A big rally from Nvidia (NASDAQ:NVDA) has re-excited many investors. Many stocks are up for the year alongside the S&P 500 and the Nasdaq 100. This looks like a good year so far after a strong 2023.
Even though numerous stocks are up for the year, the rally for some equities is just getting started. Some stocks look poised to leap 50% higher from current levels due to strong earnings and enticing growth prospects.
These are some of the bull market stocks to consider as investors start to feel optimistic about the stock market.
Celsius Holdings (CELH)
Celsius Holdings (NASDAQ:CELH) offers healthier sports drinks than the competition. The company removes many unhealthy ingredients that are common in many beverages. Celsius Holdings’ focus on health is attracting younger generations and rapidly expanding its market share.
Shares are up by 112% over the past year and gained 5,230% over the past five years. The stock would have to reach roughly $100/share to experience a 50% gain, and that growth is possible for the firm.
Celsius Holdings is touted as the next Monster Beverage (NASDAQ:MNST), which has surprisingly outperformed every stock over the past 30 years. That’s right, a beverage company beat out all of the innovative tech giants.
Celsius Holdings isn’t going to experience the same returns as someone who bought and held MNST stock for 30 years. However, the company can generate meaningful returns for investors thanks to high revenue and earnings growth rates.
Revenue increased by 104% year-over-year in Q3 2023, while net income jumped by 146% year-over-year. Net profit margins exceeded 20%.
All of the revenue and earnings growth is coming from domestic sales. That’s the most exciting part about this stock. Celsius Holdings is just starting to penetrate European markets. Once it gets a good foothold in that continent, it can then set its sights on Asia. Celsius Holdings is a domestic winner and has vast potential as it taps into global markets.
E.l.f. Beauty (ELF)
E.l.f. Beauty (NYSE:ELF) would have to get to roughly $300/share to complete a 50% leap from current prices. Momentum and financials are both on this company’s side. Shares are up by 171% over the past year and have gained 2,361% over the past five years. Despite the big rally, the stock only trades at a 57-forward P/E ratio.
I use the word “only” because revenue and earnings growth have accelerated. The company increased net sales by 85% year-over-year in the third quarter of fiscal 2024 while gaining 305 basis points of market share. Net income increased by 40.7% year-over-year, prompting the company to raise its fiscal 2024 outlook.
E.l.f. Beauty is known for beating estimates, growing at a fast pace and improving profit margins. The company’s beauty products are also well-known, especially among Gen Z. The beauty firm does not use the unethical ingredients more common in other beauty products. It has achieved 20 consecutive quarters of sales growth, and the company is poised to extend that streak.
Nvidia (NVDA)
Nvidia is a momentum stock that has crushed expectations and actually lives up to the hype. Shares are up by 234% over the past year and have gained 1,902% over the past five years. While the 1-year gain may sound excessive, the company reported 769% year-over-year net income growth in Q3 FY24.
The artificial intelligence leader can continue its rally as long as net income growth exceeds stock gains. A 265% year-over-year revenue gain suggests there will be more net income growth in future quarters.
Eventually, revenue growth will slow down, and we will have to get comfortable with high double-digit growth rates. However, Nvidia can report several quarters of high net income growth that further solidify its reasonable valuation. The company would have to reach about $1,180 to experience a 50% gain from current levels.
Nvidia has what it takes to become the world’s most valuable publicly traded corporation and dethrone Microsoft (NASDAQ:MSFT) from that title. Investors have a lot to gain even from current levels if Nvidia realizes this goal.
On this date of publication, Marc Guberti held long positions in CELH, ELF and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
