Investors, seeking refuge from the crowded tech sphere, are turning their gaze toward high-growth consumer snacking and beverage brands, traditionally dominated by a few mega-cap giants. As these smaller disruptors such as UTZ, CELH, and BRBR nibble away at market share, a shift in the balance of power is on the horizon. This trend is particularly appealing to younger consumers seeking healthier and tastier options, as they drive a transformation in the consumer staple landscape.
UTZ: A New Entrant Shaking Up the Snack Market
Utz Brands, a recent player in the salty and savory snacking segment, has dynamically impacted the market with its high-quality products and a robust long-term growth strategy. With an anticipated organic sales growth of 5-6% through Fiscal Year 2026, UTZ is positioning itself to seize substantial market share in the snacking arena. Though trading at nearly 85 times its trailing price-to-earnings (P/E) ratio, the stock is perceived as undervalued by many industry experts, signaling potential upswings. Notably, Needham, which extols UTZ as a “Conviction List” stock, underscores the company’s “marketing consolidation” and “more-targeted product portfolio” as compelling investment factors. Moreover, Mizuho emphasizes UTZ’s rarity as a pure-play salty snack stock, justifying a premium valuation.
Price Target on UTZ Stock
The current Strong Buy rating for UTZ stock, backed by seven Buy and one Hold recommendations in the last three months, suggests an average price target of $19.38, implying 3.8% upside potential.
Celsius: A Sizzling Contender in the Beverage Market
Celsius, a prominent player in the healthy and flavorsome beverage sector, has capitalized on the burgeoning demand for drinks free from sugar, corn syrup, and artificial sweeteners. Despite a recent 28% surge in its stock price, Celsius continues to allure investors who believe in its potential to secure a larger share of the beverage market. Echoing this sentiment, Piper Sandler labeled CELH stock as the standout growth story in the consumer space, a prediction substantiated by its subsequent upsurge. Furthermore, with a Street-high price target of $76.00 and an anticipated growth slowdown to 40-45% this year, analyst Michael Lavery remains bullish on the stock, foreseeing sustained market penetration. As Celsius introduces new product lines to the Canadian market, it is poised to intensify its growth trajectory, rivalling its competitors.
Price Target on Celsius Stock
Celsius Holdings stock boasts a Strong Buy rating, with six Buy and two Hold recommendations in the past three months. The average price target of $69.50 implies 9.4% upside potential.
BellRing Brands: Powering Up the Protein Snack Domain
BellRing Brands, the force behind PowerBars and Premier Protein, has swiftly emerged as a frontrunner in the health-focused snacking space, leveraging the protein trend. With a robust portfolio of brands and an aggressive growth agenda, including forays into plant-based protein powders and geographical expansion, BRBR stock has powered ahead, delivering impressive returns. Despite a recent 9% pullback from its 2024 peak, this retreat is viewed more as an opportunity than a setback, as the company’s resilient growth drivers promise continued earnings acceleration.
Price Target on BRBR Stock
BellRing stock garners a Strong Buy recommendation, supported by ten Buy and three Hold ratings in the past three months. The average stock price target of $60.50 indicates 10.6% upside potential.
The Takeaway
Amidst the tech market’s tumult, the realm of snacks and fizzy beverages beckons with alluring growth prospects. As the dust settles on the tech trade, high-growth consumer darlings such as UTZ, CELH, and BRBR stand poised for distinct trajectories, with the latter attracting the most bullishness from analysts, projecting a 10.6% upside potential. This sector’s growth story is all but old news and, most certainly, a retail investor’s cup of tea.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
