CELH is brushing off a downgrade while MNST slides after earnings
Consumer stocks are feeling the pressure of high inflation, with consumer sentiment hitting an eight-month low at the end of July. Within the beverage sector, energy drink names Monster Beverage Corp (NASDAQ:MNST) and Celsius Holdings Inc (NASDAQ:CELH) are both in focus after reporting earnings this week.
Earlier this week, Stifel analysts highlighted "belt-tightening" amongst lower-income consumers, which both beverage companies sell to at convenient stores. Monster co-CEO Hilton Schlosberg said in the earnings report that "retailers have reported a reduction in convenience-store foot traffic," while Celsius' CEO John Fieldly said "competition within the energy category has never been greater."
Monster stock is down 11.4% to trade at $44.77 at last glance, after the company announced lower-than-expected second-quarter earnings and revenue after yesterday's close. Gapping to its lowest levels since 2022, MNST is down 22.1% year to date.
Celsius stock is brushing off a downgrade from BofA Global Research to "underperform" today, up 0.9% at $37.76 at last check, and looking to snap a five-day losing streak. The stock is still on track for a fourth-straight weekly loss, however. Though Celsius stock turned lower after its report on Tuesday, better-than-expected earnings and expansion plans alleviated some concerns. Down 51.6% in the last three months, CELH is sports a 27% year-to-date deficit.