TAP - Anheuser-Busch trades higher than where it stood at the height of the Bud Light controversy

2023-12-12 13:07:09 ET

Anheuser-Busch ( BUD ) now trades higher than where it stood when the Bud Light controversy peaked in terms of negative social media mentions during the middle part of May. For the year, the beer stock has outperformed the broad staples sector with a 6.1% rally.

The U.S. volume numbers for Anheuser-Busch ( BUD ) brands improved sequentially during the last Nielsen report covering the four-week and twelve-week periods ending on December 2, but are still about 13% lower than where they stood a year ago compared to a 2% volume decline for the industry. While Bud Light has seen its YTD market share shrink all the way down to 10.2% of the U.S. market. That mark is still good enough to rank second behind Constellation Brands' ( STZ ) Modelo Especial at 10.9%, and is still higher than the YTD market share for Molson Coors' ( TAP ) Coors Light and Miller Lite. Notably, both Michelob Ultra and Busch Light have picked up market share recently to help the overall BUD cause, per the Nielsen numbers.

Investor sentiment has swung positive on BUD due largely to its strong international growth numbers and the company's increased exposure to some of the faster-growing segments of the beer market. Some analysts have also pointed to the upcoming lapping of Anheuser-Busch's ( BUD ) weak comparables in the spring as a potential catalyst. In terms of earnings, the beer giant has topped consensus EPS marks in nine of the last ten quarters, but missed on the top line in four of the last five quarters.

Anheuser-Busch InBev ( BUD ) has a consensus Buy rating with Wall Street analysts and Seeking Alpha analysts, as well as one of the top Seeking Alpha Quant Ratings in the beer sector.

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