Below are the three companies in the Brewers industry with the highest gross margins. Gross margin represents the amount of revenue retained after deducting direct costs associated with producing the goods or services which led to that revenue. The higher the gross margin as a percentage of revenue, the better.
Anheuser-Busch InBev (NYSE:BUD) is highest with a gross margin of 57.9%. Anheuser-Busch InBev NV brews beer. The Company manufactures ale, lager, stout, and bitter beer. Anheuser-Busch InBev owns brands that are both nationally and internationally prominent. The Company has production plants in Europe, the Americas, and Asia.
Anheuser-Busch InBev (NYSE:BUD) has potential upside of 24.1% based on a current price of $51.76 and analysts’ consensus price target of $64.21. The stock should find initial resistance at its 50-day moving average (MA) of $53.37 and further resistance at its 200-day MA of $56.69.
Following is Boston Beer (NYSE:SAM) with a gross margin of 56.8%. Yesterday, Boston Beer traded 195,000 shares vs. average volume of 156,000 shares per day. The stock outperformed the Dow (0.8% to the Dow’s -0.2%) and outperformed the S&P 500 (0.8% to the S&P’s -0.8%) during yesterday’s trading.
Finishing up the top three is Molson Coors Brewing (NYSE:TAP), with a gross margin of 43.9%.
Molson Coors Brewing share prices have moved between a 52-week high of $51.11 and a 52-week low of $37.99 and closed yesterday at 8% above that low price at $41.01 per share. Over the past week, the 200-day moving average (MA) has gone down 0.6% while the 50-day MA has declined 1.4%.