Scout Investments, Inc., an affiliate of Carillon Tower Advisers, recently released its third-quarter 2025 investor letter for “Carillon Scout Mid Cap Fund”. A copy of the letter can be downloaded here. The Russell Midcap Index posted positive returns in the quarter, fueled by strong corporate earnings, the continued momentum in artificial intelligence (AI) infrastructure, and the anticipation of the U.S. Federal Reserve’s (Fed) interest rates. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Carillon Scout Mid Cap Fund highlighted stocks such as Celestica Inc. (NYSE:CLS). Celestica Inc. (NYSE:CLS) is a supply chain solutions provider that operates in Advanced Technology Solutions, and Connectivity and Cloud Solutions. segments. The one-month return of Celestica Inc. (NYSE:CLS) was -13.70%, and its shares gained 239.87% of their value over the last 52 weeks. On December 02, 2025, Celestica Inc. (NYSE:CLS) stock closed at $304.29 per share, with a market capitalization of $35.004 billion.
Carillon Scout Mid Cap Fund stated the following regarding Celestica Inc. (NYSE:CLS) in its third quarter 2025 investor letter:
“Celestica Inc. (NYSE:CLS) is a contract manufacturer focused on providing data center hardware components as well as aerospace, defense, and industrial parts. The company reported positive quarterly results driven primarily by strong networking switch demand. Private label (also called “white box”) solutions in the networking industry are gaining market share against branded vendors due largely to the lower total cost of ownership and more flexible designs. We forecast earnings estimates will rise throughout the year as the company continues to win new deals. In addition, we believe that the existing hyperscaler programs should ramp quicker than anticipated, which may provide further earnings upside.”
Celestica Inc. (NYSE:CLS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held Celestica Inc. (NYSE:CLS) at the end of the third quarter, which was 63 in the previous quarter. In Q3 2025, Celestica Inc. (NYSE:CLS) reported revenue of $3.19 billion, marking an increase of 28% from Q3 2024. While we acknowledge the potential of Celestica Inc. (NYSE:CLS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
