5 Best Alcohol Stocks To Buy Heading Into 2023

2. Molson Coors Beverage Company (NYSE:TAP)

Number of Hedge Fund Holders: 34

Molson Coors Beverage Company (NYSE:TAP) is a Colorado-based company that manufactures, markets, and sells beer and other malt beverage products in the Americas, Europe, Middle East, Africa, and Asia Pacific. The company provides flavored malt beverages, craft, and ready-to-drink beverages. On November 1, Molson Coors Beverage Company (NYSE:TAP) reported a revenue of $2.94 billion, up 4.3% year-over-year, beating Wall Street estimates by $50 million. The revenue also increased 7.9% in constant currency due to positive net pricing and favorable sales mix resulting from a premium portfolio.

On October 10, Wedbush analyst Gerald Pascarelli initiated coverage of Molson Coors Beverage Company (NYSE:TAP) with a Neutral rating and a $50 price target. The analyst said Molson Coors Beverage Company (NYSE:TAP) has made “great strides” in executing on its revitalization plan. However, in the present environment, Molson Coors Beverage Company (NYSE:TAP) seems to be hugely benefitting from easy comps and fresh distribution gains on new offerings which will need to be cycled at the beginning of 2023.

According to Insider Monkey’s data, 34 hedge funds were long Molson Coors Beverage Company (NYSE:TAP) at the end of Q2 2022, compared to 36 funds in the prior quarter. Cliff Asness’ AQR Capital Management is the leading position holder in the company, with 1.60 million shares worth $87.5 million. 

Here is what Argosy Investors has to say about Molson Coors Beverage Company (NYSE:TAP) in its Q2 2021 investor letter:

“TAP (+52% from August 2020 purchase to sale) was never intended to be a core position. I expected a couple of years of deleveraging and perhaps some excitement around the hard seltzer category, but the stock price increased faster than I expected. I have not fully exited these positions as I rarely do all in one trade, but hopefully this gives some perspective into my thinking on selling so quickly.”