10 Best Alcohol Stocks to Buy Now

2. Monster Beverage Corporation (NASDAQ:MNST)

Number of Hedge Fund Holders: 43

Next up on our list of Best Alcohol Stocks is Monster Beverage Corporation (NASDAQ:MNST), an American beverage company that manufactures energy drinks including Monster Energy, Relentless, and Burn. It was announced in 2022 that the beverage giant had acquired the CANarchy Craft Brewery Collective in a deal worth $330 million. The acquisition gave Monster ownership of CANarchy’s craft breweries including Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters, and Wasatch.

The company also announced on the 31st of January 2024 that effective immediately, CANarchy Craft Brewery Collective would operate under the name Monster Brewing Company. CANarchy’s new alcohol products, The Beast Unleashed™ and Nasty Beast™ Hard Tea, now represent the majority of the California-based company’s alcohol beverage sales. This change will better align the business with Monster’s brand equity, particularly as these products are expected to continue to play an increasingly important role in CANarchy’s future activities.

The California-based company achieved record first-quarter net sales of $1.9 billion in Q1 2024, up 11.8% from the same quarter last year. Net income also jumped by 11.2% to $442 million. MNST’s growth is witnessed across all segments and geographic areas, indicating a strong demand for its products. The company also continues to be the market leader in the energy drinks category for all outlets combined in the United States in both the 13-week and 4-week periods ended April 20th, 2024. It must be remembered that Monster Energy accounts for around 92% of the company’s revenue and this all-important segment also grew by 10.7% during the first quarter. Monster Beverage Corporation also intends to seek authorization for share repurchases of up to $3 billion, shifting towards debt financing for capital structure. With a sustainable business model and an increasing demand for its products, Monster Beverage Corporation (NASDAQ:MNST) has grown revenues over the past 15 years at an impressive CAGR of 13.8%, significantly higher than S&P 500’s approximate CAGR of 5.2%

Shares of MNST were held by 43 hedge funds at the end of Q1 2024, with Broadwood Capital holding the largest stake of over 8.29 million shares valued at around $491.77 million.