#4 - Monster Beverage (NASDAQ:MNST)
Monster Beverage Corporation (NASDAQ: MNST) announced a $3 billion share buyback program in May 2024. The buyback size isn’t particularly significant, and the company’s buyback yield is just 0.74%.
However, after pulling back by over 4% to start the year, management is making a statement about where they see the future direction of the stock. MNST stock has been one of the best-performing stocks in the last five years. Despite the recent pullback, it’s still up 74.7% in the last five years.
There are concerns about valuation. Monster trades at around 30x forward earnings. That’s consistent with its historical average but is still a premium to the consumer staples sector.
Monster’s recent earnings report hasn’t necessarily justified that premium valuation. However, analysts maintain a Moderate Buy rating on MNST stock and are forecasting 13.4% earnings upside in the next 12 months.
About Monster Beverage
Monster Beverage Corporation, through its subsidiaries, engages in development, marketing, sale, and distribution of energy drink beverages and concentrates in the United States and internationally. The company operates through three segments: Monster Energy Drinks, Strategic Brands, Alcohol Brands, and Other.
Read More - Current Price
- $51.94
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 13 Buy Ratings, 6 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $55.85 (7.5% Upside)
