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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.
  • Five stocks to consider instead of Coca-Cola.
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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
$35.73 +0.11 (+0.31%)
As of 04/1/2025 04:00 PM Eastern
52-Week Range
$21.10
$98.85
P/E Ratio
81.21
Price Target
$45.00

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.

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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 Wednesday, April, 2, 2025

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™
84th Percentile
Analyst Rating
Moderate Buy
Upside/Downside
25.9% Upside
Short Interest Level
Healthy
Dividend Strength
N/A
Environmental Score
N/A
News Sentiment
0.83mentions of Celsius in the last 14 days
Insider Trading
Selling Shares
Proj. Earnings Growth
21.35%
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.

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Gabriel Osorio-Mazilli
About The Author

Gabriel Osorio-Mazilli

Contributing Author

Value Stocks, Asian Markets, Macro Economics

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Occidental Petroleum (OXY)
4.5678 of 5 stars
$49.22-0.3%1.95%20.17Hold$59.82
Celsius (CELH)
4.2019 of 5 stars
$35.73+0.3%N/A81.21Moderate Buy$45.00
Monster Beverage (MNST)
3.5188 of 5 stars
$59.04+0.9%N/A37.85Hold$55.83
Coca-Cola (KO)
4.1292 of 5 stars
$71.85+0.3%2.84%29.09Buy$74.24
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