Core Insights - Evolving consumer lifestyles are driving demand for healthy, sugar-free drinks, positioning Celsius Holdings, Inc. favorably with its LIVE FIT identity [1] - Continued innovation is crucial for long-term growth, with new product introductions enhancing consumer engagement and brand relevance [2] - Celsius is expanding into the $1.4 billion hydration powder market with the launch of CELSIUS HYDRATION, a zero-sugar, zero-caffeine electrolyte powder [3] Market Trends - Dollar sales for sugar-free energy drinks surpassed full-sugar varieties for the first time in 2024, with better-for-you functional beverages driving 86% of category growth in Q1 2025 [4] - Celsius is set to capitalize on the growing healthy, sugar-free energy beverage market through strategic acquisitions, product innovations, and global expansion [5] Competitive Landscape - PepsiCo and Coca-Cola are actively competing in the healthy, sugar-free energy beverage category, with both companies reshaping their product portfolios to align with consumer preferences [6][7][8] Financial Performance - Celsius shares have increased by 78.3% year to date, significantly outperforming the industry's 1.6% dip [9] - The company trades at a forward price-to-earnings ratio of 22.49X, compared to the industry average of 11.07X [11] - The Zacks Consensus Estimate indicates year-over-year EPS growth of 17.1% for 2025 and 41.5% for 2026, with recent estimates showing positive movement [12]

Core Insights - Celsius Holdings, Inc. (CELH) and PepsiCo, Inc. (PEP) are significant players in the beverage industry, with CELH focusing on functional, sugar-free energy drinks and PEP being a diversified multinational with a broad portfolio [1][2] Group 1: Celsius Holdings (CELH) - Celsius Holdings is strengthening its position in the energy beverage market, with the acquisition of Alani Nu contributing to approximately 20% of the total dollar growth in the energy drink category in Q1 2025 [3][4] - The company's strategy emphasizes sugar-free, better-for-you products, with sugar-free energy drinks accounting for 86% of the total growth in the energy category during the same period [4] - Innovation is key for CELH, as it launched new Vibe and ESSENTIALS flavors and CELSIUS HYDRATION, targeting the $1.4 billion hydration powder market [5] - Retail expansion is a growth driver, with distribution increased through over 1,800 Home Depot locations and 18,000 Subway restaurants [6] - Despite strong brand momentum, CELH faces operational and financial pressures, including rising costs and competition [7] Group 2: PepsiCo (PEP) - PepsiCo generated net revenues of $22.7 billion in Q2 2025, maintaining a strong market share in carbonated soft drinks, hydration, and sports beverages [8][9] - The company is integrating its North American businesses to enhance operational efficiency through investments in AI and unified data platforms [9][10] - PepsiCo is repositioning key brands to elevate real-food credentials, with growth in the $2 billion permissible snack segment and innovations in no-sugar colas and functional hydration platforms [11][12] - The company is targeting a return to the low end of its long-term top-line growth algorithm, supported by strong international momentum [12] Group 3: Financial Performance and Valuation - The Zacks Consensus Estimate for CELH's 2025 earnings per share (EPS) remains at 82 cents, while PEP's EPS estimate has increased by 13 cents to $8.00 [13][14] - Over the past month, CELH shares fell 0.7%, underperforming the S&P 500 Index, while PEP's stock surged 13.8% [16] - CELH trades at a forward price-to-earnings (P/E) ratio of 44.59X, compared to PEP's more modest forward P/E of 17.95X [17]

Core Insights - Investors in the Food - Miscellaneous sector may consider Bunzl PLC (BZLFY) and Celsius Holdings Inc. (CELH) for potential value opportunities [1] Valuation Metrics - Bunzl PLC has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Celsius Holdings Inc. has a Zacks Rank of 3 (Hold) [3] - BZLFY has a forward P/E ratio of 12.96, significantly lower than CELH's forward P/E of 53.97, suggesting BZLFY may be undervalued [5] - The PEG ratio for BZLFY is 1.20, compared to CELH's PEG ratio of 1.57, indicating BZLFY's earnings growth is more favorably priced [5] - BZLFY's P/B ratio is 2.87, while CELH's P/B ratio is 25.79, further supporting BZLFY's valuation as more attractive [6] - These metrics contribute to BZLFY's Value grade of A and CELH's Value grade of D, highlighting BZLFY as the superior value option [6][7]

Core Viewpoint - Celsius Holdings Inc (NASDAQ:CELH) has received a "buy" rating from Citigroup with a price target of $55, highlighting the strength in the U.S. energy drink market and international growth opportunities [1] Group 1: Analyst Sentiment - A majority of analysts are bullish on CELH, with 15 out of 18 analysts giving a "buy" or better rating [2] - The 12-month consensus target price for CELH is $48.08, representing a 7% premium over current trading levels [2] - There is potential for a short squeeze, as 24.89 million shares are sold short, accounting for 15.1% of the available float [2] Group 2: Stock Performance - CELH shares have increased by 70.5% in 2025, supported by the ascending 40-day moving average since June [3] - The stock is close to its July peak of $47.69, just below a 52-week high [3] - A reduction in pessimism in the options market could provide additional support, with CELH's 50-day put/call volume ratio being higher than 93% of readings from the past year [3]

Core Insights - Evolving consumer lifestyles are driving demand for energy drinks, positioning Celsius Holdings, Inc. (CELH) to capitalize on market trends through strategic acquisitions, product innovations, digital marketing, and global expansion [1][9] Company Developments - The acquisition of Alani Nu, completed in April, is expected to enhance Celsius's position in the modern energy category, contributing to approximately 20% of the overall energy drink category dollar growth in Q1 2025 [2] - Celsius is diversifying its product offerings beyond traditional canned drinks with innovations such as Celsius Essentials and CELSIUS Hydration powder sticks, which help maintain consumer engagement [3][9] - The "LIVE FIT" campaign aims to tap into lifestyle-driven trends, promoting energy drinks that support a balanced lifestyle and targeting the female consumer segment to drive future growth [4] Competitive Landscape - Celsius faces competition from PepsiCo and Monster Beverage, both of which are adapting their product portfolios to meet evolving consumer preferences [5][6][7] - PepsiCo is focusing on zero-sugar offerings and functional hydration products, while Monster Beverage continues to see growth in the energy drink market, with a 2.2% increase in sales in Q1 2025 [6][7] Financial Performance - Celsius shares have increased by 65% year-to-date, contrasting with a 3.3% decline in the industry [8] - The company trades at a forward price-to-earnings ratio of 43.99X, significantly higher than the industry average of 16.13X [10] - Zacks Consensus Estimate indicates year-over-year earnings per share (EPS) growth of 17.1% for 2025 and 41.5% for 2026, with recent upward revisions in EPS estimates [11]

Core Insights - Celsious (NASDAQ: CELH) has experienced a significant recovery, rising from a 52-week low of $21.10 in February to approximately $44.50, marking a remarkable 110% increase [1] - This rebound follows a challenging 2024, during which the company's shares fell by 56.7%, highlighting the necessity and merit of the recent recovery [1] Company Overview - Celsious is positioned within the growth stock sector, with a focus on identifying stocks that offer high expected returns and a solid margin of safety [1] - The company is part of a broader investment community that shares actionable trading ideas across various asset classes, sectors, and industries [1] Investment Community Features - The investment service includes a Funds Macro Portfolio, which focuses on ETFs and CEFs for less active investors, and a Single Macro Portfolio, which is equity-focused for more active investors [1] - Educational content and a live chat room are available for subscribers to discuss investment ideas with peers [1]

Core Viewpoint - Celsius Holdings Inc. is experiencing fluctuations in stock performance and is set to release financial results that indicate a mixed outlook for earnings and revenue growth [1][2][3]. Financial Performance - The company's stock closed at $44.44, reflecting a decrease of 2.35% from the previous day, underperforming the S&P 500's gain of 0.32% [1]. - Projected EPS for the upcoming release is $0.23, representing a 17.86% decline year-over-year, while revenue is expected to reach $631.19 million, a 57.02% increase from the same quarter last year [2]. - For the full year, earnings are projected at $0.82 per share and revenue at $2.18 billion, indicating increases of 17.14% and 60.67% respectively compared to the prior year [3]. Analyst Estimates and Market Sentiment - Changes in analyst estimates for Celsius Holdings are crucial as they reflect short-term business trends, with positive revisions indicating a favorable outlook on business health and profitability [4]. - The Zacks Rank system, which assesses these estimate changes, currently ranks Celsius Holdings at 3 (Hold), with a recent increase of 1.69% in the EPS estimate over the past month [5][6]. Valuation Metrics - Celsius Holdings is trading at a Forward P/E ratio of 55.39, significantly higher than the industry average of 15.81, indicating a premium valuation [7]. - The company has a PEG ratio of 1.61, which is slightly below the industry average PEG ratio of 1.66, suggesting a reasonable growth expectation relative to its price [7]. Industry Context - The Food - Miscellaneous industry, which includes Celsius Holdings, is currently ranked 175 in the Zacks Industry Rank, placing it in the bottom 30% of over 250 industries [8].

Core Insights - Celsius Holdings, Inc. (CELH) is expanding its product line by acquiring Alani Nu, a brand targeting female consumers, officially closing the deal on April 1, 2025, which adds a second billion-dollar brand to its portfolio [1] - The acquisition aligns with a trend in the energy drink market towards wellness-focused consumption, with female consumers being a significant growth segment [1] Group 1: Alani Nu Performance - In Q1 2025, Alani Nu's retail sales increased by 88% year-over-year, raising its market share by 221 basis points to 5.3% [2] - Alani Nu achieved over $1 billion in trailing 12-month retail sales, highlighting its strong consumer connection and role in the better-for-you beverage trend [2] - The combined portfolio of Celsius and Alani Nu captured a 16.2% dollar share in the energy drink category, an increase of 81 basis points from the previous year, contributing approximately 20% of total category dollar growth in Q1 2025 [2][7] Group 2: Integration and Market Position - The integration of Alani Nu is crucial, as management noted only a 15% overlap between Celsius and Alani Nu consumers, indicating potential for complementary growth [3] - As competition in functional energy intensifies, leveraging Alani Nu's female-focused brand could be pivotal for Celsius's market position [3] Group 3: Competitive Landscape - PepsiCo (PEP) reported strong performance in its functional beverage portfolio, with Pepsi Zero Sugar gaining market share and Gatorade leading in sports hydration, alongside a pending acquisition of Poppi, a prebiotic soda brand [4] - The Coca-Cola Company (KO) highlighted growth in its Fairlife brand, with 30% of its volume now from low or no-calorie beverages, emphasizing its commitment to health-conscious consumption [5] Group 4: Financial Performance and Estimates - Celsius shares have increased by 3.1% over the past month, outperforming the industry growth of 1.8% [6] - CELH trades at a forward price-to-earnings ratio of 45.27X, significantly higher than the industry average of 16.07X [8] - The Zacks Consensus Estimate for CELH's EPS indicates year-over-year growth of 17.1% for 2025 and 41.5% for 2026 [9]

Valuation Concerns - Celsius Holdings, Inc. (CELH) is trading at a forward 12-month price-to-earnings (P/E) multiple of 45.27X, significantly higher than the Zacks Food - Miscellaneous industry average of 15.96X, the Consumer Staples sector average of 17.32X, and the S&P 500 average of 22.61X [1][7] - The current valuation exceeds the median P/E level of 33.07 recorded over the past year, raising questions about whether CELH can justify this premium through sufficient growth [1][7] Stock Performance - Over the past three months, CELH shares have increased by 24%, outperforming the industry growth of 0.1%, sector growth of 1.1%, and S&P 500 growth of 19% [5] - Competitors such as Monster Beverage gained only 3%, while PepsiCo and Coca-Cola saw declines of 2.2% and 2.4%, respectively, during the same period [5] Market Position and Growth Strategy - Celsius Holdings continues to strengthen its position in the energy beverage market, with the acquisition of Alani Nu contributing to approximately 20% of the total dollar growth in the energy drink category in Q1 2025 [9] - The company's focus on sugar-free, better-for-you products aligns with consumer trends, with sugar-free energy drinks accounting for 86% of the total growth in the energy category during the first quarter [10] - Recent product innovations include new Vibe and ESSENTIALS flavors and the launch of CELSIUS HYDRATION, aimed at the $1.4 billion hydration powder market [11] Retail Expansion - Celsius has expanded its distribution through over 1,800 Home Depot locations and 18,000 Subway restaurants, enhancing its presence in foodservice and on-the-go consumption channels [12] Financial Performance - In Q1 2025, Celsius Holdings reported a 7% year-over-year revenue decline, attributed to lower product velocity and changes in promotional timing [15] - Operating expenses rose to $120.3 million in Q1 from $99 million a year earlier, driven by increased marketing and costs related to the Alani Nu acquisition [16] Earnings Estimates - The Zacks Consensus Estimate for earnings per share has seen upward revisions, with the current quarter and financial year estimates rising to 23 cents and 82 cents, respectively [13]

Core Insights - Celsius Holdings (CELH) is positioning itself as a leader in the modern energy category by expanding its product portfolio beyond traditional energy drinks, including the acquisition of Alani Nu and the launch of CELSIUS HYDRATION [1][8] - The company is experiencing strong international growth of 41% and holds a 16.2% dollar share in the U.S. energy drink category [3][8] - CELH's stock has surged 75% year to date, significantly outperforming the industry average [7] Product Expansion - The acquisition of Alani Nu, which appeals to female consumers, complements CELH's core offerings and broadens its consumer base [1] - CELH has entered the hydration market with CELSIUS HYDRATION, targeting the $1.4 billion hydration powder market [1] - New flavors and multipack expansions have contributed to over 50% of sales in certain channels [2] Market Position and Competitors - CELH's competitors include PepsiCo (PEP) and The Coca-Cola Company (KO), both of which are transforming their portfolios to meet consumer demands for health and functionality [4][5][6] - PepsiCo is focusing on zero-sugar variants and wellness-driven products, while Coca-Cola is prioritizing bold product launches and integrating advanced digital marketing [5][6] Financial Performance - Despite a 7% revenue decline in Q1 2025, CELH remains optimistic about future growth due to a strong prior-year comparison and ongoing product innovation [3][8] - The company has a forward price-to-earnings ratio of 46.19X, significantly higher than the industry average of 15.91X [9] - The Zacks Consensus Estimate indicates year-over-year EPS growth of 17.1% for 2025 and 41.6% for 2026, with stable estimates over the past week [10]