Top Brewers Stocks to Buy in 2019
The second biggest wine company in Canada is also into beer. They recently launched the Wayne Gretzky Craft Beer. They are focusing on marketing and valuation has recently come down. In good times and bad, people will go out for a drink. The company grows by acquisition and the multiple has come down, making it a perfect entry point. A very well-managed, growing company. The legalization of marijuana is not expected to impact wine consumption.
Molson Coors Canada (B) (TPX.B-T)
The well known Canadian brewer has several well-known brands under their wing, including Coor Light and Molson Canadian. They are working together with Hexo in order to start selling marijuana infused beverages in Canada.
Brick Brewing Company Ltd. (BRB-T)
A well-run Ontario based brewery that is growing their brands. They are also looking into cannabis beverages as a big opportunity. They are the second largest craft brewer in Canada. They are well positioned for growth.
(A Top Pick Jun 18/18, Up 1%) Still likes it. It's well-run. They're growing their brands and they have a big opportunity to get into cannabis beverages which will be legal in Canada in October 2019. BRB is well-positioned for this and this market could be very large.
Andrew Peller (ADW.A-T)
The second biggest wine company in Canada. They are focusing on marketing and valuation has recently come down. In good times and bad, people will go out for a drink. The company grows by acquisition and the multiple has come down, making it a perfect entry point. A very well-managed, growing company. The legalization of marijuana is not expected to impact wine consumption.
(A Top Pick Apr 28/21, Down 32%) Beverages had a good run during Covid as consumers stocked up. Peller saw good growth, even though some areas of Canada were shut down. But import costs have risen, so margins have declined in the last few quarters. The good news is that travel and restaurants are reopening--and…
Big Rock Brewery (BR-T)
An Alberta based brewery that makes premium craft beer and cider. They have a wholesale and retail segment. They have a strong following in Alberta and is trying to expand outside of its home province through wholesale to provincial liquor boards.
Brewery. Tough for them to compete. Have a strong following in Alberta but his concern would be if their product has a strong enough niche to compete with the big companies.
Constellation Brands Inc (STZ-N)
An international producer of beer, wine and spirits. They have recently sold lower premium brands in order to invest in cannabis product development. They have major stakes in Canopy. A good defensive play.
They delivered a nice revenues beat, but earnings took a hit like many companies due to supply shortages, but manages raised their earnings forecast for the current fiscal year. It's cheap at 18x earnings and well-run.
Boston Beer (SAM-N)
A leading brewer of beer. They’ve won more than 500 awards, and they have a huge market share on the craft beer sector. They recently jumped following a SmarTrend’s Buy recommendation.
Incredible run through the pandemic. Starting to have significant cost pressures, without the ability to pass costs along. A couple of weak quarters. Every time the stock rallies, you have sellers bailing. He wouldn't touch it, too much damage to the technical chart.
Molson Coors Brewing Company (TAP-N)
One of the world’s largest brewers. They are entering into the craft beer market, though these are expensive acquisitions. They generate good cash flow and are paying down debt. A concern is the limited space for growth. They are entering into joint ventures with cannabis companies for infused beverages.
It posted a 5% earnings miss today, but offered a far sunnier forecast -- it can raise prices to keep up with ever-rising costs. It reported revenue growth for the first time in a decade. But wait till the conference call--for this and all stocks--because that's where the meat is. Listen for guidance.
Ambev S.A. (ABEV-N)
The biggest brewery in Latin America. The stock price jumped recently, folowing a strong second-quarter 2019 results. THe company offers a diverse set of products, including beer, carbonated soft drinks, and other non-alcoholic beverages.
Allan Tong’s Discover Picks Ambev doesn’t receive much coverage in this hemisphere, but the stock has beaten or come in line in the past year and pays a 0.77% dividend though is fairly stable at a 1.11 beta. Historic returns have been negative (-34.63% over three years) but are improving at a 4.62% one-year return.…
Anheuser Busch Companies Inc. (BUD-N)
One of the most well established companies in the sector. Their brands include Budweiser, Corona, and Stella. They are the largest brewing company following a merger with SABMiller.
Stockchase Research Editor: Michael O'Reilly Recently reported earnings support the ability of BUD to be able to pass along rising costs to consumers, making it a good inflation hedge. It continues to expand its product line beyond just its iconic beer and has established a strong brand affiliation with the NFL (whose league will begin…
Thai Beverage PCL (TBVPF-OTC)
Thailand’s largest beverage companies, and a leader in Southeast Asia. They are making acquisitions of other beer companies, such as in Vietnam, and also working on their whisky business. It is listed on the Singapore Stock Exchange.
Asia is very inexpensive, money's flown out due to politics. Beer, spirits, and fast food are its primary businesses. Well run. Attractively priced at these levels, with significant upside. (Price target is in SGD.) Yield is 3.11%. (Analysts’ price target is $0.92)