December Investment Watchlist: Two Strong Buy Tech Stocks Worth Your Attention—HOOD and CLS

Market Backdrop: Why December Could Favor Tech Investors

Recent market activity has reshaped investor sentiment. After weeks of volatility and selective selling across growth sectors, November’s final week saw renewed buying interest in technology equities. For investors with a multi-year time horizon, the current environment presents interesting opportunities, particularly in artificial intelligence and infrastructure-related technology plays.

The fundamental backdrop remains constructive. Earnings growth projections for 2025-2026 remain robust, supported by AI-driven productivity gains and corporate digital transformation initiatives. Simultaneously, the Federal Reserve is expected to maintain its accommodative monetary policy with additional interest rate reductions on the horizon. These two pillars—strong earnings trajectory and lower borrowing costs—traditionally provide a supportive environment for equities.

Of course, market timing presents persistent challenges. Investors who attempt to predict short-term reversals frequently find themselves on the wrong side of momentum. Instead, a disciplined approach favoring high-quality companies with solid fundamentals has historically rewarded patient capital.

Robinhood Markets (HOOD): From Trading App to Brokerage Powerhouse

Robinhood Markets has undergone a remarkable transformation. What began as a commission-free trading application has evolved into a direct competitor against established brokerage leaders like Fidelity, now operating across multiple financial services segments.

The company’s financial metrics tell a compelling story:

• Q3 Performance: HOOD exceeded earnings expectations by approximately 20%, continuing a streak of beats and positive guidance
• Subscriber Growth: Paid Gold Subscribers surged 77% year-over-year to 3.9 million; total investment accounts increased 2.8 million to 27.9 million
• Revenue Per User: Average revenue per user climbed 82% to $191 in Q3, reflecting improved monetization

HOOD’s business now spans eleven distinct revenue-generating divisions, each producing ~$100 million+ in annualized income. Offerings include retirement accounts, cryptocurrency trading, futures and options, wealth management, and advanced trading platforms for active market participants.

Forward-Looking Economics: Consensus estimates have risen ~20% for 2025-2026 earnings, with projected EPS expansion of 79% this year and 16% growth in 2026 to $2.27 per share—a stark contrast to the $0.60 loss in 2023. Revenue is anticipated to grow 51% in 2025 and 21% in 2026, reaching $5.4 billion.

The stock has appreciated 225% over the past year and 1,100% across the past three years, substantially outperforming prominent AI technology peers. Currently trading 21% below consensus price targets, HOOD’s PEG ratio sits at a 50% discount to historical levels, suggesting reasonable valuation relative to growth prospects.

Celestica Inc. (CLS): AI Infrastructure Beneficiary

Celestica represents a picks-and-shovels play on artificial intelligence expansion. The electronics manufacturing specialist designs and produces high-performance infrastructure components—AI servers, networking switches, and data-center systems—for major hyperscaler customers.

The company’s diversified portfolio extends across semiconductor manufacturing equipment, aerospace and defense, telecommunications, healthcare technology, and energy solutions. This breadth reduces concentration risk while capturing multiple growth avenues.

Historical and Projected Growth:

• Past Performance: Revenue expanded from $5.6 billion in 2021 to $9.6 billion in 2024, averaging 20% annual growth
• Earnings Trajectory: GAAP EPS grew an average 65% during the FY22-FY24 period
• 2025-2026 Outlook: Revenue projected to grow 26% and 31% respectively, reaching $16 billion; adjusted EPS expected to expand 52% this year and 39% next year

CEO commentary reflects sustained demand: “Our largest customers continue to make significant investments in AI infrastructure, supporting our 2026 guidance with indications of momentum extending into 2027.”

CLS has appreciated approximately 4,000% over five years, eclipsing broader technology sector returns (115%) and even prominent AI chipmakers. The 245% gain in 2025 alone may suggest near-term valuation extension. However, fundamental growth prospects remain intact—77% of 17 brokerage recommendations carry “Strong Buy” designations.

Investment Perspective

Both HOOD and CLS hold Zacks Rank #1 (Strong Buy) ratings, reflecting consensus analyst confidence. While market pullbacks will inevitably occur, long-term investors who maintain conviction in quality businesses and resist short-term noise position themselves advantageously. The combination of AI-driven earnings momentum and falling interest rates creates a constructive framework for technology-focused portfolios through 2026 and beyond.