Which Beer Stocks Should You Stock Up On?
My favorite might come as a surprise.
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Next week, Americans will hit the highways and run to the airports in preparation for the Thanksgiving holiday.
If you're hosting friends and relatives this holiday season, chances are you've checked your supply of wine, spirits and beer. A pre-holiday trip to the beer distributor is a glimpse inside an ongoing battle, fought with positioning and pricing.
Which beer brands are winning this battle and which ones are losing? Let's go to the charts to find out.
Anheuser-Busch InBev
Anheuser Busch BUD was under pressure earlier this year, due in part to an advertising campaign for Bud Light that involved a transgender influencer.
Some beer drinkers have shunned Bud Light in wake of that controversy. In the stores I visited, the brand was placed far in the back, away from most of the foot traffic, and only a few cases were on display.
In this context, it may come as a surprise to some that the brand's manufacturer, Anheuser-Busch InBev, closed at a six-month high on Tuesday. Indeed, BUD stock is now in positive territory for the year. Those who bought the dip, as I recommended last April, have been rewarded.
BUD has broken above resistance (black dotted line) and is trading above its 50-day (blue) and 200-day (red) moving averages. The next major resistance for the stock is its year-to-date closing high of $66.73. (P.S.: I own this stock)
Chart Source: TradeStation
While Budweiser and Bud Light are still experiencing a sharp reduction in sales, Anheuser-Busch is home to more than 100 beer brands, including Stella Artois, Goose Island and Kona Big Wave. GRADE: B+
Molson Coors Beverage Co.
Shares of Molson Coors TAP have been in a steady downtrend since August. The stock is trading in a bear channel (parallel lines) and beneath its 50-day (blue) and 200-day (red) moving averages.
Chart Source: TradeStation
Despite poor performance over the past three months, shares of TAP have gained about 16% this year. I wouldn't consider buying Molson Coors until the stock breaks out of its bearish channel. It also was identified last month by Real Money Pro's Bob Lang as a Bearish Bet. GRADE: C-
Constellation Brands
The chart of Constellation Brands STZ is very similar to that of Molson Coors and therefore deserves a similar grade. (Real Money Pro's Bruce Kamich also isn't a fan of the stock.) GRADE: C-
Chart Source: TradeStation
Boston Beer Co.
Boston Beer SAM , brewer of the Sam Adams brand, reached a six-month high in October (H). Since then, the stock has drifted lower, forming a lower high (LH) and a lower low (LL).
Chart Source: TradeStation
However, there is some good news on this chart. The lower low of Oct. 27 (LL) filled a large gap left from July (point A). Since that gap was filled, the stock has been grinding higher. GRADE: B-
At the time of publication, Ponsi was long BUD.
