5 Best Single Digit Stocks to Buy Now

3. Ambev S.A. (NYSE:ABEV)

Number of Hedge Fund Holders: 18    

Share Price as of October 21: $2.83

Ambev S.A. (NYSE:ABEV) distributes and sells beer, draft beer, carbonated soft drinks, other non-alcoholic beverages, malt, and food products. It is one of the premier single digit stocks to invest in. On July 28, the firm posted earnings for the second quarter of 2022, reporting a revenue of R$17.99 billion, up more than 14.4% year-on-year. 

At the end of the second quarter of 2022, 18 hedge funds in the database of Insider Monkey held stakes worth $185.7 million in Ambev S.A. (NYSE:ABEV), compared to 18 the preceding quarter worth $210.6 million.

In its Q2 2022 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and Ambev S.A. (NYSE:ABEV) was one of them. Here is what the fund said:

“This quarter, individual stock selection decisions led to a reduction in our overweight to Consumer Staples. We sold Ambev S.A. (NYSE:ABEV), Brazil’s dominant brewer with strong franchises across South and Central America, which we owned since 2003. Its profit margins have declined in recent years, and management’s strategy to restore them is to entice Brazilians (whose beer consumption is already high) to trade up to premium brands. Despite our high regard for Ambev’s management, we think this strategy will be unsuccessful so long as the Brazilian consumer is under financial pressure from inflation and high unemployment. Ambev is still a high-quality, growing company, but we think there are more appealing opportunities in Brazil and beyond.”