10 Best Alcohol Stocks To Buy According to Analysts

2. Ambev S.A. (NYSE:ABEV) 

Stock Upside Potential: 71.51%

Next on our list of the Best Alcohol Stocks is Ambev S.A. (NYSE:ABEV), one of South America’s leading beverage companies that has now merged with Anheuser-Busch InBev. With popular brands such as Skol and Brahma, Ambev claims to be the largest brewer in Latin America in terms of sales volume and one of the largest beer producers in the world.

Ambev S.A. (NYSE:ABEV) has displayed strong stability, having consistently grown its revenue and net profit since 2020. A deep-pocket global giant owner like Ab InBev grants the Brazilian brewing company the resources and the distribution network to expand its footprint. Moreover, Ambev also greatly benefits from its relationship with PepsiCo to bottle, sell, and distribute its products in several Latin American countries, including Brazil.

Ambev S.A. (NYSE:ABEV) maintains a strong balance sheet, generating BRL 68 billion (around $11 billion) in free cash flow over the last five years, while also expanding ROIC and achieving positive EVA every year. The company also remains committed to its shareholders and returned over BRL 43 billion (approx. $7 billion) to them since 2020 and even recently approved a BRL 2 billion ($330 million) share buyback program, demonstrating its financial health and its disciplined approach to capital allocation. Moreover, Ambev announced a dividend of $0.0414 per share in December 2024 and boasted an annual dividend yield of 5.75% as of January 29, 2024.

To make sure it keeps up with the evolving consumer trends, Ambev S.A. (NYSE:ABEV) has strengthened its zero-alcohol portfolio with Corona Cero and Budweiser Zero, while it also launched gluten-free, low-calorie propositions such as Stella Pure Gold and Michelob Ultra.

A total of 19 hedge funds tracked by IM held shares of Ambev S.A. (NYSE:ABEV) at the end of Q3 2024, with a total stake value of $522.4 million, a noteworthy 165% increase from the previous quarter.