Stock of the Day

Ambev (ABEV)

$2.48

+$0.02 (+0.6%)

Market Cap: $38.84B

About Ambev

Ambev S.A., through its subsidiaries, engages in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt and food, other alcoholic beverages, and non-alcoholic and non-carbonated products in Brazil, Central America and Caribbean, Latin America South, and Canada.

It offers beer primarily under the Skol, Brahma, Antarctica, Brahva, Budweiser, Bud Light, Beck, Leffe, Hoegaarden, Balboa ICE, Balboa, Atlas Golden Light, Atlas, Bucanero, Cristal, Mayabe, Presidente, Presidente Light, Brahma Light, Bohemia, The One, Corona, Modelo Especial, Stella Artois, Quilmes Clásica, Paceña, Taquiña, Huari, Becker, Cusqueña, Michelob Ultra, Busch, Pilsen, Ouro Fino, Bud 66, Banks, Deputy, Patricia, Labatt Blue, Alexander Keith's, and Kokanee brands. The company also provides carbonated soft drinks, bottled water, isotonic beverages, energy drinks, coconut water, powdered and natural juices, and ready-to-drink teas under the Guaraná Antarctica, Gatorade, H2OH!, Pepsi Black, Lipton Iced Tea, Fusion, Pepsi-Cola, Canada Dry, Squirt, Red Rock, Red Bull, Seven Up, Nutrl, Bud Light Seltzer, Palm Bay, and Mike's brands. It offers its products through a network of third-party distributors and a direct distribution system. The company was founded in 1885 and is headquartered in São Paulo, Brazil. Ambev S.A. is a subsidiary of Interbrew International B.V.

Ambev Bull Case

Here are some ways that investors could benefit from investing in Ambev S.A.:

• The current stock price is around $2.47, which is near its 52-week high of $2.64, indicating strong market performance.
• Analysts have recently raised the target price for Ambev S.A. to $2.50, suggesting potential for price appreciation.
• Institutional investors hold 8.13% of the stock, reflecting confidence from large financial entities in Ambev S.A.'s future prospects.
• Ambev S.A. has a relatively low debt-to-equity ratio, indicating a strong balance sheet and lower financial risk.
• Recent upgrades from research firms, including a "buy" rating from Wall Street Zen, highlight positive sentiment in the market.

Ambev Bear Case

Investors should be bearish about investing in Ambev S.A. for these reasons:

• Recent downgrades from firms like Morgan Stanley, which moved Ambev S.A. from "equal weight" to "underweight," indicate potential concerns about future performance.
• The stock has experienced fluctuations, with a recent decline of 0.4% during trading, which may signal volatility.
• Analysts have mixed ratings, with one sell rating and four hold ratings, suggesting uncertainty among experts regarding the stock's future.
• The price-to-earnings (P/E) ratio is relatively high at 13.72, which could indicate that the stock is overvalued compared to its earnings.
• Market conditions and economic factors could impact consumer spending, which may affect Ambev S.A.'s sales and profitability.

Recent News

• Moody’s revisa perspectiva da nota de crédito da Ambev de “positiva” para “estável” (msn.com)