CELH Surpasses 100% Gains in 2025: Is the Stock Still a Buy?

Celsius Holdings, Inc. CELH has been one of the standout performers in 2025, with shares more than doubling year to date. The company has undeniably established itself as a category leader with strong fundamentals — robust revenue growth, expanding market share and a powerful innovation pipeline. The Alani Nu buyout has further boosted Celsius’ performance by broadening its market and scale, as evident from the solid second-quarter 2025 results. However, after such a sharp rally, investors are now weighing whether Celsius stock still offers upside or if caution is warranted.

CELH Stock Performance

In the year-to-date period, Celsius Holdings has soared 112.9% against the broader industry’s decline of 6.8%. The beverage giant comfortably outpaced the Zacks Consumer – Staples sector’s growth of 3.1% and the S&P 500’s rise of 12.7% in the same time frame. 

The Boca Raton, FL-based company has outpaced peers such as Monster Beverage Corporation MNST, The Coca-Cola Company KO and PepsiCo, Inc. PEP in the same time frame. While shares of Monster Beverage and Coca-Cola have risen 22.4% and 6.3%, respectively, year to date, PepsiCo has tumbled 7.5%.

CELH Price Performance vs. Industry, S&P 500 & Sector

Closing the trading session at $56.07 on Monday, CELH stock stands 13.3% shy of its 52-week high mark of $63.50 attained on Aug. 29, 2025. Celsius Holdings also trades above its 50 and 200-day moving averages, signaling strong upward momentum and price stability. The moving average is an important indicator for gauging market trends and momentum. This technical strength indicates positive market sentiment and confidence in the company's financial health and prospects. Let’s delve into CELH’s growth drivers and explore its prospects as an investment opportunity.

CELH Trades Above 50 and 200-Day Moving Averages

A Close Look at Celsius Holdings Stock

Celsius Holdings has been one of the most compelling stories in the beverage space this year. For the second quarter of 2025, the company reported revenues of $739.3 million, up 84% year over year. Alani Nu, acquired in April, contributed $301.2 million, while the flagship Celsius brand grew 9%, driven by stronger retail velocity, more shelf space and a favorable channel mix.

The broader energy drink category remains one of the fastest-growing beverage segments, fueled by younger, health-conscious consumers seeking zero-sugar, functional alternatives. Celsius and Alani Nu resonate strongly with women and Gen Z, with household penetration at 34% and 22%, respectively, and repeat purchase rates above 65%, according to the company’s second-quarter earnings release.

Product innovation remains central to Celsius’ strategy. In the second quarter, Alani Nu drove incremental sales with popular limited-time flavors like Cotton Candy and Sherbet Swirl, while its core SKUs maintained strong velocity. Meanwhile, Celsius introduced fizz-free offerings — Pink Lemonade and Dragon Fruit Lime — to meet demand for variety in zero-sugar energy. Seasonal flavors like Witch’s Brew and Pumpkin Cream have already hit shelves under Alani Nu, and Celsius plans to launch its first limited-time flavor this fall. These initiatives strengthen brand relevance and help sustain repeat purchases.

Geographically, North America remains the company’s growth engine, though international sales rose 27% in the second quarter to $24.8 million, driven by momentum in the U.K., France and Australia. Foodservice distribution is another growth engine, wherein volume increased 9.8% in the second quarter and now represents about 12% of Celsius’ North America sales to PepsiCo. Expanding presence across these channels offers significant runway for growth.

Despite strong momentum, challenges remain. Rising input costs, particularly aluminum and tariffs, could pressure margins in the second half of 2025. Integration of Alani Nu also carries execution risks, while elevated marketing investments and acquisition-related expenses may weigh on near-term profitability.

CELH Estimate Revisions

Analysts have raised their earnings forecasts for both the current and next fiscal year in the past 60 days, signaling growing confidence in Celsius’ trajectory. Strong product innovation, expanding distribution and meaningful synergies from the Alani Nu acquisition are expected to balance the near-term pressures, reinforcing the company’s position as a long-term winner in the energy drink category.

CELH’s Valuation Under the Spotlight

Celsius trades at a forward price-to-earnings ratio of 43.18, well above the industry average of 15.67. While this premium demands consistent execution, the company’s strong innovation pipeline, disciplined margin management and continued market share gains in energy drinks could help support its elevated multiples.

Bottom Line for Celsius Holdings’ Investors

Celsius Holdings has been on a splendid run in 2025, outpacing both peers and the broader market due to a mix of innovation, brand strength and expansion moves. The successful integration of Alani Nu, rising household penetration and an expanding international footprint highlight its ability to capture new consumers while deepening loyalty among existing ones. While short-term cost pressures and execution risks remain, analysts’ upward revisions for earnings and the company’s premium valuation suggest confidence in its long-term potential. CELH’s momentum and leadership put it in a strong position, making the stock an appealing choice for investors. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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