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 up 0.3%. By the end of trading, Monster Beverage fell 56 cents (-1.2%) to $46.71 on light volume. Throughout the day, 1.6 million shares of Monster Beverage exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in price between $46.54-$47.84 after having opened the day at $47.37 as compared to the previous trading day's close of $47.27. Other companies within the Food & Beverage industry that declined today were: Bridgford Foods Corporation ( BRID), down 7%, China New Borun Corporation ( BORN), down 6.4%, Synutra International ( SYUT), down 4.1%, and Seneca Foods Corp. Class A ( SENEA), down 3.5%.
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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 $8.24 billion and is part of the consumer goods sector. The company has a P/E ratio of 26.4, above the S&P 500 P/E ratio of 17.7. Shares are down 8.1% year to date as of the close of trading on Thursday. 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Key Technology ( KTEC), up 9.6%, Reeds ( REED), up 7.2%, Tofutti Brands ( TOF), up 6.6%, and Green Mountain Coffee Roasters ( GMCR), up 5.8%, were all gainers within the food & beverage industry with Constellation Brands ( STZ) 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).

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