With a market value of $73.9 billion, Monster Beverage Corporation (MNST) develops, markets, sells and distributes energy drinks and concentrates. The Corona, California-based company’s product portfolio includes popular brands such as Monster Energy, Java Monster, Monster Ultra, NOS, Full Throttle, and Rain Total Body Fuel, among others.
Companies valued at $10 billion or more are generally classified as “large-cap stocks,” and MNST fits the label perfectly, with a market cap above that range, indicating its size, influence, and dominance in the beverage-non-alcoholic beverage industry. The company continues its strategic partnership with Coca-Cola Bottler Systems for global distribution and is currently targeting growth in international markets with more affordable energy brands like Predator and Fury, particularly in India and China.
The energy drink maker is currently trading 13.5% below its 52-week high of $87.38 reached on February 27. Shares of MNST have gained 2.5% over the past three months, lagging behind the State Street consumer staples SPDR ETF’s ( XLP ) rise of 9.3% during the same time frame.
Furthermore, on a YTD basis, MNST shares are down 1.4% compared to XLP’s 10.4% return. However, over the long term, MNST has gained 35.8% over the past 52 weeks, significantly outperforming XLP’s 3.9% gain over the same time frame.
Confirming this recent bearish trend, MNST has started trading below its 50-day moving average since early March. However, it remains above the 200-day moving average over the past year.
On February 26, MNST reported better-than-expected Q4 earnings, but its shares still fell 1.6% in the following trading session. The company’s net sales rose 17.6% year-over-year to $2.1 billion, beating consensus estimates by 3.9%. In addition, adjusted EPS of $0.51 grew 30.8% over last year’s quarter, beating analysts’ expectations of $0.49.
MNST’s competitor, PepsiCo, Inc. (PEP), which rose 3.1% over the past 52 weeks. However, this followed PEP’s 11.1% YTD increase.
