The Hoops have defeated the likes of Manchester United and Barcelona in front of their home crowd in recent times, and they will be hoping to do the same when City visit Parkhead in the Champions League on Wednesday night.
"If you look Celtic have taken some big scalps in this competition," Stones said.
"We will be the favourites for most people but it does not count for anything once the game starts. They have got quality in their side, otherwise they would not be in the Champions League.
"We have worked hard to get here ourselves so it is a game we will be fully up for, as they will be.
"We do not just go there expecting to win it, even if other people see it that way, we respect our opposition. Every game in the Champions League is very important and is never easy."