Monster Beverage missed Wall Street estimates for third-quarter sales and profit on Thursday, as cost-conscious consumers cut back spending on its higher-priced beverages.
Monster Beverage NASDAQ: MNST is the leading player in energy drinks, trading at a discount to its growth opportunity. The company and market face headwinds in 2024, with consumers impacted by higher interest rates, but long-term trends suggest the energy drink market will thrive over the next decade and Monster along with it.
MNST's third-quarter 2024 results are likely to reflect gains from strength in its energy drinks category and product launches.
Monster Beverage (MNST) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Monster's strong brand insulates it from competitors, making it a solid investment despite recent performance lagging behind SPY. Energy drink market growth outpaces overall soft drinks, with Monster's alcohol ventures offering additional growth potential, making it a compelling investment. Recent sales weakness presents an opportunity to invest at fair value.
Monster Beverage's recent price dip presents a compelling buying opportunity, given its strong brand, consistent long-term growth, and robust profitability. Despite slower revenue growth, foreign exchange headwinds and economic conditions in Argentina are key factors, with core business still performing well. In the meantime, Monster's innovation, including new product launches and expansion into affordable and alcoholic beverages, drives long-term growth potential.
MNST sees strength in its energy drinks category. Its expansion strategy also bodes well.
The competition between beverage names is a hot topic, and Jefferies chimed in today stating Red Bull's new flavors are "gaining shares" from Celsius Holdings Inc (NASDAQ:CELH) and Monster Beverage Corp (NASDAQ:MNST).
Monster Beverage Corporation MNST stock has lost 13.8% in the year-to-date period, underperforming its industry peers and the S&P 500 index. MNST's stock movement reflects a decline from the industry and the Consumer Staples sector's growth of 12.4% and 10.4%, respectively.
Despite poor 2Q24 results, I expect demand trends to improve, driven by new product launches, price increases, and strong international growth. Gross margin improvements and favorable commodity prices will support earnings growth. I maintain a buy rating for Monster Beverage stock, expecting recovery in growth and attractive upside potential.
Monster Beverage (MNST) reported earnings 30 days ago. What's next for the stock?
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