Celsius Holdings, Inc. (CELH): A Bull Case Theory

We came across a bullish thesis on Celsius Holdings, Inc. (CELH) on wallstreetbets Subreddit Page by One-Hovercraft-1935. In this article, we will summarize the bulls’ thesis on CELH. Celsius Holdings, Inc. (CELH)'s share was trading at $38.94 as of May 14^th. CELH’s trailing and forward P/E were 118 and 45.66 respectively according to Yahoo Finance.

Celsius Holdings (CELH) is emerging as a major player in the global energy drink market by aligning with health-conscious consumer preferences. Known for its clean-label, metabolism-boosting drinks, Celsius has cultivated strong brand equity among active lifestyle consumers, positioning itself as a viable alternative to traditional energy drink giants like Red Bull and Monster.

A sharp stock correction from $95.15 in May 2024 to $22.34 by February 2025 was triggered by inventory issues at its key distributor, PepsiCo, which had overstocked Celsius products, leading to temporary growth disruptions. However, end-user demand remained strong, with retail-level sales growing 22% year-over-year, demonstrating business resilience. While PepsiCo’s 8.5% stake and distribution muscle are strategic advantages—fueling Celsius’s reach into top U.S. retailers—this dependency also magnifies any operational hiccups, such as the 2024 pullback.

Financially, Celsius has posted impressive results, maintaining profitability with minimal debt and a forward P/E of 42.81, reflecting ongoing growth expectations. The company is now enhancing its supply chain and product innovation through strategic acquisitions, including Big Beverages and the $1.8 billion Alani Nu deal, which adds a female-focused, high-retention brand with strong digital traction. Despite a 7% revenue decline in Q1 2025 due to lingering distribution adjustments, international revenue rose 41%, and Alani Nu's sales surged 88%, signaling strong global momentum. As Celsius continues expanding into markets like Canada, the UK, and Australia, the stock’s rebound to $37.83 suggests renewed investor confidence. With brand strength, international growth, and operational tailwinds, Celsius presents a compelling long-term opportunity amid temporary dislocation.

Celsius Holdings, Inc. (CELH) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held CELH at the end of the fourth quarter which was 29 in the previous quarter. While we acknowledge the risk and potential of CELH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CELH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.