10 Best Alcohol Stocks To Buy According to Analysts

7. Monster Beverage Corporation (NASDAQ:MNST)

Stock Upside Potential: 18.43%

Next on our list of the Best Alcohol Stocks is one of the biggest names in the global energy drinks market, Monster Beverage Corporation (NASDAQ:MNST), known for brands like Monster Energy, Relentless, and Burn. The beverage giant also forayed into the alcohol sector in 2022 when it acquired the CANarchy Craft Brewery Collective in a deal worth $330 million. The acquisition gave Monster ownership of CANarchy’s craft breweries, which now operate under the name Monster Brewing Co. Shares of MNST have gained over 46% over the last 5 years, with analysts predicting further gains in the future.

A notable aspect of Monster Beverage Corporation (NASDAQ:MNST) is its strategic partnership with Coca-Cola, which has owned an approximate 16.7% stake in the energy drinks company since 2015. This gives Monster access to Coca-Cola’s vast global distribution network and provides it a competitive edge in international markets.

Monster Energy Beverage Corporation (NASDAQ:MNST) has recently been facing challenges in the domestic market, as the energy drinks market in the US continues to struggle. In Q3 of 2024, the company management also pointed to ‘excess inventory levels’ of its Alcohol Brands segment, suggesting slower sales of those products than expected. However, despite these challenges, Monster has managed to outperform its competitors and improve its market share in the US market both in volume and dollar terms, indicating that the company’s brand strength and aggressive marketing strategies are effective in maintaining its competitive edge.

Monster Energy Beverage Corporation (NASDAQ:MNST)’s globalization strategy also seems to be paying off as international sales now account for approximately 40% of its total revenue, reducing the company’s reliance on the tough domestic market. The international emerging markets are particularly attractive for Monster. As disposable incomes rise in these regions and Western consumer trends gain popularity, the demand for energy drinks is likely to go up. However, such aggressive geographical diversification carries its own risks and the energy drinks giant took a significant revenue hit from the ongoing hyperinflation in Argentina in Q3 2024.