Goldman Sachs Penny Stocks: Top 12 Stock Picks

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

Goldman Sachs Equity Stake: $8.42 Million

Share Price: $3.05

Number of Hedge Fund Holders: 20

Ambev S.A. (NYSE:ABEV) is one of Goldman Sachs’ top penny stock picks. On February 12, Ambev S.A. (NYSE:ABEV) delivered mixed fourth-quarter and full-year results, with revenue surpassing consensus estimates by R$210 million, coming in at R$24.81 billion.

However, it was an 8.2% year-over-year decline, attributed to a 3.6% decline in consolidated volumes due to cyclical factors affecting consumption occasions. On the other hand, fourth-quarter profit dropped 9.9% year over year to R$4.53 billion, translating into earnings per share of R$0.28, down from R$0.31 in the same period last year.

Meanwhile, cash flow from operating activities declined 4.8% to R$13.91 billion, while full-year cash flow dropped 6.3% to R$24.45 billion. Amid the decline, Ambev affirmed its commitment to shareholder value by asserting a R$20 billion return through share buybacks and dividends.

Looking ahead, management commented, “We continue to be positive about the beer category. The continued strength of our portfolio and the success of our innovations reinforce our confidence that there are meaningful opportunities to grow the category, both by expanding our consumers’ base and the number of occasions where beer is present.”

Ambev S.A. (NYSE:ABEV) is a major Brazilian-based brewery and beverage company that produces, distributes, and sells a diverse portfolio of beer, carbonated soft drinks (CSDs), and other non-alcoholic beverages across the Americas. As a subsidiary of Anheuser-Busch InBev, it operates in 18 countries, with strong market leadership in Brazil.