New Trade for January 10th, 2024

Celsius Holdings (NASDAQ:CELH): A High-Growth Stock with Potential to Double

For investors looking to start the year with a promising growth stock, Celsius emerges as a standout candidate. This $11 billion sports beverage company is demonstrating high revenue and earnings growth, making its valuation increasingly attractive.

Despite already being up by 8% year-to-date, Celsius has shown an astounding growth of 4,600% over the past five years. Such significant gains don’t necessarily point to overvaluation. Instead, they reflect rising consumer demand, a key driver for continued growth, and Celsius is perfectly positioned to capitalize on this trend.

A pivotal moment for Celsius came in 2022 when it partnered with Pepsi (PEP) to expand its distribution. This strategic alliance opens doors to international markets, significantly broadening the company’s reach.

Celsius’s growth trajectory is primarily fueled by its performance in North America. In the third quarter, the company reported a 104% year-over-year increase in revenue, with North America contributing $371 million of the total $385 million. This dominance in the North American market is a critical factor in Celsius’s potential for further growth.

For perspective, Pepsi generated almost 60% of its revenue from North America in the 12 weeks ended September 9, 2023. If Celsius can replicate this success and make North America represent a similar percentage of its total revenue, the stock could see a dramatic surge. While reaching this level might take a few years, the robust growth in North America is a promising sign.

Celsius represents a compelling growth stock for investors seeking opportunities with significant upside potential. With its rapid expansion, strategic partnerships, and strong foothold in the North American market, CELH is a stock that could potentially double in 2024, making it a must-watch in your investment portfolio.

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