Down 21% This Year, Is Boston Beer a Buy?
Just a few years ago, Boston Beer (NYSE: SAM) was a high-flying stock.Gone now are the days of double-digit revenue growth, and we're now looking at a business that is moving at a much slower pace. Based on the guidance for 2025, the stock is conservatively trading at around 28 times forward earnings. That's not the worst valuation, but this story still needs more meaningful top-line gains if the maker of Samuel Adams and other brands is to get its mojo back.My overall take is that the sluggish top-line growth demonstrated by the brewer over the last few years makes it a difficult buy -- despite how much I like their beer. Here's why.Continue reading
Just a few years ago, Boston Beer (NYSE: SAM) was a high-flying stock.
Gone now are the days of double-digit revenue growth, and we're now looking at a business that is moving at a much slower pace. Based on the guidance for 2025, the stock is conservatively trading at around 28 times forward earnings. That's not the worst valuation, but this story still needs more meaningful top-line gains if the maker of Samuel Adams and other brands is to get its mojo back.
My overall take is that the sluggish top-line growth demonstrated by the brewer over the last few years makes it a difficult buy -- despite how much I like their beer. Here's why.
