#6 - Anheuser Busch InBev (NYSE:BUD)
Anheuser Busch InBev (BUD) RSI Score = 42.56
If your social media timeline looks anything like mine, it might be hard to imagine that a brewery would be having a hard time. But this teaches an important lesson about investing. Volume matters. No matter how much beer individuals may be purchasing to keep themselves sane and comforted during this period of sheltering, that revenue pales in comparison to what Anheuser Busch (NYSE:BUD) makes from bars and restaurants.
The world’s largest brewer got a double whammy from the coronavirus. In January and February, the company’s sales in China were badly affected. Then just as China started to recover, the United States, Brazil, and other key markets were shut down. This is leading the company to forecast that the second quarter may be “materially worse” than the first. As evidence of that, BUD reported a 32% sales decline in April. That was far steeper than the 9.3% decline it recorded in the first quarter.
However, this does look like a short-term obstacle. As the economy begins to re-open, the company should benefit from pent-up demand.
About Anheuser-Busch InBev SA/NV
Anheuser-Busch InBev SA/NV produces, distributes, exports, markets, and sells beer and beverages. It offers a portfolio of approximately 500 beer brands, which primarily include Budweiser, Corona, and Stella Artois; Beck's, Hoegaarden, Leffe, and Michelob Ultra; and Aguila, Antarctica, Bud Light, Brahma, Cass, Castle, Castle Lite, Cristal, Harbin, Jupiler, Modelo Especial, Quilmes, Victoria, Sedrin, and Skol brands.
Read More - Current Price
- $54.73
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $79.00 (44.3% Upside)
