Monster Beverage (MNST) closed at $56.01 in the latest trading session, down 0.46% from the previous day. This change lagged the S&P 500’s 0.22% daily loss. 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 2.77% loss and lagging the gain by 2.08% of the S&P 500 during this period.
Investors will be hoping for strength from Monster Beverage as it approaches its next earnings release. In this 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 year-ago quarter.
For 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 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 to near-term stock prices. Investors can take advantage of this by using the Zacks Rank. This model takes these estimate changes into account and provides a simple, actionable scoring system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, third-party audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. In the past 30-day, our consensus EPS forecast has remained stagnant. Monster Beverage currently holds a Zacks Rank of #3 (Hold).
Considering its valuation, Monster Beverage holds a forward P/E ratio of 36.62. This represents a premium to its industry’s average Forward P/E of 20.31.
It’s also worth noting that MNST currently has a PEG ratio of 1.59. This metric is used in the same way as the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The MNST industry had an average PEG ratio of 2.49 as of yesterday’s close.
The Beverage – Soft Drinks industry is part of the consumer staples sector. This industry currently has a Zacks Rank of 42, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank is ranked from best to worst in terms of the average Zacks Rank of the individual companies within each of these industries. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics and more on Zacks.com.
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