TreeHouse Foods Sees 14% Increase in a Month: Strategies for Investing in the Stock
TreeHouse Foods Performance: TreeHouse Foods, Inc. (THS) has seen a 14.2% stock gain over the past month, outperforming the industry and S&P 500, while trading above its 50-day moving average, indicating strong momentum and positive investor sentiment.
Operational Efficiencies and Acquisitions: The company is focused on improving supply chain efficiencies and has set a goal of $250 million in savings by 2027, while also expanding its product portfolio through acquisitions like Harris Tea, which has positively impacted net sales and gross margins.
Market Challenges: Despite the stock's recent rally, TreeHouse Foods faces challenges such as declining volume trends, operational disruptions, and commodity inflation, which could affect near-term performance.
Investment Outlook: While THS appears undervalued relative to its earnings potential, cautious investors may prefer to wait for more favorable conditions before investing, with current investors advised to hold their positions.
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- Dividend Growth Continuation: PepsiCo (PEP) recently announced its dividend growth streak has reached 54 years, with the March dividend remaining the same as last quarter but up 5% from last year, while the June dividend will increase by 4%, demonstrating the company's strong cash flow and profitability.
- Strong Cash Flow: Last year, PepsiCo generated nearly $12.1 billion in operating cash flow, comfortably covering $4.4 billion in capital expenditures and $7.6 billion in dividend payments, reflecting its financial stability and supporting its A+ credit rating.
- Future Return Plans: PepsiCo anticipates paying $7.9 billion in dividends by 2026 and plans to repurchase $1 billion of its stock as part of a newly announced $10 billion repurchase program, further enhancing shareholder returns.
- Optimistic Growth Outlook: The company expects net revenue growth of 4% to 6% in 2026, with core earnings-per-share growth of 4% to 6%, and will continue investing in high-growth areas to ensure long-term revenue and earnings growth.
- Dividend Increase: PepsiCo has announced a 4% increase in its dividend, marking its 54th consecutive year of dividend growth, which underscores the company's robust cash flow and profitability, solidifying its status as a Dividend King.
- Strong Cash Flow: Last year, PepsiCo generated nearly $12.1 billion in operating cash flow, comfortably covering $4.4 billion in capital expenditures and $7.6 billion in dividend payments, demonstrating its strong financial health and commitment to shareholder returns.
- Future Commitments: By 2026, PepsiCo anticipates paying $7.9 billion in dividends and plans to repurchase $1 billion of its stock as part of a newly announced $10 billion buyback program, reflecting the company's confidence in future growth and commitment to shareholders.
- Growth Strategy: PepsiCo expects to achieve net revenue growth of 4% to 6% by 2026 and plans to invest nearly 5% of its net revenue in high-growth areas to support ongoing growth and profitability, ensuring its ability to maintain future dividend payments.
- Executive Presentation: Celsius Holdings' CEO John Fieldly, COO Eric Hanson, and CBO Kyle Watson will present at the Consumer Analyst Group of New York (CAGNY) Conference on February 19, 2026, showcasing the company's strategy and market outlook, which is expected to attract investor interest.
- Earnings Release Schedule: The company plans to release its fourth quarter and full-year 2025 financial results before market open on February 26, 2026, followed by a conference call to analyze the financial results and address investor inquiries, enhancing transparency and investor confidence.
- Webcast and Replay: Celsius will provide live webcasts and replays of the conference on its investor relations website, ensuring investors can access key information in a timely manner, in compliance with the SEC's Regulation Fair Disclosure, thereby enhancing the breadth of information dissemination.
- Functional Beverage Market Positioning: Celsius Holdings focuses on the functional beverage market, with brands like CELSIUS® and Alani Nu®, meeting the demand for healthy drinks through innovative products, further solidifying its market position in the rapidly growing functional beverage sector.
- New Board Members: Celsius Holdings has appointed Christy Jacoby and John Short to its Board of Directors, replacing Israel Kontorovsky and Michael Del Pozzo, aiming to enhance the board's expertise to support the company's long-term value creation strategy.
- Jacoby's Background: Christy Jacoby currently serves as Senior Vice President and CFO of PepsiCo North America Operations, overseeing approximately $40 billion in food and beverage business, bringing over 20 years of finance and operational leadership experience, which is expected to provide Celsius with deep financial strategy and performance insights.
- Short's Background: John Short is PepsiCo's Senior Vice President of Strategic Partnerships & Franchise, with over 30 years of leadership experience in the beverage and consumer packaged goods industries, focusing on commercial strategy and revenue growth management, which is anticipated to drive Celsius's expansion and partnerships in the beverage market.
- PepsiCo's Influence: PepsiCo is entitled to nominate two directors under its equity investment agreement with Celsius, indicating its ongoing support and influence over Celsius's future development, which may further strengthen the strategic partnership between the two companies.
- PepsiCo's Dividend Growth: PepsiCo, known for its iconic brands like Pepsi and Gatorade, raised its dividend by 5% last year, marking 53 consecutive years of increases, with a current yield of 3.8% that significantly outpaces the S&P 500's 1.1%, showcasing the company's robust cash flow and commitment to shareholder returns.
- Main Street Capital's Unique Policy: As a business development company, Main Street Capital provides capital to lower middle-market firms, achieving a 4% dividend increase over the past year and a total growth of 136% since its 2007 IPO, with a monthly dividend policy that ensures sustainable cash flow, currently yielding 6.7%.
- Verizon's Stable Cash Flow: Verizon generates approximately $20 billion in free cash flow annually, supporting its 6.9% dividend, and has increased its dividend for 19 consecutive years; the recent $20 billion acquisition of Frontier Communications is expected to enhance its fiber network, boosting revenue and margins.
- Future Passive Income Outlook: Continued investments in PepsiCo, Main Street Capital, and Verizon are expected to yield increased passive dividend income, accelerating the path to financial independence and reflecting the long-term investment value of high-yield stocks.
- PepsiCo's Dividend Growth: PepsiCo raised its dividend by 5% last year, marking 53 consecutive years of increases, with a current yield of 3.8% that significantly outpaces the S&P 500's 1.1%, reflecting the company's robust cash flow and commitment to shareholder returns.
- Main Street Capital's Unique Policy: Main Street Capital maintains a sustainable monthly dividend policy, increasing its payout by 4% over the past year and achieving a total increase of 136% since its 2007 IPO, resulting in a 6.7% yield that provides investors with a reliable passive income stream.
- Verizon's Financial Flexibility: Verizon generates approximately $20 billion in free cash flow annually, supporting its 6.9% dividend payments, and has consistently raised its dividend for 19 years, showcasing its strong profitability and market position.
- Acquisition Enhances Growth Potential: Verizon's recent $20 billion acquisition of Frontier Communications aims to bolster its fiber network, which will enhance cross-selling capabilities, driving revenue and margin growth, thereby reinforcing its ability to sustain dividend payments.










