10 Best Long-term Penny Stocks to Buy Now

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

Share Price as of July 18: $2.10

Number of Hedge Fund Holders: 14

Ambev S.A. (NYSE:ABEV) headquartered in Brazil, is a subsidiary of Interbrew International B.V. and produces, distributes, and sells alcoholic and non-alcoholic beverages. It is a prominent beverage company and has established a strong presence across Latin American and Caribbean markets. The company’s portfolio includes well-known beer brands such as Brahma, Antarctica, Brahva, Budweiser, and more. Its non-alcoholic beverage portfolio showcases various brands, including Gatorade, H2OH!, and Pepsi Black, among others.

Ambev (NYSE:ABEV) maintains a diverse portfolio of alcoholic and non-alcoholic beverages, strategically positioned to benefit from changing consumer preferences and new market opportunities as mentioned in our previous articles on 10 Best NYSE Penny Stocks To Buy. The company holds the top position in Brazil’s beverage industry, commanding more than 60% of the beer market and maintaining a robust presence throughout Latin America. This leadership in the Brazilian beer market serves as a strong platform for revenue expansion and growth. According to the Brazil Beer Market Overview, 2028 report by Bonafide Research, the Brazilian beer market is expected to grow at a compound annual growth rate (CAGR) exceeding 4.83% from 2023 to 2028. The growth forecast presents significant opportunities for Ambev S.A. to enhance its market share and profitability.

In Q1, key brands like Corona, Spaten, Brahma, and Budweiser have achieved remarkable success, with overall brand health indicators reaching unprecedented levels. The company has shown significant growth in the premium and super-premium segments, driven prominently by Corona’s expansion of over 70%. In the premium brand segment, Ambev has expanded its market share for five consecutive quarters. The Budweiser family saw a 55% increase in volume in the first quarter, reaching an all-time high.

Additionally, core brands such as Antarctica and Brahma have demonstrated robust growth rates slightly exceeding industry averages, as highlighted in the Q1 2024 earnings call. Ambev’s (NYSE:ABEV) balanced growth strategy, focusing on both core products and expanding premium and core plus segments, has been achieved alongside stable trade inventory levels, reflecting effective supply chain management.

CEO Jean Jereissati has emphasized the company’s successful innovation efforts. New products like Stella Pure Gold and Budweiser Zero have collectively grown by over 40% in Q1, compared to the previous quarter, indicating strong consumer adoption and market responsiveness. Ambev’s (NYSE:ABEV) is committed to driving growth through continuous product innovation and adaptation to meet evolving consumer preferences. The stock is one of the best long-term penny stocks to buy now.

Ambev (NYSE:ABEV) was part of 14 hedge funds’ portfolios in the first quarter with a total stake value of $166.139 million. First Eagle Investment Management is the biggest shareholder in the company and has a position worth $775.509 million as of Q1.