{"id":1953,"date":"2025-06-21T09:20:14","date_gmt":"2025-06-21T09:20:14","guid":{"rendered":"https:\/\/www.europesays.com\/us\/1953\/"},"modified":"2025-06-21T09:20:14","modified_gmt":"2025-06-21T09:20:14","slug":"meet-the-monster-stock-that-continues-to-crush-the-market","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/1953\/","title":{"rendered":"Meet the Monster Stock That Continues to Crush the Market"},"content":{"rendered":"\n<ul class=\"yf-1woyvo2\">\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">Monster Beverage has grown its top line at a 20% compound annual growth rate for 30 years, helping it become the top stock over that time.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">Its growth is now challenged, seemingly limiting the stock&#8217;s upside. But investors can&#8217;t forget about an important ace up its sleeve.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\"><a class=\"link \" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=480e482c-8751-434a-a292-ccf8d17b86fb&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-nonbbn-kp%3Faid%3D8867%26source%3Disaedikp0000053%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Dkeypoints_pitch_feed_yahoo%26ftm_pit%3D17670\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 stocks we like better than Monster Beverage \u203a;elm:context_link;itc:0;sec:content-canvas\">10 stocks we like better than Monster Beverage \u203a<\/a><\/p>\n<\/li>\n<\/ul>\n<p class=\"yf-1090901\">I&#8217;ve written articles with today&#8217;s headline multiple times. In the past, I&#8217;ve highlighted under-the-radar companies that have crushed the returns of the <strong>S&amp;P 500<\/strong> over the long term, including companies such as <strong>Casella Waste Systems<\/strong>, <strong>Comfort Systems USA<\/strong>, and <strong>Axon Enterprise<\/strong>. Over the last 10 years, this trio is each up about 2,000% compared to just a 182% return for the S&amp;P 500.<\/p>\n<p class=\"yf-1090901\">I&#8217;m back at it today with another market-crushing stock idea that simply doesn&#8217;t get enough attention. And when it comes to monster stocks of the past 20 years, I can think of no better candidate than <strong>Monster Beverage<\/strong> (NASDAQ: MNST) stock itself &#8212; it&#8217;s up more than 7,000% over the last two decades.<\/p>\n<p>    <img fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"A man looks at his computer with satisfaction.\" loading=\"eager\" height=\"538\" width=\"960\" class=\"yf-1vr77wf loader\"\/> Image source: Getty Images.      <\/p>\n<p class=\"yf-1090901\">As of this writing, Monster stock is up 20% in 2025 compared with a 2% gain for the S&amp;P 500. So Monster is back to beating the market and is worth looking at with fresh eyes.<\/p>\n<p class=\"yf-1090901\">Monster stock is the top <a href=\"https:\/\/www.fool.com\/terms\/p\/publicly-traded-companies\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ce72f3ef-2dd9-4f4c-ae04-1ca454249ae0\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:publicly traded company;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">publicly traded company<\/a> of the last 30 years, according to MacroTrends. And the reason is simple: Its growth has been spectacular. In 1994, the company generated just $29 million in full-year revenue. In 2024, that number was $7.5 billion &#8212; roughly a 20% compound annual growth rate (<a href=\"https:\/\/www.fool.com\/terms\/c\/compound-annual-growth-rate\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ce72f3ef-2dd9-4f4c-ae04-1ca454249ae0\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:CAGR;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">CAGR<\/a>) over 30 years.<\/p>\n<p class=\"yf-1090901\">It went public in 1990 as Hansen Natural, a fruit juice business. In 1997, it launched its first energy drink back when there really wasn&#8217;t even an energy-drink category. The Monster brand eventually came in 2002 and the company never looked back.<\/p>\n<p class=\"yf-1090901\">Monster was profitable early and consistently. From 2000 through 2010, the company was profitable the entire time and averaged a profit margin of about 11%. This was during a red-hot growth phase in which the brand went nationwide and worldwide.<\/p>\n<p class=\"yf-1090901\">With those profits, Monster has bought back a lot of stock &#8212; the share count is down about 20% over the last nine years. And it&#8217;s also diversified its business by buying other companies, such as in 2022 when it acquired the craft beer company now known as Monster Brewing Company.<\/p>\n<p class=\"yf-1090901\">With growth, profits, and shareholder friendly moves, Monster stock has been, well, a monster stock over the long term.<\/p>\n<p class=\"yf-1090901\">As mentioned at the beginning, Monster stock is crushing the S&amp;P 500 again in 2025. There are a couple of reasons for this. First, sales growth has slowed, which dropped the stock down to an unusually low price-to-sales (P\/S) valuation of about 7 at the start of the year &#8212; it usually trades closer to 8 or 9. But an acceleration in its growth rate in April boosted investor confidence and consequently boosted the valuation back to normal.<\/p>\n<p> Story Continues <\/p>\n<p>   <a href=\"https:\/\/ycharts.com\/companies\/MNST\/chart\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"MNST PS Ratio Chart\" loading=\"lazy\" height=\"441\" width=\"720\" class=\"yf-1vr77wf loader\"\/><\/a> <a href=\"https:\/\/ycharts.com\/companies\/MNST\/ps_ratio\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:MNST PS Ratio;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">MNST PS Ratio<\/a> data by <a href=\"https:\/\/ycharts.com\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:YCharts;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">YCharts<\/a>    <\/p>\n<p class=\"yf-1090901\">I don&#8217;t expect that same valuation boost for Monster stock from here. If it&#8217;s going to outperform the market for the rest of 2025 and beyond, those returns are going to have to be fueled by the business.<\/p>\n<p class=\"yf-1090901\">To be clear, I have concerns when it comes to Monster stock being a good investment from here. And the biggest concern I have is growth. Over the past three years, it&#8217;s averaged a single-digit revenue growth rate. And while sales did pick up in April, management believes it still lost market share in the important convenience and gas store channels.<\/p>\n<p class=\"yf-1090901\">Moreover, Monster&#8217;s aforementioned foray into the beer market hasn&#8217;t paid off. In fact, beer sales are down and pulling down growth for the overall business.<\/p>\n<p class=\"yf-1090901\">This problem could be hard to solve. Consider the Monster is already the second-biggest player in the energy drink space, only trailing Red Bull. And the business also generates more than $2 billion in international sales annually, meaning it&#8217;s already largely expanded overseas. In short, Monster is massive and ubiquitous already, which doesn&#8217;t leave any easy growth ahead. And this means the stock could struggle.<\/p>\n<p class=\"yf-1090901\">However, to end on a more positive note, investors need to remember one thing with Monster: It has a pristine balance sheet with nearly $2 billion in cash and only $200 million in debt. Not to mention, it&#8217;s earned more than $1.5 billion in profit over the last 12 months. That&#8217;s a big advantage.<\/p>\n<p class=\"yf-1090901\">My point is, Monster&#8217;s growth outlook isn&#8217;t necessarily great. And there are certainly better stock ideas out there. But with billions of dollars at its disposal, I&#8217;m reluctant to count out Monster when it comes to creating market-beating shareholder value. It may take time and investors may do well to take advantage of any dips. But Monster remains a strong business with a great track record. It&#8217;s often a good idea to give companies like this the benefit of the doubt.<\/p>\n<p class=\"yf-1090901\">Before you buy stock in Monster Beverage, consider this:<\/p>\n<p class=\"yf-1090901\">The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a0<strong><a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=17ab64ff-80b0-4ad4-bbfe-ddf415000431&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001088%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_yahoo%26ftm_pit%3D17500&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ce72f3ef-2dd9-4f4c-ae04-1ca454249ae0\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 best stocks;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">10 best stocks<\/a><\/strong> for investors to buy now\u2026 and Monster Beverage wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n<p class=\"yf-1090901\"><strong>Consider when\u00a0<strong>Netflix<\/strong>\u00a0made this list on December 17, 2004&#8230; if you invested $1,000 at the time of our recommendation,\u00a0<strong>you\u2019d have $659,171<\/strong>!*\u00a0<\/strong><strong>Or\u00a0when\u00a0<strong>Nvidia<\/strong>\u00a0made this list on April 15, 2005&#8230; if you invested $1,000 at the time of our recommendation,\u00a0<strong>you\u2019d have $891,722<\/strong>!*<\/strong><\/p>\n<p class=\"yf-1090901\"><strong>Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is\u00a0995% \u2014 a market-crushing outperformance compared to\u00a0172%\u00a0for the S&amp;P 500. Don\u2019t miss out on the latest top 10 list, available when you join\u00a0Stock Advisor.<\/strong><\/p>\n<p class=\"yf-1090901\"><a class=\"link \" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=17ab64ff-80b0-4ad4-bbfe-ddf415000431&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001088%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D17500%26ftm_veh%3Darticle_pitch_feed_yahoo%26company%3DMonster%2520Beverage&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ce72f3ef-2dd9-4f4c-ae04-1ca454249ae0\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:See the 10 stocks \u00bb;elm:context_link;itc:0;sec:content-canvas\"><strong>See the 10 stocks \u00bb<\/strong><\/a><\/p>\n<p class=\"yf-1090901\">*Stock Advisor returns as of June 9, 2025<\/p>\n<p class=\"yf-1090901\"><a href=\"https:\/\/www.fool.com\/author\/2631\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Jon Quast;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Jon Quast<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Axon Enterprise, Comfort Systems Usa, and Monster Beverage. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:disclosure policy;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">disclosure policy<\/a>.<\/p>\n<p class=\"yf-1090901\"><a href=\"https:\/\/www.fool.com\/investing\/2025\/06\/21\/meet-the-monster-stock-that-continues-to-crush-the\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Meet the Monster Stock That Continues to Crush the Market;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Meet the Monster Stock That Continues to Crush the Market<\/a> was originally published by The Motley Fool<\/p>\n","protected":false},"excerpt":{"rendered":"Monster Beverage has grown its top line at a 20% compound annual growth rate for 30 years, helping&hellip;\n","protected":false},"author":3,"featured_media":1954,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[64,2728,135,2725,2726,2727,67,132,68],"class_list":{"0":"post-1953","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-compound-annual-growth-rate","10":"tag-markets","11":"tag-monster-beverage","12":"tag-monster-stock","13":"tag-the-monster","14":"tag-united-states","15":"tag-unitedstates","16":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114720618761675480","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/1953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=1953"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/1953\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/1954"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=1953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=1953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=1953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}