Celsius-2 Growth Stocks Down Over 25% to Buy Before They Soar

Group 1: Celsius Holdings - Celsius Holdings operates in a $200 billion energy drink market and has seen its stock decline 68% due to a weak retail environment, despite being well-positioned for long-term growth [2][4] - Fourth-quarter revenue decreased by 4% year over year, but retail sales of Celsius products grew by 22%, indicating strong sales volumes [3][4] - The brand contributed to 30% of the energy drink category growth in 2024 and holds an 11.8% market share [4] - Celsius announced the acquisition of Alani Nu for$ 1.8 billion, which will enhance its product offerings and contribute to profits in the first year [5] - The company is expanding internationally and has a forward price-to-earnings (P/E) ratio of 29, with expected earnings growth of 25% annually [6] Group 2: Lululemon Athletica - Lululemon Athletica operates in a $211 billion athletic apparel industry and has shown higher revenue growth than Nike, currently trading about 28% off its previous peak [7] - Revenue from China grew by 39% year over year, indicating strong international growth potential [8] - The company has a return on capital employed of 45%, reflecting its premium pricing strategy and store efficiency [9] - Lululemon plans to expand into new markets, including Italy, Denmark, Belgium, Turkey, and the Czech Republic, with international revenue making up 26% of total revenue [9] - The stock has a forward P/E of 23, suggesting reasonable valuation for expected double-digit earnings growth in the coming years [10]