AAPL

TSLA

AMZN

META

AMD

NVDA

PEP

COST

ADBE

GOOG

AMGN

HON

INTC

INTU

NFLX

ADP

SBUX

MRNA

Markets

CELH

3 Reasons Celsius Stock Can Bounce Back in April

March 29, 2026 — 01:27 pm EDT

Written by

Rick Munarriz for

The Motley Fool->

Key Points

- Celsius has shed more than 20% of its value over the last six trading days.

- Costco entering the energy drink market is noteworthy, but highly unlikely to have a major direct impact on Celsius.

- The stock has been landing well ahead of profit targets lately, and it's currently trading for 16 times next year's projected earnings.

- 10 stocks we like better than Celsius ›

Like many stocks these days, Celsius Holdings (NASDAQ: CELH) has gone worse than flat. Shares of the company gaining market share in the functional sparkling beverage market have fallen for six consecutive trading days, a 21% plunge in that time.

A couple of factors have weighed on Celsius stock. Costco (NASDAQ: COST) introduced a line of energy drinks under its Kirkland Signature label last week, and rising gas prices could make consumers less likely to spring for unnecessary indulgences. The market itself has been weak, declining for the fourth straight week.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

Still, the pullback still feels overdone. Celsius stock hit a new 10-month low on Friday, but zoom out, and the shares have fallen 66% from their all-time high set two years ago. Let's go over some of the reasons Celsius shares can bounce back next month.

Image source: Getty Images.

1. Costco? Really?

As a shareholder, fan, and card-carrying member of Costco, I know all about the allure of the warehouse retailer. Kirkland Signature brand is a juggernaut that generates roughly $90 billion a year across its growing product line.

I also realize Celsius is in the crosshairs of Costco's launch for a new line of energy drinks. Its initial flavors -- orange, peach, and tropical -- aren't gunning for Red Bull or Monster. They're in the flavor profile for Celsius' namesake brand and its Alani Nu platform. The cans have the same form factor and even contain the same amount of caffeine.

They differ in that Costco's entry lacks Celsius's thermogenesis weight-loss hook. They will also differ in distribution. Kirkland Signature cans will cost about half as much, but they're sold through Costco. Folks won't get them at the gym, supermarket, convenience store, or restaurant where Celsius is sold. The move will eat into the Celsius that sells at the warehouse club, but it might also expand the market for the functional energy drink category.

But do you think PepsiCo (NASDAQ: PEP) -- Celsius' stateside distributor and minority shareholder -- cares about the impact of warehouse clubs for its namesake soft drinks? It's not losing any sleep about Sam's Cola. It's also not going to bat an eye at Kirkland Signature Cola sales, because they no longer exist. Costco left the soft drink market a decade ago. The folks at LaCroix may not even know that there's a Kirkland Signature line of flavored sparkling water.

Costco's entry into the market isn't a positive development. It's just not as problematic as the market believes, especially given the warehouse club operator's misses when it took on beverage stocks in the past. I'm not alone in this view. Analysts at Roth Capital, Citi, and TD Cowen all issued notes late last week, arguing that the shares are oversold on the Costco news.

2. Celsius is cheaper than you may think

After three consecutive years of triple-digit sales growth, Celsius hit some serious growing pains in 2024. It didn't take long to get back on track after acquiring the smaller but fast-growing Alani Nu in a deal valued at an accretive $1.65 billion. Celsius has returned to strong growth after the deal closed in March of last year. Most of the heady gains are not organic, but the flagship brand has also started to grow again.

Revenue has soared 85%, 173%, and 117%, respectively, since the deal closed. Analysts are modeling a top-line jump of 132% in the current quarter, which ends this week and will be announced in early May. Growth will moderate after that, with the lapping of the transformative Alani Nu deal. Wall Street pros still see a respectable 24% jump in organic revenue for the second quarter.

With two brands now topping $1 billion in annual sales -- and PepsiCo handing Celsius its Rockstar energy drinks brand in the U.S. and Canada en route to boosting its ownership stake -- Celsius is now a rock star itself. Despite the strong and nearly perfect growth trajectory over th