I’ve written articles with today’s headline multiple times. In the past, I’ve highlighted under-the-radar companies that have crushed the returns of the S&P 500 over the long term, including companies such as Casella Waste Systems, Comfort Systems USA, and Axon Enterprise. Over the last 10 years, this trio is each up about 2,000% compared to just a 182% return for the S&P 500.

I’m back at it today with another market-crushing stock idea that simply doesn’t get enough attention. And when it comes to monster stocks of the past 20 years, I can think of no better candidate than Monster Beverage (MNST -0.20%) stock itself — it’s up more than 7,000% over the last two decades.

Image source: Getty Images.

As of this writing, Monster stock is up 20% in 2025 compared with a 2% gain for the S&P 500. So Monster is back to beating the market and is worth looking at with fresh eyes.

Why Monster crushed the market

Monster stock is the top publicly traded company of the last 30 years, according to MacroTrends. And the reason is simple: Its growth has been spectacular. In 1994, the company generated just $29 million in full-year revenue. In 2024, that number was $7.5 billion — roughly a 20% compound annual growth rate (CAGR) over 30 years.

It went public in 1990 as Hansen Natural, a fruit juice business. In 1997, it launched its first energy drink back when there really wasn’t even an energy-drink category. The Monster brand eventually came in 2002 and the company never looked back.

Monster was profitable early and consistently. From 2000 through 2010, the company was profitable the entire time and averaged a profit margin of about 11%. This was during a red-hot growth phase in which the brand went nationwide and worldwide.

With those profits, Monster has bought back a lot of stock — the share count is down about 20% over the last nine years. And it’s also diversified its business by buying other companies, such as in 2022 when it acquired the craft beer company now known as Monster Brewing Company.

With growth, profits, and shareholder friendly moves, Monster stock has been, well, a monster stock over the long term.

Why it’s crushing the market in 2025

As mentioned at the beginning, Monster stock is crushing the S&P 500 again in 2025. There are a couple of reasons for this. First, sales growth has slowed, which dropped the stock down to an unusually low price-to-sales (P/S) valuation of about 7 at the start of the year — it usually trades closer to 8 or 9. But an acceleration in its growth rate in April boosted investor confidence and consequently boosted the valuation back to normal.

MNST PS Ratio data by YCharts

I don’t expect that same valuation boost for Monster stock from here. If it’s going to outperform the market for the rest of 2025 and beyond, those returns are going to have to be fueled by the business.

Can Monster stock crush the market from here?

To be clear, I have concerns when it comes to Monster stock being a good investment from here. And the biggest concern I have is growth. Over the past three years, it’s averaged a single-digit revenue growth rate. And while sales did pick up in April, management believes it still lost market share in the important convenience and gas store channels.

Moreover, Monster’s aforementioned foray into the beer market hasn’t paid off. In fact, beer sales are down and pulling down growth for the overall business.

This problem could be hard to solve. Consider the Monster is already the second-biggest player in the energy drink space, only trailing Red Bull. And the business also generates more than $2 billion in international sales annually, meaning it’s already largely expanded overseas. In short, Monster is massive and ubiquitous already, which doesn’t leave any easy growth ahead. And this means the stock could struggle.

However, to end on a more positive note, investors need to remember one thing with Monster: It has a pristine balance sheet with nearly $2 billion in cash and only $200 million in debt. Not to mention, it’s earned more than $1.5 billion in profit over the last 12 months. That’s a big advantage.

My point is, Monster’s growth outlook isn’t necessarily great. And there are certainly better stock ideas out there. But with billions of dollars at its disposal, I’m reluctant to count out Monster when it comes to creating market-beating shareholder value. It may take time and investors may do well to take advantage of any dips. But Monster remains a strong business with a great track record. It’s often a good idea to give companies like this the benefit of the doubt.