Yahoo Finance Monster Beverage's (MNST) Growth Strategies Good: Apt to Hold
Monster Beverage Corporation MNST seems well-poised for growth, thanks to its robust business strategies. The company has been gaining from the expansion of the energy drinks category and product launches. It has launched many products and expanded distribution in the international markets.
Buoyed by such strengths, shares of this energy drinks and alternative beverages’ marketer have gained 18% compared with the industry’s 4.9% growth over the past year. A Momentum Score of A further adds strength to this current Zacks Rank #3 (Hold) company.
Delving Deeper
Monster Beverage is experiencing strength in its energy drinks category, which has been driving performance for a while now. The company offers a wide range of energy drinks 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. In fourth-quarter 2023, the Monster Energy Drinks segment's net sales increased 15.1% year over year.
Product innovation plays a significant role in the company's success. Monster Beverage launched Monster Aussie Lemonade in Japan, Monster Ultra Paradise in Malaysia, Monster Mango Loco and Pipeline Punch in Kazakhstan, and Monster Mango Loco in the Philippines. In February this year, the company introduced Predator Gold Strike in Azerbaijan and the Philippines. It had earlier rolled out its unique flavored malt beverage alcohol product, The Beast Unleashed, in the United States and received positive feedback. This marked the expansion of the distribution of The Beast Unleashed into additional markets, with further plans for nationwide distribution.
Monster Beverage Corporation Price, Consensus and EPS Surprise
Monster Beverage Corporation price-consensus-eps-surprise-chart | Monster Beverage Corporation Quote
Additionally, the company continues to benefit from its pricing actions across various regions to negate the impacts of rising commodity costs and inflation. MNST continued to implement price hikes in the fourth quarter of 2023, with additional price hikes planned in several other markets ahead. Monster Beverage has been monitoring opportunities for further pricing actions across the United States and internationally. These factors have been aiding the company’s margins for a while now. In fourth-quarter 2023, the gross margin expanded 240 basis points, driven by pricing actions, lower freight-in costs and reduced input costs.
Analysts seem quite optimistic about the company. The Zacks Consensus Estimate for 2024 sales and earnings per share is currently pegged at $7.96 billion and $1.81, respectively. These estimates show corresponding growth of 11.5% and 16.8% year over year.
On a concluding note, Monster Beverage stock seems to be a decent investment bet given all the aforementioned positives.
Stocks to Consider
The Chef’s Warehouse CHEF, which engages in the distribution of specialty food products, currently carries a Zacks Rank #2 (Buy). CHEF has a trailing four-quarter earnings surprise of 3.2%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for The Chef’s Warehouse’s current fiscal year sales and earnings suggests growth of 8.7% and 4.7%, respectively, from the year-ago reported numbers.
Vital Farms Inc. VITL offers a range of produced pasture-raised foods. It currently carries a Zacks Rank of 2. VITL has a trailing four-quarter average earnings surprise of 155.4%.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings suggests growth of 18.6% and 35.6%, respectively, from the year-ago reported numbers.
Utz Brands Inc. UTZ, which manufactures a diverse portfolio of salty snacks, currently carries a Zacks Rank of 2. UTZ has a trailing four-quarter earnings surprise of 2.6%, on average.
The Zacks Consensus Estimate for Utz Brands’ current financial-year earnings suggests growth of 15.8% from the year-ago reported numbers.
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Monster Beverage Corporation (MNST) : Free Stock Analysis Report
The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report
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Utz Brands, Inc. (UTZ) : Free Stock Analysis Report
