Celestica Stock And 2 Growth Picks for Cooling Inflation

Cooling inflation and the possibility of slower rate hikes are reshaping where growth investors are looking for opportunity. With headline inflation at 3.5% in June and the Fed hinting that further increases may be reconsidered if this trend holds, earnings expectations and valuations across growth stocks can shift quickly. This article uses our Growth Stocks screener, built around that inflation and interest rate backdrop, to spotlight 3 stocks that appear well positioned to benefit from the current macro tone. Each one has shown stronger recent health and growth ratings, which many investors watch closely when reassessing growth exposure.

Overview: Lovisa Holdings is a fast fashion jewelry retailer that designs, sources, and sells affordable accessories under the Lovisa brand through its own stores, franchises, and online channels across Australia, Europe, the Americas, Africa, the Middle East, and Asia.

Operations: Lovisa generates essentially all of its A$892.9 million in revenue from the retail sale of fashion jewelry and accessories, with key contributions from Europe, the Americas, Asia, and Africa / Middle East.

Market Cap: A$2.6 billion

Lovisa Holdings stands out for combining a global store footprint with very high reported profitability metrics, including an 81.3% Return on Equity, which many investors view as a sign of an efficient business model. Its push into higher income regions, supported by industry leading gross margins around 82% and strong cash generation, has underpinned analysts’ expectations for double digit earnings and revenue growth. However, recent margin softness and slower earnings growth highlight execution risk as the store base expands. At the same time, relatively high leverage, weaker dividend cover, and a rich P/E keep the bar high if expansion or discretionary spending slows, especially as consumer trends shift online. With inflation cooling and rate pressures easing, Lovisa’s discretionary profile and growth credentials may attract investors, but the valuation and capital structure deserve close scrutiny.

Lovisa’s high reported margins and 81.3% Return on Equity suggest a powerful engine, but the real story lies in how that shapes future expectations and risk. Get the full context in the analyst forecasts for Lovisa Holdings

Overview: Celestica is a Toronto based electronics manufacturer that builds and manages complex hardware for cloud providers, hyperscalers, aerospace, industrial, HealthTech, and communications customers, combining design, production, and after market services under one roof.

Operations: Celestica generates about $3.2b in revenue from Advanced Technology Solutions and about $10.6b from its larger Connectivity & Cloud Solutions segment.

Market Cap: CA$55.8b

Celestica gives investors direct exposure to the build out of AI data centers and advanced networking, with its Connectivity & Cloud Solutions segment supplying hyperscalers at a time when lower inflation and the prospect of steadier rates are supporting risk appetite for growth stocks. Earnings and revenue growth forecasts are strong, return on equity is high at around 45.7%, and management has been confident enough to raise 2026 guidance. At the same time, a premium valuation, heavy dependence on a few large cloud customers, and reliance on external borrowing mean the story is not risk free. The key issue for investors is how these positives and pressures compare when examining Celestica in detail across growth, quality, and balance sheet strength.

Celestica’s AI hardware story is accelerating, but the real tension is how growth, reliance on key customers, and a premium P/E fit together. Get the full picture in the analysis report for Celestica

Overview: Betterware de MéxicoP.I. de is a Mexico based direct to consumer company that sells home organization, household, and beauty products through catalogues and a large network of distributors, associates, leaders, and consultants across Mexico and the United States.

Market Cap: US$671.5 million

Betterware de MéxicoP.I. de gives you exposure to Latin American consumer spending through a low cost, direct selling model that has recently produced rapid earnings growth, rising margins, and a strong earnings quality signal. This comes while trading at a valuation that many investors view as undemanding relative to estimated fair value and analyst price targets. Expansion into new markets like Ecuador and Guatemala, plus more digital tools for its salesforce, could support recurring revenue and smoother earnings, particularly if cooling inflation and steadier rates keep consumer budgets more predictable. The flip side is meaningful leverage, pressure on dividends, and execution risk around international growth and regulatory scrutiny of direct selling. These are exactly the issues that detailed forecasts and scenario work try to unpack for Betterware shareholders and potential investors.

Betterware de MéxicoP.I. de looks like a growth story hiding in plain sight, with earnings momentum and an undemanding valuation raising a bigger question. See how those signals line up in the analyst forecasts for Betterware de MéxicoP.I. de

The three growth stocks covered here are just a starting point, as the full Growth Stocks screener surfaces 18 more companies with similarly compelling growth, quality, and valuation stories that you have not seen yet. Use Simply Wall St to identify and analyze the specific catalysts, earnings drivers, and narratives that matter to you, so you can focus on the highest conviction growth ideas in one place.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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