TAP vs. DEO: Which Stock Should Value Investors Buy Now?

Core Insights - Investors in the Beverages - Alcohol sector should consider Molson Coors Brewing (TAP) and Diageo (DEO) for potential undervalued stock opportunities [1] Group 1: Zacks Rank and Earnings Outlook - Molson Coors Brewing has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while Diageo has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, suggesting TAP has an improving earnings outlook [3] Group 2: Valuation Metrics - TAP has a forward P/E ratio of 9.48, significantly lower than DEO's forward P/E of 16.49 [5] - TAP's PEG ratio is 1.51, while DEO's PEG ratio is 2.36, indicating TAP is more favorably valued in terms of expected earnings growth [5] - TAP's P/B ratio is 0.93, compared to DEO's P/B of 4.78, further highlighting TAP's undervaluation [6] Group 3: Value Grades - TAP has earned a Value grade of A, while DEO has a Value grade of C, suggesting TAP is the better option for value investors [6]