Ambev (NYSE:ABEV) Stock

Ambev

Ambev is the largest brewer in Latin America and the Caribbean and is Anheuser-Busch InBev's subsidiary in the region. It produces, distributes, and sells beer and PepsiCo products in Brazil and other Latin American countries and owns Argentina's largest brewer, Quinsa. Ambev was formed in 1999 through the merger of Brazil's two largest beverage companies, Brahma and Antarctica. In 2004, Ambev combined with Canadian brewer Labatt, giving Interbrew (now AB InBev) a controlling interest of 61.8% as at the end of 2023.

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Under the Radar: Strategic Financial Screening Reveals International Opportunity

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Ambev&#39;s Q3 earnings matched estimates but missed sales expectations, leading to a drop in shares amid stalled volume growth.

Ambev Q3 Sales Miss Expectations As Volume Growth Stalls; Shares Dip

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Ambev (NYSE:ABEV) is showing potential for a Golden Cross, indicating a positive trend. With strong market dominance and growth potential, ABEV&#39;s stock is poised for a rebound. Its fundamentals and attractive valuation make it a solid long-term investment.

Is A Golden Cross Brewing For Ambev? Technical Charts Show Bullish Potential

Ambev S.A. American Depositary Shares (Each representing 1 Common Share)

Ambev SA

Several academic studies have recently examined buying undervalued stocks using tools like the Piotroski F-Score, Joel Greenblatt&#8217;s Magic Formula, and profitability factors. I have written about these studies in this column and in my weekly e-letter.
Rather than bore you with all the detailed and academic citations; I can summarize the results very quickly for you. Buying stocks that trade at low multiples of asset value and cash flows outperforms the market indexes. This approach can be very volatile. Most of the return comes from less than half of the number of stocks. There is a high failure rate for the companies that pass the initial value screens. Adding financial and quality filters to the list of cheap stocks based on earnings and asset multiples dramatically increases the return and margin of safety in value strategies.
Today, I decided to look at stocks that passed all the filters. I screened for companies that passed the Magic Formula Filters of high earning yields and high returns of capital. Then, I filtered out those with low profitability levels and Piotroski F-scores.
This produced a list of profitable companies with strong finances that are currently undervalued. I immediately noticed that the best bargains were outside the United States. This is unsurprising, given the huge performance gap over the past several years.
While running the numbers, I made a surprise discovery.
&nbsp;Buying high-quality, undervalued U.S. companies has beaten the markets even during the past five tech-dominated years.
&nbsp;Companies outside the U.S. (excluding China) have done even better.
&nbsp;Given that there are far more bargain opportunities outside the United States than inside, there is a good chance that this outperformance will continue.
Ambev SA (Ticker: ABEV) is a Brazilian brewer and distributor of popular beers like Budweiser, Corona, Stella, and others in Brazil, the Caribbean, and Central America. It also sells Pepsi (Ticker: PEP) products in the same markets.
The stock has been volatile due to turmoil in the Brazilian economy and currency fluctuations over the last year. After declining steadily over the past few years, the stock is now trading at low multiples of the business&#8217;s cash flow. T
he business generates high operating profits, and the financial statements show a healthy company with the potential for continued improvements.
The parent company, Anheuser-Busch InBev SA, owns more than 60% of the company, so there is little question about Ambev SA&#8217;s staying power.
América Móvil, S.A.B. de C.V. (Ticker: AMX) is a leading telecommunications company based in Mexico. It offers a wide range of services, including wireless voice, wireless data, and value-added services, across multiple countries.
&nbsp;After a headline-driven rough year, this company is now a compelling opportunity that no one on Wall Street is even thinking about right now. The company has demonstrated resilience in its financial performance, with service revenue growing quickly despite currency fluctuations. Its continued expansion in Latin America and Europe and rising postpaid subscriber growth enhance long-term revenue visibility.
&nbsp;Additionally, América Móvil benefits from its dominant market share in Mexico and other key regions, allowing it to generate stable cash flows.
The balance sheet is strong, and the majority owner, Mexican billionaire Carlos Slim, has deep pockets. At the current single-digit multiple of the business&#8217;s cash production.
&nbsp;América Móvil is an excellent buy for patient, aggressive investors.
Vista Energy (Ticker: VIST), the Mexican oil and gas company, is another compelling opportunity. Vista is an independent oil and gas company headquartered in Mexico City, Mexico. Established in 2017, the company focuses on the exploration and production of oil and gas, with primary operations in Argentina and Mexico.
&nbsp;Vista&#8217;s principal assets are in the Vaca Muerta formation within Argentina&#8217;s Neuquina basin. These assets make the stock a screaming buy for value-oriented investors willing to look outside the United States.
According to the few Wall Street analysts who follow the stock, it is a strong buy due to its exceptional growth potential, efficient operations, and strategic positioning in Argentina&#8217;s Vaca Muerta shale play, one of the most promising unconventional oil and gas basins outside North America.
Citigroup was just out last week with an updated buy ranking and price target that is well above the current price.
The company is profitable, in solid financial condition, and trades at bargain basement prices.
Latin America is way off Wall Street and the financial media&#8217;s radar screens. The instant experts of the internet have not yet surrendered their status as fiscal policy experts and nuclear engineers, and they are unlikely to discover that Latin countries have actual stock exchanges and economies involving more than all-inclusive resorts. These companies pass all the quality and financial strength filters and are undervalued. Owning a portfolio of overlooked international companies that pass all the filters has been a winning strategy, and I expect that to continue.

Barclays analyst Benjamin Theurer maintains Ambev (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABEV#NYSE">ABEV</a>) with a Equal-Weight and lowers the price target from $2.5 to $2.

Price Target

Analyst Ratings

Barclays Maintains Equal-Weight on Ambev, Lowers Price Target to $2

WIIM

AZUL

BBDO

BSBR

Embraer-Empresa Brasileira De Aeronautica

ITUB

Companhia De Saneamento Basico Do Estado De Sao

VALE

Shares of Brazilian companies are trading lower. A new government fiscal spending package and last week's central bank rate hike could be eroding global investor confidence and raising concerns over the nation's deficit.

MELI

Shares of Brazilian stocks are trading lower amid a rise in borrowing costs and a depreciation of the Brazilian Real.

Ambev (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABEV#NYSE">ABEV</a>) shares<a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener"> are trading lower on Thursday.</a>
The company <a target="_blank" href="https://api.mziq.com/mzfilemanager/v2/d/c8182463-4b7e-408c-9d0f-42797662435e/9d220ab4-acad-1bc2-6ca3-30487b33d05a?origin=1" rel="noreferrer noopener">reported </a>third quarter earnings per share of 4 cents, in line with the street view. Quarterly sales of $3.983 billion missed the analyst consensus estimate of $4.082 billion.
Consolidated volumes declined by 0.6%, but when excluding Argentina, there was a growth of 1.3%.
In Brazil, volumes increased by 1.3%, with beer sales growing by 0.6% and non-alcoholic beverages (NAB) rising by 3.4%. In Brazil&#8217;s beer segment, premium and super premium brands saw volume growth in the low twenties, driven by Corona, Spaten, and Original. Core plus brands grew by low teens, with the Budweiser family leading the way, while core brands Brahma and Antarctica each recorded high single-digit increases in volume.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/10/41658099/cheez-it-parent-kellanovas-q3-earnings-organic-sales-climb-mars-buyout-vote-nears-more" rel="noreferrer noopener">Cheez It Parent Kellanova&#8217;s Q3 Earnings: Organic Sales Climb, Mars Buyout Vote Nears &amp; More</a>
In Central America and the Caribbean (CAC), volumes decreased by 0.5%, although the Dominican Republic saw a midsingle-digit increase. Additionally, soft industry conditions in Argentina and Canada contributed to volume declines of 7.7% in Latin America South (LAS) and 1.4% in Canada.
In the quarter under review, the company&#8217;s cash cost of goods sold (COGS) increased in low-single digits, primarily due to inflation and diminished benefits from commodity price hedges, while cash selling, general, and administrative expenses (SG&amp;A) rose in mid-single digits because of increased investments in brand support and higher administrative costs linked to elevated variable compensation accruals.
&#8220;Looking ahead, we remain focused on executing our commercial strategy and are confident in our preparedness for the Summer season in South America, with healthier brands and sustained all-time-high NPS levels,&#8221; Ambev said.
Price Action: ABEV shares are trading lower by 3.08% to $2.20 at last check Thursday.
Photo: Engin Akyurt from Pixabay
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Ambev (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABEV#NYSE">ABEV</a>) reported quarterly earnings of $0.04 per share which met the analyst consensus estimate. The company reported quarterly sales of $3.983 billion which missed the analyst consensus estimate of $4.082 billion by 2.43 percent. This is a 4.30 percent decrease over sales of $4.162 billion the same period last year.

Earnings Misses

Ambev Q3 2024 GAAP EPS $0.04, Inline, Sales $3.983B Miss $4.082B Estimate

Ambev SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABEV#NYSE">ABEV</a>) is inching <a href="https://www.benzinga.com/topic/golden-cross">towards a golden cross</a>—a technical signal that could suggest brighter days ahead for the stock.
As one of the largest beverage giants, Ambev has been a key player in Latin America&#8217;s beer market, dominating countries like Brazil, Argentina, and the Dominican Republic. 
But, after a challenging year with stock price declines and currency woes, could this golden cross be the turning point?
<h2 class="wp-block-heading">Ambev's Brewing Success In Latin America</h2>
Ambev isn't just any beer company. With control over <a href="https://www.moneymag.com.au/why-you-should-buy-ambev-shares-october-2024">66%</a> of Brazil&#8217;s beer market, a near-monopoly in the Dominican Republic, and substantial stakes in Argentina and Canada, this giant knows how to dominate. The company, a key part of AB InBev, has a knack for using its scale to drive profits, with a strategic focus on premium brands. 
This shift towards premium beers, coupled with steady price increases, helped Ambev weather market turbulence.
After a slowdown in 2023, Ambev is rebounding in 2024. Growth picked up in the second quarter, and with stabilizing commodity prices, the company is poised to improve margins by 2027. With an expected expansion of operating margins and continued pricing power, Ambev is looking to shake off the recent slump.
Read Also: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/10/41512422/top-3-tech-stocks-youll-regret-missing-in-q4">Top 3 Tech Stocks You&#8217;ll Regret Missing In Q4</a>
<h2 class="wp-block-heading">Golden Cross On Tap: Is ABEV Ready To Shine?</h2>
For technical traders, a golden cross is a big deal—it happens when the 50-day moving average crosses above the 200-day moving average, signaling potential bullish momentum. Ambev's stock is close to making this move, and while its recent price action has been bearish, this could shift the tide.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/pro/?utm_source=BZprocontent102424&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="628" height="455" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/24072132/Screenshot-2024-10-24-at-4.01.59-PM.png" alt="" class="wp-image-611723" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/24072132/Screenshot-2024-10-24-at-4.01.59-PM.png 628w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/24072132/Screenshot-2024-10-24-at-4.01.59-PM-300x217.png 300w" sizes="(max-width: 628px) 100vw, 628px" /></a></figure>
<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent102424&amp;t=be2bearmibe3na1">Chart created using Benzinga Pro</a>
Currently trading at $2.25, ABEV stock is still below key moving averages, signaling a bearish signal for cautious traders. ABEV stock's eight-day simple moving average stands at $2.29, while the 50-day SMA is $2.35. 
However, with a Relative Strength Index (RSI) of 38.41 and declining, Ambev stock could soon be oversold. This is when we could see some buying pressure starting to emerge. The negative 0.02 of the Moving Average Convergence/Divergence (MACD) indicator also suggests it's time to take a closer look.
<h2 class="wp-block-heading">Why Ambev&#8217;s Valuation Matters Now</h2>
Despite the technical picture, Ambev's fundamentals remain strong. Trading at a discount to historical averages, the stock offers upside potential for both price appreciation and income, with a <a href="https://www.benzinga.com/quote/ABEV/dividends">dividend yield of 6.71%</a>. The company's ability to generate strong cash flows and impressive balance sheet, including a net cash position of 10.7 billion reals (approx. $1.88 billion), make it an attractive option for long-term investors.
With third-quarter earnings approaching, now could be the time to watch Ambev stock closely. A positive earnings surprise might be the catalyst to push the stock through the golden cross threshold and into bullish territory.
Ambev's golden cross is almost here, and for savvy traders, this could mark a buying opportunity. 
While the stock has been down in 2024, its dominance in Latin America, coupled with a strong balance sheet and recovering margins, positions it well for a turnaround.
Read Next: 
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Photo: Shutterstock

Ambev SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABEV#NYSE">ABEV</a>) shares are trading higher by 0.97% to $2.08 Thursday morning after the company reported better-than-expected second-quarter <a href="https://www.benzinga.com/quote/ABEV/earnings">sales results</a>.
<h2 class="wp-block-heading">What Happened?</h2>
Ambev reported quarterly earnings of&nbsp;3 cents&nbsp;per share which met the analyst consensus estimate. The company reported quarterly sales of&nbsp;$3.847 billion&nbsp;which beat the analyst consensus estimate of&nbsp;$3.609 billion&nbsp;by&nbsp;6.6%. This figure represents a&nbsp;0.76%&nbsp;increase over sales of&nbsp;$3.818 billion&nbsp;in the same period last year.
Ambev&#8217;s CEO, Jean Jereissati, highlighted double-digit growth in Normalized EBITDA and margin expansion driven by commercial momentum and operational leverage. Total volumes showed a slight increase of 0.4% year-over-year (YoY), with net revenue rising by 4.8% YoY.
Read Also: <a href="https://www.benzinga.com/news/24/08/40101256/why-ocugen-ocgn-stock-is-falling">Why Ocugen (OCGN) Stock Is Falling</a>
The growth was primarily led by Brazil, which saw a 4.1% increase in volumes, including a 7.7% rise in non-alcoholic beverages (NAB) and a 2.9% increase in beer. Central America and the Caribbean (CAC) also experienced a 3.4% volume increase. However, volumes declined in Latin America South (LAS) by 13.7% and in Canada by 6.9%.
Net revenue per hectoliter (NR/hl) grew by 4.5%, contributing to overall net revenue increases in most business units: Brazil NAB rose by 15.0%, CAC by 8.4%, Brazil Beer by 6.9% and LAS by 0.5%, while Canada saw a 5.7% decline due to volume decreases. 
Normalized EBITDA meanwhile increased by 15.9% YoY, driven by strong performance in Brazil (23.5% growth), CAC (17.9%), and LAS (7.6%), despite a 2.2% decline in Canada. Gross margin expanded by 200 basis points (bps), and Normalized EBITDA margin grew by 300 bps.
Read Also: <a href="https://www.benzinga.com/news/earnings/24/08/40101240/meta-platforms-stock-is-rallying-thursday-whats-going-on">Meta Platforms Stock Is Rallying Thursday: What&#8217;s Going On?</a>
<h2 class="wp-block-heading">How To Buy ABEV Stock</h2>
By now you're likely curious about how to participate in the market for Ambev &#8211; be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of <a href="https://www.benzinga.com/money/best-stock-trading-platforms">possible trading platforms here.</a> Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stocks, like Berkshire Hathaway can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.
In the the case of Ambev, which is trading at $2.06 as of publishing time, $100 would buy you 48.54 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a <a href="https://www.benzinga.com/money/how-to-short-a-stock">stock can be found at this resource.</a> Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading &#8211; either way it allows you to profit off of the share price decline.
According to data from&nbsp;<a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>, ABEV has a 52-week high of $3.13 and a 52-week low of $2.01.

Why Ambev (ABEV) Stock Is Rising Following Q2 Earnings

Ambev (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABEV#NYSE">ABEV</a>) reported quarterly earnings of $0.03 per share which met the analyst consensus estimate. The company reported quarterly sales of $3.847 billion which beat the analyst consensus estimate of $3.609 billion by 6.59 percent. This is a 0.76 percent increase over sales of $3.818 billion the same period last year.

Earnings Beats

Ambev Q2 2024 Adj. EPS $0.03, Inline, Sales $3.847B Beat $3.609B Estimate

UBS maintains Ambev (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABEV#NYSE">ABEV</a>) with a Buy and lowers the price target from $3.2 to $2.9.

UBS Maintains Buy on Ambev, Lowers Price Target to $2.9

Beer shares, including Anheuser-Busch Inbev SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUD#NYSE">BUD</a>), Ambev S.A. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABEV#NYSE">ABEV</a>) and Molson Coors Beverage Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAP#NYSE">TAP</a>), are trading lower Monday following a weak earnings report from Heineken Holding N.V. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HKHHF#OTC">HKHHF</a>)
What Happened: Heineken its half-year results, showing revenue of €17.82 billion ($19.29 billion) and operating profit of €1.54 billion. Despite achieving organic growth in beer volume and Heineken volume, Heineken&#8217;s net profit was impacted by non-cash impairments, leading to a net loss of €48 million. The outlook for the full year has been updated, with operating profit expected to grow organically by 4% to 8%.
Upcoming Earnings:
<ul>
<li>Anheuser-Busch Inbev is set to report second-quarter earnings on August 1st before market open, with an estimated EPS of 87 cents and estimated revenue of $15.56 billion.</li>
<li>Ambev S.A. will also report second-quarter earnings on August 1st before market open, with an estimated EPS of 3 cents and estimated revenue of $3.71 billion.</li>
<li>Molson Coors Beverage Company is scheduled to report second-quarter earnings on August 6th before market open, with an estimated EPS of $1.68 and estimated revenue of $3.18 billion.</li>
</ul>
Why It Matters: The weak performance of Heineken has had a ripple effect across the beer industry. With upcoming earnings reports from other major beer companies, the market is cautious about the potential for similar disappointing results. 
Price Action:
<ul>
<li>Anheuser-Busch Inbev shares are down 2.31% at $59.96.</li>
<li>Ambev S.A. shares are flat at $2.11.</li>
<li>Molson Coors Beverage Company shares are down 2.10% at $53.19.</li>
</ul>
Photo: Engin Akyurt from Pixabay.

HKHHF

Beer Companies Shares Are trading Lower Today: What You Need To Know

Shares of beer companies are trading lower following weak earnings from Heineken.

Shares of US-listed Brazilian stocks are trading lower following Brazil's Central Bank decision.

Barclays analyst Benjamin Theurer maintains Ambev (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABEV#NYSE">ABEV</a>) with a Equal-Weight and lowers the price target from $3 to $2.5.

Barclays Maintains Equal-Weight on Ambev, Lowers Price Target to $2.5

Brazilian brewing company&nbsp;Ambev SA&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABEV#NYSE">ABEV</a>)&nbsp;<a target="_blank" href="https://api.mziq.com/mzfilemanager/v2/d/c8182463-4b7e-408c-9d0f-42797662435e/0bdf4318-e6ab-cb8e-c44e-3aee4060421a?origin=1" rel="noreferrer noopener">reported&nbsp;</a>first-quarter&nbsp;FY24 net revenue decline of 1.2% to R$20.3 billion. On an organic basis, net revenue gained 4.5%.&nbsp;Net&nbsp;revenue&nbsp;per&nbsp;hl&nbsp;slipped&nbsp;1.4%.
Consolidated volume was virtually flat (+0.1%), as positive performances in Brazil (+6.5% in NAB and +3.6% in Beer) and Central America and the Caribbean (CAC) (+5.6%)&nbsp;were offset&nbsp;by Latin America South (-12.7%) and Canada (-7.7%).
Gross profit for the quarter dropped 1.8% to R$10.2 billion, and the margin contracted 30 basis points to 50.4%.
Normalized profit dropped 0.6% to R$3.8 billion. Normalized EBITDA climbed 1.4% to R$6.5 billion, and the normalized EBITDA margin expanded by 80 basis points to 32.2%.
Ambev held R$12.8 billion in cash and equivalents as of March-end.
&#8220;Our continued commercial momentum delivered a&nbsp;strong start to&nbsp;the year with double-digit&nbsp;Normalized
EBITDA growth (with margin expansion),&#8221; said CEO Jean Jereissati.
Price Action: ABEV shares are trading lower by 3.66% at $2.37 at&nbsp;the last check Wednesday.

Brewing Company Ambev Posts 4.5% Organic Revenue Growth In Q1

Ambev shares are trading lower after the company reported Q1 financial results.

Ambev (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABEV#NYSE">ABEV</a>) reported quarterly earnings of $0.05 per share which beat the analyst consensus estimate of $0.04 by 25 percent. This is unchanged from the same period last year. The company reported quarterly sales of $4.10 billion which beat the analyst consensus estimate of $3.85 billion by 6.39 percent. This is a 3.64 percent increase over sales of $3.95 billion the same period last year.

Ambev Q1 Adj $0.05 Beats $0.04 Estimate, Sales $4.10B Beat $3.85B Estimate

Capital market investors often look for entry points, hidden gems, and value bets. Quality stocks trading at or around their 52-week low levels offer one <a href="https://www.benzinga.com/quote/SBUX/news">such opportunity window.</a>
We looked at established companies that, recently, made new 52-week lows. We point readers&#8217; attention to three such stocks, with $35 billion market capitalizations. These are: Starbucks Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>), Gilead Sciences (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GILD#NASDAQ">GILD</a>) and Ambev SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABEV#NYSE">ABEV</a>).
<h2 class="wp-block-heading">Starbucks</h2>
Trading at around $86.83, the coffee franchise&#8217;s stock could potentially offer a buy-the-dip opportunity. The Seattle-based company&#8217;s shares command a market cap of over $98 billion on the stock market and sport an average three-month trading volume of 8.49 million.
The stock also offers, to its investors, a dividend yield of 2.63%.
Wells Fargo, TD Cowen, and TD Cowen released the last three analyst ratings on April 1, April 1, and March 19, 2024, respectively. These ratings suggest an average price target of $102.33 for Starbucks Corp, implying a potential upside of 17.23% based on the assessments of these three analysts.
Also Read: <a href="https://www.benzinga.com/insights/news/24/03/37971829/100-invested-in-this-stock-15-years-ago-would-be-worth-1-600-today">$100 Invested In This Stock 15 Years Ago Would Be Worth $1,600 Today</a>
<h2 class="wp-block-heading">Gilead Sciences</h2>
Trading at around $69.32, this biopharma stock is currently trading about its 52-week lows. The company gained widespread recognition for its development of antiretroviral drugs for the treatment of HIV/AIDS, including medications such as Truvada, Atripla, and Descovy.
Gilead stock offers a robust dividend yield of 4.43%.
Wells Fargo, Mizuho, and Truist Securities recently released the last three analyst ratings. These assessments collectively suggest an average price target of $83.33 for Gilead stock.
Based on these ratings, there is an implied 20.16% upside potential for the company.
<h2 class="wp-block-heading">Ambev</h2>
Ambev SA is widely renowned for its portfolio of beer brands, including popular labels such as Skol, Brahma, Antarctica, and Budweiser. Trading at $2.40, Ambev stock is near-about its 52-week low level of $2.36. The stock also offers a juicy dividend yield of 6.26%.
Based on the analysis of the 8 latest analyst ratings, Ambev SA has a consensus price target of $2.2. The most recent ratings were issued by Barclays, Jefferies, and Bernstein on March 4, 2024, Nov. 22, 2023, and May 24, 2023, respectively. 
These assessments collectively indicate an average price target of $3.2 for Ambev stock. Consequently, there&#8217;s an implied 32.51% upside potential for the company based on these three analyst ratings.
These findings suggest that these quality stocks may present lucrative investment opportunities, offering potential upside for investors in the coming months.
Read Next: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/04/38032100/redditors-identify-best-undervalued-stocks-for-2024">Redditors Identify &#8216;Best Undervalued Stocks&#8217; For 2024</a>

Long Ideas

GILD

SBUX

Starbucks, Gilead And Ambev Are At 52-Week Lows: Should You Buy The Dip?

In today's rapidly evolving and fiercely competitive business landscape, it is crucial for investors and industry analysts to conduct comprehensive company evaluations. In this article, we will undertake an in-depth industry comparison, assessing Ambev (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABEV#NYSE">ABEV</a>) alongside its primary competitors in the Beverages industry. By meticulously examining crucial financial indicators, market positioning, and growth potential, we aim to provide valuable insights to investors and shed light on company's performance within the industry.
<h3>Ambev Background</h3>
Ambev is the largest brewer in Latin America and the Caribbean and is Anheuser-Busch InBev's subsidiary in the region. It produces, distributes, and sells beer and PepsiCo products in Brazil and other Latin American countries and owns Argentina's largest brewer, Quinsa. Ambev was formed in 1999 through the merger of Brazil's two largest beverage companies, Brahma and Antarctica. In 2004, Ambev combined with Canadian brewer Labatt, giving Interbrew (now AB InBev) a controlling interest of 61.8% as at the end of 2023.
<table>
<thead>
<tr>
<th>Company</th>
<th>P/E</th>
<th>P/B</th>
<th>P/S</th>
<th>ROE</th>
<th>EBITDA (in billions)</th>
<th>Gross Profit (in billions)</th>
<th>Revenue Growth</th>
</tr>
</thead>
<tbody>
<tr>
<td>Ambev SA</td>
<td>13.48</td>
<td>2.46</td>
<td>2.45</td>
<td>5.19%</td>
<td>$6.95</td>
<td>$10.69</td>
<td>-11.91%</td>
</tr>
<tr>
<td>Anheuser-Busch InBev SA/NV</td>
<td>23.40</td>
<td>1.47</td>
<td>2.10</td>
<td>2.31%</td>
<td>$3.61</td>
<td>$7.79</td>
<td>-1.33%</td>
</tr>
<tr>
<td>Molson Coors Beverage Co</td>
<td>15.41</td>
<td>1.08</td>
<td>1.25</td>
<td>0.78%</td>
<td>$0.42</td>
<td>$1.03</td>
<td>6.13%</td>
</tr>
<tr>
<td>Boston Beer Co Inc</td>
<td>49.59</td>
<td>3.44</td>
<td>1.88</td>
<td>-1.65%</td>
<td>$-0.0</td>
<td>$0.15</td>
<td>-12.02%</td>
</tr>
<tr>
<td>United Breweries Co Inc</td>
<td>20.30</td>
<td>1.76</td>
<td>0.84</td>
<td>3.25%</td>
<td>$41.32</td>
<td>$264.27</td>
<td>-16.61%</td>
</tr>
<tr>
<td>Average</td>
<td>27.18</td>
<td>1.94</td>
<td>1.52</td>
<td>1.17%</td>
<td>$11.34</td>
<td>$68.31</td>
<td>-5.96%</td>
</tr>
</tbody>
</table>
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 </style>After a detailed analysis of Ambev, the following trends become apparent: 
<ul>
<li>
The Price to Earnings ratio of 13.48 is 0.5x lower than the industry average, indicating potential undervaluation for the stock.
</li>
<li>
It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 2.46 which exceeds the industry average by 1.27x.
</li>
<li>
The Price to Sales ratio of 2.45, which is 1.61x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
</li>
<li>
The Return on Equity (ROE) of 5.19% is 4.02% above the industry average, highlighting efficient use of equity to generate profits.
</li>
<li>
With lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $6.95 Billion, which is 0.61x below the industry average, the company may face lower profitability or financial challenges.
</li>
<li>
With lower gross profit of $10.69 Billion, which indicates 0.16x below the industry average, the company may experience lower revenue after accounting for production costs.
</li>
<li>
The company's revenue growth of -11.91% is significantly lower compared to the industry average of -5.96%. This indicates a potential fall in the company's sales performance.
</li>
</ul>
<h3>Debt To Equity Ratio</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1711638007_0.png" alt="debt to equity" />
The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared to its equity.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In terms of the Debt-to-Equity ratio, Ambev stands in comparison with its top 4 peers, leading to the following comparisons:
<ul>
<li>
Compared to its top 4 peers, Ambev has a moderate debt-to-equity ratio of 0.04, indicating a balanced financial structure.
</li>
<li>
This suggests that the company maintains a reasonable level of debt while also leveraging equity financing.
</li>
</ul>
<h3>Key Takeaways</h3>
For PE, PB, and PS ratios, Ambev shows a low PE ratio, indicating potential undervaluation compared to peers. However, its high PB and PS ratios suggest overvaluation relative to industry standards. In terms of ROE, EBITDA, gross profit, and revenue growth, Ambev demonstrates high ROE but low EBITDA, gross profit, and revenue growth compared to industry peers, indicating mixed performance in operational efficiency and growth potential within the Beverages industry.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Performance Comparison: Ambev And Competitors In Beverages Industry

The February labor market report presented mixed signals on the employment front, with a notable and larger-than-expected increase of 270,000 in nonfarm payrolls over the month, yet a higher-than-expected rise in the unemployment rate, moving <a href="https://www.benzinga.com/news/econ-s/24/03/37558250/february-jobs-growth-beats-estimates-but-unemployment-rate-rises-to-3-9-wage-growth-eases">from 3.7% to 3.9%.</a>
Additionally, the employment changes for December and January were revised downwards, subtracting a total of 167,000 nonfarm payrolls previously calculated for those two months.
Perhaps the clearest data came from the trend in wages, which grew less than expected, thereby alleviating fears about their potential impact on inflation.
In February, the pace of increase in average hourly earnings was 0.1%, a decrease from the 0.4% in January and lower than the expected 0.3%. On an annual basis, wage growth is 4.3%, down from the 4.4% expected and from January&#8217;s figure.
Overall, the data from the February labor market report has further fueled market bets on Federal Reserve rate cuts.
Traders assign an 83% probability on a rate cut occurring by June, as per CME Group&#8217;s FedWatch Tool. Additionally, they estimate a total of 105 basis points of cuts by the end of the year, implying a scenario where four cuts are fully priced in.
Stocks slightly increased after the release, with futures on the S&amp;P 500 index up by 0.3%, and those on the tech-heavy Nasdaq 100 inching 0.2% higher. The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) closed at an all-time high on Thursday. 
<h2 class="wp-block-heading">Stock Movers On Friday&#8217;s Morning Trading</h2>
Below is a list of stocks (with at least $10 billion of market capitalization) reacting to the job report release, as indicated by data from the <a href="https://pro.benzinga.com/dashboard">Benzinga Pro platform.</a>
Top Gainers After Jobs Report
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>%Change between 08:30-09:20 ET</td>
</tr>
<tr>
<td>Atlassian (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TEAM#NASDAQ">TEAM</a>)</td>
<td>2.0%</td>
</tr>
<tr>
<td>JM Smucker (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SJM#NYSE">SJM</a>)</td>
<td>1.87%</td>
</tr>
<tr>
<td>GFL Environmental (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GFL#NYSE">GFL</a>)</td>
<td>1.84%</td>
</tr>
<tr>
<td>Petrobras Brasileiro (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBR#NYSE">PBR</a>)</td>
<td>1.65%</td>
</tr>
<tr>
<td>Southern Copper (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCCO#NYSE">SCCO</a>)</td>
<td>1.58%</td>
</tr>
<tr>
<td>A.O. Smith (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AOS#NYSE">AOS</a>)</td>
<td>1.53%</td>
</tr>
<tr>
<td>Rivian Automotive (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>)</td>
<td>1.52%</td>
</tr>
</tbody>
</table>
</figure>
Worst Losers After Jobs Report
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>%Change between 08:30-09:20 ET</td>
</tr>
<tr>
<td>Paramount Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>)​</td>
<td>-2.59%</td>
</tr>
<tr>
<td>Samsara Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IOT#NYSE">IOT</a>)</td>
<td>-1.79%</td>
</tr>
<tr>
<td>Williams-Sonoma, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSM#NYSE">WSM</a>)</td>
<td>-1.67%</td>
</tr>
<tr>
<td>Suzano S.A.</td>
<td>-1.35%</td>
</tr>
<tr>
<td>Biogen Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIIB#NASDAQ">BIIB</a>)</td>
<td>-1.29%</td>
</tr>
<tr>
<td>Barrick Gold Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>)​</td>
<td>-1.24%</td>
</tr>
<tr>
<td>Ambev S.A. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABEV#NYSE">ABEV</a>)</td>
<td>-1.19%</td>
</tr>
<tr>
<td>Skyworks Solutions</td>
<td>-1.18%</td>
</tr>
</tbody>
</table>
</figure>
Read now: <a href="https://www.benzinga.com/markets/equities/24/03/37554807/happy-womens-day-if-you-had-invested-1000-in-these-female-led-s-p-500-companies-a-year-ago-which">Happy Women&#8217;s Day! If You Had Invested $1,000 In These Female-Led S&amp;P 500 Companies A Year Ago, Which Would&#8217;ve Fetched The Best Returns?</a>
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