2 Potentially Explosive Stocks to Buy in May

A colourful firework display

Are you looking for growth? Investors can still get in on some great action for the next month — especially if they consider looking at companies already busting upwards. It doesn’t always have to be about the stocks that everyone wishes they’d bought before the rise. Instead, investors could simply get in on the action from stocks climbing even higher.

Today, we’re going to look at two companies that could potentially be explosive stocks to buy in May. What’s more, they’ve already provided growth for investors to consider.

Celestica

First, we have Celestica (TSX:CLS), a company that has climbed an insanely high 310% in the last year alone. The multinational electronics manufacturing services (EMS) company provides a range of services, including design, engineering, assembly, and aftermarket support for a variety of industries, including aerospace and defence, automotive, computing, healthcare, industrial, and semiconductor capital equipment.

Over the years, Celestica stock has grown through acquisitions and partnerships, expanding its global presence and capabilities. But in the last year, there has been a major surge. And that comes down to semiconductors.

Now, to be clear, Celestica stock does not make semiconductors. However, it does provide the end services needed to allow these to come into the market. And this has provided more and more revenue for Celestica stock in the last year or so. Furthermore, the company looks far from slowing down.Â

Despite tripling in share price over the last year, there is still room to grow for Celestica stock. In fact, earnings and revenue recently topped estimates during its first quarter. And there is the prediction of more in the months ahead. That makes it a stock that could certainly explode further in May.

Kinaxis

Then there’s a company that could see an explosion after earnings come out. And this is where Kinaxis (TSX:KXS) comes in. Kinaxis is a Canadian software company that specializes in supply chain management (SCM) and operations planning solutions. Previously, many of us may not have cared about supply-chain management. But the pandemic and supply-chain demand taught us how important it is.

Now, Kinaxis provides cloud-based software for companies to manage their supply chain processes more efficiently and effectively. The company’s flagship product is called RapidResponse, which is a supply chain planning and response management platform. RapidResponse offers features such as demand planning, supply planning, inventory optimization, scenario analysis, and collaboration tools. It leverages real-time data to help companies make faster and more informed decisions, particularly in dynamic and complex supply chain environments.

Yet the company fell in share price after the pandemic surge and has struggled to return to its previous share price. Estimates have either been narrowly missed or far surpassed. So, this next earnings report could be the one that sends shares far higher for Kinaxis stock investors. For now, shares are still down by 20% in the last year, though they have climbed back up 15% since the October market bottom. So, pay attention to earnings, as they could send this stock soaring.

Should you invest $1,000 in Celestica Inc. right now?

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Fool contributor Amy Legate-Wolfe has positions in Kinaxis. The Motley Fool recommends Kinaxis. The Motley Fool has a disclosure policy.