Chart of the Day
Jan. 6, 20247 min read

Watch These Beer Stocks in 2024

Tim BohenAvatar
Written by Tim Bohen
 

Beer Stocks: Key Takeaways

  • Are beer stocks ready for a heady run?
  • The potential frothy growth avenue to watch in this sector…

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You may like to drink beer, but how about trading beer stocks? Seems this sector hit a sour patch over the past year. And while that sounds bad, an oversold sector can create new trading opportunities. I have four beer stocks worth watching now (details below).

  1. Constellation Brands, Inc. (NYSE: STZ … read my analysis here)
  2. Compania Cervecerias Unidas S.A. (NYSE: CCU … read my analysis here)
  3. Molson Coors Beverage Company (NYSE: TAP … read my analysis here)
  4. The Boston Beer Company, Inc. (NYSE: SAM … read my analysis here)

Beer Stocks Background

Beer stocks aren’t my favorite stocks to watch as a trader … They move slowly over time and sector trends don’t connect stocks as much as they might in energy, industrials, or tech.

But that doesn’t mean they’re not worth watching. 

I like consumer staples that people purchase every day, week, month, and year. Beer is in that category — and popular worldwide.

Beer stocks fit into the overarching Consumer Staples Select SPDR ETF (XLP) that tracks wares like foods, beverages, and household goods. This ETF tracks items that you can buy in the grocery store.

 

This sector hasn’t performed as well as the overall market, but it’s still made some decent gains over the past few years. And it isn’t the worst bet to keep trending up.

4 Beer Stocks to Watch

The XLP may not be so hot right now, but beer stocks make up just a portion of it. So let’s check out four top beer stocks worth watching in 2024 that could offer much more upside…

Beer Stocks to Watch #1: Constellation Brands, Inc. (NYSE: STZ)

You may not have heard of Constellation Brands, but you’ve heard of its beers…

The company owns the Corona, Modelo, and Pacifico brands. It also owns a variety of wine and spirit brands, including SVEDKA.

STZ also upped its stake in Canopy Growth to 40% in 2020. Canopy produces marijuana and hemp-based products in North America and Germany.

Marijuana companies like Canopy may not pay off as an investment for a long time. There’s still a lot of political hoopla to get through before weed has a true place in the American marketplace.

But if and when that happens, companies like Constellation stand to thrive. 

It’s easy to sell beer, giving Constellation guaranteed profits every year. But that doesn’t mean its stock will grow.

Making investments in companies like Canopy Growth gives STZ the upside the market wants to see moving forward.

If Canopy ever spreads its wings and joins its customers in the sky, Constellation could make for an interesting trading play.

 

Beer Stocks to Watch #2: Compania Cervecerias Unidas S.A. (NYSE: CCU)

Compania Cervecerias Unidas owns the alcohol brand Heineken. That’s not all. It’s also the…

  • Largest brewer
  • Second-largest soft drink producer
  • Second-largest wine producer
  • Largest bottler of mineral water in Chile
  • And it operates throughout other countries in South America

Wanna talk about companies that stick around? Compania Cervecerias Unidas has been around since 1850…

This company does it all when it comes to beverage production. Its portfolio is filled with both alcoholic and non-alcoholic drinks for its customers.

 
 

Beer Stocks to Watch #3: Molson Coors Beverage Company (NYSE: TAP)

Molson Coors Beverage is the holding company of brands like Coors, Blue Moon, and Miller.

Molson Coors has looked to diversify away from traditional beer as consumers start gravitating toward higher-end craft beers and hard seltzers. Over the past three years, these moves seem to be working — this blue-chip stock is up about 100% since March of 2020.

 

Beer Stock #4: The Boston Beer Company, Inc. (NYSE: SAM)

Have you seen those annoying Samuel Adams commercials with the hardcore Boston accents? You can thank The Boston Beer Company for that.

Luckily for them, the company’s business outshines those commercials that viewers either mute or fast-forward through every time…

Some consumer staples took a sales hit during 2020 thanks to lockdowns. But Boston Beer had a fantastic year, growing revenues by 39%.

The stock had a great 2020, too, but it has collapsed since then.

Again, these beer companies are pretty much all in the same boat. Consumer demand’s changing. Some of these companies invested heavily in hard seltzer, and those sales disappointed.

Sam Adams will always sell but that’s baked into the stock’s price. To create upside, companies need growth avenues…

Boston Beer might need to turn to some other beverage, alcoholic or not, to entice the market.

 

Bottom Line

I wouldn’t turn my nose up at beer stocks entirely. A strong catalyst could do wonders for the sector…

Companies that print money are always worth watching. Whether their stocks print money is another question.

Legacy sectors are always interesting to watch. They go through ups and downs but almost always find a way forward.

Who knows where these companies will find that next growth avenue … Or if they will at all. If I can impart any wisdom to you today it would be to focus on your growth as a trader.

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What are your thoughts on beer stocks? Let me know with a comment below!