Monster Beverage Cor

MNST
Real-time BATS EXCHANGE - 10/23 04:00:07 pm
56.21USD
+0.52%

The stock forcefully approaches new pivot levels

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David Meurisse
Contributor / Partner

Strategy published on : 06/07/2019 | 10:02

long trade
Stop-loss triggered

Entry price : 65.73$
Target : 74.7$
Stop-loss : 59.7$
Potential : 13.65%

Shares in Monster Beverage Corp are approaching an important resistance level. The stock's technical chart suggests that this pivot level will be broken.
Investors have an opportunity to buy the stock and target the $ 74.7.

Summary

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


Strengths

● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.

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

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.


Weaknesses

● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.

● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

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

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 31.05 times its estimated earnings per share for the ongoing year.

Zonebourse.com 2019
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