The 4th of July and summertime go together. You can bet that traders around the country will be sipping on a few cold ones and Sam Adams beer will be one of the beverages of choice on this all-American holiday.
The Boston Beer Company (SAM), the country’s largest craft brewer, has enjoyed a healthy growth in its stock price this year. And now, it plans to introduce a new product, beer in a can, “the Sam Can” as its called by beer drinkers and break away from “it’s best served in a bottle tradition.” SAM announced that JetBlue Airways is going to make its “Sam Can” available on JetBlue flights.
Like it’s beer, SAM doesn’t exactly come cheap. The stock trades for 40 times trailing earnings compared to the P/E multiples of its competitors Molson Coors (TAP) at 22 and Anheuser-Busch InBev SA/NV (BUD) at 19 and doesn’t pay a dividend unlike its two competitors.
Still SAM’s run is being fueled by the continued boom in craft beers and is now a $2 billion business, growing much faster than its larger competitors. This 4th of July holiday may be a good time to pick-up some SAM in your portfolio.