Celestica & Hammond: 2 Canadian shares that 10x’d. What is the following? | The Motley Fool Canada

The TSX30 is out and there are two Canadian companies that investors have probably already noticed before the TSX today. Those are Celestics (TSX: CLS) and Hammond Power Solutions (TSX: HPS.A), and it is clear why. In recent years, both Canadian companies have absolutely risen in the stock price, not just this year. In fact, Celestica shares have risen by around 3,500% in the last five years, and Hammond’s have risen almost 2,000%! These multibaggers are then not only this year’s must-have shares, but the following decadeS. Let’s comment on why.

CLS

First let’s see what has happened lately to rise CLS so far in the stock price. The company focuses on creating the necessary hardware behind some of the world’s fastest outburst industry-rather artificial intelligence, which includes data storage. This has led to large institutional investments and strong momentum flows to create powerful price movements.

Some of those movements come from the absolutely great income. Recently the results in the second quarter came within the year with a strong turnover, an increase of 21% and an adapted profit per share (EPS), no less than 54% year on year. Both were above guidance ranges. This ensured that from 2025 the management actually increased to $ 11.55 billion of $ 10.85 billion, as well as the adapted profit per share and the goals for free cash flow.

What investors who are interested in these TSX shares that want to include will then want to see if the TSX shares can continue to rise. Celestica will have to continue to see to continue to see the growth of sales, and whether the third quarter of bookings and disadvantage will also rise. Moreover, shareholders will want to see that FCF is being put to work, ideally by purchase. Then of course there are macro risks such as rates and disturbances of the supply chain. But if the past is an indicator, this should not be a problem.

HPS

Then we have Hammond Power, another essential power supply that has risen on the TSX today. The company makes dry-type transformers, product quality products and magnetics. These are types of equipment that are demand for the modernization of the network, especially when it comes to renewable, electric vehicles, industrial electrification and, yes, data capacity distribution. So, just like with Celestica, it is in an excellent position.

This was also seen during the recent income, in which Hammond Record sales reported that 14% year after year rose, and adjusted income before interest, taxes, depreciation and amortization (EBITDA) to $ 33 million. The gross margin is now 30.7 %, solid for an industrial manufacturer. Moreover, the backlog remains healthy, with a new Mexico production facility and the shipments begins to make.

For Hammond, investors who want to see backlog will rise because this will soon convert into income. Moreover, the facility of Mexico will want to be performed now that it is complete to create more free cash flow. But also, investors will want to see the money rise by hand, because it is only about $ 28 million from writing. And just like with Celestica, rates and trade risks continue to exist.

Bottom Line

Both Celestica and Hammond Power Stock are two TSX shares that may look trendy, but today are incredible investments in the TSX. These two have steel wind behind those who are not weakened, but get strength. Although it is unlikely that investors will see a new rise in the stock price of 3,500% or 2,000%, they can still enter for a more long -term growth. So if you are an investor with a longer period of time, these two look like strong shares that only become stronger.