Investors Examine Glaring Drops in Key Growth Stocks

A recent report highlights significant stock price drops for Kura Sushi, Xometry, and Celsius Holdings. Although challenges are present, long-term prospects remain promising for these companies, presenting potential buying opportunities.

Date: 20-09-2024

AI Rating: 6

The report identifies notable declines in the stock prices of Kura Sushi, Xometry, and Celsius Holdings, which are down between 35% and 65% from their recent highs. Each company faces unique challenges, but underlying growth potential may support long-term investment considerations.

Kura Sushi (NASDAQ: KRUS)

Kura Sushi's stock has dropped 35%, partly due to a net loss of $3.6 million for the first three quarters of FY 2024, compared to a loss of $1.4 million in FY 2023. Despite these losses, Kura Sushi achieved an operating margin of 20% in Q3, suggesting that its efficient operations and technology embrace could drive profitability in the future. The management's aim to scale up to 290 locations, more than four times its current count, exemplifies potential for growth.

Xometry (NASDAQ: XMTR)

Xometry's stock is down 51% amid slowing growth. The company has guided for revenue growth of only 14% to 16%, down from 22% in 2023 and 18% in H1 2024. However, there is a positive trend in increasing active buyers and improvements in gross margin, which climbed to 33.5% from 31.7% in the prior-year period. This suggests a possible turnaround amid market uncertainties.

Celsius Holdings (NASDAQ: CELH)

Celsius has faced a severe stock price drop of 65%, largely driven by overestimated demand and slowing revenue as the company reduces its inventory. Despite this, revenue growth was still 29% in H1 2024 compared to H1 2023. The company’s significant profitability, indicated by an operating income of $94 million in Q2 2024 compared to $65 million last year, and a healthy balance sheet, reinforces its long-term growth potential.

Overall, while the report flags important financial indicators, the outlined challenges may create worthwhile investment opportunities for those focused on long-term growth.

Stocks: KRUS XMTR CELH