Highly rated Monster Beverage is on a roll. Earnings for the energy drink maker grew 50% last quarter, up from 36% growth the prior quarter. On Tuesday, Monster stock got an upgrade as its Relative Strength (RS) Rating jumped 17 points, from 61 to 78.
The rating bump puts Monster stock just two points shy of a benchmark for top growth stocks. Market research shows that the best stocks tend to have an RS Rating north of 80 as they begin their biggest price moves. See if Monster Beverage can continue to rebound and hit that benchmark.
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Monster Stock Ratings Shine
Among its other ratings Monster stock boasts a 95 Composite Rating, out of 99. IBD's Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. It also has an excellent 94 Earnings Per Share Rating, reflecting its earnings turnaround this year. Its Accumulation/Distribution Rating is a middling C. About as many funds are buying its shares as selling. But, bullishly, the number of funds owning Monster stock rose from 1,901 in the December-ended quarter to 1,957 in March and 1,979 in June.
Monster stock is building a flat base with a 60.47 buy point. See if it can break out in volume at least 40% higher than normal. It rose from a 35.89 low on March 8, 2022 to an all-time high 60.47 on May 5 this year. It's consolidated since then and traded around 57 Tuesday afternoon.
Monster Beverage posted 50% earnings growth in its most recent report to 39 cents per share, on a 12% increase in sales to $1.86 billion. It posted double-digit sales growth in three of the past four quarters.
Among Top 5 In Group
Monster stock holds the No. 4 rank among its peers in the 19-stock Beverages-Non-Alcoholic industry group. Mexico-based Coke maker FEMSA is No. 1. Coconut beverage maker Vita Coco is No. 2 in the group. And Coca-Cola Europacific, which makes and sells Coke products in Western Europe, is No. 3 among the group's highest-rated stocks.
As you try to find the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's unique RS Rating measures market leadership by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
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