This BUD is Not For Your Portfolio (BUD, ROX, HINKY, SBMRY)

Better plays are available in the beverage sector

With the market screaming higher the last week or so, it’s tougher to find stocks to be bearish on. But if you look at the Zacks Industry Rank, you can find industries that analysts have been bearish on for a while, completely independent of the market’s movements.

This BUD is Not For Your Portfolio The alcoholic beverage business is in the Bottom 18% of our Zacks Industry Rank and at the bottom of that barrel is AB Inbev (BUD).

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AB Inbev is a Zacks Rank #5 (Strong Sell). They are the leading global brewer and one of the world’s top five consumer products companies. Their portfolio of well over 200 beer brands continues to forge strong connections with consumers.

They invest the majority of their brand-building resources on their Focus Brands – those with the greatest growth potential such as global brands Budweiser, Stella Artois and Beck’s, alongside Leffe, Hoegaarden, Bud Light, Skol, Brahma, Antarctica, Quilmes, Michelob Ultra, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske, Hasseroder and Jupiler.

In addition, the company owns a 50 percent equity interest in the operating subsidiary of Grupo Modelo, Mexico’s leading brewer and owner of the global Corona brand.


They wanted to get even bigger, making a bid for SAB Miller (SBMRY) last week. I did a video on the deal you can watch above.

The deal has since been rejected as Miller thinks it’s worth more than AB InBev’s offer. InBev is looking for ways to get more earnings. Analysts have been very bearish on InBev over the last sixty days. Six analysts have dropped their estimates for the current year and next year.

The bearish attitude has dropped our Zacks Consensus Estimate from $5.49 to $5.14 for the current year and down from $5.80 to $5.35 for next year.

If you’re looking for a better alternative within the same industry, take a look at Zacks Rank #2 (Buy) stocks Castle Brands (ROX) and Heineken (HINKY).

Be sure to click FOLLOW THE AUTHOR above to stay on top of all the hot momentum stocks at David Bartosiak is the Momentum Stock Strategist with Zacks, editor of the Momentum Trader and Home Run Investor, and host of “Trending Stocks”

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SABMILLER PLC (SBMRY): Free Stock Analysis Report

CASTLE BRANDS (ROX): Free Stock Analysis Report

HEINEKEN NV (HEINY): Free Stock Analysis Report

ANHEUSER-BU ADR (BUD): Free Stock Analysis Report

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