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Monster Beverage (MNST) Dips More Than Broader Markets: What You Should Know

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Monster Beverage (MNST - Free Report) closed at $56.01 in the latest trading session, marking a -0.46% move from the prior day. This change lagged the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.23%.

Heading into today, shares of the energy drink maker had lost 2% over the past month, outpacing the Consumer Staples sector's loss of 2.77% and lagging the S&P 500's gain of 2.08% in that time.

Investors will be hoping for strength from Monster Beverage as it approaches its next earnings release. In that report, analysts expect Monster Beverage to post earnings of $0.40 per share. This would mark 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.54 per share and revenue of $7.17 billion. These totals would mark changes of +37.5% and +13.66%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Monster Beverage. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Looking at its valuation, Monster Beverage is holding a Forward P/E ratio of 36.62. This represents a premium compared to its industry's average Forward P/E of 20.31.

It is also worth noting that MNST currently has a PEG ratio of 1.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MNST's industry had an average PEG ratio of 2.49 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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