Jim Cramer Discusses Molson Coors (TAP) & Alcohol Industry

We recently published 8 Stocks on Jim Cramer’s Radar.  Molson Coors Beverage Company (NYSE:TAP) is one of the stocks on Jim Cramer's radar.

Molson Coors Beverage Company (NYSE:TAP) is an alcoholic beverage company. The shares are down by 18% year-to-date as the firm has struggled due to the broader weakness in the alcoholic beverage industry. The weak share price has also been met with analyst caution. For instance, JPMorgan started coverage of Molson Coors Beverage Company (NYSE:TAP) in November and set a Neutral rating along with a $49 share price target. JPMorgan commented that while the firm had improved its business fundamentals, it was nevertheless operating in struggling markets. The analyst comments came after Molson Coors Beverage Company (NYSE:TAP) had reported its third-quarter earnings report in November. The results saw the firm report $2.97 billion in revenue and $1.67 in adjusted earnings per share. Crucially, Molson Coors Beverage Company (NYSE:TAP) also forecast a 3% to 4% decline in sales in 2025. Cramer commented on the firm in the context of broader changes in America’s alcohol consumption:

“We see Molson Coors down 2.76 today. I think this is going to be the year where people just say, these are the worst stocks, the alcohol stocks. . .Can they bounce back? I don’t know. This is when you get GLP-1 and it’s going to be in pill form from Eli Lilly, there actually maybe another leg down for alcohol. The country’s a changed country, and I think people should realize, particularly, older people are aging out, they were the big drinkers. Not the young people. The young people are mocktails. But this is just beer coming down, the browns we call them, coming down. Bourbon. Whisky. And the clears are getting killed.”

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Disclosure: None. This article is originally published at Insider Monkey.