Back to top

Bull of the Day

While giant brewers like Budweiser (BUD) and Molson Coors (TAP) still dominate the U.S. beer market, craft brewers have managed to carve out a decent sized niche for themselves. And on a recent ‘fact finding mission’ that I took to the headquarters of Boston Beer Company (SAM - Analyst Report) in Massachusetts, I can see why many have embraced these smaller brewers.

Not only do companies like SAM offer an arguably better beer, but you can tell that there is a great level of care put into the product as well. Many consumers have noticed the flavor—or at least the uniqueness-- and have allowed SAM to grow into the great position it finds itself in today.

Yet even with the solid level of growth that the company has seen so far, SAM makes up less than 1.5% of the total U.S. market, suggesting that Boston Beer clearly has plenty of room to grow. For this reason, and America’s current obsession with craft beer, this brewer of Boston Lager could be worth a closer look.

SAM in Focus

The growth for SAM can best be seen in the recent earnings estimate revision trends for the company. Analysts clearly like the craft beer story too, as not a single estimate has gone lower for SAM in the past 60 days, while when zeroing in on the current year, three estimates have gone up.

The magnitude of the increases has also been impressive, with the current year surging from $5/share 90 days ago, to the current level at $5.36/share. Current quarter estimates have also jumped, suggesting that analysts are quite bullish on the company’s prospects.

But don’t worry about SAM being able to live up to the hype, as the firm has a pretty solid track record at earnings time. It has beaten in three of the last four earnings release dates, while its Zacks ESP is positive, suggesting that it is well positioned to beat this quarter as well.

Thanks to these factors, SAM has earned itself a Zacks Rank #1 (Strong Buy), meaning that we are looking for some more outperformance in the weeks ahead. And considering how well SAM did following the last earnings report, this should definitely be a stock on your radar.

Not all craft beer is equal

While SAM is well positioned for further gains, it is important to remember that not all the stocks in the ‘beverages-alcoholic’ industry are as highly ranked. In fact, SAM is actually the cream of the crop from the Zacks Rank perspective, as it is the only one that has a #1 Rank.

Meanwhile, one of its top craft brew competitors, the Craft Brew Alliance (BREW - Snapshot Report) is one of just two stocks that has a Zacks Rank of 5 (Strong Sell) in this industry (also read Bear of the Day: Craft Brew Alliance). So, if you are looking for a beer play in the craft space, you should probably look to SAM over BREW for hopes of better performance in this in-focus industry.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SIGNET JEWE… SIG 115.12 +6.56%
US SILICA H… SLCA 70.26 +3.32%
CHYRONHEGO… CHYR 2.63 +2.33%
MALLINCKROD… MNK 80.00 +2.18%
TRIQUINT SE… TQNT 19.39 +2.16%