It wasn't a monster move, but a rating upgrade for popular energy drink maker Monster Beverage elevated its stock into an elite group. On Friday, the Relative Strength (RS) Rating for Monster stock climbed three points, from 78 to 81.
The 81 RS Rating means that Monster stock has performed in the top 19% of all stocks over the past year.
The RS Rating is a 1-99 score of a stock's 12-month performance. Leading stocks tend to have RS Ratings of 80 before big price runs.
Monster Stock Ratings Roar
Among its other key ratings Monster stock has a near-best 97 Composite Rating, a 94 Earnings Per Share Rating and an A SMR Rating (sales + profit margins + return on equity), on an A-to-E scale with A superb and E dismal.
Its Accumulation/Distribution Rating, a measure of institutional buying, is a decent C+, meaning slightly more mutual funds, ETFs and the like are buying its shares than selling.
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Corona, Calif.-based Monster Beverage makes and markets energy drinks, fruit juices, smoothies and natural sodas.
Monster stock has been on an ascending trajectory for decades. Its stock was selling for as low as $2 a share in mid-2010. It closed above 59 Friday. It's working on a consolidation with a 60.47 entry. See if it can break out in volume at least 40% higher than normal.
Strong Profit, Sales Growth
The beverage maker reported 43% earnings growth in its latest quarter, to 43 cents per share. Revenue grew 14% to $1.86 billion. The prior three quarters it reported EPS growth of -3%, 36% and 50%. Revenue grew 6%, 12% and 12% during that period.
Monster Beverage holds the No. 3 rank among its peers in the Beverages-Non-Alcoholic industry group. Mexico-based Coca-Cola Femsa and Coca-Cola Consolidated are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, a stock's relative price strength vs. other stocks is a good indicator.
IBD's unique Relative Strength Rating tracks share price movement with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database.
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