For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Celestica (CLS) ten years ago? It may not have been easy to hold on to CLS for all that time, but if you did, how much would your investment be worth today?
Celestica's Business In-Depth
With that in mind, let's take a look at Celestica's main business drivers.
Headquartered in Ontario, Canada, Celestica is one of the largest electronics manufacturing services companies in the world, primarily serving original equipment manufacturers, cloud-based and other service providers and enterprises from several industries. The company offers a comprehensive range of manufacturing and supply-chain solutions related to design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, systems integration, logistics, product licensing, after-market repair, return and information technology (IT) asset management and disposition services. Celestica's extensive depth and breadth of offerings support a wide variety of customer requirements, from low-volume, high-complexity custom products to high-volume commodity products.
The company has two reporting segments: Advanced Technology Solutions and Connectivity & Cloud Solutions.
Advanced Technology Solutions (28.4% of second quarter 2025 net sales): The segment primarily focuses on aerospace and defense (A&D), Industrial, HealthTech, and Capital Equipment businesses, which include semiconductor and display verticals. Major customers in this segment are Applied Materials, Inc., LAM Research and Honeywell.
Connectivity & Cloud Solutions (71.6%): The segment primarily serves communications and enterprise verticals. The Enterprise vertical includes the server and storage business. In this segment, company’s major customers are IBM, Dell, Meta and Hewlett-Packard Enterprise.
Celestica faces significant competition from Benchmark Electronics, Jabil, Flex, Hon-Hai Precision Industry, Plexus and Sanmina.
The company reported revenues of $9.65 billion in 2024, 70% of which was generated from Asia and 20% from North America.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Celestica, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in August 2015 would be worth $15,336.13, or a gain of 1,433.61%, as of August 8, 2025, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 205.16% and the price of gold increased 199.21% over the same time frame in comparison.
Going forward, analysts are expecting more upside for CLS.
Celestica recorded strong second-quarter 2025 results with adjusted earnings and revenues beating the respective Zacks Consensus Estimate. A solid growth in the hardware platform solutions portfolio, backed by hyperscaler customer demand for networking products, including 400G switches and 800G switches, buoyed the top line. The growing proliferation of AI-based applications and generative AI tools across industries presents robust growth opportunities for Celestica. Healthy cash flow generation is a tailwind. Backed by solid demand trends, Celestica has offered a bullish outlook for 2025 and has increased its earlier guidance. However, stiff competition from industry giants and new entrants remains a headwind. Celestica also remains susceptible to unpredictable macro environment owing to tense geopolitical conditions.
The stock has jumped 26.68% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2025; the consensus estimate has moved up as well.
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Celestica, Inc. (CLS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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