Golden, Colorado-based Molson Coors Beverage Company (TAP) manufactures, markets, and sells beer and other malt beverage products under various brand names. With a market cap of $12.3 billion, Molson’s operations span the Americas, Europe, the Middle East, Africa, and the Indo-Pacific.
Companies worth $10 billion or more are generally described as "large-cap stocks," Molson fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the brewery industry. Its portfolio includes brands like Aspall Cider, Blue Moon, Coors Original, Hop Valley brands, Leinenkugel's, and more.
Molson touched its 52-week high of $69.18 on Apr. 9, 2024, and is currently trading 12% below that peak. Meanwhile, Molson has gained 5.3% over the past three months, notably outperforming the Dow Jones Industrial Average’s ($DOWI) 2.3% dip during the same time frame.
Molson’s performance has remained mixed over the longer time frame. Molson’s stock gained 7.1% over the past six months and declined 9.5% over the past 52 weeks, compared to Dow’s marginal 74 bps dip over the past six months and 5.5% gains over the past year.
To confirm the recent upturn, Molson has traded consistently above its 50-day and 200-day moving averages since mid-February.
Molson’s stock prices soared 9.5% after the release of its better-than-expected Q4 results on Feb. 13. The company observed a notable 6.4% year-over-year drop in volumes along with currency headwinds, which was partially mitigated by 4.5% improvement in pricing and sales mix. This led to a 2% year-over-year decline in net sales to $2.7 billion, however, this figure surpassed the Street’s expectations by approximately 1%. Meanwhile, due to a favorable pricing mix, Molson’s gross margins expanded 91 bps compared to the year-ago quarter to 37.9% and its gross profits inched up marginally to $1.04 billion. Moreover, the company’s adjusted EPS surged 9.2% year-over-year to $1.30, exceeding the consensus estimates by a notable 15%, boosting investor confidence.
Furthermore, Molson has significantly outperformed its peer Constellation Brands, Inc.’s (STZ) 29% decline over the past six months and a 32.5% drop over the past year.
Among the 20 analysts covering the TAP stock, the consensus rating is a “Moderate Buy.” Its mean price target of $65.25 suggests a 7.2% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
