Market Overview - Stocks surged on Tuesday as optimism grew regarding potential trade negotiations between the U.S. and China, with Treasury Secretary Scott Bessent indicating a possible de-escalation in the tariff conflict soon [1] - The positive sentiment followed a selloff on Monday that brought the Nasdaq back to its 2021 highs, with bulls maintaining their position at this critical level [2] Company Analysis: Celsius Holdings, Inc. (CELH) - Celsius Holdings is positioned as a strong competitor in the energy drink market, directly challenging major players like Red Bull, with a focus on healthier, zero-sugar alternatives [7] - The company has seen significant revenue growth, expanding from $131 million in 2020 to a projected $1.35 billion in 2024, despite a slowdown to 3% growth last year after three consecutive years of over 100% year-over-year growth [9] - Celsius contributed to 30% of all category growth in 2024 and increased its market share by 160 basis points to 11.8% [9] - The company completed a $1.8 billion acquisition of Alani Nutrition on April 1, enhancing its portfolio of next-generation energy drinks and supplements [9] - Revenue projections indicate a growth of 61% in 2025 and 19% in 2026, with adjusted earnings expected to increase by 50% and 13%, respectively [10] - Consensus earnings estimates have risen by 24% for 2025 and 19% for 2026 in recent months [10] - Despite a remarkable 2,300% increase in stock price over five years, shares are currently trading 60% below their all-time highs, around $37.68 [8][11] - The stock has recently surpassed its 50-day and 200-day moving averages, nearing a bullish golden cross, and is trading at a 60% discount to its five-year median forward earnings multiple of 33.2X [15]

The food industry is navigating a difficult macroeconomic climate. Inflation has diminished consumers' purchasing power, leading many to opt for cost-effective alternatives, such as private-label products over well-known brands. Additionally, some companies are facing weaker performance in their foodservice segments, as slower foot traffic in quick-service restaurants dampens sales in certain markets.The Zacks-defined Food-Miscellaneous industry consists of companies that manufacture and sell a wide range o ...

Core Viewpoint - The market has faced significant challenges recently, particularly in the tech and energy sectors, with defensive stocks performing relatively better [1] Company Overview - Celsius Holdings specializes in healthier nutritional functional foods, beverages, and dietary supplements, marketing its flagship product, Celsius, through various retail channels [2] Earnings Estimates - Earnings estimates for Celsius have been trending upward, with five analysts increasing their estimates over the last sixty days, resulting in a Zacks Consensus Estimate increase for the current year from $0.87 to $1.05 and from $1.01 to $1.18 for the next year [3] Growth Projections - Current year earnings growth is projected at 50%, while next year's growth is expected to be 13%. Revenue growth for the current year is at 55%, with next year's revenue anticipated to reach $2.51 billion, reflecting a 19% increase [4] Stock Performance - The stock experienced a significant decline from over $90 to near $21 earlier in 2024, but rebounded after a recent earnings report that exceeded expectations by 27% [5]

Group 1: InterDigital, Inc. (IDCC) - InterDigital is a global research and development company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings increased by 14.7% over the last 60 days [1] - InterDigital's shares gained 10.6% over the last three months, while the S&P 500 declined by 12.7% [1] - The company has a Momentum Score of B [1] Group 2: Bank First Corporation (BFC) - Bank First Corporation is a holding company for Bank with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings increased by 6.5% over the last 60 days [2] - Bank First Corporation's shares gained 6.7% over the last three months, compared to the S&P 500's decline of 12.7% [2] - The company possesses a Momentum Score of B [2] Group 3: Celsius Holdings, Inc. (CELH) - Celsius Holdings is a functional beverage company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings increased by 20.7% over the last 60 days [3] - Celsius Holdings' shares gained 38.9% over the last three months, while the S&P 500 declined by 12.7% [3] - The company has a Momentum Score of A [3]

Core Viewpoint - Celsius Holdings Inc. has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Celsius for the fiscal year ending December 2025 is projected at $1.05 per share, reflecting a 50% increase from the previous year's reported figure [9]. - Over the past three months, the Zacks Consensus Estimate for Celsius has risen by 14.2%, indicating a trend of increasing earnings estimates [9]. Zacks Rating System - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for stock price movements, especially for individual investors who may struggle with subjective rating upgrades from Wall Street analysts [2][3]. - The Zacks Rank system categorizes stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, highlighting Celsius's strong position in terms of earnings estimate revisions [10][11].

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Celsius. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Core Viewpoint - The stock market sentiment is influenced by trade tariffs, but certain stocks may rebound quickly once uncertainties are resolved, particularly those with high short interest that could experience a "short squeeze" [1][2]. Group 1: Stock Analysis - Celsius Holdings Inc. (NASDAQ: CELH) has shown a 30.5% return over the past month, benefiting from a supply chain focused in North America and gaining market share in caffeinated drinks [4][5]. - CAVA Group Inc. (NYSE: CAVA) is expected to outperform due to strong earnings per share (EPS) growth forecasts, trading at a high price-to-earnings (P/E) ratio of 191.8x compared to the retail sector average of 21.7x [8][9]. - Albemarle Co. (NYSE: ALB) is projected to see significant EPS growth, with analysts expecting up to $2.97 for Q4 2025, driven by demand from electric vehicles and energy infrastructure [11][12]. Group 2: Short Interest and Market Sentiment - Celsius has 10.8% of its float in short positions, with a notable reduction of 12.8% in short interest over the past month, indicating bearish capitulation [6][10]. - CAVA's current short interest stands at 11%, which may contribute to upward momentum as the stock trades at 51% of its 52-week high [10]. - Albemarle faces 11% of its float in short interest, posing a threat to short sellers as the stock is expected to rally once economic uncertainties diminish [13].

Buying stocks when overall markets are falling can seem dangerous and counterintuitive. However, if you're investing in stocks for the long term, the benefits are extremely rewarding. A great example would have been buying shares of quality companies amid the market chaos of 2020. Five years ago, around April 14, 2020, the S&P 500 was already down nearly 13.5% for that year despite being in the midst of a rebound after a steep decline in March due to the emergence of the coronavirus pandemic. While it wasn' ...

Core Insights - The energy drink market is experiencing rapid growth, driven by Celsius Holdings, Inc. and Monster Beverage Corporation, each employing distinct strategies to capture market share [1][2][3] Group 1: Celsius Holdings, Inc. - Celsius has positioned itself as a health-conscious alternative in the energy drink market, appealing particularly to Gen Z and millennials with its zero-sugar, clean-label products [4][5] - In 2024, Celsius reported record revenues of $1.36 billion, reflecting a 3% increase overall and a 22% increase in retail sales compared to 2023, indicating strong consumer interest [4] - The company expanded its product line with CELSIUS ESSENTIALS and CELSIUS HYDRATION, targeting high-performance consumers and entering the hydration category [5] - Celsius announced a $1.8 billion acquisition of Alani Nu, expected to be accretive to earnings and deliver $50 million in cost synergies within two years, enhancing its competitiveness [6] - Despite growth, Celsius faces challenges such as rising operational costs and the need for continuous marketing and innovation to sustain momentum [7] Group 2: Monster Beverage Corporation - Monster Beverage maintains a dominant position in the energy drink market, supported by a long-standing distribution partnership with Coca-Cola, which has driven consistent growth [8][10] - The company offers a diverse product portfolio with over 25 active brands, generating $1.67 billion in net sales in Q4 2024, a 4.5% year-over-year increase [10] - Monster Beverage's international sales showed strong growth, with energy drink sales increasing 14.4% in Europe, 11.8% in Asia-Pacific, and 20.2% in Latin America [10] - The company continues to innovate with new product launches aimed at capturing evolving consumer tastes [11] - However, Monster Beverage's growth rate has slowed, facing inflationary pressures and increased competition, though it has demonstrated pricing power with a 5% price increase in the U.S. [12] Group 3: Investment Considerations - The Zacks Consensus Estimate for Celsius suggests a 55.3% growth in sales and 41.4% in EPS for 2025, while Monster Beverage's estimates indicate a more modest growth of 5.9% in sales and nearly 13% in EPS [13][14] - Celsius stock has surged 41.8% year-to-date, while Monster Beverage has seen an 11.5% gain, reflecting differing investor confidence levels [16] - Celsius is trading at a forward P/E of 36.06X, below its three-year median, suggesting a more attractive entry point, while Monster Beverage's forward P/E of 31.05X aligns with its median, indicating fair valuation [18] - Both companies offer exposure to the growing energy drink market, with Monster Beverage providing stability and Celsius presenting a compelling growth story due to its rapid revenue acceleration and strategic acquisitions [19][20]

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...