NYSE:SAM Boston Beer Company, Inc. (The)
After missing 4 earnings reports the stock has taken quite a hit, down almost $1,000 per share since April 21'. However it found support in the 288 range and bounced aprox. 30% and then a positive earning report beating estimates, 20 day EMA positive crossover of the 100 day EMA supports uptrend as the 20 EMA is appearing to become support. The only problem I see is it is still trading under the 200 day EMA and the trend could also be affected by upcoming earnings in October. Looking at the chart and financials I believe it has 3 gaps to fill on the upside, it is currently trading at 381 and has gaps at 471, 747, and 907 respectively. In April of 21' it was trading at $1,350 at its peak on revenue of aprox. 550 Million, Net Income of 65 Million, and Gross Profit of 250 Million. As of now the company recorded revenue of 616 Million, Net Income of 53 Million, and Gross Profit of 265 Million. As revenue and gross profit has increased and a positive earnings report in July I believe it has room to the upside as the market is driven by financials, all be it net income is still down 10 Million (mostly due to over estimations of Truly Seltzer) it is seeing strength in its ''Beyond Beer'' brands and Twisted Tea expanded its number one position in the FMB category as well as Angry Orchard is showing prominent command in the hard cider category. They are also expecting a launch of Hard Mountain Dew, if consumers take a liking to that and their other brands continue strength I believe it is possible to fill the 471 gap before FY22 ends, as for the other gaps it could take some more time. It is also noted beer sales have a potential to rise in times of economic downturn. I will remain bullish unless it breaks the 288 range.