Bear Of The Day: AnheuserBusch InBev (BUD)

AnheuserBusch InBev (BUD) is a Zacks Rank #5 (Strong Sell) despite beating the number in the most recent earnings release.  If we are in fact headed into a recession, then people are likely to have .  Let’s look at why this stock is a Zacks Rank #5 (Strong Sell) and in this Bear of the Day article.DescriptionAnheuser-Busch InBev, alias AB InBev, is a global brewing company with more than 500 iconic brands. The company’s leading position in majority of its markets and a strong global footprint lends the advantage of economies of scale and growing its multi-country brands globally. Its strategy is based on efforts to develop a portfolio of brands that cater to extensive consumer needs within the market, in terms of price range, flavor profiles, and brand meaning.Earnings HistoryWhen I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.In the case of BUD, I see two straight beats which preceeded two straight misses of the  Zacks Consensus Estimate.   This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.Earnings EstimatesThe Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower.  For BUD I see annual estimates moving lower.The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is mixed for those numbers.The current year 2022 consensus number has dropped from $3.16 to $3.07.The next year has dropped from $3.66 to $3.41 over the last 60 days.Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).It should be noted that a majority of stocks in the Zacks universe are seeing positive earnings estimate revisions.  That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).ChartAnheuserBusch InBev SANV Price, Consensus and EPS Surprise AnheuserBusch InBev SANV price-consensus-eps-surprise-chart | AnheuserBusch InBev SANV QuoteJust Released: Zacks Top 10 Stocks for 2022In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AnheuserBusch InBev SANV (BUD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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