1 Super Growth Stock Down 65% to Buy Hand Over Fist This Month

Core Viewpoint - Celsius is experiencing significant stock price decline despite long-term growth potential, presenting a potential buying opportunity for investors focused on the future [2][9]. Group 1: Short-term Challenges - The energy drink category has faced a slowdown in the U.S., impacting sales for Celsius, particularly in convenience stores, which are a key distribution channel [3]. - A partnership with PepsiCo led to initial inventory buildup, resulting in accelerated revenue growth of 100% year-over-year in the first year. However, as PepsiCo normalizes inventory, Celsius's revenue growth has slowed to 23% year-over-year [4][5]. Group 2: Long-term Growth Potential - Celsius is gaining market share within the energy drink category, increasing from 7% at the beginning of 2023 to approximately 12% recently, indicating strong competitive positioning [6]. - The company is expanding internationally, with less than 10% of consolidated sales coming from outside the U.S. Management aims to replicate its U.S. growth strategy in markets like Australia, New Zealand, the U.K., and France [7]. Group 3: Financial Metrics - Celsius's price-to-earnings (P/E) ratio has decreased to 31 after a significant stock price drop, making it appear more attractive for investment, especially if revenue growth resumes at a double-digit rate [8]. - Profit margins have improved, reaching 22.5% over the last 12 months, with expectations for further expansion in operating margins as growth stabilizes [9].