Penny stocks in beverages don’t come more exciting than brewers. We all know the power of a specific beer brand taking off, and the craft beer market, in particular, grew exponentially in recent years.
All eyes, it seems, were on the craft beer sector, and as of March 2018, it accounted for 23.4% of total alcoholic beer sales in the US. We do really like our craft beers; however, according to Forbes, craft “growth has been slowing for a while for craft brewers as the market reaches saturation.”
The tide is turning back in favor of the beverage giants and the good old classic beer. So with that in mind, we are looking at the ABEV penny stock; a brewer with ties to one of the biggest beer brands in the world.
Penny Stocks in Beer: Ambev (NYSE:ABEV)
Brazil’s Ambev has Belgian’s Anheuser-Busch InBev as a partner. It’s a well-earned partner. The company, which produces, distributes, and sells beer and draft beer, has been in operations for 20 years. It now has a presence in over 19 countries and 32 brands of drinks under its belt. Some of those brands include Brahma, Brahva Gold, Budweiser, Bud Light, Stella Artois, Corona, and Kokanee, among others.
Ambev also dabbles in carbonated soft drinks and non-alcoholic beverages, as well as food, but beer remains its primary product line.
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It has 32 breweries and two maltarias in Brazil and also has other operations in Canada.
Penny Stock Moves
Currently selling for $4.97 and up 1.22% at the time of writing, ABEV stock has been rallying in recent weeks. But according to analysts, there’s more to come. Sell-side analysts are predicting gains of almost 23.44% for this penny stock.
Furthermore, a price target of $5.95 has been set, and since 2019 turned over, ABEV stock has shown an overall uptrend of 22.96%. With its most recent closing price, the market capitalization of this company is now sitting at $74.36 billion USD.
Estimations on this penny stock are looking fruitful but, of course, in stocks, nothing is a sure thing. If you want to invest in beer penny stocks, ABEV could bring in dividends in the not too distant future.
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