Molson Coors Beverage Company ( NYSE: TAP ) printed a new 52-week high of $58.31 in mid-morning trading on Tuesday as the beer stock defies the downward pressure with the market.
Shares of TAP are up 22.6% on a year-to-date basis to easily outperform broad market averages, consumer staples ETFs and other alcohol stocks like Constellation Brands ( STZ ) -3.9% YTD, Ambev ( ABEV ) -8.2% YTD, Anheuser-Busch InBev ( BUD ) -9.5% YTD, Heineken ( OTCQX:HEINY ) -18.5% YTD, Diageo ( DEO ) -22.5% YTD, and Boston Beer ( SAM ) -39.1% YTD.
Why is Molson outperforming the sector in 2022 to such a high degree?
A higher percentage of sales in the U.S. is a benefit in the current backdrop, Cowen analyst Vivien Azer also said there are signs that the U.S. turnaround for the beer giant is starting to shine through as TAP exits the 12-month overhang from deprioritizing economy offerings.
"We're seeing success in the premium lights segment for Coors Light and Miller Lite (which have been a challenge to grow simultaneously). Coupled with growth in the hard seltzer (despite category declines), we think the company is reasonably well positioned to hit its guidance for mid-single-digit revenue growth this year, driven by the U.S."
Even after the share price rally, the dividend yield on TAP is still at 2.57%. Short interest on TAP is lower than at the beginning of the year at 5.55% of total float.
The Seeking Alpha Quant Rating on TAP is still flashing Buy, with strong grades for valuation, profitability, and momentum factoring in.
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Molson Coors is the beer stock with the most momentum