The past year was a great one for the stock market as a whole, but there were plenty of companies that didn't do well in 2024. Shares of Celsius Holdings (CELH +0.89%), DexCom (DXCM 2.18%), and Nike (NKE 2.00%) all fell by more than 30% during the year, as investors weren't thrilled with their results.
Entering 2025, these battered stocks look pretty undesirable for investors right now. But all hope isn't, and shouldn't be, lost on these companies. Here's why these stocks could make comebacks this year and be due for much better performances over not just the next 12 months, but the long haul.
NASDAQ: CELH
Key Data Points
1. Celsius Holdings
Energy drink company Celsius struggled last year as its growth rate nosedived. Investors were quick to dump the stock after learning that a key partner and distributor, PepsiCo, was reducing its inventory of the product. What may be referred to as simply optimizing inventory, many investors saw as a sign of demand simply not being all that strong.
The company reported a 31% drop in revenue in its latest quarter, ended on Sept. 30, which would be sure to raise alarm bells for any growth investor. But with so much at stake due to a large distributor, it may prove to be a temporary problem for the business. Celsius still has a lot of potential in the sugar-free energy market as consumers look for healthier energy options. If the business can get back to growing and this proves to be a temporary setback, watch for Celsius' stock to rebound in a big way.
The prudent option for investors may be to wait at least another quarter to get confirmation that it was just a one-time issue before investing, but Celsius is definitely a stock that could have a lot of room to rebound this year. In 2024, the stock lost more than half of its value.
NASDAQ: DXCM
Key Data Points
2. DexCom
The excitement surrounding GLP-1 weight loss drugs has made investors a bit bearish on DexCom, which makes continuous glucose monitoring (CGM) devices. Many investors may be assuming that as diabetics lose weight, they won't need to take insulin and there won't be as significant of a need for them to use CGMs, either. While that may be the case for some people, it may not necessarily be the situation in the grand scheme of things.
In fact, as people become more aware of the health risks related to high glucose levels, there may be an even greater interest in CGMs. And DexCom does appear to be tapping into this potential with the launch of its new Stelo device, a CGM aimed at people who don't require insulin. The device also doesn't require a prescription.
As with Celsius, DexCom's growth rate was unimpressive last year, as it was in just the low single digits. The healthcare company blamed the slowdown on a restructuring of its salesforce, but investors were quick to dump the stock, which finished the year down 37%. This is another stock to watch closely because if DexCom's growth rate shows signs of improvement, it could quickly send its shares rallying in 2025.
NYSE: NKE
Key Data Points
3. Nike
Footwear and apparel giant Nike lost 30% of its market capitalization in 2024 as slowing demand has weighed on its operations. The company has a new CEO at the helm, who is focused on making the brand popular again and strengthening its sales numbers. Revenue was down 8% in the company's most recent quarter (ended on Nov. 30), as it has been struggling in multiple markets.
Heading into 2025, the big question is whether it's really about strategy and branding or if the company's high-end products are proving to be too expensive at a time when consumers may be finding it hard to justify such luxuries. If it's the former, then the stock could easily recover this year, but if it proves to be the latter, a turnaround may not come so easily.
This is another stock that's worth watching and waiting on to see how it performs to get an idea of just how simple or difficult the fix might be for Nike. If you're bullish on the brand, however, now may be a good time to buy the stock, as it's trading near its 52-week low.
