7 Best Under The Radar Stocks to Buy According to Analysts

3. Celsius Holdings (NASDAQ:CELH)  

Upside Potential: 42.44%  

Number of Hedge Fund Investors: 27  

Celsius Holdings (NASDAQ:CELH) is a health and wellness company that produces energy drinks and fitness beverages to accelerate metabolism and burn calories. The company focuses on sugar-free energy drinks, particularly for women and health-conscious consumers, and its products are popular among fitness enthusiasts and health-conscious consumers.

Celsius Holdings (NASDAQ:CELH) has experienced phenomenal growth in the US market, expanding the energy drink category and gaining a 10-12% market share in the last decade. However, the company has been facing headwinds recently due to a slowdown in the energy drink market and fewer orders from PepsiCo, the company’s main distribution partner in the United States. Pepsi is destocking its inventory for Celsius Holdings’ (NASDAQ:CELH) products to help its cash flow. However, Celsius Holdings (NASDAQ:CELH) is expanding internationally and plans to make partnerships in Australia, New Zealand, the UK, and France, which could lead to significant revenue growth.

In the US, Celsius Holdings (NASDAQ:CELH) still has room to gain market share, with its current 12%. If the company can increase its market share to 15% or 20% within the next three years, it could drive significant revenue growth. Based on these growth prospects, it’s estimated that Celsius Holdings (NASDAQ:CELH) could grow its sales by 20% annually for the next three years, reaching $2.57 billion in revenue. Celsius Holdings’ (NASDAQ:CELH) margins and profitability have become strong and are trending higher. The company’s return on equity is also high, and it has achieved this without the use of debt.

With growth in distribution channels and partnerships, Celsius Holdings (NASDAQ:CELH) is poised to capitalize on the growing demand for energy beverages. Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $48.47, which represents a 42.44% upside potential from its current level. As of the second quarter, the company’s stock is held by 27 hedge funds, with a total stake valued at $192.69 million.