SAM - Should You Buy Boston Beer Stock on the Dip?
2024-03-28 05:35:00 ET
There aren't many successful companies trading near 52-week lows right now, but Boston Beer (NYSE: SAM) is a notable exception. The alcoholic beverage specialist is down 7% in the past full year compared to a 31% gain in the S&P 500 .
The slump is at least partly tied to Boston Beer's operating results. Demand dropped for its products in 2023, just as it has for most competitors across the consumer beverage industry. Yet Boston Beer also had some good news to report in its last quarterly earnings update. Let's look at whether the stock could make an attractive purchase for patient investors from here.
Sales were down a discouraging 12% in the most recent quarter, management revealed in a late-February press release. But things aren't nearly as bad as they might initially seem. Boston Beer's depletions, a measure of core consumer demand, declined just 1%. Shipments to its retailing partners were similarly steady, down only 4%.
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Should You Buy Boston Beer Stock on the Dip?