Ambev S.A. (NYSE:ABEV) is one of the best undervalued stocks to buy under $50. Bank of America Securities analyst Isabella Simonato maintained a Hold rating on Ambev S.A. (NYSE:ABEV) on November 3. The rating update followed Ambev S.A.’s (NYSE:ABEV) fiscal Q3 results released on October 30, with net revenue (organic) for the quarter rising 1.2% compared to last year.
Management stated that a 7.4% net revenue per hectoliter growth drove top-line performance. In addition, normalized EBITDA rose by 2.9%, with all the company’s business units delivering growing or flat EBITDA. Normalized EBITDA margin expanded by 50 bps to 33.9%, attributed to effective revenue and costs management by the company.
Bolstered by cost management and effective revenue, gross margin also expanded by 10 bps to 51.5% and normalized EBITDA margin expanded by 50 bps to 33.9%. In addition, high cash taxes led to cash flow from operating activities to drop by 14.7% compared to R$8.108 billion in fiscal Q3 2024.
Ambev S.A. (NYSE:ABEV) produces, distributes, and sells beverages. Its offerings include carbonated soft drinks, beer, and other non-alcoholic and non-carbonated products. The company’s operations are divided into the following geographical segments: Brazil, Central America and the Caribbean (CAC), and Canada.
While we acknowledge the potential of ABEV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
