After massive declines in the second half of last year, Celsius Holdings (NASDAQ: CELH) stock may finally be ready for a comeback. The company's rapid growth came to a sudden halt (at least temporarily) as sluggish demand led one of its major distributors (likely PepsiCo) to dramatically scale back its orders.

The beverage stock is down over 60% since its peak in early 2024. Still, it is up over 50% since the beginning of the year. The question for investors is whether that recovery signifies the beginnings of a Celsius comeback, or whether investors need to stay on the sidelines.

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Image source: Getty Images.

The state of Celsius stock

Celsius has carved out a compelling, lucrative niche within the energy drink industry. Instead of pursuing customers like its larger competitors, Red Bull and Monster Beverage, Celsius targeted fitness enthusiasts. It also participated in clinical studies to validate the health benefits of its beverages.

Celsius' beverages first became available in 2009. However, it was its distribution agreement with PepsiCo in August 2022 that helped sales take off. Since that agreement in the third quarter of 2022, quarterly revenues have increased by 75% even after the recent slowdown in sales. Additionally, that figure does not account for Celsius' takeover of Alani Nu, which occurred in the second quarter of this year.

Before that purchase, Celsius also claimed approximately 11% of the market share, putting it in third place in the energy drink market. Still, investors should remember that it leads the health and fitness-oriented niche in the market, which will likely make it a major force in this industry.

Image source: Statista.

Amid the stock's partial recovery, Celsius sells at a price-to-earnings (P/E) ratio of 127. Nonetheless, since it is recovering from last year's slump, the forward P/E ratio of 50 may better reflect the company's valuation, a level coming off historical lows. It is also well below the forward P/E ratio of 125 from the stock's peak in early 2024. That forward multiple arguably brings the stock price more in line with its current growth.

Celsius' mixed financial picture

Unfortunately, investors may still balk at Celsius' valuation as they brace for slower growth.

In the first quarter of 2025, revenue of $329 million dropped by 7% yearly. That's a dramatic improvement over the 31% decline in Q3. Still, it is well below the 102% revenue gain in 2023. The falling revenue also led to a comprehensive income in Q1 of $37 million, well below the $63 million in the year-ago quarter.

Revenue growth should improve in the near term due in part to the Alani Nu takeover. In 2025, analysts forecast 60% revenue growth. But once Celsius benefits from that one-time bump, they expect the revenue increase rate to slow to 21% in 2026.

Knowing that, the most significant hope for bulls may lie in the company's potential internationally, where 96% of the world's population resides. Even though international sales made up 7% of revenue in Q1 2025, that part of the market grew revenue by 41% annually.

Moreover, that revenue share was only 4% one year ago. Assuming it can continue to increase the proportion of international sales significantly, Celsius stock could deliver higher returns if revenue growth abroad remains strong.

Is Celsius stock a buy now?

Over the long term, Celsius stock likely remains a buy.

Admittedly, the 50 forward P/E ratio could point to some overvaluation in the near term. Furthermore, the immediate recovery in revenue will probably happen because of the buyout of Alani Nu, rather than an organic increase in Celsius brand products.

Nonetheless, the 21% forecasted revenue increase in 2026 is an indication that demand will rise over time. Additionally, even though international growth will take some time, sales outside of North America are likely to become the company's primary revenue driver over time.

Such potential indicates that Celsius' growth story is far from over, meaning its stock could still be positioned for huge gains.

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Will Healy has positions in Celsius. The Motley Fool has positions in and recommends Celsius and Monster Beverage. The Motley Fool has a disclosure policy.

Stocks are starting to bounce back, and it's probably a good time to take a look at growth stocks that can make the most of the market's recent bullish turn. You probably have a few growth stocks in mind, and I want to share some of mine.

I think Amazon (NASDAQ: AMZN), Roku (NASDAQ: ROKU), and Celsius Holdings (NASDAQ: CELH) are three growth stocks ready to roll in the final seven months of 2025 and beyond. Let's take a closer look at these three potential market beaters.

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1. Amazon

The leading online retailer has been a generational growth stock. Amazon has posted top-line growth of at least 9% in each of its first 28 years of trading. It's also almost a 2,000-bagger since going public in May of 1997.

Growth has slowed. Net sales rose 9% to $155.7 billion in the latest quarter it reported last week, but that's above the 5% to 8% it was targeting three months earlier.

The bottom line is the bigger story here. Net income shot 64% higher to $17.1 billion. Sales growth has meandered lately, but Amazon broke through with its first quarter of double-digit net margin in the holiday quarter of 2024. That margin has only widened in the subsequent quarter.

Amazon has posted double-digit percentage earnings beats in each of its last four quarterly updates, and its guidance is also encouraging. It sees net sales climbing 7% to 11% in the current quarter, a larger jump than it was modeling in the first quarter.

Image source: Getty Images.

There are tariff concerns, but it may be more of an opportunity than a challenge. The surge in prices on imported goods is leaving a bigger dent on deep discounters Shein, Temu, and other Chinese e-tailers trying to sell to American consumers. These companies were previously gaining market share at Amazon's expense with their low prices.

Amazon also has its AWS cloud computing infrastructure platform, which is gaining market share to the point where it now accounts for nearly a third of the global market. It's just 15% of the revenue mix here but is growing faster than its flagship e-commerce business.

The stock may not seem cheap, but here's the thing: Amazon may be a card-carrying member of the ballyhooed "Magnificent Seven," but it's trading essentially where it was at this time last year. Buying Amazon for 31 times this year's projected earnings and 26 times next year's target may seem rich, but the profit multiple is near its historic low.

2. Roku

3. Celsius Holdings

One can argue that Celsius is not worthy of being considered a growth stock at this point. After three consecutive years of revenue more than doubling, last year treated investors to a mere 3% advance.

The top line actually declined in the second half of 2024. Even the stock has lost more than half of its value over the past year, even though it's bouncing back in a major way in 2025.

Its namesake beverages continue to be a functional energy-drink staple. It also garnered bullish attention earlier this year by announcing plans to acquire the company behind Alani Nu, opening fresh opportunities with a lifestyle brand catering to a different target audience at an accretive price. With the company's return to growth expected in the second quarter -- and its stock trading for less than 30 times next year's earnings estimates -- it could wind up being one of this year's best-performing stocks.

You won't have to wait long for a fresh take on Celsius. The rebounding sparkling-beverage company reports first-quarter results on Tuesday morning.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rick Munarriz has positions in Celsius and Roku. The Motley Fool has positions in and recommends Amazon, Celsius, and Roku. The Motley Fool has a disclosure policy.