Monster Stock Buy Hold or Sell Recommendation

MNST
 Stock
  

USD 101.42  1.05  1.02%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Monster Beverage Corp is 'Strong Buy'. Macroaxis provides Monster Beverage buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding MNST positions. The advice algorithm takes into account all of Monster Beverage's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Monster Beverage's buy-and-hold perspective. Additionally, see Monster Beverage Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Monster and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Monster Beverage Corp.

Execute Monster Beverage Buy or Sell Advice

The Monster recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Monster Beverage Corp. Macroaxis does not own or have any residual interests in Monster Beverage Corp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Monster Beverage's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Monster BeverageBuy Monster Beverage
Strong Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Inapplicable
Details

Reporting Quality (M-Score)

Details
For the selected time horizon Monster Beverage Corp has a Risk Adjusted Performance of 0.1876, Jensen Alpha of 0.1514, Total Risk Alpha of 0.1287, Sortino Ratio of 0.0879 and Treynor Ratio of 0.2404
Macroaxis provides trade recommendations on Monster Beverage Corp to complement and cross-verify current analyst consensus on Monster Beverage. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Monster Beverage Corp is not overpriced, please verify all Monster Beverage Corp fundamentals, including its total debt, and the relationship between the revenue and earnings per share . Given that Monster Beverage Corp has a price to earning of 44.75 X, we recommend you to check Monster Beverage market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Monster Beverage Trading Alerts and Improvement Suggestions

Monster Beverage has a strong financial position based on the latest SEC filings
About 69.0% of the company shares are owned by institutional investors
Latest headline from MacroaxisInsider: Acquisition by Mark Vidergauz of 1987 shares of Monster Beverage subject to Rule 16b-3

Monster Beverage Returns Distribution Density

The distribution of Monster Beverage's historical returns is an attempt to chart the uncertainty of Monster Beverage's future price movements. The chart of the probability distribution of Monster Beverage stock daily returns describes the distribution of returns around its average expected value. We use Monster Beverage Corp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Monster Beverage returns is essential to provide solid investment advice for Monster Beverage.
Mean Return0.23Value At Risk-2.48
Potential Upside2.90Standard Deviation1.81
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Monster Beverage historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Monster Beverage Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(91.71 M)(70.63 M)(109.16 M)(66.28 M)(56.12 M)(60.56 M)
Depreciation Amortization and Accretion48.89 M56.98 M64.81 M60.97 M54.26 M51.91 M
Net Cash Flow or Change in Cash and Cash Equivalents151.04 M108.89 M160.44 M382.46 M146.05 M128.01 M
Issuance Purchase of Equity Shares(308.55 M)(1.31 B)(614.94 M)(522.98 M)31.89 M34.41 M
Issuance Repayment of Debt Securities(2.58 M)(1.89 M)(13.57 M)(3.09 M)2.93 M3.16 M
Net Cash Flow from Financing(311.13 M)(1.32 B)(628.51 M)(526.07 M)34.82 M37.57 M
Net Cash Flow from Investing(531.54 M)272.96 M(326.72 M)(472.49 M)(992.02 M)(1.02 B)
Net Cash Flow Investment Acquisitions and Disposals(438.63 M)355.4 M(216.3 M)(379.79 M)(924.54 M)(948.87 M)
Net Cash Flow from Operations987.73 M1.16 B1.11 B1.36 B1.16 B1.25 B
Effect of Exchange Rate Changes on Cash5.99 M(9.84 M)1.91 M16.85 M(52.49 M)(53.87 M)
Share Based Compensation52.28 M57.11 M63.36 M70.29 M70.48 M60.43 M

Monster Beverage Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Monster Beverage or Beverages sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Monster Beverage's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Monster stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.15
β
Beta against NYSE Composite0.90
σ
Overall volatility
1.82
Ir
Information ratio 0.08

Monster Beverage Volatility Alert

Monster Beverage Corp has relatively low volatility with skewness of 0.75 and kurtosis of 3.09. However, we advise all investors to independently investigate Monster Beverage Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Monster Beverage's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Monster Beverage's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Monster Beverage Implied Volatility

Monster Beverage's implied volatility exposes the market's sentiment of Monster Beverage Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Monster Beverage's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Monster Beverage stock will not fluctuate a lot when Monster Beverage's options are near their expiration.

Monster Beverage Fundamentals Vs Peers

Comparing Monster Beverage's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Monster Beverage's direct or indirect competition across all of the common fundamentals between Monster Beverage and the related equities. This way, we can detect undervalued stocks with similar characteristics as Monster Beverage or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Monster Beverage's fundamental indicators could also be used in its relative valuation, which is a method of valuing Monster Beverage by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Monster Beverage to competition
FundamentalsMonster BeveragePeer Average
Return On Equity0.19 %(0.31) %
Return On Asset0.13 %(0.14) %
Profit Margin0.19 %(1.27) %
Operating Margin0.26 %(5.51) %
Current Valuation51.63 B16.62 B
Shares Outstanding521.74 M571.82 M
Shares Owned by Insiders29.35 %10.09 %
Shares Owned by Institutions68.55 %39.21 %
Number of Shares Shorted4.33 M4.71 M
Price to Earning44.75 X28.72 X
Price to Book7.96 X9.51 X
Price to Sales8.57 X11.42 X
Revenue5.54 B9.43 B
Gross Profit3.11 B27.38 B
EBITDA1.85 B3.9 B
Net Income1.38 B570.98 M
Cash and Equivalents2.65 B2.7 B
Cash per Share5.08 X5.01 X
Total Debt37.26 M5.32 B
Debt to Equity0.005 %48.70 %
Current Ratio4.19 X2.16 X
Book Value Per Share13.01 X1.93 K
Cash Flow from Operations1.16 B971.22 M
Short Ratio1.63 X4.00 X
Earnings Per Share2.23 X3.12 X
Price to Earnings To Growth3.53 X4.89 X
Target Price103.73
Number of Employees3.46 K18.84 K
Beta0.9-0.15
Market Capitalization53.31 B19.03 B
Total Asset7.8 B29.47 B
Retained Earnings5.42 B9.33 B
Working Capital17.2 M1.48 B
   Acquisition by Mark Vidergauz of 1987 shares of Monster Beverage subject to Rule 16b-3 [view details]

Monster Beverage Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Monster . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Monster Beverage Buy or Sell Advice

When is the right time to buy or sell Monster Beverage Corp? Buying financial instruments such as Monster Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables540.33 M666.01 M896.66 M967.45 M
Inventories360.73 M333.08 M593.36 M640.2 M

Use Investing Ideas to Build Portfolios

In addition to having Monster Beverage in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Investor Favorites Thematic Idea Now

Investor Favorites
Investor Favorites Theme
Macroaxis most traded equities with largest long positions over the last 2 years. The Investor Favorites theme has 21 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Investor Favorites Theme or any other thematic opportunities.
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Additionally, see Monster Beverage Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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Is Monster Beverage's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Monster Beverage. If investors know Monster will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Monster Beverage listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.048) 
Market Capitalization
53.3 B
Quarterly Revenue Growth YOY
0.15
Return On Assets
0.13
Return On Equity
0.19
The market value of Monster Beverage Corp is measured differently than its book value, which is the value of Monster that is recorded on the company's balance sheet. Investors also form their own opinion of Monster Beverage's value that differs from its market value or its book value, called intrinsic value, which is Monster Beverage's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Monster Beverage's market value can be influenced by many factors that don't directly affect Monster Beverage's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Monster Beverage's value and its price as these two are different measures arrived at by different means. Investors typically determine Monster Beverage value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Monster Beverage's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.