Group 1 - The article provides an update on Monster Beverage (NASDAQ: MNST) following a downgrade to a hold rating due to valuation aligning with fundamentals [1] - The author emphasizes a fundamentals-based approach to value investing, focusing on companies with long-term growth, stability, and strong balance sheets [1] - There is a common misconception that low multiple stocks are inherently cheap, but the author argues that price matters less when a company's growth potential is significant [1]

Core Insights - Monster Beverage has shown significant stock performance, with shares up approximately 37% over the past 52 weeks, outperforming the Consumer Staples Select Sector SPDR Fund and the S&P 500 Index [1][2] - The company has transitioned from decelerating revenue growth to accelerating growth, with a notable recovery in sales and profitability [2][3] Sales Growth and Profitability - Monster Beverage's revenue growth rate fell from 14% in Q4 2023 to 1% in Q3 2024, before reaccelerating to 5% in Q4 2024 [2] - Despite a 2% sales decline in Q1 2025, the company achieved an all-time high quarterly revenue of $2.1 billion in Q2 2025, with gross margins at 55.7%, up 210 basis points from Q2 2024 [3][4] - The company has not yet returned to pre-pandemic gross margin levels, which were around 60%, but reported an adjusted earnings per share of 52 cents in Q2 2025 [4] Share Buyback and Market Position - Since the beginning of 2021, Monster has spent approximately $5.2 billion on share repurchases, contributing to its stock performance [4] - International revenue accounted for 41% of net sales in Q1 2025, growing by over 16%, while the alcohol segment, making up about 2% of the business, has struggled [6] Price Targets and Analyst Ratings - The consensus price target for Monster Beverage is just over $65, indicating less than 2% upside from the current price, with an average forecast suggesting a potential upside of close to 9% [7][8] - The stock trades at a forward P/E ratio of 32x, which aligns with its average over the past three years, suggesting potential for near-term upside if sales growth continues [11] Competitive Landscape - Competition remains a concern, particularly from Celsius, which has seen significant revenue growth, aided by a partnership with PepsiCo [10] - Monster Beverage has a similar partnership with Coca-Cola, which supports its distribution capabilities [10]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates the highest potential for outperformance [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings [5] - The Momentum Score identifies stocks with favorable price trends, utilizing recent price changes and earnings estimate revisions [6] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth forecasts, and momentum [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [10] Company Spotlight: Monster Beverage Corporation - Monster Beverage Corporation, based in Corona, CA, is a prominent marketer and distributor of energy drinks [12] - Currently rated 3 (Hold) on the Zacks Rank, Monster Beverage has a VGM Score of B [12] - The company is appealing to growth investors, with a Growth Style Score of A and a projected year-over-year earnings growth of 17.3% for the current fiscal year [13] - Recent upward revisions in earnings estimates by analysts indicate a positive outlook, with the Zacks Consensus Estimate rising to $1.90 per share [13]

Group 1: Zacks Premium and Style Scores Overview - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe, assigning ratings from A to F based on value, growth, and momentum characteristics [2][6] Group 2: Style Scores Categories - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales, appealing to value investors [3] - The Growth Score focuses on a company's future prospects by analyzing projected and historical earnings, sales, and cash flow, catering to growth investors [4] - The Momentum Score helps investors capitalize on price trends by evaluating factors like one-week price changes and monthly earnings estimate changes [5] Group 3: VGM Score and Zacks Rank Integration - The VGM Score combines the three Style Scores to identify stocks with the best value, growth forecasts, and momentum, serving as a strong indicator alongside the Zacks Rank [6] - The Zacks Rank, a proprietary stock-rating model, utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8] Group 4: Stock Example - Monster Beverage Corporation - Monster Beverage Corporation, a marketer and distributor of energy drinks, holds a Zacks Rank of 3 (Hold) and a VGM Score of B [11] - The company has a Momentum Style Score of A, with shares increasing by 6.7% over the past four weeks, and seven analysts have raised their earnings estimates for fiscal 2025 [12] - The Zacks Consensus Estimate for Monster Beverage has risen by $0.04 to $1.90 per share, indicating a positive earnings surprise trend of +0.2% [12]

Core Insights - Monster Beverage's total revenue for the quarter ending June 2025 was $2.11 billion, marking an 11.1% year-over-year increase [4] International Revenue Trends - Asia Pacific contributed $161.69 million, accounting for 7.7% of total revenue, which was a slight decline of -0.5% from expectations [5] - Latin America and Caribbean generated $150.25 million, representing 7.1% of total revenue, with a significant miss of -9.83% compared to projections [6] - EMEA (Europe, the Middle East, and Africa) accounted for $498.22 million, or 23.6% of total revenue, exceeding expectations by +3.67% [7] Future Projections - Analysts project total revenue for the current fiscal quarter to reach $2.04 billion, an 8.6% increase year-over-year, with regional contributions expected from Asia Pacific (7.4% or $150.53 million), Latin America and Caribbean (9.1% or $186.24 million), and EMEA (23.1% or $471.87 million) [8] - For the full year, total revenue is anticipated to be $7.94 billion, reflecting a 6% increase from the previous year, with specific contributions from Asia Pacific (7.7% or $610.81 million), Latin America and Caribbean (9.2% or $730.46 million), and EMEA (22% or $1.75 billion) [9] Market Performance - Monster Beverage's stock has increased by 10% over the past month, outperforming the Zacks S&P 500 composite, which rose by 2.7% [13] - Over the past three months, the company's shares increased by 2.9%, while the S&P 500 rose by 13.2%, indicating a relative underperformance compared to the broader market [13]

Core Insights - Monster Beverage reported revenue of $2.11 billion for the quarter ended June 2025, reflecting an 11.1% increase year-over-year and a surprise of +1.35% over the Zacks Consensus Estimate of $2.08 billion [1] - The company's EPS for the quarter was $0.52, up from $0.41 in the same quarter last year, resulting in an EPS surprise of +8.33% compared to the consensus estimate of $0.48 [1] Revenue Breakdown - Geographic Revenue from outside the United States was $864.2 million, exceeding the average estimate of $837.91 million, with a year-over-year increase of +23% [4] - Geographic Revenue from the U.S. and Canada reached $1.3 billion, slightly above the estimated $1.28 billion, marking an 8.6% increase compared to the previous year [4] - Net Sales from Alcohol Brands were $37.97 million, slightly below the average estimate of $38.15 million, showing a year-over-year decline of -8.6% [4] - Net Sales from Strategic Brands amounted to $129.89 million, surpassing the estimated $124.89 million, with an 18.9% increase year-over-year [4] - Net Sales from Monster Energy Drinks were $1.94 billion, exceeding the estimated $1.85 billion, reflecting an 11.2% increase compared to the same quarter last year [4] - Net Sales from Other categories were $6.41 million, below the average estimate of $7.25 million, representing a year-over-year decline of -8.5% [4] Stock Performance - Over the past month, Monster Beverage shares have returned +2.8%, outperforming the Zacks S&P 500 composite's +1.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Monster Beverage Corporation reported strong second-quarter 2025 earnings, with adjusted earnings per share of 52 cents, surpassing the Zacks Consensus Estimate of 48 cents, and reflecting a 23% year-over-year increase [3][12] - Net sales reached $2.11 billion, exceeding the Zacks Consensus Estimate of $2.08 billion, marking an 11.1% year-over-year growth [3][12] Sales Performance - The company experienced growth in household penetration and per capita consumption, driven by robust demand for energy drinks and product innovation [2] - In the United States, the Monster Energy Ultra Blue Hawaiian was a top-selling product, contributing to an 8.6% year-over-year increase in net sales in the US and Canada [10] - Internationally, net sales outside the United States rose 15.8% to $864.2 million, accounting for approximately 41% of total net sales [11] Segment Analysis - The Monster Energy Drinks segment saw sales increase by 11.2% to $1.94 billion, with a currency-adjusted growth of 11.4% [13] - Strategic Brands, which includes affordable energy brands like Predator and Fury, reported a 18.9% year-over-year increase in net sales to $129.9 million [14] - The Alcohol Brands segment experienced a decline, with net sales dropping 8.6% year over year to $38 million [15] Cost and Margin Insights - The cost of sales increased by 6.1% year over year to $935.2 million, while gross margin expanded by 210 basis points to 55.7% due to pricing and supply-chain optimization [16] - Adjusted operating expenses rose 8.4% to $497.7 million, with a slight decline in the percentage of net sales [17] Financial Health - As of the end of the second quarter 2025, the company had cash and cash equivalents of $1.93 billion and total stockholders' equity of $7.19 billion [19] - The company did not repurchase any shares during the reported quarter, with approximately $500 million available for buyback under its existing program [19]

Core Viewpoint - Monster Beverage Corporation reported strong second-quarter results with net sales increasing by 11.1% to $2.11 billion, outperforming expectations despite concerns over rising aluminum costs [1][2]. Group 1: Financial Performance - Net sales for the second quarter reached $2.11 billion, up from $1.90 billion in the same period last year, reflecting an 11.1% increase [1]. - The company achieved a notable 17.5% volume growth in the second quarter, contributing to its strong topline performance [5]. - Following the second-quarter earnings beat, fiscal year 2025 and 2026 EPS estimates were raised by $0.03 to $1.89 and $2.14, respectively [6]. Group 2: Analyst Insights - Goldman Sachs analyst Bonnie Herzog reiterated a Buy rating on Monster Beverage, raising the price forecast from $72 to $73, indicating confidence in the company's growth potential [1]. - Herzog noted that the global energy drink segment is expanding, driven by innovations in functional and zero-sugar products, as well as potential share gains from ready-to-drink coffee and alcohol [3]. - The analyst highlighted that Monster's well-paced product pipeline, including new launches, will help sustain growth and navigate challenging year-over-year comparisons [4]. Group 3: Market Trends - The energy drink industry is experiencing strong consumption trends supported by lower gas prices (approximately -10% in July) and normalized summer weather [3]. - Innovations and international expansion, along with pricing and mix improvements, are identified as multiple growth drivers for Monster Beverage [5].

Core Insights - Monster Beverage Corp reported second-quarter earnings of $0.52 per share on revenue of $2.11 billion, marking the first time quarterly net sales exceeded $2 billion [1] - The growth was primarily driven by the flagship drink and strategic brands, while the alcoholic beverages segment underperformed [1] Stock Performance - Following the earnings report, Monster Beverage's stock rose 7.6% to $65.39, reaching an all-time high of $65.50 during the session [3] - Year-to-date, the stock has increased by 25.1%, overcoming resistance at the $64 level that had limited gains in May and June [3] Analyst Upgrades - Piper Sandler upgraded Monster Beverage to "overweight" from "neutral," reflecting increased confidence in the company's growth potential [2] - At least five other analysts also raised their price targets for the stock following the earnings announcement [2] Options Activity - The call/put volume ratio for Monster Beverage is 2.55, indicating a higher prevalence of calls compared to puts, ranking above 98% of readings from the past year [4] - Options trading volume today is six times the average pace, with 4,100 calls and 2,000 puts exchanged [4] - The most popular option is the August 65 call, with new positions opening at the August 65 put [4]

| MNST 怪物饮料 | | | | --- | --- | --- | | 30 800 + +1.300 +2.18% | | 收盘价 08/07 16:00 美东 | | 65,500 + 4.700 +7.73% | | 盘前价 08/08 05:11 美东 | | 三 7 24 15 8 8 日 9 白 9 白 一 白选 | | ● 快捷交易 | | 最高价 60.970 | 开盘价 59.960 | 成交量 903.05万 | | 最低价 59.800 | 昨收价 59.500 | 成交额 5.48亿 | | 平均价 60.633 | 市盈率TM 40.00 | 总市值 592.95亿(-) | | 振 幅 1.97% | 市盈率(静) 40.81 | 总股本 9.75亿 | | 换手率 1.30% | 市净率 9.094 | 流通值 421.36亿 | | 52周最高 64.450 | 李 七 33.33% | 流通股 6.93亿 | | 52周最低 45.700 | 量 比 0.89 | 每 手 1股 | | 历史最高 64.450 | 股息TIM -- | | | 历史最低 0.010 | ...