Why Celsius Stock Is Starting to Look Like a Screaming Buy Right Now

"For investors looking for a top growth stock to buy now, I'd say the reality is there aren't many great options out there from a valuation standpoint. Indeed, many of the top AI-related stocks in the market have soared to astronomical levels, and investors looking for those sorts of 10x opportunities that seemed plentiful a few years ago may have less hope of finding another such winner in this environment."

"That said, there are a handful of growth stocks I've continued to follow that I now think could provide that kind of upside. These are companies that have valuations that have actually come down during this recent surge in AI enthusiasm, as capital flows away from these names and into the tech sector have provided a unique buying opportunity. Here's why I think Celsius ( NASDAQ:CELH) is one such top-tier opportunity right now."

"Celsius' past performance is truly a thing of beauty. Trading around $1 per share in 2019 (right before the pandemic), shares of CELH stock soared to an all-time high around $100 per share last year. However, since then, shares of this top energy drink maker have declined to around the $40 level. That means that a good chunk of the company's future growth which was priced in last year has since been taken out of its valuation."

Valuation opportunities among top growth stocks are limited as many AI-related names have surged to high levels, reducing the chance of finding another 10x winner. A small group of growth companies have seen valuations fall as capital shifted into the tech sector, creating selective buying opportunities. Celsius (CELH) experienced a dramatic rise from about $1 per share in 2019 to near $100 last year, then fell to around $40, removing much expected future growth from its valuation despite lower interest rates. Recent Q3 results showed $725 million revenue, up 173% year over year, gross margins above 51%, and EPS of $0.42, beating estimates by nearly 50%. GAAP net loss was driven by M&A integration costs related to an acquisition.

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