Top Stock Picks for Summer 2021: Molson Coors Beverage (TAP)

The beverage company is showing potential for a trend change

Managing Editor
May 18, 2021 at 9:24 AM
facebook twitter linkedin


We don't buy the "sell in May and go away" song and dance. We are here for spotting opportunities that others don't see, so stay tuned as we highlight Bernie Schaeffer and his trading team's top stock picks to buy in May and hold through the summer months! To access the entirety of Schaeffer's Top Summer 2021 Stock Picks report, click here.

Alcohol behemoth Molson Coors Beverage Company (NYSE:TAP) suffered a prolonged downtrend from mid-2016 until last September, when the equity hit an 11-year low of $32.11. Since, TAP has been in rapid recovery mode, now up 29% in 2021, recently experiencing a series of higher highs and lows, with potential for a trend change. For even more peace of mind, Molson is an established brand that is fundamentally sound, trading at 13 times its forward earnings and 1.2 times its sales.
 
It’s no surprise breweries had taken the food and beverage industry by storm pre-pandemic, but outside businesses have managed to mostly adapt to the new environment. For Molson Coors Beverage, the company doubled its market share in the seltzer category last year and revealed a new partnership with Coca-Cola (KO) to produce and distribute sparkling water product Topo Chico. With restaurants and the wider economy opening up amid a raising vaccine rate in the U.S., the summertime will more than likely bring a fresh surge in product consumption. 

 

Molson Coors Beverages (TAP) Stock Pick for Summer 2021

 

In terms of analyst outlook, TAP looks ripe for upgrades. Specifically, six of the nine brokerage firms in coverage sport a tepid "hold," "sell," or "strong sell" rating on the security. Meanwhile, short interest looks to be building, up nearly 60% year-to-date, rising alongside the shares of TAP. This accounts for 9.4% of the stock’s total available float, and would take short sellers over one week to buy back their bearish bets, at the stock’s average pace of daily trading.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners