10 Best Alcohol Stocks to Buy Now

4. Molson Coors Beverage Company (NYSE:TAP) 

Number of Hedge Fund Holders: 36

Molson Coors Beverage Company (NYSE:TAP) ranks 4th in our list of the Best Alcohol Stocks in 2024. It is a multinational beverage and brewing company that engages in the production, marketing, and sale of beer, malt beverage products, and now also spirits across multiple regions including the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

Molson Coors reported a revenue of over $2.59 billion in Q1 of 2024, an increase of 10.6% from the previous year. Net profit also increased by over 186% to reach $207.8 million. A major reason for such a massive jump in profit could be the recent boycott against Bud Light, one of Molson Coors’ largest competitors in the American market. However, analysts at Citi stated in April that gains by Molson Coors due to the Bud Light upset are coming to an end. As a result, the stock plunged by almost 10% on the 30th of April. However, the company representatives state in the Q1 earnings call transcript that the American retailers are confident in its core brands, having allocated around 13% more space for Coors Light and Miller Lite in the US during spring resets, supporting their confidence that these share shifts are structural.

The steep selloff also seems excessive considering MC reported non-GAAP earnings per share of $0.95, which beat the estimates for $0.75 per share, while revenue estimates were also beaten by $100 million. The company also increased the quarterly dividend by over 7% earlier this year, bringing it up to $1.76 per share on an annual basis. Moreover, Molson Coors Beverage Company (NYSE:TAP) announced a new $2 billion share buyback plan in late 2023 that is expected to be completed over the next 5 years. With a market cap of just over $11 billion as of the writing of this article, a $2 billion buyback is set to significantly boost the stock’s EPS.

TAP was held by 36 hedge funds in the Insider Monkey database at the end of Q1 2024, with a collective stake value of around $848.5 million.