Do You Have These Beverage Stocks On Your 2020 Watchlist?
It’s a no brainer that the economic crisis has badly affected beverage stocks. Sales for every industry dropped immediately right at the start. One problem that many beverage stocks face is the lack of sales in restaurants. Many alcohol companies rely on restaurants and bars serving their drinks as a large portion of their profit. So this has caused many beverage stocks related to alcohol to still be very low.
What does this mean for beverage stocks in the future? Well, many beverage companies have managed to stay afloat because of store purchases. When restaurants open fully and people begin going out more, beverage stocks will rise. Beverage stocks relating to alcohol will especially rise when bars open up around the world.
As we regularly get closer to reopening, investors are looking for beverage stocks to watch. The beverage stocks that are climbing upwards have the potential to be the best beverage stocks to buy. Make sure you do a lot of research and don’t just blindly invest in beverage stocks. Now it is time to look at two beverage stocks to watch that are trending.
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Top Beverage Stocks To Buy [Or Avoid] In 2020: Anheuser-Busche
The first beverage stock to watch, Anheuser-Busche InBev SA/NV (BUD Stock Report) is trending at the moment. AB InBev was formed by InBev purchasing Anheuser-Busche. Some of AB InBev’s subsidiaries include the obvious Anehuser-Busche, InBev, AmBev, Grupo Modelo, and more. Anheuser-Busche was founded in 1852 in St. Louis Missouri where it is still based today. The company has over 30,000 employees and operates 12 different breweries in the United States.
Shares of BUD stock rose 8.3% in just the last 5 days. On July 1st, BUD stock price was at $48 a share on average. On July 8th, BUD stock is at $52.26 a share on average. Before the economic crash BUD stock was at $75 a share on average. BUD stock price fell below $36 a share but has since rose back up more than 44%. This recent uptick in BUD stock price could mean it is closer to recovering.
It is unknown when restaurants will fully reopen around the world. With talks about a second virus wave things aren’t looking any closer towards bars and indoor restaurants being open. So that is why these beverage stocks are highly volatile. While BUD stock price may have dropped a large percentage it is on its way back up. It will be interesting to see where BUD stock goes in the future.
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Top Beverage Stocks To Buy [Or Avoid] In 2020: Boston Beer Company
The next beverage stock to watch is The Boston Beer Company Inc. (SAM Stock Report) due to its recent market movement. The company owns Samuel Adams, Angry Orchard, Twisted Tea, and more. Founded in 1984, it has grown to be the second-largest craft brewery in the United States. In 2014 its revenue was reported to be $900 million. 4.3 million beer barrels were produced in 2018 by the company.
As of July 8th SAM stock is at a new record high. SAM stock price was at $400 a share on average before the economic fall. After the fall, SAM stock dropped in share price but has since rose to new heights. SAM stock price is at $581 a share as of July 8th. This means that SAM stock is up around 89% from its low of $306 at the peak of the fall. One of the reasons for the SAM stock price increase is Boston Beer’s subsidiary Truly Hard Seltzer. This new beverage made lots of profit for Boston Beer. It seems that when it comes to at home consumption, Boston Beer has a big potential for profit. Since many are stuck at home alcohol purchases have been on the rise.
Bottom Line
In late July another report will come from Boston Beer which could help or hurt SAM stock. It will be interesting to see what happens to SAM stock price in the coming weeks. If these reports are good, then SAM stock can continue climbing to new highs. Beverage stocks have the potential to rise up in the market more. This is why BUD stock and SAM stock are two potential beverage stocks to buy.
