Three leading beer stocks—Heineken (HEINY), Anheuser-Busch InBev (BUD), and Carlsberg (CABGY)—are experiencing a significant rebound due to improving fundamentals and rising analyst sentiment. Heineken and Carlsberg hold a Zacks Rank of #1 (Strong Buy), while Anheuser-Busch carries a #2 (Buy) as of late September 2023. The companies are currently benefiting from earnings expectations that have seen solid upward revisions: Heineken’s current year earnings estimates rose by 5.3% over the past month, and both Carlsberg and Anheuser-Busch are showing similar positive trends.
Recent structural changes in the beer market, including margin expansion and disciplined cost control, are evident as revenue grows at mid-single-digit rates while earnings expand in the teens. This scenario signals that even modest sales increases can lead to notable profitability gains. As a result, institutional investors have begun accumulating shares, reflected by constructive technical setups in these stocks, which may indicate the beginning of a broader earnings revision cycle.
This shift in investor sentiment comes after years of underweighting alcohol stocks driven by declining consumption trends. Today’s momentum suggests that if fundamentals continue to stabilize, these stocks may see sustained growth over the coming quarters as market perceptions change.
