Boston Beer (SAM) Gains But Lags Market: What You Should Know
In the latest trading session, Boston Beer (SAM) closed at $524.87, marking a +0.57% move from the previous day.
In the latest trading session, Boston Beer (SAM) closed at $524.87, marking a +0.57% move from the previous day. The stock lagged the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.03%.
Heading into today, shares of the brewer had gained 13.04% over the past month, outpacing the Consumer Staples sector's gain of 3.14% and the S&P 500's gain of 0.87% in that time.
Investors will be hoping for strength from Boston Beer as it approaches its next earnings release. The company is expected to report EPS of $3.27, up 27.73% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $473.95 million, up 2.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.41 per share and revenue of $2.19 billion, which would represent changes of +11.78% and +26.08%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Boston Beer. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.5% higher. Boston Beer is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Boston Beer currently has a Forward P/E ratio of 31.99. Its industry sports an average Forward P/E of 28.61, so we one might conclude that Boston Beer is trading at a premium comparatively.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SAM in the coming trading sessions, be sure to utilize Zacks.com.
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