After a brief correction sell-off across global stock market indexes over the past couple of trading days, investors may be looking for places in the market where their capital might be safer. Some have looked to the energy sector, just like Warren Buffett did when he bought up to 29% of Occidental Petroleum Co. (NYSE: OXY). Some, like Stanley Druckenmiller, have looked to bonds and small-cap stocks.

However, one thing remains at the top of mind wherever these investors may start looking, and that is fundamentals. It doesn’t matter what happens in the short term as long as strong fundamentals remain through the business cycle and are there to carry a business forward and its stock price. On that note, those that bring stability from the consumer staples sector, with a bit of growth in the discretionary space, can be worthy of a second look from investors.

And, what better way to start off this list than with a company that just delivered double-digit growth in all of its drivers, Celsius Holdings Inc. (NASDAQ: CELH)? A caffeinated drinks company, Celsius is looking to make a splash in its market and has successfully competed with the likes of Monster Beverage Co. (NASDAQ: MNST) and even Coca-Cola Co. (NYSE: KO). Here’s how it might be a good watchlist addition in today’s market.

Celsius: A Recognized Player in the Drinks Industry With Tons of Growth

In the recent second-quarter 2024 earnings press release, investors will find that all of Celsius’s key drivers performed impressively, with not a single one disappointing. Revenue for the quarter reached a record level of $402 million, or 23% growth over the past 12 months.

Now, to speak of brand recognition and adoption is one thing; to quantify it is another. Investors can look to the company’s gross margin rate of 52% in the past quarter as a sign of not only deep market penetration but also favorable pricing power.

Gross profits, in turn, reached another record high of $209.1 million, jumping by 32% over the year. Compared to peers with big brands like Coca-Cola, whose gross margins are 60.3%, Celsius seems headed in the right direction despite being over $200 billion smaller in size.

Another way investors can check how far Celsius has come in its growth phase is through free cash flow (operating cash flows minus capital expenditures). Going from $38.4 million in 2023 to $160.5 million in 2024 is a fantastic achievement that sets the foundation for Celsius stock to become a potential multi-bagger.

Now, the measure every investor is looking for is earnings per share (EPS). Delivering a net EPS of $0.28 translates to 65% growth over the year, impressive for any company and industry. With all this growth and recognition, it only makes sense that the stock should be trading at – or near – highs.

But that’s just not the case. Celsius stock trades at only 45% of its 52-week high, and even after delivering 65% EPS growth, it ended the day down by 2.3%, which is where savvy investors will find an unmissable opportunity.

Wall Street's Take: What's Next for Celsius Stock?

Surely, value investors can't be the only ones noticing what lies ahead for Celsius stock. Wall Street analysts now forecast up to 27.6% additional EPS growth for the next 12 months, which is optimistic but, at the same time, lies on the conservative end of the spectrum, especially after seeing the 65% jump recently.

Leaning on recent financial momentum and further growth projections, those at B. Riley decided to place a price target of up to $80 a share for Celsius stock, daring it to nearly double from where it trades today. Not too many stocks can offer close to 100% upside in today's market, especially during these sell-offs.

Despite the bearishness and downside momentum in the stock market, bears are retreating from the bullish data coming out of Celsius stock. Investors can check this trend by watching the 1.6% decline in the stock's short interest in Celsius.

More than that, those at Bank of New York Mellon Corp decided to boost their holdings in Celsius stock by 36.7% as of July 2024, bringing the bank's net investment up to $167.9 million today, or 1.3% ownership in the company.