Monster Beverage Corporation (MNST), headquartered in Corona, California, develops, markets, sells, and distributes energy drink beverages and concentrates. Valued at $51.3 billion by market cap, the company offers Monster Energy energy drinks, Monster Energy Ultra energy drinks, Monster MAXX maximum strength energy drinks, Java Monster non-carbonated coffee + energy drinks, and more.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and MNST perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the non-alcoholic beverages industry. MNST remains a key player in the energy drink market, with a robust brand portfolio that includes popular labels like Monster Energy, Reign, and NOS. MNST's recent acquisitions and strategic partnerships have strengthened its brand presence and distribution network, enhancing its competitive advantage.
Despite its notable strength, MNST slipped 13.8% from its 52-week high of $61.23, achieved on Mar. 13. Over the past three months, MNST stock gained 3.8%, outperforming the Consumer Staples Select Sector SPDR Fund’s (XLP) 2.3% dip during the same time frame.
In the longer term, shares of MNST dipped 8.4% on a YTD basis and fell 6.7% over the past 52 weeks, underperforming XLP’s YTD gains of 13.9% and 13.5% returns over the last year.
To confirm the bullish trend, MNST has traded above its 200-day moving average since mid-October, with some fluctuations. However, the stock is trading below its 50-day moving average recently.
MNST has faced challenges, notably due to higher-than-anticipated inventory levels of alcohol-infused Monster drinks, indicating weaker sales of these products. Additionally, the company has experienced a notable revenue decline caused by hyperinflation in Argentina, underscoring the complexities of operating a global business.
On Nov. 7, MNST shares closed up marginally after reporting its Q3 results. Its adjusted EPS of $0.40 did not meet Wall Street expectations of $0.42. The company’s revenue was $1.88 billion, failing to meet Wall Street forecasts of $1.91 billion.
MNST’s rival, Celsius Holdings, Inc. (CELH) shares lagged behind the stock, plummeting 41.7% on a YTD basis and 38.7% over the past 52 weeks.
Wall Street analysts are moderately bullish on MNST’s prospects. The stock has a consensus “Moderate Buy” rating from the 21 analysts covering it, and the mean price target of $55.28 suggests a potential upside of 4.8% from current price levels.
