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Celsius Holdings Inc. (CELH) Laps the Stock Market: Here's Why

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In the latest close session, Celsius Holdings Inc. (CELH - Free Report) was up +1.25% at $48.69. This move outpaced the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.99%, and the Nasdaq, a tech-heavy index, added 0.65%.

The company's stock has climbed by 8.56% in the past month, exceeding the Consumer Staples sector's loss of 1.6% and the S&P 500's gain of 0.59%.

The upcoming earnings release of Celsius Holdings Inc. will be of great interest to investors. The company is expected to report EPS of $0.19, up 35.71% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $642.32 million, indicating a 93.35% growth compared to the corresponding quarter of the prior year.

CELH's full-year Zacks Consensus Estimates are calling for earnings of $1.25 per share and revenue of $2.44 billion. These results would represent year-over-year changes of +78.57% and 0%, respectively.

Any recent changes to analyst estimates for Celsius Holdings Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 2.23% lower. Celsius Holdings Inc. is currently a Zacks Rank #3 (Hold).

With respect to valuation, Celsius Holdings Inc. is currently being traded at a Forward P/E ratio of 32.41. This denotes a premium relative to the industry average Forward P/E of 12.88.

It's also important to note that CELH currently trades at a PEG ratio of 0.79. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Food - Miscellaneous was holding an average PEG ratio of 1.37 at yesterday's closing price.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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