Buy This Exact Stock – on This Exact Date
Today I’d like to share with you one of my first companies to buy when this pandemic clears up… Anheuser-Busch (NYSE: BUD).
Here’s why…
On a global scale, Anheuser-Busch has an estimated global market share of 28%. That’s massive.
As I’m sure you know, liquor stores remain open right now – as they’re deemed “essential” – during this stay-at-home mandate.
So it’s not a surprise to learn that in the month of March, overall alcohol sales from liquor stores were up 55% from 2019 levels.
But at the same time, since bars and restaurants remain closed, alcohol companies are still under a great deal of pressure, despite being recession-resistant sin stocks.
In particular, Anheuser-Busch gets 25% of its total revenues from bars and restaurants – and that entire segment of the company’s business will be virtually zero from mid-March through June.
Over in China, sales from duty-free stores (plus other shops in travel locations) dropped and will continue to drop up to 80% through June.
So you have strong March sales from liquor stores combined with zero sales coming in from the bar, restaurant and travel location segments.
As a result, Anheuser-Busch recently withdrew its earnings outlook for 2020 – and Pernod Ricard forecast a 20% drop in profit.
As of today, the company carries a forward price-to-earnings ratio of 12.97.
Anheuser-Busch’s share price is just under $45, which is 57% below its 52-week high.
So, in my view, when this entire world mess gets cleaned up, Anheuser-Busch will be a screaming buy. I’m targeting sometime in early May to start the accumulation process.
Action Plan: Why not buy Anheuser-Busch right now?
Well, it’s a timing issue. You see, historically speaking, 80% of bear market moves have retested the lows before truly bottoming and bouncing.
So I think the exact time to start accumulating shares of Anheuser-Busch won’t come until early May – once we retest the lows here in April. It’s just a safer move. Let’s say Monday, May 4. That’s when it makes sense to start adding shares.
To get in on the action, join me in The War Room today!