Celsius vs. Colgate-Palmolive: Which Stock Should Investors Consider Before the Start of 2027?
2026-10-24 00:30
•Jack Delaney •The Motley Fool
••••• •••• Axe Cap view
Celsius vs. Colgate-Palmolive: Growth or Stability Before 2027?
High growth in energy drinks looks exciting but comes with big risks compared to steady consumer staples.
Celsius has captured attention with an eye-popping 85.5% revenue growth, riding the surge in functional energy drinks. Yet, this stock has slid over 50% in the past year. The main red flag is its heavy reliance on Pepsi, which accounts for over 40% of its revenue. Should that relationship sour, Celsius could face serious trouble. Plus, ongoing lawsuits and fierce competition add to the risk. On the other hand, Colgate-Palmolive is a classic defensive pick. Its business centers on everyday essentials, and it has raised dividends for over six decades straight. The stock’s steady 22% gain amid a choppy market shows resilience. For South African investors, this means favouring reliable cash flows over flashy growth — the rand is unlikely to compensate for Celsius’s volatility, whereas defensive consumer staples often hold up better when global uncertainties grip the market. The only way this changes is if Celsius executes flawlessly and diversifies away from Pepsi, but that’s a big gamble. this is just our opinion and not financial advice
Trim or avoid Celsius due to its operational risks and customer concentration. Buy or hold Colgate-Palmolive for dependable dividend income and stability in volatile times.
- CL
- USD/ZAR
- Pepsi ends deal with Celsius
- Currency volatility impacts imported consumer goods
6/10
The article compares Celsius, a high-growth functional energy drink company, against Colgate-Palmolive, a mature consumer staples leader. Celsius shows explosive 85.5% revenue growth but faces risks from Pepsi dependency and has declined 54% over the past year. Colgate-Palmolive offers defensive stability with consistent dividends (63 consecutive years of increases) and has outperformed the market with a 22% gain. The author recommends Colgate-Palmolive for its reliability and dividend consistency in uncertain economic times.
Our take is based on reporting first published by The Motley Fool.