Motley Fool contributor Selena Maranjian urges caution on Monster Beverage: its forward P/E of 34 is above its five-year average of 31, and its price-to-sales ratio is 9.5 versus 8.4. She also cites competition, inflation and analysts’ 10% revenue-growth estimate for 2027.
Maranjian says Monster could be worth considering if its share price falls. The company uses a capital-light model, making concentrates for bottling and distribution partners instead of operating its own costly system, and has a multiyear distribution deal with Coca-Cola.
The article reports that Monster’s shares averaged annual gains of nearly 18% over 15 years and 25% over 25 years; it says $10,000 invested over 25 years would have grown to $2.8 million. Maranjian says she owns none of the stocks mentioned, while The Motley Fool discloses that it holds and recommends Monster.
