Monster Beverage (MNST) Rises Yet Lags Behind Market: Some Facts Worth Knowing
The most recent trading session ended with Monster Beverage (MNST) standing at $55.59, reflecting a +0.27% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.76% gain on the day. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 1.12%.
Coming into today, shares of the energy drink maker had lost 3.77% in the past month. In that same time, the Consumer Staples sector gained 4.52%, while the S&P 500 gained 2.5%.
Analysts and investors alike will be keeping a close eye on the performance of Monster Beverage in its upcoming earnings disclosure. 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 15.4% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Monster Beverage. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, there's been a 0.02% fall in the Zacks Consensus EPS estimate. Monster Beverage is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Monster Beverage's current valuation metrics, including its Forward P/E ratio of 30.78. This indicates a premium in contrast to its industry's Forward P/E of 18.73.
Investors should also note that MNST has a PEG ratio of 1.48 right now. 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. As the market closed yesterday, the Beverages - Soft drinks industry was having an average PEG ratio of 2.25.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Monster Beverage Corporation (MNST) : Free Stock Analysis Report
