Core Viewpoint - Investors are particularly attracted to dividend stocks, especially those with high yields, due to their ability to provide a significant income stream and substantial total return potential [1] Group 1 - Dividend stocks are favored by investors for their income generation capabilities [1] - High-yield dividend stocks are noted for their potential to deliver substantial total returns [1]

Financial Data and Key Metrics Changes - Net revenue grew by 4% year-to-date, driven by a resilient net revenue per hectoliter growth of 7% [5][24] - EBITDA growth of 3% with a margin expansion of 50 basis points in the third quarter [5][24] - Normalized EPS increased by 8% year-over-year [5][24] Business Line Data and Key Metrics Changes - Premium and super premium brands grew mid-teens, gaining sellout market share reaching close to 50% [19] - The balanced choice portfolio grew by 36%, with non-alcohol beers expanding above 20% [7][19] - Cash COGS per hectoliter grew below net revenue per hectoliter, indicating effective cost management [6][11] Market Data and Key Metrics Changes - Brazil Beer experienced a decline in volumes, primarily due to weather conditions and consumer purchasing power constraints [12][14] - The CSD industry in Brazil saw a deceleration from low single-digit growth in Q1 to mid-single-digit decline in Q3 [20] - In Argentina, beer volumes declined mid-single digits, underperforming the industry [21] Company Strategy and Development Direction - The company aims to lead and grow the beer category by placing customers and consumers at the center of decision-making [6][8] - Digitization and monetization of the ecosystem are key pillars, with a focus on expanding the addressable market and enhancing consumer insights [9][10] - A $1 billion share buyback program was approved to return cash to shareholders, reflecting confidence in long-term value creation [6][29] Management's Comments on Operating Environment and Future Outlook - Management views the current industry headwinds as situational rather than structural, with confidence in long-term fundamentals [14][17] - The upcoming FIFA World Cup is seen as a significant opportunity to boost brand engagement and sales [31][46] - Management remains optimistic about the fourth quarter, expecting improved conditions compared to the previous year [45][46] Other Important Information - The effective tax rate decreased to 6.7% from 23.6% year-over-year, influenced by one-off effects [26] - Cash flow from operating activities totaled BRL 6.9 billion, despite softer volumes and higher cash taxes [29] Q&A Session Summary Question: Insights on COGS performance - Management attributed lower costs to a series of initiatives focused on production efficiency and cost control [35][38] Question: Beer industry environment in Brazil - Management noted that weather and consumer purchasing power were significant factors affecting volume performance, with expectations for improvement in Q4 [42][45] Question: Sustainability of SG&A reduction - Management explained that the reduction was partly due to phasing of marketing expenses and variable compensation adjustments, while also emphasizing ongoing investments in sales and marketing [57][60] Question: Pricing strategy and volume reaction - Management indicated that the price increase had minimal impact on industry performance, with a focus on maintaining prices in line with inflation [65][66] Question: Performance in Argentina and Bolivia - Management highlighted strong results in Bolivia offsetting challenges in Argentina, with confidence in long-term prospects for both markets [77][78]

Financial Performance - Normalized net income increased by 7% in 3Q25[83] - Normalized EBITDA reached BRL 384 billion in 3Q25[83] - A share buyback program of R$25 billion was approved[18,92] - R$ 6 billion in dividends announced year-to-date[92] Business Unit Performance - Brazil Beer volume declined by 77% while NR/hl increased by 57%[57] - Brazil NAB volume decreased by 86% but NR/hl grew by 100%[59] - LAS (Latin America South) experienced a volume decrease of 08% with NR/hl increasing by 100%[62] - CAC (Central America and the Caribbean) saw a volume increase of 13% and NR/hl growth of 14%[67] - Canada's volume decreased by 20% while NR/hl increased by 20%[70] Strategic Initiatives - Zé Delivery's GMV (Gross Merchandise Value) reached BRL 80 billion annualized with a 9% increase in AOV (Average Order Value)[31] - Premium & Super Premium volumes up more than 9%[26] - The company is focused on maximizing return on investments and disciplined cost management[81]

Core Insights - Ambev (ABEV) is currently more attractive to value investors compared to Diageo (DEO) based on Zacks Rank and valuation metrics [1][2] Valuation Metrics - ABEV has a Zacks Rank of 2 (Buy), while DEO has a Zacks Rank of 4 (Sell), indicating a stronger earnings outlook for ABEV [2] - ABEV's forward P/E ratio is 12.51, compared to DEO's forward P/E of 14.44, suggesting ABEV is undervalued relative to DEO [4] - ABEV has a PEG ratio of 2.20, while DEO's PEG ratio is significantly higher at 4.26, indicating ABEV's expected earnings growth is more favorable [4] - ABEV's P/B ratio is 2.1, whereas DEO's P/B ratio is 4.06, further supporting ABEV's valuation advantage [5] - ABEV's overall Value grade is A, while DEO's Value grade is C, highlighting ABEV's superior valuation metrics [5]

Core Insights - The stock market is experiencing a bullish trend in Q4 2025, with several investment opportunities under $10 that may offer attractive entry points based on valuation [1] - Companies highlighted include Ambev S.A. and Snap, both of which have solid fundamentals despite their low share prices [2][6] Ambev S.A. (NYSE: ABEV) - Ambev is trading around $2 per share and is considered a defensive favorite in a volatile economy, supported by steady profit margins and a low debt balance sheet [2][3] - The company reported a 7.5% increase in quarterly profit, although overall volumes declined due to currency challenges and cost pressures [3] - Analysts estimate ABEV is trading 25% to 30% below its fair value, with profit margins and cash flow metrics outperforming many global beverage peers [3] - ABEV's stock was up 0.90% at $2.25, marking a year-to-date gain of 21% [4] Snap (NYSE: SNAP) - Snap is currently trading just under $10 and has faced challenges since its post-pandemic highs, but management's focus on monetization and AI-driven ad tools is yielding positive results [6][7] - The company reported $1.3 billion in revenue for the most recent quarter, a 16% year-over-year increase, while also narrowing its losses through cost-cutting measures [7] - Snap's Monthly Active Users reached 932 million, which could support revenue growth, especially with increased advertising spending during the holiday season [8] - Despite a nearly 30% decline year-to-date, trading at $7.65, improving fundamentals may present a turnaround opportunity for investors [8]

Group 1 - Ambev S.A. is considered one of the best penny stocks to buy according to hedge funds, despite Goldman Sachs reducing its price target to R$10.10 from R$10.20 while maintaining a Sell rating [1] - The latest industrial product data from IBGE indicates a 12% decrease in alcoholic beverage production in Brazil for August, averaging a 13% year-over-year contraction quarter-to-date and a 4% drop over the past 12 months [2] - Ambev S.A. operates in three geographical segments: Brazil, Central America and the Caribbean (CAC), and Canada [3] Group 2 - The company produces, distributes, and sells a variety of beverages, including carbonated soft drinks, beer, and other non-alcoholic and non-carbonated products [2] - There is a belief that certain AI stocks may offer greater upside potential and carry less downside risk compared to Ambev S.A. [3]

Core Viewpoint - Ambev (ABEV) is currently viewed as a better value opportunity compared to Diageo (DEO) based on various financial metrics and Zacks Rank analysis [1][7] Valuation Metrics - ABEV has a forward P/E ratio of 12.29, while DEO has a forward P/E of 14.02, indicating ABEV is more attractively priced [5] - ABEV's PEG ratio is 2.16, compared to DEO's PEG ratio of 3.42, suggesting ABEV offers better value when considering expected earnings growth [5] - ABEV's P/B ratio stands at 2.06, significantly lower than DEO's P/B ratio of 4.03, further supporting ABEV's valuation advantage [6] Earnings Outlook - ABEV is currently exhibiting an improving earnings outlook, which is a positive indicator in the Zacks Rank model [3][7] - The Zacks Rank for ABEV is 2 (Buy), while DEO holds a Zacks Rank of 4 (Sell), reflecting a more favorable investment sentiment towards ABEV [3]

Group 1 - The article highlights a cautious outlook on many brewery stocks due to unfavorable market trends, but notes that a relatively smaller stock has shown resilience and potential for growth [1] - The author has extensive experience in the logistics sector and stock investing, focusing on ASEAN and NYSE/NASDAQ stocks, particularly in banks, telecommunications, logistics, and hotels [1] - The investment strategy has evolved from initially focusing on blue-chip companies to diversifying across various industries and market cap sizes, including holdings for retirement and trading profits [1] Group 2 - The author entered the US market in 2020, gaining insights through a trading account managed for a relative, which led to the decision to open a personal account [1] - The analysis conducted by the author compares US market trends with those in the Philippine market, indicating a comprehensive approach to investment research [1]

Group 1: Lockheed Martin - Lockheed Martin derives approximately 75% of its $71 billion sales from contracts with the U.S. Department of Defense, making it a key player in the defense contracting industry [2][3] - The F-35 contract is the largest defense procurement program ever awarded and is expected to provide stable revenue through the 2060s, benefiting long-term investors [3] - Lockheed Martin recently introduced Vectis, a new drone designed for collaboration with fighter jets, indicating the company's adaptability and continued growth potential in the defense sector [5][6] - The company has a price-to-earnings ratio of 27 and offers a dividend yield of 2.7%, providing investors with both income and stability [6] Group 2: Ambev - Ambev is the largest brewer in Latin America and the Caribbean, holding monopolistic positions with approximately 60% beer market share in Brazil and over 70% in Bolivia [8][9] - The company has significant growth potential as per capita beer consumption in Latin America is lower than in developed countries, presenting opportunities for volume growth [10] - Ambev benefits from a trend of consumers preferring foreign beers, allowing it to leverage Anheuser-Busch InBev's premium portfolio [10] - The company maintains a high-yield dividend of 7.6% and is well-positioned to sustain its market share through economic cycles [11] Group 3: Investment Outlook - Both Lockheed Martin and Ambev offer healthy dividends, long-term growth potential, and competitive advantages, making them suitable for dividend-focused portfolios [12]

Company Overview - Ambev S.A. is a leading Brazilian beverage company that produces and distributes beer, soft drinks, and ready-to-drink beverages across various regions including Brazil, Central America, the Caribbean, Latin America South, and Canada, with major brands like Skol, Brahma, Antarctica, Budweiser, and Stella Artois [2] Financial Performance - For Q2 2025, Ambev reported revenue of $3.59 billion, reflecting a 2.65% year-over-year increase, although it was approximately $251 million below analyst expectations [3][5] - Net income increased by 15%, and EBITDA experienced high single-digit growth, with margins improving by 110 basis points [3] - Organic volumes fell by 4.5% due to cooler weather affecting consumption in key regions [3] Leadership Changes - On September 1, 2025, Ambev appointed a new Board of Executive Officers, with Carlos Eduardo Klutzenschell Lisboa as CEO and Guilherme Fleury de Figueiredo Ferraz Parolari as CFO, aiming to strengthen strategic execution amid sector challenges [4] Shareholder Returns - The company raised its dividend to $0.023 per share, up from $0.02, offering a high yield of 6.6%, demonstrating a commitment to shareholder returns despite market headwinds [5]