Based in Corona, California, Monster Beverage Corporation (MNST) is a major player in the U.S. energy drink market with a market cap of $52.4 billion. The company offers a variety of energy drinks aimed at supporting active lifestyles and enhancing performance.
Companies worth $10 billion or more are generally considered "large-cap" stocks, and Monster Beverage exemplifies this category, signifying its substantial size, stability, and influence in the energy drink industry.
Monster Beverage's strength lies in its diverse brand portfolio, including Monster Energy, Reign, NOS, and a new alcohol segment. Its distribution network, combining direct sales and partnerships, ensures broad product availability across retail channels and online platforms.
MNST shares have dropped 17.8% from their 52-week high of $61.22, reached on Mar. 13. Over the past three months, MNST's shares have declined 1.3%, underperforming the broader Dow Jones Industrial Average Index’s ($DOWI) 4.8% return over the same time frame.
In the long term, MNST is down 12.6% on a YTD basis, and the shares have declined 10.7% over the past 52 weeks. In comparison, the DOWI is up 8.1% in 2024 and 17.8% over the past year.
To confirm the recent bearish price trend, MNST has been trading below its 100-day and 200-day moving averages since early April, despite minor fluctuations.
MNST stock has lagged behind the broader market over the past year, impacted by macroeconomic pressures like currency volatility and shifting consumer preferences toward healthier beverages. Besides, the increasing shift toward healthier alternatives and rising competition from emerging brands have left investors uneasy about Monster Beverage's future prospects.
Shares of Monster Beverage fell more than 10% on Aug. 8 as the company disappointed investors with its Q2 earnings report that was released on Aug. 7. It reported a revenue of $1.9 billion, missing analyst expectations. The company cited declining convenience store traffic and weakness in the energy drink category. Earnings per share increased to $0.41, falling short of the $0.45 consensus.
Highlighting the contrast in performance, rival Coca-Cola Company (KO) has outperformed MNST and DOWI, gaining 21.4% on a YTD basis and 22.7% over the past year.
Analysts are optimistic about MNST's prospects despite its recent underperformance compared to DOWI. The stock has a consensus rating of "Moderate Buy" from 20 analysts in coverage. The mean price target of $55.09 reflects a 9.5% premium over current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
