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Celsius Holdings Inc. (CELH) Moves 13.8% Higher: Will This Strength Last?

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Celsius Holdings Inc. (CELH - Free Report) shares ended the last trading session 13.8% higher at $75.04. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.3% loss over the past four weeks.

Celsius Holdings has been benefiting from strength in its traditional channels, SKU expansion and new store additions. Also, growth in Direct Store Delivery network has been an upside. These factors boosted Domestic revenues in first-quarter 2022.  Notably, North America revenues soared 217% to $123.5 million.

This company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +40%. Revenues are expected to be $141.16 million, up 116.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Celsius Holdings Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CELH going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Celsius Holdings Inc. is a member of the Zacks Food - Miscellaneous industry. One other stock in the same industry, BRF (BRFS - Free Report) , finished the last trading session 10.3% higher at $2.90. BRFS has returned -15.7% over the past month.

For BRF, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.26. This represents a change of -420% from what the company reported a year ago. BRF currently has a Zacks Rank of #4 (Sell).


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