Investment Rating - The report maintains a "Neutral" rating for Monster Beverage Corp (MNST US) with a current price of $77.91 and a target price of $71.64 [2][5]. Core Insights - The company is set to launch its largest innovation pipeline in 2026, which includes new product lines targeting women, juice and functional beverages, and multiple zero-sugar products [3][12]. - International revenue and profit contributions have reached record highs, with international revenue growing 23% year-over-year in Q3 2025, now accounting for 43% of total revenue [4][13]. - A new pricing strategy implemented in the U.S. market is expected to enhance profit margins with limited negative impact on sales volume [14]. Financial Performance Summary - Revenue projections for 2025-2027 are $8.16 billion, $8.75 billion, and $9.45 billion, respectively, with growth rates of 9%, 7%, and 8% [2][10]. - Net profit is forecasted to be $2.11 billion, $2.34 billion, and $2.56 billion for the same period, reflecting growth rates of 15.6%, 10.9%, and 9.3% [5][15]. - The diluted EPS is expected to increase from $2.14 in 2025 to $2.63 in 2027 [2][10]. Market Expansion Strategy - The company is enhancing its distribution partnership with Coca-Cola to penetrate new channels such as foodservice and universities, particularly in EMEA, Asia-Pacific, and Latin America [4][13]. - The affordable energy drink line, represented by brands like Predator and Fury, is targeting lower-income markets and has expanded to 36 markets [4][13].

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score identifies attractive stocks using ratios like P/E and Price/Sales, focusing on stocks that are undervalued [3] - The Growth Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings and cash flow to find stocks with sustainable growth [4] - The Momentum Score helps investors capitalize on price trends, using metrics like weekly price changes and monthly earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stocks with strong value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, aiding investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.9%, significantly outperforming the S&P 500 [8] - With over 800 top-rated stocks available, the Style Scores assist in narrowing down choices for investors [9] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, ensuring the highest probability of success [10] - Stocks with lower ranks (3 Hold) should also have A or B Style Scores to maximize upside potential [10] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [11] Company Spotlight: Monster Beverage - Monster Beverage Corporation, based in Corona, CA, is a marketer and distributor of energy drinks, previously known as Hansen Natural Corporation [12] - Currently rated 3 (Hold) on the Zacks Rank, Monster Beverage has a VGM Score of B [12] - The company is a strong candidate for growth investors, with a Growth Style Score of A and a forecasted year-over-year earnings growth of 22.8% for the current fiscal year [13] - Recent upward revisions in earnings estimates and an average earnings surprise of +5.5% further enhance its attractiveness [13]

Core Viewpoint - Monster Beverage Corporation is a significant player in the energy drink market, with a positive outlook following the introduction of a new product and an increase in price target by analysts [2][5]. Group 1: Stock Performance - The current stock price of Monster Beverage (MNST) is $77.45, reflecting a 1.71% increase today [3][5]. - The stock has fluctuated between $75.49 and $77.73 during the day, with a yearly high of $78.31 and a low of $45.70, indicating market volatility [3]. - The market capitalization of Monster Beverage stands at approximately $75.67 billion, showcasing its significant presence in the industry [4][5]. Group 2: Analyst Ratings and Price Target - Cowen & Co. has maintained a "Hold" rating for Monster Beverage, raising its price target from $74 to $80, indicating a positive outlook for the stock [2][5]. Group 3: Product Launch and Strategy - The company is launching a new zero-sugar flavor, Ultra Punk Punch, exclusively at Circle K stores, aimed at attracting health-conscious consumers [2][5]. - The nationwide rollout of Ultra Punk Punch is expected in March, which could further impact the stock's performance [4].

Core Insights - Monster Beverage Corporation (MNST) is a leading global beverage company with a strong brand portfolio that continues to outperform in a competitive market, supported by strong category demand, consistent innovation, and disciplined execution [1] Financial Performance - The company has delivered solid financial performance while strengthening its long-term growth foundation [1] - Shares of MNST have appreciated 47.6% in the past year, outperforming the Zacks Beverages - Soft Drinks industry's rise of 7.8% and the broader Consumer Staples sector's decline of 1.5% [11] Growth Drivers - The disciplined pricing strategy has emerged as a key profitability driver, allowing the company to grow earnings faster than sales, supporting margin expansion despite higher aluminum and logistics costs [3] - Innovation is central to Monster Beverage's growth strategy, with successful product lines like Ultra and Juice Monster, and a steady pipeline of new flavors and zero-sugar offerings [4] - The expanding international footprint is a significant growth driver, with rising household penetration and demand in emerging markets [5] - Structural trends within the global energy drink market support sustained growth, as energy drinks gain acceptance as everyday functional beverages [6] Challenges - Ongoing cost pressures, particularly from higher aluminum prices and tariffs, pose challenges to profitability [7] - The Alcohol Brands segment has underperformed, which could weigh on overall growth and dilute management focus if new launches fail to gain traction [8] - Regulatory challenges, such as new excise taxes and tightening health regulations, could affect pricing and demand [10]

Core Insights - Monster Beverage Corporation (MNST) is benefiting from the ongoing expansion of the global energy drinks market and consistent product innovations, positioning the company for continued growth and market share gains [1][10]. Group 1: Market Performance - The company is experiencing strong growth in the EMEA region, particularly with the Predator Fury brand in Egypt, Kenya, and Nigeria, and is successfully rolling out Predator in Morocco [2]. - In the third quarter of 2025, net sales in the US and Canada increased by 11.6% year over year, driven by effective channel execution and strong performance from the Monster Energy Ultra and Juice Monster families [2][10]. - The Monster Energy Drinks segment's net sales grew by 16% year over year on a currency-adjusted basis in the third quarter of 2025 [3]. Group 2: Product Innovation - Product innovation is a key growth driver for Monster Beverage, with numerous new SKUs being launched, including Monster Energy Ultra Wild Passion and Juice Monster Bad Apple, aimed at enhancing retail presence through upgraded analytics and merchandising strategies [4][5]. - The successful launch of Monster Energy Lando Norris Zero Sugar has been a highlight in the EMEA market, available in 27 countries [2][4]. Group 3: Financial Estimates - The Zacks Consensus Estimate indicates that MNST's EPS is expected to grow by 22.8% in 2025 and 13.2% in 2026, with recent estimates showing an upward trend [11]. - Current estimates for MNST's EPS for 2025 and 2026 are $1.99 and $2.25, respectively, reflecting significant year-over-year growth [12]. Group 4: Valuation and Stock Performance - Shares of Monster Beverage have increased by 21.6% over the past six months, contrasting with a 0.6% decline in the industry [8]. - MNST trades at a forward price-to-earnings ratio of 38.57X, significantly higher than the industry average of 19.84X, indicating strong market confidence in the company's growth prospects [9].

Core Insights - Monster Beverage Corporation (MNST) is maintaining strong growth by integrating innovation, pricing discipline, and impactful marketing into a unified strategy [1][3] - The company is expanding its product portfolio with new flavors, formats, and zero-sugar options while managing pricing to protect margins, allowing for top-line growth without sacrificing profitability [1][2] Innovation Strategy - Innovation is central to Monster Beverage's strategy, with successful platforms like Ultra and Juice Monster being refreshed and new SKUs introduced to meet changing consumer preferences [2] - Limited-time offerings and athlete-backed products, including zero-sugar extensions, enhance brand relevance and encourage repeat purchases [2] Pricing and Marketing - The company is implementing pricing adjustments, including reduced promotional allowances, to reflect its strong value proposition while minimizing volume risk [3] - Marketing strategies, including global sports sponsorships and viral digital campaigns, reinforce the brand's lifestyle appeal and enhance consumer engagement [3] Stock Performance - Monster Beverage shares have appreciated 47.3% over the past year, outperforming the Zacks Beverages - Soft Drinks industry's increase of 8.7% and the broader Consumer Staples sector's decline of 0.4% [4] - The stock is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 34.4X, significantly higher than the industry's average of 18.14X [9]

Market Overview - Investors are closely monitoring the Federal Reserve, with notes from the December meeting expected to provide insights into interest rate strategies and economic outlook as 2026 approaches [1] - The stock market is anticipated to remain volatile, prompting a focus on low-beta stocks [1] Low-Beta Stocks - Recommended low-beta stocks include Monster Beverage Corporation (MNST), Teradata (TDC), Natural Gas Services Group, Inc. (NGS), and The Vita Coco Company, Inc. (COCO) [1][7] - These stocks are positioned to benefit from ongoing market volatility and changing consumer demands [7] Company Insights - **Teradata (TDC)**: Known for enhancing decision-making and efficiency through AI tools, TDC helps businesses leverage data without disrupting operations, aiming for long-term shareholder value [6] - **Monster Beverage (MNST)**: A leading energy drink developer, MNST is strategically positioned to capitalize on the growing global energy drinks market, reflecting healthy margins [7][8] - **Natural Gas Services (NGS)**: As the U.S. increases LNG exports, NGS benefits from higher demand for its compression equipment, essential for transporting gas through pipelines [9] - **The Vita Coco Company (COCO)**: A major player in the healthy drink sector, COCO is thriving due to the booming demand for coconut water across the U.S. [10]

Core Insights - The Federal Reserve has reduced interest rates by 25 basis points, bringing the federal funds rate to a target range of 3.5% to 3.75% [1] - The transition in leadership at the Federal Reserve in 2026 introduces uncertainty regarding future interest rate policies [4][5][8] Consumer Staples and Utilities Sector - Stocks in the Zacks Consumer Staples and Utilities sectors are recommended due to their lower volatility amid current market uncertainty [2][9] - Notable consumer staples stocks include Monster Beverage (MNST) and Mama's Creations, Inc. (MAMA), both rated Zacks Rank 1 (Strong Buy) [2][11] - Utilities stocks such as Dominion Energy (D), Ameren Corporation (AEE), and Sempra Energy (SRE) hold Zacks Rank 2 (Buy) and are expected to perform well [2][11] Low-Beta Stocks - The highlighted stocks are categorized as low-beta stocks, indicating they are less volatile compared to the broader market [3][12] - These stocks are projected to show earnings growth in 2026, supported by favorable Zacks Ranks [3] Individual Stock Performance - **Monster Beverage**: - Beta of 0.48, long-term earnings growth of 16.81%, and 2026 sales estimate of $9 billion reflecting a growth of 9.48% [16][17] - **Mama's Creations**: - Beta of 0.79, long-term earnings growth of 4.35%, and 2026 sales estimate of $218.2 million reflecting a growth of 26.49% [18][19] - **Dominion Energy**: - Beta of 0.70, long-term earnings growth of 10.26%, and 2026 sales estimate of $16.48 billion reflecting a growth of 5.14% [20][21] - **Ameren Corporation**: - Beta of 0.57, long-term earnings growth of 8.52%, and 2026 sales estimate of $9.71 billion reflecting a growth of 6.33% [22][23] - **Sempra Energy**: - Beta of 0.73, long-term earnings growth of 7.33%, and 2026 sales estimate of $14.74 billion suggesting growth of 8.5% [24][25]

Market Performance - Major U.S. indexes ended the Christmas-shortened week higher, with the S&P 500 and Dow reaching new record highs, gaining 0.75% and 0.72% respectively, while the Nasdaq Composite increased by 0.70% [1] - The U.S. GDP growth rate for Q3 2025 was 4.3%, exceeding expectations and marking the fastest growth since Q3 2023 [2] - Despite a decline in consumer confidence, investor optimism is driven by strong corporate earnings outlook and AI enthusiasm [2] Stock Performance - Castle Biosciences, Inc. (CSTL) shares increased by 77.9% since being upgraded to a Zacks Rank 1 (Strong Buy) on October 20, significantly outperforming the S&P 500's 3.8% increase [3][6] - F.N.B. Corporation (FNB) shares rose by 13.4% after its upgrade to Zacks Rank 2 (Buy) on October 21, compared to the S&P 500's 2.8% increase [4] - Hamilton Insurance Group, Ltd. (HG) and Kinross Gold Corporation (KGC) saw gains of 19.8% and 7.7% respectively since their upgrade to Outperform on October 17 [7] Portfolio Performance - A hypothetical portfolio of Zacks Rank 1 stocks returned +14.3% in 2025, slightly underperforming the S&P 500's +14.9% [11] - The Zacks Model Portfolio has outperformed the S&P 500 index by over 12 percentage points since 1988, with an annualized average return of +23.9% compared to +11.5% for the S&P 500 [13] - The Zacks Earnings Certain Admiral Portfolio (ECAP) returned -1.30% in Q3 2025, underperforming the S&P 500's +8.1% gain [15] Dividend Portfolio Performance - Johnson & Johnson (JNJ) returned 14.3% over the past 12 weeks, while 3M Company (MMM) increased by 5.2% during the same period [18] - The Zacks Earnings Certain Dividend Portfolio (ECDP) returned -0.01% in Q3 2025, compared to the S&P 500's +8.1% gain [19]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Overview: Monster Beverage (MNST) - Monster Beverage currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [2][3] - The stock has shown a price increase of 3.1% over the past week, while the Zacks Beverages - Soft drinks industry has declined by 2.07% during the same period [5] - Over the past quarter, Monster Beverage shares have risen by 14.56%, and by 46.99% over the last year, significantly outperforming the S&P 500, which increased by 5.23% and 16.06% respectively [6] Trading Volume - The average 20-day trading volume for Monster Beverage is 5,067,165 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, 8 earnings estimates for Monster Beverage have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $1.91 to $1.99 [9] - For the next fiscal year, 9 estimates have also moved upwards without any downward revisions [9] Conclusion - Given the positive momentum indicators and earnings outlook, Monster Beverage is positioned as a strong buy candidate for investors seeking short-term opportunities [11]