Top Beer Stocks for Q2 2022

The beer industry is made up of companies specializing in the production of beer, although many of them produce other alcoholic and nonalcoholic beverages. Some of the big names in the industry include Netherlands-based SABMiller International B.V.—which is now part of fellow big name Belgium-based Anheuser-Busch InBev S.A./N.V. — as well as Japan-based Kirin Holdings Co. Ltd.. Demand for beer, a beverage, historically has remained stable throughout economic cycles. As a result, the beer industry is part of the much broader consumer staples sector.

According to a report by Technavio, the impact on the beer market growth has been neutral during amid the economic shock from the COVID-19 pandemic. The market in 2022 is seeing increasing demand for premium beers, which continue to drive market growth. The beer industry is expected to continue growing at a steady compound annual growth rate (CAGR) of 2.45% between 2020 and through 2025.

Beer stocks, represented by the broad S&P 500 Consumer Staples Sector Index, have outperformed the broader market. The index has provided a total return of 16.8% over the past 12 months, above the 8.2% total return of the Russell 1000 Index. These market performance numbers and the statistics in the tables below are as of March 8, 2022.

Here are the top three beer stocks with the best value, the fastest growth, and the most momentum.

These are the beer stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated.

Best Value Beer Stocks
  Price ($) Market Capitalization (Market Cap) ($B) 12-Month Trailing P/E Ratio
United Breweries Co. Inc. (CCU) 14.02 2.6 10.0
Molson Coors Beverage Co. (TAP) 51.95 11.3 11.2
Ambev S.A. (ABEV) 2.64 41.6 14.1

Source: YCharts

  • United Breweries Co. Inc.: United Breweries, also known as Compañía Cervecerías Unidas, is a Chile-based producer and distributor of a wide range of branded beers. The company also produces wines, spirits, and nonalcoholic beverages such as soft drinks, bottled water, and juices. In January, the company reported that robust demand had driven its volumes back to pre-Covid levels for the quarter ended December 31, 2021.
  • Molson Coors Beverage Co.: Molson Coors Beverage makes and sells beers globally, including in the U.S., Europe, and Asia. Besides its multiple beer brands, Molson Coors’ portfolio includes canned wine, sparkling cocktails, and cider. In January, the company announced that it had expanded its exclusive agreement with The Coca-Cola Company to develop and sell a new brand of full-flavor alcohol beverages.
  • Ambev S.A.: Ambev is a Brazil-based company primarily engaged in the production and distribution of beer. The company also produces and distributes soft drinks and other nonalcoholic beverages, including non-carbonated beverages. On Feb. 24, 2022, Ambev reported results for fiscal year 2021, ended Dec. 30, 2021. Normalized profit and cash flow from operating activities increased year over year (YOY) as net revenue rose 23.7%.

These are the top beer stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one figure or the other unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of more than 2,500% were excluded as outliers.

Fastest Growing Beer Stocks
  Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
Ambev S.A. (ABEV) 2.64 41.6 60.6 21.7
United Breweries Co. Inc. (CCU) 14.02 2.6 23.3 26.4
Anheuser-Busch InBev SA/NV (BUD) 53.63 93.2 -13.3 11.2

Source: YCharts

  • Ambev S.A.: See above for company description.
  • United Breweries Co. Inc.: See above for company description.
  • Anheuser-Busch InBev SA/NV.: Anheuser-Busch is a Belgium-based holding company engaged in the manufacture and distribution of alcoholic and nonalcoholic beverages. The company owns a portfolio of more than 400 different beer brands, including Budweiser, Corona, and Stella Artois.

These are the beer stocks that had the highest total return over the last 12 months.

Beer Stocks with the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Diageo PLC (DEO) 177.90 102.9 12.1
Molson Coors Beverage Co. (TAP) 51.95 11.3 11.4
Ambev S.A. (ABEV) 2.64 41.6 7.3
Russell 1000 Index N/A N/A 8.2
S&P 500 Consumer Staples Sector Index N/A N/A 16.8

Source: YCharts

  • Diageo PLC: Diageo is a U.K.-based alcoholic beverage company. In addition to beer, the company sells other branded alcoholic beverages, including vodkas, whiskeys, tequilas, and gins. On Feb. 21, the company announced it’s commencing the third phase of its, previously announced, return on capital (ROC) program to buy back £4.5 billion ($5.9 billion) worth of shares by the end of fiscal 2023. In the first two phases completed on Jan. 31, 2020 and Feb. 11, 2022 respectively, the company bought back £2.25 billion worth of shares.
  • Molson Coors Beverage Co.: See above for company description.
  • Ambev S.A.: See above for company description.

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