CELH - Celsius stock hits record high: is CELH the Nvidia of beverages?
2024-02-29 06:16:02 ET
Celsius Holdings (NASDAQ: CELH) stock price powered to an all-time high, continuing a remarkable rally that has been going on since 2019. It soared by more than 6% in the pre-market, reaching a record high of $72. It has jumped by more than 7,200% from its lowest level in 2019, giving it a market cap of over $15 billion.
Nvidia of beverages
Celsius Holdings has transformed itself into the Nvidia of the beverages market, thanks to its popularity and superior growth rate. This explains why the company’s shares have surged hard in the past two years as its popularity in the US has continued.
The main reason why Celsius Holdings stock price is soaring is that investors are cheering its strong financial results. Its total revenue jumped to $347 million, beating the analyst consensus of $331 million.
The figure was a bigger increase than the $177 million it released in the same quarter in 2022. It will also be higher than the $259 million it made in the first and second quarter of the year. However, because of seasonal reasons, it will be lower than the previous quarter’s $384 million.
Celsius Holdings has achieved robust growth by mirroring what Monster Beverages did. As a smaller energy drink, Monster partnered with Coca-Cola, a company whose products are found around the world for distribution.
Celsius, on the other hand, has partnered with PepsiCo, another giant in the beverage industry. Pepsi has started distributing its products in the US, where it is growing at a fast pace. Its North American revenues jumped by 97% to $333 million while its international segment rose by 68% to $14.6 million.
Celsius Holdings has also become a highly profitable company. Its net income jumped to $39.1 million, a big improvement from the $28 million loss it made in the same quarter in 2022. Its annual profit came in at $183 million.
CELH stock price forecast
In my last article on CELH, I predicted that it would continue doing well, helped by its strong international market. This view was correct as the stock has jumped to a record high. It has risen by over 50% from its lowest level this year. It has even crossed the important resistance point at $68.8, its highest point in September.
Celsius remains above all moving averages while the Average Directional Index (ADX) has pointed upwards. The same is true with other oscillators. Therefore, the outlook for the stock is bullish, with the next point to watch being at $80.
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