BUD to STZ: 5 beer stocks to look for as Russia-Ukraine crisis mounts

February 24, 2022 10:46 AM PST | By Rupam Roy
 BUD to STZ: 5 beer stocks to look for as Russia-Ukraine crisis mounts
Image source: Pixabay.com

Highlights

  • Russia and Ukraine are among the top five barley-producing countries.

  • Diageo PLC (NYSE:DEO) stock gave a return of over 19% in the past 12 months.

  • Molson Coors Beverage Company (NYSE:TAP) net sales surged over 14% in Q4, FY21.

As summer approaches, the demand for light alcoholic beverages such as beer will likely rise. But the Russia-Ukraine conflict has raised concerns over barley supplies, a key ingredient in beer production. Rising barley prices would also bump up the production costs.

Barley prices, which accounts for roughly 30% of the total retail marketing cost for alcoholic beverages, rose by over 62% YoY and about 5% QoQ in the final quarter of the previous year.

Let's explore how these five beer stocks performed amid the escalating geopolitical tensions.

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Beer stocks to explore amid Russia-Ukraine crisis

Source: Pixabay

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Diageo PLC (NYSE:DEO)

Diageo is a global alcohol beverage company based in London. It sells different categories of spirits, beer, etc.

Its shares traded at US$190.60 at 10:17 am ET on February 24, down 4.32% from their previous close. The DEO stock increased by 19.11% over the past 12 months.

It has a market cap of US$109.60 billion, a P/E ratio of 26.78, and a forward one-year P/E ratio of 25.97. Its EPS is US$7.06.

The 52-week highest and lowest stock prices were US$156.66 and US$223.14, respectively. Its trading volume was 295,971 on February 23.

In the first half of fiscal 2022 ended December 31 last year, its net sales surged 16% YoY to £7.95 billion (US$10.5 billion), while its profit attributable to the parent company’s shareholders was £1.96 billion (US$2.60 billion).

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Anheuser-Busch Inbev SA (NYSE:BUD)

Anheuser Busch is a Belgium-based brewing company that owns more than 400 beer brands. It also focuses on soft drinks production and has agreements with other companies for bottling and distribution arrangements.

The stock of the company traded at US$60.54 at 11:02 am ET on February 24, down 3.37% from its previous closing price. The BUD stock fell 3.98% over the past 12 months.

The market cap of the company is US$105.09 billion, the P/E ratio is 24.4, and the forward one-year P/E ratio is 22.22. Its EPS is US$2.48.

The stock saw the highest price of US$79.67 and the lowest price of US$54.08 in the last 52 weeks. Its share volume on February 23 was 1,813,099.

The company reported revenue of US$14.19 billion in Q4, FY21, up 11% YoY, while its profit attributable to stockholders was US$1.96 billion, or US$0.98 per share.

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Molson Coors Beverage Company (NYSE:TAP)

Molson Coors is a holding company based in Chicago, Illinois. It primarily focuses on drinks and brewing beverages and has operations in North America and Europe.

The shares of the company traded at US$48.34 at 11:09 am ET on February 24, down 4.92% from their closing price of February 23. Its stock value soared 8.08% over the past 12 months.

The firm has a market cap of US$10.41 billion, a P/E ratio of 10.37, and a forward one-year P/E ratio of 12.61. Its EPS is US$4.63.

The 52-week highest and lowest stock prices were US$61.48 and US$42.46, respectively. Its trading volume was 4,391,400 on February 23.

The company's net sales rose 14.2% YoY to US$2.61 billion in Q4, FY21, while its net income came in at US$80 million, or US$0.37 per diluted share. For fiscal 2021, the company's net sales increased by 6.5% YoY to US$10.27 billion.

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Constellation Brands, Inc. (NYSE:STZ)

Constellation Brands is an alcohol and brewery firm based in Victor, New York. It produces and sells a range of beverages, including beer, wine, and spirits, in the US, Canada, and various other regions.

The stock of the company traded at US$208.84 at 11:27 am ET on February 24, down 1.71% from its previous closing price. The STZ stock tumbled 5.11% over the past 12 months.

The market cap of the company is US$39.33 billion, and the P/E ratio is 21.06. Its EPS is US$-0.30.

The stock saw the highest price of US$258.00 and the lowest price of US$207.35 in the last 52 weeks. Its share volume on February 23 was 1,052,872.

The company reported revenue of US$2.32 billion in the third quarter of fiscal 2022, while its net income came in at US$480.8 million, or US$2.48 per diluted share.

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US-listed beer stocks

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Boston Beer Company, Inc. (NYSE:SAM)

Boston Beer Company is an alcoholic beverage firm that focuses on selling alcoholic beverages in the US and other selected international markets. It is based in Boston, Massachusetts.

The shares of the company traded at US$358.36 at 11:33 am ET on February 24, down by 2.66% from their closing price of February 23. Its stock value declined 65.95% over the past 12-months.

The firm has a market cap of US$4.42 billion, a P/E ratio of 350.59, and a forward one-year P/E ratio of 26.26. Its EPS is US$1.03.

The 52-week highest and lowest stock prices were US$1,349.98 and US$367.03, respectively. Its trading volume was 177,516 on February 23.

The company reported net revenue of US$348.1 million in Q4, FY21, while its net loss came in at US$51.8 million, or US$4.22 per diluted share. For fiscal 2021, the company's net revenue was US$2.058 billion, an increase of 18.5% YoY.

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Bottomline

Both Russia and Ukraine are among the world’s top barley producers. The Russian invasion of Ukraine might hit global barley supplies. Currently, global markets are highly volatile. Therefore, investors should apply due diligence before investing in the stock market.


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