Molson Coors Brewing Co
) closed at $51.90 on Apr 1, reaching a new 52-week high. Shares
of this global brewer have been gaining momentum since it
reported solid fourth quarter 2012 results on Feb 14. In fact,
this Zacks Rank #2 (Buy) stock has set new 52-week highs thrice
since the announcement of its fourth quarter results.
The improvement in beer volumes on the back of a recovery in
the U.S. economy and increase in consumer spending is driving the
shares higher. In addition, the company is geared up to expand in
fast growing emerging markets and introduce new products, going
Year-to-date, share prices have recorded a healthy return of
20.0%. The company's long-term estimated EPS growth rate is
5.40%. Average volume of shares traded over the last three months
came in at approximately 1,179K.
Like most of the companies, Molson Coors suffered from
macro-economic challenges in 2012 including a sluggish U.S.
economy and uncertainties in Europe and China. Though the
European economy still remains weak, recovery in the U.S. and
China has been significant, which in turn increased consumer
spending. In addition, the emerging markets have become the focus
of investment with rising income levels of consumers.
Impressive Fourth Quarter Results
Molson Coors reported impressive fourth quarter results
beating the Zacks Consensus Estimate for earnings, while lagging
the same for sales. In fact, Molson Coors has surpassed the Zacks
Consensus Estimate in the last five quarters, with an average
surprise of 14.2%. The addition of the StarBev operations in the
reported results boosted net sales growth by 9.9% to $1.03
billion in the quarter. Increased worldwide beer volume and
foreign exchange also impacted the quarter favorably.
The company's acquisition of the StarBev business in Jun 2012
has significantly enhanced the company's portfolio of premium
brands. It has also created opportunities for the company in
Central Europe to extend its key brands, taking advantage of the
attractive beer market. Molson Coors is also eyeing the expanding
markets of China with rising consumer demand.
Other Stocks to Consider
Apart from Molson Coors, other stocks in the consumer staples
sector that are worth considering are
Companhia De Bebidas Das Ame
Hillshire Brands Co.
). While Hillshire holds a Zacks Rank #1 (Strong Buy), Kellogg
and ABV carry a Zacks Rank #2 (Buy).
AMBEV-PR ADR (ABV): Free Stock Analysis
HILLSHIRE BRAND (HSH): Free Stock Analysis
KELLOGG CO (K): Free Stock Analysis Report
MOLSON COORS-B (TAP): Free Stock Analysis
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