Molson Coors Up 13.1% in 6 Months: Buy, Hold or Avoid the Stock?

Molson Coors Beverage Company TAP has been doing well on the bourses, recording 13.1% growth in the past six months. However, the Zacks Beverages - Alcohol industry and the broader Consumer Staples sector dropped 12% and 1.8%, respectively, in the same time frame. Meanwhile, the S&P 500 index has also witnessed a decline of 6.7% in the same time frame.

The company is strictly focused on portfolio premiumization, in both Beer and Beyond Beer, to boost its product portfolio. TAP has also been making impressive innovations, especially in Beyond Beer.

TAP’s Robust Strategies

Molson Coors’ Acceleration Plan had been built upon the success accomplished under its Revitalization Plan, implemented in 2019. The plan is expected to deliver growth in the coming years. This initiative revolves around five pillars, including core power brands’ growth, portfolio premiumization, beyond beer expansion, investment in capabilities and support to its people and communities.

The company intends to invest in iconic brands and growth opportunities in the above-premium beer space, expand in adjacencies and beyond beer, and create digital competencies for commercial functions, supply-chain-related system capabilities and employees. It is also building on the strength of its iconic core brands.

The company is supporting the health of its brands globally and premiumizing its business in various markets, alongside developing plans for premiumization in the United States. To accelerate portfolio premiumization, it has been aggressively growing its above-premium portfolio for the past few years. 

The company has been prioritizing the stabilization of some of its larger above-premium brands in the United States, while exploring significant growth opportunities for key brands. Its better-for-you energy drinks sales have been performing well. Such initiatives have been bolstering TAP’s sales and profits.

TAP Price Performance

TAP Stock’s Attractive Valuation

Molson Coors’ stock is trading at a discount valuation relative to the industry. Going by the price/earnings ratio, the stock is currently trading at 9.38 on a forward 12-month basis, lower than 15.533 of the industry. Also, the stock is trading lower than its high of 11.27. TAP has a Value Score of B.

Final Words on TAP Stock

There is no doubt that the stock is attractively valued and robust strategies speak of major tailwinds for Molson Coors. 

For 2025, the Zacks Consensus Estimate for earnings per share (EPS) indicates a 6.7% year-over-year increase. The consensus estimate for 2026 sales and EPS reflects year-over-year growth of 0.4% and 6%, respectively. Molson Coors currently sports a Zacks Rank #1 (Strong Buy).

Other Stocks to Consider

United Natural Foods UNFI, which is a distributor of natural, organic and specialty food in the United States, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

UNFI delivered a trailing four-quarter earnings surprise of 408.7%, on average. 

The Zacks Consensus Estimate for UNFI’s current financial-year sales and EPS indicates growth of 1.9% and 485.7%, respectively, from the year-ago numbers.

Utz Brands UTZ manufactures salty snacks under popular brands and has a Zacks Rank of 2. UTZ delivered a trailing four-quarter average earnings surprise of 8.8%.

The Zacks Consensus Estimate for UTZ’s current financial-year sales and EPS implies growth of 1.2% and 10.4%, respectively, from the year-ago numbers.

Nomad Foods NOMD, which manufactures frozen foods, currently carries a Zacks Rank of 2. NOMD delivered a trailing four-quarter earnings surprise of 5%, on average.

The Zacks Consensus Estimate for Nomad Foods’ current financial-year EPS indicates growth of 3.1% from the year-ago number.

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This article originally published on Zacks Investment Research (zacks.com).

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