Back to top

Image: Bigstock

Bull of the Day: Celsius (CELH)

Read MoreHide Full Article

Over the last month and a half, the market has been nothing short of harrowing. Tech and energy have been hit the hardest, while there have been very few places to hide. The more defensive stocks have hung in there a bit better. Sometimes though, even stocks in the safest corners of the market get smacked down. Maybe it’s the high beta, maybe it’s the growth, but either way, it still happens.

Today’s Bull of the Day is a stock that is well off 2024 highs, but has recovered nicely in the face of all this market pressure. I’m talking about Zacks Rank #1 (Strong Buy) Celsius ((CELH - Free Report) ). Celsius Holdings specializes in commercializing healthier, nutritional functional foods, beverages and dietary supplements. The company markets Celsius, the calorie burner, while selling its products through grocery, drug, convenience, club and mass, and health and fitness channels. The Company's products are produced in Mooresville, North Carolina, and Monroe, Wisconsin.

The reason for the favorable Zacks rank is that earnings estimates continue to move in one direction, to the upside. Over the course of the last sixty days, five analysts have increased their earnings estimates. Next year has seen 4 estimate increases. The bullish moves have pushed up our Zacks Consensus Estimate for the current year from 87 cents to $1.05 while next year’s number is up from $1.01 to $1.18.

Zacks Investment Research
Image Source: Zacks Investment Research

That sets current year earnings growth at 50% with next year’s in at 13%. Looking over at the revenue side of things, current year revenue growth sits up at 55%, a monster number no matter how you look at it. Next year’s number is expected to swell another 19% to $2.51 billion. Those numbers mean Celsius is currently trading at 35.6x earnings and 7.08x sales.

Estimates haven’t always been on this trajectory. Looking back into early 2024, those numbers came crashing down. While the year-over-year growth remained intact, they were all trending in the wrong direction. That caused the stock to plummet from over $90 to lows near $21 before the company’s last earnings report. That report came in 27% better than expectations.


 


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Celsius Holdings Inc. (CELH) - free report >>

Published in