CELH Surpasses 100% Gains in 2025: Is the Stock Still a Buy?

Core Insights - Celsius Holdings, Inc. (CELH) has significantly outperformed the market in 2025, with shares more than doubling year to date, establishing itself as a category leader with strong fundamentals [1][19] - The acquisition of Alani Nu has enhanced Celsius' market presence and scale, contributing to robust revenue growth and solid second-quarter results [1][10] - Investors are now assessing whether the stock still has upside potential following its sharp rally [1] Stock Performance - Celsius Holdings has surged 112.9% year to date, contrasting with a 6.8% decline in the broader industry [2] - The company's performance has outpaced the Zacks Consumer – Staples sector's growth of 3.1% and the S&P 500's rise of 12.7% during the same period [2] - Compared to peers, Celsius has significantly outperformed Monster Beverage (22.4% increase), Coca-Cola (6.3% increase), and PepsiCo (7.5% decrease) [3] Financial Highlights - Closing at $56.07, CELH stock is 13.3% below its 52-week high of $63.50 reached on August 29, 2025 [7] - The company reported revenues of $739.3 million for Q2 2025, an 84% increase year over year, with Alani Nu contributing $301.2 million [10][9] - International sales rose 27%, driven by growth in the U.K., France, and Australia [9][13] Growth Drivers - The energy drink category is one of the fastest-growing beverage segments, appealing to health-conscious consumers seeking zero-sugar alternatives [11] - Celsius and Alani Nu have strong household penetration rates of 34% and 22%, respectively, with repeat purchase rates exceeding 65% [11] - Product innovation is central to Celsius' strategy, with new flavors and offerings driving sales and brand relevance [12] Market Expansion - North America remains the primary growth engine, while international sales are also increasing, with foodservice distribution volume up 9.8% in Q2 [13] - The integration of Alani Nu is expected to create meaningful synergies and expand distribution channels [15] Valuation and Analyst Sentiment - Celsius trades at a forward price-to-earnings ratio of 43.18, significantly above the industry average of 15.67, reflecting strong market confidence [18] - Analysts have raised earnings forecasts for the current and next fiscal year, indicating growing confidence in the company's trajectory [15]