Latest news with #consumerstaples
Yahoo
24-05-2025
- Business
- Yahoo
Goldman Sachs Considers Monster Beverage (MNST) A Highly Appealing Investment
On May 22, Goldman Sachs analyst Bonnie Herzog called Monster Beverage Corp. (NASDAQ:MNST) among the most appealing growth opportunities within the consumer staples sector. With that view, he reiterated a Buy rating with a price target of $67. The analyst estimates that the company will achieve an EPS of $1.86 for FY 2025, which indicates a 25% year-over-year growth and aligns with the current consensus estimates. Monster Beverage's Q1 2025 sales, reported in the second week of May, declined 2.3% year-over-year to $1.85 billion and missed consensus expectations. The decline was due to weakness in the Alcohol Brands segment and forex impact, excluding which, the sales were up around 2%. However, better cost management led to a 180 basis point improvement in the adjusted operating margin of 31.5%, and an EPS of $0.47, which was broadly in line with street estimates. Management noted that sales increased robustly in April, which bodes well for the next quarter. Moreover, the company is focusing on margin improvement using pricing strategies and supply chain improvements. At the results call, Chairman and Co-CEO Rodney C. Sacks, stated: 'We launched a number of new products in the first quarter. In the United States, Monster Energy Ultra Blue Hawaiian has rapidly become one of our top selling products. Innovation globally continues to play a key role in our strategy and we maintain a robust innovation pipeline.' With better revenue growth supported by innovation, Bonnie Herzog believes that the company has substantial scope to grow its gross profit and, in turn, earnings. Monster Beverage Corp. (NASDAQ:MNST), through its subsidiaries, develops and markets energy drinks, including Monster Energy drinks. While we acknowledge the potential of MNST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MNST and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
Yahoo
24-05-2025
- Business
- Yahoo
Goldman Sachs Considers Monster Beverage (MNST) A Highly Appealing Investment
On May 22, Goldman Sachs analyst Bonnie Herzog called Monster Beverage Corp. (NASDAQ:MNST) among the most appealing growth opportunities within the consumer staples sector. With that view, he reiterated a Buy rating with a price target of $67. The analyst estimates that the company will achieve an EPS of $1.86 for FY 2025, which indicates a 25% year-over-year growth and aligns with the current consensus estimates. Monster Beverage's Q1 2025 sales, reported in the second week of May, declined 2.3% year-over-year to $1.85 billion and missed consensus expectations. The decline was due to weakness in the Alcohol Brands segment and forex impact, excluding which, the sales were up around 2%. However, better cost management led to a 180 basis point improvement in the adjusted operating margin of 31.5%, and an EPS of $0.47, which was broadly in line with street estimates. Management noted that sales increased robustly in April, which bodes well for the next quarter. Moreover, the company is focusing on margin improvement using pricing strategies and supply chain improvements. At the results call, Chairman and Co-CEO Rodney C. Sacks, stated: 'We launched a number of new products in the first quarter. In the United States, Monster Energy Ultra Blue Hawaiian has rapidly become one of our top selling products. Innovation globally continues to play a key role in our strategy and we maintain a robust innovation pipeline.' With better revenue growth supported by innovation, Bonnie Herzog believes that the company has substantial scope to grow its gross profit and, in turn, earnings. Monster Beverage Corp. (NASDAQ:MNST), through its subsidiaries, develops and markets energy drinks, including Monster Energy drinks. While we acknowledge the potential of MNST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MNST and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
Globe and Mail
19-05-2025
- Business
- Globe and Mail
2 Monster Stocks to Hold for the Next 10 Years
Consumer staples companies sell things that people tend to buy regardless of the economic environment and stock market dynamics. They are looked at as safe-haven investments for that reason. But two of the industry's best-known companies are struggling today and, if you think long term, that is likely to be a buying opportunity. Here's why these two monster food stocks are buy-and-hold investments for the next decade. 1. PepsiCo is the snack king PepsiCo (NASDAQ: PEP) is named after its famous soda brand. Beverages are a very important business, but the company is the No. 2 player in the beverage industry. It is the No. 1 company in salty snacks, however, with its Frito-Lay brand. It also has a material packaged food business in Quaker Oats. All in, it is one of the most diversified consumer staples food companies you can buy, with strong innovation, distribution, and marketing skills. And still the company's business, like all others, goes through good times and bad. Right now, PepsiCo is facing bad times, with top-line growth cooling after a spurt of inflation-driven growth coming out of the coronavirus pandemic. Frito-Lay is also facing some headwinds as snacking trends appear to be changing. This isn't the first time PepsiCo has dealt with adversity over the last 53 years. That's how long it has increased its dividend, proving that this Dividend King knows how to survive. You have to have a good business model that gets executed well in both good times and bad to achieve a dividend record like that. The key today is that PepsiCo isn't sitting around idle, hoping for things to change. It is focused on cutting costs, improving efficiencies, and adjusting its mix to better appeal to consumers. That last point includes everything from changing the size of its packages to buying entire companies, like Siete, which makes Mexican-American fare, and Poppi, which makes probiotic beverages. Siete and Poppi are on-trend brands that will benefit from being plugged into PepsiCo's powerful distribution system. It may take a few years for PepsiCo to work through to better days. But with a historically high 4.4% dividend yield, investors are being paid very well to wait it out. 2. Hershey is a confectionary giant While Hershey (NYSE: HSY) isn't the largest consumer staples company around, it is the U.S. leader in the confections space. You almost certainly know its namesake brand and its powerful Reese's franchise. While it doesn't have the same Dividend King status as PepsiCo, Hershey's dividend has trended steadily higher over time. The dividend yield is a historically high 3.4% or so today. The big problem facing Hershey right now is an astonishing rise in cocoa prices. Cocoa, a somewhat volatile commodity even during the best of times, is a key input into chocolate. The rising costs for cocoa will be a major headwind to margins in the near term. Investors have dumped the stock because of the high cocoa prices it is facing. There's no quick fix here, given the nature of the cocoa market (cocoa comes from trees, which take time to grow). So the issue could linger. What hasn't changed, however, is Hershey's dominant industry position, or its plans to grow by acquiring non-chocolate confection businesses and salty snack brands. The key to this long-term approach, however, is couched in the fact that The Hershey Trust, a charitable organization, basically has voting control of Hershey the company. This means that Hershey the company can think long term even when Wall Street is thinking short term because The Hershey Trust desires a reliable and growing dividend to support its philanthropic efforts. That's probably what you want, too, but to support your spending needs in retirement. If you don't mind collecting a lofty dividend yield from a confectionary giant, waiting for Hershey to muddle through the current cocoa headwinds could be for you. PepsiCo and Hershey are two monster dividend stocks The average consumer staples stock yields around 2.5% today. Both PepsiCo and Hershey provide way more income. And while they each face specific business headwinds that have left them out of favor with investors, each company remains a giant in the niches where they compete. If you think in decades and not days when you buy dividend stocks, PepsiCo and Hershey should be on your buy list today. Should you invest $1,000 in Hershey right now? Before you buy stock in Hershey, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hershey wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor 's total average return is975% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
