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Why Celsius Holdings Inc. (CELH) Dipped More Than Broader Market Today

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In the latest trading session, Celsius Holdings Inc. (CELH - Free Report) closed at $60.70, marking a -5.54% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 2.71%. At the same time, the Dow lost 1.9%, and the tech-heavy Nasdaq lost 3.56%.

Shares of the company witnessed a gain of 10.95% over the previous month, beating the performance of the Consumer Staples sector with its loss of 3.82%, and the S&P 500's gain of 3.5%.

The investment community will be closely monitoring the performance of Celsius Holdings Inc. in its forthcoming earnings report. Meanwhile, the latest consensus estimate predicts the revenue to be $701.41 million, indicating a 163.94% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.13 per share and revenue of $2.42 billion, indicating changes of +61.43% and +78.51%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Celsius Holdings Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.51% higher. Celsius Holdings Inc. is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Celsius Holdings Inc. has a Forward P/E ratio of 56.98 right now. This denotes a premium relative to the industry average Forward P/E of 15.98.

Investors should also note that CELH has a PEG ratio of 1.29 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Food - Miscellaneous was holding an average PEG ratio of 1.72 at yesterday's closing price.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CELH in the coming trading sessions, be sure to utilize Zacks.com.


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