Celsius Stock Keeps Putting the Fizz in the Biz

 Celsius Stock keeps bringing noise to the business

Another groundbreaking financial performance by Celsius Holdings (NASDAQ: CELH ) shouldn't surprise anyone anymore. That's the company behind functional, fruit-flavored fizzy drinks that help consumers burn fat and calories by temporarily boosting the body's metabolism, giving its bean counters an extra workout.

Celsius beat expectations for the second quarter after the close of trading on Tuesday. The stock then hit another all-time high in after-hours trading. The stock has been close to forty bags over the past five years, and investors and analysts alike continue to underestimate its strength. This is a good place for an investor. Let's take a closer look at Celsius' latest quarterly update.

Sparkling stock

Revenue for the three months ended June rose 112% to $326 million. The bottom line grew even faster as expanding margins more than quadrupled Celsius' profit to $40.9 million, or $0.52 per share. Analysts weren't sitting anywhere near those marks. Wall Street professionals modeled net income of $0.28 per share on a 79% margin.

If you're getting deja vu, it's probably because we saw this analyst-humiliating scene play out the same way three months ago. Celsia's profit also roughly doubled expectations for the first quarter, and the 95% increase in sales was well ahead of the 64% Wall Street forecast. Shares rose 20% the day after that financial performance slump. By the time the final bell rings on Wednesday, stocks may not match that kind of pop, but it's clear the market is discounting Celsius-level reality.

The beating was hidden in plain sight. There are third party tracking specialists in the beverage and energy drink market. The increase in volume, along with a slight increase in Celsius prices, indicated that revenue would more than double. Anything can happen on the way to the bottom line, but Celsius has only become more efficient since partnering with PepsiCo (NASDAQ: PEP ) as its new domestic distribution partner late last year.

Let's talk about the world's second largest soft drink brand because something interesting is happening with PepsiCo. Celsius has largely been a growth story in North America in recent years. North American sales rocketed 114% in the second quarter, better than the overall increase of 112%. International sales grew by only 45%, but that represents less than 5% of the current revenue mix. PepsiCo could turn that around, and that could come in handy as growth inevitably slows in the States.

PepsiCo invested $550 million in an 8.5% convertible preferred stake in Celsius last summer. The deal handed PepsiCo the keys to becoming its new domestic distribution partner, and could also include passport stamps. PepsiCo has already proven itself on Celsia's home turf, opening the door to stock Celsia in hotels, airports and casinos where it hadn't been before. Having PepsiCo as a minority stakeholder also brings the opportunity to help with international distribution, something Celsius has struggled with in the past.

However, the skeptics are still there. Short interest hit an all-time high last month, with more than 15% of outstanding shares sold short at one point. Why would anyone bet against a stock that routinely beats sales expectations? Bears will argue that valuations are tough, especially for the beverage stock. Celsius is trading at 65 times next year's earnings, but those analysts' earnings targets will move higher in the coming days.

The stock is unlikely to reach a low earnings or yield multiple until its growth slows dramatically. Growth in North America is accelerating quarter by quarter, and the rest of the world is still up for grabs. There could be a long end to the Celsius here and a long way back for those who continue to shortchange this long-term success.

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Investing in the right stocks is like finding the perfect blend of flavors – it's a combination of timing, trends and potential for growth. One such sizzling stock taking the market by storm is Celsius Holdings Inc. (NASDAQ: CELH). With its revolutionary approach to the beverage industry and consistent growth trajectory, Celsius stock has become a refreshingly promising investment opportunity. In this article, we'll dive into what sets Celsius apart, its recent performance, and why it continues to be a top choice for investors looking to add some noise to their portfolios.

 A look into the future of beverages

Celsius Holdings Inc. is a pioneer in health and wellness drinks and offers a range of energy drinks with a unique twist. Unlike traditional sugary energy drinks, which can leave consumers feeling drained after a short-term burst of energy, Celsius offers a healthier alternative. Packed with natural ingredients like green tea extract, guarana and ginger, Celsius energy drinks provide sustained energy without jitters or sugar crashes.

Revealing stellar financial performance

In the dynamic world of stocks, performance speaks volumes and Celsius is turning heads with its remarkable financial achievements. Over the past few years, the company's revenue growth has been nothing short of impressive. The brand's strategic focus on expanding its product offering, along with effective marketing initiatives, has led to a surge in demand for its beverages. As health conscious consumers continue to look for better alternatives, Celsius has successfully positioned itself to capitalize on this growing market trend.

Riding the wave of health and wellness

The health and wellness trend is here to stay and Celsius rides this wave with finesse. The shift towards a healthier lifestyle and increased awareness of the importance of fitness has led to an increase in demand for products that align with these values. With its commitment to offering energy drinks that not only provide a boost but also promote overall well-being, Celsius is perfectly positioned to meet these evolving consumer preferences.

Investigating investment potential

Investors are always looking for stocks with strong growth potential, and Celsius certainly fits the bill. As the market continues to reward companies that cater to health-conscious consumers, Celsius' innovative approach and expanding product line could translate into significant gains for shareholders. The company's progressive strategy, along with its ability to adapt to changing market dynamics, makes it an attractive prospect for both short-term traders and long-term investors.

Celsius Holdings Inc. is more than just a beverage company; it is a symbol of innovation, growth and a commitment to a healthier life. With a product portfolio that resonates with today's health-conscious consumers and a financial track record that speaks for itself, Celsius stock represents an attractive investment opportunity. As the company continues to bring buzz to the business, investors have a chance to ride the health and wellness wave while potentially reaping significant rewards. So if you're looking to add a refreshing and promising stock to your investment portfolio, Celsius might just be the blend of flavors you've been looking for.