Beer versus the Stock Market

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Did you know that there is a 94% correlation between the
price of beer in Iceland and the S&P 500
, according to the Hussman Funds Weekly Market Comment that was published earlier this year? If you look at the share price of Anheuser-Busch InBev (BUD) over the last six month, and compare it to the S&P 500, they practically overlap each other since August, with both being up almost 10% over that period.


BUD has a trailing price to earnings ratio of 13, a forward PE of 18.6, and a price to earnings growth ratio of 2.87. The stock pays a CD beating yield of 1.8%.


However, if you look at the chart of Boston Beer Company (SAM) over the same period, it was up about 70%. SAM's ratios are a bit high at 51.6 trailing PE and 39.9 forward PE, with a very high 4.54 PEG ratio.


Molson Coors Brewing Company (TAP) pays one of the highest yields of the group at 2.4%. It trades at 17.4 times trailing earnings and 12.9 times forward earnings, with a PEG of 3.46.

To access a free list of all the
beer stocks
, five of which pay dividends, go to WallStreetNewsNetwork.com.


Disclosure: Author owns SAM.

By Stockerblog.clm


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