Celestica (CLS) Rose on Accelerated Demand

Scout Investments, Inc., an affiliate of Carillon Tower Advisers, released the “Carillon Scout Mid Cap Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The Russell Midcap Index posted positive returns in the second quarter despite a sharp sell-off at the beginning of April following the liberation Day tariff announcement. However, the delay in collecting additional tariffs provided more time for trading partners to negotiate better terms.   In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Carillon Scout Mid Cap Fund highlighted stocks such as Celestica Inc. (NYSE:CLS). Celestica Inc. (NYSE:CLS) is a supply chain solutions provider that offers product manufacturing and related supply chain services. The one-month return of Celestica Inc. (NYSE:CLS) was 14.35%, and its shares gained 461.23% of their value over the last 52 weeks. On September 09, 2025, Celestica Inc. (NYSE:CLS) stock closed at $244.08 per share, with a market capitalization of $28.194 billion.

Carillon Scout Mid Cap Fund stated the following regarding Celestica Inc. (NYSE:CLS) in its second quarter 2025 investor letter:

Celestica Inc. (NYSE:CLS) is a contract manufacturer focused primarily on providing data center hardware components as well as aerospace and defense and industrial parts. The company reported impressive quarterly results in a highly uncertain macroeconomic environment driven primarily by strong demand for networking switches, with demand for 400-gigabyte switches being persistently strong while a ramp-up of demand for 800-gigabyte switches provided the upside. White box solutions in the networking industry are gaining share against branded vendors due largely to their lower total cost of ownership and more flexible designs. We forecast that estimates will move up throughout the year as we believe the company should continue to win new deals. In addition, we expect that the existing hyperscaler programs should ramp quicker than anticipated, which may provide further earnings upside.”

Was Jim Cramer Right About Celestica Inc. (:CLS)?

Celestica Inc. (NYSE:CLS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held Celestica Inc. (NYSE:CLS) at the end of the second quarter, which was 62 in the previous quarter. In the second quarter of 2025, Celestica Inc. (NYSE:CLS) reported revenue of $2.89 billion, reflecting a 21% increase from Q2 2024 and surpassing the guidance range. While we acknowledge the risk and potential Celestica Inc. (NYSE:CLS) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Celestica Inc. (NYSE:CLS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Celestica Inc. (NYSE:CLS) and shared the list of unstoppable Canadian stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.