10 Best Quality Penny Stocks To Buy

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

Stock Price as of September 3: $2.27

Number of Hedge Fund Holders: 18

Ambev S.A. (NYSE:ABEV), a prominent beverage company based in Brazil, plays a key role in the Latin American market and is part of the global brewing giant Anheuser-Busch InBev. With operations spanning 18 countries across the Americas, it offers a broad product range that includes well-known beer brands such as Skol, Brahma, and Budweiser, alongside popular soft drinks like Guaraná Antarctica and Soda Antarctica.

In Q2, 18 hedge funds held stakes in Ambev S.A. (NYSE:ABEV), with positions worth $197.147 million. As of the second quarter, First Eagle Investment Management is the most significant shareholder in the company and has a position worth $635.790 million. It is among our best quality penny stocks to buy.

In the third quarter, Ambev S.A. (NYSE:ABEV) reported a 6.1% increase in revenues compared to the previous year, reaching BRL 20 billion (1 BRL = US$ 0.18 as of September 3). The company also posted an EPS of R$0.15. The revenue growth shows strong performance across its various segments, particularly in Brazil.

The beer segment in Brazil exceeded expectations with a 7% year-over-year revenue increase, driven by a 3% rise in sales volumes. Similarly, the Central America and Caribbean (CAC) division saw a 3% growth in volume, which is a sign of the company’s strong presence in these regions.

The company’s premium and super-premium brands, including Corona, Spaten, and Original, have experienced impressive volume growth in the low teens. The Budweiser family also contributed to high-teens volume growth in the core plus segment. Additionally, core brands like Brahma and Antarctica showed resilience with a modest volume increase in the low single digits. The consistent performance across different product categories shows the company’s ability to cater to diverse consumer preferences.

The company is also making strides in digital innovation. Its BEES Marketplace, a B2B e-commerce platform, has continued to grow, with gross merchandise value increasing by 32% year-over-year. This platform is designed to support small and medium-sized retailers, enhancing their ability to compete in the market.

Meanwhile, Zé Delivery, its beverage delivery service, has expanded its coverage and generated over 16 million orders, marking a 13% increase from the previous quarter.