Celsius Holdings<\/span><\/strong> (NASDAQ: CELH)<\/span> was once the hottest stock, winning over investors’ portfolios. This energy drink purveyor saw its share price skyrocket 7,330% during the five-year period leading up to its peak in March 2024. This was driven by incredible revenue growth.<\/span><\/p>\n This <\/span>beverage stock<\/span> is losing its buzz, as it now trades 65% below its record (as of April 22). Is this a dip worth taking advantage of or an opportunity to pass up? Where will Celsius be in five years?<\/span><\/p>\n Will AI create the world’s first trillionaire?<\/strong>\u00a0Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need.\u00a0Continue \u00bb<\/strong><\/span><\/em><\/p>\n To be clear, Celsius is still growing, even though it’s not close to the same rate as in previous years. Revenue for the Celsius brand climbed 7.5% year over year in the fourth quarter of 2025.<\/span><\/p>\n The acquisition of Alani Nu brings a high-powered, female-targeted energy drink brand to the mix. Its retail sales soared 76.9% during the 13-week period ended Dec. 28, 2025.<\/span><\/p>\n This company is well-positioned. Energy drinks have put up better growth figures than the overall industry in the U.S. And consumers’ heightened preferences for sugar-free and health-focused options plays to Celsius’ benefit.<\/span><\/p>\n According to data from Circana, across its entire portfolio, Celsius captures 19.8% market share in the industry. It’s significantly behind Red Bull (35.9% market share) and <\/span>Monster Beverage<\/span><\/strong> (27.3%).<\/span><\/p>\n Due to its smaller position in the energy drink market, a valid argument can be made that Celsius simply doesn’t possess the same brand recognition as the leaders. And I suspect the company won’t ever get to the level of Monster or Red Bull.<\/span><\/p>\n The barriers to entry also seem low, which doesn’t discourage newcomers from pursuing the growth potential of the energy drink category. <\/span>Costco Wholesale<\/span><\/strong>, for example, launched cheaper energy drinks under the Kirkland private label in late March, which hit Celsius shares.<\/span><\/p>\n Celsius isn’t a fad product. It has established an enviable position in a desirable end market. But there’s certainly an upper bound to the company’s ultimate potential, which is restricted by the <\/span>hyper-competitive nature<\/span> of the industry.<\/span><\/p>\n What’s more, the valuation isn’t an obvious bargain. Shares are trading at 22.5 times analysts’ consensus forecast for 2026 diluted earnings per share (EPS).<\/span><\/p>\n<\/p><\/div>\n The investment thesis rests on Celsius’ ability to grow its profits at a strong clip. Between 2026 and 2028, the company’s diluted EPS is projected to increase by 55%, according to analysts. If this trend holds up throughout the rest of this decade, and the valuation remains constant, <\/span>the stock can be a huge winner<\/span>.<\/span><\/p>\n I believe a more probable outcome, however, is that the valuation will contract as the market digests slower growth in the future. These two headwinds make Celsius a high-risk, but potentially high-reward, opportunity over the next five years.<\/span><\/p>\n Before you buy stock in Celsius Holdings, consider this:<\/p>\n The Motley Fool Stock Advisor<\/em> analyst team just identified what they believe are the\u00a010 best stocks<\/strong> for investors to buy now\u2026 and Celsius Holdings wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix<\/strong> made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $498,522<\/strong>!* Or when Nvidia<\/strong> made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,276,807<\/strong>!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s<\/em> total average return is 983% \u2014 a market-crushing outperformance compared to 200% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor<\/em>, and join an investing community built by individual investors for individual investors.<\/span><\/strong><\/span><\/p>\n See the 10 stocks \u00bb<\/strong><\/p>\n *Stock Advisor returns as of April 26, 2026. <\/em><\/p>\n<\/div>\n<\/div>
Celsius is positioned well in the marketplace<\/span> <\/h2>\n
Competition is the biggest risk factor<\/span> <\/h2>\n
Earnings growth will drive the share price<\/span> <\/h2>\n
Should you buy stock in Celsius Holdings right now? <\/h2>\n