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High beverage shares after Coca-Cola revenue

April
21, 2021

6 min read

This story originally appeared on StockMarket

Are these the best stocks of drinks to buy right now?

While the sell-off of tech stocks has dominated headlines in stock markets, Beverage supplies surprise investors with their renewed demand in the first quarter. For example, Coca-Cola Co. (NYSE: KO) started the week on a strong note after releasing its latest quarterly results. The beverage giant's net sales rose 5% year over year to $ 9 billion. It did so when the company saw a rebound in sales with the expansion of its COVID-19 vaccine rollout, and the company said demand reached pre-pandemic levels in March.

Most of the beverage industry was hit in the early days of the pandemic when guests were closed and social gatherings were banned. However, in anticipation of a strong economic recovery, demand is slowly creeping back. Making a list of the best beverage stocks to buy is not a bad idea. After all, these are the products that people keep buying regardless of the general economic climate.

As we watch news of the surge in Coca-Cola sales, many investors are starting to look out for other top beverage stocks that could see similar rallies this earnings season. Do you have these beverage stocks on your watch list on the stock exchange today?

Top Beverage Stocks You Should See Right Now

Boston Beer

First, Boston Beer stock has ripped apart since the pandemic began. While sales plummeted when the stay at home measures were put in place, the company continued to resist gravity. This is thanks in part to increasing retailer demand for products like Truly Hard Seltzer and Twisted Tea. No doubt investors are hoping for further growth in these brands as the company releases results on April 22nd. To sum up, the company achieved excellent results in the fourth quarter of 2020. Net sales increased 53% year over year to $ 460.9 million. Earnings per share were $ 2.64, an increase of 135.7% year over year.

Source: TD Ameritrade TOS

The SAM share was a real outperformance in the beverage industry. The company's share price rose more than 200% over the past year, while the S&P 500 only rose nearly 50% over the same period. Of course, given the strong rally last year, there can be only limited upside potential. However, let's not forget the Boston Beer success story of innovation and consistent profitability over the past few years. Given the bullish outlook for the fast-growing hard seltzer market, would you bet on SAM stock ahead of this week's earnings report?

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Pepsi & Co.

The iconic archenemy of Coca-Cola Co., PepsiCo. had really started in 2021. The company has a world-class portfolio including brands like Frito-Lay, Pepsi-Cola, Gatorade and Quaker. Last month, PEP stock was up over 10%, closing the trading session on Tuesday at 145.71% per share. Last week, the company confirmed to most investors that it could continue to grow sales. As of the first quarterly report, revenue increased 6.8% year over year to $ 14.8 million. Operating profit increased to $ 2.3 billion from $ 1.9 billion a year ago. This solid figure is in line with management's outlook for 5% revenue growth this year.

Top beverage stocks (PEP stock)Source: TD Ameritrade TOS

At first glance, PepsiCo seems like a risky investment as soda consumption rates in developed countries have been falling for decades. Of course, the company isn't resting on its laurels either, and has diversified beyond sodas with relatively healthier options. With Americans stuck at home, snacks like Frito-Lay have seen sales soar. And not only Frito-Lay is experiencing a boom. The company's other products are also growing rapidly. For example, suppose consumers continue to turn to snacking for comfort during this pandemic. Are you betting on PEP stocks now?

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Monster drink

Monster Beverage Corp is a multinational energy drink beverages brand with a global presence. Investors love MNST stock because the company has a debt-free balance sheet. According to research firm T4, Monster accounted for 39% of the market for all energy drinks in 2020, with NOS (also owned by Monster) gaining another 3% share. So it's not surprising that MNST stock has been a multi-dredger for the past decade. In fact, its historical performance could put even some of the biggest technology stocks to shame. The company's success in the energy drink market has also attracted investment from Coca-Cola.

best beverage stocks (MNST stock)Source: TD Ameritrade TOS

In February, Monster Beverage announced its fourth quarter 2020 financial results. The company recorded a year-over-year revenue increase of 17.6% to $ 1.20 billion. In addition, net income reached $ 471.7 million, an 85% increase over the previous year. Monster could consider further international expansion and a tough Seltzer start. This could help generate additional profits for the company. Additionally, given the company's strong execution, they could become new growth drivers. Granted, many may think that the stock is expensive to value. Given these exciting developments, do you think MNST stock can continue its momentum?

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Constellation Brands

Last but not least, Constellation Brands is a leading international manufacturer and marketer of alcoholic beverages. In the past year, the STZ share rose by over 50% and was quoted at USD 238.31 at the closing price on Tuesday. Unlike the other beverage stocks on this list, the company posted better-than-expected quarterly results earlier this month. Despite weak demand in bars and restaurants, the alcoholic beverage giant announced solid growth in its beer portfolio. For the three months ended February 28, 2021, net sales increased 3% year over year to $ 1.95 billion.

best beverage stocks that are currently for sale (STZ-share)Source: TD Ameritrade TOS

The company's management is optimistic about growth for the fiscal year ending February 28, 2022. In particular, Constellation Brands expects sales in this segment to grow by 7% to 9%. It should be noted that the company has plans to invest in additional capacity in Mexico. This will provide the long-term flexibility needed to support the future growth of Mexico's high-end beer portfolio. In addition, management expects strong operating cash flows of $ 2.4 billion and $ 2.6 billion in fiscal 2022. Given the company's financial strength, would you put STZ shares on your watchlist?

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