We recently compiled a list of the 10 Stocks That Will Make You Rich In 2025. In this article, we are going to take a look at where Celsius Holdings, Inc. (NASDAQ:CELH) stands against the other stocks that will make you rich in 2025.
What to Expect from the Stock Market in 2025
Jurrien Timmer, Director of Global Macro at Fidelity Management & Research Company, recently shared his outlook for the stock market in 2025. His analysis reflects cautious optimism, emphasizing potential growth and significant risks. Timmer described 2024 as a “Goldilocks” year for U.S. stock returns, characterized by robust earnings growth and rising valuations. The S&P 500 Index experienced a substantial increase, concluding the year with a gain of approximately 28% as it reached new all-time highs. This performance was driven by strong earnings from major companies, particularly the so-called “Magnificent Seven” stocks whose growth has significantly influenced the overall market dynamics.
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Looking ahead to 2025, Timmer maintained a bullish stance on stocks but cautioned that investors should not expect returns to match the spectacular gains of the previous two years. He noted that while earnings forecasts remain strong, especially for the mega-cap stocks, valuations are stretched, currently sitting in the 90th percentile historically. This suggests that significant further expansion in price-to-earnings (PE) ratios could lead to a bubble scenario, which he believes is unlikely. He expects continued earnings growth to support stock prices in 2025. However, valuations may limit future growth. Timmer suggests that earnings must drive performance rather than further valuation expansion to avoid a bubble scenario.
With the bull market entering its third year, Timmer describes it as being in “later innings,” indicating increased caution regarding future performance. He also suggested several risks that could potentially impact the market in 2025. For instance, heavy reliance on a few mega-cap stocks poses a risk; if these stocks falter, it could drag down overall market performance despite broader participation from other stocks. Secondly, although he does not foresee a return to the high inflation rates of the past decades, he warns that rising inflation could lead to higher interest rates, which would negatively affect the stock market.
Our Methodology
To compile the list of 10 stocks that will make you rich in 2025, we conducted a consensus. We sifted through various internet rankings to get an initial list of stocks expected to explode in 2025. Next, we sourced analyst sentiment for each stock from CNN and ranked our list in ascending order of the analysts’ projected upside potential for the next twelve months. Please note that the data was recorded on Friday, December 20, 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A hand pouring a cool can of a carbonated non-alcoholic beverage with a smiley face on it.
Celsius Holdings, Inc. (NASDAQ:CELH)
Analysts Upside Potential: 62.90%
Celsius Holdings, Inc. (NASDAQ:CELH) creates and sells energy drinks designed to support fitness and healthy lifestyles. Their main product, CELSIUS, is marketed as a drink that helps boost metabolism and burn fat, especially when combined with exercise. The company floated a new narrative of sugar-free energy drinks to target fitness influencers, athletes, and women. This narrative turned out to be one of the strategic edges for the company as according to Mordor Intelligence around 41% of overall energy drinks in the United States were sugar-free in 2022 and the company generated more than $1.31 billion in annualized revenue in 2023 marking a 101.65% increase from the previous year.
Celsius Holdings, Inc. (NASDAQ:CELH) had a tough fiscal third quarter for 2024 with revenue decreasing 31% year-over-year to $265.7 million due to distributor inventory optimization. However, management expects growth next year as it pursues growth strategies that extend beyond North America, focusing on international expansion and increasing the frequency of product consumption. The company in October launched its products in Australia and New Zealand, marking a significant step in its global expansion efforts. Earlier this year in April management had also announced plans to expand to France.
To ensure smooth expansion Celsius Holdings, Inc. (NASDAQ:CELH) has established distribution agreements with major companies like PepsiCo in Canada and Suntory Beverage & Food in the UK and Ireland. It has also acquired Big Beverage, a co-packer that will enhance its innovation capabilities and provide better control over its supply chain. Considering its expansion strategy Celsius Holdings, Inc. (NASDAQ:CELH) is one of the best stocks that will make you rich in 2025.
Carillon Eagle Mid Cap Growth Fund stated the following regarding Celsius Holdings, Inc. (NASDAQ:CELH) in its Q3 2024 investor letter:
“Celsius Holdings, Inc. (NASDAQ:CELH) develops, markets, sells and distributes functional fitness and lifestyle beverages. The stock suffered as revenue growth slowed more than expected. A leading soft-drink distributor further reduced its levels of Celsius inventory, which negatively impacted sales. Additionally, there has been a slowdown in traffic across the broader convenience store space.”
Overall CELH ranks 3rd on our list of the stocks that will make you rich in 2025. While we acknowledge the potential of CELH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CELH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.