SAM - The Boston Beer Company, Inc.

NYSE - NYSE Delayed Price. Currency in USD
564.73
+22.05 (+4.06%)
At close: 4:00PM EDT
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Hanging Man

Hanging Man

Performance Outlook
  • Short Term
    2W - 6W
  • Mid Term
    6W - 9M
  • Long Term
    9M+
Previous Close542.68
Open541.10
Bid535.00 x 900
Ask561.41 x 1100
Day's Range540.00 - 566.00
52 Week Range290.02 - 566.00
Volume167,524
Avg. Volume161,396
Market Cap6.878B
Beta (5Y Monthly)0.79
PE Ratio (TTM)65.58
EPS (TTM)8.61
Earnings DateJul 23, 2020 - Jul 27, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est420.92
Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth Rate. Estimated return represents the projected annual return you might expect after purchasing shares in the company and holding them over the default time horizon of 5 years, based on the EPS growth rate that we have projected.
Fair Value
XX.XX
Overvalued
-16% Est. Return
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  • Undervalued Anheuser Busch Stock Has a Bad Case of Market Irrationality
    InvestorPlace

    Undervalued Anheuser Busch Stock Has a Bad Case of Market Irrationality

    You probably wouldn't pick Anheuser Busch (NYSE:BUD) as a play on the novel coronavirus.Source: legacy1995 / Shutterstock.com Unlike other publicly traded companies that have found positive momentum as states ease social restrictions, Anheuser Busch stock remains deeply embattled on a year-to-date basis. Nevertheless, I believe the markets are acting irrationally. When you break down BUD stock, this is one of the most compelling discount stocks available.First, the technical picture as I said doesn't intuitively come across as a potential recovery narrative. Last week, I discussed the bull case for Boston Beer Company (NYSE:SAM), which is backed by a strong management team, an equally strong brand and a compelling product mix.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUnsurprisingly, SAM shares have skyrocketed off their March lows. In contrast, Anheuser Busch stock is wandering aimlessly. * 7 Excellent Penny Stocks Ready to Roar However, you can also look at this as a case of BUD building long-term support. Many investors don't want to buy into momentum; rather, they prefer getting in on the ground floor. But if you can stomach the risk, the potential for BUD is explosive.This brings me to my second point. Although the coronavirus has been devastating for virtually all businesses, it has also created pockets of opportunities for a select few companies. One of them is Anheuser Busch.As you know, the company specializes in budget beer brands such as Budweiser, Bud Light, Michelob Ultra and Busch Beer. In the pre-coronavirus days, that didn't quite help the case for Anheuser Busch stock, as millennials overwhelmingly prefer craft beer to traditional "corporate" brands.But genuine craft beer is primarily consumed in restaurants, bars and tasting clubs. These institutions went out of commission during the quarantines. Economic Realities Bolster the Case for Anheuser Busch StockNow, it's true that restaurants going out of commission isn't a completely clear-cut catalyst for BUD stock. After all, Anheuser sells their brands to restaurants as well. Furthermore, budget beer is huge at sporting and live events. Obviously, even with the return of sports, we won't know when governing agencies will allow large gatherings.However, the critical point about craft beer is that smaller companies were left with very few mitigating options. As I discussed about Boston Beer, they too had to deal with expiring kegs. But because of their strength and influence, they were able to channel their resources to make the best of the situation. Most craft breweries don't have that luxury.Cynically, this dynamic opened an opportunity for Anheuser Busch stock in that the underlying company essentially received free organic marketing. Just because a pandemic hits town doesn't mean consumers will magically abstain from imbibing. In fact, every data source indicates that consumers flocked to grocery stores to stock up on essentials: food, water, toilet paper and beer…lots and lots of beer.Indeed, reports indicate that all alcohol categories saw significant sales increases, but especially so for budget beer. Specifically, Anheuser's Busch Light sales jumped 44% over a two-month period. Put another way, demand for alcoholic products has always existed. The virus outbreak merely shifted it from one channel (bars and restaurants) to another (home consumption).Better yet, Anheuser Busch stock is likely to be unaffected by the velocity of economic rebound over the next several months. If we have a quick recovery, consumers will probably maintain their budget-focused mentality just in case. Because this crisis was so steep and unprecedented, they're not about to throw caution to the wind.If we slog it out, though, BUD still looks good because of its main products' lower price point. BUD Could Be an Unlikely HedgeIf you've followed my work during this troubling time, you'll know that I've always focused on the bigger picture. The megatrends I've been harping on for years will still reshape global societies; the novel coronavirus has merely delayed those shifts.As you can see for yourself with the alcohol demand, great opportunities don't die. Instead, they filter down the path of least resistance.That said, if we were to suffer a protracted recession, Anheuser Busch could turn out to be an unlikely hedge. According to data from the Great Recession, drinking increased significantly in the home as workers sought coping mechanisms from the many pressures associated with the downturn.To be clear, I'm not suggesting that investors buy BUD from the cynical angle that people will drink their troubles away. Tthat phenomenon will always be with us in any circumstance. Instead, I'm pointing out that millions of consenting adults turn to various products to help them deal with daily life. In a recession, this spark will only grow stronger.As well, many restaurants and breweries could go out of business because of the coronavirus. Thus, I would expect continued high demand from grocery stores, which is a net positive for BUD.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Undervalued Anheuser Busch Stock Has a Bad Case of Market Irrationality appeared first on InvestorPlace.

  • 3 Reasons Why a Pandemic Can’t Keep Boston Beer Down
    InvestorPlace

    3 Reasons Why a Pandemic Can’t Keep Boston Beer Down

    During the onset of the novel coronavirus outbreak, most states eventually responded to the crisis with shelter-in-place orders. Not surprisingly, the resultant boredom saw an increase in coping behaviors, including knocking down a few cold ones. On the surface, that would seem to benefit Boston Beer Company (NYSE:SAM), best known for its Samuel Adams brand. And it did, with SAM stock soaring since the second half of March.Source: LunaseeStudios / Shutterstock.com But the success of Boston Beer to avoid the volatility seen in other names, such as Anheuser Busch (NYSE:BUD), isn't all about making a great product. Though millennials tend to enjoy the finer things in life when it comes to their culinary experiences, Boston Beer isn't just reliant on retail purchases. Instead, a good chunk of their revenue and profitability comes from the restaurant industry.Well, that's a bit of a problem. One of the first sectors to experience a near-total shutdown were restaurants. As a result, service workers in this segment accounted for a large share of the 20.5 million jobs lost in April. Despite the obvious headwind, SAM stock continues to outperform.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 20 Stocks to Buy If You're Still Betting on America to Thrive Rather than a bull trap, there are many things to like about Boston Beer. Here are three factors that I'm paying attention to. Smart Management Underlines SAM StockOften, great leaders don't emerge when times are good. Instead, a person's leadership capabilities - or lack thereof -- is most pronounced when the going gets tough. Then, you have firm confirmation that conflation with outside factors didn't distort your assessment.As I mentioned above, the restaurant industry was among the hardest-hit sectors of this crisis. Subsequently, this caused many craft brew kegs to expire. Obviously, it would be highly unethical and probably illegal to serve that for patrons (not that they would be coming). Thus, many business operators would have simply written the situation off as a loss.Not Boston Beer. According to founder and Jim Koch, Boston Beer has a frequent practice of taking unused, expired beer and converting it into ethanol, which can then be blended into gasoline. But with the present crisis, the company has also shifted toward converting expired product into hand sanitizers.That's doing the public a solid. Not only that, this generation of investors is likely to respond positively to such stories. According to a study from EY, "Millennial investors are nearly twice as likely to invest in companies or funds that target specific social or environmental outcomes." Truly Seltzers Are Truly a HitSpeaking of millennials, no business can survive nowadays without having a strong focus on this key demographic. According to the Pew Research Center, millennials are the largest generation in the U.S. labor force. Whether you like them or not, they will determine the trajectory of the broader retail market for years to come.This falls in line with my emphasis on megatrends, with demographics being one of the most powerful. Without a clear pathway toward converting this demo into revenues, you're dead in the water. Fortunately, Boston Beer's management team understands this point and have responded brilliantly.Diversifying away from their core craft beer business, Boston Beer has recently dedicated efforts toward building their Truly brand of hard seltzers. Featuring crisp flavors with an adult kick, Truly satisfies millennial taste buds while giving them an alternative to the typical beer or wine dichotomy. Better yet, evidence indicates that Generation Z is following suit.Therefore, Boston Beer could be sitting on a long-term goldmine, which would only benefit SAM stock. Quarantines Provided Free MarketingWe can argue all day about the effectiveness and the necessity of stay-at-home orders. But I think I speak for everyone that it is boredom personified. Sure, binging Netflix (NASDAQ:NFLX) was fun, but there's only so much TV a human being can watch.But during this time, outdoor activities were mostly limited to essential functions. For most of us, that meant grocery shopping. And as you might expect, a large portion of those grocery bills involved ringing up alcoholic beverages.Undoubtedly, SAM stock benefited from consumer loyalty toward the underlying company's Samuel Adams brand. However, the quarantines were also an opportunity to market Truly, which utilizes attractive, relevant packaging that appeal to millennial shoppers. And since this demo is less likely to contract Covid-19, they are more likely to be found out and about.This opportunity would allow Boston Beer to gain a larger foothold in the burgeoning hard seltzer market. Hence, no one should be surprised if SAM stock continues to march higher throughout this year.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 3 Reasons Why a Pandemic Cana€™t Keep Boston Beer Down appeared first on InvestorPlace.

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  • Anheuser-Busch Stock Makes a Solid Buy at Current Lows
    InvestorPlace

    Anheuser-Busch Stock Makes a Solid Buy at Current Lows

    The novel coronavirus has hit Anheuser-Busch InBev (NYSE:BUD) particularly hard. With a rally off March lows fading, Anheuser-Busch stock now is down more than half so far in 2020.Source: legacy1995 / Shutterstock.com It's a more stunning decline than an investor might think. Excluding travel, financials and retailers, BUD has been the worst large-cap stock of 2020.And it's not as if Anheuser-Busch stock roared into the year. Shares did post a nice rally in 2019 -- but off a six-year low reached the prior December. Heading into 2020, BUD still was nearly 40% below 2016 levels.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThere are both short- and long-term reasons for the selling pressure. But before last week's earnings report, I argued that Anheuser-Busch stock was a buy if it retested March lows. We're getting close to those lows. At this point, and after earnings, I believe Anheuser-Busch stock is a buy. A Short-Term HitUnquestionably, Anheuser-Busch is taking a short-term hit from coronavirus-driven fears. As I noted earlier this month, the company is getting a boost in off-premise (takeaway) sales. Data from Nielsen showed a nearly 10% increase over four weeks. * 20 Stocks to Buy If You're Still Betting on America to Thrive Of course, the off-premise business is getting slammed worldwide. Bars, restaurants, stadiums and other venues are closed. Sales have fallen so far that there are legitimate concerns about how brewers will dispose of stale beer.The impact was seen in BUD's first-quarter report last week. Revenue declined 5.8% for the quarter. But volume actually was up 1.9% in the first two months. Given higher pricing, revenue grew even faster.Indeed, revenue per hectoliter rose nearly 4% in the quarter. That suggests that revenue in January and February was up close to 6% -- while March sales fell in the range of 25%. The news for April was worse: a 32% decline in global volume.Unsurprisingly, adjusted earnings (what Anheuser-Busch calls "underlying profit") fell 30% year-over-year in Q1. The second quarter will be worse. The problem with the brewing industry is that costs don't come down all that much along with volume. The brewery still needs to operate; labor savings are minimal. Even gross margins fall when volumes come down.And so this crisis in 2020 is a multibillion-dollar problem for Anheuser-Busch. There's no two ways about it. Longer-Term WorriesAgain, that comes after Anheuser-Busch stock already had its struggles. The rise of craft beer worldwide created literally thousands of new competitors. The number of breweries in the U.S. alone almost doubled between 2014 and 2018.As a result, sales for BUD and other mega-brewers have stalled out. Indeed, Molson Coors (NYSE:TAP) has seen its stock fall even further, and its shares are retesting an 11-year low.In addition to the pressure on the industry, Anheuser-Busch's acquisition of SABMiller put tens of billions of dollars in debt on the balance sheet. So, it's not a surprise that BUD stock struggled even before the current crisis. The Case for Anheuser-Busch Stock at the LowsAll that said, price matters. Value matters.And I'd keep this in mind: Anheuser-Busch stock has lost a stunning $65 billion in market value so far in 2020.Again, the short-term hit is significant in terms of lost sales and profits. But it's not $65 billion significant. It's nothing close to that.And as far as the long-term impact goes, I'm skeptical it's all that negative. Normalcy will return. Bars and restaurants already are starting to reopen, if cautiously so.Many craft competitors unfortunately won't do the same. What we're seeing in sectors like tech is a realization that size and scale are enormous benefits in a time of turmoil. Anheuser-Busch has that size and scale.Elsewhere in the beverage industry, investors seem to have that understanding. Coca-Cola (NYSE:KO) estimated a global volume decline of 25% for the first three weeks of April. Its stock is down just 21% this year, a performance some thirty points better than that of BUD.Kraft Heinz (NASDAQ:KHC) is another consumer giant with heavy leverage. Its shares are down 10% YTD. Boston Beer (NYSE:SAM) stock actually has soared, and sits at an all-time high.To be sure, I'm not arguing that BUD stock should be positive amid the crisis. I'm not even convinced that Anheuser-Busch stock should be tracking Coke.But, again, outside of the hardest-hit sectors, BUD has been the worst large-cap stock of 2020. I simply don't think the long-term outlook supports that kind of decline. Investors will figure that out soon enough.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Anheuser-Busch Stock Makes a Solid Buy at Current Lows appeared first on InvestorPlace.

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  • Thomson Reuters StreetEvents

    Edited Transcript of SAM earnings conference call or presentation 22-Apr-20 9:00pm GMT

    Q1 2020 Boston Beer Company Inc Earnings Call

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  • MarketWatch

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    Boston Beer Co. shares fell 8.5% in the extended session Wednesday after the company missed consensus estimates and recorded a revenue reduction related to the coronavirus pandemic. The company reported first-quarter net income of $18.2 million, or $1.49 a share, compared with net income of $23.7 million, which amounts to $2.02 a share, in the year-ago period. Revenue net of excise taxes rose to $330.6 million from $251.7 million in the year-ago period. Analysts surveyed by FactSet had estimated earnings of $1.92 a share on revenue of $347.7 million. Boston Beer withdrew its full-year 2020 guidance due to the COVID-19 pandemic. The maker of Samuel Adams Boston Lager and other beers said that thus far it has seen reduced keg demand and higher labor and safety costs. In the first quarter, Boston Beer recorded a coronavirus-related reduction in revenue of $10 million due to $5.8 million worth of keg returns, and $4.2 million in direct costs. The company also said it had shifted more volume to third-party breweries, which has increased production costs and impacted margins. Boston Beer stock has gained 57% in the past year, with the S&P 500 index falling 5.9%.

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  • Benzinga

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    Boston Beer Co (NYSE:SAM) reported Q1 results.Quarterly Results Earnings per share fell 14.44% year over year to $1.60, which missed the estimate of $1.77.Revenue of $330,565,000 up by 31.36% year over year, which missed the estimate of $346,000,000.Looking Ahead Earnings guidance hasn't been issued by the company for now.Conference Call Details Date: Apr 22, 2020View more earnings on SAMWebcast URL: https://webcasts.eqs.com/register/bostonbeer20200422/enRecent Stock Performance 52-week high was at $444.6452-week low: $263.36Price action over last quarter: Up 7.85%Company Overview Boston Beer is a leader in U.S. high-end malt beverages and adjacent categories, with strong positions in craft beer, hard cider, and hard seltzer. The firm sells an array of flavor variants and package sizes, predominantly centered around four priority brands: Samuel Adams, Angry Orchard, Twisted Tea, and Truly Hard Seltzer. Its drinks are produced in both company-owned breweries as well as through third-party contract arrangements, and while the company primarily goes to market through independent wholesalers (as mandated by law), it operates a fairly large salesforce to induce demand across the value chain (distributors, retailers, and drinkers). The preponderance of revenue is generated domestically.See more from Benzinga * Recap: Moelis & Co Q1 Earnings * Netgear: Q1 Earnings Insights * Recap: Echo Global Logistics Q1 Earnings(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Boston Beer Reports First Quarter 2020 Results
    PR Newswire

    Boston Beer Reports First Quarter 2020 Results

    The Boston Beer Company, Inc. (NYSE: SAM) reported first quarter 2020 net revenue of $330.6 million, an increase of $78.9 million or 31.4% from the same period last year, mainly due to an increase in shipments of 32.2%. Net income for the first quarter was $18.2 million, or $1.49 per diluted share, a decrease of $5.5 million or $0.53 per diluted share from the first quarter of 2019. The decrease in net income reflects that the Company's higher net revenue was more than offset by increases in operating expenses and lower gross margins.

  • ACCESSWIRE

    Boston Beer Co., Inc. to Host Earnings Call

    NEW YORK, NY / ACCESSWIRE / April 22, 2020 / Boston Beer Co., Inc. (NYSE:SAM) will be discussing their earnings results in their 2020 First Quarter Earnings call to be held on April 22, 2020 at 5:00 PM ...

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    Zacks

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    Boston Beer's (SAM) first-quarter 2020 results are likely to reflect gains from increased depletions and shipments. However, the effects of the virus outbreak might have impacted its performance.

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    Simply Wall St.

    A Rising Share Price Has Us Looking Closely At The Boston Beer Company, Inc.'s (NYSE:SAM) P/E Ratio

    Boston Beer Company (NYSE:SAM) shares have had a really impressive month, gaining 35%, after some slippage. That...

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    Zacks

    Analysts Estimate Boston Beer (SAM) to Report a Decline in Earnings: What to Look Out for

    Boston Beer (SAM) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

  • The most important part of any craft beer M&A deal: Keep it local
    MarketWatch

    The most important part of any craft beer M&A deal: Keep it local

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    American City Business Journals

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  • Sam Adams' Jim Koch: Pandemic will shake out breweries without enough 'drive, passion'
    American City Business Journals

    Sam Adams' Jim Koch: Pandemic will shake out breweries without enough 'drive, passion'

    Boston Beer Co. founder Jim Koch, a Cincinnati native who is launching a relief program to help restaurant workers in his home state, where he also owns a local brewery, said the symbiotic relationship between breweries and restaurants is why he is offering Queen City dining industry workers local grants to help them weather the pandemic.

  • Goldman Sachs: 3 Beverage Stocks to Stock Up on Now
    TipRanks

    Goldman Sachs: 3 Beverage Stocks to Stock Up on Now

    “To say the world has completely changed over the last 1-2 months in the wake of the COVID-19 pandemic is an understatement,” says Goldman Sachs’ Bonnie Herzog in a recent note to clients. It is impossible to disagree. Wall Street has been grappling with the implications, as stock prices and valuations have tumbled due to the increased uncertainty in the face of COVID-19’s long term impact.Herzog has been assessing the current health of the beverage and tobacco sector, and in addition to the “unprecedented uncertainty” regarding the broader economy, is worried of other possible developments.“We are also concerned about the ripple effect on broader consumer demand as concerns about health considerations & social distancing give way to the long-term effects on the job market, wages, consumer behavior & consumer spending,” Herzog said.Having said that, the analyst identifies a number of names in the beverage sector that are well setup to outperform as the year progresses.We ran three of Goldman Sachs' top picks through TipRanks’ database to further gauge Street sentiment towards them. As it happens, all are Buy rated, and what’s more, the analysts forecast all to have at least 25% upside in the year ahead. Let’s take a closer look.Boston Beer Company (SAM)Let’s start off with one of 2020’s sturdier performers in the face of COVID-19. Although the Boston Beer Company’s share price is down by 5% year-to-date, it has fared significantly better than the overall market, considering the S&P 500’s 20% decline.There are a couple of reasons, according to Herzog, why the company has proved resilient. SAM’s relative lack of exposure to the on-premise channel, compared to its peers, means it has taken less of a hit from the nationwide closure of bars and restaurants. 11% of SAM’s business is on premises, compared to the industry average of 16%. Furthermore, the reduction of on-premise sells is set to be countered by a strong retail/take home trend.The second positive driver for SAM is due to it being “advantageously levered” to what Herzog claims is “one of the few ‘big’ growth opportunities in alcoholic beverages,” - hard seltzers. In its brand Truly, SAM has the No.2 position in the hard seltzer market, which the analyst believes, it is not about to relinquish any time soon.The trend, Herzog argues, is only likely to grow. The analsyt said, “We believe the hard seltzer category is here to stay and our analysis suggests category volumes could expand 2-3x by 2023 to become ~10% of total beer consumption in the U.S., up from ~3.5% in 2019. As a strong No.2, we believe Truly could capture a significant share of this growth and our sensitivity analysis suggests every incremental 6% step-up in Truly shipment volume growth boosts SAM’s net rev growth by +340bps.”To this end, Herzog resumes coverage of SAM with a Buy rating along with a $415 price target. The upside from current levels is 13%. (To watch Herzog’s track record, click here)Turning now to the rest of the Street, SAM has a Strong Buy consensus rating, based on 7 Buys and 2 Holds. At $450, the average price target is set to provide upside of 24%, should it be met in the year ahead. (See SAM stock analysis on TipRanks)Constellation Brands Inc (STZ)Unlike SAM, Constellation Brands can’t boast of beating the market so far in 2020. The largest beer import company in the US is down by 30% since the turn of year. But like SAM, Herzog sees multiple growth drivers for Constellation, calling it “one of the most attractive stocks across consumer staples and among the rare ones levered to growth.”Herzog argues STZ’s valuation has been unfairly punished due to the coronavirus’s impact on on-premise business (roughly 15% of the company’s beer sales) and an overreaction to its exposure to California, where stay-at-home measures have been implemented since mid-March, and, therefore, impacting sales.But There is another problem that has just reared its ugly head for Constellation. The company owns Grupo Modelo’s - the maker of Corona beer – U.S. rights. Unlike in the U.S., beer is not considered an essential business in Mexico and Anheuser-Bush InBev, who own Modelo’s rest of the world’s rights, temporarily shut down its Mexican brewing facilities on Sunday April 5th, to help curb the spread of the virus. Constellation Brands’ CEO Bill Newlands has said the company’s Mexico plants are still operating and it has 70 days of inventory to guarantee minimal disruption, but with uncertainty currently in the air, it will be interesting to see if the plants remain open for much longer.Nevertheless, Herzog is confident in Constellation’s long-term growth drivers. The analyst said, “We believe STZ can deliver on its growth objectives without significant degradation to its beer operating margin, which at ~39% is already very high and best-in-class. We believe, like the best CPG operators out there, STZ has multiple levers to pull to drive top-line growth while protecting profits/margins, and we expect this to happen as the company “leans into change” and leads on growth.”Therefore, coverage on Constellation is resumed, with a Buy rating and a $165 price target, implying possible upside of 17%.Overall, 10 Buys and 6 Hold ratings published over the last 3 months present STZ with a Moderate Buy consensus rating. The average price target comes in at $192.07, and suggests possible upside of 37%. (See Constellation Brands stock analysis on TipRanks)Monster Beverage Corp (MNST)The last name on our list nestles somewhere between our two previous companies. With a 15% year-to-date drop, according to Herzog, the manufacturer of energy drinks including Monster Energy, Relentless and Burn is well set up to reward investors. “Simply put,” Herzog says, “We see recent share price pressure as a buying opportunity.”Herzog believes “strong customer loyalty & low household penetration” are reasons why the energy category “will remain resilient in the current climate.”And according to optimistic comments from the analyst’s convenience store retailer contacts, concerns about significant less demand across the category due to COVID-19’s impact on lower traffic, are “misplaced.” Additionally, energy drink consumers are likely to step up purchases in other channels and load up on pantry items.“In short,” Herzog concludes “we think this is being largely disregarded by the market, with shares trading at a FY21 P/E multiple of 23.5x, an -12% discount vs. MNST 1-year historical average multiple of 26.5x and a -19% discount vs. MNST’s 3-year historical average multiple of 28.9x. Most importantly, MNST’s current valuation only implies an 85% premium vs. the S&P 500 (slightly below MNST’s 5-year average premium of 86%) despite limited downside risk to growth, improving margins & an increasingly rational competitive environment.”Bottom line, what does it mean for investors? Herzog resumes coverage with a Buy rating and a $65 price target. Expects returns in the shape of 20%, should the analyst’s thesis play out in the coming months.Looking at the consensus breakdown, 7 Buys, 3 Holds and 1 Sell rating coalesce to a Moderate Buy consensus rating for the energy drink manufacturer. Investors will take home a 19% gain, should the average price target of $67.33, be met over the next year. (See Monster Beverage stock analysis on TipRanks)To find good ideas for beverage stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.