Core Viewpoint - The comparison between Ingredion (INGR) and Celsius Holdings Inc. (CELH) indicates that Ingredion presents a better value opportunity for investors at this time [1]. Group 1: Zacks Rank and Earnings Outlook - Ingredion has a Zacks Rank of 2 (Buy), while Celsius Holdings Inc. has a Zacks Rank of 3 (Hold) [3]. - Ingredion is likely to have seen a stronger improvement in its earnings outlook compared to Celsius Holdings Inc. recently [3]. Group 2: Valuation Metrics - Ingredion has a forward P/E ratio of 12.00, whereas Celsius Holdings Inc. has a forward P/E of 57.15 [5]. - The PEG ratio for Ingredion is 1.09, while Celsius Holdings Inc. has a PEG ratio of 1.67 [5]. - Ingredion's P/B ratio is 2.18, in contrast to Celsius Holdings Inc.'s P/B of 26.98 [6]. Group 3: Value Grades - Based on various valuation metrics, Ingredion holds a Value grade of A, while Celsius Holdings Inc. has a Value grade of D [6]. - The solid earnings outlook for Ingredion further supports its position as the superior value option compared to Celsius Holdings Inc. [6].

Core Insights - Evolving consumer lifestyles are driving demand for healthy offerings, positioning Celsius Holdings, Inc. (CELH) favorably within the health and wellness trends through its "LIVE FIT" campaign [1][10] - The "LIVE FIT" platform emphasizes health, aspiration, and daily functionality, enhancing consumer engagement and participation in the sugar-free beverage category [2][5] Product Development - CELH has strengthened its leadership in the sugar-free energy drinks and powders market with the introduction of CELSIUS HYDRATION, a new line of zero-sugar, zero-caffeine electrolyte powder sticks [3] - The company is targeting untapped potential among female consumers in the energy drinks sector, bolstered by the acquisition of Alani Nu, a brand popular among women [4][10] Competitive Landscape - The health and wellness trend is intensifying competition, with PepsiCo and Coca-Cola adapting their product portfolios to focus on functionality and health [6][7][8] - PepsiCo is emphasizing zero-sugar offerings and functional hydration products, while Coca-Cola is diversifying its brand portfolio with low and no-calorie options [7][8] Financial Performance - CELH shares have increased by 80.8% year to date, contrasting with a 3.2% decline in the industry [9] - The company trades at a forward price-to-earnings ratio of 47.19X, significantly higher than the industry average of 15.84X [11] - Zacks Consensus Estimate indicates year-over-year EPS growth of 15.7% for 2025 and 42.4% for 2026, although recent estimates have been revised downward [12]

Industry Overview - The Zacks Food-Miscellaneous industry is experiencing challenges due to persistent inflation affecting consumer spending and a shift towards private-label products [1][4] - Rising input costs and operational expenses are squeezing profit margins across the sector [1][5] - The industry includes a variety of food and packaged food items, with sales primarily through wholesalers, distributors, and retail channels [3] Major Trends - The market landscape is tough, with consumers increasingly opting for lower-cost alternatives, impacting sales volumes for leading food brands [4] - Companies are adopting strategies focused on value marketing, promotional campaigns, and expanding affordable product lines to meet changing consumer demands [4] - Cost pressures are significant, with elevated prices for raw materials, labor, and transportation affecting profitability [5] Strategic Initiatives - Food companies are focusing on cost efficiency, product innovation, and portfolio diversification to navigate current pressures [2][6] - Established brands are leveraging customer loyalty and innovation to maintain market position and adapt to consumer preferences [6] - Companies are modernizing production capabilities and diversifying product offerings to ensure future growth [6] Industry Performance - The Zacks Food-Miscellaneous industry ranks 187, placing it in the bottom 24% of over 250 Zacks industries, indicating dull near-term prospects [7][8] - The industry's consensus earnings estimate has declined by 3.1% since April 2025, reflecting decreasing confidence in earnings growth potential [8] Comparative Analysis - Over the past year, the industry has underperformed the S&P 500, declining by 6.9% compared to the S&P 500's growth of 12.5% [9] - The industry is currently trading at a forward P/E of 15.85X, lower than the S&P 500's 22.43X and the sector's 17.39X [12] Company Highlights - Mondelez International is focusing on core categories and strategic portfolio reshaping, with a current EPS estimate of $3.02 [15][16] - Sysco Corporation is enhancing capabilities through its "Recipe for Growth" framework, with an EPS estimate of $4.38 [19][20] - McCormick & Company is leveraging innovation and brand marketing, with a current EPS estimate of $3.02 [23][24] - Celsius Holdings is rapidly growing in the beverage sector with a focus on health-conscious products, though its EPS estimate has declined to 81 cents [27][29]

Group 1 - Celsius Holdings Inc. closed at $45.89, with a +1.03% change from the previous day, outperforming the S&P 500's gain of 0.52% [1] - Over the past month, shares of Celsius Holdings Inc. have increased by 24.99%, while the Consumer Staples sector has decreased by 1.61% [1] Group 2 - The upcoming earnings disclosure is expected to show an EPS of $0.22, a decrease of 21.43% year-over-year, with quarterly revenue projected at $628.61 million, an increase of 56.38% from the previous year [2] - For the fiscal year, earnings are projected at $0.81 per share and revenue at $2.17 billion, reflecting increases of +15.71% and +60.34% respectively from the prior year [3] Group 3 - The Zacks Rank system indicates that Celsius Holdings Inc. currently holds a rank of 3 (Hold), with a recent EPS estimate decrease of 13.35% [5] - The company is trading at a Forward P/E ratio of 55.96, significantly higher than the industry average of 15.22, suggesting a premium valuation [6] Group 4 - Celsius Holdings Inc. has a PEG ratio of 1.63, compared to the Food - Miscellaneous industry's average PEG ratio of 1.58 [7] - The Food - Miscellaneous industry is ranked 176 in the Zacks Industry Rank, placing it in the bottom 29% of over 250 industries [7][8]

Core Viewpoint - Celsius Holdings has seen a significant increase in its price-to-earnings (P/E) ratio, now exceeding 143, compared to just above 30 last fall, prompting a reevaluation of its valuation [1] Financial Metrics - The forward P/E ratio, which measures the price relative to expected earnings over the next 12 months, currently stands at about 55, significantly lower than early 2024 levels when it surpassed 140 [3][4] - The forward P/E ratio is higher than mid-February levels, which fell as low as 26 [4] Earnings Performance - In Q1 2025, net income decreased to $44 million from $78 million in the same quarter the previous year, leading to a higher trailing P/E ratio due to lower profits [6] - Analysts project an 18% increase in earnings for 2025 and a 40% profit growth in 2026, suggesting that Celsius can justify its forward P/E ratio of 55 with expected growth [6] Stock Performance - Despite a year-to-date gain of over 70%, Celsius stock is still selling at nearly a 55% discount compared to its all-time high reached in early 2024, indicating potential for further price increases [7]

Core Insights - Celsius Holdings is highlighted as an exciting investment opportunity within the beverage industry, particularly in the health and wellness segment [1] Group 1: Company Overview - Celsius Holdings is recognized for its innovative product offerings that cater to health-conscious consumers [1] - The company has been actively engaging with market trends to identify growth opportunities [1] Group 2: Market Trends - The beverage industry is experiencing a shift towards healthier options, which aligns with Celsius Holdings' product strategy [1] - Analysts suggest that the demand for functional beverages is on the rise, presenting potential for companies like Celsius [1]

Group 1 - The article discusses the investment strategy of a family office fund led by Amrita, focusing on sustainable, growth-driven companies that aim to maximize shareholder equity [1] - Amrita has a background in high-growth supply-chain start-ups and has experience working with venture capital firms, which has contributed to her investment acumen [1] - The newsletter "The Pragmatic Optimist," co-founded by Amrita, emphasizes portfolio strategy, valuation, and macroeconomics, aiming to make financial literacy accessible [1] Group 2 - The article highlights the importance of democratizing financial literacy and simplifying complex macroeconomic concepts for better understanding among investors [1]

Company Overview - Celsius Holdings Inc. operates in the Soft Drinks & Non-alcoholic Beverages industry, with approximately 95% of its revenues generated from the U.S. market and the remaining from international markets [1]. Product Focus - The company is engaged in the development, processing, marketing, sale, manufacturing, and distribution of energy and functional drinks, along with other products [1].

Core Viewpoint - The recent analyst upgrade for Celsius Holdings Inc. is noteworthy due to a favorable risk-to-reward ratio and strong fundamental growth, indicating potential mispricing in the consumer discretionary sector [2][6]. Group 1: Company Performance - Celsius stock is currently priced at $43.71, reflecting a 6.20% increase, with a 52-week range between $21.10 and $64.19 [2]. - The company has experienced a significant decline, trading at only 64% of its 52-week high, which suggests that it may be undervalued compared to its peers [3][5]. - Analysts expect Celsius to report earnings per share (EPS) of up to 23 cents for Q3 2025, a 27.8% increase from the current 18 cents, indicating strong earnings growth [11]. Group 2: Analyst Sentiment - Truist Financial analyst W. Chappell has reiterated a Buy rating for Celsius with a price target of $50, suggesting a potential upside of nearly 24% [7]. - The stock has dropped around 30% over the past year, but analysts believe that the current price reflects most worst-case scenarios [5][8]. - Institutional investors, such as AllianceBernstein, have increased their stake in Celsius by 26.3%, indicating growing confidence in the stock [9]. Group 3: Market Context - The broader market has been volatile due to recent trade tariffs, impacting consumer-focused companies like Celsius [8]. - Celsius has a relatively modest market cap of $10.6 billion, making it more susceptible to market fluctuations [8]. - If a favorable trade deal is reached, current analyst projections could improve, potentially leading to upgraded valuations for Celsius [12].

Group 1 - Celsius Holdings, Inc. (NASDAQ: CELH) has experienced a significant price increase of up to 80% from this year's lows but is still trading around 2021 levels despite recent improvements [1] - The company has made a new acquisition and is focusing on international expansion, which is expected to enhance its growth potential [1] - The management team is described as good, indicating effective leadership and strategic direction for the company [1] Group 2 - The analyst has over 10 years of experience researching various companies across multiple sectors, including commodities and technology, which adds credibility to the analysis of Celsius Holdings [1] - The analyst has transitioned from writing a blog to creating a value investing-focused YouTube channel, indicating a shift in strategy to reach a broader audience [1]