Celestica Inc (CLS.TO)

CLS traded at a forward P/E of below 10X for years until 2023 when its AI segment began generating significant growth. Its forward P/E has climbed to 24X, and for a company with steady margins and expecting to grow earnings in the 20%+ range for the next couple of years, we believe a forward P/E in the range of 20X to 25X makes sense. A 30X forward multiple could be justified if management guides for higher growth rates and it can execute on expanding its profit margins. Much of this also depends on the sustainability of the AI story and if we eventually witness a CAPEX down cycle for data centers and chips. Overall, we continue to like the name here.
Unlock Premium - Try 5i Free

His 12-month price target is $138, and today we're at $143. Today's reporting is going to have to be pretty spectacular, or it's going to encourage more selling. Up$7 today. He'd take 1/4 or 1/3 off right now.

Makes all kinds of support products for AI chips, if not the chips themselves. For example, all GOOG's data centres use its technology. Totally comfortable owning it now for a 2-3 year ride. Buy high, sell higher.

Lots of opportunity. Ability to monetize AI has really helped customers. Going gangbusters. Runway is far out, both on fundamentals and on price.

He's wanted to own this for a while. They provide supply chain solutions, which is topical. Now, the price is too rich. Earnings are coming up, so wait for that. 

An amazing chart, but be cautious adding at current levels.

Definitely volume on this name. Note that the recent move is parabolic. So you want to look at the stock over its 200-day MA; don't want to see much more than 15%. 15-20% over the 200-day is getting into overbought territory.

Up is good and down is bad, but when you see this kind of an up, expect a pullback. So you draw a new trendline, and the stock will probably retrace close to (if not actually right to) it. A reasonable retracement level might be $110-120, but this is not an iron-clad prediction. Overall trend is up, doesn't see a problem with the chart.

Solid fundamentals. Healthcare solutions will pay dividends going forward. Not a bad valuation for a long-term play over the next 5 years. 

Can't really do technical analysis on a chart like this, as there's no real pattern that's taking place. Doesn't think year-end profit-taking will weigh on the stock.

Pitfalls would include chasing or buying too much. Other risks are not following it and not having a plan. Acceleration is really strong. Good volume along with the buying, which is supportive. Reaching a bit of a limit right now, which may be profit taking, and may pull back to $110. A drop below $105 with a full position is a problem.

It has changed a lot and starting to focus more on helping clients develop new projects. It is riding the AI boom and has just passed the old high from23 years ago. Has had a very low multiple for a long time. It has started to execute better, grow faster and meet expectations. It is quite cheap in terms of tech stocks and should do quite well from a momentum standpoint.

Probably overbought here, up 240% in last 12 months. 21-22x forward earnings, 15-16% EPS growth rate. Not really expensive. Likes it.

Keeps going up. Business has totally morphed into value-added parts in the semiconductor space. Riding the wave of massive growth of all chipmakers. Valuation seems reasonable. Remember that semis are cyclical; ASML, for example, went down 20% yesterday. Hot stocks always have potential to re-rate.

Quite well run, but not ready to be there. His preference is TSM, but its valuation is not attractive either.

He wished he owned this. It's had a big move and is breaking out into new highs. A good momentum play.

Trending higher above the 200-day MA, which itself is moving higher. Watch it in terms of how far the valuation goes. Right now, 15x forward earnings with about a 13% growth rate for 2025, 29% for 2026. Valuation is actually not as expensive as a lot of other tech names, especially in the US. Valuation and technicals look decent.