Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Celsius Holdings stock has plummeted, reversing its previous outperformance to significant underperformance. CELH's stunning collapse is a solemn reminder of the significant risks of chasing high-growth stocks as its recent execution disappointed. The growth in the energy drinks segment has normalized, worsening the headwinds for CELH.
Celsius Holdings has taken a massive hit due to PepsiCo's inventory management and slower US growth. The company's ambitious international expansion plans look to succeed, as Celsius' successful Finnish market expansion looks to be repeated in larger markets. After the stock has crashed into just a third of the peak price, the CELH stock now has upside due to the company's likely international success.
The stock has struggled this year, but will look to rebound in 2025.
Celsius has been a millionaire-maker stock, but can it do it again?
Celsius stands out in the CPG beverage market with a strong focus on health-oriented products, positioning itself more as a healthcare company than a typical energy drink brand. The company has demonstrated executional excellence, driving category growth and gaining shelf space despite intense competition from established players. While the stock's valuation remains elevated, I believe the 60% correction presents a buying opportunity, as recent concerns over order slowdowns appear to be short-term.
Piper Sandler says its recent survey discovered the energy drinks of Celsius Holdings Inc (NASDAQ: CELH) remain wildly popular among teen consumers. Shares of the beverage company are up 15% on Thursday.
Is Celsius stock finally cheap enough to buy?
Celsius Holdings Inc (NASDAQ:CELH) is one of the better stocks on the Nasdaq Composite (IXIC) today, last seen up 10% to trade at $33.83.
Recently, Zacks.com users have been paying close attention to Celsius (CELH). This makes it worthwhile to examine what the stock has in store.
It was already a compelling growth story. This year's steep sell-off simply bolsters the case for stepping in.
These stocks are all down 14% or more in the past three months.