Monster Beverage has risen about 50% this past year in stairstep fashion. On Wednesday the Relative Strength (RS) Rating for Monster stock climbed into a new percentile, as it got a lift from 69 to 72.
Monster Stock Has Hidden Strength
The upgraded 72 RS Rating means Monster stock tops 72% of all stocks for price performance this past year. However, the rating upgrade doesn't fully reflect the underlying strength of Monster Beverage, whose earnings growth has accelerated every quarter during that period.
Among its other ratings Corona, Calif.-based Monster Beverage boasts a 94 Earnings Per Share Rating out of a best-possible 99. And Monster stock has a 93 Composite Rating. The Composite score combines five separate proprietary ratings into one. The best growth stocks have a Composite Rating of 90 or better.
It has an E Accumulation/Distribution Rating, which shows that funds are selling more shares than buying. However, the number of funds that own Monster stock rose from 1,902 in the December-ended quarter to 1,948 in March and 2,004 in June, a bullish indicator.
Monster Beverage posted 50% earnings growth in the latest quarter, to 39 cents per share. The prior three periods its EPS growth rose from -6% to -3% and then 36%. Revenue growth has been fairly steady. It climbed 12% in its most recent quarter to $1.86 billion, and rose 15%, 6% and 12% the three quarters before that.
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Building A Flat Base
Monster stock rose from 35.89 in early March 2022 to as high as 60.47 in May this year. It's consolidated since then. Monster is building another flat base with a 60.47 buy point. See if it can break out in volume at least 40% higher than normal. Wednesday afternoon Monster traded above 53.
Monster Beverage makes energy and sports performance drinks under a variety of brands, including its namesake, as well as Burn Energy, Full Throttle, Power Play and other brands. It holds the No. 7 rank among its peers in the 19-stock Beverages-Non-Alcoholic industry group. Vita Coco and Coca-Cola Consolidated are among the group's highest-rated stocks.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's unique RS Rating measures technical performance by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
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