Highly rated energy drink maker Monster Beverage is approaching its all-time high stock price. On Thursday afternoon the IBD SmartSelect Composite Rating for Monster stock climbed from 94 to a near-best 96.
Monster Stock Rises To Top Tier
The upgrade means Monster stock currently tops 96% of all other stocks in terms of key performance metrics and technical strength. History shows the top market performers tend to have a 95 or higher score as they launch their major moves.
Among its other key ratings, Monster Beverage has an 86 Earnings Per Share Rating, out of 99. Monster stock boasts a terrific 98 Relative Strength Rating, showing it outperformed 98% of all stocks on price performance over the past year. Reflecting strong fundamentals, it carries an A SMR Rating (sales + profit margins + return on equity) on an A-to-E scale. One metric that needs improving is its C- Accumulation/Distribution Rating. The C- rating shows that large funds are selling slightly more of its shares than buying.
Corona, Calif.-based Monster Beverage sells its namesake energy drinks as well as fruit juices, smoothies and natural sodas.
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Monster stock is currently forming a flat base, with a 60.47 entry. Look for the stock to break out in heavy trade at least 40% higher than normal. Thursday afternoon, it traded at 59.33, up nearly 1.6% for the day.
Monster Reverses To Big Earnings Gain
The beverage company struggled last year, reporting three quarters of shrinking profits, although the numbers steadily improved until last quarter the company reported a 36% year-over-year Q1 earnings leap to 38 cents per share. That marks three straight quarters of rising EPS performance. Revenue climbed 12% to $1.7 billion, up from 6% growth the prior quarter.
Monster stock holds the No. 5 rank among its peers in the Beverages-Non-Alcoholic industry group. Mexico and Latin America Coca Cola seller Fomento Econ Mexico is the No. 1-ranked stock in the group, one of three Coca Cola-related companies in the group.
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