5 Best Brewery and Distillery Stocks To Buy Now

3. Molson Coors Beverage Company (NYSE:TAP)

Number of Hedge Fund Holders: 29

Molson Coors Beverage Company (NYSE:TAP) is a multinational beverage and brewing company that engages in the production, marketing, and sale of beer and malt beverage products across multiple regions including the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers flavored malt products including hard seltzers, craft, and ready-to-drink beverages. Molson Coors Beverage Company (NYSE:TAP) is one of the best alcohol stocks to watch. 

On May 2, Molson Coors Beverage Company (NYSE:TAP) reported a Q1 non-GAAP EPS of $0.54 and a revenue of $2.35 billion, outperforming Wall Street estimates by $0.28 and $120 million, respectively. 

Bill Kirk, an analyst at Roth MKM, increased the target price for Molson Coors Beverage Company (NYSE:TAP) on May 3 from $62 to $75 and maintained a Buy rating on the company’s shares. The analyst highlighted Molson Coors Beverage Company (NYSE:TAP)’s strong Q1 earnings, noting that its volume performance, when adjusted for an additional selling day, exceeded that of previous quarters. Additionally, the company’s reaffirmed guidance does not take into account the market share gains experienced by Miller Lite and Coors Light at the expense of Bud Light, according to the research note provided to investors by the analyst.

According to Insider Monkey’s fourth quarter database, 29 hedge funds were bullish on Molson Coors Beverage Company (NYSE:TAP), compared to 34 funds in the prior quarter. Cliff Asness’ AQR Capital Management is the largest stakeholder of the company, with nearly 2 million shares worth $99 million. 

Here is what Argosy Investors has to say about Molson Coors Beverage Company (NYSE:TAP) in its Q2 2021 investor letter:

“TAP (+52% from August 2020 purchase to sale) was never intended to be a core position. I expected a couple of years of deleveraging and perhaps some excitement around the hard seltzer category, but the stock price increased faster than I expected. I have not fully exited these positions as I rarely do all in one trade, but hopefully this gives some perspective into my thinking on selling so quickly.”