#4 - Anheuser Busch InBev (NYSE:BUD)
The social restrictions being required to combat the coronavirus may seem like a difficult thesis for buying Anheuser Busch InBev (BUD) stock. Bars are closed. Restaurants are closed. Live sporting events are canceled. All of that, plus cancellation of other major events is causing a large decline in demand.
And the stock has been appropriately punished. As of this writing, BUD stock was down nearly 50% for the year. But in the last two weeks, the stock has surged about 20%. And there’s a reason for that as well. It’s unlikely that Americans are going to stop drinking alcohol. A quick stroll through my social media confirms that many consumers are prioritizing their alcohol purchases with about as much frequency as their shipments of toilet paper. However, beer may be in greater supply.
Now there’s no question that, try as they may, consumers are not going to be able to be the little engine that could. But buying BUD stock is not about the rest of 2020. It’s about 2021 and beyond. Because when our national sequestering ends, it will be like the end of prohibition. And at that point, it will be impossible to get shares of this quality company for anywhere near this price. In the meantime, you can enjoy a nice dividend.
About Anheuser-Busch InBev SA/NV
Anheuser-Busch InBev SA/NV produces, distributes, exports, markets, and sells beer and beverages. It offers a portfolio of approximately 500 beer brands, which primarily include Budweiser, Corona, and Stella Artois; Beck's, Hoegaarden, Leffe, and Michelob Ultra; and Aguila, Antarctica, Bud Light, Brahma, Cass, Castle, Castle Lite, Cristal, Harbin, Jupiler, Modelo Especial, Quilmes, Victoria, Sedrin, and Skol brands.
Read More - Current Price
- $63.07
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 6 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $71.70 (13.7% Upside)
