The Ultimate Growth Stock to Buy With $1,000 Right Now #CanadaFinance

Written by Jitendra Parashar at the motley fool canada

A temporary decline in fundamentally strong growth stocks could be a great opportunity for Foolish investors to build long-term wealth — especially if they know where to look. While many run from red days, experienced investors recognize them as moments of hidden value. With just $1,000, you don’t have to stretch $1,000 across multiple picks. You just need to find one stock with the potential to multiply over time.

In this article, I’ll talk about a top Canadian growth stock I personally own and tell you why its recent dip could be the perfect chance to buy in with $1,000.

So, what stock fits the bill as the ultimate Canadian growth pick right now? For me, the answer is Celestica (TSX:CLS). It might not be a flashy name, but behind the scenes, it’s helping power some of the world’s biggest tech transformations. Headquartered in Toronto, Celestica designs and manufactures hardware platforms while also providing supply chain solutions for various industries.

In recent years, CLS stock has been on an absolute tear. As of March 21, it trades at $137.67 per share with a market cap of $16 billion. Its shares have surged over 116% in the past year and have yielded more than 3,000% over the past five years. Even after pulling back about 33% from its peak, this Canadian growth stock’s long-term trend is still solidly pointing upward.

Celestica’s rise in recent years isn’t just hype. The company is winning big in areas like cloud computing and artificial intelligence (AI), which are two massive growth themes right now.

In recent quarters, it secured two major 1.6-terabyte switching program wins with hyperscaler clients. These deals are focused on building AI-optimized systems with advanced liquid cooling technology, and production is expected to ramp up through 2026. That’s the kind of high-value factor that gives investors real confidence.

In the fourth quarter of 2024, Celestica’s revenue rose 19% YoY (year over year) to US$2.6 billion as it delivered record adjusted earnings of US$1.11 per share — beating Street analysts’ expectations and marking its highest quarterly earnings ever.

For the full year, the company’s revenue jumped 21% YoY to US$9.7 billion, and its adjusted annual earnings soared by 58% from a year ago to US$3.88 per share. Notably, Celestica also generated US$305.9 million in free cash flow last year, which gives it plenty of fuel to keep investing in future growth.