Forget Boring Staples – This One’s on Fire

Think about this…when talking stocks, how often have you ever used the terms ‘consumer packaged goods company’ & ‘growth’ in the same sentence? These are rarely two terms that could be assigned to the same stock. However, I have found one exciting stock that shatters the stereotypical ‘boring old consumer staples’ stock mold. This stock that I have spotted is one of the most exciting stocks from this sector to come along in a number of years. This year alone, Wall St. is expecting this ‘Super Staple’ to grow their revenue by get this, a whopping 59.6%! That kind of sales growth is astronomical! You’d think this is some type of young A.I company with those expectations.

Now this company that I have focused on has a primary business focus in the area of energy drinks as well as fitness-related beverages. The stock I’m analyzing today is Celsius Holdings Inc., symbol: (CELH). CELH is a bit of a unicorn in its sector as it has experienced tremendous growth over the past few years. In recent years CELH has continued to gobble up market share, now owning a larger slice of the total pie in their addressable market. This is the catalyst that is fueling the company’s impressive growth and investors are taking notice. While CELH experienced a tough drawdown last year, the stock leveled out earlier this year and is now moving higher. The technicals are portending a solidly bullish signal and it seems CELH is primed for its next big move higher!

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In the chart above this shows just one of the great technical signals currently being displayed for CELH. I chose to show this one because it is one of my longest run technical indicators that I rely on to help me find the strongest stocks in the market. I’m talking about the 1-Month Price compared to the 10-Month SMA, my PowerTrend indicator. In the chart we can see that in March, CELH’s 1-Month Price broke above the 10-Month SMA initiating a new PowerTrend ‘Buy’ signal. This MAJOR technical ‘Buy’ signal is still valid today too, since we can see that CELH’s 1-Month price still remains above the 10-Month SMA. Not only is it still valid but in fact the price is still moving higher, so it is strengthening. Seeing a ‘Buy’ signal like this scream’s opportunity to me.

Since I have found this compelling setup in CELH, next I want to find a trade to take in order to get in on this trend. For this stock, I most likely would get this into my personal portfolio by looking to purchase call options on CELH. At current pricing on CELH’s options, they are not carrying a great deal of excess time value, which makes them a strong candidate for this type of trade. I would select the ITM call option that I would trade using my 1% Rule, which helps to improve the probability that the trade will end up producing a profit. There is one call option that meets all of my criteria and if CELH shares were to rally 10% by the time the call expired, the option would be set up to produce a 96.7% return! By selecting an ITM call like this I am able to balance choosing a more conservative option all while maintaining a nice potential upside reward.

Wishing You the Best in Investing Success,