Energy drink maker Celsius Holdings is Thursday's pick for IBD 50 Growth Stocks To Watch. Celsius stock has been rallying since the company's May 7 earnings report and is climbing to a buy point in a cup base.
Celsius makes zero-sugar energy drinks targeting fitness enthusiasts and consumers looking to lead active lifestyles. It touts that its drinks offer health benefits, including accelerating metabolism and burning fat when exercising. The beverage maker markets to 10 countries and has a partnership with PepsiCo that allows its to distribute to new markets.
The company holds the top spot out of 17 stocks in the nonalcoholic beverages group, which ranks No. 40 out of the 197 industry groups that Investor's Business Daily tracks.
Celsius Stock Rebounds After Mixed Earning Report
Celsius stock is completing the right side of a cup base with a 99.62 buy point, derived from its record high on March 14. Shares fell nearly 1.8% in heavy volume after the fitness beverage company reported mixed first-quarter earnings results two weeks ago. Two days later the stock jumped 6.4% and reclaimed its 50-day moving average.
Shares have been trending higher since then. The stock's 12 increasing days out of 15 days triggered the ants indicator on Wednesday, shown by the small black mark above the day's price bar. Celsius stock has gained around 69% year to date.
Earnings Growth Looks Healthy
Celsius topped first-quarter profit estimates but missed sales expectations. Quarterly profits grew an impressive 108% to 27 cents a share from 13 cents a share in the prior year's same period. First-quarter sales grew 37% to $355.7 million but missed analysts' consensus estimate of $390.4 million. But its Q1 gross margin improved to 51.2% from 43.8% in the prior year's same quarter.
Earnings growth is expected to taper after huge increases over the last five quarters. FactSet estimates put second-quarter profit growth at 72% then settling in a range of 34% to 36% for the following three quarters. Full-year 2024 profit is expected to climb 40% then 35% in 2025.
Quarterly sales estimates are for growth in the 29% to 31% range for the next four periods. Celsius stock holds a best-possible 99 IBD Composite Rating.
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