J.P. Morgan: 2 Beaten-Down Stocks Poised for a Comeback

As an investor, it's always exciting to find stocks that have taken a beating but have the potential to rebound. J.P. Morgan analysts have identified two such stocks that could be set for a comeback: Celsius Holdings (CELH) and DexCom (DXCM). Both stocks have declined by more than 30% in the past year, but analysts believe they have the potential to bounce back in 2025. Let's take a closer look at these two stocks and the catalysts that could drive their rebound.

1. Celsius Holdings (CELH):
Celsius Holdings, an energy drink company, has struggled in recent months due to a significant drop in revenue and a key partner, PepsiCo, reducing its inventory of Celsius products. However, analysts believe that the company's energy drink market potential remains strong, as consumers continue to seek healthier energy options. If Celsius can demonstrate that the inventory reduction was a temporary issue and return to growth, the stock could rebound significantly in 2025.



2. DexCom (DXCM):
DexCom, a company that specializes in continuous glucose monitoring (CGM) devices, has faced a slow growth rate in recent months. Investors have been bearish on the company due to the excitement surrounding GLP-1 weight loss drugs, which may reduce the need for CGM devices. However, analysts believe that the launch of the new Stelo device, which targets people who don't require insulin and doesn't require a prescription, could expand the company's customer base. Additionally, the growing awareness of health risks related to high glucose levels could increase demand for CGM devices. If DexCom can successfully launch and market the Stelo device, and if the restructuring of its salesforce leads to improved growth, the stock could quickly rally in 2025.



In conclusion, both Celsius Holdings and DexCom have faced significant challenges in recent months, leading to a decline in their stock prices. However, analysts at J.P. Morgan believe that these two stocks have the potential to rebound in 2025, driven by specific catalysts. Investors should closely monitor the companies' performance and wait for signs of improvement before considering an investment. As always, it's essential to do thorough research and consider your risk tolerance before making any investment decisions.