Celestica's Meteoric Rise Sparks Profit-Taking Advice
Let’s talk about one of the most remarkable stories in Canadian tech investing right now — Celestica, ticker symbol CLS. If you’ve been following the stock market even casually, you’ve probably heard whispers about this one. But here’s the real scoop: Celestica has been absolutely soaring, and some seasoned experts are now saying it might be time to lock in a few gains.
Celestica is a Toronto-based company that originally spun out of IBM and went public in 1998. For almost two decades, its stock hovered between $5 and $15 — steady, unexciting. That is, until 2023. Since then, the stock has skyrocketed. In 2023 alone, it jumped by 154%. Then in 2024, it surged another 242%. And it’s not done — so far in 2025, the stock is up another 66%. This isn’t just a good run. It’s a full-blown breakout.
Now, it’s easy to get caught up in the excitement, but let’s look at some context. While most Canadian tech stocks have been lukewarm this year — the S&P/TSX Information Technology Index is only up about 8%, and even giants like Shopify and Constellation Software have shown relatively modest gains — Celestica has continued defying gravity.
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One major investor, Gordon Pape, added CLS to his recommended list back in November 2023 when it was trading at just under $39. Today, it’s pushing past $219. That’s a 471% gain in less than two years. Pretty incredible, right? But here’s where things get interesting.
Despite the meteoric rise, Pape is now advising investors to take a little off the table — sell half, in his words. The reason isn’t necessarily a warning of trouble, but more a signal that the stock is getting expensive. Its price-to-earnings ratio has climbed to nearly 45, which is high, even for a tech company — though still under Nvidia’s, which trades around 55.
To be fair, the fundamentals at Celestica are still strong. In the first quarter of 2025, they posted $2.65 billion in revenue, up 20% from last year, and earnings came in at $1.20 per share — beating expectations. The company even raised its full-year guidance, now expecting $10.85 billion in revenue and $5.00 in earnings per share.
They don’t pay a dividend, but they’ve been buying back shares — $75 million worth last quarter alone. That’s often a good sign.
So, what’s the takeaway? If you’ve been riding this rocket, now might be a smart time to take some profits. If you’re thinking of jumping in, it may be best to wait for a pullback — perhaps below the $210 mark — before making a move. Either way, Celestica has become a tech stock story worth watching very closely.
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