Some of the stocks I like have not been performing well in the market. Celsius Holdings is a company that specializes in providing products in the health and wellness sector. ( CELH -0.28% ) , Roku ( ROKU -1.04% ) , and Disney ( DIS 0.26% ) Stocks are experiencing a decrease in value this year, although there is still time left in 2024.
I am confident that all three can recover and outperform the market in the remaining months of the year. The positive trend is expected to persist into 2025 and beyond.
Although these growth stocks are currently not popular, they are still appealing. Let’s delve deeper into why these three companies have the potential to experience a significant increase in value after a slow beginning to the year.
1. Celsius
The functional-beverage specialist’s growth has slowed down significantly due to their product designed to boost calorie and fat burning before cardio. Despite this setback, I believe Celsius has the potential to regain momentum. The company, which experienced over a 100% increase in sales for three years in a row, has faced challenges this year with a drastic 62% drop in shares since reaching a peak in March.
Experiencing a decrease in revenue growth to 37% during the initial quarter of this year was challenging. An increase of 23% compared to the previous year. The company’s performance in the second quarter of last week was notably poor. Despite this, Celsius saw an initial increase in its stock value after releasing its most recent financial report. The results surpassed the 20% revenue growth that analysts had predicted. Moreover, the profit margin exceeded expectations even more significantly.
The profitability of this expandable business has been increasing. The latest quarter saw a 65% rise in earnings per share, continuing the trend of surpassing expectations by a double-digit percentage. While companies that consistently outperform are typically favored by the market, this stock continues to decrease in value like a weight loss program aided by Celsius.
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The immediate obstacles persist. Celsius now holds an 11% share of the energy drink market in the country, up from 9.6% the previous year, but has experienced a sequential decrease. While there is no new competitor encroaching on the company’s area of expertise, it is evident that after achieving tremendous growth primarily through expanding its market presence, the era of triple-digit growth for the company has come to an end.
The stock is being traded at a fair valuation of 30 times the profit target set by analysts for the next year. While international sales continue to contribute to the total revenue, they have shown a stronger growth rate of 30% compared to North American sales. There are also suggestions that the hot summer weather has led to a higher demand for regular water for hydration purposes.
Fall and colder temperatures are approaching soon. Despite some recent setbacks, Celsius continues to be one of the fastest-growing. stocks related to drinks It might be a good moment to take another drink.
2. Roku
Despite its declining stock value, Roku, a leader in streaming TV, continues to improve its services. The company’s shares have decreased by 50% since reaching their peak in December of the previous year.
Roku is meeting all the necessary criteria and expectations in the TV industry, and its losses are decreasing. The company has extended its period of significant revenue growth to five consecutive quarters, and user interaction is consistently increasing. Despite these achievements, the market remains unimpressed and is exploring different avenues for potential growth.
Even though Roku faces tough competition from highly valuable companies in the consumer-tech industry, it remains the top choice for users in terms of usage. According to a recent study by Comscore CTV Intelligence in the spring, Roku’s operating system captured 47% of the time spent by American viewers on smart TVs.
The Roku Channel, a service owned by Roku, has experienced a 75% increase in viewership in the last year. Recently, they introduced The Roku Sports Channel, which is similar to their main service in that it is free for users and supported by advertisements. This allows users to access a variety of sports content.
3. Disney
Let’s discuss a media company that has existed for over a century now. Disney might not appear to be experiencing significant growth, given that its revenue has not exceeded 6% in the last five quarters. Even its famous theme park division is currently facing challenges. However, there is a larger narrative unfolding here with this renowned storyteller.
Disney recently revealed a slew of new attractions that will be added to its theme parks in the near future. The studio has also made a comeback with the release of two highly successful films this summer. Disney+ is now starting to become profitable, and its streaming service is generating enough revenue to make up for the decreasing earnings from its traditional media networks.
Experts are reducing their profit forecasts for the upcoming fiscal year due to Disney’s significant investments aimed at driving future growth. This is seen as a necessary step to speed up the company’s growth trajectory. Despite this, the situation presents an interesting narrative, and the stock’s high teens forward earnings ratio suggests it is a compellingly priced story that could have a successful outcome.
