Celestica Stock And 2 Growth Picks Riding The AI Infrastructure Buildout

Services activity in the US and Europe is holding up, even as manufacturing cools, which keeps pressure on company earnings to do the heavy lifting. That backdrop makes growth-focused stock selection more important than ever. The Healthy high growth potential screener filters for companies where analysts expect fast earnings expansion and solid balance sheets. This article highlights three stocks from that screener that may deserve a closer look.

The three stocks in this article are only a sample from the broader Healthy high growth potential idea. The full screen surfaced 56 more companies with equally compelling stories that are not covered here. To see the complete picture, identify your own angles, and analyze candidates side by side, head straight to the Healthy high growth potential screener.

Overview: Kraken Robotics is a marine technology company that focuses on high resolution Synthetic Aperture Sonar systems, including its KATFISH towed SAS and related survey services, for defense, offshore energy and subsea infrastructure inspection, alongside batteries and LiDAR solutions. This SAS centered offering is the key link to the Healthy high growth potential theme because it targets expanding demand for detailed seabed imaging and survey work.

Operations: Kraken Robotics generates about CA$66 million from Products and CA$41 million from Services, supported by a global footprint with CA$57 million from Asia Pacific, CA$26 million from North America and CA$20 million from Europe, the Middle East and Africa.

Market Cap: CA$1.78 billion

Kraken Robotics provides exposure to subsea imaging alongside defense and offshore energy spending, with its SAS and KATFISH systems highlighted in analyst expectations for earnings and margin improvements over the next 3 years. Recent moves, including the Covelya Group acquisition and a larger order book across SAS, batteries and navigation products, indicate a business that is building scale, though results still depend on lumpy defense and offshore contract cycles and effective integration of new assets. The stock is described by some analysts as trading below certain estimates of fair value, and there is an expectation among those analysts of a shift from a small loss to profitability. This combination of growth potential and execution risk may warrant closer consideration for growth focused investors.

Kraken Robotics appears to be an earnings story that is still being priced as a question mark rather than a conviction. Get the 2 key rewards and 1 important warning sign that could explain what the current multiples might be missing.

Build your own high growth potential shortlist

Kraken Robotics and the two other stocks in this article all came from a single screener, but the real value is in setting filters that match how you invest. Use our flexible Screener to mix metrics like growth, valuation and balance sheet strength, or tap into our curated Investing Ideas for ready made shortlists built around clearer themes.

Overview: Cameco is a Canadian nuclear fuel company that mines uranium concentrate and supplies fuel and reactor technology to nuclear utilities across the Americas, Europe and Asia. Its Uranium segment is the clearest link to the Healthy high growth potential theme, since uranium mining and sales feed directly into projected earnings growth tied to nuclear power demand. Fuel Services and Westinghouse add a wider range of nuclear products and support services.

Operations: Cameco generates most of its revenue from the Uranium segment at about CA$2.9b, alongside roughly CA$3.4b from its Westinghouse stake and CA$551 million from Fuel Services, with only a small contribution from other activities.

Market Cap: CA$57.4b

Investors looking at growth linked to nuclear power may want to keep Cameco on their radar. The company combines uranium mining, nuclear fuel services and a large interest in Westinghouse, which gives it exposure from raw fuel through to reactor technology as governments support more nuclear projects and utilities seek long term supply security. Analysts expect earnings expansion and higher returns on equity over the next few years, although recent quarters have shown pressure from lower uranium sales volumes, weaker Westinghouse earnings and higher costs. The stock also trades on a rich revenue multiple, so a lot of optimism is already priced in. That mix of structural demand, premium valuation and operating risks makes Cameco a stock that may warrant closer inspection beyond the headlines.

Cameco’s uranium to Westinghouse story is accelerating, yet the real tension is how much optimism is already priced in. Get the 2 key rewards and 1 important warning sign and see what the premium might really be hiding.

Overview: Celestica is a Toronto based electronics manufacturer that designs, builds and supports hardware platforms for original equipment makers, cloud providers and hyperscalers, including work with AMD on Helios, a rack scale AI platform for data centers. This AI and cloud infrastructure activity is a key link to the Healthy high growth potential theme, even though the company still serves a wide mix of industrial, aerospace, HealthTech and communications customers.

Operations: Celestica generates about $12.3b of revenue from Connectivity & Cloud Solutions and $3.3b from Advanced Technology Solutions.

Market Cap: CA$47.9b

Celestica provides direct exposure to the build out of AI and cloud infrastructure, with its Helios partnership with AMD and broader hyperscaler hardware work. The CCS segment is now the revenue engine. However, that concentration in a handful of large cloud clients also raises the stakes if AI and networking capex slows or individual customers pull back. Analysts see room for further upside if revenue and earnings keep tracking current guidance, supported by higher margin services and a balance sheet that has been reinforced through recent equity raising. For investors who can accept customer and funding risk, Celestica’s AI focused business profile may be an important option to consider.

Celestica’s AI build out looks powerful, yet the real story may be how growth, margins and hyperscaler dependence fit together. Read the analyst forecasts for Celestica to see what the current momentum might be masking.

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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.

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