BUD

Anheuser-Busch InBev (BUD) is highlighted as a momentum stock worth watching, with a #3 (Hold) Zacks Rank and B-rated VGM and Momentum Style Scores. The stock has gained 6.3% over the past four weeks, with two analysts revising earnings estimates higher for fiscal 2026. The company's strong global brewing portfolio and market position support its growth prospects.

Anheuser-Busch InBev (BUD) is experiencing significant momentum in its Beyond Beer category, with U.S. portfolio revenue growth in the mid-70% range during Q2 2026. The company's Cutwater brand achieved triple-digit revenue growth and became the No. 1 market share gainer in the U.S. spirits industry. BUD is leveraging its NUTRL portfolio and BeatBox acquisition to expand its ready-to-drink (RTD) spirits presence, supported by strong distribution networks and production capacity.

Boston Beer (SAM) is expected to report Q3 2026 earnings growth of 1.2% to $4.30 per share despite a 2.6% revenue decline. Weakness in key brands like Twisted Tea and Truly, along with rising costs and tariff pressures, are headwinds.

However, strong performance from Sun Cruiser and strategic pricing initiatives may support profitability. The stock trades at a premium valuation and has declined 27.1% over six months.

The beverage-alcohol industry is positioned for growth through innovation in ready-to-drink cocktails, low/no-alcohol offerings, and Gen Z engagement strategies. However, tariffs on imported materials and persistent softness in alcohol consumption pose margin pressures. Leading players like Anheuser-Busch InBev, Diageo, Constellation Brands, Brown-Forman, and Molson Coors are well-positioned to capitalize on premiumization and portfolio diversification trends.

The Zacks Beverages – Alcohol industry is positioned in the top 43% of industries with a positive earnings outlook. Key growth drivers include ready-to-drink cocktails, low/no-alcohol beverages, and Gen Z engagement through experiential marketing.

However, tariffs on imported materials and persistent softness in alcohol consumption pose margin pressures. Leading companies like Diageo, AB InBev, Constellation Brands, Brown-Forman, and Molson Coors are leveraging premiumization and innovation to navigate challenges.

Boston Beer Company is innovating beyond traditional beer by launching Sinless Vodka Cocktails (30+ states) and LYTT Electric Coolers (5+ states). While early reception is positive, management expects meaningful contributions only by 2027. The company's peers—AB InBev, Diageo, and Brown-Forman—are also leveraging innovation in ready-to-drink formats to drive growth.

Constellation Brands is expected to report 3.6% revenue growth but flat EPS in Q2 FY2027. While the beer business benefits from premiumization and Mexico capacity investments, the company faces headwinds from weak Wine & Spirits sales, uneven consumer demand, and inflation-driven cost pressures. The stock trades at an attractive valuation but carries a negative earnings surprise indicator.