Monster Still Has Upside in the Energy Drink Business

The energy drink business has exploded over the past decade and Monster Beverage (NASDAQ: MNST  ) has been one of the biggest beneficiaries. The good news today is that according to analysts at Wells Fargo there's still room for growth. A research report released today was optimistic about energy drinks driving beverage growth and that's good news for Monster.  

Holding off the big dogs
What's different about the energy drink business from other drink markets is that Coca-Cola (NYSE: KO  ) and Pepsi (NYSE: PEP  ) have had very little success getting into it. They're usually able to muscle in and fight off smaller rivals -- in this case, Monster, 5-Hour Energy, and Red Bull -- but the energy business is playing out differently. These companies have been able to hold off the big dogs and grow into an expanding market and building strong brands along the way.

MNST Revenue Quarterly YoY Growth Chart

Source: MNST Revenue Quarterly YoY Growth data by YCharts.

The growth has been amazing, but for investors looking to buy the stock the good news is that Monster is trading at a much more reasonable price than it has in the past. If Wells Fargo is right and the energy drinks business continues to grow, this price could be a steal, especially if the company can expand into new markets. Monster is trying to be more than just a giant can of energy, adding new flavors and even a line of "Rehab" drinks. That has broadened appeal and kept growth at a high level. 

First-quarter earnings will be out in May and that's when we'll find out just how much fuel is left in this growth engine. 

More on Monster

The stakes are high for Monster Beverage these days. The stock had been nothing short of a rocket, but recent developments have sent shares spiraling downward. Health scares sparked a number of investigations at the state and federal level into the energy drink's role in several fatalities. With the company's value slashed in half, investors are wondering whether Monster Beverage is a value or a bust in the fast-growing energy drink category. Find out now in our brand-new premium research report, which details all the ins and outs you need to know about Monster Beverage. Click here now to claim your copy and start reading today.


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