Health & Wellness Tailwinds Boost Celsius: Can It Keep Up the Pace?
CELH "LIVE FIT" platform, which revolves around health, aspiration and daily functionality, strongly relates to today's consumers. As such, the company continues to develop programs under this platform, supported by extensive research to deepen consumer engagement, boost category participation and solidify its position in the growing sugar-free section.
With its entirely sugar-free energy drinks and powders under the Celsius and Alani brands, the company has bolstered its leadership in this fast-expanding category. By introducing CELSIUS HYDRATION, which is a new line of zero-sugar, zero-caffeine electrolyte powder sticks, CELH has tapped into the rapidly growing hydration powder segment.
Celsius sees an untapped potential among the female community in the energy drinks space. The company is well-positioned to leverage this opportunity with its gender-balanced consumer base, further reinforced by the addition of Alani Nu, a brand highly popular among women.
Rising awareness on health, wellness and nutrition redefines the competitive backdrop, with innovation acting as a primary catalyst. CELH's laser focus on health-conscious consumers and strategic expansion into functional beverages will continue to solidify its position.
CELH's Competition
Amid growing awareness in health and wellness, PepsiCo, Inc. PEP and The Coca-Cola Company KO are giving tough competition to Celsius.
PepsiCo is strategically reshaping its product portfolio to align with the evolving consumer preferences, with a sharp focus on functionality, health and affordability. In the beverages category, PEP is intensifying its focus on zero-sugar offerings while extending its reach into functional hydration, powders and tablets. Pepsi Zero Sugar, Gatorade Zero and rapid hydration variants are doing well. PepsiCo's emphasis on a solid innovation pipeline, designed to resonate well with evolving consumer preferences, positions it well for growth.
Coca-Cola's strategy of becoming a total beverage company is quite on track. The company has further reinforced its diversified brand portfolio, with a particular focus on low and no-calorie offerings like Coca-Cola Zero Sugar. Coca-Cola's first prebiotic soda, Simply Pop, and its global tea brand, Fuze, have been performing well. With a sharpened focus on wellness and functional innovation, Coca-Cola seems poised to capitalize on this growing trend.
CELH's Price Performance, Valuation and Estimates
Celsius shares have risen 80.8% year to date against the industry 's 3.2% dip.
From a valuation standpoint, CELH trades at a forward price-to-earnings ratio of 47.19X compared with the industry's average of 15.84X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CELH's 2025 and 2026 EPS indicates year-over-year growth of 15.7% and 42.4%, respectively. The company's EPS estimates for 2025 and 2026 have moved southward in the past 30 days.
Image Source: Zacks Investment Research
Celsius carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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