Ambev S.A. (ABEV) Buy or Sell Stock Guide

Last updated: Aug 15, '19

Are you looking for the analysis of Ambev S.A. (ABEV) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 6 reasons to buy and 2 reasons to sell ABEV stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about ABEV stock:

  • Is ABEV a buy or a sell?
  • Should I sell or hold ABEV stock today?
  • Is ABEV a good buy / investment?
  • What are ABEV analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy ABEV stock:

1. ABEV quarterly revenue growth was 5.23%, higher than the industry and sector average revenue growth (2.41% and 3.40%, respectively). See ABEV revenue growth chart.

2. ABEV profitability is improving. The YoY profit margin change was 5.56 percentage points. See ABEV profitability chart.

3. ABEV forward dividend yield is 4.92%, higher than the industry (0.99%) and sector (0.56%) forward dividend yields. See ABEV forward dividend chart.

4. ABEV PEG ratio (P/E adjusted for growth) is 2.55, and it’s low compared to its industry peers’ PEG ratios. See ABEV PEG chart.

5. ABEV average analyst rating is Buy. See ABEV analyst rating chart.

6. ABEV average analyst price target ($5.44) is above its current price ($4.68). See ABEV price target chart.

Now that you understand the bull case, let’s look at the reasons to sell ABEV stock (i.e., the bear case):

1. ABEV forward P/E ratio is 25.13, and it’s high compared to its industry peers’ P/E ratios. See ABEV forward P/E ratio chart.

2. ABEV Price/Sales ratio is 5.94, and it’s high compared to its industry peers’ P/S ratios. See ABEV forward Price/Sales ratio chart.

Now let's look at the key statistics for ABEV:

Metrics ABEV
Price $4.59
Average Price Target / Upside $5.44 / 18.52%
Average Analyst Rating Buy
Industry Beverages - Brewers
Sector Consumer Defensive
Number of Employees 51,432
Market Cap $73.60B
Forward P/E Ratio 25.1256
Price/Book Ratio 5.9374
PEG 2.5527
Revenue (TTM) $51.87B
YoY Quarterly Revenue Growth 5.22848909016056%
Profit Margin 21.97802197802198%

What are your thoughts on ABEV?

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