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Monster Beverage (MNST) Gains But Lags Market: What You Should Know

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Monster Beverage (MNST - Free Report) closed the most recent trading day at $54.65, moving +0.24% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.45%.

Coming into today, shares of the energy drink maker had lost 4.92% in the past month. In that same time, the Consumer Staples sector lost 2.24%, while the S&P 500 lost 1.38%.

Monster Beverage will be looking to display strength as it nears its next earnings release. On that day, Monster Beverage is projected to report earnings of $0.40 per share, which would represent year-over-year growth of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $1.86 billion, up 14.74% from the prior-year quarter.

MNST's full-year Zacks Consensus Estimates are calling for earnings of $1.54 per share and revenue of $7.17 billion. These results would represent year-over-year changes of +37.5% and +13.66%, respectively.

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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. Monster Beverage is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Monster Beverage has a Forward P/E ratio of 35.49 right now. This valuation marks a premium compared to its industry's average Forward P/E of 20.24.

We can also see that MNST currently has a PEG ratio of 1.54. 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. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.47 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 38, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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