Celsius $CELH and Monster $MNST (-1.11%) two of the three major players in the energy drink market, and I've been following their stocks closely as they present different investment opportunities.

Celsius has seen explosive growth lately. Its sales jumped from $130 million in 2020 to a whopping $1.3 billion last year, giving it about 10% of the U.S. energy drink market.

The stock price soared from around $2 per share before the pandemic to nearly $100 by March 2024. However, it recently faced some challenges, dropping 12% in one day after management announced a decline in orders from a major distributor. Currently, the stock is trading around $32, and many analysts believe it’s oversold, with a potential upside of 71% based on an average target price of $54.75 for the next 12 months.

Celsius has positioned itself as a healthier alternative in the energy drink space, offering low-calorie and sugar-free products that appeal to health-conscious consumers. Their partnership with PepsiCo has helped them expand their distribution, getting their products into more grocery stores and online. In the latest quarter, Celsius reported a 23% increase in revenue and a 30% rise in sales at gyms and fitness clubs.

On the flip side, Monster Beverage remains a dominant force in the market. They reported $1.9 billion in net sales for the second quarter of 2024, which is a 2.5% increase from the previous year. However, they’ve also faced challenges, including a decline in U.S. sales due to reduced consumer spending. Despite this, Monster continues to innovate and maintain a strong global presence.

Both stocks have seen declines this year, with Monster down about 20% and Celsius down around 46%. This makes me wonder about the future of energy drink investments.

I’d love to hear your thoughts! What do you think about the stocks of Celsius Holdings and Monster Beverage? Which one do you believe has more potential for growth, and why? Share your opinions in the comments!