Boston Beer (SAM) Surges 3.8%: Is This an Indication of Further Gains?

Boston Beer (SAM) shares rallied 3.8% in the last trading session to close at $417. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 22.6% gain over the past four weeks.

Boston Beer’s stock rally is an extension of its continued innovation efforts that have been impressing investors. The company recently announced the remastering of the Samuel Adams Boston Lager – the flagship beer that has helped lead the American craft beer revolution – to develop a smoother, brighter Boston Lager. The company noted that the beer will be relaunched at the 2023 Super Bowl with a new TV commercial, which reimagines everything a little brighter including the beer itself to the brewer's hometown of Boston.

Resilience and strength in the Twisted Tea brand and positive early progress in Hard Mountain Dew has kept the stock in good stride. Moreover, the company expects to improve Truly brand trends through renewed focus on core business, smart brand innovation and strong distributor support and retail execution. The company is also on track with the growth of its Beyond Beer category, where it currently holds the 2nd position.

This brewer is expected to post quarterly earnings of $0.64 per share in its upcoming report, which represents a year-over-year change of +811.1%. Revenues are expected to be $403.19 million, up 15.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Boston Beer, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SAM going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Boston Beer belongs to the Zacks Beverages - Alcohol industry. Another stock from the same industry, Vintage Wine Estates, Inc. (VWE), closed the last trading session 7.4% higher at $2.92. Over the past month, VWE has returned -12%.

For Vintage Wine Estates, Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.18. This represents a change of +5.9% from what the company reported a year ago. Vintage Wine Estates, Inc. currently has a Zacks Rank of #2 (Buy).

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