Monster’s Comeback Story Fueled by Big Money

MNST develops, markets, distributes, and sells energy drinks and concentrates. Its three main segments focus on the Monster brand, concentrates, and its subsidiary (American Fruits and Flavors LLC). The company’s brands include Monster Energy, Monster Ultra, Java Monster, Juice Monster, Reign, NOS, Burn, Bang, and Mother, as well as a line of beers and flavored malt beverages (MNST acquired a craft brewer in 2022).

Financially, MNST’s fourth-quarter fiscal 2024 earnings report showed record sales. The company increased its net sales by 4.7% for the quarter, to over $1.8 billion, which it attributed to global growth and new products. Net sales outside the U.S. were more than $711 million, which accounted for more than 39% of total net sales. Plus, the company sports a profit margin over 20% and has minimal debt in addition to planning new flavors for the Brazilian and Australian markets along with expansion in China and India.

Big Money has noticed this turnaround.

It’s no wonder MNST shares are up 15.5% in the last month and 5% for the year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.

Big Money Buying Boosts Monster

Institutional volumes reveal plenty. In the last eight months, MNST has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in MNST shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of staples names are under accumulation right now. But there’s a powerful fundamental story happening with Monster.

Monster Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, MNST has had strong sales and earnings growth:

• 3-year sales growth rate (+10.7%)
• 3-year earnings growth rate (+7%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +10.8%.

Now it makes sense why the stock has been powering to new heights. MNST is once again delivering strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Monster has been a top-rated stock at MAPsignals in the past, and now it’s roaring back again. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times over the last decade, and there could be more growth on the horizon. The blue bars below show when MNST was a top pick…rising with time:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Monster Price Prediction

The MNST rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in MNST at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.