Bear Of The Day: Anheuser-Busch InBev (BUD)

Earnings estimate revisions are a fickle beast. Stocks which were flying high last month could be down in the dumps after a bearish downside revision. But paying attention to these revisions before they show up in the price could help investors avoid potential downfalls. Today’s Bear of the Day is a stock that has been flying high but has seen estimates come down. I’m talking about Zacks Rank #5 (Strong Sell) Anheuser-Busch InBev (BUD).

Anheuser-Busch InBev SA/NV, a brewing company, engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks worldwide. It offers a portfolio of approximately 500 beer brands, including Budweiser, Corona, and Stella Artois; Beck's, Castle, Castle Lite, Hoegaarden, and Leffe; and Aguila, Antarctica, Bud Light, Brahma, Cass, Chernigivske, Cristal, Harbin, Jupiler, Klinskoye, Michelob Ultra, Modelo Especial, Quilmes, Victoria, Sedrin, Sibirskaya Korona, and Skol.

The reason for the unfavorable Zacks Rank is the series of negative earnings estimate revisions coming from analysts. Over the last thirty days, two analysts have cut their estimates for the current year while one analyst has cut its estimates for next year. The bearish sentiment has dropped our current year Zacks Consensus Estimate from $4.88 to $4.80 while next year’s number has come down from $5.48 to $5.36. Next year’s number still represents earnings growth of 11.56% year-over-year.

Investors looking for other stocks within the Beverages – Alcohol industry should check out Zacks Rank #1 (Strong Buy) Compania Cervecerias Unidas (CCU) and several Zacks Rank #2 (Buy) stocks including Diageo (LON:DGE) (DEO).

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