Molson Coors Beverage Company (TAP), headquartered in Golden, Colorado, manufactures, markets, and sells beer and other malt beverage products under various brands. With a market cap of $12.1 billion, the company produces many beloved and iconic beer brands including Coors Light, Miller Lite, Madri, Staropramen, Miller High Life and Keystone, and more.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and TAP fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the beverages - brewers industry. TAP’s emphasis on innovation, operational efficiency, and consistent introduction to new products cater to evolving consumer preferences.
Despite its notable strength, TAP slipped 15.4% from its 52-week high of $69.18, achieved on Apr. 9. Over the past three months, TAP stock rose 5.4%, underperforming the Nasdaq Composite’s ($NASX) 10.8% gains during the same time frame.
In the longer term, TAP shares rose 15.1% over the past six months but dipped 4.7% over the past 52 weeks, underperforming NASX’s six-month gains of 14.5% and 33.6% returns over the last year.
To confirm the bullish trend, the stock has been trading above its 200-day moving average since early November. Despite the positive price momentum, TAP is trading below its 50-day moving average recently.
TAP has underperformed due to a slowdown in the U.S. beer market leading to a decline in net sales. Additionally, inflationary pressures, driving up the raw material and labor costs, and reduced volumes from contract brewing have also impacted the margins.
On Nov. 7, TAP shares closed up marginally after reporting its Q3 results. The company’s total revenues of $3 billion, fell short of Wall Street forecasts of $3.1 billion. Its adjusted EPS was $1.80, surpassing analyst estimates of $1.65.
TAP’s rival, Compañía Cervecerías Unidas S.A. (CCU) shares have lagged behind the stock, with a 2.6% gain over the past six months and 9.2% losses over the past 52 weeks.
Wall Street analysts are cautious on TAP’s prospects. The stock has a consensus “Hold” rating from the 19 analysts covering it, and the mean price target of $62.81 suggests a potential upside of 7.2% from current price levels.
