Should I buy CLS stock in 2025?

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At HelloSafe, our expert has been monitoring the performance of CLS for over three years. Every month, hundreds of thousands of users across Canada rely on us to explain market trends and highlight the best investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never received, and will never accept, any compensation from CLS.

What is CLS?

How much is CLS stock?

The price of CLS stock is rising this week. As of now, CLS shares are trading at $87.05, down 3.22% over the past 24 hours but up 3.22% for the week. The company holds a market capitalization of $9.82 billion, with an average trading volume of 5,224,962 shares over the past three months. CLS is valued at a P/E ratio of 23.84, currently does not pay a dividend, and has a stock beta of 2.11—indicating higher than average price swings. With its strong growth and recent outperformance, CLS presents dynamic potential but remains subject to notable volatility for Canadian investors.

Our full analysis on CLS stock

After a rigorous review of Celestica Inc.’s (CLS) latest financial results and assessment of its stock performance over the past three years, our proprietary algorithmic models—integrating an advanced blend of financial indicators, technical signals, market context, and competitive benchmarks—suggest that CLS is exhibiting robust momentum and potentially attractive entry characteristics. Drawing on up-to-date data from diverse sources, key metrics point to a strengthening profile supported by both operational excellence and sector tailwinds. So, why might CLS stock once again become a strategic entry point into the global technology manufacturing sector in 2025?

Recent Performance and Market Context

Celestica’s share price has been on a remarkable trajectory. As of April 30, 2025, CLS trades at $87.05, representing a 96.98% increase over the last twelve months—substantially outperforming major market indices and nearly doubling investor returns in just a year. Even in the most recent six-month period, the stock is up 22.31%, underscoring ongoing momentum. Short-term volatility, such as a -3.22% intraday move, is expected given the stock’s high beta (2.11), but weekly gains of +3.22% highlight sustained investor confidence.

Several positive developments underpin this performance. Most notably, CLS delivered Q1 2025 results that exceeded the high end of its own guidance, prompting management to upgrade full-year revenue and adjusted EPS targets. The company’s aggressive buyback of 0.6 million shares for $75 million in Q1 is another sign of management’s conviction and a positive signal for shareholders, as it demonstrates a belief in intrinsic value and fortifies per-share metrics.

From a macro perspective, Celestica is strategically embedded in the secular growth of digital infrastructure, cloud computing, and AI—a sectoral backdrop driving accelerating demand for electronic manufacturing services and advanced hardware platforms. As digital transformation penetrates further into enterprise and industrial verticals, Celestica is uniquely poised to capture value at the intersection of innovation and mission-critical supply chain execution.

Technical Analysis

Technically, CLS provides a nuanced yet mainly constructive setup for investors considering new positions. The Relative Strength Index (RSI 14) at 51.71 indicates a balanced market—not yet overbought, nor oversold—creating a favourable environment for the stock to resume upward momentum after recent consolidation. The Moving Average Convergence Divergence (MACD) shows a mild sell signal (-0.16); however, this should be weighed against the broader technical consensus that skews bullish (10 Bullish, 5 Neutral, 7 Bearish indicators).

The price stands comfortably above both the 20-day ($80.46) and 200-day ($79.08) simple moving averages, signalling mid- and long-term bullishness and confirming the resilience of the recent rally. The proximity to key support levels ($82.92, $81.88, and $80.48) provides an additional buffer, while resistance at $88.14 and $90.58 defines potential breakout zones. Notably, the 1-month high of $95.22 presents an achievable target if buying momentum intensifies.

Short- and medium-term technical momentum appears constructive, with the pullback below the 50-day ($90.66) and 100-day ($98.51) averages likely to represent technical digestion rather than an outright reversal. Such consolidations typically create new bases for advances, particularly when accompanied by positive fundamental undercurrents.

Fundamental Analysis

Celestica’s fundamentals continue to strengthen, highlighting a disciplined pursuit of both growth and margin expansion. Q1 2025 revenue grew by an impressive 20% year-over-year, reaching $2.65 billion—a strong acceleration relative to industry peers. Segmental performance reaffirms this trend: the Connectivity & Cloud Solutions (CCS) division posted 28% growth, with Hardware Platform Solutions revenue surging by 99% year-over-year, underlining effective targeting of high-growth end-markets.

The company’s record adjusted operating margin of 7.1% in Q1, up from 5.9% a year ago, demonstrates improving operational discipline and efficiency. Adjusted EPS climbed to $1.20 (from $0.83 YoY), while GAAP EPS held steady at $0.74, all exceeding expectations and validating management’s strategy. Although GAAP earnings from operations as a percentage of revenue dipped to 4.9% (from 5.7% YoY), the context reveals ongoing investments to support future growth—a tradeoff often evident in rapidly expanding technology firms.

Valuation remains compelling. At a trailing P/E of 23.84, CLS trades below many peers in the aerospace, cloud infrastructure, and electronics manufacturing space, especially considering its current revenue trajectory and robust medium-term guidance. While the absence of a dividend means the stock leans more toward growth and capital appreciation, Celestica’s expanding market share, deep integration with hyperscalers and cloud providers, and growing brand equity all argue for a valuation re-rating as operational execution continues.

Structurally, Celestica possesses several competitive advantages:

• Geographically diversified operations covering North America, Europe, and Asia
• Advanced engineering and product design capabilities
• Partnerships with global leaders in cloud, health tech, defense, and industry
• Proven supply chain resilience and scalability, crucial in today’s environment

Volume and Liquidity

Market confidence in CLS is further reflected in its elevated liquidity profile. Average daily trading volume stands at approximately 5.2 million shares—well above typical thresholds for mid-to-large-cap technology companies—ensuring efficient entry and exit for all investor profiles. The recent buyback not only tightens the float, supporting higher per-share valuations, but also limits downside potential and can amplify positive momentum during periods of sustained buying.

The dynamic float and active trading ecosystem foster stability and price discovery, encouraging institutional investor participation and reinforcing CLS’s position as a liquid growth vehicle in both Canadian and U.S. markets.

Catalysts and Positive Outlook

Several forward-looking catalysts further support a bullish outlook for CLS:

• Raised 2025 Financial Guidance: Following a beat in Q1, management lifted its revenue target to $10.85 billion and adjusted EPS guidance to $5.00, indicating confidence in continued acceleration.
• Secular Demand for Cloud and AI: CLS’s exposure to hyperscalers and high-growth technology verticals positions it at the heart of two megatrends—cloud infrastructure buildout and the adoption of artificial intelligence supporting demand for advanced manufactured solutions.
• Product and Segment Expansion: The extraordinary 99% YoY growth in Hardware Platform Solutions highlights both catalysts (new product rollouts, customer wins) and Celestica’s increasing relevance to mission-critical technological infrastructure.
• Strategic Innovation: Ongoing investments in design, engineering, and value-added integration deepen customer “stickiness” and drive high-margin contracts.
• Potential ESG Trajectory: While not specifically highlighted in this set of results, Celestica’s global footprint and operational scale position it to benefit as customers demand greater environmental and social accountability from supply chain partners.
• Active Capital Return: Beyond buybacks, management’s willingness to optimize capital allocation is a signal of growing maturity and alignment with shareholder interests.

Upbeat market sentiment, as reflected by positive technical consensus and several upward analyst revisions post-Q1, sets an auspicious tone for the remainder of 2025.

Investment Strategies

For investors determining optimal entry points, CLS appears to offer multiple compelling scenarios:

Short-term

• The recent pullback toward first support ($82.92–$81.88) may offer an ideal “buy-the-dip” setup given proximity to both technical support and the 20-day and 200-day moving averages. Investors seeking quick upside may focus on the $88.14 and $90.58 resistance levels as initial targets should bullish momentum resume.

Medium-term

• Consolidation below the 50- and 100-day moving averages can often mark the final phase of basing before a renewed uptrend, especially as the Q2 earnings release approaches with strong guidance in place. A break above $90.58 could catalyze a move toward the previous 1-month high at $95.22.

Long-term

• Celestica’s multi-year transformation, its deepening presence in next-generation infrastructure, and continued upward earnings revision cycle present an attractive case for patient capital. Current valuation still lags potential, especially if margin improvement continues and new contracts are secured in strategic growth markets. The absence of a dividend directs focus toward capital gains, well-suited for growth-focused portfolios.

Overall, entry at present levels combines technical, fundamental, and strategic strengths, especially when considering the next wave of digital infrastructure investments set to sweep through the global economy.

Is It the Right Time to Buy CLS?

In summary, CLS stands out as a technology stock with proven operational merit and significant upside potential. The company’s consistent outperformance—evidenced by double-digit revenue growth, margin expansion, and decisive management actions—underscores a compelling investment profile. Robust trading liquidity, a program of active buybacks, and a rising earnings outlook reinforce fundamental strengths. Sector-wide tailwinds in cloud and AI, coupled with innovative product development and global reach, suggest that Celestica is entering a new phase of growth.

While volatility remains a feature of the stock—due to its elevated beta and some margin variability—the combination of technical support, positive forward guidance, and a clear path to continued competitive gains seems to represent an excellent opportunity for investors seeking exposure to technology manufacturing’s next chapter. Fundamental improvements, alongside sustained demand and a bullish sector context, justify renewed interest and strategic portfolio consideration.

As the market anticipates further growth in cloud computing, AI infrastructure, and mission-critical electronics, Celestica emerges as a well-positioned Canadian leader with significant room for upward revaluation. For investors aiming to participate in the technology sector’s expansionary wave, CLS deserves to be on any shortlist of dynamic and credible opportunities with both near-term catalysts and enduring long-term drivers.

In a transformative era for the digital economy, Celestica seems set to deliver growth and value—and may indeed represent an optimal entry point for those seeking to benefit from the next evolution in technology manufacturing.

How to buy CLS stock in Canada?

Buying Celestica (CLS) stock online is both simple and secure when you use a regulated broker in Canada. Modern trading platforms offer user-friendly interfaces and strong protections for your funds. You can invest directly through a spot (cash) purchase, becoming a shareholder, or use Contracts for Difference (CFDs) to speculate on price movements with leverage. Both approaches are accessible to everyday investors, each with their advantages, risks, and fee structures. Before investing, be sure to compare leading brokers—our detailed comparison is available further down this page to help you choose the best fit.

Spot buying

A cash purchase of CLS stock means buying actual Celestica shares via your trading account with a licensed broker. As a shareholder, you own part of the company and can benefit directly from any rise in the share price or future dividends (note: at present, CLS does not pay a dividend). Brokers typically charge a fixed commission per purchase; in Canada, this fee is often around CAD $5 per order.

Example

If the CLS share price is $87.05 USD (about $118 CAD with current exchange rates), a $1,000 CAD investment would allow you to buy approximately 8 shares, factoring in a brokerage fee of about $5 CAD.

Gain scenario: If the share price rises by 10%, your 8 shares are now worth about $1,100 CAD.
Result: +$100 gross gain, or +10% on your investment.

Trading via CFD

CFDs (Contracts for Difference) let you speculate on CLS share price movements without actually owning the underlying shares. Trading CFDs typically involves a “spread” fee (small difference between buy and sell prices) and an overnight financing cost if you keep positions open beyond the trading day. CFDs also enable leverage, allowing you to control a larger position with less capital.

Example

You deposit $1,000 CAD as margin and open a CFD position on CLS shares using 5x leverage. This means you access market exposure worth $5,000 CAD.

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

Final advice

Before investing in CLS, it’s essential to compare the fees, trading conditions, and features offered by the most reputable brokers in Canada. Some favour lower commissions, while others provide advanced platforms or support for CFD trading. Ultimately, your choice should depend on your objectives, investment style, and preferred level of risk. For a clear comparison of brokers, see our table further down the page to help you make an informed decision.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1Recommended Offer

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying CLS stock

The latest news about CLS

Celestica reported outstanding Q1 2025 results, with 20% year-over-year revenue growth and record adjusted operating margin. Released on April 24, 2025, the first quarter results showcased revenues of $2.65 billion (up from $2.21 billion in Q1 2024), with adjusted EPS reaching $1.20, marking a substantial increase over last year’s $0.83. The company’s adjusted operating margin hit an all-time high of 7.1%, versus 5.9% a year earlier. This strong execution was most pronounced in the Connectivity & Cloud Solutions (CCS) segment, which grew revenue by 28% year-over-year and benefitted from approximately $1 billion in hardware platform solutions—reflecting a remarkable 99% increase. This momentum exceeded both revenue and EPS guidance, reinforcing Celestica’s robust position within the fast-expanding cloud and AI infrastructure sectors highly relevant for Canadian investors and the broader North American tech ecosystem.

Following the strong Q1, Celestica raised its full-year 2025 outlook, citing accelerating demand in cloud and hardware segments. Management’s revised guidance projects annual revenue of $10.85 billion and adjusted EPS of $5.00, both raised from prior targets of $10.7 billion and $4.75, respectively. This upward revision follows pronounced growth in key end-markets and demonstrates confidence in the company’s ability to capitalize on industry tailwinds, especially in cloud computing and AI—a rapidly growing area with strategic implications for Canada’s technology sector. The guidance revision sends a positive signal to the market, indicating sustained demand and operational strength well into the year.

Celestica further demonstrated confidence by executing a $75 million share repurchase in Q1 2025. By buying back 0.6 million shares for cancellation, management not only signaled its belief in the intrinsic value of the company but also took a shareholder-friendly step, reducing share count and potentially enhancing future per-share performance metrics. Share buybacks are especially notable for Canadian-listed companies cross-trading in the U.S. market, as they reflect solid cash generation and prudent capital allocation, both crucial factors for domestic and international institutional investors increasingly interested in the Canadian tech manufacturing space.

Technical analysis reveals continued positive momentum, with the stock trading above key short- and long-term moving averages. As of April 30, 2025, shares traded at $87.05, up more than 96% over the last 12 months and 22% over six months. The stock price is notably above the 20-day and 200-day simple moving averages, which are bullish indicators, even as it sits just below the 50-day and 100-day levels. Technical consensus remains largely positive based on a majority of bullish signals, reflecting strong market sentiment. Such technical strength, especially as the company’s primary listing is in New York but its headquarters and operations remain rooted in Toronto, offers a compelling narrative for Canadian analysts monitoring cross-border capital flows and sector leadership.

Celestica’s strategic positioning and operational scale in Canada continue to drive its relevance and impact in the domestic economy. Headquartered in Toronto and employing over 21,900 people, Celestica is a major player not just globally but within Canada’s technology and manufacturing ecosystem. Its sustained investment in advanced manufacturing, cloud, and AI solutions aligns with national innovation strategies and strengthens key supply chains, benefiting regional researchers, suppliers, and workforce development. With broad exposure to sectors vital to Canadian growth—including aerospace, defense, and health technology—Celestica’s ongoing performance and upward outlook signal ongoing positive momentum for both national and international stakeholders.

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.