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Molson Coors Beverage Company TAP exhibited strength on the bourses, rising 14.5% in the past six months. The stock has outperformed the Zacks Beverages - Alcohol industry and the broader Consumer Staples sector, which declined 18.1% and 8%, respectively, in the same time frame. Meanwhile, the S&P 500 index grew 11.1% in the six-month time.
The company is strictly focused on portfolio premiumization, in both Beer and Beyond Beer, to boost its product portfolio. TAP has also been making impressive innovations.
TAP’s Strategies Aid Rally
Molson Coors is one of the leading brewers, having a strong portfolio of well-established brands. In the United States, the company’s core power brands, including Coors Light, Miller Lite and Coors Banquet, have been performing well. In the fourth quarter of 2024, the brands retained above 80% of their combined volume share gains on a two-year stack basis, which shows an improvement from the second and third quarters.
The company has been investing in building the brand's awareness, its national scale and consumer base. In Canada, Coors Light has been the number one light beer in the industry. The Molson family of brands benefited from volume share for the fourth quarter and the year. This has helped the company to achieve 23 straight months of higher share growth. Carling is a top lager in the United Kingdom with robust brand equity.
TAP’s premiumization success in EMEA and APAC has been mostly driven by Madrí. The brand is surpassing expectations in Bulgaria as well. The successful re-launch of Caraiman in Romania has also been bolstering results. Molson Coors is focused on changing the shape of its global portfolio, given the success of premiumization in EMEA and APAC in Canada.
Molson Coors has strategic plans for Peroni and expanding in the non-alcoholic category. The consolidation of ZOA will contribute to the top line. The company has obtained exclusive rights through a license agreement to make, market and sell Fever-Tree products in the United States. Such strengths will boost sales and increase profitability.
TAP Price Performance
Image Source: Zacks Investment Research
TAP’s Earnings Estimate Revisions
Given the tailwinds surrounding the stock, the Zacks Consensus Estimate for 2025 and 2026 has been northbound. In the past seven days, the consensus estimate for earnings per share (EPS) has risen 3.6% to $6.35 for 2025 and 6.3% to $6.77 for 2026. This implies year-over-year earnings growth of 6.5% and 6.7%, respectively, for both years.
TAP Stock’s Attractive Valuation
Molson Coors’ stock is trading at a discount valuation relative to the industry. Going by the price/earnings ratio, the stock is currently trading at 9.84 on a forward 12-month basis, lower than 14.16 for the industry. Also, the stock is trading lower than its five-year high of 15.57.