Monster Beverage (MNST) Gains As Market Dips: What You Should Know
Monster Beverage (MNST) closed the latest trading day at $55.93, indicating a +0.49% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 0.1%. Meanwhile, the Dow experienced a rise of 0.33%, and the technology-dominated Nasdaq saw a decrease of 0.3%.
Coming into today, shares of the energy drink maker had lost 5.74% in the past month. In that same time, the Consumer Staples sector gained 0.2%, while the S&P 500 gained 5.78%.
The investment community will be paying close attention to the earnings performance of Monster Beverage in its upcoming release. On that day, Monster Beverage is projected to report earnings of $0.39 per share, which would represent 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 revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.49% higher. Monster Beverage presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Monster Beverage has a Forward P/E ratio of 30.75 right now. This denotes a premium relative to the industry's average Forward P/E of 18.5.
Also, we should mention that MNST has a PEG ratio of 1.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.22 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Monster Beverage Corporation (MNST) : Free Stock Analysis Report
