The two stocks we will examine today, The Trade Desk (TTD) and Celsius (CELH), are uniquely positioned to benefit from multiple industry shifts, making them a market-beating proposition. The Trade Desk, at the confluence of advertising’s shift to digital markets, the rise of connected television (CTV), and the downfall of third-party cookies, has become a leader in the digital advertising industry. Thanks to its massive platform, its CTV reach to over 90 million homes, and its burgeoning cookie alternative named Unified ID 2.0 (UID2), the company plays a vital role in the digital advertising revolution. The company should see continued growth for decades. However, its premium valuation may be best to slowly add to over time rather than buy in one purchase.
Celsius, backed by multiple clinical studies, is taking advantage of the megatrends of steady energy-drink growth with healthier beverage options, bringing a thermogenic offering, helping to boost metabolism and burn fat and calories. Quickly becoming the third-biggest U.S. energy drink, the company has seen its share price rise by 1,480% in just the last five years. The company’s proprietary Metaplus blend looks to carve out its niche of better-for-you energy drinks. Despite this incredible run, there is still plenty of room for excitement looking ahead, such as a $550 million investment from PepsiCo in 2022 in exchange for 8.5% of its business and the right to be its primary distributor. This new distribution will kick-start Celsius’ foray into the food service, hotel, airport, university, and other sectors, adding another growth dimension to the business.
