As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the beverages, alcohol, and tobacco industry, including Anheuser-Busch (NYSE: BUD) and its peers.

These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the rise of cannabis, craft beer, and vaping or the steady decline of soda and cigarettes. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players.

The 15 beverages, alcohol, and tobacco stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 0.5%.

In light of this news, share prices of the companies have held steady as they are up 2.1% on average since the latest earnings results.

Anheuser-Busch (NYSE: BUD)

Born out of a complicated web of mergers and acquisitions, Anheuser-Busch InBev (NYSE: BUD) boasts a powerhouse beer portfolio of Budweiser, Stella Artois, Corona, and local favorites around the world.

Anheuser-Busch reported revenues of $13.63 billion, down 6.3% year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EPS estimates.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $65.99.

Is now the time to buy Anheuser-Busch? Access our full analysis of the earnings results here, it’s free.

Best Q1: Zevia (NYSE: ZVIA)

With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE: ZVIA) is a better-for-you beverage company.

Zevia reported revenues of $38.02 million, down 2% year on year, outperforming analysts’ expectations by 1.7%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 39.7% since reporting. It currently trades at $2.85.

Is now the time to buy Zevia? Access our full analysis of the earnings results here, it’s free.

Slowest Q1: Celsius (NASDAQ: CELH)

With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ: CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.

Celsius reported revenues of $329.3 million, down 7.4% year on year, falling short of analysts’ expectations by 3.8%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.

Interestingly, the stock is up 11.9% since the results and currently trades at $37.99.

Read our full analysis of Celsius’s results here.

Boston Beer (NYSE: SAM)

Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE: SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.

Boston Beer reported revenues of $453.9 million, up 6.5% year on year. This print topped analysts’ expectations by 4.1%. It was a very strong quarter as it also logged an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Boston Beer achieved the biggest analyst estimates beat among its peers. The stock is flat since reporting and currently trades at $240.26.

Read our full, actionable report on Boston Beer here, it’s free.

Coca-Cola (NYSE: KO)

A pioneer and behemoth in carbonated soft drinks, Coca-Cola (NYSE: KO) is a storied beverage company best known for its flagship soda.

Coca-Cola reported revenues of $11.22 billion, flat year on year. This result surpassed analysts’ expectations by 0.6%. Aside from that, it was a satisfactory quarter as it also recorded a decent beat of analysts’ organic revenue estimates but EBITDA in line with analysts’ estimates.

The stock is down 3.7% since reporting and currently trades at $69.10.

Read our full, actionable report on Coca-Cola here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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