Best Beer Stocks Right Now

The popularity of beer is unsurpassed and companies that produce and distribute beer are on a market upswing — many beer stocks outperform earnings estimates. 

Ready to tap into the market? Here’s a guide to investing in beer stocks to help you take advantage of their performance, especially given the expansive nature of many of these companies.

The Best Beer Stocks

• Anheuser-Busch InBev
• Molson Coors Beverage
• Boston Beer Company
• Heineken

Overview: Beer Stocks

Historic records of beer brewed from barley dates back to 6000 BCE. Beer was made in small quantities until the Industrial Revolution made it easier to harvest and ferment barley, wheat and hops in bulk. 

The Boston Beer Company (SAM) is 1 of the oldest beer breweries in the U.S. and went public in 1995. It was among the earliest small breweries to attract new investors to this niche market.  

Up until 2012, big breweries such as Anheuser-Busch InBev (NYSE: BUD) and Molson Coors Beverage Company (NYSE: TAP) produced 90% of the beer in the U.S. After home brewing became legal in all 50 states, 2,058 microbreweries popped up in 2019 alone. 

The Brewer’s Association (BA) was set up in 2005 to promote and protect small and independent brewers. BA contains over 7,500 registered beer breweries, distributors and retailers. It also hosts the Great American Beer Festival every year to recognize the best new beverages entering the beer market. While your local microbrewery with a restaurant and extensive regional sales might not go public tomorrow, you never know when businesses will expand or be acquired by larger entities.

For example, local breweries might be acquired by public companies, making those stocks far more interesting to you in the long run. At the same time, you may want to consider investing in startups or small businesses as a way to diversify, along with these beer stocks.

Spirits with higher alcohol content like whiskey and wine have been giving beer companies a run for their money. The legalization of cannabis in the U.S. also comes into play. But despite competition, the beer market continues to grow because of its ties to party culture, sports leagues, etc. Moreover, many of the largest beer companies in America produce affordable products that will remain popular simply because of pricing.

Best Online Brokers for Beer Stock

You can browse through thousands of stocks within minutes using an online broker. These platforms let you trade with confidence and precision. Remember, however, that you must choose an online brokerage that suits your needs and fits into your budget—some are more expensive than others, offer more information, more technical data, etc.

Online brokers feature advanced tools to help you trade. For example, you can set customizable filters such as price range to instantly find the best stocks under $10 or stocks under $5. Value stocks can populate a portion of your portfolio, but you also want more “defensive” stocks that will provide the stockholder with dividends, perform well in a bull market and hold their stock price relatively well.

Take a look at these recommended online brokers to get started. When you choose the right broker for your situation, you’ll be much more comfortable with your investments and managing your portfolio.

Features to Look for in Beer Stock

• Earnings per share: The EPS of a company can help you determine its profitability. It’s calculated by dividing the net income of a company by its total number of outstanding shares. Investing in companies with a consistent history of beating EPS estimates can be a good strategy. For example, a growth stock has room to grow, and you can see that in the EPS.
• P/E ratio: You can assess whether a stock is undervalued or overpriced by its price-to-earnings (P/E) ratio. The lower the P/E ratio, the better its performance compared to its competitors. This is a good way to judge an income stock, and you can compare this ratio to the market capitalization to get a good idea of how the asset is performing. 
• Yearly revenue: This is the total revenue generated by beer stocks, which can give you a fair measure of its performance in the market. Compare the revenue from previous years to get a better scale of a company’s growth and invest accordingly.  

Tap into Beer Stocks

Many companies that brew beer also produce other alcoholic and non-alcoholic beverages, so beer stocks could bring you broader exposure to the food and beverage industry. 

You may want to invest in these stocks to protect your portfolio during financial slumps, or you may buy into these companies because you see them growing and expanding quickly. Take the case of the Campari Group (DVDCF), a firm that has been around since the 1800s, and while Campari liqueur has been popular for some time, the firm has become one of the most profitable and popular in the world with its recent marketing push involving the Aperol aperitif.

Moreover, the same firm owns Grand Marnier, Wild Turkey Bouron and Skyy Vodka. Dividend payments could remain robust, but remember that any brand could falter given the right conditions. This is why you want to look at companies with noticeable capital appreciation, and measure stock performance often so that you’re not surprised when prices change.

Start with these recommended stocks to tap into the market today.

Frequently Asked Questions