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Bear of the Day: AnheuserBusch InBev (BUD)

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There is no question that the market is screaming higher. Even the amateurs can make money in a market like this. Pick a four-letter ticker, load the boat and rejoice. It happens every day. It could be frustrating to see for some. When you have a stock that’s not rocking and rolling in this market, it can be confusing. Why not my stock? Is there something I’m missing?

Today’s Bear of the Day is a stock that has seen earnings move to the downside, which could spoil a rally. It’s Zacks Rank #5 (Strong Sell) AnheueserBusch InBev (BUD - Free Report) . Anheuser-Busch InBev SA/NV engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks worldwide. It offers a portfolio of approximately 500 beer brands, which primarily include Budweiser, Corona, and Stella Artois; Beck's, Hoegaarden, Leffe, and Michelob Ultra; and Aguila, Antarctica, Bud Light, Brahma, Cass, Castle, Castle Lite, Cristal, Harbin, Jupiler, Modelo Especial, Quilmes, Victoria, Sedrin, and Skol brands. 

The reason for the unfavorable rank stems from recent earnings estimate revisions coming from analysts. Over the last 60 days, four analysts have cut their earnings estimates for the current year while three have followed suit for next year. The bearish moves have cut the Zacks Consensus Estimates for the current year from $3.27 to $3.02 while next year’s number is off from $3.85 to $3.61.

The Beverages – Alcohol industry ranks in the Bottom 21% of our Zacks Industry Rank. Investors looking for other stocks in the same industry should check out Zacks Rank #2 (Buy) stocks Compania Cervecerias Unidas (CCU - Free Report) and Constellation Brands (STZ - Free Report) .

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Constellation Brands Inc (STZ) - free report >>

AnheuserBusch InBev SANV (BUD) - free report >>

Compania Cervecerias Unidas, S.A. (CCU) - free report >>