Monster Beverage Corp (MNST): Today's Featured Consumer Goods 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 Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 0.2%. By the end of trading, Monster Beverage fell $1.30 (-2.6%) to $48.15 on light volume. Throughout the day, 1.6 million shares of Monster Beverage exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in price between $47.86-$49.70 after having opened the day at $49.61 as compared to the previous trading day's close of $49.45. Other companies within the Consumer Goods sector that declined today were: iRobot Corporation ( IRBT), down 13.4%, Schweitzer-Mauduit International ( SWM), down 9.8%, Bunge ( BG), down 9.2%, and Central European Distribution ( CEDC), down 8.9%.
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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 $8.28 billion and is part of the food & beverage industry. The company has a P/E ratio of 26.6, above the S&P 500 P/E ratio of 17.7. Shares are down 8.5% 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 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 has had lackluster performance in the stock itself.

On the positive front, True Religion Apparel ( TRLG), up 22.1%, Castle Brands Incorporated ( ROX), up 9.1%, Alliance One International ( AOI), up 8.2%, and Seneca Foods Corp. Class A ( SENEA), up 6.1%, were all gainers within the consumer goods sector with Reynolds American ( RAI) being today's featured consumer goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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