5 Most Popular Small Cap Stocks to Buy

2. The Boston Beer Company, Inc. (NYSE:SAM)

Number of Hedge Fund Holders: 37

Market Cap as of May 19: $1.89 billion

The Boston Beer Company, Inc. (NYSE:SAM) produces and sells alcoholic beverages primarily in the United States. Its flagship beer is Samuel Adams Boston Lager.

On May 7, Morgan Stanley trimmed its price target on The Boston Beer Company, Inc. (NYSE:SAM) from $235 to $220, while maintaining an ‘Equal Weight’ rating on the shares. The lowered target still indicates an upside of over 23% from the current price level.

According to Morgan Stanley, the ongoing structural volume declines across the alcohol industry, and portfolio headwinds are expected to worsen even further due to the rising costs and broader macro pressure tied to the Middle East conflict.

The Boston Beer Company, Inc. (NYSE:SAM) also had a setback when it reported soft Q1 results last month, falling behind estimates in both earnings and revenue. The weakening alcohol demand led to depletions being down 4%, shipments down 6.9%, and revenue falling by 4.4% compared to the same period last year.

The Boston Beer Company, Inc. (NYSE:SAM) also narrowed its full-year adjusted EPS guidance to $8.50 to $10.50, from its prior outlook of $8.50 to $11.