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The beer industry is made up of companies specializing in the production of beer, although many of these firms also produce other alcoholic and non-alcoholic beverages. Beverages are considered consumer staples and thus the beer industry may be considered a small part of the broader consumer staples sector. Some of the well-known names in the industry include Netherlands-based SABMiller International BV, Netherlands-based Heineken NV, and Molson Coors Beverage Co. (TAP). Consumer staples stocks, as represented by the Consumer Staples Select Sector SPDR ETF (XLP), have outperformed the broader market, posting a negative total return of 1.0% compared to the S&P 500’s negative return of 9.6% over the past 12 months.
Here are the top 3 beer stocks with the best value, the fastest earnings growth, and the most momentum. All figures in this story are as of March 16, 2020.
Best Value Beer Stocks
These are the beer stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
- Anheuser-Busch InBev SA/NV: Anheuser-Busch is a Belgium-based holding company engaged in the manufacture and distribution of alcoholic and non-alcoholic beverages. The company owns a portfolio of more than 400 different beer brands including Budweiser, Corona, and Stella Artois.
- Ambev SA: Ambev is a Brazil-based company primarily engaged in the production and distribution of beer. The company also produces and distributes soft drinks and other non-alcoholic beverages including non-carbonated beverages. In Q4 2019, Ambev reported a year-over-year (YOY) net increase in revenue of 5.7%.
- United Breweries Co. Inc.: United Breweries, also known as Compania Cervecerias Unidas, is a Chile-based producer and distributor of a wide range of branded beers. The company also produces wines, spirits, and non-alcoholic beverages such as soft drinks, bottled water, and juices. In Q4 2019, the company reported that quarterly net sales were up 5.0% YOY, while net income declined by nearly 10% over the same period.
Fastest Growing Beer Stocks
These are the beer stocks with the highest YOY EPS growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
- Molson Coors Beverage Co.: Molson Coors is a brewing company specializing in the production of beer products. In FY 2019, Molson Coors saw worldwide brand volume decrease by 3.5% YOY, as net income decreased by more than 78%.
- Constellation Brands Inc.: Constellation Brands is an alcoholic beverage company engaged in the production, marketing, and distribution of beer, wine, and spirits. As the company behind the popular beer brand Corona, Constellation Brands has recently attempted to address the misconception that there is any correlation between its products and COVID-19, commonly referred to as coronavirus. For the 4-week period ended February 16, 2020, dollar sales of Corona products in the U.S. were up 5%.
- Ambev SA: See above for company description
Beer Stocks with the Most Momentum
These are the beer stocks that had the highest price change the last 12 months.
- Boston Beer Co. Inc.: Boston Beer is a brewer engaged in the business of producing and selling craft-brewed beers and cider products at its own breweries and various other contract breweries. In Q4 2019, Boston Beer reported net revenue of $301.3 million, an increase of 33.8% YOY.
- Carlsberg A/S: Carlsberg is a Denmark-based brewing company primarily engaged in the production and marketing of beer. The company also produces non-alcoholic beverages such as non-alcoholic beer and soft drinks. The company’s portfolio of brands include Carlsberg, Kronenbourg, and Tuborg, among others.
- Heineken NV: Netherlands-based Heineken produces beers, spirits, wine, and soft drinks for sale around the world. The company recently announced the upcoming appointment of a new Chief Supply Chain Officer and the newly created position of Chief Digital and Technology Officer.
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