Molson Coors Brewing Co
) reached a 52-week high of $49.05 on Mar 20 and eventually
closed at $48.91. Shares of this global brewer have been riding
high since it reported solid fourth quarter 2012 results.
Moreover, the recent business process outsourcing ('BPO') deal
between Molson Coors and IT company
) might have triggered the share price of the former.
This Zacks Rank #2 (Buy) company beat its previous 52-week
high of $47.39 achieved on Mar 8, recording a healthy return of
13.1% year-to-date. 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 1,581K.
Impressive Fourth Quarter Results
Molson Coors reported impressive fourth quarter results on Feb
14. The addition of 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.
We believe that the company's acquisition of the StarBev
business in Jun 2012 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.
We are encouraged by the company's strong brand portfolio. 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 has also been undertaking restructuring
initiatives over the past few quarters in order to reduce
overhead costs and boost profitability. Among other plans, Molson
Coors seeks to improve efficiencies in finance, administration
and human resources. Accordingly, Molson Coors sealed a BPO deal
with H-P on Mar 11 as a step to streamline its business
operations. The brewer's selection of H-P's services goes
hand-in-hand with the company's restructuring plans. The deal
will also allow Molson Coors to spend less time on supervision
and focus more on generating new business ideas.
Other Stocks to Consider
Apart from Molson Coors, other stocks in the consumer staples
sector that are worth considering are
Hillshire Brands Co.
). Hillshire holds a Zacks Rank #1 (Strong Buy), while Kellogg
carries a Zacks Rank #2 (Buy).
HEWLETT PACKARD (HPQ): 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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