10 Best Liquor Stocks To Buy According to Short Sellers

3. Ambev S.A. (NYSE:ABEV)

Short % of Shares Outstanding: 0.3%

Ambev S.A. (NYSE:ABEV), formally Companhia de Bebidas das Américas, is a Brazilian brewing company that has now merged with Anheuser-Busch InBev. With popular brands such as Skol and Brahma etc, Ambev claims to be the largest brewer in Latin America in terms of sales volumes and one of the largest beer producers in the world.

With a deep-pocket owner like Ab InBev, an extensive distribution network, and a diverse product portfolio, Ambev S.A. (NYSE:ABEV) has been resilient in both local and international markets. However, the company continues to face challenges from various macroeconomic factors including higher costs of energy, raw materials, packaging, logistics, and labor, which are putting pressure on its brewing operations across various countries. That said, the company is still winning in the premium and super premium beer segment and leading in the core and core plus segments, while also diversifying into beyond beer and balanced lifestyle brands.

Ambev S.A. (NYSE:ABEV) also remains financially strong, 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 has also returned over BRL 43 billion (approx. $7 billion) to its shareholders since 2020 and even recently approved a BRL 2 billion ($330 million) share buyback program, demonstrating its disciplined approach to capital allocation. Ambev also announced a dividend of $0.0414 per share in December 2024.

While maintaining a robust balance sheet and strong business fundamentals, Ambev S.A. (NYSE:ABEV) also remains committed to sustainability and has added 15 carbon-neutral plants to its footprint as part of its decarbonization plan. The company has also reduced its water usage per liter of beverage produced by over 7%.

Ambev S.A. (NYSE:ABEV) seems to be popular among big money managers as 19 hedge funds tracked by IM held shares of the company at the end of Q3 2024, with a total stake value of $522.4 million, a noteworthy 165% increase from the previous quarter.