Monster Beverage Cor

MNST
Delayed Nasdaq - 05/17 10:00:00 pm
63.63USD
-0.47%

Helped by a technical support level

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David Meurisse
Contributor / Partner

Strategy published on : 03/15/2019 | 09:18

long trade
Stop-loss triggered

Entry price : 60.13$
Target : 65.9$
Stop-loss : 57.7$
Potential : 9.6%

The recent downturn has taken Monster Beverage Corp shares close to a medium term support level around 57.36 USD. The timing for a long trade in the stock appears good.
Investors have an opportunity to buy the stock and target the $ 65.9.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The group's activity appears highly profitable thanks to its outperforming net margins.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.

● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.

● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The stock is in a well-established, long-term rising trend above the technical support level at 55.77 USD


Weaknesses

● The company's earnings releases usually do not meet expectations.

● The company's "enterprise value to sales" ratio is among the highest in the world.

● With an expected P/E ratio at 29.52 and 25.98 respectively for both the current and next fiscal years, the company operates with high earnings multiples.

Zonebourse.com 2019
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