Celsius and Dollar General: Bargains Ahead of Rebound

Celsius Holdings and Dollar General are highlighted as potential recovery stocks in a challenging market. Both companies are investing in improvements, which may lead to favorable stock performance. Investors should consider these opportunities carefully.

Date: 19-01-2025

AI Rating: 6

Analysis of Celsius Holdings
Revenue for Celsius Holdings was significantly affected by supply chain issues, falling 31% year over year in the third quarter. However, the company reported that retail and unit sales increased by 7%, indicating stable demand despite the challenges. With a focus on expanding marketing and new products, Celsius expects to return to revenue growth in 2025 and achieve double-digit increases by 2026. This positive outlook, alongside the anticipated growth of the energy drink market, gives investors hope for higher earnings and shareholder returns.

Analysis of Dollar General
Dollar General has seen its stock decline by 74% from its previous highs, yet it has managed a 5% net sales growth year over year in the third quarter, with a small 1.1% increase in same-store sales. This indicates that even amidst challenges, the company is holding steady. Management's guidance suggests full-year earnings per share could range between $5.50 to $5.90, along with an attractive forward dividend yield of 3.52%. The recent improvements in store conditions and customer satisfaction also suggest that Dollar General could see a turnaround sooner than expected.

Stocks: CELH DG