Cramer evaluates the energy drink stock market and states that Celsius is a recommended purchase

Are Energy Drink Stocks Still a Good Investment? Jim Cramer Weighs In

In a recent CNBC segment, Jim Cramer discussed the performance of two major players in the energy drink sector: Celsius and Monster. While both stocks have seen declines in recent months, Cramer expressed optimism about the future potential of Celsius over Monster.

Historically, Wall Street has favored the energy drink sector, but in March and April, many growth stocks, including Celsius and Monster, experienced a downturn. Despite this, Cramer believes that Celsius has a brighter outlook compared to Monster and would choose to invest in Celsius over Monster at this time.

Cramer pointed out that while Monster did see a slight increase in stock price after its recent earnings report, largely due to a significant buyback announcement, he was underwhelmed by the company’s latest numbers. On the other hand, Celsius reported stronger-than-expected margins, despite an earnings miss, which Cramer viewed as a positive sign for the company’s future growth.

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One key factor Cramer highlighted in favor of Celsius was the company’s ability to continue gaining market share in the sector. Additionally, Celsius has only just begun to expand internationally, presenting even more potential upside for investors. Despite a recent rebound in Celsius stock price, Cramer believes it is still a good time to consider investing in the company, as it has not yet reached its previous high levels.

In conclusion, Cramer emphasized the importance of investing in companies that are gaining market share like Celsius, rather than those that are losing ground like Monster. While both companies have faced challenges in recent months, Celsius appears to have a stronger growth potential moving forward.

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