The Zacks Analyst Blog Highlights Keurig Dr Pepper, Boston Beer, Anheuser-Busch, Monster Beverage and Fomento Economico Mexicano

For Immediate ReleaseChicago, IL – February 25, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Keurig Dr Pepper Inc. KDP, The Boston Beer Company Inc. SAM, Anheuser-Busch InBev SA/NV BUD, Monster Beverage Corp. MNST and Fomento Economico Mexicano S.A.B. de C.V. FMX.Here are highlights from Monday’s Analyst Blog:Are These 4 Beverage Stocks Poised for Earnings Beats?With the fourth-quarter 2024 earnings season in full swing, we are expected to witness earnings releases from many companies in the beverage space. The beverage industry, which comprises the alcohol and soft drink categories, falls under the broader Zacks Consumer Staples sector. Notably, the sector now ranks among the bottom 38% of the overall Zacks classified sectors.With nearly 80% of companies having reported their fourth-quarter 2024 earnings this reporting cycle, we will focus on the earnings scorecard of the Consumer Staples sector. Per the latest Zacks Earnings Trends, nearly 80.6% of Consumer Staples companies have reported earnings so far, constituting 92.6% of the total market capitalization. Earnings for the sector have improved 3.6% year over year, on a 0.8% increase in revenues. Of the companies that have already reported, 48% beat on both earnings and revenues.Per the report, the Consumer Staples sector’s December-quarter earnings are expected to grow 2.8% year over year, with revenues rising 0.9%. Margins for the sector are also likely to edge up 0.2% for the fourth quarter of 2024.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Factors Likely to Impact Beverage Stocks’ Earnings ResultsThe beverage industry is expected to have experienced notable gains from immense strength in brands, pricing actions, and significant innovations and product launches. The expansion initiatives of the companies in the beverage industry, including foray into variants like energy and sports hydration along with effective in-market execution and growth in carbonated soft drinks, are likely to have acted as positives.Soft drink companies have been further focused on launching products for health-conscious consumers, with a shift toward beverages with natural ingredients and lower sugar content as well as prebiotic soda and functional beverages. Also, the plant-based and functional beverage categories have been gaining traction, as consumers seek alternatives to traditional soft drinks.Within the alcohol space, we note that players have been benefiting from higher demand for premium and high-end products, along with a shift toward craft spirits with low or no alcohol content.In addition, beverage companies are expected to have reaped the benefits of digital and technology-driven investments. Companies in the industry have been ramping up investments to build robust digital capabilities, evolving to execute marketing and boosting fulfillment and distribution capabilities. These are likely to have bolstered the companies’ performances in the upcoming releases.However, players in the beverage industry are not immune to commodity cost inflation and other operating pressures. In addition, higher advertising and marketing investments, and increased operating costs are likely to have contributed to reduced margins and pulled down profits of the beverage companies. Supply-chain bottlenecks, elevated transportation costs, strict regulatory compliances, evolving consumer patterns on health-related concerns and global market complexities including adverse currency translations are likely to have added up to other challenges.All in all, we have mixed views about the earnings outcomes of companies in the beverage industry. That said, let us take a look at five beverage stocks, which are scheduled to report results this week. Our research shows that for stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), the chance of a positive earnings surprise is high. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.5 Beverage Stocks to WatchKeurig Dr Pepper Inc. is likely to report a year-over-year increase in revenues and earnings per share (EPS) when it reports fourth-quarter 2024 results on Feb. 25, before market open. KDP’s consumer-focused innovation model, brand activity and strong commercial execution are likely to drive results. Strength in its U.S. Refreshment Beverages segment is also a tailwind. The Zacks Consensus Estimate for this segment’s sales is pegged at $2.4 billion, indicating a significant 9.1% year-over-year increase.For fourth-quarter revenues, the Zacks Consensus Estimate is pegged at $4.03 billion, indicating a 4.2% increase from the prior-year quarter’s figure. The consensus estimate for quarterly earnings has moved down a penny in the past 30 days to 57 cents per share. This figure calls for a 3.6% increase from the prior-year period. KDP has a trailing four-quarter earnings surprise of 3.4%, on average.Keurig Dr Pepper, Inc price-eps-surprise | Keurig Dr Pepper, Inc QuoteHowever, the company has been struggling with a sluggish U.S. Coffee segment for a while now. This beverage and coffee company is unlikely to deliver an earnings beat this time around. KDP has an Earnings ESP of -0.93% and a Zacks Rank of 3 at present. (Read more: KDP Poised to Report Q4 Earnings: Is a Surprise in the Cards?)You can see the complete list of today’s Zacks #1 Rank stocks here.The Boston Beer Company Inc. is expected to report revenue growth when it reports fourth-quarter 2024 results on Feb. 25, after market close. The Zacks Consensus Estimate for loss per share is pegged at $1.18, indicating an improvement from a loss per share of $1.49 reported in the year-ago quarter. The consensus mark has widened from a loss of $1.15 per share pegged 30 days ago. For quarterly revenues, the consensus estimate is pegged at $389.6 million, indicating a nearly 1% drop from the year-ago quarter’s number. SAM has a trailing four-quarter earnings surprise of 154.6%, on average.The company is expected to have faced continued challenges owing to the ongoing slowdown in the hard seltzer category and weakening demand for its Truly brand. The declining trend in hard seltzers suggests pressure on depletions, particularly as consumer preferences shift toward other beyond-beer alternatives and premium light beers. Additionally, macroeconomic challenges, including inflationary pressures, are likely to have acted as headwinds.The Boston Beer Company, Inc. price-eps-surprise | The Boston Beer Company, Inc. QuoteOur proven model does not conclusively predict an earnings beat for Boston Beer this time around. The company has a Zacks Rank of 3 at present and an Earnings ESP of -24.19%. (Read More: Boston Beer Gears Up to Report Q4 Earnings: Here's What to Expect?)Anheuser-Busch InBev SA/NV, also known as AB InBev, is slated to release fourth-quarter 2024 earnings on Feb. 26, before the opening bell. The Zacks Consensus Estimate for the company’s quarterly revenues is pegged at $14.4 billion, indicating a 0.2% drop from the year-ago quarter’s number. For fourth-quarter earnings, the consensus mark has been stable in the past 30 days at 72 cents a share, indicating a 12.2% decrease from the prior-year figure. BUD has a trailing four-quarter average earnings surprise of 8.2%.Impacts of tough macroeconomic conditions, including a soft consumer backdrop in China and Argentina along with currency and interest rate fluctuations, are likely to hurt BUD’s quarterly results. In addition, commodity cost inflation and increased supply-chain expenses are expected to have led to higher costs. We expect the cost of sales to rise 5.7% year over year in the fourth quarter.Anheuser-Busch InBev SA/NV price-eps-surprise | Anheuser-Busch InBev SA/NV QuoteAB InBev currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. Read More: AB InBev's Q4 Earnings on Deck: What Surprise Awaits Investors?)Monster Beverage Corp. is expected to report fourth-quarter 2024 results on Feb. 27, after the closing bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.79 billion, indicating growth of 3.6% year over year. The consensus estimate for earnings of 40 cents per share, which has remained unchanged in the past 30 days, implies a rise of 5.3% from the year-ago quarter’s actual. MNST has delivered an average negative earnings surprise of 5.2% in the trailing four quarters.The company’s growth initiatives, coupled with strength in its energy drink brands and successful innovations, are anticipated to have bolstered its performance. Product innovation plays a significant role in its success. MNST has continued to benefit from its pricing actions across various regions to negate the impacts of rising commodity costs and inflation. The Zacks Consensus Estimate for sales at Monster Energy Drinks segment is pegged at $1.7 billion, indicating a 6.3% year-over-year increase.Monster Beverage Corporation price-eps-surprise | Monster Beverage Corporation QuoteOur proven model does not conclusively predict an earnings beat for Monster Beverage this time around. The company has an Earnings ESP of -0.35% and a Zacks Rank #4 (Sell). (Read More: Monster Beverage Pre-Q4 Earnings Review: Is a Surprise in the Cards?)Fomento Economico Mexicano S.A.B. de C.V., alias FEMSA, is smoothly progressing on its Forward Strategy, which is focused on the long-term value creation of its core businesses, retail, Coca-Cola FEMSA and Digital@FEMSA. FEMSA’s retail business provides substantial opportunities for growth, buoyed by improvements in the Proximity division. The company has also been gaining pace in the digital space through its tech and innovation unit, Digital@FEMSA, which aims to build a value-added digital and financial ecosystem. This unit also focuses on enhancing and leveraging the strategic assets of FEMSA’s core business verticals.Fomento Economico Mexicano S.A.B. de C.V. price-eps-surprise | Fomento Economico Mexicano S.A.B. de C.V. QuoteHowever, this Zacks Rank #4 (Sell) company has been witnessing a soft consumer environment, particularly in the Mexico market, its largest growth driver, for a while. Persistence of these trends is expected to have hurt the revenues of the Proximity Americas division.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Zacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fomento Economico Mexicano S.A.B. de C.V. (FMX): Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD): Free Stock Analysis Report Monster Beverage Corporation (MNST): Free Stock Analysis Report The Boston Beer Company, Inc. (SAM): Free Stock Analysis Report Keurig Dr Pepper, Inc (KDP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks