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Bull Of The Day: Celsius Holdings (CELH)

Brian Bolan

Celsius Holding (CELH) is a Zacks Rank #1 (Strong Buy) and recently beat the Zacks Consensus Estimate when the company reported earnings.  Since then, estimates have moved higher and the stock looks poised for a big run.  Let's dive a little deeper in this Bull of the Day article.

Descriptipon

Celsius Holdings, Inc. specializes in commercializing healthier, nutritional functional foods, beverages and dietary supplements. Celsius Holdings, Inc. markets Celsius®, the calorie burner, through its wholly-owned operating subsidiary, Celsius, Inc. The Company sells its products through grocery, drug, convenience, club and mass, and health and fitness channels. The Company's products are produced in Mooresville, North Carolina, and Monroe, Wisconsin. Celsius, Inc. is dedicated to providing healthier, everyday refreshment through science and innovation. The Company serves customers in the United States and internationally. Celsius Holdings, Inc. is based in Delray Beach, Florida.

Recent Earnings 

On November 7, CELH topped the Zacks Consensus of a breakeven quarter in reporting EPS of $0.03.  Revenues of $20.4M were 23% ahead of last years levels and that topped the estimate by $1.45M.

This was a really impressive quarter and it almost didn't get noticed.  Almost -- but the Zacks Rank caught it as it moved up to a Zacks Rank #1 (Strong Buy).

Earnings Estimates

Following the recent beat, estimates have been moving higher.  I see the estimates for this quarter moving from breakeven to a gain of a penny.

The 2019 Zacks Consensus Estimate has moved from $0.17 to $0.19 over the last 60 days and that has helped the stock raise up to a Zacks Rank #1 (Strong Buy).

Valuation

The valuation looks really good, 22x forward earnings multiple is not that expensive when you consider the 23% topline growth.  A price to book multiple of 3.8x is a little high as value investor tend to focus on a P/B of less than 3x.  The price to sales multiple of 4.4x tells us that market will reward this stock for revenue growth.

Chart

Celsius Holdings Inc. Price and Consensus

Celsius Holdings Inc. Price and Consensus
Celsius Holdings Inc. Price and Consensus

Celsius Holdings Inc. price-consensus-chart | Celsius Holdings Inc. Quote

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