Reasons For Buying Celsius Stock

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Reasons For Buying Celsius Stock

3 Reasons For Buying Celsius Stock

Celsius is a famous beverage company known for its brand of energy drinks. Analysts think there are several good reasons for buying Celsius stock.

The key reasons include the low valuation, Alani Nu brand, and the dominant position of Celsius in the US market.

Celsius Has A Low P/E Ratio

The first reason is that the valuation of Celsius has become very attractive. It won't be wrong to say that Celsius stock is available at a bargain.

The Celsius stock is trading at a forward P/E of 14, and its PEG ratio is under 1.0. This clearly highlights that Celsius is now a cheaper stock than Monster Beverages (MNST) and other big names in the sector.

Alani Nu Brings Revenue

The second reason for buying Celsius stock is Alani Nu. They bought Alani Nu more than a decade ago. At that time, people were wondering if Celsius had made a mistake by buying it.

But the data showed that buying Alani Nu was the right move. The brand's revenue in Q1 was $368 million with a 60% y/y increase. It now already accounts for a big portion of Celsius's sales. In fact, the sales are even higher than the core Celsius brand.

Celsius Controls 21% OF US Energy Drinks Market

The third reason for buying Celsius is that it now holds 21% of the US energy drinks market. If we look back 3 years ago, Celsius was just an underdog trying to earn shelf space. But today, it controls a big portion of the US energy drink market.

To put that into perspective, 1 in 5 energy drinks sold in the USA come from Celsius. For example, Celsius focuses on the gym crowd. It keeps its focus on the nutrion and wellness.

Alani Nu targets the younger consumers who care more about the flavor. The company has smartly used social media to establish its presence in this space.

And the famous Rockstar brand has been around for so long now. This brand helps the Celsius to position itself for a different type of crowd and go into motorsports sponsorship.

It's safe to say that Celsius has a very diversified portfolio of beverages. And when we consider all these three reasons, it becomes a no-brainer to buy Celsius stock.

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