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Strength Seen in Celsius Holdings Inc. (CELH): Can Its 4.8% Jump Turn into More Strength?

·2 min read

Celsius Holdings Inc. (CELH) shares rallied 4.8% in the last trading session to close at $103.61. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 49.9% gain over the past four weeks.

Continued optimism surrounding Celsius Holdings’ strategic distribution deal with PepsiCo, appears to be driving the stock. The distribution deal initially shifts the current U.S. distribution of Celsius to PepsiCo's solid capacities. Apart from this, PepsiCo will make an investment in Celsius to fuel its growth agenda, as part of the agreement. The prospects of the deal look encouraging, given the combination of Celsius’ robust brand momentum and PepsiCo’s strong portfolio and go-to-market capacities.

This company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of +60%. Revenues are expected to be $143.78 million, up 121% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Celsius Holdings Inc., the consensus EPS estimate for the quarter has been revised 6.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CELH going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Celsius Holdings Inc. is part of the Zacks Food - Miscellaneous industry. Mamamancini'S Holdings, Inc. (MMMB), another stock in the same industry, closed the last trading session 2.1% lower at $1.40. MMMB has returned 2.1% in the past month.

For Mamamancini'S Holdings, Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.02. This represents a change of +100% from what the company reported a year ago. Mamamancini'S Holdings, Inc. currently has a Zacks Rank of #2 (Buy).

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