11 Reddit Stocks with Biggest Upside Potential

9. Celsius Holdings Inc. (NASDAQ:CELH)

Average Upside Potential as of November 11: 68.13%

Celsius Holdings Inc. (NASDAQ:CELH) produces a range of fitness and energy beverages under the brand name Celsius. Its products are marketed as healthy and are designed to boost metabolism and energy levels. It distributes its drinks through various channels, including stores, online, and fitness centers.

To support its growth, the company is investing in organizational excellence, scaling operations, advancing technology, and developing its workforce. The recent November acquisition of Big Beverage, a long-term co-packer, aims to enhance innovation capabilities, improve supply chain control, and generate long-term financial benefits. It also established a new center of excellence in Ireland to drive innovation, global procurement, supply chain, and marketing efforts. Additionally, Celsius Holdings Inc. (NASDAQ:CELH) is implementing AI-assisted selling tools and optimizing vehicle routes to improve efficiency.

Despite such strides, the company’s revenue declined 30.93% year-over-year in Q3 2024, recording an amount of $265.75 million, primarily due to strategic distributor inventory optimization. Yet, Celsius’ retail sales surged 7.1% year-over-year, fueled by a 7.3% increase in unit sales. Celsius was a key driver of category growth, contributing over 16% to the total. It remains committed to its long-term growth strategy, focusing on energizing customers in more places and more often.

Artisan Mid Cap Fund stated the following regarding Celsius Holdings, Inc. (NASDAQ:CELH) in its Q3 2024 investor letter:

“Among our top detractors were Dexcom, iRhythm and Celsius Holdings, Inc. (NASDAQ:CELH). Celsius is an energy drink company viewed as providing a healthier option than its large competitors. Our thesis was that Celsius’ product portfolio appeals to a broad demographic, creating new consumers and generating more frequent usage occasions for the category. Unfortunately, in recent months we have witnessed a sudden slowdown in both the company’s market share gains and growth in the broader energy drink category. We had expected its progress and overall market expansion to continue in 2024. With evidence to the contrary, we significantly trimmed our position.”