Free Trial

Celsius Stock Defies Market Sell-Off with More Upside Ahead

Lakeland Fla, USA - 05 18 24: 7 11 convenience store interior Celsius energy drink display variety

Key Points

  • Celsius stock shows investors why there is so much value underneath its business, with margins matching beverage industry leaders.
  • Double-digit growth in the past quarterly results justifies the higher price targets set by Wall Street analysts, along with further EPS growth.
  • This stock could be one of the best names to watch during recent market volatility, as its return on capital remains strong.
  • 5 stocks we like better than Coca-Cola.

After a brief correction sell-off across global stock market indexes over the past couple of trading days, investors may be looking for places in the market where their capital might be safer. Some have looked to the energy sector, just like Warren Buffett did when he bought up to 29% of Occidental Petroleum Co. NYSE: OXY. Some, like Stanley Druckenmiller, have looked to bonds and small-cap stocks.

However, one thing remains at the top of mind wherever these investors may start looking, and that is fundamentals. It doesn’t matter what happens in the short term as long as strong fundamentals remain through the business cycle and are there to carry a business forward and its stock price. On that note, those that bring stability from the consumer staples sector, with a bit of growth in the discretionary space, can be worthy of a second look from investors.

Celsius Today

Celsius Holdings, Inc. stock logo
CELHCELH 90-day performance
Celsius
$27.01 -0.93 (-3.33%)
(As of 12/20/2024 05:45 PM ET)
52-Week Range
$25.23
$99.62
P/E Ratio
37.51
Price Target
$50.28

And, what better way to start off this list than with a company that just delivered double-digit growth in all of its drivers, Celsius Holdings Inc. NASDAQ: CELH? A caffeinated drinks company, Celsius is looking to make a splash in its market and has successfully competed with the likes of Monster Beverage Co. NASDAQ: MNST and even Coca-Cola Co. NYSE: KO. Here’s how it might be a good watchlist addition in today’s market.

Celsius: A Recognized Player in the Drinks Industry With Tons of Growth

In the recent second-quarter 2024 earnings press release, investors will find that all of Celsius’s key drivers performed impressively, with not a single one disappointing. Revenue for the quarter reached a record level of $402 million, or 23% growth over the past 12 months.

Now, to speak of brand recognition and adoption is one thing; to quantify it is another. Investors can look to the company’s gross margin rate of 52% in the past quarter as a sign of not only deep market penetration but also favorable pricing power.

Gross profits, in turn, reached another record high of $209.1 million, jumping by 32% over the year. Compared to peers with big brands like Coca-Cola, whose gross margins are 60.3%, Celsius seems headed in the right direction despite being over $200 billion smaller in size.

Celsius Holdings, Inc. (CELH) Price Chart for Sunday, December, 22, 2024

Another way investors can check how far Celsius has come in its growth phase is through free cash flow (operating cash flows minus capital expenditures). Going from $38.4 million in 2023 to $160.5 million in 2024 is a fantastic achievement that sets the foundation for Celsius stock to become a potential multi-bagger.

Now, the measure every investor is looking for is earnings per share (EPS). Delivering a net EPS of $0.28 translates to 65% growth over the year, impressive for any company and industry. With all this growth and recognition, it only makes sense that the stock should be trading at – or near – highs.

But that’s just not the case. Celsius stock trades at only 45% of its 52-week high, and even after delivering 65% EPS growth, it ended the day down by 2.3%, which is where savvy investors will find an unmissable opportunity.

Wall Street's Take: What's Next for Celsius Stock?

Surely, value investors can't be the only ones noticing what lies ahead for Celsius stock. Wall Street analysts now forecast up to 27.6% additional EPS growth for the next 12 months, which is optimistic but, at the same time, lies on the conservative end of the spectrum, especially after seeing the 65% jump recently.

Celsius MarketRank™ Stock Analysis

Overall MarketRank™
79th Percentile
Analyst Rating
Moderate Buy
Upside/Downside
86.1% Upside
Short Interest Level
Bearish
Dividend Strength
N/A
Environmental Score
N/A
News Sentiment
0.18mentions of Celsius in the last 14 days
Insider Trading
Selling Shares
Proj. Earnings Growth
34.78%
See Full Analysis

Leaning on recent financial momentum and further growth projections, those at B. Riley decided to place a price target of up to $80 a share for Celsius stock, daring it to nearly double from where it trades today. Not too many stocks can offer close to 100% upside in today's market, especially during these sell-offs.

Despite the bearishness and downside momentum in the stock market, bears are retreating from the bullish data coming out of Celsius stock. Investors can check this trend by watching the 1.6% decline in the stock's short interest in Celsius.

More than that, those at Bank of New York Mellon Corp decided to boost their holdings in Celsius stock by 36.7% as of July 2024, bringing the bank's net investment up to $167.9 million today, or 1.3% ownership in the company.

Should you invest $1,000 in Coca-Cola right now?

Before you consider Coca-Cola, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Coca-Cola wasn't on the list.

While Coca-Cola currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

20 Stocks to Sell Now Cover

MarketBeat has just released its list of 20 stocks that Wall Street analysts hate. These companies may appear to have good fundamentals, but top analysts smell something seriously rotten. Are any of these companies lurking around your portfolio? Find out by clicking the link below.

Get This Free Report
Gabriel Osorio-Mazilli
About The Author

Gabriel Osorio-Mazilli

Contributing Author

Value Stocks, Asian Markets, Macro Economics

Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Occidental Petroleum (OXY)
4.7107 of 5 stars
$47.13+3.9%1.87%12.27Hold$62.10
Celsius (CELH)
3.9502 of 5 stars
$27.01-3.3%N/A37.51Moderate Buy$50.28
Monster Beverage (MNST)
3.0861 of 5 stars
$51.72+1.6%N/A33.15Moderate Buy$56.30
Coca-Cola (KO)
4.636 of 5 stars
$62.55+0.2%3.10%25.85Moderate Buy$72.50
Compare These Stocks  Add These Stocks to My Watchlist 


Featured Articles and Offers

Alphabet Gaining Momentum: Can It Reach $200 by December?

Alphabet Gaining Momentum: Can It Reach $200 by December?

Alphabet (GOOGL) is in the midst of a year-end rally, climbing 10% since September, and some analysts predict it could gain another 30% by Christmas!

Recent Videos

From Landfills to Profits: Opal Fuels CEO Shares How the Company Turns Trash into Cash
The Real Reason Tesla Stock Is Soaring – and Why Tech Expert Says It Won’t Stop
Best ETFs for 2025: Growth, Stability, and AI-Driven Investing

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines