Latest news with #AdityaRaghunath
Yahoo
a day ago
- Business
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Should You Buy Celestica Stock While It's Below $175?
Written by Aditya Raghunath at The Motley Fool Canada Valued at a market cap of $14.8 billion, Celestica (TSX:CLS) is a TSX tech stock that has delivered outsized gains to shareholders. In the last 10 years, CLS stock has returned more than 1,000% to investors. This means a $1,000 investment in Celestica in June 2015 would be worth over $11,400 today. Despite these market-thumping gains, Celestica stock is down almost 30% from all-time highs, allowing you to buy the dip. So, let's see if CLS stock is a good buy right now. Celestica is a global supply chain solutions provider operating across North America, Europe, and Asia through two main segments: Advanced Technology Solutions and Connectivity and Cloud Solutions. It offers comprehensive manufacturing and supply chain services, including design and development, engineering, component sourcing, electronics manufacturing, testing, systems integration, and after-market support. Celestica develops hardware platform solutions and provides both hardware and software design services, including customizable open-source software solutions. It manages complete programs from initial design through manufacturing and post-market support, offering services like IT asset disposition and asset management. Celestica serves original equipment manufacturers, cloud service providers, hyperscalers, and companies across diverse industries, including aerospace and defence, industrial, HealthTech, capital equipment, communications, and enterprise markets, positioning itself as an end-to-end technology solutions partner. Celestica delivered exceptional Q1 results, demonstrating resilience amid trade policy uncertainty while posting record-high operating margins of 7.1%. The company achieved revenue of US$2.7 billion and adjusted earnings per share of US$1.20 in Q1, both exceeding the guidance ranges, driven by robust demand from hyperscalers across its Connectivity and Cloud Solutions (CCS) segment. The standout performance came from High-Performance Solutions (HPS), which generated US$1 billion in revenue, representing a 99% increase and accounting for 39% of total revenue. Strong demand for 400G networking switches and the ramping of 800G programs fueled this exceptional growth, with communications end-market revenues surging 87% year-over-year. Management raised full-year guidance, projecting revenue of US$10.9 billion (up from US$10.7 billion) and adjusted EPS of US$5.00 per share (up from US$4.75), reflecting confidence in sustained demand from hyperscalers despite macroeconomic headwinds. It expects CCS segment growth in the high-teens percentage range for 2025. Celestica's globally diversified manufacturing footprint provides strategic advantages amid evolving trade policies. The company maintains US$800 million revenue capacity in Richardson, Texas, and Monterrey, Mexico, with the potential to triple output without additional facilities. Recent U.S. administration exemptions for key data centre hardware have provided near-term clarity, though Celestica remains prepared to adapt quickly to policy changes. Notable developments include securing multiple 1.6T optics program awards, including the first with a major OEM customer, as well as winning an 800G optical transceiver program in Thailand. These wins demonstrate Celestica's expanding market share and technological leadership in next-generation networking solutions. Analysts tracking CLS stock expect adjusted earnings to increase from US$3.88 per share in 2024 to US$7.37 per share in 2027. If the TSX stock is priced at 25 times forward earnings, it will trade around US$185 in early 2027, indicating an upside potential of 45% from current levels. With strong customer relationships, robust demand visibility, and operational flexibility, Celestica appears well-positioned to navigate current uncertainties while capitalizing on secular data centre growth trends driving long-term value creation. The post Should You Buy Celestica Stock While It's Below $175? appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
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Should You Buy Kinross Gold While it's Below $21?
Written by Aditya Raghunath at The Motley Fool Canada While gold prices are hovering near all-time highs, several gold mining stocks are yet to gain momentum in 2025. Canadian investors have the opportunity to identify high-quality gold stocks that trade at an attractive multiple and generate substantial gains going forward. Valued at a market capitalization of $25.3 billion, Kinross Gold (TSX:K) is a TSX-listed mining company that has returned over 625% to shareholders in the past decade. CEO Paul Rollinson highlighted the company's exceptional 2024 performance, delivering over 2.1 million ounces of gold production while meeting all key guidance metrics. In 2024, Kinross achieved a record free cash flow of over US$1.3 billion, representing a 100% year-over-year increase, driven by strong operational performance and favourable gold prices. Kinross demonstrated robust financial discipline by repaying US$800 million against its term loan in 2024, followed by an additional US$200 million in the first quarter (Q1), fully retiring the debt. Kinross now maintains over US$600 million in cash and approximately US$2.3 billion in total liquidity, supporting its investment-grade balance sheet. Key operational highlights included standout performances from flagship assets Tasiast and Paracatu, which together contributed over half of total production. The gold miner significantly advanced its development pipeline, particularly at Great Bear in Ontario, where an initial preliminary economic assessment confirmed the project's top-tier potential, with an estimated annual production of 500,000 ounces. Looking ahead, Kinross plans to return a minimum of US$500 million to shareholders through share repurchases this year, reaffirming its commitment to creating value for shareholders. Kinross Gold delivered robust first-quarter results, producing 512,000 gold equivalent ounces while maintaining strong margins and cash flow generation. The mining company reaffirmed its full-year guidance of two million ounces at competitive cost levels, demonstrating operational excellence across its global portfolio. Its flagship operations performed exceptionally well during the quarter. Tasiast delivered 138,000 ounces at low production costs, driven by strong grades and improved mill recoveries following optimization initiatives. Despite experiencing a brief mill shutdown due to a fire incident in April, operations have since resumed with minimal impact on annual production targets. Paracatu continued its solid performance with 147,000 ounces, supported by strong grades and enhanced recoveries from a recently implemented gravity circuit. Kinross reactivated its share-buyback program and has already repurchased $60 million in shares. After including its quarterly dividend, Kinross increased total capital returns to $650 million in Q1, representing over 300% growth compared to the same period in the previous year. Kinross continues advancing its pipeline of growth projects and mine life extensions. At Great Bear, surface construction and earthworks are progressing for the advanced exploration program, while detailed engineering has commenced for the main project's mill and infrastructure. It expects to provide resource updates for both the Curlew restart project and Round Mountain's Phase X underground development by the end of the year. The miner's development projects across multiple jurisdictions provide substantial optionality beyond current production profiles. With strong cash flow generation at current gold prices, Kinross expects to reach a net cash position by year-end while continuing to return significant capital to shareholders. Kinross maintains its commitment to operational excellence and financial discipline as it executes on both near-term production targets and long-term growth opportunities. Despite its outsized gains, Kinross stock trades at a forward price-to-earnings multiple of 13 times, which is in line with its five-year average. Analysts expect adjusted earnings per share to increase from $0.68 in 2024 to $1.26 in 2026. So, if the TSX stock is priced at 13 times earnings, it will trade around $16.4 in early 2027, above the current price of $15. The post Should You Buy Kinross Gold While it's Below $21? appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025
Yahoo
3 days ago
- Business
- Yahoo
Down 90% From All-Time Highs, Is Lightspeed a Buy Right Now?
Written by Aditya Raghunath at The Motley Fool Canada Valued at a market cap of $2.2 billion, Lightspeed Commerce (TSX:LSPD) is a software company that provides cloud-based commerce platforms and payment solutions for retailers, restaurants, golf courses, and other businesses across multiple countries. Its integrated platform enables omnichannel experiences, connecting suppliers, merchants, and consumers through comprehensive point-of-sale systems, inventory management, analytics, and payment processing. Lightspeed offers specialized solutions, including Lightspeed Restaurant for the hospitality industry, Lightspeed Retail for commerce, and Lightspeed Golf for golf course operators. The platform features multi-location connectivity, employee management, customer loyalty programs, and e-commerce capabilities. Additionally, Lightspeed offers financial services through Lightspeed Payments and Capital, as well as hardware sales, including tablets, printers, and accessories, along with installation services to support business operations. The TSX tech stock went public in 2019 and touched an all-time high in 2021. Today, LSPD stock is down almost 90% from all-time highs. Lightspeed Commerce delivered mixed results in fiscal Q4 (ended in March) while unveiling a comprehensive transformation strategy designed to drive sustainable, profitable growth. The fintech operator achieved its first US$1 billion revenue milestone in fiscal 2025 and delivered US$53.7 million in adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), an improvement from US$1.3 million in the prior year. Lightspeed has strategically refocused on two core growth engines where it maintains competitive advantages: North American retail and European hospitality. These markets represent a combined US$80 billion total addressable market, with near-term focus on US$21 billion in opportunities. Lightspeed's decision to concentrate efforts reflects strong product-market fit, evidenced by approximately 35% close rates in both segments. Management outlined aggressive expansion plans, including scaling the outbound sales capacity to over 150 representatives and increasing product development spending by 35%. The company targets 10–15% annual customer location growth and 20–25% gross profit growth over the next three years. Consolidated metrics include a 15–18% gross profit CAGR (compounded annual growth rate) and a 35% adjusted EBITDA CAGR through fiscal 2028. Software ARPU (average revenue per user) expansion remains a key driver, growing 11% year-over-year in Q4 through module adoption and pricing optimization. Payment penetration reached 40% in April, with continued upside as new customers must adopt integrated payment solutions. Lightspeed's NuORDER wholesale network, connecting retailers to over 4,000 brands, creates significant competitive differentiation and stickiness. Despite macro headwinds impacting same-store sales, Lightspeed demonstrates operational resilience through its diversified platform approach. It returned over US$130 million to shareholders through share repurchases and announced additional buyback authorization, reflecting confidence in the strategic pivot. Analysts expect Lightspeed's revenue to grow from US$1.1 billion in fiscal 2025 to US$1.6 billion in fiscal 2029. Comparatively, adjusted earnings are forecast to expand from US$0.45 per share to US$1.14 per share in this period. Similar to other asset-light tech stocks, Lightspeed is positioned to benefit from operating leverage. While revenue is forecast to grow by 10.5% annually, earnings growth is estimated at 26%. If LSPD stock is priced at 25 times forward earnings, which is reasonable, it should trade around US$28 in June 2028, indicating an upside potential of over 150% from current levels. With focused market concentration, enhanced product innovation, and disciplined capital allocation, Lightspeed appears well-positioned to capture market share in its targeted segments while improving profitability metrics over the three-year outlook period. The post Down 90% From All-Time Highs, Is Lightspeed a Buy Right Now? appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-04-2025
- Business
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This AI Stock Could Turbocharge Your TFSA With Substantial Growth Potential by 2030
Written by Aditya Raghunath at The Motley Fool Canada Several big tech stocks, such as Nvidia, Meta Platforms, Alphabet, Amazon, and Microsoft, are investing heavily in artificial intelligence (AI). However, Advanced Micro Devices (NASDAQ:AMD) stock is one AI stock that is flying under the radar and positioned to deliver outsized gains to long-term investors. AMD is a semiconductor giant and has already returned more than 3,000% to shareholders in the past decade. Despite these market-beating returns, the tech stock is down 58% from all-time highs, allowing you to buy the dip. Let's see how investing $7,000 in this AI stock could turbocharge your TFSA (Tax-Free Savings Account) with substantial growth potential by 2030. AMD is expanding its presence in the AI accelerator market after reporting US$5 billion in data centre GPU (graphics processing unit) sales last year. It has outlined a roadmap and launched products to compete directly with NVIDIA's future Ruben architecture. While programmable GPUs face challenges from custom ASIC (application-specific integrated circuit) solutions, AMD believes its approach offers long-term value. According to AMD, the rapidly evolving nature of AI models makes flexibility crucial. This allows customers to benefit from industry-wide software innovations over the depreciable life of its infrastructure. The strategic acquisition of ZT Systems should expand AMD's capabilities to design rack-level and cluster-level AI systems. The acquisition will enable customized solutions for hyperscale customers with varying data center requirements. This integration benefits the development of the MI400 platform (on track to launch in 2026), where AMD expects to narrow the competitive gap with NVIDIA significantly. Beyond AI accelerators, AMD's traditional businesses show resilience. Last year, the company gained five to six points of server market share despite a general slowdown in data centre CPU (central processing unit) refreshes. Its client computing segment demonstrated 58% year-over-year growth, driven by strong product performance across desktop and notebook platforms. While the embedded business (primarily Xilinx FPGAs) continues to face inventory normalization challenges, AMD secured 14 billion in design wins during 2024, positioning the segment for future growth once market conditions improve. Despite competing with NVIDIA's substantial research and development budget, AMD is focused on disciplined investments and strategic acquisitions. Management highlighted AMD's history of innovation under resource constraints and its focus on platform leverage across CPU, GPU, and software domains. AMD forecasts the AI accelerator market opportunity at US$500 billion, targeting tens of billions in annual revenue as it continues executing its multi-generational roadmap. Wall Street expects AMD to increase sales from US$25.8 billion in 2024 to US$55.63 billion in 2029. Its free cash flow is forecast to improve from just US$2.4 billion to US$17.5 billion in the next five years. Analysts tracking AMD expect adjusted earnings to expand from US$5.42 per share in 2024 to US$17.91 per share in 2029. If the chip stock is priced at 30 times trailing earnings, it should trade around US$540 per share, indicating an upside potential of 500% from current levels. The TFSA contribution room in 2025 is $7,000. So, an investment of $7,000 in AMD stock right now could balloon to more than $40,000 by 2030. The post This AI Stock Could Turbocharge Your TFSA With Substantial Growth Potential by 2030 appeared first on The Motley Fool Canada. Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Advanced Micro Devices wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $20,697.16!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*. See the Top Stocks * Returns as of 3/20/25 More reading Best Canadian Stocks to Buy in 2025 Market Volatility Toolkit 4 Secrets of TFSA Millionaires Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio
Yahoo
19-03-2025
- Business
- Yahoo
Buy the Dip: 2 Top TSX Stocks You Can Hold Forever
Written by Aditya Raghunath at The Motley Fool Canada Warren Buffett has often stated that you must be greedy when others are fearful. After reaching all-time highs in 2025, several stocks are trading below their record levels due to a challenging macro environment and an escalating trade war. As it is impossible to predict the market bottom, investors with a sizeable risk appetite should get greedy and buy quality stocks while they trade at a lower multiple. In this article, I have identified two top TSX stocks you can buy on the dip and hold forever. Valued at a market cap of $611 million, Magellan Aerospace (TSX:MAL) has returned more than 100% to shareholders in the last five years. Magellan is an integrated aerospace company providing global complex assemblies and systems solutions. In 2024, it reported revenue of $942.4 million, an increase of 7.1% year over year. Further, income more than tripled to $35.3 million in 2024, up from $9.2 million in 2023. In the last 12 months, Magellan has faced industry-wide challenges such as supply chain delays, labour shortages, and market disruptions like the Boeing machinist strike. To offset these headwinds, the company's business development and commercial teams renegotiated customer and supplier agreements and mitigated inflationary pressures. Alternatively, as a diversified supplier of aero-engine and aerostructure components for commercial and defence markets, Magellan is well-positioned to benefit from industry tailwinds. In 2024, the commercial aerospace sector saw record-breaking aircraft orders at Boeing and Airbus, while the defence sector continues to experience strong demand driven by global fleet modernization efforts. Looking ahead to 2025, Magellan expressed cautious optimism that the industry issues of recent years are subsiding, though potential challenges like U.S. trade tariffs remain on the horizon. Analysts tracking the TSX stock expect sales to rise to $1.01 billion in 2025 and $1.13 billion in 2026. Comparatively, adjusted earnings are forecast to expand from $0.62 per share in 2024 to $1.53 per share in 2026. So, priced at 7.1 times forward earnings, the TSX stock is quite cheap and trades at a discount of 40% to consensus price targets. Valued at a market cap of US$125 billion Shopify (TSX:SHOP), is a leading global commerce technology company, serving millions of merchants across 175 countries. Its merchant base is geographically diverse, with 45% in the United States, 30% in Europe, the Middle East and Africa, 15% in Asia Pacific, Australia and China, 5% in Canada, and 5% in Latin America. In 2024, Shopify reported revenue of US$8.9 billion, an increase of 26% year over year. Shopify's business model consists of two key revenue components. Its subscription solutions account for 26% of total revenues, while merchant solutions generate 74% of the top line. In 2024, subscription solutions revenues increased by 28% year over year to US$2.4 billion, while merchant solutions revenues grew by 25% to US$6.5 billion. Shopify's merchant-first approach focuses on providing an integrated back-end system that streamlines operations across multiple sales channels. As of December 31, its monthly recurring revenue (MRR), a key performance indicator, reached US$178 million, up 24% year over year from US$144 million. Wall Street expects Shopify's adjusted earnings to expand from US$1.26 per share in 2024 to US$2.5 per share in 2027. If the TSX tech stock can sustain its current multiple, it should double from current levels in the next three years. The post Buy the Dip: 2 Top TSX Stocks You Can Hold Forever appeared first on The Motley Fool Canada. Before you buy stock in Airbus Se, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Airbus Se wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,058.57!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 38 percentage points since 2013*. See the Top Stocks * Returns as of 2/20/25 More reading Best Canadian Stocks to Buy in 2025 Here's Exactly How $15,000 in a TFSA Could Grow Into $200,000 4 Secrets of TFSA Millionaires Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy. 2025
