This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

7 Alcohol Stocks That Analysts Toast

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Anheuser-Busch Inbev (BUD) is the world's largest brewer, and one of the top five consumer-products companies. It holds a 49% U.S. beer market share across its 13 brands.

The company is rebounding from the slowdown it experienced along with the economy. Revenue grew by 4.4% in 2010 on only a 2.1% increase in volume, but earnings jumped 28% as it realized cost savings from its acquisition of Anheuser-Busch in 2008.

Morningstar analyst Dave Sekera said in a March 3 research note, after reviewing its fiscal 2010 earnings release, that "the firm's scale, brand strength and operating leverage will generate solid long-term shareholder returns."

He says the company's sheer scale makes it a formidable competitor. "Thanks to its size, it can outspend, outsell and out-market any beer company in the world," said Sekera. "Its success has been driven by its management team, which has instilled a corporate culture of relentless cost-cutting, a drive to increase shareholder value and a desire to outperform the competition."

Morningstar gives the shares a three-star rating out of a possible five and its shares a current fair market value of $58. It's trading at $57 now.

Anheuser-Busch Inbev owns four of the world's top 10 beer brands, has the No. 1 or 2 market position in 19 countries, and has a dominant share in several key markets including Brazil (69%), the U.S. (49%) and Canada (42%).

Morningstar's review of analysts' ratings found 17 "buy" ratings, seven "outperforms," 11 "holds" and one "underperform."

Goldman Sachs upgraded Anheuser-Busch Inbev shares to "buy" from "neutral" on March 9, saying "we believe the market is underestimating the positive impact of a U.S. economic recovery on the company."

Shares are little changed this year, but up 13% over the past year, giving it a $90 billion market value.
2 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BUD $129.14 0.95%
DEO $115.90 0.84%
GS $189.15 0.25%
SAM $212.89 -1.20%
TAP $92.50 0.87%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs