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4 Alcoholic Beverage Stocks To Buy Now

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Investors continually seek out investments and securities that provide significant growth prospects, yet stability for their principal. Say cheers! Many alcoholic beverage stocks possess opportunities for growth while maintaining strong value on the market.  In fact, the Alcoholic Beverage industry currently sits in the top 14% of the Zacks Industry Rank.

Today, we can utilize the Zacks Stock Screener to search for alcoholic beverage stocks that hold a strong Zacks Rank and could provide investors opportunities for capital gains. In other words, we are able to screen for investments that possess profitability within an industry that will always be utilized across the globe.

Check out these 4 alcoholic beverage stocks to buy now:

1. Pernod Ricard SA

Pernod Ricard is based in France and operates as a large manufacturer and seller of a wide range of wines and spirits. As of 60 days ago, the company’s full-year EPS estimates increased by 4.96% to $1.27 per share, while Pernod’s share price has improved by 19.41% over the past year. Not to mention, the firm pays its shareholders a respectable 1.06% dividend.

Pernod holds a cash/price ratio of 28.30 and an earnings yield of 4.90%, both of which defeat industry averages of 13.41 and 4.01%, respectively. Furthermore, the company features current cash flow growth of 5.42%, in comparison with the industry average of 1.21%. Pernod Ricard currently sports a Zacks Rank #2 (Buy).

2. Heineken NV (HEINY - Free Report)

Heineken is engages in producing and distributing beer, cider, soft drinks, and various other beverages. Currently, Heineken rewards its shareholders with a 1.64% dividend. Also, the company holds strong Style Scores, including “B” grades for Growth and Momentum. Heineken features a RoE of 14.22% and projected sales growth of 15.68%, both of which beat the industry averages of 10.42% and 3.56%, respectively.

Furthermore, the firm holds a cash flow per share of $3.71, in comparison with the industry average of $1.34. In essence, now might be a good time to buy Heineken, which was recently promoted to a Zacks Rank #1 (Strong Buy).

3. The Boston Beer Company, Inc. (SAM - Free Report)

The Boston Beer Company, Inc. produces beer, malt beverages, and cider products at company owned breweries. Apart from selling alcoholic beverages in the United States, the company distributes its beverages in Canada, Europe, Israel, the Caribbean, the Pacific Rim, Mexico, and Central America through a strong network of wholesale distributors. The company’s continued focus on pricing, product innovation, and brand development has been able to boost its operational performance and position in the market.

The Boston Beer Company has been performing well, as it has defeated its earnings projections in each of its past three operational quarters by an impressive average of 67.44%. Further, the company features a net margin of 9.65% and price/sales of 2.08, both of which demolish the industry averages of 7.58% and 3.48, respectively. Finally, the Boston Beer Company possesses an EV/EBITDA of 9.28, which compares favorably to the industry average of 16.85. The company currently sports a Zacks Rank #2 (Buy).

4. Constellation Brands Inc. (STZ - Free Report)

Constellation Brands is a leading producer and marketer of beverage alcohol brands with a broad portfolio with operations in the United States, Canada, Mexico, New Zealand, and Italy. The company has continued to focus on business expansion with the acquisitions of High West Distillery, Charles Smith Wines, and The Prisoner Wine Company, all in fiscal 2017 alone. Not to mention, Constellation Brands continues to pay its shareholders a 1.06% dividend.

Constellation Brands has defeated its earnings projections in each of its past eleven operational quarters dating back to 2015 by an average of 9.37%, including an impressive beat last quarter of 18.18%. The company boasts a net margin of 19.94% and projected EPS growth of 20.61%, both of which beat the industry averages of 7.58% and 16.55%, respectively. Currently, Constellation Brands holds a Zacks Rank #2 (Buy).

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