A Stock to Ride for the Next Two Decades

In 2025, many leading companies in the stock market are seeing declines. Consequently, the S&P 500 (^GSPC 0.08%) index has dropped 7% since reaching its peak in February, leading many investors to shy away from high-risk growth stocks.

However, not all of Wall Street is feeling the burn. A select few growth stocks are thriving this year, and it might be wise to consider purchasing shares before their value truly skyrockets.

Take Celsius Holdings (CELH 5.53%) as an example; it appears to be a solid long-term investment opportunity, though expect some challenges along the way. As of March 20, its stock has risen by 17.8% in 2025 and is up 46.8% since experiencing a downturn last summer.

Celsius is Disrupting the Energy Drink Sector

While I can’t guarantee Celsius Holdings’ stock performance will improve in 2025 or next year, the company’s innovative energy beverages appear to resonate with health-focused consumers. The dominant players, Monster Beverage (MNST 0.83%) and Red Bull, may soon be joined by a formidable new competitor.

Yet, Celsius still faces challenges. In the previous year, its distribution partner, PepsiCo, delayed orders for Celsius products for several months, causing its market share in the U.S. energy drink sector to drop from 8.1% at the close of 2023 to 7.3% in Q4 of 2024. Total revenue for the fourth quarter also saw a year-over-year reduction of 4%, despite a notable 39% increase in international sales.

The cornerstone of Celsius’ future value lies in its international sales, which currently account for just 6.1% of total revenue, up from 4.2% the prior year. Management is only just beginning to tap into this overseas potential, recently adding the Benelux region to its distribution strategy, following previous rollouts in France, Ireland, the U.K., Australia, and New Zealand, along with a long-standing focus on Canada.

Anticipating Global Expansion

Celsius’ approach to international expansion differs significantly from competitors Red Bull and Monster. Red Bull maintains its own comprehensive distribution network with local production facilities, while Monster collaborates globally with Coca-Cola for distribution expertise. Currently, Celsius’ partnership with PepsiCo extends only to the U.S. and Canada, as its other international endeavors are managed through Japanese beverage powerhouse Suntory Beverage and Food.

This strategy allows Celsius to develop a flexible network of partnerships and possibly establish additional local deals where PepsiCo and Suntory’s reach is limited. This flexibility offers potential advantages as Celsius navigates international markets.

The Benefits of Acquiring Alani Nu

Moreover, Celsius is not hesitant to seek assistance, as evidenced by its ongoing acquisition of the smaller energy drink brand Alani Nu for $1.65 billion. This acquisition will enable Celsius to cater to the expanding demographic of female energy drink consumers, thanks to Alani Nu’s targeted marketing and unique flavor offerings.

While the international growth trajectory may take time and the stock is likely to experience volatility during its journey, the long-term outlook appears promising. The company is poised to see international sales catch up to its domestic performance. Notably, Monster’s global sales accounted for 41% of its revenue in 2024, an increase from 39% two years earlier.

In summary, Celsius presents an exciting growth narrative not only in the U.S. but also internationally. Its health-oriented branding aligns well with Alani Nu’s focus on female consumers, paving the way for potential success in this niche market. This stock is one to consider purchasing now and holding onto, despite the likelihood of some fluctuations in the short term.