Molson Coors Brewing Co
) reached a new 52-week high of $53.35 on May 17 following the
announcement of its solid first quarter 2013 results on May 7.
Shares of this global brewer closed at $53.32 on May 17,
recording a healthy return of 23.3% on a year-to-date basis. 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
Impressive First Quarter Results
Molson Coors reported impressive first quarter sales, which
outpaced the prior-year quarter by 19.8% due to the addition of
the StarBev operations. 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.
Total worldwide beer volume also increased double-digits in
the quarter. 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. Though the European economy still
remains weak, overall 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 consumers' income.
Overall, we are encouraged by the company's strong brand
portfolio, continuous innovation and cost-saving initiatives. In
addition, Molson Coors continues to focus on its strategy of
maximizing profitable growth opportunities in the core markets
and expanding into new and emerging markets. Molson Coors is also
eyeing the expanding markets of China.
Other Stocks to Consider
Apart from Molson Coors, other stocks in the consumer staples
sector that are worth considering are
Sanderson Farms, Inc
The Coca Cola Co.
). While Sanderson holds a Zacks Rank #1 (Strong Buy), Coca Cola
and PepsiCo carry a Zacks Rank #2 (Buy).
COCA COLA CO (KO): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
SANDERSON FARMS (SAFM): Free Stock Analysis
MOLSON COORS-B (TAP): Free Stock Analysis
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