Ultime notizie per Monster Beverage (NASDAQ:MNST) Azioni

Monster Beverage

Monster Beverage is a leader in the energy drink subsegment of the nonalcoholic beverage market, generating two thirds of revenue in the US and Canada. The well-known Monster trademark includes brands such as Monster Energy, Monster Ultra, Java Monster, and Juice Monster. The firm also owns other energy drink brands, such as Reign, NOS, Burn, Bang and Mother, and brews and distributes beers and flavored malt beverages following the acquisition of a craft brewer in 2022. Monster controls branding and innovation but outsources beverage manufacturing and packaging to copackers and finished goods distribution to bottlers in the global Coca-Cola system (pursuant to a 20-year agreement inked in 2015). Coke is the largest shareholder of Monster with a 19.5% stake.

Monster Beverage Corporation - Common Stock

Monster Beverage Corp

MONSTER BEVERAGE ORD

WIIM

MNST

Monster Beverage shares are trading higher after TD Cowen raised its price target on the stock from $50 to $55.

TD Cowen maintains Monster Beverage (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>) with a Hold and raises the price target from $50 to $55.

News

Price Target

Analyst Ratings

TD Cowen Maintains Hold on Monster Beverage, Raises Price Target to $55

The S&amp;P 500 index surged past the 6,000-point milestone, setting fresh record highs, and small-cap stocks are poised for their best weekly performance since April 2024 as investor optimism surrounding the &#8220;Trump trade&#8221; continued to fuel a strong risk-on sentiment by the end of a <a href="https://www.benzinga.com/markets">wild week in the market</a>. 
All major U.S. indices posted modest gains in midday trading, with the Dow Jones Industrial Average leading slightly, soaring beyond the 44,000-point mark. The blue-chip index is set for its best weekly performance in over a year.
Friday's rise in the S&amp;P 500 was powered by the utilities and real estate sectors, which had lagged post-election. Tech stocks took a breather following Thursday's rally.
Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) surged 7%, pushing its weekly gains beyond 27% and propelling its market cap past $1 trillion. 
This move now places every "Magnificent Seven" tech stock in the trillion-dollar club, with the group's combined market cap topping $17 trillion.
Treasury yields held steady, while the dollar strengthened in response to the Federal Reserve's Thursday 25-basis-point rate <a href="https://www.benzinga.com/economics/macro-economic-events/24/11/41823887/powell-dismisses-talk-of-resignation-after-trump-victory-says-policy-is-still-res">cut to 4.5%-4.75%</a>.
Gold softened, eyeing its worst week since late May, as both silver and oil dropped over 2% on the day. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) edged up 0.8%, extending its weekly gains to over 11%, marking its best week since July.
<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>43,993.21</td>
<td>0.6%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,998.81</td>
<td>0.4%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,389.50</td>
<td>0.3%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>21,124.53</td>
<td>0.1%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:05 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent110824&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.4% to $598.17.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 0.6% to $439.89.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) inched 0.1% higher to $514.10.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 0.3% to $237.08.</li>
<li>The Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) outperformed, rising 1.8%. The Materials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>) lagged, down 1%.</li>
</ul>
<h3 class="wp-block-heading">Friday&#8217;s Stock Movers</h3>
Stocks reacting to earnings reports were: 
<ul>
<li>NRG Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>), up 0.5%, </li>
<li>Ubiquiti Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UI#NYSE">UI</a>), up 21%</li>
<li>Arista Networks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NASDAQ">ANET</a>), down 7%, </li>
<li>Airbnb Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ABNB#NASDAQ">ABNB</a>), down 7.5%, </li>
<li>Motorola Solutions Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSI#NYSE">MSI</a>), up 6.7%, </li>
<li>EOG Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EOG#NYSE">EOG</a>), up 5.9%, </li>
<li>Fortinet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTNT#NASDAQ">FTNT</a>), up over 9%, </li>
<li>The Trade Desk Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTD#NASDAQ">TTD</a>), down over 4%, </li>
<li>Monster Beverage Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>), up by 0.5%, </li>
<li>Axon Enterprise Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXON#NASDAQ">AXON</a>), up 25%, </li>
<li>Block Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SQ#NYSE">SQ</a>), down 4.4%, </li>
<li>Cloudfare Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NET#NYSE">NET</a>), down 6.2%, </li>
<li>Corpay Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPAY#NYSE">CPAY</a>), up 6%, </li>
<li>Expedia Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EXPE#NYSE">EXPE</a>), up over 6%, </li>
<li>Toast Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOST#NYSE">TOST</a>), up 13%, </li>
<li>Pinterest Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PINS#NYSE">PINS</a>), down 17%, </li>
<li>DraftKings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DKNG#NASDAQ">DKNG</a>), up 1.7%, </li>
<li>Insulet Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PODD#NASDAQ">PODD</a>), up 12%, </li>
<li>News Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NWS#NASDAQ">NWS</a>), up 3.6%, </li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/11/41848568/us-consumer-sentiment-rises-more-than-predicted-to-6-month-highs-inflation-expectations-hit-4-year-low">US Consumer Sentiment Rises More Than Predicted To 6-Month Highs, Inflation Expectations Hit 4-Year Low</a></li>
</ul>
Illustration created using artificial intelligence via Midjourney.

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Markets

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$BTC

ABNB

ANET

AXON

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SPDR Dow Jones Industrial Average ETF Trust

DKNG

EXPE

FTNT

PINS

PODD

TOST

TSLA

S&P 500 Breaks 6,000 Points, Dow Soars Above 44,000, Small Caps Eye Strongest Week In 4 Years, Tesla Hits $1 Trillion: What's Driving Markets Friday?

UBS analyst Peter Grom maintains Monster Beverage (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>) with a Neutral and raises the price target from $55 to $57.

UBS Maintains Neutral on Monster Beverage, Raises Price Target to $57

Monster Beverage shares are trading lower after the company reported worse-than-expected Q3 financial results.

Monster Beverage (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>) reported quarterly earnings of $0.38 per share which missed the analyst consensus estimate of $0.43 by 11.63 percent. The company reported quarterly sales of $1.88 billion which missed the analyst consensus estimate of $1.91 billion by 1.56 percent. This is a 1.29 percent increase over sales of $1.86 billion the same period last year.

Earnings

Earnings Misses

Monster Beverage Q3 2024 Adj EPS $0.38 Misses $0.43 Estimate, Sales $1.88B Miss $1.91B Estimate

Wells Fargo analyst Chris Carey maintains Monster Beverage (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>) with a Overweight and raises the price target from $57 to $60.

Wells Fargo Maintains Overweight on Monster Beverage, Raises Price Target to $60

JP Morgan analyst Andrea Teixeira maintains Monster Beverage (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>) with a Neutral and lowers the price target from $50 to $49.

JP Morgan Maintains Neutral on Monster Beverage, Lowers Price Target to $49

Monster Beverage's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NYSE">MNST</a>) short percent of float has fallen 6.78% since its last report. The company recently reported that it has 22.91 million shares sold short, which is 3.3% of all regular shares that are available for trading. Based on its trading volume, it would take traders 3.46 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Monster Beverage Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1729023317_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Monster Beverage has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Monster Beverage's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Monster Beverage's peer group average for short interest as a percentage of float is 7.26%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

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How Is The Market Feeling About Monster Beverage?

B of A Securities analyst Peter Galbo maintains Monster Beverage (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>) with a Buy and raises the price target from $56 to $57.

B of A Securities Maintains Buy on Monster Beverage, Raises Price Target to $57

If you could go back in time to January 1, 2000, and tell your past self to make just one investment, what would it be?
Maybe&nbsp;Apple Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), which has sold 1.5 billion iPhones since 2007 and reported a $21.45 billion profit last quarter?
Or&nbsp;Tesla Inc.&nbsp;(NASDAQ:TSLA, which went from selling just 937 cars in 2009 to over 1.8 million last year?
Some savvy income investors might consider&nbsp;Altria Group Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MO#NYSE">MO</a>). The tobacco giant, formerly Phillip Morris International Inc., has grown its dividends by over 700% since the early 2000s. In fact, Altria was the most successful stock of the 20th century, turning every $1 invested into over $6,000.
But that was the 20th century. Since the year 2000, one little-known company has left these Wall Street darlings in the dust.
How an Energy Drink Company Thrashed Apple's, Tesla's, and Nvidia's Returns
Monster Beverage Corp.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>) is a company no one ever described as changing the world. It's not putting an iPhone into every third human's hand or solving climate change.
Yet this energy drink company returned over 140,000% from 2000 to 2024 so far — enough to turn every $1 invested into $1,400 and change.
Why was Monster Beverage able to dramatically outperform these world-changing companies?
Part of the reason comes from its size. Monster Beverage recorded $92 million in revenue in 2002 while Apple reported $5.7 billion. A smaller company can grow revenue—and ultimately its earnings and share price—much faster than a company that's already a behemoth.
But there's bigger factor at play. Apple spent $446 million on research and development in 2002 to stay ahead of its competitors and maintain its existing operations. By 2022, its annual operating costs had reached $274 billion.
To keep the lights on, Apple had to spend $274 billion, or the company could no longer make and sell products. By contrast, Monster Beverage spent just $4.6 billion on operating costs in 2022.
It turns out that an energy-drink business is a lot less capital-intensive than a tech business—and this difference, compounded over the years, means that Monster Beverage had hundreds of billions of dollars more to plow into growing its business by expanding operations and claiming greater market share.
A similar dynamic benefitted&nbsp;Coca-Cola Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>). If you've ever wondered why the ticker symbol is KO rather than CO or CC, it's because Wall Street settled on an acronym for "knock out." The sentiment was that investing in Coca-Cola was a slam dunk because the invaluable brand name commanded loyalty from hundreds of millions around the world. How could investors go wrong?
Sure enough, $100 invested in Coca-Cola at the time of its 1919 initial public offering (IPO) would have turned into $1.25 million a century later. A lot of factors are behind that performance, but it's not a coincidence that Coca-Cola had to pay just $24 billion in operating costs in 2020, or less than 10% of what Apple paid.
So, while tech stocks understandably get most of the mainstream media's attention, investors should never discount the power of companies that can grow earnings each year without massive research and development budgets. As they say on Wall Street, "boring can be beautiful" when it comes to markets—and Monster Beverage proves it.
Get Trade Alerts From Nic, an Options Pro Who Gets Real Results with 20 years of experience. <a href="https://www.benzinga.com/premium/ideas/options-moneyline-2/?t=mo7op1spmireml25&amp;utm_source=RD-1014">Click here now for more details.</a>
Image from Shutterstock

Opinion

AAPL

The One Stock Beating Apple, Nvidia, And Tesla For 24 Years Running

Monster Beverage (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>) has outperformed the market over the past 10 years by 1.51% on an annualized basis producing an average annual return of 12.97%. Currently, Monster Beverage has a market capitalization of $51.69 billion. 
Buying $1000 In MNST: If an investor had bought $1000 of MNST stock 10 years ago, it would be worth $3,388.44 today based on a price of $52.77 for MNST at the time of writing.
<h3>Monster Beverage's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727726414_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$1000 Invested In Monster Beverage 10 Years Ago Would Be Worth This Much Today

As of Sept. 19, 2024, three stocks in the consumer staples sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock&#8217;s strength on days when prices go up to its strength on days when prices go down. When compared to a stock&#8217;s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the <a href="https://www.benzinga.com/topic/rsi">RSI is above 70</a>, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>. 
Here's the latest list of major overbought players in this sector.
<h3 class="wp-block-heading">Instacart (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CART#NASDAQ">CART</a>)</h3>
<ul>
<li>On Sept. 5, Cantor Fitzgerald analyst Deepak Mathivanan initiated coverage on CART with an Overweight rating and announced a price target of $45.. The company's stock gained around 19% over the past month and has a <a href="https://www.benzinga.com/quote/CART">52-week high of $42.95</a>.</li>
<li>RSI Value: 76.17&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li>
<li>CART Price Action: Shares of Instacart gained 5.3% to close at $39.87 on Wednesday.</li>
</ul>
<h3 class="wp-block-heading">US Foods Holding Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USFD#NYSE">USFD</a>)</h3>
<ul>
<li>On Sept. 18, Wells Fargo analyst Edward Kelly maintained US Foods with an Overweight and raised the price target from $66 to $75. The company's stock gained around 5% over the past five days and <a href="https://www.benzinga.com/quote/USFD">has a 52-week high</a> of $62.34.</li>
<li>RSI Value: 73.11</li>
<li>USFD Price Action: Shares of US Foods fell 0.4% to close at $60.91 on Wednesday.</li>
</ul>
<h3 class="wp-block-heading">Monster Beverage Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>)</h3>
<ul>
<li>On Aug. 19, Monster Beverage said its board authorized a new share repurchase program of up to $500 million of the company's outstanding common stock. As of Aug. 19, there were no authorized share repurchases remaining under the company's previously authorized buyback program. The company's stock gained around 12% over the past month and has a <a href="https://www.benzinga.com/quote/MNST">52-week high</a> of $61.22.</li>
<li>RSI Value: 71.75</li>
<li>MNST Price Action: Shares of Monster Beverage rose 2.5% to close at $52.35 on Wednesday. </li>
</ul>
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/09/40925678/fedex-gears-up-for-q1-print-here-are-the-recent-forecast-changes-from-wall-streets-most-accurate-an">FedEx Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street&#8217;s Most Accurate Analysts</a></li>
</ul>

Pre-Market Outlook

CART

USFD

Top 3 Defensive Stocks You May Want To Dump In September

Monster Beverage (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>) has outperformed the market over the past 10 years by 2.19% on an annualized basis producing an average annual return of 12.65%. Currently, Monster Beverage has a market capitalization of $49.29 billion. 
Buying $1000 In MNST: If an investor had bought $1000 of MNST stock 10 years ago, it would be worth $3,313.00 today based on a price of $50.32 for MNST at the time of writing.
<h3>Monster Beverage's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1726065016_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$1000 Invested In This Stock 10 Years Ago Would Be Worth $3,300 Today

Monster Beverage Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>) shares are trading higher in Monday&#8217;s after-hours session after the company announced a new <a href="https://www.benzinga.com/pressreleases/24/08/g40448947/monster-beverage-board-authorizes-new-500-0-million-share-repurchase-program">$500 million buyback program</a>.
What Happened: After the market close on Monday, Monster Beverage said its board authorized a new share repurchase program of up to $500 million&nbsp;of the company&#8217;s outstanding common stock.&nbsp;
As of Aug. 19, there were no authorized share repurchases remaining under the company&#8217;s previously authorized buyback program. 
The new share repurchase program comes less than two weeks after Monster Beverage shares dropped on worse-than-expected <a href="https://www.benzinga.com/news/earnings/24/08/40252293/monster-beverage-analysts-cut-their-forecasts-following-weak-q2-results">earnings results for the second quarter</a>. 
Monster missed analyst estimates on the top and bottom lines as the energy drink category experienced lower growth rates&nbsp;in the U.S. The company noted at the time that it repurchased 2.2 million shares in the second quarter at an average purchase price of $49.55 per share. 
MNST Price Action: <a href="http://benzinga.com/quote/mnst">Monster Beverage shares</a> are down approximately 19% year-to-date. The stock initially traded up to around the $47.50 level on the buyback announcement before pulling back slightly. Monster shares were up 0.75% after hours at $46.95 at the time of publication, per <a href="http://pro.benzinga.com">Benzinga Pro</a>.
Read Next: <a href="https://www.benzinga.com/trading-ideas/previews/24/08/40447261/toll-brothers-q3-earnings-preview-will-kamala-harris-3-million-homes-plan-boost-homebuilde"> • Toll Brothers Q3 Earnings Preview: Will Kamala Harris&#8217; 3 Million Homes Plan Boost Homebuilder Stocks?</a>
Photo: Shutterstock.

Buybacks

After-Hours Center

Monster Beverage Stock Pops After The Bell: What's Going On?

Monster Beverage shares are trading higher after the company announced that its board authorized a $500 million share buyback program.

Monster Beverage Board Authorizes $500M Share Buyback Program

Celsius Holdings, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/celh#NASDAQ">CELH</a>) has seen its shares dive as much as 58.5% in the past three months, lagging the industry&#39;s drop of 4.9%. Additionally, the energy drinks company trailed the broader Zacks Consumer Staples sector and the S&amp;P 500&#39;s respective growth of 0.2% and 1.8% during the same period.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/09/74163.jpg?v=1979021079" />
Image Source: Zacks Investment Research
Once hailed for delivering consecutive quarters of 100% growth, Celsius Holdings is now grappling with decelerating revenue improvement and intensifying competition in the energy drinks market. Closing the trading session at $38.03 on Aug 12, the stock hovers close to its recently hit 52-week low of $36.17. Furthermore, CELH is trading below its 50 and 200-day moving average, indicating potential weakness in the stock&#39;s momentum.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/1c/74164.jpg?v=848899823" />
Image Source: Zacks Investment Research
<h3>Understanding the Sharp Pullback</h3>
The biggest concern surrounding Celsius Holdings is the evident deceleration in its revenue growth and diminishing market share. The company&#39;s 23.4% year-over-year revenue increase in the second quarter of 2024, though objectively solid, falls short of the high expectations set by its earlier extraordinary growth figures. Additionally, in the four-week period ended Jul 14, Celsius Holdings held an 11% share in the MULOC category, marking a 50-basis point contraction from the previous quarter, raising alarms about the company&#39;s ability to sustain its competitive edge in a saturated market.
Despite having a strong positioning in the energy drinks market, Celsius Holdings faces broader industry challenges, including energy-drink fatigue, rising health concerns and a general decline in discretionary spending. The market is becoming increasingly crowded, with new entrants vying for consumer attention and market share. Consequently, the company is finding it increasingly difficult to differentiate itself from competitors like Monster Beverage (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mnst#NASDAQ">MNST</a>) and Red Bull, who have long dominated the market.
Moreover, CELH&#39;s heavy reliance on distribution partnerships presents another potential vulnerability. While the recent partnership with PepsiCo (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pep#NASDAQ">PEP</a>) has spurred growth, depending too much on a single partner can be problematic. PepsiCo&#39;s push for better inventory management has led to reduced sales growth for Celsius Holdings, revealing the vulnerability of this partnership. As PepsiCo seeks more favorable terms and efficient operations, CELH may struggle to maintain its growth without relying so heavily on PepsiCo&#39;s distribution network.
Industry experts have noted a downside in Celsius Holdings&#39; limited international footprint, with just about 5% of its revenues coming from outside North America. The slow international expansion and reliance on the North American market expose the company to heightened risks, particularly if domestic growth stalls or faces increased competition.
Margins are another area of concern. Despite an improvement in gross margins during the second quarter, CELH has adopted a cautious outlook for the rest of the year. This caution reflects worries about rising raw material costs, such as aluminum and fuel, and the potential impact of a more extensive promotional incentive calendar. Investors might view this as an indication of possible margin compression in the future.
<h3>Estimates Lose Sheen</h3>
Celsius Holdings appears in a troubled spot. The Zacks Consensus Estimate for the current and next fiscal year earnings per share has moved downward by 2.9% and 6% to $1.02 and $1.26, respectively, over the past seven days. This downward adjustment reflects a negative sentiment among analysts and suggests potential challenges in achieving projected profitability.
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Image Source: Zacks Investment Research
<h3>Valuation Concerns</h3>
Celsius Holdings&#39; valuation remains a point of contention. Despite the pullback in the stock price, CELH is trading at a premium relative to industry peers, which seems increasingly difficult to justify given the slowdown in growth and market share losses. The company is currently trading at a forward 12-month P/E of 32.65, much higher than the industry&#39;s 16.05.
<h3>Can Growth Strategies Turn the Tide?</h3>
Celsius Holdings remains focused on undertaking strategic initiatives to fuel growth and expand market share. The company&#39;s ongoing investments in innovation, branding and marketing reflect its dedication to enhancing its competitive position. By continually introducing new flavors and formulations, Celsius Holdings is aligning with evolving consumer preferences to regain its market share.
Another silver lining for CELH is that it has secured shelf space in major retail chains, convenience stores and online platforms, significantly enhancing its market reach. Partnerships with leading distributors and retailers, such as Walmart, Target and Amazon, have provided a strong platform.
Celsius is also actively working to increase its footprint in the energy drinks sector. The company&#39;s efforts to diversify its product lineup and enter new markets demonstrate a proactive approach to expanding its consumer base. This strategic expansion could open up additional revenue streams and mitigate reliance on the North American market.
These growth strategies and proactive measures are designed to help Celsius Holdings overcome current challenges and capitalize on potential opportunities.
<h3>What&#39;s Next for Investors?</h3>
While Celsius Holdings continues to push forward with innovation and strategic initiatives to bolster its market position, the challenges it faces cannot be overlooked. The slowdown in revenue growth, intensifying competition, dependency on key partnerships and broader economic uncertainties are significant headwinds that may weigh on future performance. Coupled with a stretched valuation, these factors suggest that a more cautious approach may be warranted. Investors who have enjoyed the stock&#39;s past gains might find this an opportune moment to reassess their positions, especially given the potential for further volatility.
Celsius Holdings currently carries a Zacks Rank #4 (Sell).
<a href="https://www.zacks.com/stock/news/2321374/celsius-holdings-celh-trading-near-52-week-low-how-to-play-ahead?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2321374">To read this article on Zacks.com click here.</a>

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