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In a challenging market environment, Celsius Holdings , Inc. (NASDAQ:CELH) stock has touched a 52-week low, reaching a price level of $35.72. This downturn reflects a significant retreat from previous valuations, marking a stark contrast to the company's performance over the past year. Celsius Holdings, a leading global health and wellness company, has seen its stock price decrease by 43.2% over the last year, underscoring the volatility that has impacted the broader market and the health sector in particular. Investors are closely monitoring the company's strategic moves and market conditions to gauge the potential for recovery or further declines.
In other recent news, Celsius Holdings reported a significant 23% increase in total revenue for Q2, setting a record at $402 million. International revenue also saw a substantial rise, up by 30% to $19.6 million. Despite facing industry challenges, the company maintained its category growth leadership and expanded its shelf presence. TD Cowen revised its price target for Celsius's shares, lowering it from $68.00 to $50.00, while maintaining a Buy rating. The firm's revised projection for Celsius's 2024 sales growth stands at 19%, reflecting concerns about broader weakness in the Energy category consumption and increased promotional activities by competitors.
Meanwhile, Zevia PBC announced the appointment of Alexandre Ruberti to its Board of Directors. Ruberti's two decades of experience in consumer packaged goods, including leadership roles at Red Bull and Waterdrop®, are expected to significantly contribute to Zevia's strategic growth.
On the other hand, Morgan Stanley maintained its Equalweight rating and $50.00 stock price target for Celsius Holdings, observing a modest 4% increase in the company's year-over-year sales growth. The firm does not anticipate a significant catalyst for Celsius until there is a positive shift in scanner data trends. These are among the recent developments for both Celsius Holdings and Zevia PBC.
InvestingPro Insights
In light of Celsius Holdings, Inc.'s (CELH) recent market performance, InvestingPro data provides a deeper understanding of the company's financial health and market position. As of the last twelve months leading up to Q2 2024, Celsius Holdings boasts a robust revenue growth of 56.5%, signaling strong sales performance despite market challenges. The company's gross profit margin stands at an impressive 50.45%, indicating efficient cost management relative to its revenue.
An InvestingPro Tip that stands out for Celsius Holdings is its significant cash position, as the company holds more cash than debt on its balance sheet. This could provide a cushion against market downturns and give the company strategic flexibility. Additionally, the company's liquid assets exceed its short-term obligations, which is a reassuring sign of financial stability.
While the stock has experienced a sharp decline over the last six months, with a 57.81% drop, analysts on InvestingPro predict the company will be profitable this year, which could be a glimmer of hope for investors. For those interested in further analysis, there are 17 additional InvestingPro Tips available, providing a comprehensive view of CELH's market prospects.
The current market capitalization of Celsius Holdings stands at $8.69 billion, and the stock is trading at a P/E ratio of 35.45, which may be considered high relative to near-term earnings growth. However, with a PEG ratio of 0.14, the company's price-to-earnings growth appears favorable, suggesting that it may be undervalued based on future earnings expectations. Investors can explore further insights and metrics on https://www.investing.com/pro/CELH to make informed decisions about their investment in Celsius Holdings.
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