growth cycle, propelled by the heightened need for resilient supply chains and a marked acceleration in data infrastructure buildouts. Canada’s favorable regulatory climate for tech manufacturing and ongoing North American investment flows position Celestica to harness macroeconomic momentum. The ongoing transition toward cloud-centric architectures and AI-driven applications reinforces a lasting demand cycle for Celestica's core solutions.

Technical Analysis

From a technical perspective, Celestica displays a classic bull market structure punctuated by a calculated consolidation. The stock currently sits at $84.69 USD ($120.48 CAD), having pulled back 3.97% in the past week and 2.72% in the last session—a typical, healthy retracement following an explosive 1-year gain.

• Moving Averages: CLS trades well above the 50-day ($98.53) and 100-day ($79.58) moving averages, while also confidently above its 200-day benchmark, underscoring strong medium- and long-term momentum despite the short-term correction.
• Momentum Indicators: RSI reads 53.77—firmly neutral, offering flexibility for renewed upward movement. MACD at -0.70 points to moderate short-term cooling, but the absence of a sustained negative divergence echoes resilience.
• Support and Resistance: Critical support rests at $81.88 USD ($115.90 CAD), while immediate resistance is observed at $85.71 USD ($128.78 CAD). This technical tableau suggests consolidation around support—with potential for robust upward reversal should buying demand resurge.
• Structure: The overall pattern is consistent with profit-taking at new highs, setting the stage for a technically favorable re-entry point as momentum stabilizes.

Current chart dynamics, when combined with underlying secular trends, indicate an attractive setup for those seeking exposure at technically sensible levels with minimized downside risk.

Fundamental Analysis

Celestica’s financial strength and operational agility deliver a compelling case for renewed interest:

• Revenue Growth: 20% YoY in Q1 2025—well above EMS industry averages—reflects both organic expansion and sustained demand depth, especially within its high-value CCS segment (Connectivity & Cloud Solutions, up 28% YoY).
• Profitability: Adjusted operating margin climbed to a record 7.1% (from 5.9% a year earlier), with adjusted EPS up to $1.20 (from $0.83)—demonstrating scalable operational leverage.
• Valuation: At a P/E of 23.75 and a Price/Sales of 1.02, Celestica trades at a justified premium relative to its peers, with analysts calling for approximately 30% upside from current levels ($119.67 USD target).
• Balance Sheet: Conservative capital allocation is evident through measured share repurchases (0.6 million shares for $75 million in Q1), with free cash flow forecasted at a robust $350 million for 2025.
• Structural Advantages: Leadership in emerging technologies (AI, cloud computing), expanding global operations, and a sterling reputation for supply chain reliability all underscore Celestica’s market resilience. The company’s ability to rapidly scale high-margin product streams further augments its long-term earnings power.

In sum, Celestica’s fundamentals justify sustained investor attention, positioning it at the intersection of growth and operational discipline.

Volume and Liquidity

Trading liquidity serves as a strong signal of institutional confidence. CLS’s current daily volume stands at 2.55M shares (65-day avg: 5.58M). This level of activity provides not only efficient execution for large investors but also underlines market trust in Celestica’s trajectory.

• Float Characteristics: With a well-dispersed and actively traded float, Celestica’s shares offer sufficient liquidity for both individual and institutional strategies—supporting dynamic and responsive valuation as new information emerges.
• Volume as Confidence: Sustained volume through rallies and retracements reflects a deep, conviction-driven investor base willing to accumulate on weakness and ride positive catalysts.

Such liquidity metrics often precede periods of renewed interest and momentum-driven rallies, shaping an ideal environment for fresh capital deployment.

Catalysts and Positive Outlook

Looking ahead, Celestica’s growth narrative is punctuated by several powerful bullish catalysts:

• AI and Cloud Infrastructure Boom: The company's Hardware Platform Solutions revenue has surged nearly 100% YoY—a clear proxy for surging AI infrastructure rollout and cloud datacenter investment.
• Operational Discipline: Management’s consistent ability to beat and raise guidance, coupled with improving margins, is a rarity in the EMS sector and signals untapped value.
• Innovation Pipeline: Celestica’s increased focus on design-led engineering and end-to-end supply chain orchestration positions it at the vanguard of next-gen EMS. Ongoing ESG commitments and automation initiatives will further enhance margin and sustainability.
• Strategic Share Repurchases: Active buybacks evidence not just boardroom conviction but also a tactical focus on shareholder value creation.
• Industry and Regulatory Tailwinds: As the global appetite for secure, resilient manufacturing grows, Celestica’s North American base and diversified capabilities make it a favoured partner for hyperscalers and OEMs amid evolving international trade policies.

The convergence of sectoral transformation, operational excellence, and strategic agility collectively supports an optimistic medium- and long-term view on Celestica’s growth arc.

Investment Strategies

Depending on time horizons and risk preferences, several portfolio strategies stand out:

• Short-Term: For active investors, recent technical support holds at $81.88 USD/$115.90 CAD may present a timely window for tactical positioning. The normalized RSI and post-correction stabilization could spur a technical rebound in the coming sessions.
• Medium-Term: Those seeking 6- to 12-month exposure may see benefit in aligning positions ahead of Q2 and Q3 earnings—both of which are likely to reinforce upward revisions if current growth trajectories persist. The next earnings call in July 2025 stands as a significant event-driven opportunity.
• Long-Term: For fundamental, long-view investors, Celestica’s ongoing transformation—anchored in AI, cloud, and supply chain leadership—arguably makes today’s level an attractive entry into a multi-year secular growth story. The firm’s strong free cash flow outlook, prudent buyback program, and operational scalability provide durable tailwinds.

In all cases, positioning at or near current technical support enhances risk/reward balance while embedding the option to scale exposure as future catalysts play out.

Is it the Right Time to Buy Celestica?

Evaluating Celestica through a composite lens of momentum, valuation, and future growth potential, several key strengths become evident:

• Growth Leadership: Outpaces EMS sector averages, with AI/cloud catalysts just beginning to play out.
• Operational Excellence: Record-high margins and consistent execution signal lasting earnings power.
• Attractive Technical Setup: A healthy correction has reset momentum indicators, while long-term trendlines remain bullish.
• Catalysts on the Horizon: Upcoming earnings, sectoral investment, and regulatory context all converge to support another phase of upside.
• Conviction from Within: Management’s buyback activity and upward guidance revisions provide strong internal validation.

Taken together, these elements suggest that Celestica, at today’s valuation and technical juncture, seems to represent an excellent opportunity for investors who recognize the confluence of secular growth, operational outperformance, and favorable market structure. While short-term volatility remains possible as recent gains digest, the company’s financial momentum, leadership positioning, and exposure to technology megatrends collectively justify a keen focus from both new and existing investors.

For those seeking exposure to a Canadian technology leader at the nucleus of global digital transformation, Celestica may be entering a new bullish phase worth serious consideration—with its next earnings cycle poised to unlock even greater conviction for the buy-side.

How to buy Celestica stock in Canada?

Buying Celestica stock online has never been easier or safer for Canadian investors. Through a regulated online broker, you can purchase Celestica shares securely and manage your portfolio from home. You have two main options: spot buying (owning the physical shares) or trading Contracts for Difference (CFDs), which let you speculate on price movements without owning the asset. Each route has its own advantages, and your choice will depend on your investment objectives and risk appetite. For a detailed broker comparison to help you choose the best platform, see our table further down this page.

Spot Buying

When you buy Celestica stock “spot” (on a cash basis), you become a direct shareholder in the company. This involves purchasing shares on the Toronto Stock Exchange (TSX) or New York Stock Exchange (NYSE) through your broker. Most Canadian brokers charge a fixed commission per transaction, typically between $5 and $10 CAD.

Concrete example

Suppose Celestica stock is trading at $120.48 CAD on the TSX. With a $1,000 investment and a $5 brokerage fee, you can purchase approximately 8 shares:
($1,000 – $5 fee) / $120.48 ≈ 8 shares.

✔️ Gain scenario:
If the share price rises by 10%, your 8 shares would be worth about $1,100 (8 × $132.53).
Result: +$100 gross gain, or +10% on your initial investment.

Trading via CFD

CFD trading lets you speculate on Celestica’s price movements without actually owning the shares. You can trade both upward and downward trends, and leverage is available to increase your exposure. With CFDs, fees include the spread (the difference between buy and sell price) and overnight financing costs if you hold positions beyond a day.

Concrete example

You open a CFD position on Celestica with $1,000 and use 5x leverage, giving you market exposure of $5,000.

✔️ Gain scenario:
If the stock price rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain on your $1,000 stake (before any fees or spreads).

Final Advice

Before investing, it’s essential to compare brokers’ fees, trading platforms, and support services. Your choice of method—direct share ownership or CFD trading—should fit your financial goals, risk profile, and investment timeline. For detailed comparisons to help you select the right broker, check out our comprehensive table below. Always invest wisely and review all terms before making your decision.

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Our 7 tips for buying Celestica stock

The latest news about Celestica

Celestica raised its full-year 2025 financial guidance following robust Q1 results that exceeded expectations. The company reported a substantial revenue increase of 20% year-over-year in Q1 2025, reaching $2.65 billion and surpassing its previous guidance. Notably, adjusted operating margin improved to a record 7.1%, up from 5.9% a year prior, and adjusted EPS grew from $0.83 to $1.20. Management attributed this outperformance to strong momentum, especially in the Connectivity & Cloud Solutions segment, and in response, raised the outlook for revenue, margins, and EPS for the full year. This positive revision was officially communicated in the Q1 results issued on April 24, 2025, demonstrating executive confidence in the company’s ongoing operational and market strength—a particularly meaningful signal for Canadian analysts given Celestica’s Toronto headquarters and regional leadership.

The company’s rapid expansion in AI and cloud datacenter hardware continues to be a major growth engine, with direct benefits for the Canadian tech ecosystem. Driven by surging demand for AI and cloud infrastructure, revenue from Hardware Platform Solutions within the CCS segment soared nearly 99% year-over-year in the latest quarter. This area of strength aligns with broader national trends, as Canada positions itself as an emerging hub for cloud and AI innovation, and Celestica’s supply chain, design, and hardware delivery capacity are increasingly valuable to both global and Canadian hyperscaler customers. The performance of this segment underscores Celestica’s importance within strategically significant sectors for Canada’s technology markets.

Celestica maintained its commitment to returning value to shareholders, repurchasing approximately $75 million of shares in Q1 2025. The company’s active share repurchase program signals both confidence in its future prospects and a dedication to disciplined capital allocation. For Canadian investors, this buyback—representing 0.6 million shares retired during the quarter—reinforces the message that management sees current share valuation as attractive. While Celestica does not pay a dividend, its repurchases serve as an alternative means of enhancing shareholder value for investors on both the TSX and NYSE.

Celestica’s stock is showing a short-term correction, but remains in a long-term bullish trajectory, attracting professional attention across Canadian capital markets. After a year of stellar performance—doubling its share price on the TSX—and trading well above its 50-, 100-, and 200-day moving averages, Celestica shares have recently seen a minor pullback (about -4% week-over-week) alongside lighter trading volume. Technical indicators, including a neutral RSI and a small negative MACD, suggest a pause or consolidation phase rather than a reversal. Market participants are closely monitoring the key TSX support level of $115.90 CAD, as stability here could serve as a new base for further gains. The recent price action remains of high interest among Canadian institutional investors and traders seeking entry points aligned with the long-term uptrend.

Industry analysts covering Canada now forecast significant upside for Celestica’s stock, with a consensus target of approximately 30% above current prices. Despite near-term volatility, the analyst community maintains positive expectations, with the consensus price target at $119.67 USD (approximately $163 CAD), signaling potential for further appreciation. This outlook, combined with Celestica’s upgraded guidance, strong balance sheet, and improving operational metrics, positions the stock as one of the more compelling technology plays on the TSX. For Canadian analysts and asset managers, these forecasts support the thesis that Celestica remains an attractive option for participants aiming to capitalize on Canada’s expanding role in the global tech supply chain.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.