Other than its high debt, we think the outlook is decent here, with good growth expected. Q4 results were strong, but 2025 guidance was messy, and this could continue to weigh on shares. There are also some f/x and power headwinds. Overall, though, we think there is decent potential here for growth. We do have a harder time getting over the very high valuation of 33X cash flow. This leaves little room for errors/mistakes and thus leave us a bit less enamoured.
Unlock Premium - Try 5i Free
ZTS looks 'decent' with good growth expected still and a reasonable valuation. Sales and earnings are expected to show growth over the next two years. We think it is buyable and would prefer it to the much smaller and riskier PAHC.
Unlock Premium - Try 5i Free
EPS of 14c beat estimates of 11c; revenue of $332M beat estimates of $325M. EBITDA of $62.9M crushed estimates of $42M. Revenue did fall 4.4%. International revenue was very strong, up 39%. Margins rose 2.4 points. It was a good quarter, and few were expecting much. The acquisition of Alani Nu makes sense. It is a big purchase, but it consolidates market share, adds more exposure to the women's market, and will be accretive in its first year. A mix of stock and cash, it should add to long term growth and strengthen CELH's overall position within the sector. The big move today will scare some of the short sellers (26%). We think the bottom has likely been seen now here with the stock and it will likely work its way up higher over time. We would be less inclinded to chase this in today's frenzy, however.
Unlock Premium - Try 5i Free
Behavioral Finance: Anchoring Bias
The anchoring bias is when an investor uses their information from a previous experience with a stock as a reference point for any future data. An example of this is if an investor had the opportunity to buy Stock A at $100 one year ago but did not act upon it and currently the stock price is $300. That investor, now seeing that the price has tripled, may only wish to buy Stock A close to a price of $100, as that is when they first could have bought it. The investor might feel that a share price of $300 is too expensive and that the stock price should come down to $100, however, the investors’ previous experiences are irrelevant to the share price as the company has likely continued to grow and generate revenue and become a more profitable and valuable company.
Unlock Premium - Try 5i Free
Quality company that is very safe. Dividend is excellent with strong assets and management. Would recommend holding for yield oriented investors.