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Celsius Holdings Benefits From Wellness Shift in Energy Category

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Key Takeaways

  • Celsius Holdings is gaining from a wellness-driven shift as energy drinks move beyond extreme stimulation.
  • CELH's zero sugar, no preservatives and functional ingredients are resonating with health-aware consumers.
  • CELH is expanding usage into pre-workout and daily moments, boosting engagement and repeat buys.

Celsius Holdings, Inc. (CELH - Free Report) continues to stand out within the energy drink category by aligning closely with the broader consumer shift toward wellness-driven consumption. As energy drinks evolve beyond their traditional connection with extreme stimulation, CELH is benefiting from demand that is increasingly shaped by health awareness, functional benefits and everyday usability.

During the third quarter of 2025, management highlighted that consumers are actively seeking energy products that fit into healthier lifestyles. Celsius Holdings’ positioning around zero sugar, no artificial preservatives and functional ingredients remains central to its appeal. This formulation has allowed the brand to resonate with a widening audience.

This wellness-forward identity is helping Celsius Holdings unlock new consumption occasions. The brand is gaining traction not only as a traditional energy option but also in fitness-adjacent moments such as pre-workout routines and active daily use. This shift is expanding the category’s reach and reinforcing the company’s brand relevance beyond core energy drink users.

CELH also pointed to consistent consumer engagement during the third quarter, supported by favorable velocity trends and repeat purchasing behavior. Celsius Holdings’ success is rooted in structural changes within the energy category. As wellness considerations increasingly influence purchasing decisions, the company appears well-positioned to benefit from a category that is gradually redefining what consumers expect from energy beverages.

CELH’s Price Performance, Valuation & Estimates

Celsius Holdings, which competes with Coca-Cola (KO - Free Report) and Monster Beverage (MNST - Free Report) , has seen its shares surge 60% in the past year against the industry’s decline of 15.1%. Shares of Coca-Cola and Monster Beverage have rallied 12.3% and 47%, respectively, in the aforementioned period.

Zacks Investment Research
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CELH’s forward 12-month price-to-earnings ratio of 28.61 reflects a higher valuation than the industry’s average of 14.48. Celsius Holdings has a Value Score of C. Celsius Holdings is also trading at a premium to Coca-Cola (with a forward 12-month P/E ratio of 21.8) while trading at a discount to Monster Beverage’s ratio of 34.07.

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CELH’s 2025 and 2026 earnings implies a year-over-year growth of 80% and 19.2%, respectively. 

Celsius Holdings currently 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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