Golden, Colorado-based Molson Coors Beverage Company (TAP) manufactures, markets, and sells beer and other malt beverage products under various brands. Valued at $9.4 billion by market cap, TAP produces many beloved and iconic beer brands, including Coors Light, Miller Lite, Madri, Staropramen, Miller High Life and Keystone, and more.
Companies worth $2 billion or more are generally described as “mid-cap stocks,” and TAP perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the beverages - brewers industry. TAP’s emphasis on innovation, operational efficiency, and the consistent introduction of new products aligns with evolving consumer preferences.
Despite its notable strength, TAP slipped 26.3% from its 52-week high of $64.66, achieved on Mar. 10. Over the past three months, TAP stock declined marginally, underperforming the S&P 500 Index’s ($SPX) 3% gains during the same time frame.
In the longer term, TAP shares fell 5.8% over the past six months and dipped 21.9% over the past 52 weeks, underperforming SPX’s six-month gains of 14.1% and 12.7% returns over the last year.
To confirm the bearish trend, TAP has been trading below its 200-day moving average since early May. However, the stock is trading above its 50-day moving average since early November, with slight fluctuations.
On Nov. 4, TAP shares closed up more than 1% after reporting its Q3 results. Its adjusted EPS of $1.67 missed Wall Street expectations of $1.72. The company’s revenue was $2.97 billion, falling short of Wall Street forecasts of $3.02 billion.
In the competitive arena of beverages - brewers, Compañía Cervecerías Unidas S.A. (CCU) has taken the lead over TAP, showing resilience with a marginal uptick on a six-month basis and 11% gains over the past 52 weeks.
Wall Street analysts are cautious on TAP’s prospects. The stock has a consensus “Hold” rating from the 20 analysts covering it, and the mean price target of $50.30 suggests a potential upside of 5.5% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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