Wednesday's IBD 50 Stocks To Watch pick, energy drink leader Celsius, is breaking out above resistance on the stock market today. That makes Celsius stock one of the best stocks to buy and watch right now. Celsius stock declined almost 4% midday Wednesday.
Celsius touts itself as a healthier, functional energy brand. The Boca Raton, Fla.-based company makes caffeinated, sparkling beverages and pre- and post-workout supplements in a variety of flavors.
The company claims its drinks and powder supplements boost metabolism while burning fat and calories. The flagship Celsius portfolio drinks contain seven vitamins without sugar, high fructose corn syrup, or artificial colors or flavors. They also come in powder stick form to mix with water on-the-go. Filling out the portfolio is the Celsius Stevia line, which uses natural sugars and caffeine.
In January, Celsius expanded its partnership with PepsiCo, growing its global sales and distribution footprint to consumers in Canada.
Building on the distribution agreement that began in the U.S. in 2022, PepsiCo now serves as the exclusive distributor for Celsius in Canada, where sales began last month.
In the latest reported quarter, on Nov. 7, Celsius earned 30 cents per share on revenue of $384.8 million. In the year-ago period, the company posted a per-share loss of 82 cents. Meanwhile, sales jumped 104%.
Celsius Stock Hits Buy Trigger
Last week, Celsius popped past resistance around 63 after finding support at its 10-week moving average, according to IBD MarketSmith chart analysis. Clearing that ceiling in heavy volume can offer investors a chance to pick up shares.
As a result of its recent price gains, Celsius stock shows a moderate 87 out of a perfect 99 IBD Composite Rating, according to IBD Stock Checkup. That places Celsius among the best stocks to buy and watch.
Investors might also view a 68.95 buy point in a second-stage irregular pattern as another potential entry. Like all buy points, that entry is also based on the most recent point of resistance — the peak in the consolidation pattern. Further, keep an eye out for a potential handle to offer another entry.
The stock's relative strength line hit its highest level since November, but it remains far from its old 52-week high. If the stock continues to move up the right side of its base, look for the RS line to hit a new high on the breakout day or shortly thereafter to confirm that Celsius stock is a stock market leader.
Remember, the RS line measures a stock's price performance vs. the S&P 500 and is the blue line plotted on IBD Charts.
Best Stocks To Buy And Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Samsara | 36.91 | Cup base | |
| Netflix | 579.64 | Tight area | |
| Intra-Cellular Therapies | 74.17 | Cup base |
Source: IBD Data As Of Feb. 21, 2024
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
