Monster Beverage (MNST, $58.08) shares get energized by Credit Suisse's "top pick" rating
Monster Beverage's shares got a boost on Wednesday, after Credit Suisse named the stock one of its top picks based on valuation.
The energy drinks maker ‘s stock is down more than -10% over the past four weeks. Credit Suisse analysts gave Monster shares a $77 price target, representing 36% potential upside from the stock's previous close.
Monster shares have been hurt by its second-quarter sales and earnings figures (reported early August) that fell short of the Street expectations. Also, there have been apparent concerns over sales of its new recent fitness beverage Reign, which haven’t been as strong as expected.
However, at a price multiple of 26 times expected earnings over the next 12 months, Credit Suisse analyst Kaumil Gajrawala views Monster Beverage shares as “cheap, given best-in-class growth prospects, low capital needs, and a clean balance sheet” . That multiple is lower than the stock’s five-year average of nearly 33 times, according to FactSet, and closer to lows of 24 times.
Gajrawala projects Monster’s revenue growth to be +10% this year, while expecting its EPS to increase +14%.
Monster Beverage shares climbed more than +2% on Wednesday.
MNST sees its Stochastic Oscillator ascends from oversold territory
On January 28, 2025, the Stochastic Oscillator for MNST moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 52 instances where the indicator left the oversold zone. In of the 52 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where MNST's RSI Indicator exited the oversold zone, of 26 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MNST advanced for three days, in of 313 cases, the price rose further within the following month. The odds of a continued upward trend are .
MNST may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on January 31, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on MNST as a result. In of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MNST turned negative on February 03, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MNST declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for MNST entered a downward trend on February 03, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. MNST’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.348) is normal, around the industry mean (77.968). P/E Ratio (37.494) is within average values for comparable stocks, (31.456). Projected Growth (PEG Ratio) (1.971) is also within normal values, averaging (5.903). MNST's Dividend Yield (0.000) is considerably lower than the industry average of (0.027). MNST's P/S Ratio (8.554) is slightly higher than the industry average of (3.240).
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Fundamental Analysis Ratings
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General Information
a holding company with interests in markets and distributes energy drinks
Industry BeveragesNonAlcoholic