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Boston Beer (SAM) Gains But Lags Market: What You Should Know

·2-min read

Boston Beer (SAM) closed at $1,106.29 in the latest trading session, marking a +0.66% move from the prior day. This change lagged the S&P 500's 0.88% gain on the day.

Heading into today, shares of the brewer had lost 0.97% over the past month, lagging the Consumer Staples sector's gain of 4.14% and the S&P 500's gain of 0.15% in that time.

Wall Street will be looking for positivity from SAM as it approaches its next earnings report date. In that report, analysts expect SAM to post earnings of $6.49 per share. This would mark year-over-year growth of 38.38%. Our most recent consensus estimate is calling for quarterly revenue of $648.72 million, up 43.48% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.33 per share and revenue of $2.48 billion. These totals would mark changes of +52.11% and +42.84%, respectively, from last year.

Any recent changes to analyst estimates for SAM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SAM is currently a Zacks Rank #3 (Hold).

Digging into valuation, SAM currently has a Forward P/E ratio of 49.22. This represents a premium compared to its industry's average Forward P/E of 30.7.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 126, which puts it in the top 50% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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

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