6 Beverage Stocks to Quench Your Thirst for Upside

All of these stocks get an 'A' or a 'B' from my Portfolio Grader

   
6 Beverage Stocks to Quench Your Thirst for Upside

For many folks, a cold beer or a fizzy cola is the definition of a consumer staple. This doesn’t just go for Americans but also for emerging-market consumers who are part of a rising middle class. As folks get a little more cash to spend, soft drinks and alcohol are some of the first things they add to their shopping lists.

I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve highlighted six beverage stocks to buy.

Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.” Here they are:

Anheuser-Busch (NYSE:BUD) is the world-famous brewing company that has more than 200 beer brands. BUD stock has posted a gain of 26% in the last year, compared to a 10% gain for the Dow Jones. BUD stock gets a “B” grade for operating margin growth, an “A” grade for earnings growth, a “B” grade for earnings momentum, an “A” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “B” grade for the magnitude in which earnings projections have increased over the past months, a “B” grade for cash flow and a “B” grade for return on equity. For more information, view my complete analysis of BUD stock.

Diageo (NYSE:DEO) is the producer of Smirnoff, Johnnie Walker, Baileys Original Irish Cream, Captain Morgan, Tanqueray and Guinness. In the past year, DEO has posted a gain of 27%. Diageo stock gets a “B” grade for the magnitude in which earnings projections have increased over the past months, a “B” grade for cash flow, and an “A” grade for return on equity. For more information, view my complete analysis of DEO stock.

Companhia de Bebidas das Americas (NYSE: ABV) is a Brazilian beverage company that has posted a gain of 48% since last March. ABV stock gets a “B” grade for operating margin growth, a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of ABV stock.

Coca-Cola (NYSE:KO) is perhaps the most famous international beverage company, and it licenses more than 500 nonalcoholic beverage brands. In the past year, Coca-Cola stock has climbed 10%. KO gets an “A” grade for return on equity. For more information, view my complete analysis of KO stock.

Fomento Economico (NYSE:FMX) is a Mexican holding company that is integrated by a Coca-Cola bottler, OXXO convenience stores and its investments in Heineken. FMX stock has outpaced the broader market with a gain of 33% in the last 12 months. FMX stock gets a “B” grade for operating margin growth, a “B” grade for the magnitude with which earnings projections have increased over the past month and a “B” grade for cash flow. For more information, view my complete analysis of FMX stock.

Brown-Forman (NYSE:BF.B) is best known for its brands Jack Daniels, Finlandia and Southern Comfort, among others. Brown-Forman rounds out the list with a 19% gain in the last year. BF stock gets a “B” grade for operating margin growth and an “A” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of BF.B stock.

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.


Article printed from InvestorPlace Media, http://investorplace.com/2012/03/6-beverage-stocks-to-drink-up-bud-deo-abv-fmx-bf-b-ko/.

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