Boston Beer Rides on Sturdy Performance, Hits 52-Week High
Sturdy past performances and an impressive outlook facilitated the shares of Boston Beer Co. Inc. (SAM) to reach a new 52-week high of $266.36 on Monday, Nov 10. The largest premium craft brewer in the United States eventually closed trade at $266.07 yesterday, representing a healthy year-to-date return of 19.8%. Average volume of shares traded over the last 3 months stands at over 51,145.
Positive earnings surprises in two consecutive quarters along with revenue growth, an optimistic fiscal 2015 outlook and solid cash flows are the strengths that pushed the shares of this Zacks Rank #1 (Strong Buy) company to a new high. Moreover, Boston Beer currently trades at a forward P/E of 38.9x, higher than the peer group average of 33.52x.
The company recently reported its third-quarter 2014 results wherein its top and bottom lines registered year-over-year growth of above 25% and 47%, respectively, and also surpassed the Zacks Consensus Estimate. Results for the quarter mainly benefited from robust increase in shipments and a notable decline in operating expenses per barrel due to fall in employee benefit expenses as well as a shift in timing of certain advertising promotional and selling expenses.
Robust quarterly performance helped the company to remain optimistic about fiscal 2014 despite a sluggish economic recovery and cautious consumer environment. In addition, the company provided an impressive guidance for fiscal 2015.
Furthermore, we remain impressed with the company’s consistent focus on brand building and efforts to include new products in its beer business, which are key growth drivers for the stock. Moreover, we appreciate Boston Beer’s efforts to enhance wholesale distribution points and execute its strategic merchandising initiatives that will assist in boosting sales.
Apart from Boston Beer, Ross Stores Inc. (ROST), V.F. Corporation (VFC) and Leggett & Platt Incorporated (LEG) have also hit new 52-week high of $82.38, $70.74 and $40.84, respectively.
Read the Full Research Report on VFC
Read the Full Research Report on LEG
Read the Full Research Report on ROST
Read the Full Research Report on SAM
Zacks Investment Research
