2 Growth Stocks Down Over 70% That Could Rebound in 2025

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Investing in high-quality companies is a recipe for substantial growth over the long term. Nonetheless, purchasing these shares at discounted prices can further boost your investment performance.

Here are two fallen stocks of companies that are continuing to invest in the future and could be undervalued ahead of a rebound.

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1. Celsius Holdings

These stocks have been spectacular performers for investors in recent years, but they're currently about 70% below their all-time highs. Given the continued growth of the energy drink market, this top brand may be a great opportunity to purchase at a lower price.

About a year ago, revenue was increasing more than 2 times compared to the same period the previous year, but a change in the supply chain with the company's biggest distributor started to slow down revenue. Revenue fell 31% compared to the same quarter last year, but the actual demand from customers for the product is remaining much stronger.

It will continue to be one of the top brands across tracked channels in the U.S. energy drink market, which is predicted to grow from $211 billion in 2024 to $262 billion by 2029, as reported by Statista.

In addition, Celsius accounted for 16% of the growth in the energy category during the last quarter. The management team is actively investing in marketing and new product development to attract new customers, which could lead to increased revenue, higher earnings, and enhanced shareholder returns if the brand maintains its growth momentum.

The company's "better for you" marketing campaign successfully connected with consumers by highlighting products that are made without added sugar or artificial ingredients. As a result, retailers notice an increase in sales, which can lead to a stronger business relationship, enabling them to allocate more shelf space for the product, and ultimately driving further market share gains.

With the current stock price at $28 and a price-to-earnings ratio of 29 based on 2025 earnings estimates, the company appears to be at a reasonable valuation level. Analysts forecast Utilities will normalize in revenue growth in 2025, followed by a significant increase of over 10 percent in 2026.

2. Dollar General

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Recent poor sales performance has caused the stock to drop 74% from its previous peak, reaching a low of $67 at the time of this writing. However, the shares may be underpriced, potentially bouncing back with improvements by management that lead to better financial outcomes.

Dollar General is making several changes to reverse a decline. It has recently made significant enhancements to improving the appearance of stores and increasing the availability of in-stock items, resulting in higher customer satisfaction according to recent surveys.

up 1.1%.

Offering a highly attractive dividend yield of 3.52%, nearly three times that of the S&P 500.

On the basis, the stock is trading at twelve times its projected 2025 earnings. This would be inexpensive for a company with the potential to achieve double-digit earnings growth in the long run.

Taken altogether, improving customer satisfaction may lead to better financials sooner than Wall Street anticipates. There's a likelihood of a rebound this year, assuming Dollar General reports more positive news about its progress in enhancing its stores in the next few quarters.

Would it be a good time to invest $1,000 in Celsius today?

Be cautious before investing in Celsius, considering this:

For investors to buy now and potentially see big returns over the next few years aren't the same ones Celsius chose to invest in. The 10 stocks chosen could generate very high returns in the years to come.

This list was compiled on April 15, 2005... if you'd invested $1,000 at the time of our recommendation,

The rebirth of the S&P 500 since 2002.

View the 10 stocks »

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