Jim Cramer: One ‘Smoking Hot’ Stock I’d Buy Today

Jim Cramer is quite a controversial figure on Wall Street. But anyone else in his position would be, too. He can make any boring stock or topic very interesting, and he does so in an educational fashion that retail investors can benefit from. Another thing that helps is that he’s opinionated, and you can use his opinions as a starting point when researching which stocks to buy.

Again, no one has a crystal ball, and it’s not likely you’ll outperform the market by doing everything Cramer says 1:1. But what you can do is look into his level of conviction and dig deeper into those equities he feels very strongly about.

That’s exactly what we’ll be doing today. Jim Cramer covers dozens of stocks a day, and he’s bullish on a great deal of them. But I believe this one sticks out if you take the company’s quality and the historical stock performance into account and combine it with Cramer’s opinion.

Key Points in This Article:

• Jim Cramer is solidly bullish on Monster Beverage and wants you to own it.
• He likes it due to its “unbelievable” performance in recent decades.
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Monster Beverage (MNST): Just One Smoking Hot Stock

During a lightning round on June 28, a caller asked Jim Cramer what he should do with the stock of “Monster Energy,” which is the flagship product of Monster Beverage (NASDAQ:MNST). Jim Cramer immediately said, “The answer is, you own it.”

He said Monster Beverage, since 1990, has been the best-performing stock, calling it “unbelievable,” and elaborating that “it is a one smoking-hot stock and I would not walk away from that to save your life.”

Why Jim Cramer Likes Monster Beverage (MNST)

Jim Cramer is right that the performance here has been exceptional. And while you’ll find lots of big gainers in the past 30 years, no stock has delivered the kind of consistent performance like this one.

MNST stock is up +988,932.21% from its all-time low price in 1985. Even in the past decade, it is up 186.7%. In the past five years, it is up 84.4% and has outperformed the S&P 500. This is a company that is delivering tech-like performance without being one.

The three-year revenue growth rate is at 12.7% annually, and its free cash flow has grown 16% annually on average in the past three years. Analysts see almost 12% annual EPS growth (minus non-recurring items) in the coming years this decade, along with 7.1% annual revenue growth.

Moreover, it has $1.9 billion in cash and $199 million in debt. Debt has been reduced to that level from $749 million in Q2 2024. It’s hard not to like such a quality company.

Lots of Room for Growth

Monster Energy’s portfolio of beverages consistently generates cash flow, and you’ll rarely see the financials wobble. This is because Monster’s business model is asset-light. This company focuses on marketing and branding, leaving out capital-intensive manufacturing and distribution to its partners like Coca-Cola (NYSE:KO)

And if you’re familiar with Coca-Cola, you’d know that it has a supply chain that reaches the remotest places of the world, places even their own governments can’t reach. Monster piggybacks off of this, and it now has an extensive global distribution reach without the heavy capital requirements of painstakingly building it out.

Sixty-three percent of Monster’s revenue came from the U.S. and Canada last year, but other regions are quickly growing. Revenue from the company’s European business line has grown from $745.8 million in 2020 to $1.6 billion in 2024, constituting 20.87% of revenue. Revenue from Latin America and the Caribbean more than tripled from $214.5 million to $666.5 million.

The next wave of growth could come from Asia, which is an untapped market, but will probably be the largest market for Monster in the future. Revenue was $423.8 million in 2020 and only grew to $541 million in 2024.

A Track Record of Outperformance, Even During Recessions

Cramer is right that this is a stock that seems to have a baked-in tendency of running hot. That has been true regardless of the economic environment.

MNST stock has not only outperformed the market considerably over the past three decades, but it has also seen lower drawdowns during recessions. In 2008, the stock declined by 24.3%, which was then immediately followed by seven straight years of gains of over 38% annually on average.

The last time this company saw its revenue decline annually was all the way back in the year 2000, and that too by just 0.82%.

Should You Follow Cramer and Buy MNST Stock?

In this case, Cramer is very much on the money. MNST stock is hard to bet against with its stellar financials and track record. The future seems just as smooth-sailing as the past, with the global energy drink market forecast to grow from $84.3 billion to $111.5 billion at a 7.6% CAGR from 2025 to 2029. The Asian market could be the dark horse and drive double-digit growth once management becomes more aggressive there.

I wouldn’t expect massive gains near-term after a 21.75% year-to-date gain, but MNST is undeniably a solid long-term bet.

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