Earnings estimates are moving up for this alcohol beverage company and according to Zacks, the company’s new earnings growth rate is for the current year is 19.5%, compared to the Beverages - Alcohol industry’s anticipated decline of 1.8%.
The Boston Beer Company, Inc. (SAM)
From Weiss Stock Ratings Heat Maps
Volatility has been rising. Capital has been fleeing riskier investments and seeking safer havens. The Dow Industrials are swinging hundreds of points up and down based off 100-word tweets, trade and tariff rumors and troubling economic data.
And as poet Yeats said in “The Second Coming”, it all smacks of a market where the “centre cannot hold” and where “mere anarchy” could be loosed upon unprepared investors. And I think it behooves investors to continue to be more cautious and defensive when it comes to stock selection.
On our Best Hot-Sector Leaders Heat Map, it is precisely those defensive sectors and stocks that are leading in this market.
All the top ten stocks on that Map hailed from more conservative sectors as of earlier this week, including the consumer staples, utilities and real estate industries.
At the top was The Boston Beer Company, Inc. (SAM, Rated “B”), purveyor of Sam Adams beer and other alcoholic beverages, like the popular Truly hard seltzer brand of drinks. The Boston Beer Company, Inc. produces and sells alcohol beverages primarily in the United States. The company’s flagship beer is Samuel Adams Boston Lager. It offers various beers, hard ciders, and hard seltzers under the Samuel Adams, Twisted Tea, Angry Orchard Hard Cider, and Truly Hard Seltzer brand names.
It was recently showing 35%-plus gains over the past 12 months. We’ll undoubtedly see pullbacks and corrections for safety-oriented sectors from time to time. But over the longer term, they still offer the best potential from where I sit. So, continue to stick with them for the rest of 2018 and beyond.
Mike Larson, Weiss Stock Ratings Heat Maps, issues@e.weissratings.com; phone: 1-877-934-7778, September 6, 2019