Monster Beverage (MNST) Stock Falls Amid Market Uptick: What Investors Need to Know
The latest trading session saw Monster Beverage (MNST) ending at $59.20, denoting a -0.2% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.86% for the day. On the other hand, the Dow registered a gain of 1.22%, and the technology-centric Nasdaq increased by 0.51%.
The the stock of energy drink maker has risen by 5.72% in the past month, leading the Consumer Staples sector's gain of 1.07% and the S&P 500's gain of 2.84%.
The upcoming earnings release of Monster Beverage will be of great interest to investors. It is anticipated that the company will report an EPS of $0.44, marking a 15.79% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.93 billion, indicating a 13.34% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.81 per share and revenue of $7.98 billion. These totals would mark changes of +16.77% and +11.72%, respectively, from last year.
It's also important for investors to be aware of any recent modifications 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.19% rise in the Zacks Consensus EPS estimate. Monster Beverage is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Monster Beverage is currently exchanging hands at a Forward P/E ratio of 32.71. This valuation marks a premium compared to its industry's average Forward P/E of 21.18.
It is also worth noting that MNST currently has a PEG ratio of 2.29. 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 was holding an average PEG ratio of 2.31 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 69, this industry ranks in the top 28% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Monster Beverage Corporation (MNST) : Free Stock Analysis Report
