Back to top

Bear of the Day: Anheuser-Busch InBev (BUD)

Read MoreHide Full Article

Today’s Bear of the Day is in an industry which ranks in the Bottom 5% of our Zacks Industry Rank. That means that the stock, along with many of its peers, has seen downward earnings estimate revisions coming from analysts. It doesn’t mean that the stock is necessarily doomed, it just means that investors could see the earnings picture get worse before it gets better.

I’m talking about Zacks Rank #5 (Strong Sell) Anheuser-Busch InBev (BUD - Free Report) . Anheuser-Busch InBev SA/NV, a brewing company, engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks worldwide. It offers a portfolio of approximately 500 beer brands, including Budweiser, Corona, and Stella Artois; Beck's, Castle, Castle Lite, Hoegaarden, and Leffe; and Aguila, Antarctica, Bud Light, Brahma, Cass, Chernigivske, Cristal, Harbin, Jupiler, Klinskoye, Michelob Ultra, Modelo Especial, Quilmes, Victoria, Sedrin, Sibirskaya Korona, and Skol. 

The reason for the unfavorable Zacks Rank is the series of negative earnings estimate revisions coming from analysts. Over the last sixty days, two analysts have cut their current year and next year earnings numbers. The bearish moves have cut our Zacks Consensus Estimate for the current year from $4.65 to $4.31 while next year’s number has dipped from $5.36 to $4.97.

Looking across the Alcoholic Beverages industry, many stocks have seen negative revisions. There are a handful of stocks coming in at a Zacks Rank #3 (Hold) including Castle Brands (ROX - Free Report) . The only Zacks Rank #2 (Buy) stock in the industry is Carlsberg (CABGY - Free Report) .

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Castle Brands, Inc. (ROX) - free report >>

Carlsberg AS (CABGY) - free report >>

Anheuser-Busch InBev SA/NV (BUD) - free report >>

More from Zacks Bear of the Day

You May Like