The market may be rallying, but not every stock is going along for the ride. There are plenty of quality stocks that are still trading a lot lower than they were a year ago.
For any investor aspiring to be brilliant, thinking long-term instead of short-term is a great first move. Studies have shown that a stock's valuation is one of the biggest factors for price movements over the short term.
After massive declines in the second half of last year, Celsius Holdings (CELH 1.25%) stock may finally be ready for a comeback. The company's rapid growth came to a sudden halt (at least temporarily) as sluggish demand led one of its major distributors (likely PepsiCo) to dramatically scale back its orders.
Monster (MNST 0.63%) and Celsius (CELH 1.25%) are both fast-growing companies, but only one can be the better investment in this head-to-head comparison.
It might seem tough for a stock to deliver a five-bagger gain in just five years. But over the past five years, many prominent growth stocks -- including Nvidia, Tesla, and Strategy (formerly known as MicroStrategy) -- posted even bigger gains.
As of May 23, the S&P 500 is down just over 1% this year. That's not a great result thus far, but the broad benchmark has surged since early April thanks to a more positive tone from the investment community.
I rate Celsius a sell/avoid due to weak profitability, scoring only 40/100 in my quantitative system. The Company's high SGA expenses, especially marketing, and low net profit margin (8.4%) highlight its lack of a clear market advantage. Despite impressive historical EPS growth, recent earnings volatility and declining growth rates make CELH's future performance unpredictable and risky.
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