And the energy drink manufacturer could jump more due to a recent acquisition that expands its product portfolio. But another likely reason is Big Money lifting the stock.
Monster Beverage Attracts Big Money
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And Monster Beverage has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals MNST has made the last year.
The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:
In the last year, the stock attracted nine Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out the technical action grabbing my attention:
- 1-month outperformance vs. Consumer Staples Select Sector SPDR ETF (+4.3% vs. XLP)
Outperformance is important for leading stocks.
Monster Beverage Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Monster Beverage has been growing sales well and sports a healthy profit margin. Take a look:
- 1-year sales growth rate (+20.5%)
- Profit margin (+24.9%)
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, MNST has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
MNST has a lot of qualities that are attracting Big Money. It’s made the Top 20 report 64 times since 2007, with its first appearance on 10/08/2007…and gaining 789.5% since. The blue bars below show when Monster Beverage was a top pick:
It’s been a top stock in the consumer staples sector according to the MAPsignals process. I wouldn’t be surprised if MNST makes additional appearances in the years to come. Let’s tie this all together.
Monster Beverage Price Prediction
The Monster Beverage rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. 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 positions in MNST at the time of publication.
Learn more about the MAPsignals process here.