After being appointed by Morgan Stanley as the top stock pick, protein shake manufacturer BellRing Brands (BRBR.US) is starting to shine.

The protein shake manufacturer BellRing Brands (BRBR.US) stocks climbed again in the US stock market on Monday, following recent consecutive increases, garnering market attention for its outstanding performance. Prior to this, Morgan Stanley covered the stock and designated it as a top pick, with the stock also ranking second in the Special Industry Section of the Investors Business Daily (IBD). As a manufacturer of protein-rich products such as Powerbar and Dymatize, BellRing Brands' stock jumped on March 24th after Morgan Stanley designated it as a top pick. Since that 4% increase, BellRing Brands' stock has resisted the market's weakness, fluctuating narrowly near its 50-day moving average. Its stock price is forming a cup-shaped bottom, with the regular buy point at $80.67. In a more predictable market, the high point of $74.70 on March 24th could have served as an early entry point. The stock price is also forming a possible cup handle above the 50-day support level. Its relative strength line is leading the stock to new highs, typically seen as a bullish signal, but IBD also notes that the stock market is still in a correction phase, therefore not recommending buying stocks. Previously, Morgan Stanley initiated coverage on BellRing Brands, giving it a "hold" rating with a target price of $84 (the stock was trading around $74 on Monday), and designating it as a top pick. Analyst Megan Alexander of Inc. Klapp wrote in a report to clients, "We believe BellRing Brands is in a favorable position and is poised for exceptional revenue growth. This is due to its position in the highly attractive convenience nutrition category, increased innovation efforts and marketing investments (supported by increased production capacity), and significant opportunities for shelf space expansion." The analyst also added that data shows non-traditional channel sales are accelerating. In addition, BellRing Brands "has recently made gains in both household penetration rates and purchase rates." Protein shake stock emerges as industry leader Before Morgan Stanley released its optimistic report, this protein products company was already a leader in its industry. In the Cosmetics and Personal Care Industry section of Investors Business Daily (IBD), its composite rating ranked second. Among the 50+ companies in this industry section, only 14 are involved in the supplements and dietary products business. Among these companies, BellRing Brands had the highest composite rating at 91. IBD MarketSurge data shows that BellRing Brands' stock revenue line is steadily rising. According to IBD stock check data, the company has a three-year EPS growth rate of 177% and a sales growth rate of 43%. According to financial data provider FactSet, analysts expect sales to grow by 17% this quarter, reaching $577.6 million, with earnings expected to grow by 18% to 53 cents per share. On February 3rd, the company easily exceeded earnings expectations from the previous December quarter, with earnings per share jumping 35% to 58 cents and sales increasing by 24% to $532.9 million. Management raised its sales forecast for the fiscal year to between $2.26 billion and $2.34 billion, and adjusted EBITDA expectations to between $470 million and $500 million. BellRing Brands initiates stock buyback plan The company's Premier Protein brand led quarterly sales growth, with sales volume increasing by 21.4%, driving a 26.3% increase in sales. CEO Darcy H. Davenport stated in the earnings announcement that the household penetration rate of this protein shake brand reached a historical high. On March 6th, BellRing Brands announced a plan to repurchase $300 million worth of stocks over the next two years. Since its breakthrough in January 2023, BellRing Brands' stock price has nearly tripled, breaking out of a 15-month consolidation pattern. While it may be difficult to expect another significant increase, when it broke through its previous pattern last year, it did reset its bottom count. BellRing Brands' stock has an average true range (ATR) of 3.48%. The average true range is a measure of the magnitude of stock price fluctuations provided by IBD MarketSurge. Stocks with high ATR values are more likely to experience large fluctuations in daily trading (which may trigger sell rules and lead investors to sell stocks), while stocks with lower ATR values have smoother fluctuations. In the current unpredictable market environment, IBD recommends focusing on stocks with ATR values at 3% or below.