Monster Beverage (MNST) Stock Declines While Market Improves: Some Information for Investors
The latest trading session saw Monster Beverage (MNST) ending at $57.18, denoting a -0.12% adjustment from its last day's close. This change lagged the S&P 500's 1.23% gain on the day. On the other hand, the Dow registered a gain of 1.06%, and the technology-centric Nasdaq increased by 1.7%.
The energy drink maker's stock has climbed by 3.38% in the past month, falling short of the Consumer Staples sector's gain of 4% and outpacing the S&P 500's gain of 0.94%.
The investment community will be closely monitoring the performance of Monster Beverage in its forthcoming earnings report. The company is forecasted to report an EPS of $0.39, showcasing a 34.48% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.74 billion, up 15.3% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Monster Beverage. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% upward. Monster Beverage is currently a Zacks Rank #3 (Hold).
In terms of valuation, Monster Beverage is presently being traded at a Forward P/E ratio of 31.77. This represents a premium compared to its industry's average Forward P/E of 18.64.
Also, we should mention that MNST has a PEG ratio of 1.52. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.19 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 30, positioning it in the top 12% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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
