Molson Coors Beverage Company manufactures, markets, and sells beer and other malt beverage products under various brands in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers flavored malt beverages including hard seltzers, craft, spirits and energy, and ready to drink beverages. It provides its products under Aspall Cider, Blue Moon, Coors Original, Five Trail, Hop Valley brands, Leinenkugel's, Madri, Miller Genuine Draft, Molson Ultra, Sharp's, Staropramen, and Vizzy Hard Seltzer above premier brands; Bergenbier, Borsodi, Carling, Coors Banquet, Coors Light, Jelen, Kamenitza, Miller Lite, Molson Canadian, and Niksicko, Ozujsko under the premium brands; and Branik, Icehouse, Keystone, Miller High Life, Milwaukee's Best, and Steel Reserve under the economy brands. The company was formerly known as Molson Coors Brewing Company and changed its name to Molson Coors Beverage Company in January 2020. Molson Coors Beverage Company was founded in 1774 and is based in Golden, Colorado.

Molson Coors looks like a mature defensive business with an inexpensive valuation, but the fundamental picture right now is more of a headwind to upside than a support for it. On valuation multiples, the company trades meaningfully below the industry: P/S of 0.69, P/B of 0.80, and P/FCF of 8.03 point to moderate undervaluation, while the low debt/equity ratio of 0.38 reduces financial risk. However, P/E and profitability based on the latest TTM data do not provide a solid foundation for a re-rating, since several earnings and return-on-capital metrics have been zeroed out in recent periods. Gross margin remains strong and above the industry median, but operating and net margins in TTM also look weak, indicating pressure on efficiency below the gross margin level. Earnings and operating performance over the last periods have been uneven: after stronger readings in mid-2025, the latest reporting points look weaker. Liquidity is the main drawback: a current ratio of 0.54 and a quick ratio of 0.38 are significantly below comfortable levels, limiting the buffer. The debt burden is overall moderate and better than the industry median, and the reduction in long-term debt compared with earlier periods is a positive signal. Revenue remains large and stable, but a decline is visible across several periods, while EBITDA and gross profit do not show convincing acceleration. Dividend yield in TTM is absent, whereas it was positive in prior periods, so the dividend argument is currently weakened. Overall, this is not a strong growth story, but rather a stable yet not risk-free consumer business with limited re-rating catalysts. For an investor, this means fair value should be more conservative than the current baseline: cheap multiples are partly offset by weak liquidity, unstable earnings, and deteriorating profitability. At the same time, the balance sheet and the low valuation on P/B and P/FCF do not justify a sharply negative conclusion, so the adjustment remains moderate.

Molson Coors Beverage Company

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно вырос. Рынок на стороне быков.

Strong index, significantly up. The market is on the bulls' side.

Сильный индекс, значительно вырос. Приток средств в лонги на высоком уровне.

Strong index, significantly up. Inflow of funds into longs at a high level.

TAP looks inexpensive on P/B and P/FCF, but weak liquidity, uneven earnings, and declining profitability limit the re-rating potential.

Brown-Forman B (BF.B) shares ended the last trading session 5.5% higher at $28.9. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.2% loss over the past four weeks.
The Brown-Forman shares moved higher after the company disclosed that it had received an unsolicited acquisition proposal from privately held spirits company Sazerac. Although Brown-Forman’s board, supported by its controlling shareholder group, Wolf Pen Branch, determined that the proposal was “not actionable” and reaffirmed its commitment to remaining independent, investors viewed the disclosure as highlighting the company’s strategic value. The announcement also fueled speculation that a higher bid or renewed acquisition interest could emerge in the future. Management reiterated confidence in its long-term growth strategy, brand portfolio, geographic expansion and operational initiatives aimed at enhancing shareholder value.
This company is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of +5.6%. Revenues are expected to be $922.86 million, down 0.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Brown-Forman B, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BF.B going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Brown-Forman B is part of the Zacks Beverages - Alcohol industry. Molson Coors Brewing (TAP), another stock in the same industry, closed the last trading session 3.4% higher at $42.51. TAP has returned 3.5% in the past month.
For Molson Coors, the consensus EPS estimate for the upcoming report has changed -0.5% over the past month to $1.52. This represents a change of -25.9% from what the company reported a year ago. Molson Coors currently has a Zacks Rank of #4 (Sell).
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Brown-Forman B (BF.B) Surges 5.5%: Is This an Indication of Further Gains?

The Boston Beer Company, Inc. SAM is reshaping its portfolio as consumer preferences move toward spirits-based ready-to-drink beverages, smaller packs and targeted formats.
That shift is increasingly important because the company’s older growth engines are losing momentum. Innovation is improving mix, but core-brand weakness continues to weigh on overall volume.
Boston Beer Shifts Toward Spirits RTDs
Sun Cruiser delivered triple-digit depletion growth in the second quarter and continues to expand distribution. The brand is also adding favorable revenue and margin mix, giving Boston Beer a stronger foothold in spirits-based tea and lemonade.
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That growth contrasts with Twisted Tea’s pressure. Twisted Tea remains dominant in malt-based hard tea, but it is facing lower sales velocities, reduced feature and display activity and rising competition from spirits-based hard teas.
Consumer behavior is also shifting away from larger pack sizes. The 12-pack format remains the largest source of Twisted Tea’s volume decline, showing how hard tea demand is changing beneath the category headline.
SAM's Pack and Format Changes Target Demand
Boston Beer is responding with smaller packs, single-serve formats, value packs and more targeted offerings. Twisted Tea Light and Twisted Tea Extreme are part of that effort, along with new flavors and broader distribution.
The same logic applies to Truly. High-alcohol Truly Unruly and Wild Berry continue to outperform other styles, giving management narrower areas for investment as the broader brand resets.
Molson Coors Beverage Company TAP is a relevant peer for investors watching how large beverage companies manage shifting demand across beer and flavored malt beverages. Constellation Brands, Inc. STZ also provides useful context because it competes across beer, wine and spirits, where portfolio mix matters heavily.
Boston Beer's Supply Chain Gains Support Mix
Boston Beer produced 84% of domestic volume at company-owned facilities in the second quarter, up from 76% a year earlier. That shift supports brewery utilization and gives the company more control over production economics.
The margin benefit is already visible. Second-quarter gross margin rose 60 basis points year over year to 50.4%, helped by brewery efficiencies, procurement savings, favorable product mix and pricing.
Management expects domestic internal production to exceed 90% for the full year. If achieved, that could strengthen the economics of newer and higher-mix products while reducing reliance on third-party production.
SAM's Cost Inflation Complicates the Pivot
The pivot is not cost-free. Freight rates rose more than 35% year over year, adding pressure even as lower volumes helped offset some shipment costs.
Aluminum, energy and tariff exposure also remain concerns. Boston Beer expects tariff costs of $20 million to $30 million for 2026, which could limit the upside from pricing and productivity.
Shortfall fees and non-cash third-party production prepayments are another drag. Management expects those items to reduce full-year gross margin by 40 to 60 basis points.
Boston Beer Signals Lag the Trend Story
The bottom line is that Boston Beer has a credible portfolio-renewal story, but it is still early. Sun Cruiser and Angry Orchard are growing, yet their gains have not offset weakness in Twisted Tea, Truly, Samuel Adams and Dogfish Head.
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The stock currently carries a Zacks Rank #5 (Strong Sell), signaling that emerging-product momentum has not overcome falling earnings estimates and weak overall demand. That makes the near-term investment setup defensive.
SAM’s Growth Score of B and VGM Score of B acknowledge portfolio-renewal potential. The Momentum Score of F and Value Score of C reflect the market and valuation challenges around that transition.
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Boston Beer Rides RTD Growth While Core Brands Lose More Momentum

The Boston Beer Company, Inc. SAM has financial strengths that should not be dismissed. It has no debt, solid cash generation and improving gross margins.
The problem is that weak demand is cutting into earnings visibility. For investors, the question is whether balance-sheet resilience can offset estimate cuts, lower volumes and a valuation that still looks demanding.
SAM's Valuation Looks Stretched
SAM trades at 18.29X forward 12-month earnings. That compares with 15.28X for its Zacks sub-industry and 16.98X for the broader Zacks sector
Image Source: Zacks Investment Research
The premium is harder to defend while volumes are declining. The $153 price target, based on 17.21X forward 12-month earnings, sits below the $180.15 share price and points to downside risk.
The stock does trade below its five-year median multiple of 26.34X. Still, a lower-than-historical valuation does not automatically make the shares attractive when earnings expectations are falling.
Constellation Brands STZ and Molson Coors Beverage Company TAP offer relevant peer context for investors tracking alcohol demand, pricing power and category share shifts. Both stocks sit in the same broader beverages-alcohol investment discussion as SAM.
Boston Beer's Earnings Visibility Weakens
Boston Beer posted second-quarter adjusted earnings of $3.65 per share, missing the Zacks Consensus Estimate of $4.77. The figure declined 33% from the year-ago quarter.
Revenues fell 3.3% to $568 million. Lower volumes and higher marketing costs weighed on results, even as pricing and favorable mix helped cushion part of the pressure.
Estimate revisions are also negative. The fiscal-year earnings estimate fell 10.5% over four weeks and 13.25% over 12 weeks, reinforcing a weaker near-term earnings setup.
SAM's Balance Sheet Limits Financial Risk
SAM ended the second quarter with $265.5 million in cash and no debt. The company also had full availability under its $150 million revolving credit facility.
First-half operating cash flow totaled $117.6 million, while capital expenditures were $22.9 million. Those figures show that the business is still producing cash despite softer demand.
Management also reduced its full-year capital-spending outlook to $60 million to $80 million from $70 million to $90 million. That gives the company more flexibility as it focuses spending on brewery capabilities, efficiency and innovation.
Boston Beer Catalysts Need Time to Build
Boston Beer still has levers that could support profitability. Management expects price increases of 1% to 2%, while supply-chain productivity and higher internal production should help margins.
Internal production reached 84% of domestic volume in the second quarter, up from 76% a year earlier. Management expects that rate to exceed 90% for the full year.
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Sun Cruiser delivered triple-digit depletion growth, and Angry Orchard grew for a fifth consecutive quarter. Those gains support portfolio renewal.
The offset is that companywide volumes remain under pressure. Tariff costs are expected to total $20 million to $30 million, freight inflation remains a concern and litigation exposure continues to cloud reported earnings and cash deployment.
SAM Signals Favor Caution
The bottom line is that SAM’s balance sheet and margin progress help limit financial risk, but they do not yet fix the demand problem. A buying case would be stronger with clearer evidence that volumes and core brand trends are stabilizing.
The stock currently carries a Zacks Rank #5 (Strong Sell), reflecting negative earnings-estimate revisions and weak near-term momentum. That signal favors caution.
SAM’s Growth Score of B and VGM Score of B recognize areas of operating potential. The Value Score of C and Momentum Score of F suggest the risk-reward profile remains unattractive without stronger demand stabilization.
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Is SAM Stock Worth Buying After Earnings Misses and Estimate Cuts?

Boston Beer Company, Inc. SAM is showing two different operating stories at once. Demand remains soft, with weaker depletions, lower shipments and pressure across several major brands.
At the same time, pricing, mix and brewery productivity are helping margins. That divergence makes execution on newer products increasingly important while the company works through weak consumer take-away.
Boston Beer Volume Trends Point Lower
Second-quarter depletions declined 6%, while shipment volume fell 4.5% to roughly 2 million barrels. First-half shipments dropped 5.6%, modestly trailing a 5% decline in depletions.
Image Source: Zacks Investment Research
Distributor inventories averaged about 4.5 weeks on hand, consistent with the prior-year period. That suggests the weakness reflects consumer demand rather than excess wholesaler inventory.
Management maintained its full-year volume outlook for depletions and shipments to decline in the low- to mid-single-digit range. Current trends point toward the lower end of that range.
SAM Core Brands Keep Losing Ground
Shipments declined across Twisted Tea, Truly, Samuel Adams, Hard Mountain Dew and Dogfish Head. Gains in Sun Cruiser and Angry Orchard only partly offset the broader weakness.
Image Source: Zacks Investment Research
Twisted Tea remains pressured by lower sales velocity, reduced feature and display activity, competition from spirits-based hard teas and a shift away from larger pack sizes. The 12-pack format remains the largest source of volume decline.
Truly’s marketing and soccer-related promotions improved marketplace presence but did not generate the expected demand response. Boston Beer is now reducing spending behind the brand.
Molson Coors Beverage Company TAP remains a relevant comparison because it also competes across beer and flavored malt beverage categories. Constellation Brands STZ provides another useful industry reference, given its exposure to premium beer and broader alcohol demand trends.
Boston Beer's Margins Show Resilience
Boston Beer’s second-quarter gross margin expanded 60 basis points year over year to 50.4%. Pricing, favorable product mix, procurement savings and brewery efficiencies helped offset inflationary, commodity and tariff costs.
Internal production also improved. The company produced 84% of domestic volume at company-owned facilities in the quarter, up from 76% a year earlier.
Management expects domestic internal production to exceed 90% for the full year, compared with 86% in 2025. That shift should support better control over costs, capacity and supply-chain execution.
SAM Innovation Offers Selective Upside
Sun Cruiser delivered triple-digit depletion growth in the second quarter and continues to expand distribution. Angry Orchard grew for the fifth consecutive quarter, helped by Angry Orchard Crisp and Crisp Imperial.
Boston Beer is also expanding Sinless Vodka Cocktails in more than 30 states and LYTT Electric Coolers in more than five states. These launches are early, but they show where the company is trying to refresh the portfolio.
Still, innovation has not restored companywide volume growth. Larger established brands remain the main drag, keeping the operating outlook dependent on selective wins and sharper execution.
Boston Beer Signals Remain Defensive
The bottom line is that Boston Beer is protecting margins better than it is protecting volume. Pricing, mix and brewery efficiencies are helping profitability, but soft demand and brand-share pressure continue to limit the near-term setup.
The stock currently carries a Zacks Rank #5 (Strong Sell), which fits a backdrop of negative earnings-estimate revisions and weak near-term momentum. Its Growth Score of B and VGM Score of B point to relatively better growth and blended style characteristics.
Those positives are offset by a Value Score of C and a Momentum Score of F. Until demand trends improve, operating gains alone have not translated into a more favorable stock signal.
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Boston Beer Faces Weak Demand While Margins and Innovation Diverge

Boston Beer (SAM) came out with quarterly earnings of $3.65 per share, missing the Zacks Consensus Estimate of $4.77 per share. This compares to earnings of $5.45 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -23.48%. A quarter ago, it was expected that this brewer would post earnings of $1.85 per share when it actually produced earnings of $1.64, delivering a surprise of -11.35%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Boston Beer, which belongs to the Zacks Beverages - Alcohol industry, posted revenues of $568.34 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.63%. This compares to year-ago revenues of $587.95 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Boston Beer shares have lost about 10.9% since the beginning of the year versus the S&P 500's gain of 9.6%.
What's Next for Boston Beer?
While Boston Beer has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Boston Beer was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.48 on $553.87 million in revenues for the coming quarter and $9.51 on $1.94 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Beverages - Alcohol is currently in the bottom 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Molson Coors Brewing (TAP), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This beer maker is expected to post quarterly earnings of $1.52 per share in its upcoming report, which represents a year-over-year change of -25.9%. The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level.
Molson Coors Brewing's revenues are expected to be $3.11 billion, down 2.9% from the year-ago quarter.
Should You Invest in The Boston Beer Company, Inc. (SAM)?
Before you invest in The Boston Beer Company, Inc. (SAM), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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Boston Beer (SAM) Q2 Earnings and Revenues Miss Estimates

Molson Coors Beverage Company TAP is executing a long-term growth strategy that emphasizes strengthening its core beer portfolio while expanding into higher-growth beverage categories. Building on its “Acceleration Plan” and the recently launched “Horizon 2030” strategy, the company is working to evolve from a traditional brewing business into a diversified beverage company.
Premiumization remains a key component of Molson Coors’ growth strategy as it expands its portfolio of higher-margin products, including premium beers and flavored alcoholic beverages. The company is benefiting from the strong performance of its premium brands and leveraging strategic pricing actions and a favorable product mix to support revenue growth despite ongoing volume pressures.
The company is seeing strength in above-premium offerings such as Peroni, Blue Moon, Coors Banquet and Madri Excepcional, which are expected to play an increasingly important role in driving sales and profitability. Molson Coors continues to support value-oriented brands, including Miller High Life and Keystone, through targeted innovation initiatives and localized market execution.
Molson Coors’ Horizon 2030 strategy is expected to support sustainable top-line growth. The strategy centers on strengthening the company’s core brands, expanding its presence in the above-premium beer segment and accelerating growth in faster-growing beyond-beer categories. Molson Coors continues to invest in its commercial capabilities, technology and marketing initiatives while leveraging acquisitions, such as Fever-Tree and Monaco Cocktails, to diversify its portfolio and unlock new growth opportunities.
TAP’s cost savings to support long-term value creation appear encouraging. Such endeavors will position Molson Coors to capitalize on evolving consumer preferences, strengthen its competitive position and support sustainable long-term revenue and earnings growth.
TAP’s Price Performance, Valuation and Estimates
Shares of Molson Coors have lost 16.4% in the past six months compared with the industry’s rise of 4.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, TAP trades at a forward price-to-earnings ratio of 8.48X compared with the industry’s average of 15.32X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TAP’s 2026 earnings per share (EPS) shows a decline of 11.4% while that of 2027 indicates year-over-year growth of 4.2%. The company’s EPS estimate for 2026 and 2027 has been stable in the past 30 days.
Image Source: Zacks Investment Research
Molson Coors stock currently carries a Zacks Rank #3 (Hold).
Stocks to Consider in the Consumer Staples Space
United Natural Foods UNFI, which is the leading distributor of natural, organic and specialty food and non-food products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for United Natural Foods’ current financial-year sales indicates a drop of 2.1% from the prior-year level. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Medifast, Inc. MED, which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank #2 (Buy). MED missed the average earnings surprise by a sharp margin in the trailing four quarters.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 25.9% from the year-ago number.
Freshpet, Inc. FRPT, which manufactures and markets natural fresh foods, refrigerated meals, and treats for dogs and cats, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Freshpet’s current financial-year sales indicates growth of 9.5% from the prior-year level. FRPT delivered a trailing four-quarter earnings surprise of 49.4%, on average.
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Portfolio Diversification and Premiumization Fuel Molson Coors' Outlook

Key Points
PepsiCo maintains a dominant global presence with a diversified portfolio of snack and beverage brands and a critical partnership with Walmart.
Molson Coors Beverage is actively pivoting toward premium beer and ready-to-drink cocktails to offset declines in its traditional beer segments.
Which consumer defensive stock offers the right balance of stability and growth potential for your portfolio in 2026?
Choosing between stable dividends and turnaround potential often defines a portfolio strategy. For 2026, comparing snack powerhouse PepsiCo (NASDAQ:PEP) and brewer Molson Coors Beverage (NYSE:TAP) reveals two very different paths for investors.
PepsiCo dominates through its convenient foods and non-alcoholic drinks, leveraging a massive global distribution network. Molson Coors Beverage focuses on the beer market but is aggressively expanding into ready-to-drink cocktails and premium offerings. While both operate in the defensive consumer space, their recent financial trajectories suggest distinct risks and rewards.
The case for PepsiCo
The company sells iconic brands like Lay’s, Doritos, and Gatorade across 200 countries. It relies heavily on retail giant Walmart (NASDAQ:WMT) for approximately 14% of its net revenue. Customer concentration like this adds a layer of risk to the business. As of June 2026, the company no longer has subsidiary ownership of Pizza Hut after Yum! Brands (NYSE:YUM) sold that division. PepsiCo now focuses more on its direct delivery relationships, e-commerce, and the development of snacks that align with changing health trends.
In FY 2025, revenue reached approximately $93.9 billion, representing nearly 2.3% year-over-year growth. Net income for the period was approximately $8.2 billion, lower than the $9.6 billion reported in the previous year. The company carries a debt-to-equity ratio of approximately 2.5x. Free cash flow for the year was close to $7.7 billion, representing the cash generated after capital investments.
The case for Molson Coors Beverage
Molson Coors produces a wide variety of beers and beverages, including Coors Light and Miller Lite. The company is actively diversifying its portfolio into the beverage stock category through acquisitions such as Atomic Brands. It operates through a three-tier distribution system in the United States and has no single customer representing more than 10% of sales. This diversification helps the company reach a broader consumer base as traditional beer volumes face pressure.
During FY 2025, revenue was nearly $11.1 billion, representing a decline of roughly 4% from the prior fiscal year. The company reported a net loss of approximately $2.1 billion for the period. This loss follows a profitable fiscal year 2024 where the company earned more than $1.1 billion, illustrating the volatility of its current transition. These figures highlight the challenges of shifting a legacy business model toward more premium offerings.
As of its December 2025 balance sheet, the debt-to-equity ratio was close to 0.6x. This indicates a lower reliance on borrowed money compared to shareholder equity. Molson Coors Beverage produced nearly $1.1 billion in free cash flow during FY 2025. This cash generation is essential, as it fuels the company’s expansion into non-beer categories such as energy drinks and cocktails.
Risk profile comparison
PepsiCo faces significant risks from shifting consumer behaviors, including the rise of GLP-1 medications and increased price sensitivity. Its scale makes it a target for legal scrutiny, such as recent lawsuits regarding data privacy and product labeling. Furthermore, the business is vulnerable to commodity price fluctuations and geopolitical conflicts that can disrupt global supply chains. If the company fails to use its data analytics effectively to innovate, it could lose volume to lower-priced private-label alternatives.
Molson Coors Beverage must successfully integrate new acquisitions and premiumize its portfolio to offset declining beer consumption. It faces intense competition from Anheuser-Busch InBev (NYSE:BUD) and Constellation Brands (NYSE:STZ) in both traditional and emerging beverage categories. Operational risks such as labor strikes and the ongoing implementation of a global digital infrastructure could disrupt production. Additionally, increasing global scrutiny and mandatory health warning labels on alcohol products pose a long-term threat to demand in key markets.
Valuation comparison
Molson Coors Beverage appears to be the more value-oriented choice for investors as it trades at a significantly lower Forward P/E and P/S ratio than PepsiCo. The Forward P/E compares the stock price to expected earnings over the next year, while the P/S ratio compares the stock price to revenue.
Forward P/E
16.6x
8.1x
287.6x
P/S ratio
2.1x
0.7x
n/a
Sector benchmark uses the SPDR XLP sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Molson Coors’ primary beer brands, Coors Light and Miller Lite, benefited from the consumer backlash against Bud Light, but that is one of the few bright spots for a company that is struggling to grow beer sales as consumers drink less and increasingly opt for craft beer when they do drink. Wall Street sees 2026 as the third straight year of declining sales, with revenue expected to be a few million dollars lower than in 2025. The move into beverages besides beer is promising, but the business remains less than 10% of Molson Coors’ sales.
PepsiCo is best known for its beverages, including Pepsi, but it is primarily a food company. About 60% of PepsiCo’s revenue comes from snack brands like Lay’s and Tostitos. The rise of GLP-1s is moving consumers toward savory snacks and away from sweets, and PepsiCo is adjusting its product mix and packaging to accommodate this shift. Management says trends indicate savory snacks will outgrow food, benefiting its snack business. Pepsi seems to be more affected by rising U.S. consumer caution about spending, given its snack-food exposure, too.
Both companies are appreciated by investors for their reliable dividend payments. Molson Coors has the higher forward dividend yield at today’s price, at 4.95%, versus PepsiCo’s 4.15%.
Despite Molson Coors’ better dividend and cheaper ratios, investors should want to see a sales turnaround before investing. PepsiCo may be growing slowly, but it is still growing and is the stock to buy.
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PepsiCo vs. Molson Coors: Which Stock Will Quench Investor Thirst For Profits in 2026?

Molson Coors Beverage Company (TAP is one of the leading brewers, having a strong portfolio of well-established brands. The company is focused on strengthening its core beer business while expanding into faster-growing beverage categories under its Horizon 2030 strategy. It is focused on premiumization and innovation to strengthen its core beer portfolio.
The company is benefiting from stronger performance in premium brands and using targeted pricing and improved mix to aid revenue growth despite volume pressures. Management highlighted solid momentum in above-premium offerings such as Peroni, Blue Moon and Coors Banquet, while value brands like Miller High Life and Keystone are being supported through targeted innovation and localized execution.
Molson Coors’ Horizon 2030 strategy to drive sustainable top-line growth bodes well. The plan focuses on strengthening its core brands, expanding in above-premium beer and accelerating its presence in faster-growing beyond beer categories. The company continues to invest in commercial capabilities, technology and marketing, while leveraging acquisitions such as Fever-Tree and Monaco Cocktails to broaden its portfolio and enhance growth.
TAP’s cost savings to support long-term value creation appear encouraging. The company is executing a three-year $450 million cost savings program, including restructuring and supply-chain optimization initiatives, to offset inflation and fund strategic investments. Such actions, combined with Molson Coors’ disciplined capital allocation, position it to improve profitability and create long-term shareholder value.
Overall, Molson Coors is positioned to improve long-term growth through its Horizon 2030 strategy, continued premiumization, portfolio diversification beyond beer and disciplined cost-management initiatives. While sluggishness in the Americas business and macroeconomic pressures with a soft beer industry remain near-term challenges, the company's focus on operational efficiency, innovation and higher-margin brands should support sustainable growth.
TAP’s Price Performance, Valuation and Estimates
Shares of Molson Coors have lost 13.9% in the past three months compared with the industry’s drop of 1.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, TAP trades at a forward price-to-earnings ratio of 7.91X compared with the industry’s average of 14.99X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TAP’s 2026 earnings per share (EPS) shows a decline of 11.4% while that of 2027 indicates year-over-year growth of 4.2%. The company’s EPS estimates for 2026 and 2027 have been stable in the past 30 days.
Image Source: Zacks Investment Research
Molson Coors stock currently carries a Zacks Rank #3 (Hold).
Stocks to Consider in the Consumer Staples Space
United Natural Foods UNFI, which is a major distributor of natural, organic and specialty food and non-food products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for United Natural Foods’ current financial-year sales indicates a drop of 2.1% from the prior-year level. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Nomad Foods Limited NOMD, which manufactures and distributes frozen foods, currently carries a Zacks Rank #2 (Buy).
The consensus estimate for Nomad Foods’ current financial-year sales is expected to rise 0.5% from the year-ago reported figure. NOMD delivered a trailing four-quarter earnings surprise of 8.6%, on average.
Medifast, Inc. MED, which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED delivered an average earnings surprise of 65.5% in the last reported quarter.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 26% from the year-ago number.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Molson Coors Drives Growth on Premiumization and Other Strategies

For Immediate Release
Chicago, IL – July 8, 2026 – Today, Zacks Equity Research discusses Anheuser-Busch InBev BUD, Diageo Plc DEO, Constellation Brands Inc. STZ, Brown-Forman Corp. BF.B and Molson Coors Beverage Company TAP.
Industry: Alcoholic Beverages
Link: https://www.zacks.com/commentary/2949145/5-alcohol-stocks-to-watch-amid-changing-consumer-preferences
Players in the Zacks Beverages – Alcohol industry are navigating a period of structural change as evolving consumer preferences and cost pressures reshape the competitive landscape. Moderation trends, particularly among younger and health-conscious consumers, are weighing on long-term demand for traditional beer, wine and spirits, creating concerns over sustainable volume growth. At the same time, tariffs and elevated costs for packaging, freight, labor and agricultural inputs are pressuring margins, especially for companies with global supply chains and limited pricing power.
However, the industry also offers meaningful growth opportunities through innovation. Expanding demand for ready-to-drink cocktails, and low and no-alcohol beverages is creating revenue streams, while companies that diversify their portfolios and adapt to changing consumption habits are better positioned to offset volume headwinds.
For investors, success will likely depend on companies' ability to balance pricing power, cost discipline and product innovation while capitalizing on evolving consumer preferences. Leading players, including Anheuser-Busch InBev, Diageo Plc, Constellation Brands Inc., Brown-Forman Corp. and Molson Coors Beverage Company, look well-placed to capitalize on these trends.
About the Industry
The Zacks Beverages – Alcohol industry mainly comprises producers, importers, exporters, marketers and sellers of alcoholic beverages like beer, craft beer, ciders, wine, rum, whiskey, liqueurs, vodka, tequila, champagnes, brandy, amaretto, ready-to-drink (RTD) cocktails and malt. Some industry players also produce and sell non-alcoholic beverages like carbonated soft drinks, sparkling waters, bottled water, energy drinks, powdered and natural juices, and RTD teas.
The companies sell products through wholesalers and retailers like supermarkets, warehouse clubs, grocery stores, convenience stores, package stores, drug stores and other retail outlets. The industry participants also sell beer directly to consumers in cans and bottles at restaurants, pubs, bars and liquor stores. Some brewers operate brewpubs or tasting rooms at breweries, offering consumers the freshest beer.
What's Shaping the Future of Beverages - Alcohol Industry
Moderation Trend Pressure Alcohol Consumption: Moderation is becoming a structural headwind for alcohol companies. Younger consumers, particularly Gen Z, are drinking less, and health-conscious buyers across age groups increasingly favor balanced lifestyles. Consumers are shifting occasions away from traditional alcohol, and low or no-alcohol alternatives are gaining share.
For investors, this raises concern over long-term volume growth across beer, wine and spirits. Even if pricing supports revenues, weaker consumption can limit operating leverage and make growth more dependent on innovation. Companies with high exposure to legacy alcohol categories may face slower depletion trends, higher promotional needs and weaker earnings visibility if moderation continues to reshape drinking behavior.
Tariffs Could Squeeze Margins: Tariffs are emerging as a meaningful overhang for U.S. beverage alcohol companies with global sourcing and international supply chains. Higher duties on imported glass bottles, aluminum, packaging materials and select beverage imports can raise input costs, forcing producers to either absorb the increase or pass it on to consumers.
While premium brands have greater pricing flexibility, mass-market labels remain more vulnerable to demand erosion from higher shelf prices. Investors should watch for margin pressure, procurement disruptions and slower earnings growth, particularly among companies with significant import exposure or limited domestic sourcing capabilities.
Beyond tariffs, alcohol producers continue to navigate elevated costs across packaging, freight, labor and agricultural inputs. Although inflation has moderated from peak levels, cost volatility remains a key earnings risk, especially if companies are unable to fully offset higher expenses through pricing. Promotional activity may also increase as consumers become more value-conscious, pressuring the gross margin.
Innovation Beyond Traditional Alcohol Creates Growth Runway: Despite softer industry volumes, beverage companies are unlocking growth opportunities through innovation. Demand for ready-to-drink cocktails continues to outpace most traditional alcohol categories as consumers seek convenience, flavor variety and affordability.
At the same time, low and no-alcohol beverages are evolving into a meaningful profit pool rather than a niche offering, attracting consumers who want moderation without abandoning social drinking. Leading brewers and spirits companies are expanding product portfolios to address these changing occasions, allowing them to capture incremental demand instead of relying solely on traditional alcohol consumption. Successful innovation could offset category pressures and strengthen long-term market positioning.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Beverages – Alcohol industry is a 17-stock group within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #189, placing it at the bottom 23% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential.
Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms S&P 500
The Zacks Beverages – Alcohol industry has outperformed the broader sector and underperformed the S&P 500 in the past year.
The stocks in the industry have collectively returned 4.1% in the past year, whereas the Zacks Consumer Staples sector has risen 1.6%. Meanwhile, the Zacks S&P 500 composite has rallied 23.9%.
Beverages - Alcohol Industry's Valuation
Based on the forward 12-month price-to-earnings (P/E) ratio, commonly used to value Consumer Staples stocks, the industry is currently trading at 15.27X compared with the S&P 500’s 21.07X and the sector’s 17.26X.
Over the last five years, the industry traded as high as 24.1X, as low as 13.77X and at the median of 18.39X.
5 Alcohol Beverages Stocks to Keep a Close Eye On
None of the stocks in the Zacks Beverages – Alcohol space currently sports a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy). However, we have selected five stocks with a Zacks Rank #3 (Hold) to watch from the same industry. You can see the complete list of today’s Zacks #1 Rank stocks here.
Let us have a look at the companies.
Anheuser-Busch InBev: Also known as AB InBev, this is a global brewing leader with a portfolio of iconic brands spanning diverse geographies. Its leading positions across key markets and expansive global footprint provide meaningful scale advantages, enabling efficient operations and the ability to grow multi-country brands worldwide. The company continues to benefit from resilient consumer demand for its core brands, supported by strong business momentum, driven by disciplined execution, sustained brand investment and an accelerated digital transformation agenda. Premiumization remains a central growth lever, as consumers increasingly trade up within the beer category.
Beyond core beer, AB InBev is steadily expanding its Beyond Beer portfolio, encompassing ready-to-drink offerings, such as canned wines and cocktails, along with hard seltzers, ciders and flavored malt beverages. This diversification strategy is enhancing relevance across occasions and consumer segments, while providing an incremental growth runway and supporting top-line momentum. The Zacks Consensus Estimate for AB InBev’s 2026 sales and earnings suggests growth of 8.4% and 15.8% from the year-ago period’s reported figures. The consensus mark for the company’s 2026 earnings has moved down by a penny in the past seven days. The Zacks Rank #3 stock has gained 15.8% in the past year.
Diageo: The stock of this London-based leading beverage company has declined 22.4% in the past year. DEO operates in approximately 180 countries, and is involved in producing, distilling, brewing, bottling, packaging and distributing spirits, wine and beer. The company continues to place innovation and consumer moderation at the center of its long-term growth strategy, addressing evolving consumption patterns and diversifying its portfolio. Innovation remains a key driver, with strong momentum across tequila, whisky, beer and RTD formats.
Equally important is Diageo’s push into moderation, wherein it has established clear leadership in non-alcoholic spirits. The company is refining its $2-billion productivity program to drive efficiency across the business while ensuring long-term sustainable growth. A key focus is balancing cost savings with strategic reinvestment, particularly in marketing and brand activation. The Zacks Consensus Estimate for Diageo’s fiscal 2027 EPS has edged down 0.3% in the past 30 days. The consensus estimate for fiscal 2027 sales and earnings suggests declines of 1.4% and 1.8%, respectively, from the year-ago period’s reported figures. The company currently has a Zacks Rank #3.
Constellation Brands: The Victor, NY-based third-largest beer company and a leading, high-end wine company in the United States continues to benefit from a sharp focus on brand building and a steady cadence of innovation. The company’s premiumization strategy remains a key growth driver, led by the sustained strength of the Modelo and Corona brand families and continued traction across its Power Brands portfolio. Its beer business is benefiting from premium and above-premium trends, supported by growth in traditional beer and adjacent categories, such as flavored beer, seltzers, RTD spirits and flavored malt beverages.
STZ is actively investing to extend the momentum of its Power Brands, aligning innovation with evolving consumer preferences and delivering successful product launches. Meanwhile, the company’s digital momentum continues to build through platforms, such as Instacart, Drizly and retailer-owned channels, reflecting consumers’ growing preference for convenience-driven purchasing. The Zacks Consensus Estimate for STZ’s fiscal 2027 earnings per share has moved down 0.2% in the past seven days. The consensus estimate for fiscal 2027 earnings suggests a decline of 0.2% from the year-ago period’s reported figure. The Zacks Rank #3 stock has lost 23.4% in the past year.
Brown-Forman: Based in Louisville, KY, this is a global spirits company that manufactures, distills, bottles, imports, exports, markets and sells a broad portfolio of premium alcoholic beverages. The company’s growth strategy is anchored in premiumization, with a clear focus on high-quality, premium and super-premium spirits that support brand equity and margin resilience. The portfolio has been streamlined around core power brands such as Jack Daniel’s and Woodford Reserve, complemented by successful additions like the Jack Daniel’s and Coca-Cola RTD, and the integration of super-premium labels Gin Mare and Diplomático.
Emerging markets continue to provide a strong growth offset, driven by rising middle-class demand and momentum across the Jack Daniel’s family. Disciplined pricing, innovation, distribution evolution and tighter cost-control underpin long-term value creation despite near-term pressures. The Zacks Consensus Estimate for BF.B’s fiscal 2027 sales and earnings suggests growth of 0.4% and 11.8%, respectively, from the year-ago period’s reported figures. The consensus mark for the Zacks Rank #3 company’s fiscal 2026 earnings has moved up 1.8% in the past 30 days. BF.B has declined 9.5% in the past year.
Molson Coors: The stock of this Chicago, IL-based leading beverage company has declined 21.3% in the past year. TAP is on track with its revitalization plan, focused on achieving sustainable top-line growth by streamlining its organization and reinvesting resources into its brands and capabilities. Investments, partnerships and product launches, which are part of its revitalization plan, have been aiding the company.
Molson Coors has been committed to increasing its market share through innovation and premiumization. Intending to accelerate portfolio premiumization, TAP has been aggressively growing its above-premium portfolio in the past few years. The Zacks Consensus Estimate for Molson Coors’ 2026 EPS has been unchanged in the past 30 days. The consensus estimate for the Zacks Rank #3 company’s 2026 sales and earnings suggests declines of 0.1% and 11.4%, respectively, from the year-ago period’s reported figures.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Industry Outlook Highlights Anheuser-Busch, Diageo, Constellation Brands, Brown-Forman and Molson Coors Beverage

Constellation Brands, Inc. STZ presents investors with a familiar market question. A cheaper valuation can signal opportunity, but it can also reflect real pressure on earnings visibility and demand.
STZ’s premium beer portfolio remains the main support. Yet the stock’s recent underperformance, soft guidance and wine and spirits reset keep the value case from looking clean.
The Valuation Case for STZ
STZ trades at 10.97X forward 12-month earnings, below the Zacks sub-industry at 14.97X, the Consumer Staples sector at 17.1X and the S&P 500 at 21.2X. The discount is also steep relative to the stock’s five-year median multiple of 18.6X.
Shares are down 5.3% year to date and 23.4% over the trailing 12 months. That decline has pushed the stock close to the lower end of its five-year valuation range, which runs from 10.5X to 22.6X.
The company’s earnings base still has support. In first-quarter fiscal 2027, comparable earnings of $3.43 per share increased 7% year over year and beat the Zacks Consensus Estimate of $3.22.
Net sales declined 3% to $2.433 billion, but organic net sales increased 3%. That mix of reported pressure and organic improvement helps explain why the stock looks inexpensive but not without complications.
Constellation Brands Inc Price and EPS Surprise
Beer Remains the Core Support
The Beer segment generated about 93.8% of consolidated net sales in the first quarter of fiscal 2027. Its imported portfolio, anchored by Modelo Especial, Corona Extra, Pacifico and Victoria, remains central to STZ’s investment case.
Beer net sales rose 2% to $2.28 billion, backed by 1.8% shipment growth and favorable pricing. Depletions slipped only 0.3% in a volatile consumer backdrop, as gains from Pacifico, Victoria and Modelo Chelada helped offset declines in Modelo Especial and Corona Extra.
Anheuser-Busch InBev SA/NV BUD remains a relevant peer because it competes across global and local beer brands, including Budweiser, Michelob ULTRA and Stella Artois. Its scale highlights the competitive intensity facing STZ in premium beer and adjacent drinking occasions.
Molson Coors Beverage Company TAP is another useful comparison in beer, with brands such as Coors Light, Miller Lite, Blue Moon and Miller High Life. Its broad portfolio reinforces how shelf space, price-pack architecture and consumer occasions remain important battlegrounds.
The Warning Signs Behind the Discount
STZ’s cheaper multiple reflects more than broad market weakness. Management still expects fiscal 2027 enterprise organic net sales growth to range from a 1% decline to a 1% gain, with the same range projected for both Beer and Wine and Spirits organic net sales.
The Wine and Spirits business remains a drag. Segment net sales fell 47% year over year to $149.2 million in the first quarter, mainly because sales from divested assets were no longer part of the business.
Organic trends were better, with wine and spirits organic net sales up 8%, organic shipments up 7.7% and depletions up 6.6%. Still, the segment posted a comparable operating loss of $1.1 million, showing that the portfolio reset needs time to translate into better profitability.
Margin risks also remain visible. Beer operating margin was 39.0%, nearly flat with 39.1% in the prior-year period, as benefits from pricing and fixed cost absorption were partly offset by higher materials costs, tariffs, unfavorable product mix and increased spending.
What Investors Should Watch Now
The bottom line is that STZ has the traits of a value candidate, but the discount comes with operating caveats. Beer strength, cash generation and portfolio reshaping support the case, while weak demand visibility, wine and spirits transition costs and margin pressure explain the market’s caution.
The stock currently carries a Zacks Rank #4 (Sell), along with a Value Score of B, Growth Score of C, Momentum Score of B and VGM Score of B. The Value Score suggests the stock screens well on valuation characteristics, while the Growth Score points to a more mixed growth profile.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Scores are designed to complement the Zacks Rank rather than replace it. For STZ, favorable Value and Momentum Scores are offset by the weaker Rank, which reflects a less favorable near-term earnings estimate revision backdrop. That makes the stock one to monitor carefully rather than a straightforward bargain.
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Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	TAP	Industry	TAP	Industry	Volume, $
Yesterday 40.0 - 41.1	-0.11	1.88	7.32	1.83	60.51M
Week 39.7 - 41.7	-2.33	1.76	3.40	3.77	308.51M
Month 38.1 - 43.1	-2.09	2.92	6.95	5.20	1.62B
3 Months 38.0 - 44.0	-5.62	2.11	10.91	9.42	4.93B
6 Months 38.0 - 54.8	-18.36	0.21	17.53	15.81	10.15B
Year 38.0 - 54.8	-21.68	0.59	27.49	25.96	21.92B
3 years 38.0 - 70.9	-43.41	3.21	43.89	53.93	53.85B
5 years 38.0 - 70.9	-20.48	29.51	57.94	78.03	80.76B
All time 28.7 - 112.2	48.08	23.98	—	—	73.93B

Molson Coors Beverage Company

Price and volatility history

Risk ratios