Wall Street expects a year-over-year increase in earnings on higher revenues when Celsius Holdings Inc. (CELH) reports results for the quarter ended December 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the ...

Core Viewpoint - Celsius Holdings has announced the appointment of Christy Jacoby and John Short to its Board of Directors [1] Group 1 - Christy Jacoby and John Short have been appointed to enhance the leadership and governance of Celsius Holdings [1]

Core Insights - Celsius Holdings, Inc. (NASDAQ:CELH) is recognized as a strong investment opportunity in the FMCG sector, with analysts expressing positive outlooks on the company's stock performance [1][2]. Group 1: Analyst Ratings and Price Targets - Piper Sandler raised its price target for Celsius Holdings to $65 from $61, maintaining an "Overweight" rating, indicating confidence in the company's ability to exceed Q4 2025 estimates [1]. - JPMorgan increased its price target for Celsius Holdings to $77 from $68, also keeping an "Overweight" rating, highlighting potential upside in forecasts and valuation multiples [2]. Group 2: Company Performance and Market Position - Analysts believe that 2026 will be a favorable year for Celsius Holdings due to its category leadership and the expansion of its partnership with PepsiCo [2]. - The company is actively involved in the development, processing, manufacturing, marketing, selling, and distribution of functional energy drinks, positioning itself well within the market [3]. Group 3: Competitive Landscape - While Celsius Holdings shows promise, there are suggestions that certain AI stocks may offer greater upside potential with less downside risk, indicating a competitive investment landscape [3].

Industry Overview - The Zacks Food-Miscellaneous industry is facing challenges due to cautious consumer spending and persistent cost pressures, impacting volume growth and pricing flexibility [1][4] - Companies in this industry manufacture and sell a variety of food products, including cereals, sauces, and organic items, primarily through wholesalers and retailers [3] Current Trends - Consumer behavior is shifting towards value-oriented purchasing, with increased demand for private-label and lower-priced alternatives, affecting branded food manufacturers [4] - Elevated costs in raw materials, labor, and logistics continue to pressure margins, despite some pricing actions providing partial relief [5] - Health-focused innovation and portfolio modernization are key growth drivers, as consumers show interest in functional and premium food products [2][6] Performance Metrics - The Zacks Food-Miscellaneous industry currently ranks 187, placing it in the bottom 23% of over 250 Zacks industries, indicating dull near-term prospects [7][8] - The industry has underperformed the S&P 500, declining 11.6% over the past year compared to the S&P 500's growth of 17.3% [10] - The industry is trading at a forward P/E of 15.02X, lower than the S&P 500's 23.24X and the sector's 17.27X [13] Company Highlights - **Mama's Creations**: This company benefits from strong demand for premium meal solutions, with a Zacks Consensus Estimate for EPS rising 18.2% to 13 cents, indicating 44.4% growth year-over-year [16][17] - **J&J Snack Foods**: With a diversified portfolio, this company has seen its EPS estimate rise by a penny to $4.46, suggesting 4.5% growth from the previous year [19][20] - **Sysco Corporation**: This global distributor is focusing on productivity and supply-chain optimization, with an EPS estimate increase of 0.7% to $4.59, indicating 2.9% year-over-year growth [23][24] - **Celsius Holdings**: This company has a strong multi-brand portfolio and has seen its EPS estimate rise by a penny to $1.49, suggesting 18.8% growth year-over-year [27][28]

Core Insights - The Consumer Staples sector is gaining investor attention as a defensive stronghold amid macroeconomic uncertainty, benefiting from steady demand for essential products [1] - Despite higher interest rates and cautious consumer sentiment, staple consumption remains stable, allowing companies to sustain revenue visibility and cash flow generation [2] - The sector is expected to see a revenue increase of 2.4% while the bottom line is projected to decline by 2.4% this earnings season [3] Key Trends Shaping the Season - Consumer staple companies face challenges from elevated input costs, changing consumer preferences, and increased pricing sensitivity due to tariffs and trade-related levies [4] - Companies are mitigating these challenges by diversifying sourcing, localizing production, and renegotiating supplier contracts, which have stabilized cost structures and improved margin predictability [5] - Pricing discipline and a favorable product mix are crucial for offsetting cost pressures, with companies leveraging brand strength and innovation to protect demand and support profitability [6] Earnings Outlook - Defensive demand, manageable tariff-related pressures, and continued cost discipline position select consumer staple stocks to potentially surpass earnings estimates this season [7] - The Hershey Company (HSY) is well-positioned with strong brand equity, disciplined pricing, and ongoing productivity initiatives, with an Earnings ESP of +0.78% and a Zacks Rank 1 [10][11] - Estee Lauder Companies (EL) is focused on restoring sustainable growth through brand prioritization and innovation, with an Earnings ESP of +6.62 and a Zacks Rank 2 [12][13] - Celsius Holdings, Inc. (CELH) is driving demand through innovation and strategic partnerships, with an Earnings ESP of +15.27% and a Zacks Rank 3 [14][15] - Monster Beverage Corporation (MNST) benefits from global energy drink expansion and strong consumer connections, with an Earnings ESP of +17.16% and a Zacks Rank 3 [16][17]

Group 1 - Celsius Holdings, Inc. reported consolidated revenue of approximately $725 million for Q3 2025, reflecting a 173% year-over-year increase [2] - The company has been named PepsiCo's U.S. Strategic Energy Drink Captain, indicating a strong partnership and market positioning [2] - Celsius Holdings announced the integration of Alani Nu into PepsiCo's distribution network starting December 1, 2025, enhancing its distribution reach [2] Group 2 - JPMorgan raised its price target on Celsius Holdings to $77 from $68, maintaining an Overweight rating, indicating positive expectations for the company's performance [1] - The firm anticipates Celsius will benefit significantly from its partnership with PepsiCo, particularly in 2026 [1] - Celsius Holdings positions itself as a healthier alternative in the energy drink category, which has contributed to its sustained growth and consumer adoption [3]

Group 1 - NewBridge Asset Management's Q4 2025 letter indicates that equity markets continued to rise due to resilient economic growth and solid corporate returns, with large-cap growth outperforming in this quarter [1] - The NewBridge Large Cap Growth Strategy generated a positive return but lagged behind the Russell 1000® Growth Index, with most portfolio companies exceeding quarterly expectations [1] - The contrasting performance of Uber Technologies, Inc. and Tesla, Inc. was highlighted as a significant challenge for the portfolio [1] Group 2 - Celsius Holdings, Inc. has faced challenges since June, with sales growth in the energy drink industry slowing down and brands becoming more promotional to stimulate demand [3] - Despite still growing faster than the category, Celsius Holdings, Inc. has experienced a steep year-over-year growth slowdown, and estimates for its sales and earnings have declined due to PepsiCo's inventory optimization initiatives [3] - The decision was made to exit the portfolio's small position in Celsius Holdings, Inc. due to difficulties in estimating near-term catalysts that could improve investor sentiment [3]

Core Insights - Celsius Holdings, Inc. reported international revenue of $23.1 million for Q3 fiscal 2025, marking a 24% year-over-year increase and contributing to a year-to-date total of $70.6 million, which is up 30% from the same period in 2024 [1][5] Group 1: International Revenue Growth - The growth in international revenue was supported by strong performance in the Nordics and expanding contributions from newer markets such as the U.K., Ireland, France, Australia, New Zealand, and the Benelux region [2][3] - Australia emerged as a notable contributor with performance exceeding expectations due to deeper retail engagement, while European markets are still in foundational stages, focusing on strengthening retailer relationships [4][5] Group 2: Strategic Focus - The company emphasized that its international business is in a build-out phase, prioritizing distribution establishment, brand awareness, and market-specific execution capabilities [3][5] - The health, fitness, and wellness trends driving demand in the U.S. are also resonating in international markets, providing a consistent backdrop for expansion [3] Group 3: Comparison with Peers - Monster Beverage reported double-digit year-over-year international net sales growth, with international results outpacing North America [6] - PepsiCo achieved its 18th consecutive quarter of mid-single-digit organic revenue growth internationally, benefiting from scale and distribution strength [7] - Coca-Cola reported positive international unit case volume growth, highlighting the importance of international markets to its overall growth [8]

Core Insights - There is no single best strategy for investing, with index funds often recommended for long-term growth, but growth stocks can offer quicker returns despite higher risks [1] Company Performance - Tesla has seen its stock price increase by approximately 1,500% since the start of the decade, turning a $13,000 investment into about $204,000. The company reported a profit of nearly $5.1 billion over the past four quarters and $15 billion in 2023, despite facing competition and margin pressures [5][6] - Nvidia, a leading chipmaker, has a market capitalization around $4.5 trillion and is pivotal in the AI sector, with its chips being essential for developing AI models and chatbots. A $13,000 investment in Nvidia would now be worth approximately $412,000 [8][9] Investment Considerations - Tesla's current valuation is high, trading at over 300 times its trailing earnings, making it one of the most valuable companies globally, which may limit future returns despite its innovative vision [7] - Investing in growth stocks like Tesla and Nvidia can yield substantial returns, but it is accompanied by inherent risks [2][8]

Core Viewpoint - Celsius Holdings experienced a significant stock rebound in 2025, with shares increasing by 74%, contrasting with a 16% gain for the S&P 500, indicating strong consumer demand despite previous challenges [1]. Group 1: Financial Performance - In 2024, Celsius faced a 52% decline in stock value due to stalled growth, with a notable 31% drop in Q3 revenue, which management attributed to inventory fluctuations with PepsiCo [2][4]. - By 2025, Celsius reported a remarkable 75% top-line growth through the first three quarters, demonstrating a recovery in consumer interest and sales [1][6]. - The company acquired Alani Nu for $1.65 billion in April 2025, contributing to its growth, although inorganic growth raises concerns about financial and integration risks [6]. Group 2: Market Dynamics - Despite the revenue drop in 2024, Celsius maintained its market share and distribution, with retail sales of the Celsius brand growing by 13% year over year in the 13 weeks leading up to September 28, 2025 [7]. - The Alani Nu brand has not cannibalized Celsius' sales, with Alani Nu's net sales increasing by 115% year over year, indicating a complementary growth strategy [8][9]. - International revenue accounted for only 3% of total revenue in Q3, suggesting significant potential for growth in global markets [10]. Group 3: Future Outlook - Celsius is positioned for continued profitable growth, with multiple growth levers including the Alani Nu brand and international expansion [8][11]. - The current valuation of Celsius, with a price-to-sales (P/S) ratio of 6, is considered attractive compared to its 10-year average [11]. - Long-term growth prospects remain strong, with expectations for Celsius to outperform the market over a five-year horizon [13].