MNST's Strength in Energy Drinks & Innovation Bodes Well: Apt to Hold

Zacks11-21 00:58

Shares of Monster Beverage Corporation MNST have shown strength in the past three months. The stock has gained 14.3% against the industry’s 8% decline in the same time frame. The company has been ...

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The stock has gained 14.3% against the industry’s 8% decline in the same time frame. The company has been ...</p>\n\n<a href=\"https://finance.yahoo.com/news/mnsts-strength-energy-drinks-innovation-165800828.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>MNST's Strength in Energy Drinks & Innovation Bodes Well: Apt to Hold</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMNST's Strength in Energy Drinks & Innovation Bodes Well: Apt to Hold\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-21 00:58 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/mnsts-strength-energy-drinks-innovation-165800828.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Shares of Monster Beverage Corporation MNST have shown strength in the past three months. The stock has gained 14.3% against the industry’s 8% decline in the same time frame. The company has been ...</p>\n\n<a href=\"https://finance.yahoo.com/news/mnsts-strength-energy-drinks-innovation-165800828.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0345774391.USD","symbol_name":"NINETY ONE GSF AMERICAN FRANCHISE \"A\" (USD) ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/mnsts-strength-energy-drinks-innovation-165800828.html","article_id":"2485237991","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/e09gIC5IemFCK4rchgCiYA--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/ff29824cdbaaaee7a69916aa301a5f6a"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2485237991","pubTimestamp":1732121880,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Shares of Monster Beverage Corporation MNST have shown strength in the past three months. The stock has gained 14.3% against the industry’s 8% decline in the same time frame.The company has been benefiting from the expansion of its energy drinks category and product launches. It has launched various products and expanded distribution across the international markets.On the flip side, Monster Beverage has been witnessing higher costs for a while now. In third-quarter 2024, operating expenses grew 9.9% year over year due to elevated costs associated with sponsorships and endorsements, increased payroll expens","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0345774391.USD":"NINETY ONE GSF AMERICAN FRANCHISE \"A\" (USD) ACC","BK4504":"桥水持仓","LU0029874061.USD":"TEMPLETON GLOBAL SMALLER COMPANIES \"A\" YDIS INC","LU0128526141.USD":"TEMPLETON GLOBAL SMALLER COMPANIES \"A\" ACC","LU1941712348.USD":"ALLIANZ PET AND ANIMAL WELLBEING \"AT\" (USD) ACC","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","SGXZ99366536.SGD":"United Global Innovation A Acc SGD-H","BK4212":"包装食品与肉类","BK4532":"文艺复兴科技持仓","LU0079474960.USD":"联博美国增长基金A","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","FRPT":"Freshpet","LU0266013472.USD":"AXA WF - Framlington Longevity Economy A Cap USD","BK4177":"软饮料","MNST":"怪物饮料","BK4585":"ETF&股票定投概念","LU1941712264.USD":"ALLIANZ PET AND ANIMAL WELLBEING \"A\" (USD) INC","LU0345774631.USD":"NINETY ONE GSF AMERICAN FRANCHISE \"A\" (USD) INC","LU1069344957.HKD":"AB SICAV I - AMERICAN GROWTH PORTFOLIO \"AD\" (HKD) INC","SGXZ51526630.SGD":"大华环球创新基金A Acc SGD","BK4533":"AQR资本管理(全球第二大对冲基金)","LU1169590202.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"I\" (USD) ACC","LU1169589451.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"A\" (USD) ACC","LU1989763690.USD":"东方汇理世代食品基金A2 Acc","LU0053671581.USD":"摩根大通美国小盘成长股 A(dist)","SGXZ81514606.USD":"大华环球创新基金A Acc USD","LU1989763427.SGD":"CPR Invest - Food For Generations A2 Acc SGD-H","LU2211817866.USD":"Allianz Food Security AT Acc USD","NOMD":"Nomad Foods Limited","BK4588":"碎股","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","VITL":"Vital Farms, Inc.","LU1035775433.USD":"AB SICAV I - AMERICAN GROWTH PORTFOLIO \"AD\" (USD) INC"},"translate_title":"MNST在能量饮料和创新方面的实力是个好兆头：倾向于持有","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VITL":1,"NOMD":1,"MNST":1,"FRPT":1},"content_text":"Shares of Monster Beverage Corporation MNST have shown strength in the past three months. The stock has gained 14.3% against the industry’s 8% decline in the same time frame. The company has been benefiting from the expansion of its energy drinks category and product launches. It has launched various products and expanded distribution across the international markets.\nLet us delve deeper.\nAnalyzing Monster Beverage’s Strengths\nMonster Beverage has been driving performance for a while now. In third-quarter 2024, the Monster Energy Drinks segment's net sales grew 0.8% year over year to $1.72 billion. On a currency-adjusted basis, sales for the segment rose 3.9%. The company offers a wide range of energy drink brands such as Monster Energy, Monster Energy Ultra, Monster Rehab, Monster Energy Nitro, Java Monster, Punch Monster, Juice Monster, Monster Hydro Energy Water, Monster Hydro Super Sport, Monster Super Fuel, Monster Dragon Tea, Reign Total Body Fuel, Reign Inferno Thermogenic Fuel, Reign Storm, True North, NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play Relentless, BPM, BU, Gladiator, Samurai, Live+, Predator and Fury. Product innovation plays a significant role in the company's success as well. During the third quarter of 2024, the company launched Monster Ultra Violet in Australia. It launched Monster Reserve, Orange Dreamsicle, Juiced Aussie Lemonade, Juiced Bad Apple, Juiced Mango Loco, Ultra Black, UltraGolden Pineapple, Ultra Peachy Keen, Ultra Rosa, Ultra Strawberry Dreams and UltraWhitein several countries of EMEA. Further launches are planned within all brands throughout EMEA this year. MNST also launched Papillon in a 500-ml aluminium bottle in Japan and Ultra Peachy Keen in Singapore. The company intends to launch Predator in various additional provinces in 2025. In India, Monster Beverage extended the Predator Gold Strike carbonated 250 ml PET bottle beyond the Delhi region to the Northeast states this July and Madhya Pradesh this September. Management is optimistic about the long-term prospects for the Monster label in China and India, and about the expansion of Predator in these countries.In addition, the company continues to benefit from its pricing actions across various regions to negate the impacts of rising commodity costs and inflation. Management has been reviewing opportunities for price increases internationally. The company has been making a roughly 5% price increase on its core brands and packages, effective Nov. 1, 2024, in the United States. These have been aiding its gross margin for a while. Gross margin expanded 200 basis points (bps) year over year to 53.2% in the most recent quarter.\nImage Source: Zacks Investment Research\nHigh Costs: A Major Concern for MNST\nOn the flip side, Monster Beverage has been witnessing higher costs for a while now. In third-quarter 2024, operating expenses grew 9.9% year over year due to elevated costs associated with sponsorships and endorsements, increased payroll expenses and expenses related to intellectual property claims. As a percentage of sales, operating expenses expanded 210 bps to 27.6%. Also, selling expenses, as a percentage of net sales, increased 90 bps year over year to 10.4%. Further, general and administrative expenses, as a percentage of net sales, jumped 150 bps year over year to 12.8%. These expenses may continue to weigh on the company’s overall profitability. Its earnings lagged the Zacks Consensus Estimate and fell year over year during the last reported quarter.In addition, management highlighted that the energy drink category in the United States witnessed lower growth rates, in the convenience channel, during the last reported quarter. A tighter consumer spending landscape for some income groups and weak demand also remain concerning. Adverse foreign currency exchange rates continued to act as deterrents.\nMNST Stock Valuation\nMonster Beverage’s stock is trading at a premium valuation relative to the industry. Going by the price/earnings ratio, the stock currently trades at 29.41 on a forward 12-month basis, higher than 19.52 of the industry. Also, the stock is trading higher than its five-year median of 28.89.\nFinal Words on MNST Stock\nThe company's pricey valuation and the aforesaid headwinds signal a cautious approach for investors willing to enter at this level. For existing investors, holding onto the stock seems to be a prudent choice, considering the company’s long-term growth potential and robust strategies. In addition, analysts seem quite optimistic about the company. The Zacks Consensus Estimate for 2024 sales and earnings per share is currently pegged at $7.48 billion and $1.62, respectively. These estimates show corresponding growth of 4.7% and 4.5% year over year. The stock’s Zacks Rank #3 (Hold) supports our thesis.\nStocks to Consider\nFreshpet, Inc. FRPT, a pet food company, has a trailing four-quarter average earnings surprise of 132.9%. FRPT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Freshpet’s current financial-year sales and EPS indicates growth of 23.4% and 193.3%, respectively, from the prior-year levels.Vital Farms VITL, which provides pasture-raised products, currently sports a Zacks Rank of 1. The consensus estimate for Vital Farms’ current financial-year sales and EPS indicates growth of 31% and 40%, respectively, from the prior-year levels.VITL has a trailing four-quarter average earnings surprise of 82.5%.Nomad Foods Limited NOMD, manufacturer and distributor of frozen foods, currently carries a Zacks Rank #2 (Buy). NOMD has a trailing four-quarter average earnings surprise of 3.1%.The Zacks Consensus Estimate for NOMD’s current financial-year sales and EPS indicates growth of 4.9% and 25.5%, respectively, from the year-ago figures.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nFreshpet, Inc. (FRPT) : Free Stock Analysis Report\nMonster Beverage Corporation (MNST) : Free Stock Analysis Report\nNomad Foods Limited (NOMD) : Free Stock Analysis Report\nVital Farms, Inc. (VITL) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2485237991"}