Celsius, Sweetgreen, and Shopify: Growth Stock Analysis

Growth stocks offer the potential for lasting wealth. Celsius Holdings, Sweetgreen, and Shopify have significant upside potential, with analysts predicting price targets from 44% to 72%. Investors may find these stocks interesting for long-term growth.

Date: 15-02-2025

AI Rating: 7

Earnings Per Share (EPS): The analysis mentions that Wall Street expects Sweetgreen to incur a loss of $0.41 per share in 2025, indicating that while the company is approaching profitability, it remains in the red for the time being.

Revenue Growth: Celsius has shown remarkable revenue growth, with annual revenue increasing from under $100 million to over $1.3 billion over five years, indicating strong long-term demand. For 2024, a revenue increase of 3% is expected, followed by 15% in 2025. Sweetgreen’s revenue increased by 13% year over year, driven by new store openings and improved same-store sales. Shopify reported a revenue increase of 31% to $2.81 billion, which surpasses analyst expectations.

Net Income: Shopify has transitioned into a profitable position, with GAAP operating income rising from $289 million to $465 million, indicating positive growth in its net income.

Profit Margins: Sweetgreen recorded a restaurant level profit margin of 20%, up from 19% the previous year, which shows improvement in its operational efficiency. Shopify's strong revenue growth seems to correlate with its improving profit margins as well.

Free Cash Flow (FCF): The report does not provide specific details about free cash flow for any of the companies mentioned.

Return on Equity (ROE): There is no explicit mention of return on equity in the report.

Overall, the report highlights that while Celsius, Sweetgreen, and Shopify have faced their challenges, they are all positioned for potential growth, with various indicators of revenue improvement and profitability on the horizon. Investors may find opportunities to capitalize on their recovery and future success.

Stocks: CELH SG SHOP