Monster Beverage (MNST) Advances While Market Declines: Some Information for Investors
The most recent trading session ended with Monster Beverage (MNST) standing at $55.40, reflecting a +0.69% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.6% loss on the day. Elsewhere, the Dow saw a downswing of 0.17%, while the tech-heavy Nasdaq depreciated by 0.92%.
The energy drink maker's stock has dropped by 2.31% in the past month, falling short of the Consumer Staples sector's gain of 1.81% and the S&P 500's gain of 3.56%.
Market participants will be closely following the financial results of Monster Beverage in its upcoming release. In that report, analysts expect Monster Beverage to post earnings of $0.39 per share. This would mark year-over-year growth of 34.48%. Meanwhile, our latest consensus estimate is calling for revenue of $1.75 billion, up 15.85% from the prior-year quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Monster Beverage. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Monster Beverage is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Monster Beverage is holding a Forward P/E ratio of 30.4. Its industry sports an average Forward P/E of 18.36, so one might conclude that Monster Beverage is trading at a premium comparatively.
We can also see that MNST currently has a PEG ratio of 1.46. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. MNST's industry had an average PEG ratio of 2.24 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 39, finds itself in the top 16% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MNST in the coming trading sessions, be sure to utilize Zacks.com.
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Monster Beverage Corporation (MNST) : Free Stock Analysis Report
