Ambev SA (ADR) (NYSE:ABEV) has been declining over the past few trading sessions and is trading below its average volume of 17.4 million shares. It seems as if the investors have started to lose their hope in the stock. Since July 10, 2015, the stock has been trailing the S&P500 by 16.91%. Much of the current hype around the stock has been mainly due to its latest financial report, which is due to be reported by February 25th, before the start of the trading session.
Analysts have started to weigh in on the stock and expect that ABEV would have an EPS of $0.1. This figure is 0.00% up from the preceding year. A recent poll conducted by Zacks revealed that analysts rate the stock as a buy. Additionally, the analysts also believe that the company would reach an average price target of $5.75 per share.
Although no significant change in EPS is expected for the current year, the analysts believe that the EPS can climb to $0.25 over the course of the current year, with a growth rate of 2.9% over the next 3-5 years. In its 3Q2015, ABEV had announced an EPS of $0.05, missing the analyst estimates by $0.01. As per the “cockroach effect”, often used in marketing, there could be a negative surprise factor in the current quarter as well.
The company concentrates most of its business in South America, with a center of operations in Brazil. Added to this, Ambev has a distribution deal with PepsiCo and Lipton, which allows it to market products from the late, in South America. The market for consumer goods, in which ABEV operates, has seen an uptrend since the start of the year. Hence, analysts are asking their followers to invest in companies like ABEV, since they are well positioned for growth.
Ambev SA (ADR) (NYSE:ABEV) had a trade volume of 9.62 million shares and lost 1.53% during the February 18 session, to reach a close at $4.51.