So Monster has been going down for quite some time (down a little over 13% from their peak of 150 back 2 months ago). Last time they released earnings back in November they had great numbers and their stock jumped around 15%. Their biggest competitor is pepsi and doing a comparison MNST has them beat in all solvency, liquidity and profitability ratios. I hate Monster drinks but the company seems like a good stock. What do you guys think of the sell off of this stock? Are people just scared by whats been going on with the market recently and dropping riskier stocks? Any thoughts, insights…?
Monster has great brand identity and really carved out a nitche in action sports. However, I’m a bit hesitant with companies like MNST because of the low barriers to entry and high capital cost for brand awareness and shelf positioning.
I focus on the technicals, and this one looks like a coin flip to me. But given the broad market weakness, and the fact that MNST has closed that gap from the last earnings release, I’d lean short on this name. Still hard to tell, not a trade I’d put on. Goodluck!
It’s been tough for Monster stock to grow in the past year because of the transition to Coca Cola distributors and some regulation issues with their drink ingredients and I believe that issue coupled with this huge sell off we’ve been having has caused this stock to be undervalued in the 130’s. I think Monster has pretty good brand awareness. I’m not an energy drinker but I know of 2, Redbull and Monster. This stock does have a high P/E relative to DPS and PEP but its growth in earnings has been crushing all their competitors at 43.6% Quarterly yoy (compare that to -73.5% for PEP and 7.4% for DPS). This company has been most definitely getting their drinks off the shelves.