From Nasdaq: 2025-05-11 23:34:00

Celsius Holdings stock is a better investment option compared to Coca-Cola due to its faster revenue growth, higher operating cash flow margins, and better financial stability with lower debt and higher liquidity. Celsius stock, however, has shown historical volatility during market downturns, making it a riskier investment choice.

Despite historical volatility, Celsius stock has surged over 30% year-to-date, outperforming the S&P 500. The company’s long-term growth potential in the functional energy drinks market could make it an attractive investment, especially with a strategic distribution partnership with PepsiCo boosting market reach.

Investing in Celsius Holdings comes with risks, such as earnings falling short, increased competition in the health-oriented energy drink sector, and potential commodity cost increases. Investors should be prepared for potential downside risks of up to 40% in the stock price, but a long-term perspective could yield positive returns in the expanding functional energy drinks market.

For investors seeking exposure to the functional energy drinks market with reduced volatility, alternative investment strategies like the Trefis RV strategy or High-Quality portfolio offer diversification and potential returns. Celsius stock currently trading at $36 with a price-to-trailing-revenue multiple of 6x and an average analyst price target of $43, suggesting a potential upside of 20%.



Read more at Nasdaq: Should You Pick Celsius Over Coca-Cola?