Monster Beverage Corporation (MNST), headquartered in Corona, California, is a leading provider in the U.S. energy drink market. Valued at $50.44 billion by market cap, Monster Beverage plays a crucial role in the beverage industry, offering a wide range of energy drinks that fuel active lifestyles and boost performance. 

Companies worth $10 billion or more are generally considered "large-cap" stocks, and Monster Beverage exemplifies this category, signifying its substantial size, stability, and influence in the energy drink industry. By continually expanding its product lineup and driving innovation in the beverage industry, MNST remains a critical player in the global energy drinks market. 

MNST shares have dropped 20.9% from their 52-week high of $61.22, reached on Mar. 13. Over the past three months, MNST's shares have declined 20.4%, underperforming the broader Nasdaq Composite ($NASX), which gained 10.9% during the same period.

Longer term, MNST is down 16% on a YTD basis and the shares have declined 17.2% over the past 52 weeks. In comparison, the Nasdaq is up 19% in 2024 and 30.5% over the past year.

To confirm the recent bearish price trend, MNST has been trading below its 50-day and 200-day moving average since early April.

MNST stock has underperformed compared to the broader indexes over the past year, facing challenges from macroeconomic factors such as currency fluctuations and industry trends favoring healthier beverage alternatives. The stock marginally declined on the earnings release day but has remained on a downtrend since then.  

Highlighting the contrast in performance, rival The Coca-Cola Company (KO) has outperformed MNST, gaining 6.3% on a YTD basis. However, it lagged behind Nasdaq. 

Analysts are optimistic about MNST's prospects despite its recent underperformance compared to NASX. The stock has a consensus rating of "Moderate Buy" from 21 analysts in coverage. The mean price target of $62.05 reflects a 28.1% premium over current levels.

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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.