Celsius Holdings (CELH) Stock Surges 22% In A Month: What's Driving the Rally?

Shares of Celsius Holdings Inc CELH are soaring on Tuesday, up 5.9% at $45.37, and capping a remarkable 22% gain over the past month. The rally comes amid recent, bullish commentary from J.P. Morgan, which highlighted a significant acceleration in the U.S. energy drink market.

What To Know: Analyst Andrea Teixeira reported that U.S. energy drink sales jumped 18% in May, a sharp increase from 14% in April and the category’s strongest growth rate since November 2023.

The data revealed positive trends for the Celsius brand, which showed sequential improvement in both household penetration and buy rate, indicating stronger consumer purchasing frequency.

This positive market data reinforces J.P. Morgan’s confidence in the beverage company. The firm reiterated its “Overweight” rating on Celsius Holdings, viewing it as a favorable growth-at-a-reasonable-price investment within the growing energy drink sector.

Read Also: Coke, Monster Still Sizzle Amid Strong Demand And Tailwinds: Analyst

What Else: The analyst noted that even after a mixed first-quarter earnings report in May, underlying scanner data for Celsius has been improving. This suggests robust consumer demand and momentum, positioning the brand to continue capturing market share.

Additionally, the recent market strength and positive analyst outlook signal growing investor confidence in Celsius’s growth trajectory amid favorable consumer health and wellness trends.

Wall Street Signals Strong Confidence: Recent analyst activity in June has been broadly positive for Celsius Holdings. On June 16, TD Cowen upgraded the stock from a Hold to a Buy and significantly raised its price target to $55. Just days earlier, on June 12, Stifel reinstated its coverage with a “Buy” rating and a $47 price target.

These updates followed actions earlier in the month from firms like Truist Securities, Wells Fargo and Piper Sandler, which all maintained their existing Buy or Overweight ratings, signaling sustained confidence from Wall Street in the company’s outlook.

According to data from Benzinga Pro, CELH has a 52-week high of $61.25 and a 52-week low of $21.10.

Read Also: Celsius Stock Fizzles After Q1 Miss, Revenue Slide

How To Buy CELH Stock

By now you're likely curious about how to participate in the market for Celsius Holdings – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Celsius Holdings, which is trading at $45.33 as of publishing time, $100 would buy you 2.21 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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