Anheuser-Busch InBev NV (ADR) (BUD), SABMiller plc (SAB), Constellation Brands, Inc. (STZ): The Secret Company You Should Be Buying

Final Foolish thoughts

SABMiller plc (LON:SAB) is the one most negatively affected by this deal. It gains nothing through the deal and is now faced with one more major competitor. Unless SABMiller plc (LON:SAB) can really stir up consumer interest, this deal will result in SABMiller plc (LON:SAB) losing market share in the Americas, since its two main competitors have major expansions in the works.

Anheuser-Busch InBev NV (ADR) (NYSE:BUD) In Bev will benefit from this deal by being able to increase revenue in Mexico and Latin America. This is a high-growth market so look for this acquisition to pay off.

Constellation Brands, Inc. (NYSE:STZ) will gain the most from this deal. However, one thing to be aware of with Constellation is that shares aren’t heavily traded. Its average three-month volume is 4.8 million shares, and that number is a little distorted because of wild trading on a few days when news of this deal was released. So its stock could be very volatile.

Constellation is set to double profits and revenue this year, launching it into the number-three position among beer companies in the US. Even though the stock shot up after the deal was revealed, there is still plenty of room to grow. Look for both the finalization of the deal in June and future earnings reports to boost the stock.

The article The Secret Company You Should Be Buying originally appeared on Fool.com and is written by Sean Sullivan.

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