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Monster Beverage (MNST) Gains As Market Dips: What You Should Know

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Monster Beverage (MNST - Free Report) closed the most recent trading day at $57.31, moving +1% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.1%. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 5.8%.

Heading into today, shares of the energy drink maker had lost 3.5% over the past month, lagging the Consumer Staples sector's gain of 3.5% and the S&P 500's gain of 3.39% in that time.

Wall Street will be looking for positivity from Monster Beverage as it approaches its next earnings report date. In that report, analysts expect Monster Beverage to post earnings of $0.39 per share. This would mark year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.86 billion, up 12.67% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.54 per share and revenue of $7.12 billion, which would represent changes of +37.5% and +12.82%, respectively, from the prior year.

Any recent changes to analyst estimates for Monster Beverage should also be noted by investors. 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. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.16% lower. Monster Beverage currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Monster Beverage is holding a Forward P/E ratio of 36.82. Its industry sports an average Forward P/E of 22.81, so we one might conclude that Monster Beverage is trading at a premium comparatively.

Also, we should mention that MNST has a PEG ratio of 1.61. 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. MNST's industry had an average PEG ratio of 2.52 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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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