Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Anheuser-Busch InBev (ENXTBR:ABI) has drawn fresh attention after a strong year-to-date and one-year share performance. This has prompted investors to reassess what the current €68.66 price implies for this global brewer.

The recent move in Anheuser-Busch InBev's share price, with a 5.83% 7 day share price return on top of a 26.21% year to date gain and a 35.29% 1 year total shareholder return, points to momentum that has been building rather than fading.

See how Anheuser-Busch InBev's momentum compares with other established consumer giants by checking our curated list of 222 resilient stocks with low risk scores.

The share price has raced ahead while analyst targets and intrinsic estimates still point to a discount. Is the market being too cautious on Anheuser-Busch InBev, or already bracing for something the models miss?

Most Popular Narrative: 23% Undervalued

Against the current share price of €68.66, the most followed valuation story around Anheuser-Busch InBev points to a fair value near €89.45. This narrative frames the recent rally as only a partial catch up rather than the end of the opportunity.

ABI is transitioning into a premiumized portfolio, a more efficient operating system, a deleveraged balance sheet. In other words, ABI is becoming a cash flow machine with improving quality.

See why 16 investors see Anheuser-Busch InBev as 23% undervalued.

Result: Fair Value of €89.45 (UNDERVALUED)

Still, the Anheuser-Busch InBev story can be upset if premium beer demand stalls, or if debt and integration choices weigh more heavily on cash generation than expected.

Find out about the key risks to this Anheuser-Busch InBev narrative.

Next Steps

If the mixed sentiment around Anheuser-Busch InBev leaves you on the fence, move quickly and test the numbers yourself. Weigh both sides of the story through the 5 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Anheuser-Busch InBev?

If you are not ready to commit fresh capital to Anheuser-Busch InBev, cast the net wider and line up a watchlist of your next potential moves.

Target resilient compounding potential by scanning a list of solid balance sheet and fundamentals (204 results) that helps you focus on businesses built to handle tougher conditions. Hunt for mispriced quality and use the 618 high quality undiscovered gems to surface under-the-radar opportunities before they attract broader attention. Lock in potential cash flow today by reviewing a 223 dividend fortresses that highlights income ideas with yields that stand out on a simple comparison.

Story Continues

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ABI.BR.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Anheuser-Busch InBev has enjoyed a solid multi year run, and the current share price puts the spotlight squarely on whether that performance is matched by its earnings power. For anyone following the brewer today, the live question is how much of its profit profile is already reflected in the valuation.

Over the past 5 years the stock has returned 47.7%, which makes it important to ask whether underlying earnings support that kind of share price progress. The business generates cash from a portfolio of established beer and beverage brands, which can support earnings quality if pricing power and cost control hold up over time. Your read on Anheuser-Busch InBev is one view; the desks covering it have another. See what analysts think Anheuser-Busch InBev's shares could be worth.

The issue now is whether Anheuser-Busch InBev's current market price is justified by the earnings it produces today and is expected to deliver over time.

If you want to stress test this same earnings question beyond Anheuser-Busch InBev, it can help to compare it with 178 high quality undervalued stocks.

Is Anheuser-Busch InBev a Bargain on Earnings?

The P/E ratio suits Anheuser-Busch InBev because earnings remain the key yardstick for a mature global brewer. On this metric, the shares trade on about 16.2x earnings, which is close to the Beverage industry average of roughly 16.6x. Against a broad peer set on nearer 25.4x, the gap is wider and hints that investors pay a lower headline multiple for this group of brands than for many other listed drinks companies.

The fair P/E that would be expected for Anheuser-Busch InBev, based on its own mix of growth prospects, profitability and risk, comes out higher than where the stock trades today. That points to the shares being undervalued on this earnings yardstick, provided the current profit base proves durable and cash generation stays supportive of the equity story. This kind of discount can reflect anything from concerns about regional exposure to questions over long term brand strength, so the key question for you is whether those worries outweigh the apparent valuation gap. Explore the numbers behind Anheuser-Busch InBev's P/E valuation.ENXTBR:ABI P/E Ratio as at Oct 2026

The Anheuser-Busch InBev Narrative: What Would Justify Today's Price?

Simply Wall St Narratives pick up where this valuation gap for Anheuser-Busch InBev leaves off by spelling out which paths for growth, margins and earnings would need to play out for the share price to look meaningfully higher or lower than it does today on the screen. Each narrative links its number to a specific view on how Anheuser-Busch InBev's profitability profile and key risks could evolve, which gives you something concrete to revisit as fresh results and new information come through.

Story Continues

One of the top community narratives on Anheuser-Busch InBev: 23% undervalued

"It takes only three ingredients to brew beer, water, barley, and hops...

Discover why this Narrative puts Anheuser-Busch InBev at 23% undervalued.

One more Anheuser-Busch InBev check belongs beside the price tag

Before you lean too heavily on valuation and earnings multiples, it helps to know that Simply Wall St's broader review has highlighted specific risk checks for Anheuser-Busch InBev that deserve a closer look. Take a closer look at 1 warning sign before settling on a valuation.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ABI.BR.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

For Immediate Release

Chicago, IL – October 8, 2026 – Today, Zacks Equity as Anheuser-Busch InBev BUD, Diageo Plc DEO, Constellation Brands Inc. STZ, Brown-Forman Corp. BF.B and Molson Coors Beverage Co. TAP

Industry: Alcohol

Link: https://www.zacks.com/

commentary/3001844/5-alcohol-

stocks-to-watch-as-innovation-

fuels-industry-growth

Players in the Zacks Beverages – Alcohol industry are creating growth avenues through ready-to-drink cocktails, low- and no-alcohol offerings, and broader portfolio innovation. These products address the demand for convenience, variety, moderation and affordability while helping companies capture new drinking occasions. Gen Z also remains an important long-term opportunity, with younger legal-drinking-age consumers favoring discovery, social experiences, perceived value and distinctive brands. This supports investment in experiential marketing, occasion-based products and targeted innovation.

However, tariffs could pressure U.S. beverage alcohol companies by raising costs for imported packaging, materials and beverages, particularly for businesses with global supply chains. Companies may need to absorb these costs or raise prices, potentially hurting margins or demand. At the same time, persistent softness in alcohol consumption, cost-of-living pressures, trading down and moderation trends could weigh on volumes, pricing power and earnings growth, especially for brands with weaker differentiation or limited pricing flexibility.

Leading players such asAnheuser-Busch InBev, Diageo Plc, Constellation Brands Inc., Brown-Forman Corp. and Molson Coors Beverage Co. look well-placed to capitalize on innovation trends.

About the Industry

The Zacks Beverages – Alcohol industry mainly comprises producers, importers, exporters, marketers and sellers of alcoholic beverages like beer, craft beer, ciders, wine, rum, whiskey, liqueurs, vodka, tequila, champagnes, brandy, amaretto, ready-to-drink (RTD) cocktails and malt. Some industry players also produce and sell non-alcoholic beverages like carbonated soft drinks, sparkling waters, bottled water, energy drinks, powdered and natural juices, and RTD teas.

The companies sell products through wholesalers and retailers like supermarkets, warehouse clubs, grocery stores, convenience stores, package stores, drug stores and other retail outlets. The industry participants also sell beer directly to consumers in cans and bottles at restaurants, pubs, bars and liquor stores. Some brewers operate brewpubs or tasting rooms at breweries, offering consumers the freshest beer.

Story Continues

What's Shaping the Future of Beverages - Alcohol Industry

Innovation Beyond Traditional Alcohol Creates Growth Runway:Despite softer industry volumes, beverage companies are unlocking growth opportunities through innovation. Demand for ready-to-drink cocktails continues to outpace most traditional alcohol categories as consumers seek convenience, flavor variety and affordability.

At the same time, low- and no-alcohol beverages are evolving into a meaningful profit pool rather than a niche offering, attracting consumers who want moderation without abandoning social drinking. Leading brewers and spirits companies are expanding product portfolios to address these changing occasions, allowing them to capture incremental demand instead of relying solely on traditional alcohol consumption. Successful innovation could offset category pressures and strengthen long-term market positioning.

Gen Z Engagement & Experience-Led Drinking Offer Opportunities:Younger legal-drinking-age consumers remain an important long-term opportunity for the U.S. beverage alcohol industry. Rather than abandoning alcohol altogether, Gen Z consumers are becoming more selective about when, where and what they drink, placing greater emphasis on discovery, social experiences and perceived value.

Recent data indicates that Gen Z participation in alcohol has remained relatively stable, while this group also shows strong engagement with on-premise channels. This creates opportunities for beverage companies to drive demand through distinctive brands, experiential marketing, occasion-based offerings and targeted innovation that resonates with evolving consumer preferences.

Tariffs Could Squeeze Margins: Tariffs are emerging as a meaningful overhang for U.S. beverage alcohol companies with global sourcing and international supply chains. Higher duties on imported glass bottles, aluminum, packaging materials and select beverage imports can raise input costs, forcing producers to either absorb the increase or pass it on to consumers. While premium brands have greater pricing flexibility, mass-market labels remain more vulnerable to demand erosion from higher shelf prices. Investors should watch for margin pressure, procurement disruptions and slower earnings growth, particularly among companies with significant import exposure or limited domestic sourcing capabilities.

Beyond tariffs, the biggest challenge is persistent softness in overall alcohol consumption. Cost-of-living pressures are prompting consumers to drink less, trade down or become more selective about purchases, while moderation trends are also weighing on demand. This environment could continue to pressure volumes, pricing power and margins, particularly for brands lacking strong value propositions or differentiated premium offerings.

Zacks Industry Rank Indicates Bright Prospects

The Zacks Beverages – Alcohol industry is a 17-stock group within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #107, placing it at the top 43% of more than 250 Zacks industries.

The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry's positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group's earnings growth potential.

Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry's recent stock-market performance and valuation picture.

Industry Underperforms S&P 500

The Zacks Beverages – Alcohol industry has outperformed the broader sector and underperformed the S&P 500 in the past year.

The stocks in the industry have collectively returned 12.5% in the past year, whereas the Zacks Consumer Staples sector has risen 2.2%. Meanwhile, the Zacks S&P 500 composite has rallied 16.1%.

Beverages - Alcohol Industry's Valuation

Based on the forward 12-month price-to-earnings (P/E) ratio, commonly used to value Consumer Staples stocks, the industry is currently trading at 14.22X compared with the S&P 500's 19.85X and the sector's 16.17X.

Over the last five years, the industry traded as high as 24.03X, as low as 13.77X and at the median of 17.87X.

5 Alcohol Beverages Stocks to Keep a Close Eye On

One stock in the Zacks Beverages – Alcohol space currently sports a Zacks Rank #1 (Strong Buy), but none of the stocks carry a Zacks Rank #2 (Buy). We have selected four stocks with a Zacks Rank #3 (Hold) to watch from the same industry. You can see the complete list of today's Zacks #1 Rank stocks here.

Let us have a look at the companies.

Diageo:The stock of this London-based leading beverage company has declined 11.4% in the past year. DEO operates in approximately 180 countries, and is involved in producing, distilling, brewing, bottling, packaging, and distributing spirits, wine and beer. The company continues to place innovation and consumer moderation at the center of its long-term growth strategy, addressing evolving consumption patterns, and diversifying its portfolio. Innovation remains a key driver, with strong momentum across tequila, whisky, beer and RTD formats.

Equally important is Diageo's push into moderation, wherein it has established clear leadership in non-alcoholic spirits. The company is refining its $2-billion productivity program to drive efficiency across the business while ensuring long-term sustainable growth. A key focus is balancing cost savings with strategic reinvestment, particularly in marketing and brand activation. The Zacks Consensus Estimate for Diageo's fiscal 2027 EPS has moved up 3.4% in the past 30 days. The consensus estimate for fiscal 2027 earnings suggests growth of 2.1% from the year-ago period's reported figure. The company currently flaunts a Zacks Rank #1.

Anheuser-Busch InBev: Also known as AB InBev, this is a global brewing leader with a portfolio of iconic brands spanning diverse geographies. Its leading positions across key markets and expansive global footprint provide meaningful scale advantages, enabling efficient operations and the ability to grow multi-country brands worldwide. The company continues to benefit from resilient consumer demand for its core brands, supported by strong business momentum, driven by disciplined execution, sustained brand investment and an accelerated digital transformation agenda. Premiumization remains a central growth lever, as consumers increasingly trade up within the beer category.

Beyond core beer, AB InBev is steadily expanding its Beyond Beer portfolio, encompassing ready-to-drink offerings, such as canned wines and cocktails, along with hard seltzers, ciders and flavored malt beverages. This diversification strategy is enhancing relevance across occasions and consumer segments, while providing an incremental growth runway and supporting top-line momentum. The Zacks Consensus Estimate for AB InBev's 2026 sales and earnings suggests growth of 8.6% and 17.4% from the year-ago period's reported figures. The consensus mark for the company's 2026 earnings has moved up by a penny in the past seven days. The Zacks Rank #3 stock has rallied 27% in the past year.

Constellation Brands: The Victor, NY-based third-largest beer company and a leading, high-end wine company in the United States continues to benefit from a sharp focus on brand building and a steady cadence of innovation. The company's premiumization strategy remains a key growth driver, led by the sustained strength of the Modelo and Corona brand families, and continued traction across its Power Brands portfolio. Its beer business is benefiting from premium and above-premium trends, supported by growth in traditional beer and adjacent categories, such as flavored beer, seltzers, RTD spirits and flavored malt beverages.

STZ is actively investing to extend the momentum of its Power Brands, aligning innovation with evolving consumer preferences and delivering successful product launches. Meanwhile, the company's digital momentum continues to build through platforms such as Instacart, Drizly and retailer-owned channels, reflecting consumers' growing preference for convenience-driven purchasing. The Zacks Consensus Estimate for STZ's fiscal 2027 earnings per share has moved down 0.3% in the past 30 days. The consensus estimate for fiscal 2027 earnings suggests a decline of 0.1% from the year-ago period's reported figure. The Zacks Rank #3 stock has lost 19% in the past year.

Brown-Forman:Based in Louisville, KY, this is a global spirits company that manufactures, distills, bottles, imports, exports, markets and sells a broad portfolio of premium alcoholic beverages. The company's growth strategy is anchored in premiumization, with a clear focus on high-quality, premium and super-premium spirits that support brand equity and margin resilience. The portfolio has been streamlined around core power brands such as Jack Daniel's and Woodford Reserve, complemented by successful additions like the Jack Daniel's and Coca-Cola RTD, and the integration of super-premium labels Gin Mare and Diplomático.

Emerging markets continue to provide a strong growth offset, driven by rising middle-class demand and momentum across the Jack Daniel's family. Disciplined pricing, innovation, distribution evolution and tighter cost-control underpin long-term value creation despite near-term pressures. The Zacks Consensus Estimate for BF.B's fiscal 2027 sales and earnings suggests growth of 0.5% and 9.2%, respectively, from the year-ago period's reported figures. The consensus mark for the Zacks Rank #3 company's fiscal 2026 earnings has been unchanged in the past 30 days. BF.B has declined 5.2% in the past year.

Molson Coors:The stock of this Chicago, IL-based leading beverage company has declined 19.1% in the past year. TAP is on track with its revitalization plan, focused on achieving sustainable top-line growth by streamlining its organization and reinvesting resources into its brands and capabilities. Investments, partnerships and product launches, which are part of its revitalization plan, have been aiding the company.

Molson Coors has been committed to increasing its market share through innovation and premiumization. Intending to accelerate portfolio premiumization, TAP has been aggressively growing its above-premium portfolio in the past few years. The Zacks Consensus Estimate for Molson Coors' 2026 EPS has been unchanged in the past 30 days. The consensus estimate for the Zacks Rank #3 company's 2026 sales and earnings suggests declines of 0.7% and 11.3%, respectively, from the year-ago period's reported figures.

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View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Players in the Zacks Beverages – Alcohol industry are creating growth avenues through ready-to-drink cocktails, low- and no-alcohol offerings, and broader portfolio innovation. These products address the demand for convenience, variety, moderation and affordability while helping companies capture new drinking occasions. Gen Z also remains an important long-term opportunity, with younger legal-drinking-age consumers favoring discovery, social experiences, perceived value and distinctive brands. This supports investment in experiential marketing, occasion-based products and targeted innovation.

However, tariffs could pressure U.S. beverage alcohol companies by raising costs for imported packaging, materials and beverages, particularly for businesses with global supply chains. Companies may need to absorb these costs or raise prices, potentially hurting margins or demand. At the same time, persistent softness in alcohol consumption, cost-of-living pressures, trading down and moderation trends could weigh on volumes, pricing power and earnings growth, especially for brands with weaker differentiation or limited pricing flexibility.

Leading players such as Anheuser-Busch InBev BUD, Diageo Plc DEO, Constellation Brands Inc. STZ, Brown-Forman Corporation BF.B and Molson Coors Beverage Company TAP look well-placed to capitalize on innovation trends.

About the Industry

The Zacks Beverages – Alcohol industry mainly comprises producers, importers, exporters, marketers and sellers of alcoholic beverages like beer, craft beer, ciders, wine, rum, whiskey, liqueurs, vodka, tequila, champagnes, brandy, amaretto, ready-to-drink (RTD) cocktails and malt. Some industry players also produce and sell non-alcoholic beverages like carbonated soft drinks, sparkling waters, bottled water, energy drinks, powdered and natural juices, and RTD teas. The companies sell products through wholesalers and retailers like supermarkets, warehouse clubs, grocery stores, convenience stores, package stores, drug stores and other retail outlets. The industry participants also sell beer directly to consumers in cans and bottles at restaurants, pubs, bars and liquor stores. Some brewers operate brewpubs or tasting rooms at breweries, offering consumers the freshest beer.

What's Shaping the Future of Beverages - Alcohol Industry

Innovation Beyond Traditional Alcohol Creates Growth Runway: Despite softer industry volumes, beverage companies are unlocking growth opportunities through innovation. Demand for ready-to-drink cocktails continues to outpace most traditional alcohol categories as consumers seek convenience, flavor variety and affordability. At the same time, low- and no-alcohol beverages are evolving into a meaningful profit pool rather than a niche offering, attracting consumers who want moderation without abandoning social drinking. Leading brewers and spirits companies are expanding product portfolios to address these changing occasions, allowing them to capture incremental demand instead of relying solely on traditional alcohol consumption. Successful innovation could offset category pressures and strengthen long-term market positioning.

Gen Z Engagement & Experience-Led Drinking Offer Opportunities: Younger legal-drinking-age consumers remain an important long-term opportunity for the U.S. beverage alcohol industry. Rather than abandoning alcohol altogether, Gen Z consumers are becoming more selective about when, where and what they drink, placing greater emphasis on discovery, social experiences and perceived value. Recent data indicates that Gen Z participation in alcohol has remained relatively stable, while this group also shows strong engagement with on-premise channels. This creates opportunities for beverage companies to drive demand through distinctive brands, experiential marketing, occasion-based offerings and targeted innovation that resonates with evolving consumer preferences.

Tariffs Could Squeeze Margins: Tariffs are emerging as a meaningful overhang for U.S. beverage alcohol companies with global sourcing and international supply chains. Higher duties on imported glass bottles, aluminum, packaging materials and select beverage imports can raise input costs, forcing producers to either absorb the increase or pass it on to consumers. While premium brands have greater pricing flexibility, mass-market labels remain more vulnerable to demand erosion from higher shelf prices. Investors should watch for margin pressure, procurement disruptions and slower earnings growth, particularly among companies with significant import exposure or limited domestic sourcing capabilities.

Beyond tariffs, the biggest challenge is persistent softness in overall alcohol consumption. Cost-of-living pressures are prompting consumers to drink less, trade down or become more selective about purchases, while moderation trends are also weighing on demand. This environment could continue to pressure volumes, pricing power and margins, particularly for brands lacking strong value propositions or differentiated premium offerings.

Story Continues

Zacks Industry Rank Indicates Bright Prospects

The Zacks Beverages – Alcohol industry is a 17-stock group within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #107, placing it at the top 43% of more than 250 Zacks industries.

The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry's positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group's earnings growth potential.

Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry's recent stock-market performance and valuation picture.

Industry Underperforms S&P 500

The Zacks Beverages – Alcohol industry has outperformed the broader sector and underperformed the S&P 500 in the past year.

The stocks in the industry have collectively returned 12.5% in the past year, whereas the Zacks Consumer Staples sector has risen 2.2%. Meanwhile, the Zacks S&P 500 composite has rallied 16.1%.

1-Year Price Performance

Beverages - Alcohol Industry's Valuation

Based on the forward 12-month price-to-earnings (P/E) ratio, commonly used to value Consumer Staples stocks, the industry is currently trading at 14.22X compared with the S&P 500's 19.85X and the sector's 16.17X.

Over the last five years, the industry traded as high as 24.03X, as low as 13.77X and at the median of 17.87X, as the chart below shows.

Price-to-Earnings Ratio (Past 5 Years)

5 Alcohol Beverages Stocks to Keep a Close Eye on

One stock in the Zacks Beverages – Alcohol space currently sports a Zacks Rank #1 (Strong Buy), but none of the stocks carry a Zacks Rank #2 (Buy). We have selected four stocks with a Zacks Rank #3 (Hold) to watch from the same industry. You can see the complete list of today's Zacks #1 Rank stocks here.

Let us have a look at the companies.

Diageo: The stock of this London-based leading beverage company has declined 11.4% in the past year. DEO operates in approximately 180 countries, and is involved in producing, distilling, brewing, bottling, packaging, and distributing spirits, wine and beer. The company continues to place innovation and consumer moderation at the center of its long-term growth strategy, addressing evolving consumption patterns, and diversifying its portfolio. Innovation remains a key driver, with strong momentum across tequila, whisky, beer and RTD formats.

Equally important is Diageo's push into moderation, wherein it has established clear leadership in non-alcoholic spirits. The company is refining its $2-billion productivity program to drive efficiency across the business while ensuring long-term sustainable growth. A key focus is balancing cost savings with strategic reinvestment, particularly in marketing and brand activation. The Zacks Consensus Estimate for Diageo's fiscal 2027 EPS has moved up 3.4% in the past 30 days. The consensus estimate for fiscal 2027 earnings suggests growth of 2.1% from the year-ago period's reported figure. The company currently flaunts a Zacks Rank #1.

Price & Consensus: DEO

Anheuser-Busch InBev: Also known as AB InBev, this is a global brewing leader with a portfolio of iconic brands spanning diverse geographies. Its leading positions across key markets and expansive global footprint provide meaningful scale advantages, enabling efficient operations and the ability to grow multi-country brands worldwide. The company continues to benefit from resilient consumer demand for its core brands, supported by strong business momentum, driven by disciplined execution, sustained brand investment and an accelerated digital transformation agenda. Premiumization remains a central growth lever, as consumers increasingly trade up within the beer category.

Beyond core beer, AB InBev is steadily expanding its Beyond Beer portfolio, encompassing ready-to-drink offerings, such as canned wines and cocktails, along with hard seltzers, ciders and flavored malt beverages. This diversification strategy is enhancing relevance across occasions and consumer segments, while providing an incremental growth runway and supporting top-line momentum. The Zacks Consensus Estimate for AB InBev's 2026 sales and earnings suggests growth of 8.6% and 17.4% from the year-ago period's reported figures. The consensus mark for the company's 2026 earnings has moved up by a penny in the past seven days. The Zacks Rank #3 stock has rallied 27% in the past year.

Price & Consensus: BUD

Constellation Brands: The Victor, NY-based third-largest beer company and a leading, high-end wine company in the United States continues to benefit from a sharp focus on brand building and a steady cadence of innovation. The company's premiumization strategy remains a key growth driver, led by the sustained strength of the Modelo and Corona brand families, and continued traction across its Power Brands portfolio. Its beer business is benefiting from premium and above-premium trends, supported by growth in traditional beer and adjacent categories, such as flavored beer, seltzers, RTD spirits and flavored malt beverages.

STZ is actively investing to extend the momentum of its Power Brands, aligning innovation with evolving consumer preferences and delivering successful product launches. Meanwhile, the company's digital momentum continues to build through platforms such as Instacart, Drizly and retailer-owned channels, reflecting consumers' growing preference for convenience-driven purchasing. The Zacks Consensus Estimate for STZ's fiscal 2027 earnings per share has moved down 0.3% in the past 30 days. The consensus estimate for fiscal 2027 earnings suggests a decline of 0.1% from the year-ago period's reported figure. The Zacks Rank #3 stock has lost 19% in the past year.

Price & Consensus: STZ

Brown-Forman: Based in Louisville, KY, this is a global spirits company that manufactures, distills, bottles, imports, exports, markets and sells a broad portfolio of premium alcoholic beverages. The company's growth strategy is anchored in premiumization, with a clear focus on high-quality, premium and super-premium spirits that support brand equity and margin resilience. The portfolio has been streamlined around core power brands such as Jack Daniel's and Woodford Reserve, complemented by successful additions like the Jack Daniel's and Coca-Cola RTD, and the integration of super-premium labels Gin Mare and Diplomático.

Emerging markets continue to provide a strong growth offset, driven by rising middle-class demand and momentum across the Jack Daniel's family. Disciplined pricing, innovation, distribution evolution and tighter cost-control underpin long-term value creation despite near-term pressures. The Zacks Consensus Estimate for BF.B's fiscal 2027 sales and earnings suggests growth of 0.5% and 9.2%, respectively, from the year-ago period's reported figures. The consensus mark for the Zacks Rank #3 company's fiscal 2026 earnings has been unchanged in the past 30 days. BF.B has declined 5.2% in the past year.

Price & Consensus: BF.B

Molson Coors: The stock of this Chicago, IL-based leading beverage company has declined 19.1% in the past year. TAP is on track with its revitalization plan, focused on achieving sustainable top-line growth by streamlining its organization and reinvesting resources into its brands and capabilities. Investments, partnerships and product launches, which are part of its revitalization plan, have been aiding the company.

Molson Coors has been committed to increasing its market share through innovation and premiumization. Intending to accelerate portfolio premiumization, TAP has been aggressively growing its above-premium portfolio in the past few years. The Zacks Consensus Estimate for Molson Coors' 2026 EPS has been unchanged in the past 30 days. The consensus estimate for the Zacks Rank #3 company's 2026 sales and earnings suggests declines of 0.7% and 11.3%, respectively, from the year-ago period's reported figures.

Price & Consensus: TAP

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The Boston Beer Company, Inc. SAM is stepping up innovation as it looks to tap faster-growing areas beyond traditional beer. Management continues to prioritize high-growth, margin-accretive opportunities that complement its core portfolio. Its Sinless Vodka Cocktails have launched in more than 30 states, offering a liquor-based cocktail with zero sugar, zero carbs and 100 calories per can. Boston Beer has also introduced LYTT Electric Coolers in more than five states. LYTT is a 15% ABV malt-based offering available in six flavors in a distinctive resealable 6.8-ounce single-serve package.

Early reception appears encouraging, although both brands remain in the development stage. Management said that wholesalers, retailers and drinkers have responded positively so far, but neither Sinless nor LYTT is expected to contribute meaningfully to 2026 volumes.

Still, the two innovations are expected to provide some shipment support in the back half of the year. Sinless has shown enough initial traction to support its rollout across roughly 30 states, though management plans to wait for more evidence before expanding further.

LYTT may require an even longer runway. Management described it as a "hand sell" product that needs specialized merchandising and cooler placement, rather than conventional chain distribution. Retailer support has been helped by attractive profitability, with LYTT's margins described as two to three times those of even higher-end beer. Boston Beer expects a more reliable read on both launches only by early 2027. That makes execution, distribution and repeat consumer demand key factors to watch as SAM broadens its innovation pipeline.

What Role Does Innovation Play for SAM's Peers?

Innovation remains a key growth lever across the alcoholic beverage industry, with Anheuser-Busch InBev BUD, Diageo Plc DEO and Brown-Forman Corporation BF.B using new products, brand extensions and evolving beverage formats to address changing consumer preferences and support long-term growth.

Innovation is becoming an important growth lever for Anheuser-Busch InBev, alias AB InBev, particularly beyond traditional beer. In second-quarter 2026, Beyond Beer revenues jumped 44%, led by the global expansion of Flying Fish and triple-digit growth from U.S. canned-cocktail brand Cutwater, which was the company's second-largest contributor to overall revenue growth. BUD is also widening its ready-to-drink exposure through BeatBox, helping expand its addressable market globally.

Innovation is an important growth lever for Diageo, especially in ready-to-drink offerings that extend consumption beyond traditional beer and spirits formats. In fiscal 2026, Diageo Beer Company grew organically by around 4%, led partly by Smirnoff RTD, while South Africa delivered strong double-digit growth, driven by RTDs. The company is also using flavor and format innovation in markets such as India, supported by savings that can fund selective innovation investments.

Innovation remains a key growth driver for Brown-Forman, particularly through its expanding RTD portfolio. New Mix posted strong double-digit growth in Mexico and is gaining traction in the United States, while el Jimador Spritz and Jack Daniel's Tennessee Blackberry & Lemonade are extending the company into new cocktail occasions. Management views RTDs as an important platform for consumer recruitment and future growth.

Story Continues

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Anheuser-Busch InBev SA/NV BUD, alias AB InBev, is expanding its zero-alcohol beer portfolio as consumer preferences shift toward balanced choices and more mindful drinking occasions. The company's no-alcohol beer revenues increased 27% in the second quarter of 2026, highlighting growing demand for alternatives that offer the taste and experience of beer with lower alcohol content. The company's Balanced Choices portfolio, which includes low-carb, low-calorie, sugar-free, gluten-free and no-alcohol offerings, delivered 13% revenue growth during the quarter, with no-alcohol beer leading performance.

AB InBev's strategy focuses on providing consumers with more options across occasions while strengthening its leadership in emerging beverage segments. The company noted that its no-alcohol beer portfolio gained share and reinforced its leadership position in the category by value, according to Nielsen. In the United States, AB InBev remained the leader in no-alcohol beer, with its portfolio gaining share and revenue growing in the mid-thirties, led by Michelob Ultra Zero.

The momentum is also visible across international markets. In Mexico, AB InBev strengthened its position in no-alcohol beer, with its portfolio growing volume at a high-thirties rate, supported by Modelo Cero and the launch of Michelob Ultra Zero. In Brazil, the company highlighted Balanced Choices as a key growth area, with its no-alcohol beer portfolio volumes growing in the low-thirties.

As health-conscious consumers increasingly seek moderation without compromising on brand experience, AB InBev's zero-alcohol innovations could help broaden its consumer base. By combining established brands with evolving product choices, the company aims to capture new occasions and strengthen long-term category growth.

BUD's Price Performance, Valuation & Estimates

AB InBev's shares have rallied 24.8% in the past year compared with the industry's 12.3% growth.Zacks Investment Research

Image Source: Zacks Investment Research

From a valuation standpoint, BUD trades at a forward price-to-earnings ratio of 15.53X compared with the industry's average of 14.18X.Zacks Investment Research

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The Zacks Consensus Estimate for BUD's 2026 and 2027 earnings per share (EPS) indicates year-over-year growth of 17.7% and 12.3%, respectively. The company's EPS estimates for 2026 and 2027 have moved up by a penny in the past seven days. AB InBev currently carries a Zacks Rank #3 (Hold).Zacks Investment Research

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Stocks to Consider in the Consumer Staples Space

Story Continues

The Chefs' Warehouse, Inc. CHEF, which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Chefs' Warehouse's current financial-year sales and EPS indicates growth of 10.7% and 33.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.

Diageo Plc DEO is a global beverage alcohol company operating in approximately 180 countries. The company currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for Diageo's current financial-year EPS is expected to rise 2.1% from the year-ago reported figure.

Lamb Weston Holdings, Inc. LW is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and also provides a range of appetizers. The company currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for Lamb Weston's current financial-year EPS indicates growth of 1.7% from the year-ago number. LW delivered a trailing four-quarter earnings surprise of 24.6%, on average.

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The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Anheuser-Busch Inbev (BUD) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question.

Anheuser-Busch Inbev is a member of the Consumer Staples sector. This group includes 185 individual stocks and currently holds a Zacks Sector Rank of #16. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Anheuser-Busch Inbev is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for BUD's full-year earnings has moved 1.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, BUD has moved about 21.8% on a year-to-date basis. Meanwhile, stocks in the Consumer Staples group have gained about 6.7% on average. As we can see, Anheuser-Busch Inbev is performing better than its sector in the calendar year.

Another stock in the Consumer Staples sector, DSM Firmenich AG - Sponsored ADR (DSFIY), has outperformed the sector so far this year. The stock's year-to-date return is 38.6%.

In DSM Firmenich AG - Sponsored ADR's case, the consensus EPS estimate for the current year increased 7.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Anheuser-Busch Inbev belongs to the Beverages - Alcohol industry, a group that includes 17 individual stocks and currently sits at #106 in the Zacks Industry Rank. On average, this group has gained an average of 11.5% so far this year, meaning that BUD is performing better in terms of year-to-date returns.

On the other hand, DSM Firmenich AG - Sponsored ADR belongs to the Cosmetics industry. This 8-stock industry is currently ranked #187. The industry has moved -6.4% year to date.

Anheuser-Busch Inbev and DSM Firmenich AG - Sponsored ADR could continue their solid performance, so investors interested in Consumer Staples stocks should continue to pay close attention to these stocks.

Story Continues

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Anheuser-Busch InBev (ENXTBR:ABI) kicked off its new Reignite phase after reaching the midpoint of its 10 year Reset plan, spotlighting organic expansion, premium offerings, and AI enabled sales execution.

Recent trading has been choppy for Anheuser-Busch InBev, with the share price slipping about 8.5% over the past 90 days even as the year to date share price return sits at 25.6% and the 1 year total shareholder return is 35.3%, which points to strong longer term momentum. The mixed near term moves come as management leans into the Reignite phase, using AI powered sales tools and a tighter focus on mega brands to reset expectations around both growth potential and execution risk at a current share price of €68.3.

Scan how Anheuser-Busch InBev's Reignite push compares with other large consumer names that are leaning on brand strength and digital tools by reviewing the hand picked list of solid balance sheet and fundamentals (202 results)

Anheuser-Busch InBev appears to be a powerful franchise in the midst of a carefully staged reset. After a 35.3% one-year return and a recent pullback, the question is whether €68.3 still reflects a fair price for that strength.

Most Popular Narrative: 23.6% Undervalued

Anheuser-Busch InBev is trading at €68.3 compared to a widely followed fair value narrative of €89.45, which frames the current Reignite phase through a long lens of brand, scale, and discipline.

ABI is transitioning into:

a premiumized portfolio

a more efficient operating system

a deleveraged balance sheet

In other words:

ABI is becoming a cash flow machine with improving quality.

See why 15 investors see Anheuser-Busch InBev as 24% undervalued.

Result: Fair Value of €89.45 (UNDERVALUED)

Still, the Anheuser-Busch InBev story depends heavily on premium brands maintaining pricing power and on disciplined debt management, both of which could be tested by weaker consumer demand.

Find out about the key risks to this Anheuser-Busch InBev narrative.

Next Steps

The story so far presents Anheuser-Busch InBev as both promising and exposed to clear trade offs between its strengths and its pressure points. If you want to explore that tension in more detail, review the full breakdown of 5 key rewards and 1 important warning sign.

Looking for more Anheuser-Busch InBev sized ideas?

If Anheuser-Busch InBev has sharpened your focus on quality and execution, do not stop here. Broaden your opportunity set with a few targeted screens.

Target resilient compounding potential by scanning companies that appear mispriced on fundamentals with the 178 high quality undervalued stocks. Prioritize stability and sleep better at night by tracking businesses flagged as 227 resilient stocks with low risk scores. Hunt for under the radar opportunities before the crowd catches on by reviewing the 618 high quality undiscovered gems.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ABI.BR.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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