Molson Coors(TAP) ZACKS·2025-02-21 17:31Core Viewpoint - Molson Coors Beverage Company (TAP) has demonstrated strong stock performance, rising 14.5% over the past six months, significantly outperforming the Zacks Beverages - Alcohol industry and the broader Consumer Staples sector, which saw declines of 18.1% and 8%, respectively [1] Group 1: Company Performance - TAP's core power brands, including Coors Light, Miller Lite, and Coors Banquet, have retained over 80% of their combined volume share gains on a two-year stack basis in Q4 2024, indicating strong brand performance [3] - The company has achieved 23 consecutive months of higher share growth, with Coors Light being the number one light beer in Canada [4] - The brand Madrí has driven premiumization success in EMEA and APAC, with notable performance in Bulgaria and a successful re-launch of Caraiman in Romania [5] Group 2: Strategic Initiatives - Molson Coors is focused on portfolio premiumization in both Beer and Beyond Beer, enhancing its product offerings through impressive innovations [2] - The company has strategic plans for expanding the Peroni brand and the non-alcoholic category, with the consolidation of ZOA expected to contribute positively to revenue [6] - A license agreement to market and sell Fever-Tree products in the U.S. is anticipated to boost sales and profitability [6] Group 3: Financial Outlook - The Zacks Consensus Estimate for TAP's earnings per share (EPS) has increased by 3.6% to 6.77 for 2026, indicating year-over-year earnings growth of 6.5% and 6.7%, respectively [8] - Management projects low-single-digit sales growth for 2025 on a constant-currency basis and expects underlying EPS to grow in high single digits from 2024 [11] - The stock is currently trading at a price/earnings ratio of 9.84, lower than the industry average of 14.16, suggesting an attractive valuation [9]