55.20 +0.17 (0.31%)
After hours: 7:58PM EDT
|Bid||55.40 x 1400|
|Ask||56.00 x 900|
|Day's Range||53.92 - 56.26|
|52 Week Range||32.58 - 102.70|
|Beta (5Y Monthly)||0.84|
|PE Ratio (TTM)||11.67|
|Forward Dividend & Yield||1.44 (2.64%)|
|Ex-Dividend Date||Jun 09, 2020|
|1y Target Est||55.22|
As bars across Europe gradually reopen, up to a million free or pre-paid beers are waiting to lure back wary consumers. Beer makers from global giant Anheuser-Busch InBev to smaller craft brewers have set up schemes for consumers to buy drinks in advance to support shuttered bars with, in some cases, the reward of free beer when the doors reopen. AB InBev launched its first scheme "Cafe Courage" in Belgium and has since sold over 200,000 Stella Artois, Jupiler and other brands.
Investors need to pay close attention to AB InBev (BUD) stock based on the movements in the options market lately.
Moody's Japan K.K. has confirmed Asahi Group Holdings, Ltd.'s Baa1 issuer and senior unsecured ratings. The rating action concludes the review for downgrade initiated on 22 July 2019 following the company's announcement that it will acquire a 100% equity stake in Anheuser-Busch InBev SA/NV's (Baa1 stable) Australian subsidiary, CUB Pty Ltd. Asahi announced the closing of the acquisition on 1 June 2020 with regulatory approvals in Australia and an updated plan for permanent financing. Asahi will pay AUD16 billion (about JPY1.1 trillion) in cash for this acquisition.
JAB Holding also owns Panera, Krispy Kreme, Dr. Pepper Snapple, and a number of other well-known brands.
The oil sector is still rife with risk. Four experts offer up these stocks outside the oil patch that look like far more profitable investments.
* AT&T (NYSE:T) * Altria Group (NYSE:MO) * RCI Hospitality (NASDAQ:RICK) * Molson Coors Beverage (NYSE:TAP) * Anheuser-Busch InBev (NYSE:BUD) * Yamana Gold (NYSE:AUY) * Simon Property Group (NYSE:SPG) * ViacomCBS (NASDAQ:VIAC) * Champignon Brands (OTCMKTS:SHRMF)Although it's natural to mourn the cessation of the bull market, from another perspective, the novel coronavirus has gifted patient investors with a once-in-a-lifetime opportunity. Previously, so many companies had fundamentally strong business, but were gutted once the pandemic struck. Now, these stalwarts can be reasonably considered cheap stocks to buy.Better yet, no matter what your thoughts are on the market's trajectory, investors should be looking to advantage these lows. For instance, if you still believe in a quick, V-shaped economic recovery, then acquiring cheap stocks now would see you earn a swift profit.However, if we take the opposite road and slog it out through years of frustration, this would still be a net positive -- unless you must cash out now for whatever reason. That's because a slow recovery allows you to build a robust portfolio of high-quality names. By the end of these trials, you'll thank yourself for thinking ahead.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt the same time, not all cheap stocks to buy are viable bets for the long haul. As the bankruptcies of once-iconic American companies have demonstrated, we are still in the midst of an unprecedented calamity. Therefore, even solid names will likely suffer volatility, especially if we have an extended recovery.For this list of discounted companies, I'm primarily looking at businesses that can ride out the present calamity; hence, my focus on the vice industry. As well, I'm considering investments that may not find favor now but should have long-term upside. * 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure As with any pick you're considering, you should already acknowledge that turbulence is a given. Implement common-sense risk mitigation and you'll likely do well with these cheap stocks. AT&T (T)Source: Roman Tiraspolsky / Shutterstock.com AT&T is not only regarded among many analysts as one of the best cheap stocks to buy during this crisis, it's also incredibly boring. But remember, in the new normal, boring typically means stable, and stability is a very good thing. Here, this translates to T stock sporting a nearly 7% dividend yield.Additionally, AT&T features a forward price-earnings ratio of 9.5. That's incredibly low compared to both the telecommunications industry and broader benchmarks. Still, there's a reason for the discount. Over the years, the company has become very bloated, with some high-dollar decisions not working out favorably.Still, it's possible that the market is focusing too much on the negatives of T stock and not enough on the positives. For instance, the 5G network rollout will provide years of support for AT&T. In addition, the company owns HBO, which gives AT&T's streaming service much more gravitas than the competition. Altria Group (MO)Source: Kristi Blokhin / Shutterstock.com Admittedly, in the pre-pandemic years, Altria Group was disappointing. As you know, smoking rates are on the decline. Even worse, a new competitor, vaporizers or e-cigarettes, began providing a cleaner alternative to combustible cigarettes.However, MO stock became interesting when Altria invested heavily in Juul. However, underage vaping controversies saw Juul hit with lawsuits and ugly public accusations. Invariably, Altria's stake in Juul turned into a debacle.So, with all that, does Altria really belong in this list of cheap stocks to buy? While the headlines look terrible for the tobacco giant, the coronavirus may provide a surprising catalyst. According to research in Canada, recessions have a positive impact on smoking and imbibing rates. * 7 Cheap Stocks to Buy With Great Potential If this translates stateside -- and there's no reason to believe it wouldn't -- smoking rates could rise. Also, growing tensions between the U.S. and China may restrict vaporizer sales, which would cynically benefit Altria. RCI Hospitality (RICK)Source: Shutterstock Due to its universally attractive -- though admittedly shady -- business, RCI Hospitality is usually a solid bet, irrespective of broader market conditions. While RICK stock has seen a significant rise in value since hitting a bottom in March, shares are still sharply discounted relative to their pre-pandemic highs.But can RCI make good as a recession-resistant investment under these trying times? I will concede that this is a riskier proposition compared to other cheap stocks. Certainly, new normal protocols such as social distancing don't help when you're in the gentlemen's business. Still, this industry did very well, relatively speaking, during the Great Recession. I wouldn't be surprised if RICK stock provides an encore performance.At the end of the day, RCI meets a human need for close companionship that no technology can replicate. Granted, it's a cheap, twisted take on said companionship, but the demand is there. Molson Coors Beverage (TAP)Source: JHVEPhoto / Shutterstock.com Another vice-related company, Molson Coors Beverage is more palatable for investors than RCI. I mean that figuratively and literally. As a provider of multiple beer brands, including low-cost, budget-friendly beers like Coors Light and Keystone Light, Molson Coors has distinct relevance during our troubles.For many of us, drinking booze is a way to help get the edge off. Obviously, with the quarantines and social isolation, along with mass uncertainty over the viability of our economy, many reasons exist to knock down a cold one. But so far, it's TAP stock that's the one getting knocked down.Currently, shares are trading at levels last seen in the early years of last decade. What gives? * 25 Stocks to Buy for the Reopening Rally Unfortunately, shuttered restaurants have had a huge impact on Molson Coors and several other beverage makers. But with most states reopening -- and some blatantly ignoring common sense -- it's possible that cheap beer will start flowing again. Therefore, you'll want to keep Molson on your list of cheap stocks to consider. Anheuser-Busch InBev (BUD)Source: legacy1995 / Shutterstock.com Similar to Molson Coors, Anheuser-Busch specializes in cheap beer. For many years, Anheuser's flagship brand, Bud Light, has been the most popular beer in America, followed by Coors Light. Personally, I like the taste of Coors Light as far as cheap light beer goes. But Bud Light? It's simply awful.However, the customer is always right. And for the long term, you don't want to fight the tape on BUD stock. Right now, though, shares are at a remarkable discount. With BUD, you have to go back to the Great Recession years to see prices this low.Understandably, that might raise concerns. Typically, cheap stocks are cheap for a reason. In this case, Anheuser-Busch got rattled by the mass restaurant closure. Also, all popular cheap beer brands suffered a massive revenue reduction due to the quarantining of sports.However, the eventual return of sports -- as NASCAR demonstrated -- augurs well for BUD stock. Sure, there many not be fans in the stands but that will change over the next few years. Additionally, sports events provide an incentive for increased grocery sales of cheap beer, which is a net positive for this industry. Yamana Gold (AUY)Source: Shutterstock Fundamentally, you wouldn't consider Yamana Gold cheap. Currently, shares sport a forward P/E ratio of 31.5, which is high compared to the metals and mining industry. But on a technical basis, it's still one of the cheap stocks that you can pick up below double-digit prices.I'll freely concede that such thinking alone is a terrible reason to buy equity in an organization. But AUY stock is riding on the enthusiasm of the gold market. And while the yellow metal has frustrated many investors over the years, this time is different.Yes, those may be the four most dangerous words in investing. However, when Federal Reserve Chair Jerome Powell states that the U.S. economy faces unprecedented risks, this phrase is justified. * 7 Excellent Penny Stocks Ready to Roar Further, the labor market continues to print an ugly picture. Over a nine-week period, 40 million Americans filed for initial jobless claims. This number will probably continue to rise uncomfortably, giving AUY stock a cynical edge. Simon Property Group (SPG)Source: Jonathan Weiss / Shutterstock.com Usually, being the biggest U.S. operator in an industry is cause for celebration. But for Simon Property Group, which specializes in shopping malls, this distinction suddenly became a liability. Obviously, with the onset of stay-at-home orders, social distancing protocols and a sense of fear over contracting Covid-19, very few people could -- or even wanted -- to leave their homes. Naturally, SPG stock tanked.However, shares might interest risk-tolerant contrarians. I must be clear: This is among the riskiest of risky cheap stocks. Therefore, I wouldn't recommend spending a dime more than what your dumb money allocation allows.That said, Simon Property will gradually open stores as states lift their restrictions. As out-of-state travel data revealed, pent-up demand caused many Americans to run to regions that first reopened their businesses. We could see a similar dynamic play out for SPG stock.Another reason to be optimistic is that the company owns a large portfolio of outlet malls. Although traditional department stores are out of favor, retailers offering discounts will never go out of style. ViacomCBS (VIAC)Source: Jer123 / Shutterstock.com At first glance, you'd expect the quarantines to help lift ViacomCBS. Although a traditional content and entertainment powerhouse, ViacomCBS offers mainstream programs that many viewers find compelling. Yet that didn't help VIAC stock on the technical front, with shares plummeting throughout much of February and March.To be fair, VIAC has found robust momentum since hitting its March bottom. Despite that, shares are still discounted relative to their beginning-of-year price. Thus, ViacomCBS qualifies as one of the cheap stocks to buy amid this pandemic.More importantly, VIAC stock has a credible upside pathway. Mainly, the underlying company probably slipped into the background as pure streaming plays like Netflix (NASDAQ:NFLX) stole its thunder. However, as we work through this crisis, ViacomCBS becomes more compelling. * 10 Lithium Stocks to Buy Despite the Market's Irrationality For one thing, ViacomCBS has trusted news brands, which is more crucial than ever before. Additionally, the return of sports -- even in a mitigated fashion -- is a net positive for VIAC due to its live broadcasts. Champignon Brands (SHRMF)Source: Shutterstock Technically the cheapest of the cheap stocks on this list, Champignon Brands can be had for less than two bucks. Admittedly, this announcement will cause many investors to turn away from this company, and that's a good thing. You don't want to touch SHRMF stock if you can't take the heat.But if you can stomach the volatility, Champignon could be one of the most exciting opportunities available. Levered toward the burgeoning psychedelic medicine industry, SHRMF stock may strike you as another vice name. Actually, it's much more than that. Psychedelics offer profoundly positive implications toward addressing mental health issues.Most notable of all, Champignon Brands operates in a market that features incredibly high barriers to entry. Unlike cannabis, which anyone with enough drive can engage, psychedelics are strictly controlled by the federal government. Thus, your money is going to medicinal research, not toward a shady retail market.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he is long AT&T, Altria, gold bullion and Champignon Brands. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post The 9 Best Cheap Stocks to Fill Up On Now appeared first on InvestorPlace.
Japan’s Asahi Group Holdings said it has signed a 1.185 trillion yen ($11 billion) loan with Sumitomo Mitsui Banking Corp (SMBC) to finance the acquisition of Anheuser-Busch InBev’s (BUD) Australian subsidiary Carlton & United Breweries.Back in July, Anheuser-Busch, the world’s largest beermaker said it entered into an agreement for the Japanese beer maker to buy its Australian operations for an enterprise value of A$16 billion ($10.4 billion). The deal has received regulatory approvals and is expected to close on June 1.The brewer of Budweiser, Corona and Stella Artois said it will use the proceeds of the sale to reduce debt.Shares in Anheuser-Busch have this year seen their value cut in half as global lockdown orders tied to the coronavirus pandemic have curtailed beer and other alcohol sales as restaurants and bars remained closed and some countries like Mexico were forced to shut down beer production.The stock declined 0.6% to $40.90 as of Friday’s close in U.S. trading.Last week J. P. Morgan analyst Celine Pannuti upgraded Anheuser Busch’s stock rating to Hold from Sell due to valuation, while keeping the $39 price target intact.At the same time, the analyst cautioned investors to stay defensive in the European beverages sector amid expectations of a “much worse” second quarter following the worst quarter in recent history for the sector due to the fast spread of the coronavirus pandemic.Overall, Wall Street analysts are cautiously optimistic about the stock’s outlook. It scores 3 Buy ratings and 6 Hold ratings from analysts, which add up to a Moderate Buy consensus. Analysts do see some recovery in the shares with the $60.02 average price target indicating 47% upside potential over the coming year. (See Anheuser-Busch stock analysis on TipRanks). Related News: Facebook Workplace Hits 5 Million Paid Users As Remote Work Demand Rises KKR Invests $1.5 Billion in Reliance’s Jio Platforms In Biggest Deal In Asia Beleaguered Hertz Sinks 36% In After-Market On Bankruptcy Protection Filing More recent articles from Smarter Analyst: * Visa Sees Solid Uptick In Spending As Lockdown Eases * Regeneron, Intellia Expand Partnership To Develop Hemophilia Treatments * Western Union Seeks To Buy MoneyGram; MGI Spikes 32% * Gilead Sinks 3% On New Remdesivir Data; Analysts Stay Sidelined
Asahi Group Holdings plans to borrow 1.19 trillion yen (US$11 billion) from Japanese lender Sumitomo Mitsui Banking Corporation to complete its long-brewing purchase of Anheuser-Busch InBev's Australian business.AB InBev, the world's largest brewer, agreed to sell its Australian business for A$16 billion (US$11 billion) to Asahi in July last year, after briefly shelving the Hong Kong initial public offering of its Asia-Pacific arm, Budweiser Brewing Company APAC, amid months of anti-government street protests in the city.The bulk of the proceeds from the sale of the Australian unit, Carlton & United Breweries, is expected to be used to pay down debt. AB InBev's debt topped US$95 billion at the end of 2019, following its acquisition of rival SABMiller two years earlier.Budweiser ultimately proceeded with a slimmed down IPO for the Asia unit in September, raising US$5 billion. Several companies delayed or cancelled their IPOs last year, as the street protests intensified and deal valuations declined in the summer. The IPO of AB InBev was a shot in the arm for the Hong Kong stock exchange, after it lost its crown as the top market for IPOs in the first half of the year.It was the second-biggest listing in Hong Kong last year after Alibaba Group Holding' US$12.9 billion secondary listing in the city. Alibaba is the parent company of the South China Morning Post.In a statement on Monday, Japanese brewer Asahi said it had signed an agreement with Sumitomo for the loan and would refinance the borrowing by raising debt and 300 billion yen of "equity credit attributes".The deal comes three years after AB InBev agreed to sell the beer brands Grolsch and Peroni, as well as some of the European operations of the former SABMiller, to Asahi for US$2.9 billion. The current deal for AB InBev's Australian business gives the Japanese brewer a much larger presence Down Under, where it already sells its Asahi Super Dry lager.Asahi originally planned to complete the acquisition in the first quarter, but announced in March that the deal would be delayed, as the companies were still awaiting approval from Australian authorities amid the coronavirus pandemic, which has forced many countries to close their borders and shut businesses to stem the spread of the virus.The coronavirus, which causes the disease Covid-19, has infected more than 5 million people worldwide. Australia's borders remain closed to international visitors, but the country agreed this month to create a travel "bubble" between Australia and New Zealand when it is safe to do so.The transaction is expected to be completed on June 1, Asahi said on Monday.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
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.
J.P. Morgan notes that the stock has lost nearly half its value since the start of the year, putting it squarely at the bottom of the pack of its beverage peers.
There's no question Americans are facing unprecedented stresses these days. Data suggests some Americans are relying on vices such as alcohol, tobacco and cannabis to get through the health crisis. At the same time, gamblers have been driven online for the time being due to casino closures.When times are good, people like to celebrate with a drink or a smoke or a roll of the dice. When times are hard, they turn to these activities as a distraction or a means of self-medication. Regardless of how you feel about the activities themselves, here are seven "sin stocks" to buy that Morningstar analysts say have significant upside.Philip Morris International Inc. (NYSE: PM)Philip Morris is one of the largest global tobacco companies and holds nearly a 30% market share of the international cigarette and heated tobacco markets.Analyst Philip Gorham says Marlboro customer loyalty is extremely high and Philip Morris has considerable pricing power. The company has a first-mover advantage in heated tobacco, but it remains to be seen whether or not heated tobacco can completely offset lost cigarette volumes over time. Gorham says a successful launch of iQOS in the U.S. would generate completely incremental revenue given the company currently has no U.S. products.Philip Morris shares also pay a sizable 6.9% dividend.Morningstar has a Buy rating and $98 price target for PM stock.See Also: 7 Best Cheap Stocks To Buy Or Sell Cronos Group Inc (NASDAQ: CRON)Cronos is one of the "big four" Canadian legal producers of cannabis and owner of brands such as PEACE NATURALS, COVE and Lord Jones. Cronos reported impressive 180% revenue growth in the first quarter, but it also reported a $45 million operating loss.Analyst Kristoffer Inton says write-downs associated with lower prices due to oversupply in the Canadian market were the cause of the loss. However, Inton says Cronos' write-downs are shrinking, whereas other cannabis producers' losses are growing. Morningstar is projecting Canadian cannabis demand will grow 20% annually over the next decade, and Cronos has the balance sheet to expand its market share.Morningstar has a Buy rating and $8.50 fair value estimate for CRON stock.Las Vegas Sands Corp. (NYSE: LVS)Las Vegas Sands is an international casino operator that owns casino resorts and hotels in Las Vegas, Macau and Singapore. Analyst Dan Wasiolek says Macau and Singapore are the keys to the bull case for Las Vegas Sands.Macau accounted for about 59% of Sands' earnings in 2019, and Singapore was another 31%. Wasiolek says Sand's has a dominant position in the high-growth Cotai Strip in Macau, and it has a duopoly in place in Singapore through at least 2030. COVID-19 shutdowns in Las Vegas and a 97% drop in gross gaming revenue due to COVID-19 may be scary, but Wasiolek estimates Las Vegas sands has 18 months of liquidity at nearly zero revenue.Mornigstar has a Buy rating and $62 fair value estimate for LVS stock.British American Tobacco PLC (NYSE: BTI)British American Tobacco is an international tobacco company that owns brands such as Lucky Strike, Newport and Camel and generates 45% of its revenue from the U.S. market.While cigarette volumes are likely in secular decline, Gorham says British American's accelerated volume declines in fiscal 2019 may be particularly troubling to investors. However, he says the company may be best-positioned to capitalize on the next generation of tobacco products, including its Vype and Vuse vaping brands an Glo heated tobacco brand. Gorham says British American's buyout of Reynolds American was a solid strategic move given its pricing power and the value of its assets.Morningstar has a Buy rating and $59 target for BTI stock.Anheuser Busch Inbev NV (NYSE: BUD)Anheuser Busch Inbev is the world's largest brewer and owner of brands such as Budweiser, Beck's and Corona.Gorham says the worst of the downturn may be yet to come for Anheuser Busch, but the company has plenty of liquidity to navigate the crisis. In the longer term, he says the company's near monopoly and cost advantages in developed markets make the stock a solid investment, and its potential for free cash flow generation isn't fully priced in at current levels. Gorham projects volumes will fall 20% in the first half of 2020 and only 7% in the second half of the year.Morningstar has a Buy rating and $96 fair value estimate for BUD stock.Altria Group Inc (NYSE: MO)Altria Group is one of the world's largest tobacco companies, but it's also one of the most diversified sin stocks. In addition to being the parent company of Philip Morris USA, Altria has a more than 10% ownership stake in Anheuser Busch, a 35% stake in vaping leader JUUL, and a 45% stake in cannabis stock Cronos.Gorham says COVID-19 has certainly disrupted Altria's business, but its underlying business trends in the first quarter appear to be solid. Cigarette shipment volume was up 6%, and management reiterated its guidance that industry-wide volume will drop between 4% and 6% this year.Morningstar has a Buy rating and $54 fair value estimate for MO stock.See Also: 7 Best-Performing Stocks Of 2020: Buy, Sell Or Hold?Constellation Brands, Inc. (NYSE: STZ)Constellation Brands is one of the world's largest producers of wine, spirits and imported beer and owns brands such as Arbor Mist, Black Velvet and SVEDKA. Constellation also recently upped its ownership stake in leading Canadian cannabis producer Canopy Growth Corp (NYSE: CGC) to nearly 40%.Analyst Nicholas Johnson says Constellation's beer business should help support numbers for now, and the sell-off in the stock has pushed it to "egregiously cheap" levels. In fact, given his bullish long-term outlook for Constellation, Johnson says it's his top stock pick in the pure-play beverage group.Morningstar has a Buy rating and $215 price target for STZ stock.Latest Ratings for CRON DateFirmActionFromTo May 2020StifelMaintainsHold Apr 2020Piper SandlerDowngradesOverweightNeutral Apr 2020B of A SecuritiesDowngradesBuyNeutral View More Analyst Ratings for CRON View the Latest Analyst RatingsSee more from Benzinga * Here's How Much Investing 0 In The 2018 Cronos Listing Would Be Worth Today * The Road To Recovery For Las Vegas Casino Stocks * Cannabis Stock Rally Puts Short Sellers In The Red For 2020(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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 Canat Keep Boston Beer Down appeared first on InvestorPlace.
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.
Budweiser is bringing the music you love, with stories you've never heard with the launch of a new interactive live music and storytelling series called "Budweiser Rewind". This Saturday, May 16, the iconic beer brand kicks off this new series starting with Black Eyed Peas performing live from Will.i.am's studio in Los Angeles, CA. Concert-goers can tune in to watch on YouTube.
TaxAct® has made filing a tax return even more refreshing this year by partnering with Natural Light to enable its filers to receive a case of Natty for completing their returns by the extended tax deadline of July 15.
Throughout the coronavirus crisis, stay-at-home Americans have continued to support the makers of alcoholic beverages. Liquor and wine lead the parade, but hard seltzer is coming up fast. As for takeout: pizza rules.
Are Mr. Carlos Brito, Chief Executive Officer; and Mr. Fernando Tennenbaum, Chief Financial Officer. To access the slides accompanying today's call, please visit AB InBev's website at www.ab-inbev.com and click on the Investors tab and the Reports and Results Center page. It is possible that AB InBev's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements.
A federal appeals court overturned a previous ruling, allowing Bud Light to say whatever it likes, in advertising and on packaging, about corn syrup in its competitor’s beer.
National Beer Wholesalers Association CEO & President Craig Purser joins Yahoo Finance’s Zack Guzman to discuss how the coronavirus is disrupting the beer industry.
Yahoo Finance’s On The Move panel recap the latest earnings from PayPal, Grubhub, Anheuser-Busch Inbev and Lyft.
(Bloomberg) -- Anheuser-Busch InBev NV warned that its biggest three beer brands -- Budweiser, Stella Artois and Corona -- are bearing the brunt of a collapse in sales caused by Covid-19.Revenue from those brands dropped 11% in the first quarter, about twice the rate of decline for the company’s overall portfolio of more than 500 labels. Shipments plunged the most in China, where the effect of Covid-19 lockdowns hit hardest because they started earlier than in the U.S. and Europe.As demand evaporates amid a global shutdown of bars and restaurants, AB InBev and rivals Heineken NV and Carlsberg A/S are racing to find ways to cut costs to reduce the effect on profit. So far AB InBev’s more expensive products are suffering less. Longer-term, as the pain from a pandemic-induced recession spreads from blue-collar to white-collar workers, that could also harm the collection of niche premium labels that AB InBev has built up in past years.“We do better when consumers feel good about the future,” Chief Executive Officer Carlos Brito said by phone. Sales of premium brands are slowly recovering in China after nightlife establishments there reopened, Brito said. Demand for more expensive beers “could have a couple of bumps, but it will remain in our view.”AB InBev is in more of a pinch than Heineken and Carlsberg, given that it’s also struggling to reduce its a pile of debt that stood at $96 billion at the end of 2019. The brewer said Thursday that shipments plunged 32% in April. Budweiser, Stella and Corona are in its mid-priced segment in the U.S. The company’s stock has lost almost half its value this year.Amsterdam TaxiCarlsberg said last week that it was already preparing for a new normal in which more profitable craft labels face more competition from cheaper alternatives. An eye-opening moment for Chief Executive Officer Cees ’t Hart was when he took a taxi to Amsterdam airport on April 26 on his way to Copenhagen: He was the driver’s first customer in a month, and the 60-euro fee his only income.“We need to cater to this with a slightly different portfolio -- it could be that for a while, we will have have a focus on economic brands,” the CEO said. “The aftermath will much longer and maybe quite a bit more painful, with people not having the money to spend.”Cut-price beer is performing well in some markets, such as South Africa. AB InBev was already seeing its inexpensive Lion Lager grow at a double-digit rate in the first quarter there before its production and distribution was halted to comply with a government mandate.China’s lockdowns were largely responsible for AB InBev’s 9.3% decline in total first-quarter shipments, and excluding that market, the decline was only 3.6%. That may bode badly for Europe and the U.S., which entered lockdowns later.While some craft breweries are seeing surging demand from drinkers looking to prop up local producers, catastrophic levels of unemployment in the U.S. in the longer term may eventually lead those consumers to switch to less glamorous labels such as Bud Light.In recent years, demand for craft has surged, and the industry will be keen to see if that can continue. In China, the market hardest-hit by Covid-19 restrictions in the first quarter, AB InBev’s super-premium offerings outperformed the rest.AB InBev, Carlsberg and Heineken, caught out by the trend in developed markets such as the U.S. and the U.K., have collectively spent billions of dollars acquiring popular small brands like Devil’s Backbone, Elysian Brewing, Lagunitas and London Fields.”There will be permanent economic damage and the shape of this recession is likely to impact low-income workers hardest, and we probably will see some down-trading as a result of this,” Trevor Stirling, an analyst at Sanford C. Bernstein, said by phone.(Updates with CEO comment in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.