I'm (Finally) Buying Celsius

With a head-scratching 30% decline (yes, 30%!) in the past couple of weeks, Celsius (CELH) has gone from slightly overvalued to now firmly in "Buy" territory, trading almost 29% under our fair value of $86. The only reason I can find has to do with an analyst predicting "slower than expected" growth. Hmm... that seems like a decent reason for a percent or two decline, but 30%?? I'm not buying it.

Honestly, though, it's nothing new. Celsius has been an EXTREMELY volatile stock over the past several years, several times having declines like the current one. Every single time has been a dynamite time to buy, with the stock doubling or tripling shortly after. Now, to be clear - I DON'T forsee a double or triple from the $62 stock price, at least not in the short term.

But I do think it represents solid value for what is still an excellent growth stock with a lot of runway ahead. The energy drinks market is worth $90 billion and growing. Celsius is rapidly growing its share of it. The thesis is no more complex than that. It is the same thesis that made competitor Monster Energy one of the greatest stocks of the 2000's.

Celsius gets added to the Buy List immediately. Buy it while you can!