When Monster Beverage reported third quarter earnings on Nov. 2 it beat estimates and recorded a third straight quarter of outstanding growth. Earnings for the energy drink maker rose 43% last quarter. On Monday the Relative Strength (RS) Rating for Monster stock was upgraded to 76 from 61.
The 76 RS Rating shows that Monster stock beat 76% of all stocks for price appreciation over the past four quarters. Market research shows that stocks that go on to make the biggest gains typically have an RS Rating north of 80 as they launch their biggest runs. See if Monster stock can continue to show renewed price strength and clear that threshold.
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Other Monster Stock Ratings Are Tasty
Meanwhile, among its other ratings Monster stock has a strong 92 Composite Rating, of a best-possible 99. It boasts a 94 Earnings Per Share Rating and a B- Accumulation/Distribution Rating. The B- A/D Rating shows that institutions such as ETFs and insurance company funds are buying more Monster shares than selling.
Additionally, the number of funds holding Monster stock rose from 1,902 last December to 2,033 in September, a bullish indicator.
Corona, Calif.-based Monster Beverage is a leader in the energy drink market. Its brands include its namesake energy drinks, Caffe Monster coffee energy drinks, as well various Monster sports drinks and tea drinks among others.
It's Been A Good Year
Monster stock closed at 47.13 on Oct. 13. It's risen about 20% in roughly three weeks to around 57 Monday afternoon, including a 5.5% surge on Nov. 3, the day after its Q3 earnings report. Sales have grown steadily. Last quarter Monster reported a 43% rise in earnings to 43 cents per share on a 14% increase in sales to $1.86 billion.
The beverage maker is working on a consolidation with a 60.47 entry. See if the stock can break out in volume at least 40% higher than normal.
Monster stock earns the No. 4 rank among its peers in the 19-stock Beverages-Non-Alcoholic industry group, according to IBD Stock Checkup. Vita Coco, a maker of coconut and energy drinks, is also in the group's top 5. As is Mexico-based Coca-Cola Femsa
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength vs. other stocks.
IBD's proprietary Relative Strength Rating identifies price action with a 1 (worst) to 99 (best) score. The grade 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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