Beer company Ambev (ABEV) reported impressive third-quarter results, and its stock has advanced over the past month. However, the company is expected to suffer from rising input costs. So, let’s evaluate if it is wise to add the stock to one’s portfolio now. Read on.Based in Sao Paulo, Brazil, Ambev S.A. (ABEV) recently reported impressive third-quarter earnings results, with an 18.5% year-over-year increase in net revenues to R$18.49 billion ($3.35 billion). Its adjusted profit was R$3.75 billion ($679.90 million), representing a 50.4% year-over-year increase as the reopening of bars and restaurants drove sales higher.
Over the past month, the stock has gained 16.8% in price to close yesterday’s trading session at $3.20.
However, the stock has declined by 0.3% in price over the past three months and is currently trading 19% below its 52-week high of $3.95, which it hit on June 8, 2021. The company also failed to offer guidance for the fourth quarter. Analysts at Bank of America (NYSE:BAC) have warned investors about some relevant headwinds projected for 2022. So, ABEV’s near-term prospects look uncertain.