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Bear of the Day: Anheuser-Busch InBev (BUD)

David Bartosiak
Macy's, Nordstrom, Wal-Mart and Amazon are part of Zacks Earnings Preview

Today’s Bear of the Day is in an industry which ranks in the Bottom 5% of our Zacks Industry Rank. That means that the stock, along with many of its peers, has seen downward earnings estimate revisions coming from analysts. It doesn’t mean that the stock is necessarily doomed, it just means that investors could see the earnings picture get worse before it gets better.

I’m talking about Zacks Rank #5 (Strong Sell) Anheuser-Busch InBev (BUD). Anheuser-Busch InBev SA/NV, a brewing company, engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks worldwide. It offers a portfolio of approximately 500 beer brands, including Budweiser, Corona, and Stella Artois; Beck's, Castle, Castle Lite, Hoegaarden, and Leffe; and Aguila, Antarctica, Bud Light, Brahma, Cass, Chernigivske, Cristal, Harbin, Jupiler, Klinskoye, Michelob Ultra, Modelo Especial, Quilmes, Victoria, Sedrin, Sibirskaya Korona, and Skol. 

The reason for the unfavorable Zacks Rank is the series of negative earnings estimate revisions coming from analysts. Over the last sixty days, two analysts have cut their current year and next year earnings numbers. The bearish moves have cut our Zacks Consensus Estimate for the current year from $4.65 to $4.31 while next year’s number has dipped from $5.36 to $4.97.

Looking across the Alcoholic Beverages industry, many stocks have seen negative revisions. There are a handful of stocks coming in at a Zacks Rank #3 (Hold) including Castle Brands (ROX). The only Zacks Rank #2 (Buy) stock in the industry is Carlsberg (CABGY).

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Castle Brands, Inc. (ROX) : Free Stock Analysis Report
 
Carlsberg AS (CABGY) : Free Stock Analysis Report
 
Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
 
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