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Boston Beer (SAM) Gains As Market Dips: What You Should Know

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Boston Beer (SAM - Free Report) closed at $562.51 in the latest trading session, marking a +0.02% move from the prior day. This change outpaced the S&P 500's 0.03% loss on the day.

Coming into today, shares of the brewer had lost 14.27% in the past month. In that same time, the Consumer Staples sector gained 0.69%, while the S&P 500 gained 3.59%.

SAM will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $6.75, up 10.66% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $579.85 million, up 17.67% from the year-ago period.

SAM's full-year Zacks Consensus Estimates are calling for earnings of $18.08 per share and revenue of $2.26 billion. These results would represent year-over-year changes of +23.16% and +30.04%, respectively.

Investors should also note any recent changes to analyst estimates for SAM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.41% lower. SAM currently has a Zacks Rank of #5 (Strong Sell).

In terms of valuation, SAM is currently trading at a Forward P/E ratio of 31.11. For comparison, its industry has an average Forward P/E of 26.66, which means SAM is trading at a premium to the group.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 12% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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