The Procter & Gamble Company (PG), Anheuser-Busch InBev NV (ADR) (BUD): Consumer Goods Companies’ Top 3 Players

On the other hand, according to Bloomberg, U.S. beer sales have been growing at a tepid pace, 2.4% year-over-year during the four weeks ended May 19, versus its 3.3% year-over-year growth during the past 52 weeks. In particular, Anheuser-Busch InBev NV (ADR) (NYSE:BUD)’s flagship brands have been losing dollar market share in this last four-week period. Bud Light (the No. 1 U.S. brand) fell 80 bps and Budweiser slipped by 40 bps. This is bad news considering the biggest EBITDA generation is in North America (44%).

Concentrating on the relative valuation figures, both trailing and leading P/E show ABI is trading somewhat expensive at 21 times trailing earnings versus the industry average of 18.4. I don’t dislike this company, but I would wait for the price to adjust (if it ever does) in order to buy it.

To summarize, the three companies analyzed are interesting ones to watch closely. I would start increasing position in British American Tobacco for suitable portfolios, and I would pay attention to The Procter & Gamble Company (NYSE:PG)’s market movements to take the chance to buy. I would not go long on Anheuser-Busch InBev NV (ADR) (NYSE:BUD) right now, but I would hold the stock if I already had it in my portfolio.

Vanina Egea has no position in any stocks mentioned. The Motley Fool recommends Procter & Gamble. Vanina is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Consumer Goods Companies: Top 3 Players originally appeared on Fool.com and is written by Vanina Egea.

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