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Celestica (TSX:CLS) shares have moved recently, catching the attention of investors interested in tech services and manufacturing. The company’s strong performance this year prompts a closer look at what is driving returns.

See our latest analysis for Celestica.

Celestica’s impressive surge has fueled fresh optimism among tech investors. While the 1-year share price return stands at a remarkable 189.8%, the 1-year total shareholder return is even higher at 387.5%. Momentum is clearly building, thanks to robust growth and an improving outlook.

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With shares posting such rapid gains, the key question is whether Celestica remains undervalued today or if the market has already priced in all of its future growth. This leaves investors pondering if there is still a buying opportunity.

Celestica’s widely followed narrative suggests a fair value that sits just above the last close price, hinting the stock may still hold some upside even after rapid gains. With the company’s outlook now shaped by bullish projections and improved profitability, attention is turning to major catalysts that could drive further revaluation.

Accelerated demand for advanced networking and AI infrastructure by hyperscaler customers is driving rapid growth in Celestica’s CCS segment, with multiple new 800G and upcoming 1.6T program ramps. This is supporting robust revenue expansion and greater operating leverage over the next 12 to 24 months.

Read the complete narrative.

Want to know which financial levers are fueling this premium? The key story centers on aggressive profit projections and a rare profit multiple normally reserved for industry leaders. Are these bold future assumptions enough to support such an optimistic valuation? Uncover the figures and see what drives this surprising fair value call.

Result: Fair Value of $402.69 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, market concentration among top customers and heavy reliance on sustained AI investment could quickly challenge Celestica’s bullish growth assumptions.

Find out about the key risks to this Celestica narrative.

While the fair value estimate hints at Celestica being undervalued, comparing its price-to-earnings ratio presents a different perspective. The company is trading at 59.3x earnings, almost double the industry average of 30.7x and well above the fair ratio of 53.3x. When a stock trades significantly above its peers and what is considered fair, there is a real risk the price could revert or stall if growth expectations slip. Is this future premium fully justified?

See what the numbers say about this price — find out in our valuation breakdown.

If you think there’s another angle to the Celestica story or want to dig into the details yourself, you can shape your own view in just a few minutes by using the following resource: Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Celestica.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include CLS.TO.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Open Text (NasdaqGS:OTEX) stock has caught some attention in recent weeks, thanks in part to a steady uptick of 6% over the past month. Investors seem interested in the company’s consistent revenue and growing net income.

See our latest analysis for Open Text.

Momentum is clearly building for Open Text, with the stock posting a 6.35% share price return over the past month and an impressive 37.14% gain in the last 90 days. When you step back, the one-year total shareholder return of 18.94% and a standout 53.44% total return over three years show that investors who have stuck with the company have seen strong long-term rewards.

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The question now is whether Open Text’s recent run suggests there is more value left on the table, or if markets have already priced in the company’s future growth potential. Is there a new buying opportunity emerging?

With the recent close at $39.03 and a consensus fair value of $37.66, the most widely tracked narrative suggests Open Text’s market price now closely matches analysts’ calculated fundamentals. This balance indicates the market may have already caught up to the company’s projected growth story.

“Expanded integration of AI and automation capabilities (e.g., Titanium X and MyAviator platforms) directly into OpenText’s cloud suite is leading to higher per-customer spend and driving pipeline conversion rates. These developments are expected to fuel both top-line revenue acceleration and incremental margin improvement.”

Read the complete narrative.

Craving the full blueprint behind this pricing? Behind the scenes, ambitious growth targets, aggressive AI and cloud overhaul, and bold margin forecasts set the tone. Want to know which key financial levers support this price and where the tensions truly lie? Dive in to see the numbers driving the narrative’s fair value verdict.

Result: Fair Value of $37.66 (ABOUT RIGHT)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, execution risks from leadership transitions and challenges in revitalizing slower-growth business areas could temper Open Text’s momentum if these issues are not carefully managed.

Find out about the key risks to this Open Text narrative.

While multiples suggest Open Text is fairly valued, our SWS DCF model paints a different picture. According to this approach, the stock trades at a hefty 41% discount to its estimated fair value, which is an intriguing disconnect that could signal a hidden opportunity. Could the market be missing something?

Look into how the SWS DCF model arrives at its fair value.

If you have a different perspective, or want to dive deeper into the data and craft your own story, it only takes a few minutes to build your own view. Do it your way.

A great starting point for your Open Text research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include OTEX.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com