In addition, we expect Molson Coors to generate annual earnings growth of 5% per year, resulting in total expected returns of 9% per year. From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Compania Cervecerias Unidas S.A. also exports its products to Europe, Latin America, the U.S., Canada, and other locations. Brown-Forman Corp. (BF.B) Category: Wine & Spirits. Thanks for reading this article. Further, the companies stand to gain from the ongoing digital transformation (e-premise channels) as consumers adopt online shopping options and make the most of increased at-home consumption occasions.Furthermore, the industry players have been steadfastly investing in product innovations to include non-or-low alcoholic beverage variations to its portfolio. It carries a Zacks Rank #2. To top it all, the global pandemic and the resulting effect on the global economy are likely to push up costs, which may hurt the margins of alcohol companies. Molson Coors Brewing Company was founded in 1873. Still, the year-over-year revenue figure declined, due to the coronavirus pandemic and related lockdowns. Rajani Lohia Stock Advisor launched in February of 2002. Please send any feedback, corrections, or questions to In its current form, it is the result of the 2008 merger between InBev and Anheuser-Busch. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. ZacksTrade and are separate companies. © 2020 TheStreet, Inc. All rights reserved. Many alcohol stocks were hit hard as the coronavirus crisis unfolded, but some have come back significantly in recent weeks. Its most famous brand is its flagship Jack Daniel’s. Per Bank of America, Truly and White Claw together held nearly 80% of the hard seltzer market at the end of 2019. From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. Net sales were down -8.3% in North America and -44.6% in Europe. 3/10/20 11:45AM.

There is a great deal of growth taking place for smaller breweries that produce craft beers. Currently, Ambev has operations in 16 countries, primarily in South America, Central America, and Latin America. Truly also offers convenience and ease, it’s ready to drink right from the bottle, perfect for active and social drinkers looking for a light, refreshing alternative to wine and cocktails.

It introduced Truly Lemonade earlier this year to some high praise, and it plans to introduce more varieties over the next year, including iced tea, a version that has higher alcohol by volume, and other flavors and sizes. Yet like craft beer produced decades of growth before it was supplanted by different consumer preferences, there's a good possibility hard seltzer can do the same. In the 2020 second quarter, the company generated $2.50 billion in sales, down -15.1% compared to Q2 2019, due to the COVID-19 pandemic. As a result, we expect the valuation to compress over the next five years, which could reduce total returns by 13.3% per year through 2025. Discover the best free resources on Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. Moreover, travel restrictions dealt a huge blow to the Travel Retail business. Stocks are ranked in order of expected returns, from lowest to highest.

His coverage reflects his passion for motorcycles, booze, and guns (though typically not all exercised at the same time), but his writing also covers the broader sectors of consumer goods, technology, and industrials.

Truly, a hot hard seltzer ... Boston Beer stock closed Tuesday down 5.2%, but is up 57.4% for the year to date. Find Your Favorite Truly. In addition, the stock has a current dividend yield of 1.7%. Drink What You Truly Want. Additionally, the stay-at-home trend has increased more at-home drinking occasions, which has encouraged people to make simple cocktails at home. Returns as of 11/12/2020. Shift in Trends to Off-Premise & E-commerce, At-Home Occasions: The alcohol industry has been witnessing a gradual shift in consumption trends from on-premise to off-premise. This dividend reduction saved the company roughly $1.1 billion, which will help further with debt repayment. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Truly Spiked & Sparkling has launched a new range of “spiked sparkling waters” – an alcoholic twist on sparkling water.

Privacy Policy | No cost, no obligation to buy anything ever. Ambev S.A. (ABEV) - Get Report Category: Beer. In 2013, AB-InBev acquired the remaining portion of Grupo Modelo that it didn’t already control, for $20 billion. These investments in the product portfolio, particularly the fast-growing hard seltzer category, bode well for players like Diageo Plc (DEO - Free Report) , Brown-Forman Corporation (BF.B - Free Report) , Constellation Brands Inc. (STZ - Free Report) , The Boston Beer Company Inc. (SAM - Free Report) and Molson Coors Beverage Co. (TAP - Free Report) . Alcohol stocks also tend to perform well during periods of economic downturns, meaning they can provide diversification and recession-resistance to a portfolio. Molson Coors has a relatively small group of craft beers in its portfolio, which is a big reason for its lack of growth in recent years.

Our Story Our Styles Truly Lemonade. Ambev looks poised to deliver total returns of nearly 4% per year over the next five years. Diageo retired $1.4 billion worth of stock during the first half of the year, but paused plans to buyback additional shares during the second half of the fiscal year. Enter Truly. In addition, it manufactures and sells pre-forms, returnable and non-returnable bottles, and caps. Constellation also competes in all three categories because spending per consumer is much higher for those that drink all three types of alcoholic beverages. Read on for 10 more things you should know about Truly. To the point, one alcohol stock even makes the exclusive Dividend Aristocrats list, an elite group of S&P 500 stocks with 25+ years of rising dividends.