Why Zevia Could Become A Good CPG Growth Stock
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Eric Novinson221 FollowersFollow5ShareSavePlay(12min)CommentsSummaryZevia is a high-growth, health-focused beverage company with double-digit revenue gains and strong distribution expansion.ZVIA remains unprofitable due to elevated marketing spend, but its underlying business model could support profitability with reduced investment.The balance sheet is robust, with $26M in cash and a $20M credit line, mitigating near-term dilution risk.I rate ZVIA a buy, targeting $2.20/share (+14%), citing discounted valuation, ongoing growth, and potential for future profitability or acquisition. yul38885 yul38885/iStock via Getty Images At first glance, Zevia PBC (ZVIA) might look like a penny stock with negative EBITDA and an authorization to sell stock. But if you look closer at this company, it has a profitableThis article was written byEric Novinson221 FollowersFollowI am a freelance business writer. I formerly wrote articles for the Motley Fool Blogging Network, where I won several editor's choice awards. After that, I wrote articles for the main Motley Fool site. I typically focus on restaurants, retailers, and food manufacturers, considering both growth opportunities and valuation metrics. I usually look for long term investment opportunities and plan to hold stocks for several years.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.