Why Celsius Holdings Inc. (CELH) Went Up Last Week?

We recently published a list of Last Week’s 10 Best-Performing Stocks. In this article, we are going to take a look at where Celsius Holdings Inc. (NASDAQ:CELH) stands against other last week’s best-performing stocks.

Ten firms outperformed Wall Street’s three major indices over the past week, clocking in double-digit gains on the back of a flurry of company developments that sparked buying appetite.

On a week-on-week basis, the Dow Jones rallied by 1.19 percent, the S&P 500 increased 0.5 percent, and the tech-heavy Nasdaq inched up 0.16 percent.

Meanwhile, 10 firms finished stronger with gains of 10 to 20 percent. In this article, let’s explore the names of last week’s best performers and the reasons behind their rallies.

To come up with the list, we only considered the stocks with at least a $2 billion market capitalization and $5 million in trading volume.

A hand pouring a cool can of a carbonated non-alcoholic beverage with a smiley face on it.

Celsius Holdings Inc. (NASDAQ:CELH)

Celsius soared by 21.6 percent week-on-week to end at $32.93 versus the $27.08 recorded a week prior, with investor sentiment primarily boosted by PepsiCo’s move to expand its healthy drinks category.

PepsiCo, which owns a significant stake in CELH, recently entered into an agreement to acquire prebiotic soda brand Poppi for $2 billion.

The news dribbled into CELH which produces a range of fitness and energy beverages under the brand Celsius.

“More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness. Poppi is a great complement to our portfolio transformation efforts to meet these needs,” said PepsiCo Chairman and CEO Ramon Laguarta.

The transaction is subject to customary closing conditions, including regulatory approval. Additional terms of the acquisition were not disclosed.

The news followed recent leadership developments, following the appointment of Eric Hanson, PepsiCo’s senior vice president for strategic partnerships, as CELH’s president and COO.

Overall, CELH ranks 1st on our list of last week’s best-performing stocks. While we acknowledge the potential of CELH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as CELH but 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.