Monster Beverage Corp (MNST)’s Hiding Under the Bed: Starbucks Corporation (SBUX)

Foolish bottom line
With weakness in a number of drink categories including its Worx energy shots down substantially as well, it’s clear Monster is facing a number of headwinds. Considering the stock’s pullback over the last year, shares don’t seem in danger of falling severely, but still carry a relatively lofty valuation. If sales continue to hover in the 15% range, shares will not be able to reach their former glory.

Going ahead, the safety questions and ability to claim market share in international markets will determine Monster’s success. But, as the last two quarters seem to indicate, Monster’s days as a fast-growing juggernaut appear to be over.

The article Monster’s Hiding Under the Bed originally appeared on Fool.com and is written by Jeremy Bowman.

Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends Monster Beverage and Starbucks. The Motley Fool owns shares of Monster Beverage and Starbucks.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.