This has been a challenging year for growth stock investors, but let's draw a new starting line. There are plenty of stocks that can still triple from current levels by the end of this year. The pullback in recent months just makes it easier to hit the revised goal.
Celsius Holdings (CELH -1.64%), Roku (ROKU -0.99%), and fuboTV (FUBO 0.42%) are three stocks that have fallen out of favor with investors. They're still coming through with monster growth, but a lack of bottom-line visibility and a finicky market where imperfect stocks are getting dumped are holding back their share prices. Let's see why each of these stocks could at least triple from now through the end of 2022.
1. Celsius Holdings
Functional sparkling beverages are booming, and Celsius Holdings is grabbing shelf space, market share, and mindshare. The distributor of fruit-flavored canned beverages that also claim to burn calories by picking up the pace of your metabolism is on a tear. Celsius cans are no longer limited to fitness centers and health stores, and sales are skyrocketing.
- 2019: 43% revenue growth.
- 2020: 74% revenue growth.
- 2021: 140% revenue growth.
If you like the direction Celsius' growth is heading you may be surprised to find the stock going the other way. The shares have been cut in half since peaking in November.
It's easier to name the places that don't stock Celsius than the grocery stores and mass market retailers that do these days. Analysts see revenue growth slowing to 69% in 2022, but that's still a lot faster than where it was three years ago. There will always be the risk of fading quickly with trendy beverage stocks but Celsius isn't taking its success for granted. It keeps ramping up new product lines and growth outlets. The fizz doesn't have to go flat.
Shares of Roku enter this trading week a brutal 80% below last summer's all-time high. Put another way, Roku stock could triple from here and still be 40% below last year's peak. It's not a ludicrous notion. The company behind the country's leading smart TV operating system has hit a new all-time high every year since hitting the market in 2017, despite drawdowns of at least 43% after every high-water mark.
Roku began this year with more than 60 million subscribers. The platform is free to use once you set up a smart TV that includes Roku OS or acquire one of its plug-in dongles. Roku makes its money by selling ads and promoting sign-ups for one of the thousands of apps available on its platform. It all adds -- and "ads" -- up. Roku's active user base has increased 17% over the past year, and average revenue per user is up a scintillating 43%.
The best shot for Roku to get back on track comes later this week. It will report its first-quarter results on Thursday.
If you think Roku's 80% haircut is a buzzcut, try fuboTV on for size. The fast-growing live TV streaming service has plummeted 93% since peaking 16 months ago.
Live TV platforms have become a popular alternative for folks cutting the cord. TV buffs nixing their cable and satellite television providers still crave the simplicity of a platform offering more than a hundred live broadcast television and cable channels, and fuboTV is there to scratch that itch. FuboTV is particularly attractive to sports fans, as more than three dozen of its channels offer live sporting action worldwide.
Growth isn't a problem for fuboTV. It posted accelerating growth through its first year of trading, and it continues to post triple-digit year-over-year growth on the top line.
- Third quarter 2020: 71% revenue growth.
- Fourth quarter 2020: 98% revenue growth.
- First quarter 2021: 135% revenue growth.
- Second quarter 2021: 196% revenue growth.
- Third quarter 2021: 156% revenue growth.
- Fourth quarter 2021: 120% revenue growth.
Growth will continue to decelerate this year, but fuboTV still expects to close out the year with more than 1.5 million subscribers. It entered 2022 with 1.1 million accounts. There should be a seasonal sequential dip in subs for the first quarter, but a recent price hike should keep year-over-year revenue growth going at a healthy clip.