This Powerful Chart Reveals the No. 1 Bullish Opportunity in Energy Drinks (See for Yourself)

Feb 12, 2023

Consumers are buzzing about Celsius (CELH), whose healthier alternative to energy drinks have become a fan favorite with fitness enthusiasts and caffeine connoisseurs alike.

Thanks to our predictive social media data, we could see Celsius’s rise coming – and doubled down on our bullish thesis 13 months ago when we alerted LikeFolio Opportunity Alert subscribers that CELH was a buy.

That was back when CELH was trading for just $43.92 on Jan. 24, 2022.

Since then, CELH is up more than 125%, despite a less-than-ideal overall stock market.

The question now is: Has the Celsius hype run its course? Or does this stock have more room to run?

For the answer, we turned to the cold, hard facts contained in LikeFolio’s extensive social media database – and summed up the results in one powerful chart:

What you’re looking at here is a LikeFolio Outlier Grid, which is one of our favorite tools for identifying potential opportunities.

We love this chart because it can reveal which companies look bullish and which look bearish by plotting two key LikeFolio metrics against each other:

  • On the bottom (x-axis) is the growth rate of Purchase Intent (PI) Mentions, which tells us how consumers are spending their money with a given brand. The further to the right, the faster consumer demand is growing.
  • On the left (y-axis) is the percentage of social media mentions of that brand with positive sentiment, which we call Consumer Happiness – the higher, the better.

Each brand/company is represented by a dot, and the size of those dots is important because it reflects the total volume of social media mentions – a good indicator of the brand’s market penetration.

Now, take another look at the Outlier Grid above. You’ll see Celsius plotted alongside three of its biggest competitors: Monster Energy, Bang Energy, and Rockstar.

But while its competitors are all plotting on the left side of the Outlier Grid, notice Celsius ended up on the upper-right side – which is exactly what we want to see to identify a bullish opportunity.

Because it means Celsius continues to outperform all major competitors in every metric that matters to us, with higher demand growth and Consumer Happiness than its peers.

So, what’s Celsius got that its competitors apparently don’t?

For starters, the company has a cult-like following among active consumers who gravitate toward its fitness-oriented branding and lack of artificial ingredients.

On the business side of things, Celsius is making strategic moves to improve its margins and customer exposure – namely with a massive distribution partnership with PepsiCo (PEP).

Pepsi took a half-a-billion-dollar stake in Celsius last Fall as part of a long-term distribution deal. This will help Celsius place more cans on the shelves of existing retailers and enter many independent stores, like gas stations, where folks are looking for that much-needed pick-me-up.

But the best news for CELH lies in the size of its dot on the same Outlier Grid above: It’s significantly smaller than Monster’s.

That means this brand still has plenty of room left to grow – and shelf space to claim.

And that’s a high-energy place to be.