This Monster Growth Stock Is Up 5,730% in the Last 5 Year

Celsius Holdings (NASDAQ: CELH) long-term investors are thriving. The energy drink startup's stock has risen 5,730% in five years, giving $10,000 investors $583,000 in wealth. Celsius is one of the top growth stocks of the 21st century due to growing sales, margin, and investor excitement. Investors' key question today: What will the company do in five years?  

Celsius, a third energy drink behemoth, gained popularity by competing with Monster Beverage and Red Bull. Both products are considered unhealthy drinks that promote extreme sports like skateboarding, motor racing, and surfing. Though profitable, this does not reach a big portion of the energy drink market.  

Celsius marketed its drinks as healthy, calorie-light, and for active people. Celsius benefited from this branding drive, which expanded the energy drink market. Over the past five years, Celsius sales have increased 2,300%, mostly in North America. After a few years of under $100 million, it earned $1.3 billion in 2023.  

With Monster and Red Bull leading the North American energy drink industry, it ranks third. Profits increase. Celsius's unit economics are impressive, with $266 million in operating profits in 2023.  

International expansion can boost growth. Celsius made a wise choice by allowing PepsiCo invest in its operations. Celsius joined the North American Pepsi distribution network in exchange. This is underestimated for every successful consumer goods brand. They obtain better grocery store and gas station shelf space and better merchant negotiations. The Pepsi distribution likely boosted Celsius's growth in recent quarters, though it's impossible to measure.  

Celsius hopes to replicate similar success abroad. Irish, British, Australian, and New Zealand English-speaking markets will receive it. All these markets debuted in 2024. I think Celsius may sell well worldwide with 100 million individuals in these nations, many of which have similar exercise and fitness hobbies as Celsius consumers in the US. Over time, investors should hope this becomes a global brand like Red Bull and Monster.  

I expect Celsius revenue growth will accelerate over the next five years. Celsius has plenty of room to grow in North America and overseas, but investors shouldn't expect 2,300% growth. Sales of energy drinks are likely to hit $100 billion soon. Celsius is still a worldwide minnow with $1.3 billion in revenue.  

If the company grows revenue 300% over the following five years, it will sell $5 billion by 2028. A 25% profit margin yields $1.25 billion annually. Celsius's market valuation is $19.3 billion. Comparing this forward profits number, Celsius still prices in much of this increase.  

If Celsius can reach $5 billion in yearly sales and maintain great profit margins, I think its stock will rise in five years. This company is one of the fastest-growing in the world, and I expect that to continue.  

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