Monster Beverage Corp.NASDAQ
The Monster Created By Wall Street
Citron Research • 25 Comments
Citron Research • 25 Comments
Wed, Oct. 19, 1:17 PM
- Barron's has introduced a tracking index of stocks favored by younger consumers.
- Though the combined performance on the group of 50 stocks smashed the returns of the S&P 500 over the last five years, this year it lags slightly so far.
- As expected, the price-earnings ratio of the Barron's Next 50 Index skews higher due to the focus on longer-term millennial growth.
- Some of the companies making the initial list are Amazon (NASDAQ:AMZN), Barnes & Noble Education (NYSE:BNED), Boston Beer (NYSE:SAM), Chipotle (NYSE:CMG), Etsy (NASDAQ:ETSY), GameStop (NYSE:GME), GoPro (NASDAQ:GPRO), GrubHub (NYSE:GRUB), Kate Spade (NYSE:KATE), Live Nation (NASDAQ:LIVE), Lululemon (NASDAQ:LULU), MasterCard (NYSE:MA), Match Group (NASDAQ:MTCH), Monster Beverage (NASDAQ:MNST), Shake Shack (NYSE:SHAK), Square (NYSE:SQ), and Yelp (NYSE:YELP).
- A millennial-focused ETF launched last spring, the Global X Millennial Thematic ETF (NASDAQ:MILN), has outperformed the S&P 500 Index over its brief history.
Tue, Oct. 18, 12:31 PM
- Beverage stocks are active after the latest data dump from Nielsen on sales trends.
- Wells Fargo notes that most beverage categories showed growth for the period ending October 8, including nearly a 5% gain for energy drink volume and sales.
- Coca-Cola's (KO +0.7%) carbonated soft drink sales were up +1.7%, while PepsiCo's (PEP +0.4%) CSDs fell off 0.8%. CSD sales were up 0.4% for Dr Pepper Snapple (DPS +0.5%).
- Gainers off the Nielsen numbers include Cott (COT +1.9%), Monster Beverage (MNST +2.6%), Primo Water (PRMW +1.9%) and National Beverage Corp. (FIZZ +1.2%).
- Source: Bloomberg
Fri, Oct. 14, 8:13 AM
- Monster Beverage (NASDAQ:MNST) announces that a 3-for-1 split of its common stock has been approved by its board.
- The additional shares are due to be distributed on November 9 to holders of record on October 26.
- Upon completion of the stock split, the number of outstanding Monster shares will triple to approximately 571M.
- Source: Press Release
Fri, Sep. 16, 10:21 AM
- Credit Suisse names its favorite stocks in the beverage sector and cautions on others with a wave of initiations.
- The investment firm starts off coverage on Monster Beverage (MNST -0.4%), Dr. Pepper Snapple (DPS), and PepsiCo (PEP -0.4%) with Outperform ratings.
- Neutral ratings filter down on Coca-Cola (KO -0.6%) and Constellation Brands (STZ -1.4%).
- CS hangs an Underperform rating on Boston Beer (SAM -1.2%).
- Forward PE ratios on the group: Monster 30.8, Dr. Pepper 20.6, PepsiCo 20.5, Coca-Cola 21.1, Constellations Brands 23.4, Boston Beer 23.2.
Thu, Sep. 15, 5:01 AM
- The American Beverage Association is suing to block Philadelphia's soft drinks tax, marking the latest clash between the soda industry and public officials seeking to boost revenue and combat health risks.
- In June, Philly became the largest U.S. city to approve a volume-based tax of 1.5%-per-ounce on sugar sweetened beverages.
- Voters in San Francisco and at least three other places will vote in November on whether to impose similar levies.
- Related stocks: KO, PEP, DPS, MNST, FIZZ, SBUX, UL, PG
Mon, Sep. 12, 10:48 AM
- Goldman Sachs issues a broad warning on the consumer staples sector with Federal Reserve rate hikes looming in the future and continued pressure in emerging markets.
- General Mills (GIS +0.8%) and Church & Dwight (CHD -0.2%) are singled out as at risk for multiple contraction.
- Staples which Goldman sees performing well in a rising rate environment include Monster Beverage (MNST +0.1%), Kraft Heinz (KHC +1.5%), and Philip Morris.
- ETFs: XLP, VDC, FXG, RHS, FSTA, CNSF, JHMS.
Mon, Aug. 29, 7:59 AM
- Soda tax proposals will be on the ballot in three cities in the San Francisco Bay area this November and likely in Boulder, Colorado as well.
- The soda manufacturing industry is spending heavily in San Francisco, Oakland, Albany, and Boulder in an effort to defeat the measures. Unlike some votes in the past in the U.S. that weren't approved, only a simple majority is needed at the November election.
- Related stocks: KO, PEP, DPS, MNST, FIZZ.
Thu, Aug. 4, 4:18 PM
- Monster Beverage (NASDAQ:MNST) says sales for its Monster Energy business rose 14% Y/Y to $744M in Q2.
- Unfavorable F/X translation cut into sales by $5.2M.
- The company's gross margin rate improved 570 bps to 62.6%.
- Operating expenses as a percentage of revenue were 27.7% vs. 27.4% a year ago.
- Operating income as a percentage of sales was 34.9%.
- The company authorized a new $250M share buyback program.
- Previously: Monster Beverage misses by $0.04, beats on revenue (Aug. 4)
- MNST +0.26% to $159.00 AH trading.
Thu, Aug. 4, 4:14 PM
Wed, Aug. 3, 5:35 PM
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Wed, Aug. 3, 8:46 AM
- Susquehanna analyst Pablo Zuanic issues an earnings preview on four food stocks ahead of their reports.
- Kraft Heinz (NASDAQ:KHC): "We are taking our estimates ahead of the 2Q print as in hindsight our assumption for “only” $159M yoy EBITDA growth seems too conservative (consensus assumes +$328M yoy growth), and now expect $350M in EBITDA yoy growth. So our 2Q EPS is now 80c vs. 69c before (consensus is at 73c)."
- TreeHouse Foods (NYSE:THS): "We are 2c below consensus for 2Q16 (52c vs. 54c and guidance of 50-55c), and our full year EPS of $3.05 is below consensus of $3.07 and guidance of $3.05-$3.10. But we think the risks are more to the upside than downside, especially keeping in mind that 2Q guidance gave management a significant buffer (guidance implies 2H16 EPs being 2x 1H16)."
- Monster Beverage (NASDAQ:MNST): "Our 97c 2Q estimate is 6c below consensus, with 4c of the projected miss being top line related. According to the scanner data, Monster brands sales in the US continue to decelerate (+7% in 2Q16, 10% in 1Q16 and 4Q15, and low-teens 1Q-3Q15), and this should hurt sentiment."
- Kellogg (NYSE:K): "Although we project sales to decline at a worse pace in 2Q than 1Q, the stock may trade up as we see a 4c beat (1c on sales, 1c on EBIT margins), with sales slightly ahead of consensus, and good quality margin trends (accelerated gross margin gains, with greater reinvestment on turnaround efforts). We model 95c vs. consensus 91c."
- Zuanic has KHC and THS rated at Positive, while K and MNST are set at Neutral.
Mon, Jul. 18, 12:01 PM
Mon, Jul. 18, 8:57 AM
- Monster Beverage (NASDAQ:MNST) is on watch after Wells Fargo downgrades the beverage stock to Market Perform from Outperform with shares sitting close to their 52-week high ($162.77).
- Buy ratings from Wall Street firms still outnumber sell ratings by a two-to-one ratio.
- MNST -1.50% premarket to $159.18.
Wed, Jul. 13, 11:35 AM
- It's steady as she goes again for the group of well-known consumer staples stocks that investors continue to find appealing amid global volatility and low interest rates.
- Procter & Gamble (PG +0.2%), Colgate-Palmolive (CL +0.4%), Clorox (CLX +0.6%), Kimbery-Clark (KMB +0.3%), Coca-Cola (KO +0.2%), PepsiCo (PEP +0.7%), Altria Group (MO +0.5%), Philip Morris International (PM +0.1%), Church & Dwight (CHD +0.3%), and Unilever (UN, UL) have all outperformed the S&P 500 Index this year with returns ranging from 7% to 18%. Kraft Heinz (KHC +1%), Energizer (ENR -0.6%), Hershey (HSY +0.4%), Campbell Soup (CPB +0.3%), and J.M. Smucker (SJM +0.4%) are all up at least 20% YTD.
- Goldman Sachs has an explanation on why a generous valuation is warranted for the staples favorites.
- "We raise our average Staples target multiples to 20-22X P/E, up from the 19-20X range prior, to reflect the recent decline in 10-year yield as well as some likelihood of a slower rise in yield over the next 12 months and broader market volatility," wrote the MNST)+(NYSE:STZ)+(NYSE:PF)/11822884.html" target="_blank">analyst team covering the sector in a note to investors.
- Top consumer staples picks from GS include Monster Beverage (MNST +0.4%), Constellation Brands (STZ +0.2%), Pinnacle Foods (PF +1.2%), and Post Holdings (POST +0.5%).
- Consumer staples ETFs: XLP, VDC, FXG, RHS, FSTA, PSL, PSCC.
Thu, Jun. 23, 2:48 AM
- San Francisco will have a second chance to vote on whether to tax sugar-sweetened beverages after city officials added the measure to a November ballot that could expand the hotly-debated levy deeper into the Bay Area.
- The penny-per-ounce tax proposal follows the city's legal victory last month against the soda industry, which tried to halt its effort to introduce warnings on advertisements for drinks with added sugar.
- Related stocks: KO, PEP, DPS, MNST, FIZZ, SBUX, UL, PG
Thu, Jun. 16, 3:16 AM
- Philadelphia is set to become the first major American city with a soda tax despite a multimillion-dollar campaign by the beverage industry to block it.
- The City Council is expected to give final approval today to a 1.5 cent-per-ounce tax on diet and regular soda, iced tea, energy drinks, juice drinks with less than 50% juice, and other sugary beverages.
- That would add $1.01 to the cost of a 2-liter soda, $0.21 to a 13.7-ounce Starbucks Frappuccino bottle and $2.16 to a 12-pack of soda.
- Related stocks: KO, PEP, DPS, MNST, FIZZ, SBUX, UL