We recently compiled a list of the 7 Best Under The Radar Stocks to Buy According to Analysts. In this article, we are going to take a look at where Celsius Holdings (NASDAQ:CELH) stands against the other under the radar stocks.
The Need to Address the National Debt, Deficit, and Tariffs
Billionaire investor and entrepreneur Mark Cuban recently shared his thoughts on the current state of the economy, politics, and the upcoming presidential election. In his interview on CNBC on September 26, Cuban expressed his concerns about the national debt and deficit, stating that neither candidate addressed these critical issues. He believes the country needs to come together and find a solution to reduce the deficit rather than engaging in a “competition” to see who can give away more. Cuban suggested that taxing stock buybacks could be a way to generate revenue, reduce the deficit, and change corporate behavior. He believes that the country needs a leader who can bring people together and find solutions to the problems facing the nation. Cuban also expressed his concerns about the impact of tariffs on the economy, citing the example of Intel and TSMC, which are already producing high-tech chips. He believes that the government needs to find ways to support American companies and create jobs rather than relying on tariffs.
Cuban noted that there has not been a boom in the manufacturing industry; the government’s policies, such as the I.R.A. (Inflation Reduction Act), have contributed to the manufacturing industry. However, 75% of manufacturing companies have fewer than 20 employees, and the government needs to find ways to support these small businesses. Cuban also mentioned that some people believe that the government should not have a steel policy, while others argue that it is necessary. Cuban believes that the world has changed and the United States needs to invest in AI to maintain its military dominance and competitiveness. He emphasized that whoever wins in AI will have the best military and that the country cannot afford to lose this battle.
Cuban believes that the government should not impose price controls, as it can have unintended consequences, the free market can take care of itself, and that the government should not intervene unless necessary.
Mark Cuban’s insights highlight the need to address critical issues such as the national debt, deficit, and the impact of tariffs on the economy.
Our Methodology
To compile our list of the 7 best under the radar stocks to buy according to analysts, we sifted through internet rankings to find 30 under the radar stocks. From that list, we narrowed our choices to the 7 stocks that analysts see the most upside to. The list is sorted in ascending order of analysts’ average upside potential, as of October 2. We also added the number of hedge fund holding stocks in these companies, which was taken from our database of 912 elite hedge funds as of Q2 of 2024. The list is sorted in ascending order of their average upside potential as of October 2.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A hand pouring a cool can of a carbonated non-alcoholic beverage with a smiley face on it.
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.
Overall CELH ranks 3rd on our list of the under the radar stocks to buy. While we acknowledge the potential of CELH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CELH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.