S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
Boston Beer Company Inc. (NYSE:SAM) stock has experienced a significant downturn, touching a 52-week low of $247.25. According to InvestingPro analysis, the stock's RSI indicates oversold territory, while the company maintains strong fundamentals with more cash than debt and a healthy current ratio of 2.03. This latest price level reflects a stark contrast to the company's performance over the past year, with the stock witnessing a decline of nearly 32%. Despite market challenges, InvestingPro analysis suggests the stock is currently undervalued, with management actively buying back shares. The company remains profitable with a gross margin of ~44% and maintains strong liquidity with assets exceeding short-term obligations. Investors are closely monitoring the company's strategy for a turnaround as it navigates through these headwinds. For deeper insights into SAM's valuation and 12 additional ProTips, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Boston Beer Company experienced a minor increase in revenue by 0.6% despite a 3% decrease in shipments and depletions, according to its Q3 2024 earnings call. The company's improved gross margin of 46.3% was driven by pricing strategies and procurement savings. The company also launched new products "Just the Haze" and "American Light," with plans for their national expansion in early 2025. Bernstein analysts adjusted their outlook on Boston Beer Company shares, increasing the price target to $315 from the previous $305, reflecting the latest earnings guidance from the company and a moderated revenue forecast. Citi reaffirmed its Neutral stance on Boston Beer Company, maintaining its price target of $305.00. These are recent developments in the company's operations. Boston Beer Company has narrowed its volume guidance for 2024, expecting depletions and shipments to decline by low single digits. The company's gross margin projections for 2024 are between 44% and 45%, with capital expenditures estimated to be between $80 million and $95 million. The company anticipates a projected negative EPS of approximately $2 for Q4 due to shortfall fees and sensitivity to volume fluctuations.
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