Canada markets open in 4 hours 9 minutes
  • S&P/TSX

    -210.11 (-0.95%)
  • S&P 500

    -75.65 (-1.46%)
  • DOW

    -475.86 (-1.24%)

    +0.0015 (+0.21%)

    -1.04 (-1.21%)
  • Bitcoin CAD

    +2,713.07 (+3.06%)
  • CMC Crypto 200

    0.00 (0.00%)

    -6.80 (-0.29%)
  • RUSSELL 2000

    -39.43 (-1.93%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • NASDAQ futures

    +114.25 (+0.63%)

    -0.48 (-2.77%)
  • FTSE

    -33.39 (-0.42%)
  • NIKKEI 225

    -290.75 (-0.74%)

    +0.0006 (+0.09%)

Is a Bull Market Here? 4 Reasons to Buy Celestica Stock Like There’s No Tomorrow

A bull outlined against a field
Image source: Getty Images.

Written by Amy Legate-Wolfe at The Motley Fool Canada

While Nvidia (NASDAQ:NVDA) might be taking up all the headlines, companies associated with the hot stock have also been soaring high. One of these is Celestica (TSX:CLS), with shares climbing 220% in the last year alone!

Quite soon, we could be entering a bull market, making it a good time to pick up Celestica stock. Before we do, however, here are some points to consider. And here’s why you’re going to want to buy this stock in bulk.

Are we in a bull market?

First off, are we even in a bull market? A bull market isn’t anything official. A bull market is a period of sustained growth in financial markets. This is when assets or stocks are rising, and investors are optimistic. I’m afraid this doesn’t quite cover what we’re seeing right now.


A price would need to increase 20% or more from a low point, though, again, this isn’t a hard and fast rule. There would also need to be more investor confidence in buying. While we’re seeing some of that, it’s again nothing certain.

So, with that in mind, the TSX today doesn’t exactly apply. While there has been more than 20% growth since its lowest point, there doesn’t seem to be as much optimism here on the market as there is across the border. Yet this could certainly change in the near future should a strong Canadian economy return.

Why Celestica stock is one to consider

Beyond recent performance, Celestica stock has a lot going for it. The company is an electronics manufacturing company, similar to Nvidia stock. However, it holds a far more diverse range of programs and is more about testing rather than creating.

So, what’s been going on recently with Celestica stock that investors should be interested in? It comes down to earnings. During the fourth quarter, Celestica stock reported revenue of US$2.14 billion, which was a 5% increase from the year before. Its earnings per share (EPS) hit US$0.76, a 36% increase compared to the same time in 2022. Its operating margin also increased to 6%, with its different segments performing well.

Overall, it was a strong quarter — one that analysts believe demonstrates that there is even more growth to come, especially with Nvidia stock doing so well.

What’s with Nvidia?

Nvidia stock creates graphics processing units (GPU). If you operate something digital, it uses these GPUs. But before they can go on the market, companies such as Celestica stock need to test them. Hence the huge interest in the stock as of late.

But it’s not the only thing it does. There are multiple electric manufacturing components that the stock tests out. And this is another reason why the company is of interest. Even should Nvidia stock drop, Celestica stock should continue to do well. This is why analysts believe it could be undervalued.

Strong buy

Celestica stock is seen as a strong buy from analysts these days. In fact, they continue to increase their consensus price targets for the tech stock, especially after strong earnings after strong earnings.

That future earnings potential comes from a strong future for both the stock and the sector. Revenue growth has remained stable, and the company believes this will continue throughout 2024. Furthermore, there are ongoing opportunities in both aerospace and defence as well as specialty technologies.

Furthermore, the company has been improving profitability, making strategic investments, and creating value for shareholders. As for the sector, technological advancements such as artificial intelligence (AI) will only be a benefit to the tech stock. That new focus will need to be tested, making Celestica stock a huge benefactor.

Bottom line

While there is competition, Celestica stock remains a top choice as we see more focus on these types of testing tech stocks. So, if you’re looking for growth, I wouldn’t say that even 220% is the end of the story of Celestica stock. We could see this happen again, especially in a bull market.

The post Is a Bull Market Here? 4 Reasons to Buy Celestica Stock Like There’s No Tomorrow  appeared first on The Motley Fool Canada.

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $17,988!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 35 percentage points since 2013*.

See the 10 stocks * Returns as of 1/24/24

More reading

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Nvidia. The Motley Fool has a disclosure policy.