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Monster Beverage (MNST -0.59%) posted revenue growth of 10.7% in 2025. But, in the first half of 2026, sales rose 23.3%, as the company benefits from strong execution in one of the broader beverage sector's best-performing sub-categories. But, should you buy the stock now that it has pulled back from its all-time highs or avoid it?

Monster Beverage is growing strongly right now Monster Beverage's growth has clearly kicked into high gear again, with sales growth so far in 2026 running at more than double the rate achieved in 2025. That said, investors are aware of the company's strong growth, as evidenced by its price-to-sales and price-to-earnings ratios, both of which are above their five-year averages. If you have a value bias, you probably won't find Monster Beverage attractive at its current price.

Image source: Getty Images.

However, there's a caveat for growth investors. That's because the stock is in the middle of a drawdown, with the price more than 12% below its recent all-time high, as of this writing. Even the most reliable growth stocks don't rise in a straight line; they rise in a jagged pattern. In fact, Monster Beverage has experienced many large drawdowns since it started selling its namesake energy drink, with more than a dozen 20% sell offs since the beverage was launched in 2002 (some of the drawdowns were materially larger than 20%).

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With the stock down a bit more than 10% from its all-time high, growth investors might want to add Monster Beverage to their watch list. What's notable here is that the P/S ratio is around 9.4x, which is only a touch higher than the five-year average P/S ratio of 8.4x. And the P/E ratio of 40.5x is only a touch higher than its five-year average of 33.7x. So while Monster looks expensive, it is getting closer to what some might consider a fair price. And for a growth stock, that could represent a good entry point.

Avoid Monster Beverage, but don't ignore it It probably wouldn't be a mistake to buy Monster Beverage at its current valuation. History suggests that the company's strong growth will eventually lead the stock higher again. However, history also suggests that buying after a 20% drawdown would be a better decision. And since the stock isn't quite there yet, keeping this one on the wish list, for now, looks like the best option.

On August 25, 2026, we conducted a DCF analysis for Monster Beverage Corp MNST , a company that has shown impressive price performance recently. Over the past year, the stock has surged by 55.7%, reflecting strong investor interest. However, our valuation models indicate a different story regarding its current price.

DCF Earnings-based intrinsic value of $23.04 vs current price of $48.92 (margin of safety: -112.3%) DCF FCF-based intrinsic value of $20.76 vs current price (second opinion confirms overvaluation) GF Score™ of 96/100 suggests high reliability of inputs, but low predictability rank (2/5 stars) raises concerns about DCF accuracy What Is MNST Worth? DCF Earnings-Based Model Our DCF analysis utilizes a two-stage model to estimate the intrinsic value of MNST based on its earnings. The first stage accounts for a high growth rate in earnings over the next ten years, while the second stage reflects a more modest growth rate thereafter.

Parameter Value Current EPS (TTM, excl. non-recurring) $1.12 10-Year Growth Rate 13.7% 10-Year Treasury Rate 4.67% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we project that EPS will grow at 13.7% annually for the next ten years, discounted at a rate of 11%. The value derived from this growth stage is $12.87 per share. In the second stage, we assume a terminal growth rate of 4% for the following ten years, which results in a terminal stage value of $10.17 per share.

Stage Description Value Growth Stage (Years 1-10) EPS growing at 13.7%, discounted at 11% $12.87 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $10.17 Intrinsic Value Growth + Terminal $23.04 With the current price at $48.92, the stock appears significantly overvalued, presenting a margin of safety of -112.3%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For a detailed breakdown, you can visit the MNST DCF Calculator.

What Does the Free Cash Flow DCF Say? The DCF model based on free cash flow yields an intrinsic value of $20.76 per share. This value aligns with the earnings-based model, reinforcing the conclusion that MNST is significantly overvalued, with a margin of safety of -135.7%. Both models indicate a consensus on overvaluation, although the FCF model provides an additional perspective.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for MNST stands at $39.86, offering a third valuation perspective. This proprietary measure from GuruFocus is derived from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings, DCF FCF, and GF Value™—agree that MNST is currently overvalued. For more insights, check the GF Value™.

What Does MNST's GF Score™ Tell Us? The GF Score™ evaluates a company's financial strength, profitability, growth potential, and valuation metrics. MNST's score of 96/100 indicates a strong overall performance, but its predictability rank of 2/5 stars suggests that the DCF model may not be as reliable for this stock. Below is a summary of MNST's GF Score™ metrics:

Metric Rating GF Score™ 96/100 Financial Strength 10/10 Profitability 10/10 Growth 10/10 Valuation 6/10 Momentum 6/10 Given the low predictability rating, the reliability of the DCF estimates is diminished. For further details, visit the MNST stock page.

Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to the assumptions regarding growth rates and discount rates. Stocks with low predictability ratings, such as MNST, tend to produce less reliable DCF estimates. The terminal growth rate of 4% used in this analysis is a simplifying assumption that may not reflect future realities.

What This Means for Investors In summary, all three valuation models—DCF earnings, DCF FCF, and GF Value™—indicate that Monster Beverage Corp is significantly overvalued at its current price of $48.92. The consensus suggests caution for potential investors. Additionally, the guru ownership signal shows that while 11 gurus currently hold the stock, 5 have added to their positions while 6 have trimmed, indicating mixed sentiment among knowledgeable investors. Insider activity also reflects a net selling trend over the past 12 months, which could be a red flag. For a comprehensive view of the valuation, explore the MNST DCF Calculator.

Frequently Asked Questions What is MNST's intrinsic value based on DCF?

According to our analysis, the earnings-based intrinsic value is $23.04, while the FCF-based intrinsic value is $20.76.

Is MNST overvalued or undervalued?

Both the DCF and GF Value™ models indicate that MNST is overvalued at its current price.

How reliable is the DCF model for MNST?

The predictability rank of 2/5 suggests that the DCF model may not be very reliable for MNST.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Monster Beverage (MNST +0.34%) announced on July 8 that it would conduct a 2-for-1 stock split on Aug. 11, and the stock price has climbed about 5% since the split.

While stock splits can generate a lot of buzz, Monster has conducted them for several years, making them more common for the energy drink beverage maker. Outside of this 2026 split, Monster most recently conducted a 2-for-1 split in 2023, an 8-for-1 split in 2020, and a 3-for-1 split in 2016.

The recent split may have given the stock price some short-term momentum, but that could quickly fade. Here's what I'd consider before investing in or buying more Monster shares for the long term.

A dollar sign with coin stacks next to it with a sun in the background.

What to do with Monster Beverage stock For more conservative investors, Monster will seem a little rich, with its forward price-to-earnings (P/E) multiple of 41.6. In comparison, the energy drink maker Celsius Holdings (CELH -0.03%) has a forward P/E of 22.6. Speaking of Celsius, Monster is also in a competitive area with limited shelf space. And as an investment, the company doesn't pay a dividend, so investors are entirely reliant on Monster's stock price appreciation.

That said, one thing I like about Monster is that it continues to see sales growth from its core product line. For the second quarter of 2026, sales from its core energy drink segment climbed 21.6% to $2.36 billion, accounting for the bulk of the company's $2.54 billion in total revenue. Some may view it as a concentration risk that so much revenue is derived from one segment. I view it more as Monster is still able to increase sales of its best sellers, has pricing power, and has superb brand loyalty.

In addition, Monster also has some promising revenue growth areas. One is through international sales, where, in the second quarter of 2026, the energy drink maker reported that net sales outside the United States increased by 34.6% to $1.1 billion. That accounted for 46% of total sales for the quarter. The alcohol segment, while currently showing sluggish results, may also offer long-term revenue growth opportunities. Sales for its alcohol segment declined 15.2% in the second quarter to $32.2 million, which is a relatively small figure compared to Monster's $2.54 billion in total revenue for the quarter.

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But according to InsightAce Analytic, the global alcoholic energy drink market is expected to more than double in value from $31.8 billion in 2025 to $67.9 billion by 2035. Monster can keep tinkering with its alcohol segment while it gathers more data on what works, eventually expanding that division if demand picks up.

Taking everything into consideration, investors are expecting Monster to deliver significant earnings growth, giving it a lot to live up to. But for more aggressive investors who can handle the risk, Monster, with its dominant branding in the energy drink space, accelerating revenue growth from its core products, and further expansion opportunities internationally and through its alcohol segment, is a stock I would consider adding to a long-term portfolio.

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Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the stock market’s ups and downs, many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions.

Investors seeking defensive companies that pay substantial dividends are drawn to the Dividend Aristocrats, and with good reason. The 69 companies that made the cut for the 2026 S&P 500 Dividend Aristocrats list have increased their dividends (not just maintained the same level) for 25 consecutive years. But the requirements go even further, with the following attributes also mandatory for membership on the Dividend Aristocrats list:

Companies must be worth at least $3 billion for each quarterly rebalancing. Their average daily volume must be at least $5 million in transactions for every trailing three-month period at every quarterly rebalancing date. They must be a member of the S&P 500. With the stock market enjoying yet another positive year, albeit a very volatile one, we screened the 2026 Dividend Aristocrats to see which stocks outperformed the S&P 500, which is up 12.60% this year. That’s a solid mark, but the legacy index is being swamped by the small-cap Russell 2000, which is up 23.08%. We found five top Dividend Aristocrats that are outperforming the S&P 500 by a wide margin, and all are Buy-rated by top Wall Street firms.

Why Do We Cover the Dividend Aristocrats?

S&P 500 companies that have paid and raised dividends for 25 years or longer are the types of investments growth and income investors want to buy and hold for the long term. These stocks are mostly conservative, and if we see a dramatic market correction, they will likely hold up much better than volatile technology and momentum names.

Caterpillar The giant equipment company has had a banner 2026 and is walloping the S&P 500, up 36.46% year-to-date, while paying a small 0.75% dividend. Caterpillar (NYSE:CAT | CAT Price Prediction) is a manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its segments include:

Construction Industries Resource Industries Power & Energy The Construction Industries segment supports customers using machinery in infrastructure and building construction applications. The Resource Industries segment develops and manufactures high-productivity equipment for surface and underground mining operations worldwide, and provides select work tools, machinery components, wear and maintenance components, and related parts.

The Power & Energy segment supports customers in oil and gas, power generation, marine, rail and industrial applications, including Caterpillar machines. It also develops and provides mining software solutions for the mining industry.

Caterpillar also provides financing and related services through its Financial Products segment.

Oppenheimer has an Outperform rating with a $1,118 target.

Coca-Cola Coca-Cola (NYSE:KO) is an American multinational corporation founded in 1892 and is up 31.58% in 2026. This company remains a long-term top holding of Warren Buffett, whose 400 million shares represent 9.3% of the float and 9.9% of the portfolio. The stock pays a dependable 2.34% dividend.

The company posted strong results, reporting $13.37 billion in revenue and $0.97 in comparable EPS, beating consensus estimates and raising its full-year earnings growth forecast to 8% to 9%.

Coca-Cola is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands. Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, including:

Diet Coke Coca-Cola Light Coca-Cola Zero Sugar Caffeine-free Diet Coke Cherry Coke Fanta Orange Fanta Zero Orange Fanta Zero Sugar Fanta Apple Sprite Sprite Zero Sugar Simply Orange Simply Apple Simply Grapefruit Fresca Schweppes Dasani Fuze Tea Glacéau Smartwater Glacéau Vitaminwater Gold Peak Ice Dew Powerade Topo Chico Minute Maid Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of over 1.9 billion servings per day. And remember that the company owns 19.5% of Monster Beverage (NASDAQ:MNST), which continues to deliver strong financial results.

UBS has a Buy rating with a $104 target price on the shares.

Colgate-Palmolive This consumer staples giant has been very conservative, paying a dividend every year since 1895, currently yielding 2.29%, and is up a solid 16% this year. Colgate-Palmolive (NYSE:CL) is a growth company focused on oral care, personal care, home care, and pet nutrition. It sells its products under brands such as:

Colgate Palmolive Elmex Hello Meridol Sorriso Tom’s of Maine EltaMD Filorga Irish Spring Lady Speed Stick PCA SKIN Protex Sanex Softsoap Speed Stick Ajax, Axion Fabuloso Murphy Soupline and Suavitel Hill’s Science Diet and Hill’s Prescription Diet The Home Care product segment, which is managed geographically in five segments, such as:

North America Latin America Europe Asia Pacific Africa/Eurasia All the segments sell primarily to a variety of traditional and e-commerce retailers, wholesalers, distributors, dentists, and skin health professionals.

The Pet Nutrition products include specialty pet nutrition products manufactured and marketed by Hill’s Pet Nutrition. Customers for Pet Nutrition products include authorized pet supply retailers, veterinarians, and e-commerce retailers.

Deutsche Bank has a Buy rating with a $101 target price.

Exxon Mobil Exxon Mobil (NYSE: XOM) manages an industry-leading portfolio of resources and is one of the world’s largest integrated fuel, lubricant, and chemical companies, and is up 37.06% in 2026. Despite rising oil prices, investors still have an excellent entry point to secure a strong 2.46% dividend yield. Exxon is the world’s largest international integrated oil and gas company, exploring for and producing crude oil and natural gas in North and South America, Europe, Africa, Asia, and elsewhere.

Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene, and polypropylene plastics, as well as specialty products. And the company transports and sells crude oil, natural gas, and petroleum products.

Top Wall Street analysts expect the company to remain a key beneficiary in a higher oil price environment, and most remain optimistic about the company’s sharp positive inflection in capital allocation strategy. The upstream portfolio offers leverage to a further demand recovery, and Exxon offers greater Downstream/Chemicals exposure than its peers.

Exxon completed its purchase of oil shale giant Pioneer Natural Resources in 2024 in an all-stock transaction valued at $59.5 billion. The deal created the largest U.S. oilfield producer and guarantees a decade of low-cost production.

Morgan Stanley has an Overweight rating with a $177 target price.

Target The big-box retailing giant has had a remarkable 2026, surging 58% year to date, while paying a 3.01% dividend. Target (NYSE:TGT) is a general merchandise retailer in the United States. It offers apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as jewelry, accessories, and shoes. The company also offers beauty and personal care products, baby gear, cleaning supplies, paper products, and pet care products.

Target also provides:

Dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service Electronics, which includes video game hardware and software Toys, entertainment, sporting goods, and luggage Furniture, lighting, storage, kitchenware, small appliances, home décor, bed, and bath Home Improvement School/office supplies Greeting cards, party supplies, and other seasonal merchandise The company also sells merchandise through periodic design and creative partnerships, shop-in-shop experiences, and in-store amenities. It also sells its products through its stores and digital channels, including Target.com.

D.A. Davidson has a Buy rating and a $185 target price.

Contact [email protected] for any questions or corrections.

On August 18, 2026, we conducted a DCF analysis for Monster Beverage Corp (MNST), a company that has seen a year-to-date price increase of 18.7% and a remarkabl

The iShares U.S. Consumer Staples ETF (IYK -0.12%) offers broader sector exposure and a lower cost profile compared to the more specialized Invesco Food & Beverage ETF (PBJ +0.38%).

Investors seeking stability often turn to consumer defensives to anchor a portfolio. While the Invesco Food & Beverage ETF targets a specific subset of industry producers using a dynamic index, the iShares U.S. Consumer Staples ETF provides a more traditional, diversified approach to the broader U.S. market.

Snapshot (cost & size)MetricPBJIYKIssuerInvescoiSharesShare price$47.03 (as of 2026-08-10)$74.19 (as of 2026-08-10)Expense ratio0.61%0.38%1-yr return (as of 2026-08-10)-1.0%8.9%Dividend yield1.3%2.6%Beta0.470.40AUM$106.5M$1.4BBeta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

The iShares U.S. Consumer Staples ETF is more affordable with a 0.38% expense ratio, while Invesco Food & Beverage ETF charges 0.61%. Additionally, the iShares fund provides a higher payout for income-seeking investors.

Performance & risk comparisonMetricPBJIYKMax drawdown (5 yr)-15.8%-15.0%Growth of $1,000 over 5 years (total return)$1,194$1,342What's insideThe iShares U.S. Consumer Staples ETF provides broad exposure with 53 holdings, primarily in Consumer Defensive (82%), Healthcare (14%), and Basic Materials (2%). Its largest positions include Procter & Gamble (PG -0.84%) at 12.97%, Coca-cola (KO -0.45%) at 12.95%, and Philip Morris International Inc (PM +0.12%) at 11.35%. Launched in 2000, iShares U.S. Consumer Staples ETF has paid $1.90 per share over the trailing 12 months, which on its recent ~$74.19 share price works out to a 2.6% yield.

In contrast, Invesco Food & Beverage ETF follows a narrower index of 31 companies involved in the production and distribution of food and agricultural products. Its sector tilts include Consumer Defensive (78%), Consumer Cyclical (8%), and Industrials (5%). Top holdings include Coca-Cola Co. at 5.48%, Starbucks Corp (SBUX +1.92%) at 5.27%, and Monster Beverage Corp (MNST -0.41%) at 5.23%. Launched in 2005, Invesco Food & Beverage ETF has paid $0.61 per share over the trailing 12 months, which on its recent ~$47.03 share price works out to a 1.3% yield.

For more guidance on ETF investing, check out the full guide at this link.

Which looks like the better buy?There is not much of a comparison here. The iShares U.S. Consumer Staples ETF wins on just about every count. It has better performance over every time period, including year-to-date, one-year, three-year, five-year, and 10-year. Year-to-date, IYK is up about 10%.

The iShares ETF also pays out a higher dividend yield and has a lower expense ratio. These are two reasons it has managed to outperform over the years. But it is also more diversified, covering a wider swath of the consumer staples sector while the Invesco Food and Beverage ETF focuses just on one part of the consumer staples sector, food and beverage stocks.

The iShares U.S. Consumer Staples ETF includes most of the stocks in the Invesco ETF, if not all of them, as 55% of the portfolio is in food stocks. But it also pulls stocks from other industries like household and personal products, healthcare equipment and services, retail and distribution, and materials.

A good consumer staples ETF should be a must in any portfolio for the balance it provides and the dividend income that can help boost returns during downturns. IYK is a certainly a solid choice to fill that void.

Have you evaluated the performance of Monster Beverage's (MNST - Free Report) international operations for the quarter ending June 2026? Given the extensive global presence of this energy drink maker, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

In our recent assessment of MNST's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.

The recent quarter saw the company's total revenue reaching $2.54 billion, marking an improvement of 20.2% from the prior-year quarter. Next, we'll examine the breakdown of MNST's revenue from abroad to comprehend the significance of its international presence.

Exploring MNST's International Revenue PatternsOf the total revenue, $632.76 million came from EMEA during the last fiscal quarter, accounting for 24.9%. This represented a surprise of -3.05% as analysts had expected the region to contribute $652.66 million to the total revenue. In comparison, the region contributed $586.22 million, or 24.9%, and $498.22 million, or 23.6%, to total revenue in the previous and year-ago quarters, respectively.

Asia Pacific accounted for 8.6% of the company's total revenue during the quarter, translating to $218.97 million. Revenues from this region represented a surprise of +9.21%, with Wall Street analysts collectively expecting $200.5 million. When compared to the preceding quarter and the same quarter in the previous year, Asia Pacific contributed $201.89 million (8.6%) and $161.69 million (7.7%) to the total revenue, respectively.

Latin America and Caribbean generated $234.11 million in revenues for the company in the last quarter, constituting 9.2% of the total. This represented a surprise of +18.94% compared to the $196.83 million projected by Wall Street analysts. Comparatively, in the previous quarter, Latin America and Caribbean accounted for $218.52 million (9.3%), and in the year-ago quarter, it contributed $150.25 million (7.1%) to the total revenue.

Prospective Revenues in International MarketsWall Street analysts expect Monster Beverage to report a total revenue of $2.43 billion in the current fiscal quarter, which suggests an increase of 10.6% from the prior-year quarter. Revenue shares from EMEA, Asia Pacific and Latin America and Caribbean are predicted to be 26.2%, 8.1%, and 9%, corresponding to amounts of $637.2 million, $197.27 million, and $218.52 million, respectively.

Analysts expect the company to report a total annual revenue of $9.61 billion for the full year, marking an increase of 15.9% compared to last year. The expected revenue contributions from EMEA, Asia Pacific and Latin America and Caribbean are projected to be 25.2% ($2.42 billion), 8.1% ($781.5 million) and 9.2% ($886.02 million) of the total revenue, in that order.

Final ThoughtsMonster Beverage's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

At the moment, Monster Beverage has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Examining the Latest Trends in Monster Beverage's Stock ValueThe stock has witnessed a decline of 7.2% over the past month versus the Zacks S&P 500 composite's an increase of 3.4%. In the same interval, the Zacks Consumer Staples sector, to which Monster Beverage belongs, has registered no change. Over the past three months, the company's shares saw an increase of 3.8%, while the S&P 500 increased by 6%. In comparison, the sector experienced an increase of 3.8% during this timeframe.

For Immediate ReleaseChicago, IL – August 7, 2026 – Today, Zacks Equity The Coca-Cola Co. (KO - Free Report) , Monster Beverage Corp. (MNST - Free Report) , Fomento Económico Mexicano, S.A.B. de C.V. (FMX - Free Report) , Primo Brands Corp. (PRMB - Free Report) and The Vita Coco Company, Inc. (COCO - Free Report)

Industry: Soft Drinks

Link: https://www.zacks.com/commentary/2969816/5-soft-drink-stocks-poised-for-growth-amid-health-focused-innovation

The Zacks Beverages – Soft Drinks industry is benefiting from strong consumer demand for healthier beverages and rapid digital transformation, creating favorable long-term growth opportunities. Rising preference for zero-sugar, low-calorie, functional and clean-label drinks is driving product innovation, premiumization and portfolio diversification.

At the same time, investments in artificial intelligence, data analytics, e-commerce and smart manufacturing are enhancing consumer engagement, operational efficiency and market reach. These trends are enabling companies to strengthen brand loyalty and capture new revenue streams.

Industry leaders like The Coca-Cola Co., Monster Beverage Corp., Fomento Económico Mexicano, S.A.B. de C.V., Primo Brands Corp. and The Vita Coco Company, Inc. are well-poised to benefit from these trends. 

However, the industry continues to face headwinds from rising raw material, packaging and transportation costs, as well as tariff-related uncertainty, which could pressure margins, complicate pricing decisions and weigh on overall profitability.

About the IndustryThe Zacks Beverages - Soft Drinks industry comprises companies that manufacture, source, develop, market and sell non-alcoholic beverages. Soft drinks mainly include sparkling drinks, natural juices, enhanced water, sports and energy drinks, dairy, and ready-to-drink (RTD) tea and coffee beverages. Some industry players like PepsiCo produce and sell handy food with flavored snacks, complementing their beverage portfolio. The companies sell products through a network of wholesalers and retailers, including supermarkets, department stores, mass merchandisers, club stores and other retail outlets. Some also offer products via company-owned or controlled bottling, independent bottling partners and partner brand owners.

What's Shaping the Future of the Beverages - Soft Drinks Industry?Growing Demand for Healthier Beverages: Growing demand for healthier beverages is creating significant opportunities across the U.S. soft drinks industry. Consumers are increasingly choosing zero-sugar, low-calorie, naturally sweetened and clean-label products that support broader wellness goals. This shift is accelerating growth in diet sodas, flavored sparkling water, functional beverages and drinks enriched with electrolytes, vitamins, botanicals and other beneficial ingredients. 

In response, manufacturers are reformulating established brands, launching innovative flavors and expanding into adjacent categories to reach new audiences. These developments are helping companies attract health-conscious consumers, particularly younger buyers, while strengthening brand loyalty and supporting premium pricing. As interest in nutrition, hydration and functional benefits continues to rise, healthier beverage offerings should remain a major source of innovation, differentiation and sustainable industry growth ahead. 

Digital Growth & Innovation:Digital growth and innovation are reshaping the soft drinks industry as brands leverage technology to strengthen consumer engagement and streamline operations. Advanced data analytics and AI-driven insights are helping companies understand evolving preferences, personalize marketing and optimize product development. E-commerce continues to surge, with direct-to-consumer channels, subscription models and rapid-delivery partnerships expanding market reach. 

Digital platforms also enable immersive brand experiences through interactive campaigns, loyalty programs and social commerce. Meanwhile, automation, smart manufacturing and connected supply chains are improving efficiency and reducing costs. As competition intensifies, soft drink companies that embrace digital transformation, spanning R&D, marketing, distribution and customer experience, are better equipped to drive growth, enhance agility and capture revenue opportunities in an increasingly tech-driven marketplace.

Rising Costs & Tariff Uncertainty:Rising costs and tariff uncertainty are affecting the soft drinks industry, creating a challenging operating landscape for global and regional players alike. Higher input prices, spanning sugar, aluminum cans, packaging materials and transportation, are eroding margins, forcing companies to rethink pricing and supply-chain strategies. 

At the same time, ongoing tariff volatility, particularly on key ingredients and imported machinery, is complicating production planning and cost forecasting. Brands must balance selective price hikes with the risks of dampening consumer demand, especially in price-sensitive markets. To stay competitive, soft drink makers are doubling down on procurement optimization, local sourcing and efficiency-focused innovation. These cost burdens may squeeze margins, complicate pricing strategies and impact overall industry competitiveness.

Zacks Industry Rank Indicates Bright ProspectsThe Zacks Beverages - Soft Drinks industry is housed within the broader Consumer Staples sector. It currently carries a Zacks Industry Rank #90, which places it in the top 37% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

The industry’s positioning in the top 50% of the Zacks-ranked industries results from a positive aggregate earnings outlook for the constituent companies. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential.

Before we present a few stocks that you may want to consider for your portfolio, let us look at the industry’s recent stock-market performance and valuation picture.

Industry vs. Broader MarketThe Zacks Beverages – Soft Drinks industry has outperformed the Consumer Staples sector but underperformed the S&P 500 Index in the past year.

The stocks in the industry have collectively gained 16.9% compared with the sector’s growth of 2.6% and the S&P 500’s growth of 25.1% in the past year.

Industry's Current ValuationOn the basis of the forward 12-month price-to-earnings (P/E) ratio, commonly used for valuing soft drink stocks, the industry is currently trading at 19.51X compared with the S&P 500’s 20.93X and the sector’s 17.22X.

Over the last five years, the industry traded as high as 23.76X and as low as 17.2X, with a median of 19.51X.

5 Soft Drink Stocks to WatchOne stock in the Zacks Beverages – Soft Drinks industry currently sports a Zacks Rank #1 (Strong Buy), whereas two stocks have a Zacks Rank #2 (Buy). We have also highlighted two stocks with a Zacks Rank #3 (Hold) from the same industry. You can see the complete list of today’s Zacks #1 Rank stocks here.

Vita Coco:This is a pioneer in the functional beverage category. This New York-based company has been benefiting from its focus and investment to expand the consumption occasions of coconut water. This has been contributing to strong volume growth for the category and its flagship Vita Coco Coconut Water brand. 

The company’s focus on growing the coconut water category resulted in its overall sales growth, witnessing a 15% CAGR for the last four years. The company looks well-poised for growth, driven by its ability to drive brand volume increase via strong retail execution and creative marketing programs. Additionally, COCO’s strategies position it to improve profitability and cash generation in the long term.

Vita Coco’s shares have rallied 97.1% in the past year. The Zacks Consensus Estimate for COCO’s 2026 sales and earnings indicates year-over-year increases of 31.6% and 64.7%, respectively. The consensus mark for earnings has moved up 11.4% in the past 30 days. The company currently flaunts a Zacks Rank #1.

Coca-Cola: The soft drink behemoth is poised to gain from strategic transformation and ongoing worldwide recovery. The streamlining of its portfolio and accelerating investments to expand the digital presence position the company for long-term growth. It has been witnessing a splurge in e-commerce, with the growth rate of the channel doubling in many countries. KO is strengthening consumer connections and piloting numerous digital-enabled initiatives through fulfillment methods to capture the online demand for at-home consumption.

KO is diversifying its portfolio to tap into the rapidly growing RTD category. Coca-Cola has been gaining from the elasticity in the marketplace, an improved price/mix, and concentrated sales and underlying share gains in at-home and away-from-home channels. The Zacks Consensus Estimate for KO’s 2026 sales and earnings suggests year-over-year growth of 3.6% and 9.7%, respectively. The consensus mark for earnings has moved up 0.6% in the past 30 days. This Zacks Rank #2 company’s shares have risen 23.3% in the past year.

Primo Brands: The company is a leading North American branded beverage company focused on healthy hydration. Primo Brands operates in a category supported by health, wellness and hydration trends, while its broad portfolio gives it exposure to multiple price points and consumption occasions. The company’s growth is driven by healthier hydration demand, premium-water momentum and improving Direct Delivery execution. Management expects retail momentum to be supported by new distribution, additional displays, Amazon Grocery availability and brand activation.

Direct Delivery service metrics are recovering, with better customer trends and on-time performance, creating scope for modest growth and stronger route economics. Premium brands, expanding distribution, improving delivery execution and disciplined cash generation support a balanced long-term investment case for shareholders. Shares of the company have risen 5.6% in the past year. The Zacks Consensus Estimate for PRMB’s 2026 sales suggests year-over-year growth of 1.6%. The consensus estimate for this Zacks Rank #2 company’s 2026 earnings per share has moved up 0.6% in the past 30 days.

Monster Beverage: The Corona, CA-based company markets and distributes energy drinks and alternative beverages. MNST has been experiencing continued strength in its energy drinks category, which is driving its performance. The company offers a wide range of energy drink brands, such as Monster Energy, Java Monster, Cafe Monster, Espresso Monster, Monster Energy Mule, Juice Monster Pipeline Punch, Juice Monster Pacific Punch, Juice Monster Mango Loco, Monster Ultra Paradise and Monster Hydra Sport. Product innovation also plays a significant role in the company's success. Monster Beverage is implementing pricing actions to overcome the ongoing cost pressure.

Despite supply-chain challenges, MNST continues to stand by its strategy to ensure product availability and solidify long-term growth of its brands. Management is optimistic about the strength in the global energy drinks category. It has been poised to gain from growth in the Monster Energy family of brands, and strength in Strategic and Affordable energy brands. Shares of this Zacks Rank #3 company have rallied 55.3% in the past year. The Zacks Consensus Estimate for MNST’s 2026 sales and earnings indicates year-over-year increases of 14.8% and 12.1%, respectively. The consensus mark for earnings has moved up 0.4% in the past seven days.

Fomento Económico Mexicano, alias FEMSA, participates in the beverage industry through Coca-Cola FEMSA, which is the world’s largest franchise bottler for Coca-Cola products. FEMSA presents a compelling investment case, driven by its FEMSA Forward strategy, which is sharpening operational focus, simplifying the portfolio and enhancing shareholder returns. Strong execution at OXXO Mexico, improving margins and disciplined international retail expansion support sustainable growth. Meanwhile, Digital@FEMSA is strengthening customer engagement through the rapidly scaling Spin ecosystem.

Backed by resilient cash flows, cost optimization and an attractive capital-allocation framework, including dividends and share repurchases, FEMSA is well-positioned for long-term value creation and earnings expansion. The Zacks Consensus Estimate for FMX’s 2026 sales and earnings suggests growth of 17.3% and 127.2%, respectively. The consensus mark for earnings has moved down 1.6% in the past seven days. The company’s shares have surged 40.9% in the past year. It currently has a Zacks Rank #3.

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Buyback Capacity Is Rising Across 3 Soaring and Sinking StocksMonster Beverage NASDAQ: MNST reported record quarterly net sales in the second quarter of 2026, with revenue surpassing $2.5 billion for the first time as the energy-drink maker posted double-digit growth across all geographic regions.

Net sales rose 20.2% year over year to $2.54 billion, while sales excluding the alcohol brands segment increased 20.8%. On a foreign-currency-adjusted basis, total sales increased 17.9%. Net income per diluted share rose 19% to $0.59, and adjusted earnings per diluted share increased 15.2% to $0.60.

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Coca-Cola Stock Dips—Is CELH the Growth Your Portfolio Needs?Chief Executive Officer Hilton Schlosberg said the company gained share in many global markets, including for the Monster brand in the U.S., supported by core products and new offerings. He said global energy-drink demand remained healthy as the category continued to gain household penetration across a broader range of consumers, price points and usage occasions.

Segment Results and Margins Monster Energy drinks segment sales increased 21.6% to $2.36 billion in the quarter, or 19.3% on a currency-neutral basis. Sales in the strategic brands segment rose 10.6% to $143.7 million, while alcohol brands segment sales declined 15.2% to $32.2 million.

Celsius Stock Surges After Blowout Earnings and Pepsi DealGross profit margin was 55.9%, compared with 55.7% a year earlier. The company attributed the improvement primarily to pricing actions and product mix, partly offset by higher aluminum-can costs, geographic mix and freight-in costs.

Operating income increased 17.2% to $740.4 million. Adjusted operating income rose 13.3% to $748.1 million. Distribution expenses climbed to $118.8 million from $82 million, reflecting higher freight and fuel costs, while selling expenses rose to $269.2 million from $196.9 million as Monster increased spending on social media, digital marketing, sponsorships and endorsements.

Schlosberg said the increased marketing investment was intended to recruit new energy-drink consumers and broaden household penetration. The company highlighted partnerships and campaigns involving UFC, Formula One driver Lando Norris, country musician Morgan Wallen and the Big 12 Conference.

International Sales Drive Growth Sales to customers outside the U.S. increased 34.6% to $1.16 billion, representing approximately 46% of total net sales, compared with about 41% a year earlier. Currency-neutral international sales grew 29%.

EMEA: Sales increased 27.2% in dollars and 22.2% on a currency-neutral basis. Monster said its portfolio gained 220 basis points of value share in the region. Gross margin improved to 38.8% from 36.1%. Asia Pacific: Sales rose 35.7% in dollars and 36.7% on a currency-neutral basis. China sales grew 54% in local currency, while India sales increased 100.3% in local currency. Latin America and Caribbean: Sales increased 56.1% in dollars and 40.4% on a currency-neutral basis. Brazil local-currency sales rose 61.6%, while Mexico increased 20.5%. Guy Carling, CEO of EMEA and OSP, said the company’s regional growth was supported by established products as well as innovation, stronger execution with Coca-Cola bottling partners, additional cooler placements and broader retail assortment. He said zero-sugar energy drinks continued to be a major contributor, with the segment growing 23% in Europe versus 5% growth for full-sugar products.

Monster said it holds a 44.5% value share in Europe’s zero-sugar energy-drink segment, according to Nielsen data. The company also cited expansion of the Juice Monster Viking Berry product and affordable Bang Energy offerings in select markets.

U.S. Growth, Innovation and Pricing U.S. and Canada net sales increased 11.5% from the prior-year period. According to Nielsen, the Monster brand family gained 70 basis points of value market share during the quarter.

The company said sugar-free products remained an important growth driver. The Ultra family grew 19%, while Juice Monster sales increased 26%. Monster also pointed to contributions from products introduced in late 2025 and early 2026, along with limited-time offerings tied to America’s 250th anniversary.

Schlosberg said the company accelerated sampling and marketing behind Storm and Float during the quarter. He also highlighted opportunities in food service on premise, or FSOP, including a recently announced partnership between Marriott International and The Coca-Cola Company that Monster believes could expand distribution.

Rob Gehring, CEO of the Americas, said Monster has pursued consistent pricing over recent years and believes its approach continues to support volume growth. Monster has begun discussions with U.S. partners and customers regarding selective price increases that would take effect in the fourth quarter of 2026. Carling said the company has taken aggregate low-single-digit pricing in EMEA and expects to continue taking price opportunistically depending on market and competitive conditions.

Tariffs, Aluminum Costs and Outlook Schlosberg said tariffs and higher aluminum prices had a modest impact during the second quarter, though tariffs have increased the Midwest premium for aluminum and raised can costs. The company expects a continued modest sequential increase in aluminum costs through at least the end of 2026, based on current pricing and the Midwest premium.

Monster said it does not believe current tariffs will have a material impact on operating results, but it plans to continue hedging where possible and reviewing potential pricing actions domestically and internationally.

For July, Monster estimated that sales excluding alcohol brands increased approximately 14.3% from July 2025 on a reported basis, or 13.9% on a currency-adjusted basis. The company cautioned that monthly sales can be affected by promotional activity, timing of production, new product launches, price changes and distributor inventory decisions.

Monster did not repurchase shares during the second quarter. About $900 million remained available under its authorized repurchase program as of Aug. 5. The company also expects shares to begin trading on a split-adjusted basis on Aug. 11 following its previously announced two-for-one stock split.

Looking ahead, Monster plans to present its innovation pipeline at the NACS Show in October and will host an investor meeting in New York on Dec. 1. The company is also continuing a digital-transformation effort, including a planned Jan. 1, 2028, go-live for its SAP S/4HANA platform upgrade.

About Monster Beverage (NASDAQ:MNST)Monster Beverage Corporation NASDAQ: MNST is an American beverage company best known for its Monster Energy brand of energy drinks. The company's product portfolio centers on carbonated energy beverages and a range of complementary ready-to-drink offerings, including energy coffees, hydration beverages and other flavored functional drinks. Monster markets multiple sub-brands and flavor variants to address different consumer segments and consumption occasions.

Originally organized around the Hansen's Natural line of juices and sodas, the company pivoted toward the energy drink category and formally adopted the Monster Beverage name in the early 2010s to reflect its strategic focus.

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Monster Beverage (MNST - Free Report) came out with quarterly earnings of $0.6 per share, beating the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +1.70%. A quarter ago, it was expected that this energy drink maker would post earnings of $0.53 per share when it actually produced earnings of $0.58, delivering a surprise of +9.43%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Monster Beverage, which belongs to the Zacks Beverages - Soft drinks industry, posted revenues of $2.54 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.97%. This compares to year-ago revenues of $2.11 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Monster Beverage shares have added about 23.2% since the beginning of the year versus the S&P 500's gain of 12.8%.

What's Next for Monster Beverage?While Monster Beverage has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Monster Beverage was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.60 on $2.43 billion in revenues for the coming quarter and $2.31 on $9.52 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Beverages - Soft drinks is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the broader Zacks Consumer Staples sector, Alico (ALCO - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 10.

This agribusiness and land management company is expected to post quarterly loss of $0.73 per share in its upcoming report, which represents a year-over-year change of +69.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Alico's revenues are expected to be $2.6 million, down 69% from the year-ago quarter.

The Zacks Beverages – Soft Drinks industry is benefiting from strong consumer demand for healthier beverages and rapid digital transformation, creating favorable long-term growth opportunities. Rising preference for zero-sugar, low-calorie, functional and clean-label drinks is driving product innovation, premiumization and portfolio diversification.

At the same time, investments in artificial intelligence, data analytics, e-commerce and smart manufacturing are enhancing consumer engagement, operational efficiency and market reach. These trends are enabling companies to strengthen brand loyalty and capture new revenue streams.

Industry leaders like The Coca-Cola Company (KO - Free Report) , Monster Beverage Corporation (MNST - Free Report) , Fomento Económico Mexicano, S.A.B. de C.V. (FMX - Free Report) , Primo Brands Corporation (PRMB - Free Report) and The Vita Coco Company, Inc. (COCO - Free Report) are well-poised to benefit from these trends.

However, the industry continues to face headwinds from rising raw material, packaging and transportation costs, as well as tariff-related uncertainty, which could pressure margins, complicate pricing decisions and weigh on overall profitability.

About the Industry The Zacks Beverages - Soft Drinks industry comprises companies that manufacture, source, develop, market and sell non-alcoholic beverages. Soft drinks mainly include sparkling drinks, natural juices, enhanced water, sports and energy drinks, dairy, and ready-to-drink (RTD) tea and coffee beverages. Some industry players like PepsiCo produce and sell handy food with flavored snacks, complementing their beverage portfolio. The companies sell products through a network of wholesalers and retailers, including supermarkets, department stores, mass merchandisers, club stores and other retail outlets. Some also offer products via company-owned or controlled bottling, independent bottling partners and partner brand owners.

What's Shaping the Future of the Beverages - Soft Drinks Industry? Growing Demand for Healthier Beverages: Growing demand for healthier beverages is creating significant opportunities across the U.S. soft drinks industry. Consumers are increasingly choosing zero-sugar, low-calorie, naturally sweetened and clean-label products that support broader wellness goals. This shift is accelerating growth in diet sodas, flavored sparkling water, functional beverages and drinks enriched with electrolytes, vitamins, botanicals and other beneficial ingredients. In response, manufacturers are reformulating established brands, launching innovative flavors and expanding into adjacent categories to reach new audiences. These developments are helping companies attract health-conscious consumers, particularly younger buyers, while strengthening brand loyalty and supporting premium pricing. As interest in nutrition, hydration and functional benefits continues to rise, healthier beverage offerings should remain a major source of innovation, differentiation and sustainable industry growth ahead.

Digital Growth & Innovation: Digital growth and innovation are reshaping the soft drinks industry as brands leverage technology to strengthen consumer engagement and streamline operations. Advanced data analytics and AI-driven insights are helping companies understand evolving preferences, personalize marketing and optimize product development. E-commerce continues to surge, with direct-to-consumer channels, subscription models and rapid-delivery partnerships expanding market reach. Digital platforms also enable immersive brand experiences through interactive campaigns, loyalty programs and social commerce. Meanwhile, automation, smart manufacturing and connected supply chains are improving efficiency and reducing costs. As competition intensifies, soft drink companies that embrace digital transformation, spanning R&D, marketing, distribution and customer experience, are better equipped to drive growth, enhance agility and capture revenue opportunities in an increasingly tech-driven marketplace.

Rising Costs & Tariff Uncertainty: Rising costs and tariff uncertainty are affecting the soft drinks industry, creating a challenging operating landscape for global and regional players alike. Higher input prices, spanning sugar, aluminum cans, packaging materials and transportation, are eroding margins, forcing companies to rethink pricing and supply-chain strategies. At the same time, ongoing tariff volatility, particularly on key ingredients and imported machinery, is complicating production planning and cost forecasting. Brands must balance selective price hikes with the risks of dampening consumer demand, especially in price-sensitive markets. To stay competitive, soft drink makers are doubling down on procurement optimization, local sourcing and efficiency-focused innovation. These cost burdens may squeeze margins, complicate pricing strategies and impact overall industry competitiveness.

Zacks Industry Rank Indicates Bright Prospects The Zacks Beverages - Soft Drinks industry is housed within the broader Consumer Staples sector. It currently carries a Zacks Industry Rank #90, which places it in the top 37% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

The industry’s positioning in the top 50% of the Zacks-ranked industries results from a positive aggregate earnings outlook for the constituent companies. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential.

Before we present a few stocks that you may want to consider for your portfolio, let us look at the industry’s recent stock-market performance and valuation picture.

Industry vs. Broader Market The Zacks Beverages – Soft Drinks industry has outperformed the Consumer Staples sector but underperformed the S&P 500 Index in the past year.

The stocks in the industry have collectively gained 16.9% compared with the sector’s growth of 2.6% and the S&P 500’s growth of 25.1% in the past year.

One-Year Price Performance

Industry's Current Valuation On the basis of the forward 12-month price-to-earnings (P/E) ratio, commonly used for valuing soft drink stocks, the industry is currently trading at 19.51X compared with the S&P 500’s 20.93X and the sector’s 17.22X.

Over the last five years, the industry traded as high as 23.76X and as low as 17.2X, with a median of 19.51X, as the chart below shows.

Price-to-Earnings Ratio (Past 5 Years)

5 Soft Drink Stocks to Watch One stock in the Zacks Beverages – Soft Drinks industry currently sports a Zacks Rank #1 (Strong Buy), whereas two stocks have a Zacks Rank #2 (Buy). We have also highlighted two stocks with a Zacks Rank #3 (Hold) from the same industry. You can see the complete list of today’s Zacks #1 Rank stocks here.

Vita Coco: This is a pioneer in the functional beverage category. This New York-based company has been benefiting from its focus and investment to expand the consumption occasions of coconut water. This has been contributing to strong volume growth for the category and its flagship Vita Coco Coconut Water brand. The company’s focus on growing the coconut water category resulted in its overall sales growth, witnessing a 15% CAGR for the last four years. The company looks well-poised for growth, driven by its ability to drive brand volume increase via strong retail execution and creative marketing programs. Additionally, COCO’s strategies position it to improve profitability and cash generation in the long term.

Vita Coco’s shares have rallied 97.1% in the past year. The Zacks Consensus Estimate for COCO’s 2026 sales and earnings indicates year-over-year increases of 31.6% and 64.7%, respectively. The consensus mark for earnings has moved up 11.4% in the past 30 days. The company currently flaunts a Zacks Rank #1.

Price & Consensus: COCO

Coca-Cola: The soft drink behemoth is poised to gain from strategic transformation and ongoing worldwide recovery. The streamlining of its portfolio and accelerating investments to expand the digital presence position the company for long-term growth. It has been witnessing a splurge in e-commerce, with the growth rate of the channel doubling in many countries. KO is strengthening consumer connections and piloting numerous digital-enabled initiatives through fulfillment methods to capture the online demand for at-home consumption.

KO is diversifying its portfolio to tap into the rapidly growing RTD category. Coca-Cola has been gaining from the elasticity in the marketplace, an improved price/mix, and concentrated sales and underlying share gains in at-home and away-from-home channels. The Zacks Consensus Estimate for KO’s 2026 sales and earnings suggests year-over-year growth of 3.6% and 9.7%, respectively. The consensus mark for earnings has moved up 0.6% in the past 30 days. This Zacks Rank #2 company’s shares have risen 23.3% in the past year.

Price & Consensus: KO

Primo Brands: The company is a leading North American branded beverage company focused on healthy hydration. Primo Brands operates in a category supported by health, wellness and hydration trends, while its broad portfolio gives it exposure to multiple price points and consumption occasions. The company’s growth is driven by healthier hydration demand, premium-water momentum and improving Direct Delivery execution. Management expects retail momentum to be supported by new distribution, additional displays, Amazon Grocery availability and brand activation.

Direct Delivery service metrics are recovering, with better customer trends and on-time performance, creating scope for modest growth and stronger route economics. Premium brands, expanding distribution, improving delivery execution and disciplined cash generation support a balanced long-term investment case for shareholders. Shares of the company have risen 5.6% in the past year. The Zacks Consensus Estimate for PRMB’s 2026 sales suggests year-over-year growth of 1.6%. The consensus estimate for this Zacks Rank #2 company’s 2026 earnings per share has moved up 0.6% in the past 30 days.

Price & Consensus: PRMB

Monster Beverage: The Corona, CA-based company markets and distributes energy drinks and alternative beverages. MNST has been experiencing continued strength in its energy drinks category, which is driving its performance. The company offers a wide range of energy drink brands, such as Monster Energy, Java Monster, Cafe Monster, Espresso Monster, Monster Energy Mule, Juice Monster Pipeline Punch, Juice Monster Pacific Punch, Juice Monster Mango Loco, Monster Ultra Paradise and Monster Hydra Sport. Product innovation also plays a significant role in the company's success. Monster Beverage is implementing pricing actions to overcome the ongoing cost pressure.

Despite supply-chain challenges, MNST continues to stand by its strategy to ensure product availability and solidify long-term growth of its brands. Management is optimistic about the strength in the global energy drinks category. It has been poised to gain from growth in the Monster Energy family of brands, and strength in Strategic and Affordable energy brands. Shares of this Zacks Rank #3 company have rallied 55.3% in the past year. The Zacks Consensus Estimate for MNST’s 2026 sales and earnings indicates year-over-year increases of 14.8% and 12.1%, respectively. The consensus mark for earnings has moved up 0.4% in the past seven days.

Price & Consensus: MNST

Fomento Económico Mexicano, alias FEMSA, participates in the beverage industry through Coca-Cola FEMSA, which is the world’s largest franchise bottler for Coca-Cola products. FEMSA presents a compelling investment case, driven by its FEMSA Forward strategy, which is sharpening operational focus, simplifying the portfolio and enhancing shareholder returns. Strong execution at OXXO Mexico, improving margins and disciplined international retail expansion support sustainable growth. Meanwhile, Digital@FEMSA is strengthening customer engagement through the rapidly scaling Spin ecosystem.

Backed by resilient cash flows, cost optimization and an attractive capital-allocation framework, including dividends and share repurchases, FEMSA is well-positioned for long-term value creation and earnings expansion. The Zacks Consensus Estimate for FMX’s 2026 sales and earnings suggests growth of 17.3% and 127.2%, respectively. The consensus mark for earnings has moved down 1.6% in the past seven days. The company’s shares have surged 40.9% in the past year. It currently has a Zacks Rank #3.

Price & Consensus: FMX

Monster Beverage (MNST) is a wide-moat company with strong execution and significant international growth opportunities, particularly in Asia. Despite robust Q1 results and bullish Q2 outlook, MNST's valuation remains stretched, limiting margin of safety even under optimistic scenarios. Management's focus on expanding consumer demographics and launching new brands like FLRT aims to sustain above-industry growth.

Wall Street expects a year-over-year increase in earnings on higher revenues when Monster Beverage (MNST - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis energy drink maker is expected to post quarterly earnings of $0.59 per share in its upcoming report, which represents a year-over-year change of +13.5%.

Revenues are expected to be $2.42 billion, up 14.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.21% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Monster Beverage?For Monster Beverage, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.61%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Monster Beverage will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Monster Beverage would post earnings of $0.53 per share when it actually produced earnings of $0.58, delivering a surprise of +9.43%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Monster Beverage appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Posted by Defense World Staff on Jul 30th, 2026

Monster Beverage (NASDAQ:MNST – Get Free Report) is projected to post its Q2 2026 results after the market closes on Thursday, August 6th. Analysts expect the company to announce earnings of $0.5810 per share and revenue of $2.4289 billion for the quarter. Parties may visit the the company’s upcoming Q2 2026 earning results page for the latest details on the call scheduled for Thursday, August 6, 2026 at 5:00 PM ET.

Monster Beverage (NASDAQ:MNST – Get Free Report) last posted its quarterly earnings results on Friday, May 8th. The company reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.53 by $0.05. Monster Beverage had a return on equity of 26.86% and a net margin of 23.11%.The company had revenue of $2.32 billion during the quarter, compared to the consensus estimate of $2.16 billion. During the same quarter in the prior year, the company earned $0.47 EPS. The firm’s quarterly revenue was up 22.6% compared to the same quarter last year. On average, analysts expect Monster Beverage to post $2 EPS for the current fiscal year and $3 EPS for the next fiscal year.

Monster Beverage Trading Down 0.5% Monster Beverage stock opened at $97.23 on Thursday. The firm has a 50 day simple moving average of $93.37 and a 200 day simple moving average of $83.99. Monster Beverage has a 1-year low of $58.09 and a 1-year high of $100.34. The firm has a market capitalization of $95.09 billion, a price-to-earnings ratio of 46.97, a P/E/G ratio of 3.18 and a beta of 0.53.

Shares of Monster Beverage are going to split on the morning of Tuesday, August 11th. The 2-1 split was announced on Wednesday, July 8th. The newly created shares will be payable to shareholders after the market closes on Monday, August 10th.

Monster Beverage announced that its Board of Directors has initiated a share repurchase program on Friday, May 15th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the company to purchase up to 0.6% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s management believes its stock is undervalued.

Analysts Set New Price Targets A number of equities research analysts recently issued reports on MNST shares. Deutsche Bank Aktiengesellschaft downgraded Monster Beverage from a “buy” rating to a “hold” rating and increased their price objective for the stock from $94.00 to $98.00 in a research report on Monday, July 20th. Sanford C. Bernstein initiated coverage on shares of Monster Beverage in a research note on Friday, June 12th. They issued a “market perform” rating and a $95.00 price objective for the company. TD Cowen increased their target price on Monster Beverage from $90.00 to $95.00 and gave the company a “hold” rating in a report on Wednesday, July 8th. Weiss Ratings lowered shares of Monster Beverage from a “buy (b)” rating to a “buy (b-)” rating in a report on Thursday, July 23rd. Finally, Wells Fargo & Company boosted their target price on Monster Beverage from $97.00 to $105.00 and gave the company an “overweight” rating in a research note on Wednesday, July 8th. Thirteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $94.65.

Get Our Latest Analysis on Monster Beverage

Insider Buying and Selling In other Monster Beverage news, Director Mark J. Hall sold 54,000 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $85.81, for a total transaction of $4,633,740.00. Following the sale, the director directly owned 299,246 shares in the company, valued at approximately $25,678,299.26. This trade represents a 15.29% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Guy Carling sold 19,000 shares of the stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $90.90, for a total value of $1,727,100.00. Following the sale, the chief executive officer directly owned 21,863 shares in the company, valued at $1,987,346.70. This trade represents a 46.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 178,700 shares of company stock worth $15,457,562 in the last 90 days. 8.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Monster Beverage Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Newbridge Financial Services Group Inc. boosted its stake in shares of Monster Beverage by 1,338.7% in the 2nd quarter. Newbridge Financial Services Group Inc. now owns 446 shares of the company’s stock worth $28,000 after buying an additional 415 shares during the last quarter. Kemnay Advisory Services Inc. purchased a new stake in shares of Monster Beverage in the fourth quarter worth $35,000. Miller Capital Partners Inc. purchased a new stake in Monster Beverage in the 4th quarter worth $36,000. Prosperity Bancshares Inc purchased a new stake in shares of Monster Beverage during the fourth quarter worth about $39,000. Finally, Triumph Capital Management purchased a new stake in Monster Beverage during the 3rd quarter valued at approximately $36,000. Hedge funds and other institutional investors own 72.36% of the company’s stock.

About Monster Beverage (Get Free Report)

Monster Beverage Corporation (NASDAQ: MNST) is an American beverage company best known for its Monster Energy brand of energy drinks. The company’s product portfolio centers on carbonated energy beverages and a range of complementary ready-to-drink offerings, including energy coffees, hydration beverages and other flavored functional drinks. Monster markets multiple sub-brands and flavor variants to address different consumer segments and consumption occasions.

Originally organized around the Hansen’s Natural line of juices and sodas, the company pivoted toward the energy drink category and formally adopted the Monster Beverage name in the early 2010s to reflect its strategic focus.

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Who doesn't love a stock split? Energy drink powerhouse Monster Beverage (MNST +1.97%) recently announced a 2-for-1 stock split, the company's sixth since 2005. Shareholders as of July 24 after the market's close will receive a 100% stock dividend after the market closes on Aug. 10. The stock will begin trading at its split-adjusted price on Aug. 11.

Although stock splits don't affect a company's financials, investors love them because they typically occur when things have gone well. Indeed, Monster Beverage has been, well, a monster. The stock is up over 24,000% since 2005.

The real question, though, is what will the stock do in the future? Here's what a $1,000 investment might look like in five years.

Image source: Getty Images.

The math behind stock splits Suppose you invested $1,000 in Monster Beverage at $100 per share before the market closed on July 24, and shares still traded at that same price when the stock split took place. Your investment would still be worth $1,000. However, instead of 10 shares at $100, you'd now have 20 shares worth $50 each.

Remember that stock splits proportionately affect a company's per-share metrics based on the change in share count. So, a stock earning $10 per share would earn $5 per share after a 2-for-1 split, but there would be twice as many shares. Stock splits are simply about how a company divides the pie among investors. The actual size of the pie doesn't change.

Today's Change

(

1.97

%) $

1.84

Current Price

$

95.33

Monster Beverage's earnings growth and valuation will directly impact the stock's returns. Shares are currently trading at 45 times the company's trailing-12-month earnings, well above its 10-year average P/E ratio of 37. Additionally, analysts expect earnings to grow by an average of 13% annually over the next three to five years. That's solid growth, but it's probably fair to call the stock overvalued.

I'll assume that Monster grows in line with analyst estimates, so 13% for the next five years. I'll also use split-adjusted numbers. As a result, Monster's earnings would look something like this:

TimeEarnings per ShareTrailing 12 months$1.03Year 1$1.16Year 2$1.32Year 3$1.49Year 4$1.68Year 5$1.90 Data source: Ycharts. Calculations by author.

Adjusting the stock's current share price of $93.50 for the upcoming 2-for-1 split would result in shares trading at $46.75. Now, I'll assume that Monster Beverage is trading at its long-term average P/E ratio of 37 by year five. That puts the stock at $70.30 per share in year five, roughly 50% higher than where it is now -- again, on a split-adjusted basis.

That's not remarkable, but Monster does look expensive here. As fun as stock splits can be, valuation matters more for stock returns.

Investors interested in Beverages - Soft drinks stocks are likely familiar with Primo Brands (PRMB) and Monster Beverage (MNST). But which of these two stocks offers value investors a better bang for their buck right now?

Since 2007, Monster Beverage Corporation (MNST) rises1,668% due to outlier inflows.

MNST develops, markets, distributes, and sells 11 different brands of drinks and concentrates, including its namesake Monster Energy brand. MNST’s first-quarter fiscal 2026 report showed quarterly net sales of $2.35 billion (a 26.9% rise), double-digit growth in all regions, net income per diluted share of $0.58 (a 27.6% rise), as well as returning $100 million to shareholders through repurchases. The company reports again on July 30.

It’s no wonder MNST shares are up 23% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock

Institutions Thirsty for Monster Beverage Institutional volumes reveal plenty. Over the last year, MNST has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in MNST shares. They reflect our proprietary inflow signal, pushing the stock higher:

MNST garnered many institutional inflows over the course of a year versus just two outflows, pushing shares up 59%. Source: www.moneyflows.com Plenty of staples names are under accumulation right now. But there’s a powerful fundamental story happening with Monster Beverage.

Monster Beverage Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, MNST has had strong sales and earnings growth:

3-year sales growth rate (+9.6%) 3-year earnings growth rate (+21.4%) Source: FactSet

Also, EPS is estimated to ramp higher this year by +13.1%.

Now it makes sense why the stock has been powering to new heights. MNST has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Monster Beverage has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Outlier 20 report 92 times since 2007, gaining 1,668%. The blue bars below show when MNST was a top pick in the last year…institutional support drives prices higher:

A total of 14 outlier inflows from institutional investors in the last year pushed prices higher – MNST has 92 total outlier inflows and no outflows since 2007. Source: www.moneyflows.com Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Monster Beverage Price Prediction The MNST rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in MNST at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MoneyFlows process here.

Posted by _ _xnake on Jul 17th, 2026

Monster Beverage Corporation (NASDAQ:MNST – Get Free Report) shares hit a new 52-week high on Thursday after UBS Group raised their price target on the stock from $84.00 to $104.00. UBS Group currently has a neutral rating on the stock. Monster Beverage traded as high as $99.53 and last traded at $99.5910, with a volume of 200121 shares changing hands. The stock had previously closed at $97.57.

Several other research firms have also recently issued reports on MNST. TD Cowen upped their price objective on Monster Beverage from $90.00 to $95.00 and gave the company a “hold” rating in a research report on Wednesday, July 8th. Royal Bank Of Canada lifted their target price on Monster Beverage from $88.00 to $97.00 and gave the stock an “outperform” rating in a report on Wednesday, July 8th. Evercore boosted their price target on Monster Beverage from $90.00 to $95.00 and gave the stock an “outperform” rating in a research note on Friday, May 8th. Citigroup reaffirmed a “buy” rating and set a $113.00 price target (up from $100.00) on shares of Monster Beverage in a report on Tuesday. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Monster Beverage in a research report on Thursday, June 18th. Fourteen investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $93.35.

Get Our Latest Research Report on Monster Beverage

Insider Activity at Monster Beverage In related news, CFO Thomas J. Kelly sold 7,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $87.81, for a total value of $614,670.00. Following the sale, the chief financial officer owned 62,553 shares in the company, valued at approximately $5,492,778.93. This trade represents a 10.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Guy Carling sold 19,000 shares of Monster Beverage stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $90.90, for a total transaction of $1,727,100.00. Following the completion of the sale, the chief executive officer directly owned 21,863 shares of the company’s stock, valued at approximately $1,987,346.70. This trade represents a 46.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 178,700 shares of company stock worth $15,457,562 in the last three months. 8.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Monster Beverage A number of institutional investors and hedge funds have recently modified their holdings of the company. Jones Financial Companies Lllp lifted its holdings in Monster Beverage by 397.9% in the first quarter. Jones Financial Companies Lllp now owns 15,201 shares of the company’s stock valued at $890,000 after acquiring an additional 12,148 shares during the period. Sivia Capital Partners LLC boosted its position in Monster Beverage by 247.7% in the second quarter. Sivia Capital Partners LLC now owns 12,986 shares of the company’s stock worth $813,000 after purchasing an additional 9,251 shares during the last quarter. Cresset Asset Management LLC grew its stake in shares of Monster Beverage by 23.9% during the 2nd quarter. Cresset Asset Management LLC now owns 6,652 shares of the company’s stock valued at $417,000 after purchasing an additional 1,281 shares during the period. Federated Hermes Inc. grew its stake in shares of Monster Beverage by 55.9% during the 2nd quarter. Federated Hermes Inc. now owns 4,798 shares of the company’s stock valued at $301,000 after purchasing an additional 1,721 shares during the period. Finally, NewEdge Advisors LLC increased its position in shares of Monster Beverage by 151.7% during the 2nd quarter. NewEdge Advisors LLC now owns 34,075 shares of the company’s stock valued at $2,134,000 after purchasing an additional 20,538 shares during the last quarter. 72.36% of the stock is currently owned by hedge funds and other institutional investors.

Monster Beverage Stock Performance The stock has a market cap of $97.74 billion, a PE ratio of 48.28, a price-to-earnings-growth ratio of 3.22 and a beta of 0.53. The company’s 50-day moving average price is $91.75 and its 200 day moving average price is $82.78.

Monster Beverage’s stock is going to split before the market opens on Tuesday, August 11th. The 2-1 split was announced on Wednesday, July 8th. The newly minted shares will be distributed to shareholders after the closing bell on Monday, August 10th.

Monster Beverage (NASDAQ:MNST – Get Free Report) last posted its quarterly earnings data on Friday, May 8th. The company reported $0.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.53 by $0.05. Monster Beverage had a net margin of 23.11% and a return on equity of 26.86%. The company had revenue of $2.32 billion for the quarter, compared to the consensus estimate of $2.16 billion. During the same quarter last year, the firm posted $0.47 earnings per share. The firm’s revenue was up 22.6% compared to the same quarter last year. On average, sell-side analysts anticipate that Monster Beverage Corporation will post 2.3 earnings per share for the current fiscal year.

Monster Beverage declared that its board has authorized a stock buyback program on Friday, May 15th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 0.6% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

About Monster Beverage (Get Free Report)

Monster Beverage Corporation (NASDAQ: MNST) is an American beverage company best known for its Monster Energy brand of energy drinks. The company’s product portfolio centers on carbonated energy beverages and a range of complementary ready-to-drink offerings, including energy coffees, hydration beverages and other flavored functional drinks. Monster markets multiple sub-brands and flavor variants to address different consumer segments and consumption occasions.

Originally organized around the Hansen’s Natural line of juices and sodas, the company pivoted toward the energy drink category and formally adopted the Monster Beverage name in the early 2010s to reflect its strategic focus.

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Monster Beverage (MNST - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

As such, the Zacks rating upgrade for Monster Beverage is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Monster Beverage imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Monster BeverageFor the fiscal year ending December 2026, this energy drink maker is expected to earn $2.31 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Monster Beverage. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.1%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Monster Beverage to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Monster Energy (MNST) positions its beverages as productivity tools, not just thirst-quenchers, appealing to a broad consumer base. MNST leverages the universal desire for increased daily productivity, promising consumers a perceived edge in extracting more from each day. The investment thesis centers on MNST's ability to market its products as essential for productivity, enhancing perceived value beyond taste.

Key Takeaways MNST is benefiting from strong global energy drink demand and broad-based international expansion. Monster Beverage is driving growth through new product launches and rising demand for zero-sugar offerings.MNST's Monster Energy Drinks segment posted 22.8% currency-adjusted sales growth in first-quarter 2026. Monster Beverage Corporation (MNST - Free Report) continues to benefit from the sustained expansion of the global energy drinks category and its steady cadence of product innovations. Robust consumer demand across key markets has supported strong momentum in MNST’s core energy portfolio. With category trends remaining favorable worldwide, the company is well-positioned to maintain its growth trajectory and continue gaining market share.

In first-quarter 2026, the Monster Energy Drinks segment's sales grew 22.8% on a currency-adjusted basis. Monster Beverage continues to leverage the Coca-Cola system to broaden distribution and improve execution across regions. International expansion, operational efficiency and product innovation are driving the company's overall performance.

Product launches remain central to Monster Beverage’s strategy to expand usage occasions and keep its core franchises relevant. In the United States during first-quarter 2026, the company highlighted launches such as Ultra Punk Punch, Juice Monster Voodoo Grape, Strawberry Shots in full sugar and zero sugar, and a nationwide rollout of Lando Norris Zero Sugar. Management also noted that the Ultra brand family grew 20% in the quarter and Ultra White grew 34%, based on Nielsen, underscoring continued consumer shift toward zero-sugar options.

FLRT entered select channels in late March, and Storm, a wellness-focused brand, began rolling out in early May 2026, targeting new consumers rather than only existing energy users. Internationally, management cited Juice Monster Viking Berry as the most successful innovation launch in EMEA, with additional zero-sugar athlete editions rolling into more markets. By using innovation to support both new and existing SKUs, Monster Beverage can drive incremental volume without relying solely on pricing.

At its core, Monster Beverage will continue to benefit from steady growth in the global energy drink market, supported by strong demand across convenience stores and other key retail channels. Its efforts to advance innovation, expand its international presence and enhance operational efficiency are expected to further strengthen its performance.

MNST’s Price Performance, Valuation and EstimatesShares of Monster Beverage have gained 29% in the past six months against the industry’s rally of 15.4%.

Image Source: Zacks Investment Research

From a valuation standpoint, MNST trades at a forward price-to-earnings ratio of 39.64X compared with the industry’s average of 19.29X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MNST’s 2026 and 2027 EPS indicates year-over-year growth of 12.1% and 12.8%, respectively. The company’s EPS estimates for 2026 and 2027 have been stable in the past 30 days.

Image Source: Zacks Investment Research

Monster Beverage currently carries a Zacks Rank #3 (Hold).

Stocks to Consider in the Consumer Staples Space The Chefs' Warehouse, Inc. (CHEF - Free Report) , which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Chefs' Warehouse's current financial-year sales indicates growth of 8.3% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.

Nomad Foods Limited (NOMD - Free Report) , which manufactures and distributes frozen foods, currently carries a Zacks Rank #2 (Buy).

The consensus estimate for Nomad Foods’ current financial-year sales is expected to rise 0.5% from the year-ago reported figure. NOMD delivered a trailing four-quarter earnings surprise of 8.6%, on average.

Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED delivered an average earnings surprise of 65.5% in the last reported quarter.

The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 26% from the year-ago number.

Investors interested in stocks from the Beverages - Soft drinks sector have probably already heard of Fomento Economico (FMX - Free Report) and Monster Beverage (MNST - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Fomento Economico is sporting a Zacks Rank of #1 (Strong Buy), while Monster Beverage has a Zacks Rank of #3 (Hold). This means that FMX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

FMX currently has a forward P/E ratio of 21.98, while MNST has a forward P/E of 40.19. We also note that FMX has a PEG ratio of 0.73. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MNST currently has a PEG ratio of 3.06.

Another notable valuation metric for FMX is its P/B ratio of 2.62. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MNST has a P/B of 10.41.

These metrics, and several others, help FMX earn a Value grade of B, while MNST has been given a Value grade of F.

FMX stands above MNST thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FMX is the superior value option right now.

On June 16, 2026, we present a DCF analysis for Monster Beverage Corp MNST , a company that has shown impressive price performance recently, with a year-to-date increase of 21.6% and a one-year increase of 47.8%. The current price of MNST stands at $93.23.

DCF Earnings-based intrinsic value: $44.24 vs price: $93.23 (margin of safety: -110.7%) DCF FCF-based intrinsic value: $40.87 vs price: $93.23 (second opinion margin of safety: -128.1%) GF Score™: 98/100 indicates high reliability of the DCF inputs What Is MNST Worth? DCF Earnings-Based Model The DCF earnings-based model for Monster Beverage Corp utilizes a two-stage growth model. In the first stage, we assume a robust growth rate of 13.7% for the next ten years, followed by a terminal growth rate of 4% for the subsequent ten years. The discount rate applied is 11%, which is derived from the risk-free rate and equity risk premium.

Parameter Value Current EPS (TTM, excl. non-recurring) $2.16 10-Year Growth Rate 13.7% 10-Year Treasury Rate 4.44% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the DCF earnings-based model is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 13.7%, discounted at 11% $24.71 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $19.53 Intrinsic Value Growth + Terminal $44.24 With the current price at $93.23, the intrinsic value of $44.24 indicates that MNST is significantly overvalued, with a margin of safety of -110.7%. It is important to note that GuruFocus uses EPS without non-recurring items, as research shows stock prices correlate more closely with earnings than free cash flow. For further details, visit the MNST DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for Monster Beverage Corp is calculated at $40.87. When comparing this with the earnings-based intrinsic value of $44.24, both models agree that the stock is significantly overvalued, with a margin of safety of -128.1%.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for Monster Beverage Corp is $76.63, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure calculated from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings, DCF FCF, and GF Value™—indicate that MNST is overvalued. For more insights, visit the GF Value™ page.

What Does MNST's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).

Metric Rating GF Score™ 98/100 Financial Strength 10/10 Profitability 10/10 Growth 10/10 Valuation 6/10 Momentum 9/10 With a predictability rank of 2/5 stars, the DCF model's reliability for MNST is lower compared to stocks with higher predictability ratings. For more information, visit the MNST stock page.

Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as MNST, produce less reliable DCF estimates. The terminal growth rate of 4% used in this analysis is a simplifying assumption that may not reflect future realities.

What This Means for Investors In conclusion, all three valuation models—DCF earnings, DCF FCF, and GF Value™—indicate that Monster Beverage Corp is significantly overvalued. Investors should exercise caution when considering this stock. For the full DCF analysis, visit the MNST DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is MNST's intrinsic value based on DCF?

Answer: earnings-based $44.25, FCF-based $40.87

Is MNST overvalued or undervalued?

Answer: Based on DCF and GF Value™ consensus, MNST is overvalued.

How reliable is the DCF model for MNST?

Answer: The predictability rank is 2/5, indicating lower reliability for the DCF model.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

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