
Why a Rising Stock Price Could Be Your Golden Ticket—Not a Warning!
2025-06-18
Author: Sophie
Don’t let a surging stock price scare you away! Passing up on a potentially lucrative investment just because the price seems high could cost you dearly.
Many investors think, "I should have bought last month; it’s too expensive now." This mindset can be a pitfall. While sometimes it's wise to hold off, often, it’s not the best strategy.
Take Amazon.com, for instance. Back in January 2017, I recommended Amazon shares at $817.14, which featured a staggering P/E ratio of 182.80. Five years prior, those shares were at $200—an excellent entry point! I forecasted that in the long run, Amazon would soar in value, and it certainly did. By June 2022, after a 20-1 stock split, the adjusted price was $40.86, and by June 13, it closed at $212.10—yielding a whopping 419% profit!
Similarly, Nvidia Corp. was another goldmine. I advised purchasing shares in May 2021 at $16.24 when the P/E ratio was already high at 94.17, but the company held a crucial position in AI chip production. Now, Nvidia trades at $144.12, marking a staggering 787% gain!
The same phenomenon is occurring with Canada’s Celestica Inc. After years of stagnation, the stock ignited in 2023, jumping 154.33% by year-end. Even after a monster rise of 148% in the first 10 months, I urged investors to buy at $38.46 in November—and the climb didn’t stop there!
Celestica’s performance in 2024 was phenomenal, with a 241.82% gain, and it’s up another 28.34% this year (as of June 13). Still think it’s too late to invest? Think again.
In its latest earnings report for Q1 2025, Celestica posted $2.65 billion in revenue—a 20% increase from the previous year. Its Connectivity & Cloud Solutions (CCS) segment rocketed, contributing $1.84 billion, a 28% hike. Adjusted earnings per share soared to $1.20—up 44% from 83 cents last year.
CEO Rob Mionis expressed optimism, declaring that both revenue and earnings surpassed expectations, prompting an upward revision for their 2025 guidance. Revenue is now forecasted to reach $10.85 billion, up from $10.7 billion, and adjusted EPS is projected to hit $5.
While I predict further growth for Celestica—though perhaps not as explosive—I still consider it a buy since it closed at $180.61 on June 17.
A word of caution: just because a stock price is high doesn’t guarantee a continued upward trend. Many stocks soared during the pandemic only to crash later, like Teledoc Health and Docusign.
Even IPOs can be risky, as seen with Beyond Meat Inc. Shares debuted at $25 in May 2019 and skyrocketed over 840% in a few months! However, the company was struggling financially and failed to sustain that momentum— plummeting to a mere $3.29 by June 17.
So, do your research! High stock prices and P/E ratios can signal caution but shouldn’t stop you completely. If the fundamentals shine and the business model is solid, don’t let a high price deter your investment ambitions!