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Boston Beer (SAM) Stock Sinks As Market Gains: What You Should Know

Boston Beer (SAM) closed at $873.42 in the latest trading session, marking a -1.13% move from the prior day. This change lagged the S&P 500's 0.53% gain on the day. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 1.42%.

Heading into today, shares of the brewer had gained 3.3% over the past month, outpacing the Consumer Staples sector's loss of 1.46% and the S&P 500's loss of 3.76% in that time.

SAM will be looking to display strength as it nears its next earnings release. On that day, SAM is projected to report earnings of $2.31 per share, which would represent a year-over-year decline of 35.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $533.69 million, up 41.01% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.34 per share and revenue of $1.70 billion. These totals would mark changes of +34.57% and +36.16%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for SAM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Within the past 30 days, our consensus EPS projection has moved 1.37% higher. SAM is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note SAM's current valuation metrics, including its Forward P/E ratio of 71.58. This valuation marks a premium compared to its industry's average Forward P/E of 24.96.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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The Boston Beer Company, Inc. (SAM): Free Stock Analysis Report
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