We recently published a list of 10 Best Short-Term Stocks To Buy Right Now. In this article, we are going to take a look at where Celsius Holdings, Inc. (NASDAQ:CELH) stands against other best short-term stocks with a buying opportunity for investors.
Thrilling highs, daunting lows, and the energized chase after the next big opportunity – this thoroughly defines the current stock market. In this roller coaster ride, momentum investing is an often-seen strategy piquing the investors’ interest, which involves capitalizing on continuing existing market trends. The approach holds onto the hope that high performers in the past will continue to perform better in the future as well. A curious subset within the strategy is the price momentum stocks, whose recent downturns are seen as an opportunity as they show potential for a swift rebound.
2025 has started with many changes, leading to complications in the U.S. stock market. The political changes, including the change in the U.S.’s stand in the Ukraine-Russia war, tariff changes leaning towards unfavorable imports, and the advent of artificial intelligence (AI) models from foreign countries, have brought down the stock value of many dominating leaders in the industry. For instance, CNBC reported a $750 billion drop in the tech industry’s Magnificent 7’s value as of March 10, 2025, owing to new tariffs. However, this decline has been attributed more to institutional selling than fundamental weaknesses. Discerning investors perceive it as a potential opportunity.
It is not just the tech giants feeling the heat. Price momentum stocks with negative one-year returns in the broader market continue to attract investors’ interest despite the fluctuations in the market. Despite the decline over the past year, these stocks have shown positive momentum in more recent periods, getting the attention of many analysts in the market. Such patterns are common in companies that underwent a restructuring, launched a promising product, or benefited from favorable market conditions. To identify these stocks, we must be willing to go deeper beyond the surface-level metrics, and hence, we present this article to you.
Before going into the article, however, investors are asked to approach the momentum investing strategy with caution. The strategy, particularly concerning stocks with recent negative returns, can be like walking a tightrope. We must consider the possibility of the factors that led to their decline, resurfacing in the future, or the short life of the recent positive momentum. Hence, in addition to the information we share in our article, thorough research alongside a well-defined exit strategy is highly recommended.
The pursuit of high returns can be tempting. Hence, investors are suggested to estimate the risk tolerance levels and long-term objectives and align them with their investment decisions. Even during tough times, the stock market presents investors with many opportunities. Discernment and prudence are required to make informed investment decisions that provide the best chance of generating an optimal return for your investment.
Our Methodology
We have used three key criteria to identify the 10 best short-term momentum stocks: a minimum decline of 30% over the past year, a minimum gain of 7.5% in the past month, and average daily trading volume of at least 100,000 shares. In addition, we have considered technical indicators focusing on stocks that recently crossed above their 20-day Simple Moving Average (SMA) and where the 20-day SMA exceeds the 200-day SMA, which signals a potential upward trend. To rank the list, we used the one-month returns. With it, we prioritized the most recent momentum performers. We have also considered the hedge fund interest from Insider Monkey’s Q4 2024 database for each stock on our list to project the level of market backing.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Celsius Holdings, Inc. (CELH): Jim Cramer’s Take on the Energy Drink Giant’s Future
A hand pouring a cool can of a carbonated non-alcoholic beverage with a smiley face on it.
Celsius Holdings, Inc. (NASDAQ:CELH) is a global company specializing in fitness beverages to boost energy levels. Its flagship product, Celsius, contains natural ingredients, appealing to health-conscious consumers. The company’s headquarters are located in Florida, the U.S. Competing with brands like Monster and Red Bull, the company leverages brand loyalty, strategic partnerships, and distribution expansion to acquire sustained growth.
Celsius Holdings, Inc. (NASDAQ:CELH) has experienced a steep decline of 71.03% over the past 52 weeks. The decline reflects the challenges faced by the company, including reduced unit velocity and softer macroeconomic conditions, which are affecting the revenue. Notably, there was a 6% drop in sales in North America after PepsiCo, the largest distributor for the company, reduced its inventory.
However, Celsius Holdings, Inc. (NASDAQ:CELH) has shown signs of recovery in the last month, surging 21.22%. In its fourth quarter, the company announced an acquisition of Alani Nutrition, which could enhance its position in the sugar-free beverage market. The announcement has a broad positive reception, adding value to its shares. Short-term indicators also highlight a mild upward momentum, with the 20-day SMA rising by 1.64%, though the 200-day SMA stays negative at 26.74%.
With 33 hedge fund portfolios tracking the stock as per Insider Monkey’s database of Q4 2024, institutional interest remains significant, placing Celsius Holdings among the top short-term stocks for investors.
Overall, CELH ranks 4th on our list of 10 Best Short-Term Stocks To Buy Right Now. While we acknowledge the potential for CELH as an investment, our conviction lies in the belief that some AI stocks hold more significant promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CELH but that trades at less than 5 times its earnings check out our report about the cheapest AI stock.
