On Dec 23, 2014, Zacks Investment Research upgraded Boston Beer Co. Inc. (SAM), the largest craft brewer in the United States, to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Boston Beer has been gaining traction on the back of its robust brand portfolio, continuous strategic initiatives, growth endeavors and strong quarterly performances.
Apart from selling alcoholic beverages in the United States, Boston Beer distributes its beverages in Canada, Europe, Israel, the Caribbean, the Pacific Rim, Mexico, and Central and South America through a formidable network of wholesale distributors, highlighting its solid international presence.
Further, the company, which competes with Constellation Brands Inc. (STZ), is always seeking strategic opportunities to expand its business through organic growth. Since its inception, the company has made significant investments toward acquiring brewing assets, enhancing research & development as well as packaging and marketing of products. We believe that its growth strategies will certainly help it capture considerable market share from its rivals.
Moreover, we appreciate Boston Beer’s efforts to enhance wholesale distribution points and execute its strategic merchandising initiatives to boost sales.
These strong fundamentals have been enabling the company to deliver robust quarterly performances as evident from the fact that the company has delivered positive earnings surprises in the past two consecutive quarters. Also, robust revenue growth, an optimistic fiscal 2015 outlook and solid cash flows have been driving the company forward.
We believe that these factors triggered an uptrend in the Zacks Consensus Estimate, as analysts became more constructive on the stock’s future performance. This is evident from the movement witnessed in the Zacks Consensus Estimate that climbed 1.2% to $6.65 and 1.5% to $7.93 for 2014 and 2015, respectively, over the past 60 days.
Other Stocks to Consider
Other well-ranked retail stocks that look promising and are expected to continue with their upbeat performance include PetSmart, Inc. (PETM) and Pacific Sunwear of California Inc. (PSUN), each sporting a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment