Financial Performance Highlights - Overall volume increased by 0.4%[6] - EBITDA increased by 15.9%[6] leading to a 300 bps increase in EBITDA margin[6] - Free Cash Flow increased by 9.0%[6] - Normalized Profit decreased by 8.3%[6] - Organic volume grew by 3.4%[9], with organic NR/hl (Net Revenue per Hectoliter) increasing by 4.8%[9], resulting in a 17.9% increase in organic EBITDA and a 330 bps increase in EBITDA margin[9] Business Unit Performance - BU Canada experienced a volume decrease of 6.9%[10], NR/hl increased by 1.3%[10], EBITDA decreased by 2.2%[10], and EBITDA margin increased by 110 bps[10] - BU LAS (Latin America South) saw a volume decrease of 13.7%[11], but NR/hl increased significantly by 16.4%[11], leading to a 7.6% increase in EBITDA and a 180 bps increase in EBITDA margin[11] - BU Brazil NAB (Non-Alcoholic Beverages) experienced strong growth, with volume up by 7.7%[12], NR/hl up by 6.8%[12], EBITDA up by 40.1%[12], and EBITDA margin up by 500 bps[12] - BU Brazil Beer saw volume increase by 2.9%[13, 17], NR/hl increased by 3.9%[17], EBITDA increased by 20.8%[17], and EBITDA margin increased by 350 bps[17] Brand and Innovation - Brand health reached an all-time high[21, 23] - Innovation in BEES (products assortment) is reaching over 65% of the Brazilian population, covering over 700 cities[21] - First half of 2024 volumes are over 10% compared to last year[23], contributing to 120% of Brazil Beer growth[23] Financial Priorities - Normalized EBITDA increased by 15.9%[25] organically compared to last year[25]

Think it’s too late to find true bargains in this raging bull market? You might be surprised.In fact, plenty of opportunities in low-priced stocks are waiting to be found.As of July 2024, more than 2,600 stocks are listed on major U.S. stock exchanges with a share price of $10 or less. Of course, many of these aren’t great investment options. Most penny stocks and low-priced names end up there due to major issues with the underlying businesses.But, some real diamonds in the rough can be found. Examine seven ...

While growth-centric ideas – particularly in the technology sector – generally attract the most attention, investors should pay attention to passive income opportunities. They’re not nearly as exciting as wagering on the next big thing. However, high-yield dividend stocks can keep your holdings elevated while you navigate the market’s ebb and flow.Fundamentally, dividend-paying companies give you a chance to come out ahead consistently. Picking winners and losers in the market is exactly what it sounds like ...

It’s not easy to find bargain stocks to buy when the stock market regularly keeps hitting new all-time highs. The S&P 500 is sitting above $5,431 at the moment, a 14% gain in 2024 and 23% higher than where it stood 12 months ago.Because a rising tide tends to lift all boats that don’t have holes in them, individual stocks are flying high too. A quarter of all stocks trading on the broad-market index have gained more than the index itself. More than 60% are trading in positive territory. That’s why contraria ...

Core Viewpoint - The article emphasizes the potential of investing in bargain stocks, which may offer higher rewards despite their associated risks, compared to more popular stocks that may have limited returns [1]. Group 1: Albertsons Companies (ACI) - Albertsons Companies operates in the consumer defensive sector, specifically grocery stores, and is currently facing challenges in its merger with Kroger due to anti-competitive concerns [2]. - Analysts rate ACI as a moderate buy with an average price target of $23.66, with the most optimistic forecast at $27.25 [2]. - The company has shown consistent financial performance, with a trailing-12-month net income of $1.3 billion on revenue of $79.24 billion, and is expected to see revenue rise to $80.23 billion in the current fiscal year [3]. Group 2: Magna International (MGA) - Magna International is a Canadian parts manufacturer for automakers, involved in designing and manufacturing components for vehicle manufacturers [5]. - The stock trades at 8.35X forward earnings, with anticipated earnings per share (EPS) of $5.68 for fiscal 2024, an increase from $5.49 the previous year [6]. - EPS is projected to rise to $6.87 in fiscal 2025, making it a candidate for bargain stocks [6]. Group 3: Ambev (ABEV) - Ambev, based in Brazil, operates in the consumer defensive space, producing and distributing beverages, including beer [7]. - Analysts have a consensus moderate buy rating for ABEV, with an average price target of $2.96 and a high-side target of $3.28 [7]. - The company has shown a strong financial performance with an average positive earnings surprise of 23.33% over the past nine months, despite a low forward earnings multiple of 12.87X [8]. Group 4: Visteon (VC) - Visteon operates in the automotive technology sector, providing automotive electronics and connected car solutions [9]. - The stock has a low price/earnings-to-growth (PEG) ratio of 0.85X, and analysts rate it as a moderate buy with an average price target of $140.36, potentially reaching $161 [10]. Group 5: Standard Motor Products (SMP) - Standard Motor Products focuses on manufacturing specialty components for the auto parts sector, particularly for hybrid vehicles [11]. - The stock trades at only 0.52X trailing-year revenue, but analysts project steady growth over the next two years, with a buy rating and a price target of $42 [12]. Group 6: Gilat (GILT) - Gilat provides satellite-based broadband communication solutions and operates in the technology sector [13]. - The company has an average positive earnings surprise of 175.6% over the past four quarters and trades at a trailing-year earnings multiple of 12.95X [14]. - Revenue is expected to rise to $313.9 million in fiscal 2024, representing an 18% growth rate from the previous year [14]. Group 7: Pinstripes (PNST) - Pinstripes operates in the consumer cyclical space, focusing on dining and entertainment with a unique concept [15]. - The company reported a net loss of $9.16 million on revenue of $116.7 million, but is experiencing quarterly revenue growth of 14.1% year-over-year [15]. - Analysts project a loss per share of 22 cents for fiscal 2024, with potential revenue growth to $178.83 million in fiscal 2025, making it a high-risk, high-reward investment [16][17].

Ambev S.A. (NYSE:ABEV) Q1 2024 Results Conference Call May 8, 2024 11:30 AM ET Company Participants Jean Jereissati - Chief Executive Officer Lucas Lira - Chief Financial and Investor Relations Conference Call Participants Isabella Simonato - Bank of America Felipe Ucros - Scotia Rodrigo Alcantara - UBS Lucas Ferreira - JPMorgan Robert Ottenstein - Evercore ISI Ben Theurer - Barclays Renata Cabral - Citi Ricardo Alves - Morgan Stanley Operator Good morning, good afternoon, and thank you for waiting. We woul ...

Core Argument - The US dollar's weakening value due to nearly $35 trillion in unpayable Treasury debt suggests investors should diversify portfolios overseas, with Ambev SA (ABEV) being a top foreign pick [1] - Ambev's undervaluation, combined with a weaker US dollar, could lead to a dramatic share price increase over 2-3 years, potentially doubling or tripling in price with a high 6.5% dividend payout [1] Weak Dollar Argument - Dedollarization in international trade is expected to continue over the next decade, driven by US deficit spending and potential economic recession risks [2] - The Brazilian Real has been gaining ground against the US dollar since mid-2020, with $1 USD now exchanging for $5.12 BRL, making foreign assets like Ambev more attractive [2] Ambev's Valuation - Ambev is currently at one of its cheapest valuations in 20 years, with a trailing dividend yield of 6.5%, the highest in the global brewery and distilled beverage industries [4] - Key financial ratios include price to trailing earnings (12.7x), sales (2.3x), cash flow (7.46x), and book value (2.26x), similar to recession lows in 2009 and 2020 [4] - Ambev's enterprise valuation metrics, such as EV to forward cash EBITDA (6.2x) and revenues (2.06x), are at 10-year lows, approaching 2009 Great Recession levels [6] Financial Metrics - Ambev's free cash flow yield is 10.1%, the highest since the 2009 global recession, and significantly higher than US large caps, which are yielding at or below 5% [7] - The company has a conservative balance sheet with more cash than debt (net $3 billion in cash), and gross profit margins exceeding 50% [5][8] Peer Comparison - Ambev is the least expensive major beer brewery or liquor distiller globally compared to peers like Heineken, Anheuser-Busch InBev, and Diageo [6] - Seeking Alpha's Quant Valuation Grade gives Ambev an "A," with key metrics like P/E Non-GAAP (TTM) at 12.45, 32.49% below the sector median [9] Earnings and Growth - Ambev's earnings estimates for 2024-26 show modest growth, with 2025 EPS expected to increase by 9.79% YoY, while sales are projected to grow steadily [10] - The company's stable business model and defensive nature make it desirable in a potential recession or market volatility scenario [9] Dividend Appeal - Ambev's trailing dividend yield of 6.48% is the highest since the company began paying dividends in 2006 and the strongest relative to the S&P 500 index [11] - The yield is also the highest among peer breweries and distillers, making it an attractive income investment with a sound balance sheet and strong profit margins [12] Upside Potential - A return to 10-year average financial ratios could push Ambev's share price to $4.00, offering a potential total return of +80% [15] - If the US dollar declines further and the Brazilian economy outperforms, price targets of $5 or $6 are possible, with total returns of +150% to +200% over 2-3 years [15] Downside Risks - A material decline in the Brazilian Real vs the US dollar or global financial turmoil could pressure Ambev's operating results and share price [14] - However, Ambev's current valuation is so cheap that it is expected to outperform the S&P 500 in a bear market scenario [14]

Core Viewpoint - Ambev's valuation is closely linked to the strength of the Brazilian Real, making traditional financial metrics less relevant for investment analysis [1][2]. Group 1: Financial Performance and Correlation - Ambev's share price shows a negative correlation with earnings per share (EPS), free cash flow (FCF), and revenue, despite the company achieving an annual revenue growth rate of approximately 8.5% [2][3]. - The correlation between Ambev's share price and the USD to BRL exchange rate is strong and negative, with the share price decreasing by about $1.56 for every Brazilian Real gained against the US Dollar [3][4]. - The Brazilian Real has depreciated at a rate of about 7.8% per year, which is comparable to Ambev's revenue growth rate, indicating a challenging environment for the company [7]. Group 2: Market Position and Size - Ambev is a significant player in the Latin American beer market, controlling approximately 80% of the market in Argentina, 70% in Brazil, and 60% in Peru [11]. - The company produced 183.7 million hectoliters of beer, making it the third-largest producer globally when considering its parent company, AB InBev [8]. Group 3: Profitability and Financial Health - Ambev leads the industry in net margin at 18%, significantly outperforming competitors like Heineken and Constellation Brands [9]. - The company has maintained a negative net debt position since 2012, showcasing strong financial discipline and a robust balance sheet [10]. Group 4: Growth Drivers and Challenges - Ambev has seen substantial growth in its premium and super premium brands, which has helped offset volume decreases [11]. - The company faces headwinds from currency volatility and political instability in Brazil and Argentina, which could impact its performance [12][13]. Group 5: Investment Outlook - The potential for investment in Ambev hinges on either the Brazilian Real regaining value or the company outpacing the Real's depreciation through revenue and profit growth [7]. - Ambev offers a high dividend yield of about 6%, which is a significant factor for investors, although this is subject to changes in Brazilian tax policy [18].

Group 1: Investment Opportunities - Marketbeat's screening tools, particularly the Cheap Dividend Stock list, identify stocks trading within 20% of their 52-week lows with yields of 3% or more, serving as a starting point for research [1] - Hanover Bancorp offers better yield and value for small-cap investors compared to Cullman Bancorp, trading at less than half the value and providing a yield of 150 basis points more [10] - Ambev's stock is trading at a low price with a dividend yield of about 10%, although there is risk associated with the payout due to its distribution policy [4] Group 2: Company Performance and Outlook - Big 5 Sporting Goods is currently trading at a multi-year low due to a recent distribution cut, but it yields over 5% and is expected to pivot back to growth by the end of the fiscal year [6] - Cullman Bancorp has a reliable 1.2% yield with a payout ratio of less than 20% of cash flow, showing potential for distribution growth despite a previous cut [8] - AdvisoryShares Dorsey Wright Short ETF has shown a downward trend since its launch in 2019, making it a candidate to sell despite its dividend payment [2]

Group 1 - Ambev S.A. filed its annual report on Form 20-F for the year ended December 31, 2023 with the U.S. Securities and Exchange Commission on March 11, 2024 [1] - The report is available on the Company's website and the SEC's website [1] - ADR holders can request a hard copy of the complete audited financial statements free of charge [1]