Celsius Holdings, Inc. (NASDAQ: CELH) has rapidly emerged as a leading player in the energy drink and functional beverage industry, offering healthier alternatives to traditional high-sugar energy drinks. The company has successfully positioned itself in the fast-growing health-conscious beverage market, appealing to fitness enthusiasts and health-conscious consumers who seek an energy boost without artificial additives.
In 2024, CELH stock has attracted strong investor interest, fueled by its revenue growth, strategic distribution partnerships, and expanding global footprint. Over the past year, Celsius Holdings has demonstrated solid stock performance, with its 52-week high reaching $$99.62 and a low of $21.1, reflecting increased market demand for its products.
Investors are now asking: Is Celsius Holdings stock a good buy in 2025? With its strong fundamentals, expanding market share, and potential for long-term growth, CELH presents a compelling investment opportunity. However, challenges such as increasing competition, market volatility, and valuation concerns must also be considered. This article explores the bullish and bearish cases for CELH stock and evaluates whether investors should buy, hold, or wait for a better entry point in 2025.
Celsius Holdings Stock Performance & Financial Overview
Celsius Holdings (CELH) saw a strong opening at $34.16, significantly higher than its previous close of $25.53. Throughout the trading day, the stock fluctuated between a low of $30.12 and a high of $34.44. The company currently holds a market capitalization of $7.67 billion, with a total of 235.03 million shares outstanding.
CELH trades at a price-to-earnings (P/E) ratio of 72.49, reflecting high investor expectations for future earnings growth. The stock has a free float percentage of 71.23%, indicating the portion of shares available for public trading. The book value per share stands at $4.70, while the cash flow per share is reported at $0.53, providing insights into the company’s financial health.
The stock experienced substantial trading activity, with a volume of 62.38 million shares, suggesting heightened investor interest and volatility in the market.
CELH Income Statement Overview
Celsius Holdings has reported strong revenue growth and profitability over recent quarters, showcasing its ability to expand within the energy drink sector.
| Date | 2024-09-30 | 2024-06-30 | 2024-03-31 | 2023-12-31 | 2023-09-30 |
| Reported Currency | USD | USD | USD | USD | USD |
| Calendar Year | 2024 | 2024 | 2024 | 2023 | 2023 |
| Period | Q3 | Q2 | Q1 | Q4 | Q3 |
| Revenue | $265.748M | $401.977M | $355.708M | $347.435M | $384.757M |
| Cost of Revenue | $143.519M | $194.298M | $174.73M | $182.295M | $190.675M |
| Gross Profit | $122.229M | $207.679M | $180.978M | $165.14M | $194.082M |
| Gross Profit Ratio | 0.46 | 0.517 | 0.509 | 0.475 | 0.504 |
The company has demonstrated consistent revenue growth, with Q2 2024 revenue peaking at $401.977M, the highest in recent quarters. While gross profit margins remain strong, the company must continue managing its cost of revenue to sustain profitability.
Celsius Holdings (CELH) vs. Competitors: Performance Snapshot
Celsius Holdings (CELH) recently closed at $32.62, significantly lower than its 52-week high of $99.62, representing a 67.26% decline from its peak. However, it remains well above its 52-week low of $21.10, marking a 54.60% recovery from its lowest point. CELH also exhibited strong trading activity, with 11.63% of its shares traded in the past week, indicating heightened investor interest.
In contrast, Suntory Beverage & Food (STBFY) closed at $15.77, down 20.75% from its yearly high of $19.90, while recovering 8.61% from its low of $14.52. However, its trading volume remained notably low at 0.03%. National Beverage Corp (FIZZ) traded at $40.68, showing a 23.93% drop from its peak of $53.48, but only a 5.17% gain from its yearly low of $38.68, with a 0.20% trading volume.
Meanwhile, Coca-Cola Consolidated (CCOJY) saw a 14.27% decline from its high of $8.77, but a 32.84% recovery from its $5.66 low, closing at $7.52. Embotelladora Andina S.A. (AKO.B) fared better, falling only 3.44% from its peak of $20.84, while rebounding 37.86% from its $14.59 low, closing at $20.12. Lastly, Primo Water (PRMB) demonstrated the strongest recovery among the group, closing at $34.07, down just 1.33% from its $34.53 high, but surging 120.59% from its $15.45 low.
CELH stands out with its high trading volume, yet it has suffered the steepest decline from its peak, while PRMB has shown the most impressive recovery among its competitors.
Total Return Comparison: CELH vs. Competitors
CELH has delivered strong short-term performance, particularly in 1-month and year-to-date (YTD) returns, but it has struggled over the six-month and nine-month periods.
In the past month, CELH recorded a 21.67% gain, outpacing most competitors except AKO.B (12.36%) and PRMB (3.24%), while others posted negative or minimal gains. Over the three-month period, CELH saw a 12.29% increase, trailing PRMB (20.69%) and AKO.B (19.66%), while STBFY, FIZZ, and CCOJY remained in negative territory.
However, CELH struggled in the six-month return, posting a 20.98% decline, which was the weakest among the group, except for PRMB, which outperformed significantly with a 60.30% gain. At the nine-month mark, CELH’s performance worsened further to -66.01%, underperforming competitors such as CCOJY (18.59%) and PRMB (60.64%).
On a YTD basis, CELH rebounded with a 23.84% return, leading the industry, followed by AKO.B (15.04%) and PRMB (10.72%), while other competitors saw negative returns. However, in a one-year period, CELH suffered a 46.69 % drop, making it the worst performer, whereas AKO.B (46.73%) and PRMB (135.45%) posted substantial gains.
In the long term, CELH remains a strong growth stock, with a three-year return of 89.54%, but it was outpaced by AKO.B (139.27%) and PRMB (138.45%), both of which significantly outperformed. Meanwhile, STBFY (-21.74%) and FIZZ (2.73%) lagged.
CELH has demonstrated strong momentum in short-term returns, particularly 1-month and YTD performance, yet it has faced sharp declines in the six-month and nine-month periods. However, its three-year growth of 89.54% highlights its potential as a long-term investment, despite facing challenges in the past year.
Among its peers, PRMB and AKO.B have shown remarkable resilience, leading in one-year and three-year gains, while CELH remains a volatile but high-potential player in the beverage industry.
CELH Recent Analyst Ratings
Analyst ratings for Celsius Holdings have been mixed, with several firms adjusting their price targets based on the stock’s performance and future outlook:
- Mark Astrachan from Stifel maintained a Buy rating, lowering the price target from $45 to $37 on February 10, 2025.
- Gerald Pascarelli of Needham reiterated a Buy rating with a price target of $38 on January 28, 2025.
- Michael Lavery from Piper Sandler maintained an Overweight rating, adjusting the target from $47 to $33 on January 23, 2025.
- Peter Grom of UBS maintained a Buy rating, revising the price target from $45 to $39 on January 16, 2025.
While analysts remain bullish on Celsius Holdings’ long-term growth, some price target adjustments reflect concerns over valuation and market conditions. Investors should monitor analyst sentiments and earnings reports when considering an investment in CELH.
Bullish Case: Why Celsius Holdings Stock Could Rise in 2025
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Explosive Growth in the Energy Drink Market
The global energy drinks market is experiencing significant growth, driven by health-conscious consumers seeking cleaner energy alternatives. Projections indicate that the market will reach approximately $125.11 billion by 2030, growing at a compound annual growth rate (CAGR) of 7.9% from 2024 to 2030. This surge is largely attributed to the rising demand for health and fitness products, as well as functional beverages that align with active lifestyles.
Companies like Celsius Holdings are capitalizing on this trend by expanding into new global markets and enhancing brand awareness.
A notable example is Celsius’s recent acquisition of Alani Nu for $1.8 billion, aiming to strengthen its market position and appeal to a broader demographic. Such strategic expansions are essential for companies to remain competitive and meet the evolving preferences of consumers worldwide..
Bearish Case: Risks & Challenges for CELH Stock in 2025
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Market Competition & Industry Challenges
The energy drink market is experiencing intensified competition, with major players like Monster Beverage, Red Bull, and PepsiCo dominating significant market shares. As of 2020, these three companies collectively held approximately 86.6% of the market, with Red Bull at 44%, Monster at 33.4%, and PepsiCo at 9.2%.
This concentration presents challenges for emerging brands like Celsius Holdings, which must navigate a saturated market landscape. The proliferation of established brands and new entrants has led to market saturation, intensifying competition and exerting pricing pressures that can impact profit margins.
Additionally, the energy drink sector has shown signs of deceleration. In the first half of 2024, U.S. energy drink dollar sales at retail grew by 3.4%, with volume sales increasing by 1.7%, indicating a slowdown compared to previous years.
Celsius Holdings has recently faced valuation concerns, with its stock experiencing significant volatility. In January 2025, shares reached an intraday low of $24.55, the lowest since July 2022.
Over the past year, the stock has declined by over 58%, reflecting investor apprehension.
The Verdict: Is CELH Stock a Buy, Hold, or Sell in 2025?
Bullish Arguments
- Strong revenue growth, market expansion, and strategic partnerships.
- Analysts’ price targets indicating further upside potential.
- Consumer trends favoring Celsius brand over traditional energy drinks.
Bearish Arguments
- Concerns over market competition, valuation, and potential stock volatility.
- Regulatory risks and economic downturns impacting consumer spending.
Final Verdict
For long-term investors, Celsius Holdings stock remains an attractive growth opportunity, but short-term volatility should be considered. If Celsius continues to expand strategically and maintain its strong financial performance, the stock could see significant gains in 2025. However, potential investors should assess their risk tolerance before investing.
