Whiskey has always held a special place in the American culture and history. Barring a few hiccups, it has always been in vogue with spirit enthusiasts and casual drinkers all over the world. Cheerfully the tradition continues, as evidenced from the strength in the U.S. Alcohol market that has been on an expansion spree due to the rising demand and improving consumer spending.
In fact, Americans are availing jobs in the craft-booze industry, consequently aiding stability in the labor market. Among the host of American spirts, craft beer seems to be the cynosure of all eyes at the moment with its fervent fan base and convenient size production. Per BMI Research, global spirits sales are expected to increase by 4.3% in 2018.Notably, the Beverages-Alcoholindustry lies at the top 38% (96 of 256) of all Zacks industries.
With that said, here are two alcohol stocks that are scoring high on the growing spirits and industry trends. The Boston Beer Company, Inc. SAMand Constellation Brands, Inc. STZhit 52-week high on Apr 17 driven by their robust strategies and stellar past performance.
Let’s explore the stocks individually.
Three-Point Growth Plan Aiding SAM
Shares of Boston Beer scaled a 52-week high of $223.50 yesterday, closing the session lower at $222.05. Further, this Zacks Rank #3 (Hold) stock surged a whopping 57.4% in a year, cruising well ahead of its industry’s 12% upside. Management remains committed to the three-point growth plan focused on the revival of its Samuel Adams and Angry Orchard brands, cost-saving initiatives and long-term innovation. Additionally, the leading craft brewer in the United States is making strides to address challenges through improved cost structure and re-investing these savings for brand development.