Why Monster Beverage (MNST) Dipped More Than Broader Market Today
The latest trading session saw Monster Beverage (MNST) ending at $55.12, denoting a -0.42% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.32%. Meanwhile, the Dow experienced a drop of 0.71%, and the technology-dominated Nasdaq saw a decrease of 0.2%.
Coming into today, shares of the energy drink maker had lost 3.81% in the past month. In that same time, the Consumer Staples sector gained 1.08%, while the S&P 500 gained 4.59%.
Investors will be eagerly watching for the performance of Monster Beverage in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.39, signifying a 34.48% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.75 billion, up 15.85% from the prior-year quarter.
Investors should also take note of any recent adjustments to analyst estimates for Monster Beverage. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks 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 is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Monster Beverage is holding a Forward P/E ratio of 30.58. For comparison, its industry has an average Forward P/E of 18.84, which means Monster Beverage is trading at a premium to the group.
Also, we should mention that MNST has a PEG ratio of 1.47. 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 2.24 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 55, this industry ranks in the top 22% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Monster Beverage Corporation (MNST) : Free Stock Analysis Report
