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

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 lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Monster Beverage fell $1.15 (-2%) to $56.03 on light volume. Throughout the day, two million shares of Monster Beverage exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in price between $55.81-$57.40 after having opened the day at $57.39 as compared to the previous trading day's close of $57.18. Other companies within the Food & Beverage industry that declined today were: Primo Water ( PRMW), down 9.2%, Seneca Foods Corp. Class A ( SENEA), down 6.2%, Calavo Growers ( CVGW), down 4.9%, and Central Garden & Pet Company ( CENT), down 4.8%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

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 $10.31 billion and is part of the consumer goods sector. The company has a P/E ratio of 32.6, 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 24.1% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Monster Beverage a buy, one analyst rates it a sell, and three 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 positive front, Dean Foods Company ( DF), up 5.8%, Tofutti Brands ( TOF), up 5.3%, American Lorain ( ALN), up 5.1%, and S&W Seed Company ( SANW), up 4.3%, were all gainers within the food & beverage industry with Green Mountain Coffee Roasters ( GMCR) being today's featured food & beverage industry leader.

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).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

Brigham Young University Sells Caffeinated Coke Drinks for the First Time Ever

Coca-Cola Is Inching Closer to Monster Beverage Takeover

The Method Behind My Investing Madness: Cramer's 'Mad Money' Recap (Wed 9/6/17)

The Energy Drink You Will Have on Labor Day Has a Shocking Amount of Caffeine

Hottest 3 Things Happening in the Stock Market Right Now