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Celsius Holdings Stock Is Tumbling Tuesday: What's Going On?
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Celsius Holdings Stock Is Tumbling Tuesday: What's Going On?
May 28, 2024 8:27 AM

Celsius Holdings Inc ( CELH ) shares are trading lower Tuesday. New reports suggest the latest Nielsen data could be negatively impacting the stock.

What To Know: According to media reports citing a note from Morgan Stanley analyst Dara Mohsenian, Celsius’ sales growth and market share are moving in the wrong direction in recent weeks.

The report indicates that Celsius’ sales growth slowed to 39% for the week ended May 18. It further suggests that Celsius’ market share declined from 10.8% to 10.5% in the most recent week of data, while Celsius’ pricing was down 7.2% on a year-over-year basis.

Morgan Stanley reportedly warned that tough sales comparisons over the coming quarters could lead to a change in sentiment in Celsius Holdings ( CELH ) stock. Despite the near-term uncertainty, the firm continues to see a strong longer-term runway for Celsius in the U.S. as it continues to increase products in stores, improve placement and push for growth in other areas.

See Also: Magnificent 7 Becomes ‘The Magnificent One’: Wall Street Guru Hails Single Tech Stock As Market Leader

Is CELH A Good Stock To Buy?

When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future. Celsius Holdings ( CELH ) has reported average annual revenue growth of 102.44% over the past five years.

It's also important to pay attention to valuation when deciding whether to buy a stock. Celsius Holdings ( CELH ) has a forward P/E ratio of 86.21. This means investors are paying $86.21 for each dollar of expected earnings in the future. The average forward P/E ratio of Celsius Holdings's ( CELH ) peers is 33.92.

Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index and valuation compared to peers. For in-depth analysis tools and important financial data, check out Benzinga PRO.

CELH Price Action: Celsius shares were down 15.3% at $80.55 at the time of publication, according to Benzinga Pro. Despite Tuesday’s losses, Celsius shares are still up approximately 93% over the last year.

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