Celsius Holdings: A Growth Stock Down 70% to Buy Right Now

Celsius Holdings (CELH) has been on a rollercoaster ride in the stock market, with its shares plummeting a whopping 70% from their all-time highs just a half-year ago. This short-term pain has left many shareholders wondering if there's still hope for this growth stock. The answer is a resounding yes, as long as you're willing to look beyond the recent downturn and focus on the long-term potential of this energy drink giant.



The decline in Celsius Holdings' stock price can be attributed to several factors, including market share stagnation, a headwind from its largest distribution partner, PepsiCo, and increasing competition from upstart brands like Alani Nu and Ghost. However, it's essential to remember that these factors may not be sustainable in the long term. The inventory issues with PepsiCo should resolve within the next few quarters, allowing Celsius' revenue to line up with actual sales from retailers to consumers. Additionally, while competition is fierce, Celsius is still a well-established brand with a strong presence in the energy drink market.

One of the most compelling reasons to consider Celsius Holdings as a buy right now is its international expansion potential. The company is only just beginning to tap into the vast global market for energy drinks, with opportunities in English-speaking countries and France. This expansion could drive significant revenue growth for Celsius in the coming years. Furthermore, the overall energy drink market continues to grow, taking share from traditional drink sources such as coffee, fruit juices, and soda. If Celsius can maintain or even grow its market share, this sector tailwind could help propel the company's revenue higher.

Another reason to be optimistic about Celsius Holdings is its pricing power. As a consumer packaged goods company, Celsius has the ability to raise prices on its energy drinks without facing significant customer pushback. This pricing power, combined with the company's steady international expansion and the growing energy drink market, could lead to substantial revenue growth for Celsius in the coming years.

In conclusion, Celsius Holdings may be down 70% from its all-time highs, but there are compelling reasons to consider this growth stock a buy right now. The company's international expansion potential, the growing energy drink market, and its pricing power all point to a bright future for Celsius. While there are certainly risks and challenges to overcome, the long-term potential of this energy drink giant makes it an attractive investment opportunity for patient investors.