With a current price of $79.50, Monster Beverage Corporation [NASDAQ:MNST] is active in the Beverages – Non-Alcoholic industry, with a 5-day price swing of -1.31%.
For the year, the stock is trading 27.00%, while, as a point of reference, the S&P 500 is trading -0.53% YTD. Other data to note on this name is a price per sales number of 9.94 and a price per cash flow number of 43.24.
The Bears are coming
Holding a Market Cap of $42.80 billion, Monster Beverage Corporation has seen a trading range over the last year of $50.06-$87.05.
For the last five days, MNST is down from its last closing price. The average shares trading hands each day is 2.04M, with average 10-day volume coming in at 2.15 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for MNST. When we apply the Elder Force Index to Monster Beverage Corporation, we are seeing an Elder Force Indicator number of -1049009.5.
Recent Performance
The recent performance of the stock is another area that can tell traders how to proceed. MNST is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 31.64. Moreover, the company’s enterprise value has gone from $35.65B to $28.31B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, MNST made a profit of 659.47 million. Monster Beverage Corporation also saw quarter revenue growth year over year of 10.34%. In addition, the company has operating cash flow of $1.1 billion.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 81.67 compared to the 50-day moving average of 82.38. So, traders might want to tread carefully if they are going to bid.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. MNST currently holds a 9-day RSI of 37.43%, while 100-day RSI stands at 54.73%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. MNST’s 9-day MACD is -0.81 and the company’s 100-day MACD stands at 6.70.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 9.91% by insiders and 69.40% by institutions.
Over the last six months, insiders have sold 10,249 with the most recent transaction from KELLY THOMAS J, EVP Finance Monster Energy Co., with a sell at price 83.53 per share.
Conclusion
Overall, the recommended rating for MNST is Moderate Buy. Currently, the company has 15 analysts watching the stock, and the average quarterly earnings estimate is 0.63. Quarterly revenue estimates are averaging 1.24B with the high estimate reaching 1.31B and the low at 1.11B.
To review, the current 1-year target estimate is sitting at 86.67, while the current price 79.50. Based on this, we expect the stock to rise considering the aforementioned fundamentals.
