One soaring stock to hold for lifetime

While the broader stock market has seen a pullback in 2025—with the S&P 500 down 7% from its February peak—Celsius Holdings (NASDAQ: CELH) has emerged as a standout performer. As of March 20, Celsius stock is up 17.8% year-to-date and has rebounded 46.8% from its mid-2024 price dip.

Rough year 2024

Despite a challenging year in 2024, largely due to reduced orders from U.S. distribution partner PepsiCo, Celsius remains well-positioned for long-term growth. The company’s domestic market share slipped slightly, from 8.1% at the end of 2023 to 7.3% in Q4 2024.

However, international sales tell a more encouraging story, growing 39% year-over-year and accounting for 6.1% of total revenue—up from just 4.2% a year earlier.

Celsius is gradually expanding its international footprint. Recent market entries include the Benelux region, in addition to earlier launches in France, the U.K., Ireland, Australia, and New Zealand. While Canada has been part of the company’s strategy for some time, broader global expansion remains in its early stage

Unlike competitors Red Bull and Monster—who rely on centralized global strategies—Celsius takes a flexible, partnership-based approach. Its U.S. and Canadian operations are handled by PepsiCo, while other regions are supported by Suntory Beverage and Food. This modular strategy could open doors to further local partnerships where appropriate, giving Celsius the freedom to tailor its distribution model by market.

The Alani Nu acquisition

Additionally, Celsius is in the process of acquiring Alani Nu for $1.65 billion. This acquisition not only expands its product portfolio but also strengthens its presence among female energy drink consumers, a rapidly growing demographic.

Although short-term volatility may persist, Celsius' long-term potential is clear. The company is building a strong brand both domestically and internationally, with strategic partnerships and targeted marketing efforts laying the foundation for sustainable growth. With international revenue poised to rise—especially when compared to Monster’s 41% contribution from overseas markets—Celsius is shaping up to be a significant global player in the energy drink sector.

PE Rises

Currently, Celsius Holdings' trailing twelve-month (TTM) price-to-earnings (P/E) ratio stands at 79.73, with a forward P/E ratio of 37.10. I believe Celsius deserves a higher P/E ratio than it currently has, given its strong growth potential, However these elevated ratios suggest that the stock is no longer as attractively valued as it was during our previous assessment. Investors should consider these valuation changes when evaluating potential entry points.​ I am moving strong buy to a buy/hold.

Charting a Clear Path to the Top

Celsius has become the undisputed leader in the healthy energy drink space—a segment that's no longer just a niche, but a booming category reshaping the entire industry. While traditional players like Red Bull and Monster built their empires on high-sugar, high-caffeine formulas, Celsius tapped into a new generation of consumers seeking clean ingredients, functional benefits, and fitness-aligned energy. Its products are formulated without artificial preservatives, colors, or sweeteners, and they resonate with health-conscious millennials, Gen Z, and fitness communities in a way no other brand has managed. Unlike the top players, Celsius didn’t just slap a “healthier” label on an existing product—it built its brand around wellness from day one.

Looking ahead, the health-focused energy drink market is projected to grow at a significantly faster pace than the broader energy drink category. Consumers are shifting away from sugary sodas and synthetic boosters in favor of beverages that support performance, metabolism, and recovery. Celsius is already leading this charge—and with its expanding international footprint, smart partnerships (like Alani Nu), and untapped global potential, it’s not a stretch to see the brand overtaking Monster and even Red Bull in the years ahead. The future of energy isn’t extreme — it’s clean, functional, and wellness-driven. And Celsius is in the best position to own it.

The stock is up over 60% since we recommended Celsius in Zack's Alpha Report last month at a price of $21.28, Current price : 34.88

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All posts reflect Zack's personal opinions on stocks.

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