Boston Beer (SAM) Stock Sinks As Market Gains: What You Should Know

Boston Beer (SAM) closed the most recent trading day at $363.80, moving -1.89% from the previous trading session. This change lagged the S&P 500's 3.25% gain on the day. Meanwhile, the Dow gained 3.84%, and the Nasdaq, a tech-heavy index, added 3.06%.

Coming into today, shares of the brewer had gained 2.31% in the past month. In that same time, the Consumer Staples sector lost 10.2%, while the S&P 500 lost 9.87%.

SAM will be looking to display strength as it nears its next earnings release. On that day, SAM is projected to report earnings of $1.96 per share, which would represent year-over-year growth of 4.81%. Meanwhile, our latest consensus estimate is calling for revenue of $357.34 million, up 42% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.53 per share and revenue of $1.55 billion, which would represent changes of +25.74% and +24.05%, respectively, from the prior year.

Any recent changes to analyst estimates for SAM should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.05% higher. SAM is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that SAM has a Forward P/E ratio of 32.17 right now. Its industry sports an average Forward P/E of 20.4, so we one might conclude that SAM is trading at a premium comparatively.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 109, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow SAM in the coming trading sessions, be sure to utilize Zacks.com.