8 Best Beer Stocks to Buy Now

3. Molson Coors Beverage Company (NYSE:TAP)

Number of Hedge Fund Holders: 34

Coming in at number 3 in our list of the Best Alcohol Stocks in 2024 is the Molson Coors Beverage Company (NYSE:TAP), a multinational beverage and brewing giant with a diverse portfolio that includes a variety of beer brands, spirits, and non-alcoholic beverages spread across the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

The company produces a wide selection of beers in multiple price categories, going from core brands like Coors Light and Miller Light, premium brands like Madri and Blue Moon, right down to economy brands like Miller Higher Life, Keystone, and Icehouse. In terms of volume percentage growth, its Coors Banquet brand is the fastest-growing top 15 beer brand in the US this year so far.

The gains made by Molson Coors Beverage Company (NYSE:TAP) due to the Bud Light upset seem to be coming to an end, as the company revealed a decrease in net sales and volumes in Q3 2024, with consolidated net sales revenue down by 7.8% and US financial volume dropping by 17.9%. However, it must also be kept in mind that MC has consistently increased its revenue over the last 4 years, from $9.65 billion in 2020 to $11.7 billion in 2023, while the Bud Light controversy only happened last year.

Knowing the risks it faces in the current beer market landscape, Molson Coors Beverage Company (NYSE:TAP) is actively investing in its spirits portfolio and even acquired the cult favorite high-end Bourbon and rye whiskey brand, Blue Run Spirits, last year.

BofA Securities recently upgraded Molson Coors Beverage Company (NYSE:TAP) from Neutral to Buy and increased the price target to $70, up from the previous $57. Molson Coors also offers a fair dividend yield and has been active in share buybacks, resulting in a shareholder yield of approximately 6% if maintained. While TAP may not be a high-growth stock, it positions itself as a defensive investment that could perform relatively well during economic downturns.