Financial Performance - Ambev reported net sales of R$63,434,834 thousand for the nine-month period ended September 30, 2025, a slight increase from R$62,417,251 thousand in the same period of 2024, representing a growth of 1.6%[15] - The gross profit for the nine-month period was R$32,322,974 thousand, compared to R$31,325,674 thousand in 2024, indicating a year-over-year increase of 3.2%[15] - Net income for the nine-month period reached R$11,458,935 thousand, up from R$9,822,371 thousand in 2024, reflecting a growth of 16.7%[15] - Basic earnings per share for the nine-month period was R$0.7141, compared to R$0.6073 in 2024, marking an increase of 17.6%[15] - Net income for the nine-month period ended September 30, 2025, reached BRL 11,458,935 thousand, a 16.6% increase from BRL 9,822,371 thousand in the same period of 2024[16] - For the three-month period ended September 30, 2025, net income was BRL 4,863,720 thousand, up from BRL 3,566,301 thousand in the same period of 2024, marking a 36.2% increase[16] - The company reported exceptional items contributing R$772,901 thousand to income from operations for the nine-month period[15] - The income from operations for the nine-month period ended September 30, 2025, was R$16,414,403 thousand, compared to R$14,278,598 thousand in 2024, representing a growth of 15.0%[90] Assets and Liabilities - Total assets decreased to R$140,754,995 thousand as of September 30, 2025, down from R$162,507,949 thousand at the end of 2024, a decline of 13.4%[13][14] - Current liabilities decreased to R$36,577,101 thousand from R$49,388,714 thousand, a reduction of 26%[14] - The company’s cash and cash equivalents decreased to R$18,309,248 thousand from R$28,595,666 thousand, a decline of 36%[13] - Ambev's total equity attributable to shareholders was R$92,027,435 thousand, down from R$98,642,139 thousand, a decrease of 6.5%[14] - The total issued capital increased to BRL 58,275,696 thousand as of September 30, 2025, from BRL 58,226,036 thousand at the beginning of the year[19] - The total amount of current and non-current recoverable taxes was R$13,472,212 as of September 30, 2025, down from R$14,086,252 at December 31, 2024, indicating a decrease of approximately 4.4%[46] - The total carrying amount of property, plant, and equipment as of September 30, 2025, was R$23,881,025, reflecting a significant reduction in value[54] - The total interest-bearing loans and borrowings decreased to R$2,894,517 million as of September 30, 2025, down from R$3,452,728 million at December 31, 2024, reflecting a decline of about 16.1%[58] Cash Flow and Investments - Cash flow from operating activities for the nine-month period was R$11,198,356, a decrease of 8.1% from R$12,184,757 in the previous year[20] - Cash flow from investing activities was negative R$2,915,701 for the nine-month period, compared to negative R$3,992,719 in the previous year[20] - The company reported net financial results of R$2,916,360 for the nine-month period, up from R$1,703,692 in 2024, reflecting a significant increase of 71.2%[20] - The company recognized a gain of R$884 million from the sale of a subsidiary, which was recorded under non-recurring items[29] - The company reported acquisitions of property, plant, and equipment totaling R$2,960,298 thousand for the nine-month period ended September 30, 2025, compared to R$3,229,988 thousand in 2024[90] Taxation and Compliance - Total income tax expenses for the nine-month period ended September 30, 2025, were R$2,030,978, a decrease from R$2,754,357 in the same period of 2024[51] - The effective tax rate for the nine-month period ended September 30, 2025, was 15.06%, compared to 21.90% for the same period in 2024[51] - The company recognized R$1,138,664 in tax incentives for the nine-month period ended September 30, 2025, compared to R$1,041,002 in the same period of 2024[96] - The company is currently challenging tax assessments regarding ICMS differences in courts, with a Supreme Court ruling in February 2025 reclassifying potential losses from possible to remote, amounting to R$0.8 billion[74] Shareholder Information - The company declared dividends amounting to BRL 5,998,726 thousand for the nine-month period ended September 30, 2025[19] - The total dividends distributed amounted to R$0.1283 per share, with the payment made on October 6, 2025[26] - The company approved dividends totaling R$5,998,726 thousand for the fiscal year 2025, with payments scheduled across three distributions[86][87][88] - The company’s issued capital as of September 30, 2025, is R$58.28 billion, with a total of 15,761,639 common shares outstanding[78] Risk Management - The company has no significant concentration of credit risk as of September 30, 2025, with counterparty risk reassessed quarterly[128] - The company’s liquidity risk is managed through cash flow from operating activities, debt issuances, and access to credit facilities[131] - The company has a dynamic interest rate hedging approach to mitigate risks associated with fluctuations in interest rates[124] Operational Highlights - The company operates in multiple segments, producing and selling a variety of beverages, including beer and soft drinks, across Latin America[21] - The company has commitments to suppliers for inventory amounting to R$27,096,091 as of September 30, 2025, down from R$46,942,988 at December 31, 2024[141] - Key management personnel remuneration totaled R$136,942 for the nine-month period ended September 30, 2025, compared to R$123,008 for the same period in 2024[146]

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]

Core Viewpoint - Ambev S.A. is recognized as one of the most profitable penny stocks to consider, with upcoming earnings expectations indicating potential growth despite recent challenges in revenue and volume [1]. Financial Performance - In Q2 FY2025, Ambev reported revenue of $3.59 billion, which was $250.95 million below consensus estimates, but represented a year-over-year increase of 2.65% [2]. - The adjusted earnings per share for Q2 FY2025 were $0.03, aligning with market expectations [2]. - The company experienced a 4.5% decline in total organic volumes compared to the previous year, attributed to industry softness [2]. - Despite the volume decline, Ambev achieved a 15% increase in net income, and EBITDA grew by high single digits, with a margin expansion of 110 basis points [2]. Market Expectations - Ambev is set to report its Q3 2025 earnings on October 30, 2025, with Wall Street anticipating adjusted earnings per share of $0.04 and revenue around $4.24 billion [1]. - Following the Q2 results, UBS maintained a Hold rating on Ambev, lowering the price target from $2.5 to $2.2, while Evercore ISI assigned a Buy rating with a price target of $4 [3]. - As of September 16, the average price target for Ambev was $2.81, suggesting an upside potential of approximately 19.03% from current levels [3]. Company Overview - Ambev S.A. is a Brazil-based brewer involved in the production, distribution, and sale of various beverages, including beer, draft beer, carbonated soft drinks, and other alcoholic and non-alcoholic drinks [4].

Group 1 - Ambev S.A (NYSE:ABEV) reported fiscal second quarter 2025 revenue of $3.59 billion, which represents a year-over-year growth of approximately 2.65%, but fell short of expectations by $250.95 million [1] - The company's earnings per share (EPS) was $0.03, aligning with consensus estimates [1] - Total organic volumes decreased by 4.5% year-over-year, attributed to industry softness and colder temperatures affecting consumption, particularly in the South and Southeast regions, which account for nearly 60% of industry demand [2] Group 2 - Wall Street's opinion on Ambev S.A has been mixed post-earnings release, with Evercore ISI maintaining a Buy rating and a price target of $4, while UBS reiterated a Hold rating and reduced the price target from $2.5 to $2.2 [3] - Ambev S.A is a Brazil-based company involved in brewing, distributing, and selling beer, soft drinks, and other beverages across the Americas [3]