Stock

Look to buy Monster Beverage on a retracement as it breaks key resistance

Monster Beverage Corporation (NASDAQ:MNST) stock rose past a key resistance of $88 on Friday. On Monday, the stock accelerated gains in premarket before retreating slightly.

In its May 5 financial report, revenue rose to $1.52 billion in the first quarter. The revenue was higher than estimates of $1.43 billion. However, the diluted earnings per share were $0.55, lower than $0.59 in the prior year. The earnings also missed expectations of $0.61 per share. The stock has been surging since then.

On Wall Street, Monster Energy has been rated a buy by 24 analysts. The rating has held since April, which has coincided with strong stock gains. The analysts have a price target of $100, which represents a 12% upside potential from the current $89. The consensus low estimate is $88, which implies that the stock has already surpassed the local bottom price.

Besides, despite the mixed earnings, Monster remains on a bull run. The stock is up 7.87% in the month and is poised for further gains after breaking above the $88 level.

Monster breaks above $88 support

Source – TradingView

Technically, Monster Beverages has traded past a key resistance at $88, which could become a new support. The stock is retreating after facing resistance close to $90. The established resistance is at $93. The stock could reverse slightly to the support before continuing up to $93. If the current momentum is sustained, the stock could continue higher, up to $97. However, our first target will be $93.

Concluding thoughts

Investors should buy Monster after it finishes the current retracement once it settles at or close to $88. The key target is at $93, but the stock could rise up to $97.

The post Look to buy Monster Beverage on a retracement as it breaks key resistance appeared first on Invezz.

Disclaimer: MonopolyWinnersUpdates.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 MonopolyWinnersUpdates.com. All Rights Reserved.

To Top