10 Best NYSE Penny Stocks To Buy

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

Share Price as of June 27: $2.09

Number of Hedge Fund Holders: 14

Ambev S.A. (NYSE:ABEV) produces, distributes, and sells beer, draft beer, carbonated soft drinks, malt and food, other alcoholic beverages, and non-alcoholic and non-carbonated products.

Ambev S.A. (NYSE:ABEV) stands as the largest beverage company in Brazil, controlling over 60% of the beer market in the country while maintaining a strong presence across Latin America. The company’s diversified portfolio includes both alcoholic and non-alcoholic beverages, which positions it strategically to benefit from evolving consumer preferences and market opportunities. Ambev S.A.’s dominant position in the Brazilian beer market provides a solid foundation for revenue growth. The Brazil beer market is projected to grow at a CAGR of over 4.83% from 2023 to 2028, according to the Brazil Beer Market Overview, 2028 report by Bonafide Research. This growth trajectory presents significant opportunities for Ambev S.A. to expand its market share and profitability.

As mentioned in Ambev S.A.’s (NYSE:ABEV) Q1 2024 earnings call, it reported its best volume performance in history for beer in Brazil, with a 3.6% growth in beer volumes. The management mentioned that the growth outpaced the industry’s performance, which indicates market share gains. Premium and super-premium brands such as Corona, Spaten, and Original grew impressively, with Corona registering over 70% growth. The management maintains a strong focus on financial discipline and value creation and it is evident from its solid free cash flow generation. Cash flow from operating activities and free cash flow grew by approximately BRL 1.3 billion (1 BRL = US$0.18) each.

Ambev S.A. (NYSE:ABEV) was held by 14 hedge funds in the first quarter and the stakes amounted to $166.139 million. First Eagle Investment Management is the largest shareholder of the company and has a position worth $775.509 million, as of March 31.