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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Anheuser-Busch Inbev (BUD)
Anheuser-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.
BUD sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Beverages - Alcohol industry's P/E of 15.9X, shares of Anheuser-Busch Inbev are trading at a forward P/E of 17.5X. BUD also has a PEG Ratio of 1.9, a Price/Cash Flow ratio of 9.3X, and a Price/Sales ratio of 2X.
A company's earnings performance is important for value investors as well. For fiscal 2025, two analysts revised their earnings estimate higher in the last 60 days for BUD, while the Zacks Consensus Estimate has increased $0.06 to $3.71 per share. BUD also holds an average earnings surprise of 11.7%.
Investors should take the time to consider BUD for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).