Investment Rating - The report initiates coverage with a "Buy" rating and sets a target price of $57.1, indicating a potential upside of 16.1% from the latest closing price of $49.24 [3][4]. Core Insights - Monster Beverage Corporation (MNST) is the largest energy drink company globally, with a strong portfolio including Monster Energy, Reign, and Bang Energy. The company has shown rapid revenue growth, with 2021, 2022, and 2023 revenues of $5.54 billion, $6.31 billion, and $7.14 billion respectively, and a net profit of $1.38 billion, $1.19 billion, and $1.63 billion [1][9]. - The company’s flagship product, Monster Energy, accounted for 91.3% of revenue in the first half of 2024, with a three-year annualized growth rate of 15%. However, growth slowed to 3.3% in Q2 2024 due to economic pressures affecting its primary consumer base [1][18]. - The energy drink sector is leading the soft drink industry in growth, with an annualized growth rate of 8.1% from 2018 to 2023, and Monster holds over 40% market share in the U.S. [1][38]. Company Overview - Monster Beverage Corporation is headquartered in the U.S. and has a diversified product line that includes energy drinks and juice sodas. The company has a significant partnership with The Coca-Cola Company, which is its largest shareholder [1][9]. - The company has maintained steady growth, with a revenue increase from $4.2 billion in 2019 to $7.14 billion in 2023, reflecting an annualized compound growth rate of 11.2% [15]. Financial Performance - The company’s revenue for the first half of 2024 was $3.8 billion, a 6.9% year-over-year increase, with a net profit of $870 million, also up 6.9% [1][15]. - Forecasted net profits for 2024, 2025, and 2026 are $1.7 billion, $1.84 billion, and $2.02 billion respectively, with corresponding EPS of $1.74, $1.88, and $2.07 [1][2]. Market Strategy - Monster Beverage employs a differentiated marketing strategy, focusing on niche extreme sports sponsorships and unique packaging designs to attract younger consumers [30][29]. - The company has expanded its product offerings to include low-sugar and alcohol-based beverages, aiming to capture a broader consumer base [18][25]. Competitive Landscape - The energy drink market is characterized by strong competition, with Monster competing primarily against Red Bull, which holds about 25% market share. The top five brands in North America account for over 80% of the market [1][38]. - The company has successfully leveraged its partnership with Coca-Cola to enhance its distribution network, significantly increasing its international sales from 8% in 2008 to 40% in 2023 [31][33]. Future Growth Drivers - The report highlights the potential for continued international expansion, particularly in Europe, Latin America, and Asia, supported by Coca-Cola's distribution channels [35]. - The company is focused on improving profitability through strategic marketing, cost management, and optimizing its capital structure to support growth initiatives [36][37].

Nikolaos Sismanis holds a BSc in Banking and Finance and has over five years of experience as an equities analyst. He covers a variety of growth stocks and income stocks, including identifying those with the highest expected return potential, and a solid margin of safety. He is a contributing author to the investing group He is a contributing author to the investing group Wheel of Fortune where they share actionable trading ideas across all asset-classes, sectors and industries. The goal of the service is t ...

Shares of Monster Beverage Corporation (MNST) have gained 11.2% in the past month, outperforming the Zacks Beverages – Soft Drinks industry’s 2.8% growth, broader Consumer Staples sector’s return of 2.7% and the S&P 500 index’s 0.4% rise. This outperformance is attributed to the company’s expansion strategy and continued strength in its energy drinks category.Currently priced at $52.35, MNST stock is trading at 14.5% to its 52-week high of $61.23. However, it is trading at a 20.8% premium to its 52-week low ...

Core Insights - Jefferies reports that Red Bull's new flavors are gaining market share from Celsius Holdings Inc and Monster Beverage Corp [1] - Short interest in Celsius stock is significant at 16% of its available float, while Monster's short interest is at 4% [1] Celsius Holdings Inc - Celsius stock has underperformed, reaching a 52-week low of $31.55 on September 6 [1] - The stock is currently down 1.4% at $34.33, contributing to a year-to-date deficit of 37% [1] - The 20-day moving average has guided Celsius lower since May, with recent pressure at the $35 level [1] Monster Beverage Corp - Monster Beverage stock has trended upward since its 52-week low of $43.32 on August 8, currently up 1.9% at $52.02 [1] - Despite the recent uptick, Monster stock is still down 9.7% in 2024 [1] - The $52 level has previously rejected the shares in late July and early August, indicating potential resistance [1]

Monster Beverage Corporation (MNST) stock has lost 13.8% in the year-to-date period, underperforming its industry peers and the S&P 500 index. MNST's stock movement reflects a decline from the industry and the Consumer Staples sector's growth of 12.4% and 10.4%, respectively. The company also underperformed the S&P 500's 15% rise in the same period. MNST Price Performance Image Source: Zacks Investment Research At the current price of $49.65, the stock trades at a 23.3% discount to its 52-week high of $61.2 ...

Core Viewpoint - Monster Beverage (MNST) has experienced disappointing results leading to a significant decline in share price, but the company is expected to recover due to historical trends, visible catalysts, and international performance [2][3]. Financial Performance - MNST's revenue growth fell sharply to 2.5% in 2Q24 from previous low-teen percentages, with EPS growth slowing to 5% [3]. - July global sales increased by only 5.9%, indicating a potential decline of ~3% on a same-day basis, suggesting ongoing demand weakness into 3Q24 [3]. Market Dynamics - The energy drink category in the US is not in structural decline, with the current slowdown attributed to macroeconomic factors such as high interest rates and inflation affecting consumer spending [3]. - International markets, particularly Europe, have shown signs of recovery, with MNST's international growth at 14% on a local currency basis [5]. Growth Catalysts - MNST plans to launch new products globally, including Ultra Vice Guava, and implement a 5% price increase on core brands in 2H24, which is expected to support revenue growth [5]. - The company is also seeing robust performance in China following the rollout of Predator Gold Strike [5]. Margin and Valuation - Gross margins are expected to improve as supply challenges are resolved and production efficiencies increase, with commodity prices beginning to decline [6]. - The stock is currently trading at 27x forward PE, with an expected growth of 5% in FY24 and a gradual improvement to 10% by FY26, suggesting attractive upside potential [12][14].

It has been about a month since the last earnings report for Monster Beverage (MNST) . Shares have added about 7.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Monster Beverage due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Monster Beverage's Q2 Earnings & Sal ...

CORONA, Calif., Aug. 19, 2024 (GLOBE NEWSWIRE) -- Monster Beverage Corporation (NASDAQ:MNST) today announced that its Board of Directors has authorized a new share repurchase program for the repurchase of up to an additional $500.0 million of the Company's outstanding common stock. As of August 19, 2024, no amount remained available for repurchase under the Company's previously authorized repurchase program. The Company expects to make the share repurchases from time to time in the open market, through priv ...

Turmoil in the market can put even the most seasoned investors at unease. Thankfully, several stocks for uncertain times can help weather the storm. These stocks show promise of stability, consistent returns and resilience during unfavorable market conditions. An uncertain economy, commonly referred to as a “bouncy” economy is when the future of the economy can be hard to predict with several unknowns on the horizon. This year, inflationary concerns and questions over interest rate cuts have caused several ...

Core Insights - Monster Beverage's international operations are crucial for assessing its financial resilience and growth prospects in a global economy [1][6] - The company's total revenue for the quarter was $1.9 billion, reflecting a 2.5% increase year-over-year [2] International Revenue Trends - Latin America and Caribbean contributed $163.38 million, or 8.6% of total revenue, which was a -4.51% surprise compared to expectations of $171.1 million [3] - EMEA generated $393.92 million, accounting for 20.7% of total revenue, with a -13.25% surprise against the consensus estimate of $454.07 million [3] - Asia Pacific accounted for $145.09 million, or 7.6% of total revenue, showing a +0.17% surprise compared to the expected $144.84 million [4] Future Revenue Projections - Analysts anticipate total revenue of $1.96 billion for the current fiscal quarter, a 5.8% increase year-over-year, with expected contributions from Latin America and Caribbean (8.6%), EMEA (23.6%), and Asia Pacific (7.6%) [5] - For the full year, total revenue is projected to reach $7.65 billion, up 7.2% from the previous year, with specific contributions from each region [5] Conclusion - Monitoring international revenue trends is essential for projecting Monster Beverage's future trajectory amid growing international ties and geopolitical disputes [6]