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Bull’s Eye Report: Beam Inc. (BEAM)

BEAM is a good pick to hedge market pullbacks


At, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

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Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
Beam, Inc. BEAM Distillers & Vintners 8.2 -1.69% $59.70

Why We Like The Stock:

Beam Inc. (NYSE:BEAM) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. BEAM was our Bull’s Eye pick back on Feb. 14, and though it hasn’t moved higher yet, the stock continues to exhibit technical strength and a low correlation to the market (which is a good thing as the market has been pulling back this week).

More on BEAM – Since late November, the stock has been trending higher into the new year. The stock has some pretty good support right below $60, which has been tested and has held on three occasions since late December. BEAM has a low correlation to the market , which is favorable during pullbacks and shaky periods. We like the stock at current prices with an immediate upside to $63. While it’s not an extremely high-reward trade, the support around $60 makes it a safer play in a market that is searching for some short-term direction.

We Would Be Buyers:

At the current price (~$61.65), or on a pullback to $60.70.

Company Profile:

Beam Inc.  is a premium spirits company that makes and sells branded distilled spirits products in major markets worldwide. Beam’s principal products include bourbon whiskey, Scotch whisky, Canadian whisky, tequila, cognac, rum, cordials, and ready-to-drink pre-mixed cocktails. The company’s portfolio consists of brands, such as Power Brands, Rising Stars, Local Jewels and Value Creators. It has three geographic regions segments: North America, which includes United States, Canada and Mexico; Europe/Middle East/Africa (EMEA), which includes Spain, United Kingdom, Germany, Russia, Turkey, Ireland, Italy, Hungary, Czech Republic, Romania, South Africa, North America Duty Free and Europe Travel Retail, and Asia-Pacific/South America (APSA). In January 2012, it acquired Cooley Distillery. In March 2011, it acquired the Skinnygirl ready-to-drink cocktail business. In June 2012, the company acquired Pinnacle Vodka and Calico Jack rum brands from White Rock Distilleries.

Stock Rating: 8.2

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Beam – Last Three Months

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Beam – Last 12 Months

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Beam – Last Five Years

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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

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