Is This Monster Unstoppable?
Monster Beverage Corp. (NASDAQ:MNST) is having a scary good year. After nearly doubling its year-ago stock price, shares of Monster surged as much as 12 percent to top $73.35 on Thursday after the company reported better-than-expected first-quarter earnings on Wednesday.
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The company reported net income of $76.1 million or 41 cents per share, compared with $55 million and 29 cents per share in the year-ago quarter. Revenues jumped 28 percent to $454.6 million. The company topped analysts’ expectations of 38 cents earnings per share on revenues of $447.1 million.
This is all good news for current shareholders, but according to some analysts, now may not be the time to buy in. With the huge gains thus far and a forward price-to-earnings multiple of 35, some analysts are saying that there is not much room for growth right now. Last year, companies scoffed at paying a premium for Monster, but with some companies raising price targets past $80 per share, an acquisition might be more feasible.
Still, Monster is showing signs of continued improvement in several areas. Monster is well ahead of rivals Pepsico Inc. (NYSE:PEP) and The Coca-Cola Co. (NYSE:KO) when it comes to controlling the fast-growing energy drink market.
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