Many growth stocks' prices have gotten ahead of themselves, but the market is offering a discount on the following three.After producing incredible returns for investors in 2023 and 2024, the stock market got off to a great start in 2025, as well. Since the start of the current bull market in October 2022, the S&P 500 index is up nearly 70%, as of this writing. Many growth stocks have seen their prices climb even faster.While many top growth stocks might look overvalued at this point, there are still plenty ...

The most recent trading session ended with Celsius Holdings Inc. (CELH) standing at $22.04, reflecting a +1.66% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.03% gain on the day. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq depreciated by 0.36%.Coming into today, shares of the company had lost 20.09% in the past month. In that same time, the Consumer Staples sector gained 4.1%, while the S&P 500 gained 4.19%.Analysts and investors alike will ...

Core Viewpoint - Celsius Holdings has experienced a significant decline in stock price and sales, raising concerns about its future performance in the energy drink market [1][2]. Group 1: Stock Performance - Celsius shares dropped 11% this week, with the stock price hovering around $22, down from a peak of $90 per share 18 months ago [1][2]. - The company has faced a 31% decline in sales in its latest quarter, contrasting sharply with its previous triple-digit growth [2]. Group 2: Industry Challenges - The energy drink industry is experiencing a slowdown, which has negatively impacted Celsius, while competitors like Monster have seen growth [2][3]. - Inventory issues with distributor PepsiCo have contributed to the company's struggles, alongside disappointing sales data from Nielsen [2][3]. Group 3: Future Outlook - Investors are encouraged to remain patient, as the adverse events affecting Celsius occurred within the last year, and long-term potential should not be judged on a few quarters [4]. - The company is expanding into international markets and has launched a new non-caffeinated drink, which could help revive sales growth [4]. - At 24 times next year's earnings, Celsius has the potential to be a successful investment if it can turn its performance around [5].

Core Viewpoint - Celsius has experienced significant stock volatility, with a remarkable rise followed by a substantial decline, raising questions about its future growth potential in a competitive market [1][2]. Company Overview - Celsius specializes in sugar-free energy drinks made from natural ingredients, successfully carving out a niche in a market dominated by major players like Red Bull and Monster [2]. - The company underwent a major turnaround after being delisted from Nasdaq in 2010, which included a complete management overhaul, rebranding, and a focus on health-oriented distribution channels [3][4]. Financial Performance - From 2017 to 2023, Celsius achieved a compound annual growth rate (CAGR) of 82%, with revenue increasing from $36 million to $1.32 billion, and adjusted EBITDA rising from negative $5 million to positive $296 million [5]. - Revenue growth rates for Celsius from 2020 to 2023 were 74%, 140%, 108%, and 102%, respectively, with a slight slowdown to 5% in the first nine months of 2024 [7]. Market Position and Challenges - As of the third quarter of 2024, Celsius held a domestic retail market share of 11.6%, reflecting only a marginal increase of 10 basis points year-over-year, indicating challenges in maintaining growth against rising competition [8]. - The company faces challenges from reduced inventories by PepsiCo and increasing competition from health-conscious brands like C4 and ZOA [8]. Future Outlook - Analysts project a modest revenue increase of 3% for 2024, with expectations of a 15% revenue growth and a 40% increase in adjusted EBITDA for 2025 as the company optimizes inventory and expands its market presence [10]. - Celsius currently has an enterprise value of $5.16 billion, trading at 16 times this year's adjusted EBITDA forecast, suggesting it may be undervalued relative to its growth potential [11].

Group 1: Investment Overview - Investing in growth stocks, particularly small ones, carries significant risk but can yield substantial returns, with some stocks becoming 10-baggers in five years [1] - Three notable growth stocks that have shown impressive returns over the past five years include Celsius, Mara, and Super Micro Computer [2] Group 2: Celsius - Celsius has grown from a market cap of just over $200 million five years ago to around $6 billion today, establishing itself as a leading energy drink company [3] - A $5,000 investment in Celsius five years ago would now be worth approximately $66,160 [3] - Recent concerns have arisen due to PepsiCo optimizing its inventory levels of Celsius products, leading to a 31% year-over-year decline in revenue for the last quarter [4][5] - Despite these challenges, Celsius has potential in the sugar-free energy drink market, and its shares have dropped 47% in six months, presenting a possible buying opportunity [6] Group 3: Mara - Mara has benefited from the rising valuation of Bitcoin, with individual coins priced around $101,313 currently [7] - The company's financials are highly volatile, with profits reaching $337 million and losses of $200 million in the past four quarters [7] - An initial $5,000 investment in Mara five years ago would now be worth about $91,240 [8] - However, due to its exposure to cryptocurrency volatility, caution is advised for potential investors [9] Group 4: Super Micro Computer - Super Micro Computer's market cap was over $800 million five years ago, with significant growth driven by the demand for AI and server infrastructure [10] - A $5,000 investment in Super Micro five years ago would be worth around $48,260 today, despite a recent decline in value [11] - The company faces uncertainty due to the resignation of its auditor, Ernst & Young, over concerns about internal controls, leading to a wait-and-see approach from investors [11][12] - The future performance of Super Micro hinges on the findings of the new auditor, BDO USA, and the release of overdue financials [13]

Company Overview - Celsius Holdings has experienced significant growth in recent years, aided by a distribution agreement with PepsiCo, but has recently faced a slowdown in growth, leading to a stock price decline of over 51% in 2024 [1][3][8] - The company currently holds an 11.6% market share in the U.S. energy drink category, ranking as the third player behind Red Bull and Monster Beverage, although this is a slight decrease from its peak [3][6] Market Challenges - The beverage industry, including major players like PepsiCo and Coca-Cola, is experiencing lower volumes and growth challenges, which impacts Celsius as well [6][7] - Changes in consumer behavior, such as reduced store visits, are affecting foot traffic and sales for Celsius [4][6] Financial Metrics - Celsius has a forward price-to-earnings (P/E) ratio of 27.3 and a forward price-to-sales (P/S) ratio of 3.9, with analysts predicting strong growth over the next 12 months, although expectations are lower than in previous years [8][12] Growth Potential - The company has opportunities for international expansion and can achieve sales growth even with modest domestic market share increases [11] - Celsius must focus on solidifying its market position and demonstrating a path to reasonable growth to restore investor confidence [6][11] Investment Considerations - The current valuation of Celsius may appeal to investors who believe in the long-term growth of the energy drink market and the company's ability to maintain its top-three position [12] - Despite the speculative nature of the stock, the significant price drop has made the risk-reward balance more attractive for potential investors [13]

Core Viewpoint - Alani Nu is emerging as a significant competitor in the energy drink market, outpacing Celsius Holdings in growth since its launch in 2018 [1][2][4] Company Performance - Alani Nu achieved a remarkable revenue growth of 271% in 2021, reaching $228 million, while Celsius reported a 140% increase to $314 million in the same year [2] - Celsius' market share increased from 11.4% to 12.1% from Q1 to Q3 of 2024, indicating that it is also gaining market share despite competition [6] Competitive Landscape - Alani Nu's market share was estimated at 2.9% in Q1 2024 and increased to 3.5% by Q3 2024, showcasing its rapid growth [3] - Analyst Robert Moscow from TD Cowen downgraded Celsius' outlook due to competitive pressures from Alani Nu, contributing to a 74% decline in Celsius stock from its all-time high [4] Financial Position - Celsius has a strong financial position with over $900 million in cash and cash equivalents and zero debt, which provides a buffer against competitive pressures [7][8] - The company earned $164 million in net income through the first three quarters of 2024, reinforcing its financial strength [7] Strategic Partnerships - PepsiCo's equity investment in Celsius indicates a vested interest in the company's success, suggesting that Pepsi would support Celsius against emerging competitors [9] Investment Outlook - Celsius stock is currently trading at a lower valuation, being 36% cheaper than Monster and over 50% cheaper than its 10-year average valuation [12] - The company is viewed as having significant growth potential, making its stock an attractive option for long-term investors [13][14]

Group 1: Celsius Holdings - Celsius experienced a significant revenue growth of nearly 100% in Q4 2023, reaching an all-time high share price, but faced a 31% year-over-year revenue decline in Q3 2024, resulting in a 75% drawdown in stock price [3][6] - The partnership with PepsiCo allowed Celsius to leverage Pepsi's distribution network, which initially boosted its market presence and growth [4] - An over-ordering of inventory by Pepsi in late 2023 led to a temporary revenue growth acceleration, but now Celsius is dealing with an inventory hangover, causing negative revenue growth despite increasing end-market demand [5][6] - Celsius holds approximately 12% market share in the U.S. energy drink category and is expanding internationally, with expectations of returning to positive revenue growth as inventory issues are resolved [6][7] - The current market cap of Celsius is $6 billion, with trailing revenue of $1.37 billion over the past 12 months, and projections suggest it could reach around $2 billion in a few years due to international expansion and market share gains [8] Group 2: Remitly Global - Remitly Global has seen a 75% increase in stock price over the last six months, although it remains down 50% from its all-time highs in 2021 [9] - The company focuses on modern remittance services, targeting immigrant populations in the U.S. and providing a mobile application that offers various options for sending money abroad [10] - Over the past decade, Remitly has gained market share from Western Union, with a cumulative revenue increase of 134% in the last three years, while Western Union's revenue declined by 16.2% [11] - In the last quarter, Remitly's send volume grew by 42% to $14.5 billion, active customers increased by 35% to 7.3 million, and revenue rose by 39% year-over-year to $336.5 million, indicating significant growth potential as it currently holds only 3% market share in remittances [12] - With positive operating margins, Remitly is positioned as a strong buy-and-hold investment for 2025, suggesting that its growth trajectory is just beginning [13]

Company Overview - Celsius Holdings' shares are currently trading 73% off their all-time high due to lower sales attributed to inventory adjustments by its largest distributor [1] - The company has a current annual revenue of $1.4 billion, with significant growth potential in the energy drink market [6] Market Position and Performance - Celsius has increased its market share to 11.6% in October, positioning itself as a growth leader in the energy drink category [5] - Recent sales data from Nielsen indicates a 6% year-over-year decline in sales, with a slight market share decline of 80 basis points from the previous year [4] Future Growth Prospects - The global energy drink market is projected to grow by $47 billion, reaching $240 billion by 2027, presenting a substantial opportunity for Celsius [6] - The company is recognized as a "better-for-you" energy drink option, which is expected to drive future growth as per capita spending on energy drinks is anticipated to increase significantly [5] Investment Outlook - Morgan Stanley maintains an equal weight rating on Celsius shares with a price target of $42, suggesting a potential upside of 66% from current trading levels [2] - The forward earnings multiple for Celsius has decreased to 27, making it more attractive for long-term investors compared to over 100 times earnings last March [7]

Group 1 - Celsius, once favored by growth investors, has seen a significant slowdown in its top-line expansion in recent quarters [1] - The article discusses the FALCON Method, which is an evidence-based stock selection process aimed at constructing a buy and hold portfolio focused on income and total return [1] - The FALCON Method's elements are proven to support outperformance, and their combination increases the likelihood of achieving outstanding results [1] Group 2 - The research framework utilized is centered around shareholder value, specifically the Economic Value Added (EVA) approach [1] - The content provided is exclusive to Seeking Alpha readers, with a focus on quality compounders or "EVA Monsters" [1]