Celsius: Look For Dips
- Celsius reported another blowout quarter for Q3'22 with revenues of $188 million smashing estimates.
- The energy drink company is seeing initial strong results from the PepsiCo distribution deal.
- The stock appears expensive on most financial metrics, but Celsius trades at a similar forward P/S multiple of industry leader Monster.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
On most metrics, Celsius Holdings (NASDAQ:CELH) appears an expensive beverage stock to avoid in this market environment. The healthy energy drink company continues to report explosive growth and a new distribution partnership with PepsiCo (PEP), possibly warrants a higher valuation regardless of normal valuation metrics. My investment thesis is Neutral on the stock, though one should look at buying the hot stock on dips.
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