10 Best Beverage Stocks to Buy According to Analysts

6. The Boston Beer Company, Inc. (NYSE:SAM)

Average Share Price Upside Potential as of February 20: 33.74%

The Boston Beer Company, Inc. (NYSE:SAM) sells alcoholic beverages across the United States and selected international markets. The company offers beers, flavored malt beverages, hard cider, hard seltzer, and hard tea. It is one of the best beverage stocks to buy according to analysts, with an average share price upside potential of over 33%.

The company is following an aggressive diversification strategy amid changing consumer preferences. Last year, it launched Samuel Adams American Light, a refreshing light craft lager for everyday drinking occasions. The beverage has an ABV of 4.2% and is designed to be an easy-drinking beer without compromising on flavor.

The Boston Beer Company, Inc. (NYSE:SAM) has also forayed into cannabis beverages. It recently unveiled Emerald Hour, a line of non-alcoholic cannabis cocktails. The drink will begin with two cocktail styles: Cranberry-Citrus and Ginger-Lime. Emerald Hour, which is made with cannabis extracts and cocktail ingredients offers a great alternative for consumers looking for a stronger and booze-free happy hour.

The company is also optimizing its supply chain. As part of these efforts, on December 20, The Boston Beer Company, Inc. (NYSE:SAM) amended its production agreement with Rauch North America Inc. to better align its future capacity requirements. While the move is expected to cost $26 million in pre-tax contract settlement expenses and impact diluted EPS for Q4 FY24, it will help in increasing production facility and secure more favorable termination rights.

According to Insider Monkey’s database for Q4 2024, 29 hedge funds held a stake in The Boston Beer Company, Inc. (NYSE:SAM), up from 28 at the end of the third quarter. Savoir Faire Capital Management was the largest investor in the company, with holdings valued at approximately $4.2 million, as of December 31, 2024.