S&P 500   4,455.48 (+0.15%)
DOW   34,798.00 (+0.10%)
QQQ   373.33 (+0.09%)
AAPL   146.92 (+0.06%)
MSFT   299.35 (-0.07%)
FB   352.96 (+2.02%)
GOOGL   2,844.30 (+0.71%)
TSLA   774.39 (+2.75%)
AMZN   3,425.52 (+0.28%)
NVDA   220.81 (-1.78%)
BABA   145.08 (-4.04%)
NIO   35.38 (-1.75%)
CGC   13.91 (-4.46%)
GE   103.80 (+0.82%)
MU   74.05 (+0.01%)
AMD   105.80 (-0.33%)
T   27.13 (-0.22%)
F   13.78 (+0.51%)
ACB   5.95 (-3.25%)
DIS   176.00 (-0.14%)
PFE   43.94 (-0.57%)
BA   221.39 (+0.13%)
AMC   40.01 (+0.08%)
S&P 500   4,455.48 (+0.15%)
DOW   34,798.00 (+0.10%)
QQQ   373.33 (+0.09%)
AAPL   146.92 (+0.06%)
MSFT   299.35 (-0.07%)
FB   352.96 (+2.02%)
GOOGL   2,844.30 (+0.71%)
TSLA   774.39 (+2.75%)
AMZN   3,425.52 (+0.28%)
NVDA   220.81 (-1.78%)
BABA   145.08 (-4.04%)
NIO   35.38 (-1.75%)
CGC   13.91 (-4.46%)
GE   103.80 (+0.82%)
MU   74.05 (+0.01%)
AMD   105.80 (-0.33%)
T   27.13 (-0.22%)
F   13.78 (+0.51%)
ACB   5.95 (-3.25%)
DIS   176.00 (-0.14%)
PFE   43.94 (-0.57%)
BA   221.39 (+0.13%)
AMC   40.01 (+0.08%)
S&P 500   4,455.48 (+0.15%)
DOW   34,798.00 (+0.10%)
QQQ   373.33 (+0.09%)
AAPL   146.92 (+0.06%)
MSFT   299.35 (-0.07%)
FB   352.96 (+2.02%)
GOOGL   2,844.30 (+0.71%)
TSLA   774.39 (+2.75%)
AMZN   3,425.52 (+0.28%)
NVDA   220.81 (-1.78%)
BABA   145.08 (-4.04%)
NIO   35.38 (-1.75%)
CGC   13.91 (-4.46%)
GE   103.80 (+0.82%)
MU   74.05 (+0.01%)
AMD   105.80 (-0.33%)
T   27.13 (-0.22%)
F   13.78 (+0.51%)
ACB   5.95 (-3.25%)
DIS   176.00 (-0.14%)
PFE   43.94 (-0.57%)
BA   221.39 (+0.13%)
AMC   40.01 (+0.08%)
S&P 500   4,455.48 (+0.15%)
DOW   34,798.00 (+0.10%)
QQQ   373.33 (+0.09%)
AAPL   146.92 (+0.06%)
MSFT   299.35 (-0.07%)
FB   352.96 (+2.02%)
GOOGL   2,844.30 (+0.71%)
TSLA   774.39 (+2.75%)
AMZN   3,425.52 (+0.28%)
NVDA   220.81 (-1.78%)
BABA   145.08 (-4.04%)
NIO   35.38 (-1.75%)
CGC   13.91 (-4.46%)
GE   103.80 (+0.82%)
MU   74.05 (+0.01%)
AMD   105.80 (-0.33%)
T   27.13 (-0.22%)
F   13.78 (+0.51%)
ACB   5.95 (-3.25%)
DIS   176.00 (-0.14%)
PFE   43.94 (-0.57%)
BA   221.39 (+0.13%)
AMC   40.01 (+0.08%)

The Boston Beer Company Is A Buy Before Earnings

Monday, July 12, 2021 | Thomas Hughes
The Boston Beer Company Is A Buy Before Earnings

The Boston Beer Moves Lower Despite Improving Analyst Sentiment

The analysts have been bullish on the beer industry and The Boston Beer Company (NYSE: SAM) all spring and they've been getting more bullish by the day. One sell-side firm after another from Guggenheim to Credit Suisse has called this company out as a Strong Buy, Best Idea, or a Top Pick and has steadily pushed the consensus price target higher. The latest comes from Morgan Stanley who sees this stock as well-positioned for the second half of the year. Analysts at the company see the company's growth driven by a re-acceleration in the hard seltzer category that has been pointed out by other analysts as well. Among the many drivers will be large social gatherings over the summer, the resumption of college activities in the fall, and a significant opportunity for on-premise expansion in food-away-from-home channels.

While Morgan Stanley expects the company to miss consensus for the second quarter they're more bullish on the second half of the year.  The company is maintaining its overweight rating and has assigned a price target of $1,450. This compares the broader consensus of $1,337 which implies about 37% of upside from recent price action but there is a caveat. Morgan Stanley's price target is a $50 reduction from the previous target and the first of what could become many price target reductions. Until then, the trends among the analysts are an increasingly bullish sentiment and a steadily rising consensus price target. The consensus is up 25% over the past 90 days and the current high price target is well above $1,500.

There Are High Expectations For Boston Beer Company

The analysts have been pushing up their expectations for revenue and earnings along with the consensus estimates for the stock price. The current consensus for revenue and earnings are  $665.25 Million and $6.55 which are both substantially higher from previous reporting periods. Revenue growth is expected to top +22% sequentially, +47% from last year and over +200% in the two-year Comparison which are not impossible to reach but, in our opinion, may have already priced in the company's growth.

There are certainly no few bears in the market, either. Short interest on the stock topped 10% at the last report and may have moved higher in the weeks since. The high short interest may continue to weigh on share prices in the near term but that is ultimately a good thing. The companies potentially weaker than expected earnings are already getting priced in, it is unlikely they will cause another deep sell-off unless they missed by a very wide margin. More importantly, if the results are good enough, it would spark short covering and that would help reverse share prices.

The Boston Beer Company Is A Compelling Value

The Boston Beer Company doesn't pay a dividend right now but that's all right because it offers a compelling value for growth portfolios. The stock may seem overvalued trading at 40 times this year's earnings but the company is expected to produce high double-digit earnings growth over the next 5 to 8 years which makes it a deep value compared to future earnings. Looking forward, the company is trading at only 16X the 2025 earnings consensus and the value will likely be deeper compared to actual results. 

The Technical Outlook: Boston Beer Company At A Bottom

Shares of The Boston Beer Company have been pulling back for the last few months but maybe at a bottom now. Price action has been bouncing off of a key support level and the indicators are in favor of support at this level so we are optimistic. The question now is how will the market react to earnings and we think it will be favorable. From what we've seen, food away from home activity has been robust and that should help drive solid results for this company. Assuming support is confirmed at the $925 level we see this stock moving up and above the short-term moving average very shortly and then extending the gains To $1,300 by the end of the summer. 

The Boston Beer Company Is A Buy Before Earnings

Should you invest $1,000 in The Boston Beer right now?

Before you consider The Boston Beer, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and The Boston Beer wasn't on the list.

While The Boston Beer currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

 


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
The Boston Beer (SAM)2.9$514.59-2.1%N/A26.86Hold$814.57
Compare These Stocks  Add These Stocks to My Watchlist 

Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.