CELH Should I Buy
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Celsius Holdings Inc (CELH) is not a strong buy at the moment for a beginner investor with a long-term horizon. While the stock has potential for recovery and growth in the energy drink market, the recent financial performance and competitive pressures from Costco's private label energy drink create uncertainty. The technical indicators and lack of strong proprietary trading signals do not support an immediate entry point.
The technical indicators show mixed signals. The MACD is positive and expanding, suggesting bullish momentum, but the RSI is neutral at 45.378, indicating no clear trend. Moving averages are bearish (SMA_200 > SMA_20 > SMA_5), and the stock is trading below the key pivot level of 35.172, with support at 33.525 and resistance at 36.818. This indicates a weak technical setup.
Analysts maintain a Buy rating despite recent price target reductions, citing strong brand loyalty and distribution tailwinds.
The energy drink market remains high-growth, and private labels historically struggle to capture significant market share.
Competitive pressure from Costco's Kirkland Signature energy drink, which mimics Celsius' product at a significant discount.
Recent financial performance shows declining net income (-138.81% YoY) and EPS (-130.00% YoY), raising concerns about profitability.
Bearish technical indicators and lack of proprietary trading signals.
In Q4 2025, Celsius reported a significant revenue increase of 117.23% YoY to $721.63M, indicating strong top-line growth. However, net income dropped by -138.81% YoY to $9.14M, and EPS fell by -130.00% YoY to $0.03. Gross margin also declined to 47.37%, down 5.58% YoY, reflecting margin pressures.
Analysts maintain a Buy rating but have lowered price targets recently due to margin risks and competitive pressures. The current price targets range from $44 to $76, with a median target of $60. Analysts view the recent selloff as overdone but acknowledge near-term risks.
