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Why Monster Beverage (MNST) is a Top Growth Stock for the Long-Term
ZACKS· 2026-01-15 15:45
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]
Why Monster Beverage (MNST) is a Top Momentum Stock for the Long-Term
ZACKS· 2025-08-12 14:50
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]