We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AB InBev Stock Gains 9% in 3 Months: Should You Buy, Hold or Sell?
Read MoreHide Full Article
Anheuser-Busch InBev SA/NV (BUD - Free Report) , alias AB InBev, has shown steady growth in the stock market, with its shares surpassing the broader industry and the S&P 500 in the past three months. This positive trend has been driven by the company's unwavering commitment to enhancing its brands through diverse beer offerings, aligning with the industry's shift toward premium products.
AB InBev is well-positioned to benefit from the expansion of its Beyond Beer portfolio and its investments in B2B platforms, e-commerce and digital marketing in the near term.
In the past three months, the company’s shares have risen 9%, leaving behind the industry peers and the broader S&P 500 index’s increases of 4.3% and 1.7%, respectively. The company also outperformed the broader Zacks Consumer Staples sector's growth of 8.2% in the same period.
BUD’s Price Performance
Image Source: Zacks Investment Research
At the current price of $64.85, the stock trades at a 3.9% discount to its 52-week high of $67.49. Additionally, BUD is trading above its 50 and 200-day moving averages, indicating robust upward momentum and price stability. This technical strength reflects positive market perception and confidence in AB InBev’s financial health and prospects.
AB InBev Stock Trades Above 50 & 200-Day Moving Average
Image Source: Zacks Investment Research
Strategies Support BUD Stock’s Rally
The stock’s upward trajectory is well-supported by AB InBev’s distinctive commercial strategy, robust brand portfolio and focus on operational excellence. Key drivers include the company’s relentless execution, brand investments, premiumization efforts and accelerated digital transformation. Moreover, the expansion of the Beyond Beer portfolio and other revenue-management initiatives position the company for long-term growth.
AB InBev sees premiumization in the beer industry as a major growth opportunity, investing in a diverse range of global, international and craft premium brands. Its global brands lead the premiumization trend, and the above-core portfolio has shown strong performance. In the second quarter of 2024, revenues for the above-core portfolio grew modestly, driven by solid performances by Corona and South African brands, and notable increases for Modelo in Mexico and Spaten in Brazil.
The company is also enhancing its capabilities to connect with customers through its growing digital platform, which includes B2B sales and e-commerce platforms like BEES and Zé Delivery. The acceleration in B2B platforms, e-commerce and digital marketing is fueling top-line growth.
AB InBev’s digital transformation is progressing well, with B2B digital platforms contributing about 70% to revenues in the second quarter of 2024. BEES had 3.8 million active users by the end of the second quarter and achieved $11.7 billion in gross merchandise value, marking a 20% year-over-year increase. Its omni-channel, direct-to-consumer ecosystem generated $140 million in revenues for the quarter.
The company continues to expand its Beyond Beer portfolio, which includes ready-to-drink beverages, such as Canned Wine and Cocktails, Hard Seltzers, Cider and Flavored Malt Beverages. This trend aligns with rising demand for low-alcohol or non-alcoholic drinks, and contributed $375 million to total revenues in the second quarter of 2024.
Upward Estimate Trajectory for BUD
The Zacks Consensus Estimate for BUD’s 2024 earnings per share rose 1.2% in the last 30 days. The upward revision in earnings estimates indicates analysts’ increasing confidence in the stock.
Image Source: Zacks Investment Research
For 2024, the Zacks Consensus Estimate for BUD’s sales and EPS implies 2.4% and 11.8% year-over-year growth, respectively. The consensus mark for 2025 sales and earnings indicates 3.4% and 10.8% year-over-year increases, respectively.
BUD Stock Undervalued
The company is currently trading at a discount to its industry on a forward 12-month P/E basis, making the stock an attractive pick for investors. AB InBev is currently trading at a forward 12-month P/E ratio of 17.75X, below the sector’s average of 18.25X and the S&P 500’s average of 21.19X.
Image Source: Zacks Investment Research
How to Play the Stock?
AB InBev remains a powerhouse in the beverage industry, with more than 500 iconic brands under its belt. The company’s strategy of crafting a diverse brand portfolio that meets a wide array of consumer preferences, from pricing to flavor profiles and brand identity, bodes well. This strategic approach not only helps it tackle the pressures of rising commodity costs but also fuels its investments for sustainable long-term growth.
The company's robust fundamentals highlight its strong financial health and operational efficiency. The upward price and estimates trajectory, combined with a relatively low valuation than peers, offers an attractive opportunity for investors looking to invest in this profitable beverage company. For current shareholders, we suggest staying with this Zacks Rank #3 (Hold) stock with solid long-term potential.
3 Consumer Staples Stocks to Consider
We have highlighted three better-ranked stocks from the Consumer Staple sector, namely The Chef's Warehouse (CHEF - Free Report) , Coca-Cola (KO - Free Report) and Flowers Foods (FLO - Free Report) .
The Chef's Warehouse offers specialty food products in the United States. CHEF presently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 33.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for CHEF’s current financial year’s sales and EPS indicates growth of 9.7% and 12.6%, respectively, from the year-ago reported figures.
Coca-Cola, the global beverage giant, currently has a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 4.7%, on average.
The Zacks Consensus Estimate for KO’s current financial-year sales and earnings suggests growth of 0.6% and 6%, respectively, from the year-ago reported figures.
Flowers Foods emphasizes providing high-quality baked items, developing strong brands, making innovations to improve capabilities and undertaking prudent acquisitions. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for FLO’s current financial-year sales and earnings indicates growth of 1% and 5%, respectively, from the year-earlier actuals. FLO has a trailing four-quarter earnings surprise of 1.9%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AB InBev Stock Gains 9% in 3 Months: Should You Buy, Hold or Sell?
Anheuser-Busch InBev SA/NV (BUD - Free Report) , alias AB InBev, has shown steady growth in the stock market, with its shares surpassing the broader industry and the S&P 500 in the past three months. This positive trend has been driven by the company's unwavering commitment to enhancing its brands through diverse beer offerings, aligning with the industry's shift toward premium products.
AB InBev is well-positioned to benefit from the expansion of its Beyond Beer portfolio and its investments in B2B platforms, e-commerce and digital marketing in the near term.
In the past three months, the company’s shares have risen 9%, leaving behind the industry peers and the broader S&P 500 index’s increases of 4.3% and 1.7%, respectively. The company also outperformed the broader Zacks Consumer Staples sector's growth of 8.2% in the same period.
BUD’s Price Performance
Image Source: Zacks Investment Research
At the current price of $64.85, the stock trades at a 3.9% discount to its 52-week high of $67.49. Additionally, BUD is trading above its 50 and 200-day moving averages, indicating robust upward momentum and price stability. This technical strength reflects positive market perception and confidence in AB InBev’s financial health and prospects.
AB InBev Stock Trades Above 50 & 200-Day Moving Average
Image Source: Zacks Investment Research
Strategies Support BUD Stock’s Rally
The stock’s upward trajectory is well-supported by AB InBev’s distinctive commercial strategy, robust brand portfolio and focus on operational excellence. Key drivers include the company’s relentless execution, brand investments, premiumization efforts and accelerated digital transformation. Moreover, the expansion of the Beyond Beer portfolio and other revenue-management initiatives position the company for long-term growth.
AB InBev sees premiumization in the beer industry as a major growth opportunity, investing in a diverse range of global, international and craft premium brands. Its global brands lead the premiumization trend, and the above-core portfolio has shown strong performance. In the second quarter of 2024, revenues for the above-core portfolio grew modestly, driven by solid performances by Corona and South African brands, and notable increases for Modelo in Mexico and Spaten in Brazil.
The company is also enhancing its capabilities to connect with customers through its growing digital platform, which includes B2B sales and e-commerce platforms like BEES and Zé Delivery. The acceleration in B2B platforms, e-commerce and digital marketing is fueling top-line growth.
AB InBev’s digital transformation is progressing well, with B2B digital platforms contributing about 70% to revenues in the second quarter of 2024. BEES had 3.8 million active users by the end of the second quarter and achieved $11.7 billion in gross merchandise value, marking a 20% year-over-year increase. Its omni-channel, direct-to-consumer ecosystem generated $140 million in revenues for the quarter.
The company continues to expand its Beyond Beer portfolio, which includes ready-to-drink beverages, such as Canned Wine and Cocktails, Hard Seltzers, Cider and Flavored Malt Beverages. This trend aligns with rising demand for low-alcohol or non-alcoholic drinks, and contributed $375 million to total revenues in the second quarter of 2024.
Upward Estimate Trajectory for BUD
The Zacks Consensus Estimate for BUD’s 2024 earnings per share rose 1.2% in the last 30 days. The upward revision in earnings estimates indicates analysts’ increasing confidence in the stock.
Image Source: Zacks Investment Research
For 2024, the Zacks Consensus Estimate for BUD’s sales and EPS implies 2.4% and 11.8% year-over-year growth, respectively. The consensus mark for 2025 sales and earnings indicates 3.4% and 10.8% year-over-year increases, respectively.
BUD Stock Undervalued
The company is currently trading at a discount to its industry on a forward 12-month P/E basis, making the stock an attractive pick for investors. AB InBev is currently trading at a forward 12-month P/E ratio of 17.75X, below the sector’s average of 18.25X and the S&P 500’s average of 21.19X.
Image Source: Zacks Investment Research
How to Play the Stock?
AB InBev remains a powerhouse in the beverage industry, with more than 500 iconic brands under its belt. The company’s strategy of crafting a diverse brand portfolio that meets a wide array of consumer preferences, from pricing to flavor profiles and brand identity, bodes well. This strategic approach not only helps it tackle the pressures of rising commodity costs but also fuels its investments for sustainable long-term growth.
The company's robust fundamentals highlight its strong financial health and operational efficiency. The upward price and estimates trajectory, combined with a relatively low valuation than peers, offers an attractive opportunity for investors looking to invest in this profitable beverage company. For current shareholders, we suggest staying with this Zacks Rank #3 (Hold) stock with solid long-term potential.
3 Consumer Staples Stocks to Consider
We have highlighted three better-ranked stocks from the Consumer Staple sector, namely The Chef's Warehouse (CHEF - Free Report) , Coca-Cola (KO - Free Report) and Flowers Foods (FLO - Free Report) .
The Chef's Warehouse offers specialty food products in the United States. CHEF presently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 33.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for CHEF’s current financial year’s sales and EPS indicates growth of 9.7% and 12.6%, respectively, from the year-ago reported figures.
Coca-Cola, the global beverage giant, currently has a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 4.7%, on average.
The Zacks Consensus Estimate for KO’s current financial-year sales and earnings suggests growth of 0.6% and 6%, respectively, from the year-ago reported figures.
Flowers Foods emphasizes providing high-quality baked items, developing strong brands, making innovations to improve capabilities and undertaking prudent acquisitions. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for FLO’s current financial-year sales and earnings indicates growth of 1% and 5%, respectively, from the year-earlier actuals. FLO has a trailing four-quarter earnings surprise of 1.9%, on average.