This TSX Stock Is Up Around 80% Since ‘Liberation Day’
When reciprocal tariffs were announced by U.S. President Donald Trump in early April, the markets tanked. And then, they quickly recovered after those fears calmed amid tariff pauses. What seemed initially like a huge blow to the markets would instead end up creating a fantastic buying opportunity.
One of the best TSX stocks since the ‘Liberation Day’ tariff announcement has been Canadian tech company, Celestica (TSX:CLS)(NYSE:CLS). It is up around 80% since then. The stock has benefitted from the boom in artificial intelligence (AI) and a ramp up in tech spending. Its storage and networking products are integral in AI and machine learning data centers. Its broad customer base includes not just big tech companies, but also businesses in other sectors.
As spending on AI has increased, Celestica has performed well. It last reported earnings on April 24, where it posted revenue totaling $2.65 billion – a 20% increase year over year. Over the trailing 12 months, the company has generated just over $10 billion in revenue. The one downside is that its margins aren’t all that strong, as Celestica’s profits over that stretch total just $422 million, for a profit margin of 4%.
Currently, the stock trades at 42 times its trailing earnings while its forward price-to-earnings multiple is 30. Celestica stock is trading at all-time highs and isn’t a cheap buy anymore. But if you want to invest in a Canadian tech company that can benefit from the AI boom, this might be one to consider buying for your portfolio.
