Stifel Names Celestica Top Pick in Supply Chain Tech on Strong Backlog and AI Growth

Analysts at Stifel have identified their top investment ideas within the supply chain technology sector, highlighting companies with strong order backlogs and growing exposure to artificial intelligence revenue streams. The firm's analysis favors companies demonstrating solid execution and growth outlooks that support their current valuations.

Celestica Leads the Pack

Stifel named Celestica Inc. (NYSE:CLS) its highest-conviction pick, citing what the company's management called the strongest awarded backlog in its history. The firm noted this provides a significant floor for future revenue and earnings potential.

Key metrics highlighted by Stifel for Celestica include:

• A 2027 revenue floor estimated near $25.5 billion.
• A valuation of approximately 23 times forward earnings.
• A price/earnings-to-growth (PEG) ratio of roughly 0.5x, based on 46% earnings per share growth projections, which Stifel views as "undemanding."

Ad

Jabil and TTM Also Highlighted

Stifel also pointed to Jabil Inc. (NYSE:JBL), which recently increased its fiscal 2026 AI-related revenue guidance to approximately $13.6 billion. Management further guided for a similar growth rate in fiscal 2027, implying an AI revenue floor of around $20 billion. According to Stifel, Jabil's shares have compressed to a valuation of approximately 19-20 times forward earnings.

TTM Technologies Inc. (NASDAQ:TTMI) was ranked as Stifel's third pick, with the firm noting its strong order and backlog growth despite its stock price being down approximately 30% from its June peak. The company reported a 1.41 times book-to-bill ratio and a backlog of $787 million, a 52% increase year-over-year. TTM has reiterated its long-term annual growth outlook of 15-20%.