Back to top

Image: Bigstock

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

Read MoreHide Full Article

Earnings estimate revisions are a fickle beast. Stocks which were flying high last month could be down in the dumps after a bearish downside revision. But paying attention to these revisions before they show up in the price could help investors avoid potential downfalls. Today’s Bear of the Day is a stock that has been flying high but has seen estimates come down. 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 thirty days, two analysts have cut their estimates for the current year while one analyst has cut its estimates for next year. The bearish sentiment has dropped our current year Zacks Consensus Estimate from $4.88 to $4.80 while next year’s number has come down from $5.48 to $5.36. Next year’s number still represents earnings growth of 11.56% year-over-year.

Investors looking for other stocks within the Beverages – Alcohol industry should check out Zacks Rank #1 (Strong Buy) Compania Cervecerias Unidas (CCU - Free Report) and several Zacks Rank #2 (Buy) stocks including Diageo (DEO - Free Report) .

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>


In-Depth Zacks Research for the Tickers Above

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

Diageo plc (DEO) - free report >>

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

AnheuserBusch InBev SANV (BUD) - free report >>