Bloomberg the terminal that traders use has a feature of which stocks have performed best since a particular year. When I was at university, I was always surprised at the results. Today we are going to think back about some of the best-performing stocks, and the answer of the best since 2000 will surprise you.
What is the best-performing stock since 2000?
You’ll probably be surprised to know that the number one stock since 2000 is none other than Monster Beverage Corp. This energy drink company returned an impressive 87,560% from 2000 to 2020, turning every $1 invested into $876. Now, you might be thinking, how did Monster Beverage outdo all the other big names like Apple and Tesla? Well, part of the reason comes from the company’s size. Monster Beverage recorded $92 million in revenue in 2002, while Apple reported $5.7 billion. A smaller company can grow revenue, earnings, and share price much faster than a giant company like Apple. Another factor is that the energy drink business is a lot less capital-intensive than a tech business. This difference, compounded over the years, means that Monster Beverage had hundreds of billions of dollars more to put into growing its business by expanding operations and claiming greater market share. It’s also worth mentioning that Monster Beverage also has a strong financial performance, and a history of delivering consistent revenue and earnings growth, which has attracted investors to the stock also the company has a strong balance sheet, with a relatively low debt-to-equity ratio and a solid cash position, further increasing investor confidence in the company. So there you have it, the little-known energy drink company that left all the household names in the dust. It shows that sometimes the unexpected can be the most profitable.
So who are Monster?
Monster Beverage Corp is an American functional beverage company headquartered in Corona, California. The company markets and sells energy drinks, including Monster Energy, Relentless and Burn.
Monster Beverage’s share price has risen significantly in recent years, due to a variety of factors. One of the main reasons for the rise in share price is the growing demand for energy drinks. As consumers become increasingly health-conscious, they are turning to alternative beverages such as energy drinks to provide them with a boost of energy. This has led to strong growth in sales for Monster Beverage, which in turn has driven the company’s financial performance and stock price.
Another factor that has contributed to the rise in Monster Beverage’s share price is the company’s strong financial performance. Monster Beverage has a history of delivering consistent revenue and earnings growth, which has attracted investors to the stock. Additionally, the company has a strong balance sheet, with a relatively low debt-to-equity ratio and a solid cash position. This has further increased investor confidence in the company and its stock.
Another factor that has contributed to the rise in Monster Beverage’s share price is the company’s strategy of acquisitions and partnerships. The company has been active in making strategic acquisitions and partnerships, which has helped to expand its product offerings and customer base and also helped to diversify its revenue streams.
Finally, there is also a growing trend of investors seeking out companies that have a good prospect of growth, and as a company that has been delivering solid results, Monster Beverage Corp is among those companies that have been able to attract investors to it, which has led to an increase in its share price.
The company is very popular across the world and attracts lots of sales from young people, in part due to their creative marketing campaigns.
Which companies are similar in the UK?
When I was at University, I had the task of analysing the energy drink market in the UK. There are many similar companies, but their financial position is often completely different. Some UK competitors are as follows/
• Red Bull: The popular UK brand is very well-known around the world. Along with the famous Red Bull cans the company also offers sugar-free alternatives. The drink has been popularised in some countries to also be consumed alongside alcohol. It also has some sports starts that are related to the brand such as Trent Alexander Arnold who plays for Liverpool Football Club.
• Rockstar: This energy drink brand is popular in the UK and is known for its bold packaging and flavours. Rockstar Energy Drink is the only brand that caters to the energy drink market, and it’s available in various flavours.
• Relentless: This is an energy drink brand owned by the famous Coca-Cola, and it is quite popular in the UK as well as other European countries. The brand markets itself as a drink that gives consumers the energy they need to push through their limits.
• Lucozade: This is a drinks brand that is always in between being consumed when you are sick and being used for sports. The sports variants of their drinks have been made popular with many professional athletes consuming them.
These are just a few examples of energy drink companies operating in the UK market that are similar to Monster Beverage Corp. There are also many other brands across the world that operates in the same market. Looking for valuable advice on successful investing? Our previous post about inflation wreaks havoc on the stock market has got you covered. Access it now by following the link provided.
