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Finding the Best Top-Ranked Stocks to Buy in May and Beyond
CELHCelsius(CELH) ZACKS·2025-04-22 21:05

Market Overview - Stocks surged on Tuesday as optimism grew regarding potential trade negotiations between the U.S. and China, with Treasury Secretary Scott Bessent indicating a possible de-escalation in the tariff conflict soon [1] - The positive sentiment followed a selloff on Monday that brought the Nasdaq back to its 2021 highs, with bulls maintaining their position at this critical level [2] Company Analysis: Celsius Holdings, Inc. (CELH) - Celsius Holdings is positioned as a strong competitor in the energy drink market, directly challenging major players like Red Bull, with a focus on healthier, zero-sugar alternatives [7] - The company has seen significant revenue growth, expanding from 131millionin2020toaprojected131 million in 2020 to a projected 1.35 billion in 2024, despite a slowdown to 3% growth last year after three consecutive years of over 100% year-over-year growth [9] - Celsius contributed to 30% of all category growth in 2024 and increased its market share by 160 basis points to 11.8% [9] - The company completed a 1.8billionacquisitionofAlaniNutritiononApril1,enhancingitsportfolioofnextgenerationenergydrinksandsupplements[9]Revenueprojectionsindicateagrowthof611.8 billion acquisition of Alani Nutrition on April 1, enhancing its portfolio of next-generation energy drinks and supplements [9] - Revenue projections indicate a growth of 61% in 2025 and 19% in 2026, with adjusted earnings expected to increase by 50% and 13%, respectively [10] - Consensus earnings estimates have risen by 24% for 2025 and 19% for 2026 in recent months [10] - Despite a remarkable 2,300% increase in stock price over five years, shares are currently trading 60% below their all-time highs, around 37.68 [8][11] - The stock has recently surpassed its 50-day and 200-day moving averages, nearing a bullish golden cross, and is trading at a 60% discount to its five-year median forward earnings multiple of 33.2X [15]