Monster Beverage Corp (MNST): Today's Featured Food & Beverage Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Monster Beverage ( MNST) pushed the Food & Beverage industry higher today making it today's featured food & beverage winner. The industry as a whole closed the day up 0.5%. By the end of trading, Monster Beverage rose $1 (1.8%) to $55.38 on light volume. Throughout the day, 1.1 million shares of Monster Beverage exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in a price between $54.19-$55.73 after having opened the day at $54.50 as compared to the previous trading day's close of $54.38. Other companies within the Food & Beverage industry that increased today were: Synutra International ( SYUT), up 8%, S&W Seed Company ( SANW), up 7.7%, Kraft Foods Group ( KRFT), up 5.7%, and Tofutti Brands ( TOF), up 5.7%.
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Monster Beverage Corporation, through its subsidiaries, develops, markets, sells, and distributes alternative beverage category beverages in the United States and internationally. Monster Beverage has a market cap of $9.65 billion and is part of the consumer goods sector. The company has a P/E ratio of 30.6, equal to the average food & beverage industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 18.7% year to date as of the close of trading on Wednesday. Currently there are four analysts that rate Monster Beverage a buy, one analyst rates it a sell, and two rate it a hold.

TheStreet Ratings rates Monster Beverage as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the negative front, China Marine Food Group ( CMFO), down 7.1%, American Lorain ( ALN), down 6.5%, Bridgford Foods Corporation ( BRID), down 5.3%, and Tianli Agritech ( OINK), down 4.4%, were all laggards within the food & beverage industry with Dr Pepper Snapple Group ( DPS) being today's food & beverage industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the food & beverage industry could consider PowerShares Dynamic Food & Beverage ( PBJ) while those bearish on the food & beverage industry could consider PowerShares DB Agriculture Sht ETN ( ADZ).

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