Home Entrepreneur Top beverage stocks to watch after earnings overtake Coca-Cola

Top beverage stocks to watch after earnings overtake Coca-Cola


April 21, 2021

6 minutes of reading

This story originally appeared on Stock market

Are these the best beverage stocks to buy right now?

While the sell-off of technology stocks has dominated stock market title, beverage warehouse Surprise investors with their new needs in the first quarter. For example, Coca-Cola Co. (NYSE: KO) has been off to an impressive week after the release of its latest quarterly results set. The beverage giant has seen net sales grow 5% year-on-year to $ 9 billion. This happened as the company saw sales recover as the COVID-19 launch expanded, and the company said March demand had reached pre-pandemic levels.

Most of the beverage industry was hit in the early days of the pandemic when diners were closed and social gatherings were banned. However, demand slowly rose again in anticipation of a strong economic recovery. It is not a bad idea to come up with a list Top beverage stocks to buy. After all, these are the products that people continue to buy regardless of the state of the broader economy.

As we observe news on Coca-Cola’s sales leanings, many investors are starting to pay attention to other top beverage stocks that could see a similar rebound in the fall. enter this. With all that said, you have these drinks on your watchlist in stock market today?

Top beverage stocks to watch right now

Boston beer

First, shares of Boston Beer have declined since the start of the pandemic. While sales plunged when accommodation measures were in place, the company continued to defy gravity. That’s in part thanks to growing demand from retailers for products like Truly hard seltzer and Twisted Tea. Without a doubt, investors are hoping to see more growth in these brands when the company reports earnings results on April 22nd. Quarter 4, 2020. Net sales increased 53% year-on-year to $ 460.9 million. Meanwhile, earnings per share was $ 2.64, up 135.7% from a year ago.

Source: TD Ameritrade TOS

The stock SAM is one of the real bulls in the beverage industry. The company’s share price has soared more than 200% in the past year, while the S&P 500 has risen almost 50% during the same period. Of course, with a strong bounce over the past year, the upside potential may be limited. Don’t forget, however, the Boston Beer’s steady performance in innovation and profits in recent years. With a bullish outlook on the fast-growing hard seltzer market, would you bet on SAM stock ahead of this week’s earnings report?

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Pepsi & Co

The iconic arch enemy of Coca-Cola Co., PepsiCo. also got started right in 2021. The company boasts a world-class portfolio that includes brands like Frito-Lay, Pepsi-Cola, Gatorade and Quaker. During the past month, PEP shares rose more than 10% and closed Tuesday’s session at $ 145.71 per share. Last week, the company assured most investors it could continue to expand sales. From the first quarter report, sales were up 6.8% year-on-year to reach $ 14.8 million. Meanwhile, operating profit soared to $ 2.3 billion from $ 1.9 billion a year ago. This solid figure matches management’s 5% revenue growth outlook this year.

Top beverage stocks to watch (PEP shares)
Source: TD Ameritrade TOS

On the surface, PepsiCo appears to be a risky investment as soda consumption rates have declined for decades in developed markets. Of course, the company is also not resting on its laurels and has diversified beyond soft drinks with relatively healthier options. With Americans stuck at home, fast food like Frito-Lay has seen sales soar. And it’s not just Frito-Lay that’s seeing the boom. The company’s other products are also showing strong growth. Assuming consumers keep switching to snacking for comfort during this pandemic, would you be betting on PEP stock right now?

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Monster beverage

Monster Beverage Corp is a multinational energy drink brand with a global presence. Investors love MNST shares because the company has a debt-free balance sheet. According to data from research firm T4, Monster has a 39% market share in energy drinks by 2020, with NOS (also owned by Monster) taking up an additional 3% market share. So it may not be surprising to learn that MNST shares have been a pockets of the past decade. In fact, its historic performance may even shame some of the biggest tech stocks. The company’s success in the energy drink market has also attracted investments from Coca-Cola.

Best beverage stocks (MNST shares)
Source: TD Ameritrade TOS

In February, Monster Beverage reported its financial results for the fourth quarter of 2020. In which, the company saw revenue increase 17.6% year-on-year to $ 1.20 billion. Furthermore, net income reached $ 471.7 million, an increase of 85% from a year ago. Monster may be considering expanding internationally and launching hard seltzer. These can help generate additional profits for the company. Furthermore, they can become a new growth engine considering the company’s strong history. Admittedly, many people might think that valuing stocks is expensive. However, with these interesting developments, do you think that MNST stock can continue its uptrend?

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Brand constellation

Last but not least, Constellation Brands is a leading manufacturer and marketer of alcoholic beverages in the world. Over the past year, STZ shares have risen more than 50% and are trading at $ 238.31 at Tuesday’s close. Unlike other beverage stocks on this list, the company had better than expected quarterly results earlier this month. Despite weak demand at bars and restaurants, the alcoholic beverage giant has posted solid growth in its beer portfolio. In the 3 months ending February 28, 2021, net sales increased 3% year-on-year to $ 1.95 billion.

Best drink stocks to buy right now (STZ stocks)
Source: TD Ameritrade TOS

Company management is optimistic about growth for the fiscal year ending February 28, 2022. In particular, Constellation Brands expects net sales in this segment to grow from 7% to 9%. It is worth mentioning that the company has developed plans to invest in additional capacity in Mexico. This will provide the long-term flexibility needed to support future growth in the core, premium Mexican beer portfolio. In addition, management also predicts strong operating cash flows of $ 2.4 billion and $ 2.6 billion in fiscal year 2022. Considering the company’s financial strength, you get more STZ stock. on my watchlist?

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