Celestica: 4 Reasons To Keep Buying More (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Celestica Inc. delivered a blowout Q2 FY 2025, with a higher-than-usual revenue beat-and-raise. Management's FY 2025 outlook seems conservative, and capex trends by hyperscalers can fuel a continued growth bonanza well into FY 2026.
• Celestica's Enterprise sub-segment, which until now has been a drag on revenues, is expected to see a growth inflection over the next few quarters.
• The higher margin hardware platform solutions business continues to outgrow other segments, driving structural margin expansion every quarter. There are no signs of this stopping just yet.
• The monthly technical charts show a powerful bullish trend with zero signs of bearish presence.
• Valuation risk is rising as CLS stock gets more expensive, but this is a risk worth taking given impressive operating momentum and the backing of fundamentals in the price surges due to upward revisions on normalized EPS estimates.

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