If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Molson Coors Brewing (TAP - Free Report) . This company, which is in the Zacks Beverages - Alcohol industry, shows potential for another earnings beat.
When looking at the last two reports, this beer maker has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 37.82%, on average, in the last two quarters.
For the most recent quarter, Molson Coors was expected to post earnings of $0.36 per share, but it reported $0.62 per share instead, representing a surprise of 72.22%. For the previous quarter, the consensus estimate was $1.17 per share, while it actually produced $1.21 per share, a surprise of 3.42%.
Price and EPS Surprise
For Molson Coors, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Molson Coors has an Earnings ESP of +1.28% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 6, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Molson Coors Brewing?The final step today is to look at a stock that meets our ESP qualifications. Molson Coors Brewing (TAP - Free Report) earns a #3 (Hold) 14 days from its next quarterly earnings release on August 6, 2026, and its Most Accurate Estimate comes in at $1.54 a share.
Molson Coors Brewing's Earnings ESP sits at +1.28%, which, as explained above, is calculated by taking the percentage difference between the $1.54 Most Accurate Estimate and the Zacks Consensus Estimate of $1.52. TAP is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
TAP is part of a big group of Consumer Staples stocks that boast a positive ESP, and investors may want to take a look at Monster Beverage (MNST - Free Report) as well.
Slated to report earnings on August 6, 2026, Monster Beverage holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $0.60 a share 14 days from its next quarterly update.
For Monster Beverage, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.59 is +2.61%.
TAP and MNST's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Fifth Third Bancorp lifted its stake in Molson Coors Beverage Company (NYSE:TAP – Free Report) by 457.0% in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 57,237 shares of the company’s stock after buying an additional 46,961 shares during the period. Fifth Third Bancorp’s holdings in Molson Coors Beverage were worth $2,465,000 at the end of the most recent reporting period.
Other institutional investors have also added to or reduced their stakes in the company. Caxton Associates LLP bought a new stake in shares of Molson Coors Beverage in the 1st quarter worth approximately $202,000. United Services Automobile Association bought a new stake in shares of Molson Coors Beverage during the first quarter valued at approximately $215,000. Woodline Partners LP raised its stake in shares of Molson Coors Beverage by 38.7% in the first quarter. Woodline Partners LP now owns 14,546 shares of the company’s stock valued at $885,000 after purchasing an additional 4,056 shares in the last quarter. Geneos Wealth Management Inc. raised its stake in shares of Molson Coors Beverage by 32.9% in the first quarter. Geneos Wealth Management Inc. now owns 800 shares of the company’s stock valued at $49,000 after purchasing an additional 198 shares in the last quarter. Finally, First Trust Advisors LP raised its stake in shares of Molson Coors Beverage by 4.7% in the second quarter. First Trust Advisors LP now owns 413,578 shares of the company’s stock valued at $19,889,000 after purchasing an additional 18,566 shares in the last quarter. 78.46% of the stock is owned by institutional investors and hedge funds.
Molson Coors Beverage Stock Down 1.8% Shares of NYSE:TAP opened at $40.85 on Wednesday. Molson Coors Beverage Company has a 52 week low of $38.04 and a 52 week high of $54.82. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.38 and a current ratio of 0.54. The company’s fifty day moving average is $40.28 and its 200-day moving average is $44.19. The company has a market capitalization of $7.66 billion, a PE ratio of -3.84 and a beta of 0.42.
Molson Coors Beverage (NYSE:TAP – Get Free Report) last announced its earnings results on Friday, May 1st. The company reported $0.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.36 by $0.26. The business had revenue of $2.35 billion during the quarter, compared to analysts’ expectations of $2.33 billion. Molson Coors Beverage had a negative net margin of 16.14% and a positive return on equity of 9.79%. The firm’s revenue for the quarter was up 2.0% on a year-over-year basis. During the same quarter last year, the company posted $0.50 EPS. Equities research analysts predict that Molson Coors Beverage Company will post 4.8 earnings per share for the current fiscal year.
Molson Coors Beverage Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Friday, August 28th will be paid a $0.48 dividend. The ex-dividend date is Friday, August 28th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 4.7%. Molson Coors Beverage’s payout ratio is -18.05%.
Analyst Upgrades and Downgrades A number of equities research analysts have weighed in on the stock. Wall Street Zen downgraded shares of Molson Coors Beverage from a “buy” rating to a “hold” rating in a research note on Sunday, May 17th. Wells Fargo & Company dropped their price objective on shares of Molson Coors Beverage from $43.00 to $41.00 and set an “equal weight” rating for the company in a research note on Wednesday, July 8th. Jefferies Financial Group reduced their price objective on shares of Molson Coors Beverage from $43.00 to $41.00 in a report on Friday, June 12th. The Goldman Sachs Group lifted their target price on shares of Molson Coors Beverage from $48.00 to $50.00 in a research report on Friday, May 1st. Finally, Needham & Company LLC lowered their target price on shares of Molson Coors Beverage from $52.00 to $50.00 and set a “buy” rating on the stock in a research note on Friday, May 1st. Four investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, Molson Coors Beverage currently has a consensus rating of “Hold” and a consensus target price of $44.06.
View Our Latest Report on TAP
Insider Activity In related news, Director Geoffrey E. Molson sold 1,245 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $42.50, for a total transaction of $52,912.50. Following the sale, the director directly owned 9,871 shares in the company, valued at $419,517.50. This represents a 11.20% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 2.27% of the company’s stock.
About Molson Coors Beverage (Free Report)
Molson Coors Beverage Company is a leading multinational brewing and beverage enterprise formed through the 2005 merger of Canada’s Molson and the United States’ Coors. The company develops, markets and distributes an array of alcoholic and non-alcoholic beverages, focusing primarily on beer and ready-to-drink products. Its portfolio spans flagship brands such as Coors Light, Molson Canadian and Miller Lite, alongside craft-style offerings like Blue Moon and global imports including Carling and Staropramen.
In addition to its core beer business, Molson Coors has expanded into adjacent categories to capture evolving consumer tastes.
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Key Takeaways Molson Coors is pursuing Horizon 2030 to strengthen core brands and expand beyond beer categories.TAP is benefiting from momentum in premium brands like Peroni, Blue Moon and Coors Banquet.Acquisitions, cost savings and marketing investments are supporting Molson Coors' growth strategy. Molson Coors Beverage Company (TAP - Free Report) is executing a long-term growth strategy that emphasizes strengthening its core beer portfolio while expanding into higher-growth beverage categories. Building on its “Acceleration Plan” and the recently launched “Horizon 2030” strategy, the company is working to evolve from a traditional brewing business into a diversified beverage company.
Premiumization remains a key component of Molson Coors’ growth strategy as it expands its portfolio of higher-margin products, including premium beers and flavored alcoholic beverages. The company is benefiting from the strong performance of its premium brands and leveraging strategic pricing actions and a favorable product mix to support revenue growth despite ongoing volume pressures.
The company is seeing strength in above-premium offerings such as Peroni, Blue Moon, Coors Banquet and Madri Excepcional, which are expected to play an increasingly important role in driving sales and profitability. Molson Coors continues to support value-oriented brands, including Miller High Life and Keystone, through targeted innovation initiatives and localized market execution.
Molson Coors’ Horizon 2030 strategy is expected to support sustainable top-line growth. The strategy centers on strengthening the company’s core brands, expanding its presence in the above-premium beer segment and accelerating growth in faster-growing beyond-beer categories. Molson Coors continues to invest in its commercial capabilities, technology and marketing initiatives while leveraging acquisitions, such as Fever-Tree and Monaco Cocktails, to diversify its portfolio and unlock new growth opportunities.
TAP’s cost savings to support long-term value creation appear encouraging. Such endeavors will position Molson Coors to capitalize on evolving consumer preferences, strengthen its competitive position and support sustainable long-term revenue and earnings growth.
TAP’s Price Performance, Valuation and EstimatesShares of Molson Coors have lost 16.4% in the past six months compared with the industry’s rise of 4.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, TAP trades at a forward price-to-earnings ratio of 8.48X compared with the industry’s average of 15.32X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TAP’s 2026 earnings per share (EPS) shows a decline of 11.4% while that of 2027 indicates year-over-year growth of 4.2%. The company’s EPS estimate for 2026 and 2027 has been stable in the past 30 days.
Image Source: Zacks Investment Research
Molson Coors stock currently carries a Zacks Rank #3 (Hold).
Stocks to Consider in the Consumer Staples Space United Natural Foods (UNFI - Free Report) , which is the leading distributor of natural, organic and specialty food and non-food products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for United Natural Foods’ current financial-year sales indicates a drop of 2.1% from the prior-year level. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank #2 (Buy). MED missed the average earnings surprise by a sharp margin in the trailing four quarters.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 25.9% from the year-ago number.
Freshpet, Inc. (FRPT - Free Report) , which manufactures and markets natural fresh foods, refrigerated meals, and treats for dogs and cats, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Freshpet’s current financial-year sales indicates growth of 9.5% from the prior-year level. FRPT delivered a trailing four-quarter earnings surprise of 49.4%, on average.
GOLDEN, Colo. & MONTREAL--(BUSINESS WIRE)--The Board of Directors of Molson Coors Beverage Company (NYSE: TAP, TAP.A) today declared a regular quarterly dividend on its Class A and Class B common stock of US$0.48 per share, payable September 18, 2026, to stockholders of record on August 28, 2026. The quarterly dividend is payable to holders of Class A and Class B common stock of Molson Coors Beverage Company.
In addition, the Board of Directors of Molson Coors Canada Inc. (TSX: TPX.B, TPX.A) today declared a quarterly dividend of approximately CAD$0.67 (the Canadian dollar equivalent of the dividend declared on Molson Coors Beverage Company stock), payable September 18, 2026, to its Class A and Class B exchangeable shareholders of record on August 28, 2026. The dividends declared in respect of the Class A and Class B exchangeable shares are eligible dividends for Canadian tax purposes.
OVERVIEW OF MOLSON COORS BEVERAGE COMPANY
For more than two centuries, we have brewed beverages that unite people to celebrate all life’s moments. From our core power brands Coors Light, Miller Lite, Coors Banquet, Molson Canadian, Carling and Ožujsko to our above premium brands, including Madrí Excepcional, Staropramen, Blue Moon Belgian White and Leinenkugel’s Summer Shandy, to our value brands like Miller High Life and Keystone Light, we produce many beloved and iconic beers. While our history is rooted in beer, we offer a modern portfolio that expands beyond the beer aisle as well, including flavored beverages like Vizzy Hard Seltzer and Monaco, spirits and non-alcoholic beverages. We also have partner brands, such as Simply Spiked, ZOA Energy, and Fever-Tree, among others, through license, distribution, partnership and joint venture agreements. As a business, our ambition is to be the first choice for our people, our consumers and our customers, and our success depends on our ability to make our products available to meet a wide range of consumer segments and occasions.
To learn more about Molson Coors Beverage Company, visit molsoncoors.com.
ABOUT MOLSON COORS CANADA INC.
Molson Coors Canada Inc. ("MCCI") is a subsidiary of Molson Coors Beverage Company (“MCBC”). MCCI Class A and Class B exchangeable shares offer substantially the same economic and voting rights as the respective classes of common shares of MCBC, as described in MCBC’s annual proxy statement and Form 10-K filings with the U.S. Securities and Exchange Commission. The trustee holder of the special Class A voting stock and the special Class B voting stock has the right to cast a number of votes equal to the number of then outstanding Class A exchangeable shares and Class B exchangeable shares, respectively.
Molson Coors is currently facing a challenging operating environment created by a double whammy of declining volumes and rising input costs. The company has been able to mitigate most of the volume declines by raising prices and benefiting from a favourable mix shift towards more premium brands. To gain better control of its operating expenses, TAP also announced a large restructuring plan last February, targeting $450 million of cost savings over the next three years.
Key Takeaways Molson Coors is advancing Horizon 2030 by expanding premium beer and beyond-beer categories.TAP is benefiting from premium brands, pricing actions and a $450 million cost-savings program.TAP is investing in innovation, marketing and acquisitions to support long-term profitable growth. Molson Coors Beverage Company (TAP - Free Report) is one of the leading brewers, having a strong portfolio of well-established brands. The company is focused on strengthening its core beer business while expanding into faster-growing beverage categories under its Horizon 2030 strategy. It is focused on premiumization and innovation to strengthen its core beer portfolio.
The company is benefiting from stronger performance in premium brands and using targeted pricing and improved mix to aid revenue growth despite volume pressures. Management highlighted solid momentum in above-premium offerings such as Peroni, Blue Moon and Coors Banquet, while value brands like Miller High Life and Keystone are being supported through targeted innovation and localized execution.
Molson Coors’ Horizon 2030 strategy to drive sustainable top-line growth bodes well. The plan focuses on strengthening its core brands, expanding in above-premium beer and accelerating its presence in faster-growing beyond beer categories. The company continues to invest in commercial capabilities, technology and marketing, while leveraging acquisitions such as Fever-Tree and Monaco Cocktails to broaden its portfolio and enhance growth.
TAP’s cost savings to support long-term value creation appear encouraging. The company is executing a three-year $450 million cost savings program, including restructuring and supply-chain optimization initiatives, to offset inflation and fund strategic investments. Such actions, combined with Molson Coors’ disciplined capital allocation, position it to improve profitability and create long-term shareholder value.
Overall, Molson Coors is positioned to improve long-term growth through its Horizon 2030 strategy, continued premiumization, portfolio diversification beyond beer and disciplined cost-management initiatives. While sluggishness in the Americas business and macroeconomic pressures with a soft beer industry remain near-term challenges, the company's focus on operational efficiency, innovation and higher-margin brands should support sustainable growth.
TAP’s Price Performance, Valuation and EstimatesShares of Molson Coors have lost 13.9% in the past three months compared with the industry’s drop of 1.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, TAP trades at a forward price-to-earnings ratio of 7.91X compared with the industry’s average of 14.99X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TAP’s 2026 earnings per share (EPS) shows a decline of 11.4% while that of 2027 indicates year-over-year growth of 4.2%. The company’s EPS estimates for 2026 and 2027 have been stable in the past 30 days.
Image Source: Zacks Investment Research
Molson Coors stock currently carries a Zacks Rank #3 (Hold).
Stocks to Consider in the Consumer Staples Space United Natural Foods (UNFI - Free Report) , which is a major distributor of natural, organic and specialty food and non-food products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for United Natural Foods’ current financial-year sales indicates a drop of 2.1% from the prior-year level. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Nomad Foods Limited (NOMD - Free Report) , which manufactures and distributes frozen foods, currently carries a Zacks Rank #2 (Buy).
The consensus estimate for Nomad Foods’ current financial-year sales is expected to rise 0.5% from the year-ago reported figure. NOMD delivered a trailing four-quarter earnings surprise of 8.6%, on average.
Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED delivered an average earnings surprise of 65.5% in the last reported quarter.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 26% from the year-ago number.
Choosing between stable dividends and turnaround potential often defines a portfolio strategy. For 2026, comparing snack powerhouse PepsiCo (PEP 3.75%) and brewer Molson Coors Beverage (TAP +0.57%) reveals two very different paths for investors.
PepsiCo dominates through its convenient foods and non-alcoholic drinks, leveraging a massive global distribution network. Molson Coors Beverage focuses on the beer market but is aggressively expanding into ready-to-drink cocktails and premium offerings. While both operate in the defensive consumer space, their recent financial trajectories suggest distinct risks and rewards.
The company sells iconic brands like Lay’s, Doritos, and Gatorade across 200 countries. It relies heavily on retail giant Walmart (WMT 1.22%) for approximately 14% of its net revenue. Customer concentration like this adds a layer of risk to the business. As of June 2026, the company no longer has subsidiary ownership of Pizza Hut after Yum! Brands (YUM 1.70%) sold that division. PepsiCo now focuses more on its direct delivery relationships, e-commerce, and the development of snacks that align with changing health trends.
In FY 2025, revenue reached approximately $93.9 billion, representing nearly 2.3% year-over-year growth. Net income for the period was approximately $8.2 billion, lower than the $9.6 billion reported in the previous year. The company carries a debt-to-equity ratio of approximately 2.5x. Free cash flow for the year was close to $7.7 billion, representing the cash generated after capital investments.
The case for Molson Coors BeverageMolson Coors produces a wide variety of beers and beverages, including Coors Light and Miller Lite. The company is actively diversifying its portfolio into the beverage stock category through acquisitions such as Atomic Brands. It operates through a three-tier distribution system in the United States and has no single customer representing more than 10% of sales. This diversification helps the company reach a broader consumer base as traditional beer volumes face pressure.
During FY 2025, revenue was nearly $11.1 billion, representing a decline of roughly 4% from the prior fiscal year. The company reported a net loss of approximately $2.1 billion for the period. This loss follows a profitable fiscal year 2024 where the company earned more than $1.1 billion, illustrating the volatility of its current transition. These figures highlight the challenges of shifting a legacy business model toward more premium offerings.
As of its December 2025 balance sheet, the debt-to-equity ratio was close to 0.6x. This indicates a lower reliance on borrowed money compared to shareholder equity. Molson Coors Beverage produced nearly $1.1 billion in free cash flow during FY 2025. This cash generation is essential, as it fuels the company’s expansion into non-beer categories such as energy drinks and cocktails.
Risk profile comparisonPepsiCo faces significant risks from shifting consumer behaviors, including the rise of GLP-1 medications and increased price sensitivity. Its scale makes it a target for legal scrutiny, such as recent lawsuits regarding data privacy and product labeling. Furthermore, the business is vulnerable to commodity price fluctuations and geopolitical conflicts that can disrupt global supply chains. If the company fails to use its data analytics effectively to innovate, it could lose volume to lower-priced private-label alternatives.
Molson Coors Beverage must successfully integrate new acquisitions and premiumize its portfolio to offset declining beer consumption. It faces intense competition from Anheuser-Busch InBev (BUD +0.03%) and Constellation Brands (STZ +0.83%) in both traditional and emerging beverage categories. Operational risks such as labor strikes and the ongoing implementation of a global digital infrastructure could disrupt production. Additionally, increasing global scrutiny and mandatory health warning labels on alcohol products pose a long-term threat to demand in key markets.
Valuation comparisonMolson Coors Beverage appears to be the more value-oriented choice for investors as it trades at a significantly lower Forward P/E and P/S ratio than PepsiCo. The Forward P/E compares the stock price to expected earnings over the next year, while the P/S ratio compares the stock price to revenue.
MetricPepsiCoMolson Coors BeverageSector BenchmarkForward P/E16.6x8.1x287.6xP/S ratio2.1x0.7xn/aSector benchmark uses the SPDR XLP sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?Molson Coors’ primary beer brands, Coors Light and Miller Lite, benefited from the consumer backlash against Bud Light, but that is one of the few bright spots for a company that is struggling to grow beer sales as consumers drink less and increasingly opt for craft beer when they do drink. Wall Street sees 2026 as the third straight year of declining sales, with revenue expected to be a few million dollars lower than in 2025. The move into beverages besides beer is promising, but the business remains less than 10% of Molson Coors’ sales.
PepsiCo is best known for its beverages, including Pepsi, but it is primarily a food company. About 60% of PepsiCo’s revenue comes from snack brands like Lay’s and Tostitos. The rise of GLP-1s is moving consumers toward savory snacks and away from sweets, and PepsiCo is adjusting its product mix and packaging to accommodate this shift. Management says trends indicate savory snacks will outgrow food, benefiting its snack business. Pepsi seems to be more affected by rising U.S. consumer caution about spending, given its snack-food exposure, too.
Both companies are appreciated by investors for their reliable dividend payments. Molson Coors has the higher forward dividend yield at today’s price, at 4.95%, versus PepsiCo’s 4.15%.
Despite Molson Coors’ better dividend and cheaper ratios, investors should want to see a sales turnaround before investing. PepsiCo may be growing slowly, but it is still growing and is the stock to buy.
Key Takeaways Molson Coors is making Beyond Beer central to Horizon 2030 as it diversifies beyond traditional beer.Beyond Beer was the fastest-growing portfolio area in Q1 2026, led by Fever-Tree and Topo Chico Hard.Monaco Cocktails adds RTD scale, convenience-store reach and about 80 sales employees to support growth. Molson Coors Beverage Company (TAP - Free Report) is accelerating its transformation beyond traditional beer as management seeks new avenues for long-term growth. While beer remains the company's core business, faster-growing categories such as ready-to-drink (RTD) cocktails, hard seltzers and premium mixers are becoming increasingly important to diversify revenues and reach new consumers. TAP's Horizon 2030 strategy places Beyond Beer at the center of portfolio expansion, reflecting management's view that future growth will come from participating in a broader range of beverage occasions rather than relying solely on the mature beer category.
The strategy is already gaining traction. Management described Beyond Beer as the fastest-growing part of the portfolio during the first quarter of 2026, supported by brands such as Fever-Tree, Topo Chico Hard and the recently acquired Monaco Cocktails. Fever-Tree contributed meaningfully to first-quarter net sales and recently launched its first national U.S. advertising campaign. Meanwhile, Topo Chico Hard returned to growth following last year's regional refocusing. Molson Coors also completed the acquisition of Atomic Brands, adding Monaco Cocktails to establish a meaningful presence in the RTD market. Management expects Monaco to contribute roughly 1% of global net sales on a trailing 12-month basis while generating incremental profitability in its first year, despite being included in the portfolio for only nine months during 2026. The acquisition also brought approximately 80 sales employees, strengthening commercial execution across the Beyond Beer business.
Importantly, Molson Coors views Beyond Beer as more than a collection of new brands. The company is building dedicated commercial capabilities, expanding retail coverage and using acquisitions to address portfolio gaps while leveraging its existing distribution network. Management believes Monaco strengthens its convenience-store presence, while Fever-Tree and Topo Chico Hard broaden exposure to premium and fast-growing beverage segments. As these brands scale alongside continued marketing investments and distribution gains, Beyond Beer could evolve into one of Molson Coors' most important long-term growth engines.
TAP’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have lost 11.4% in the past six months, underperforming the Zacks Beverages - Soft Drinks industry’s growth of 18.2% and the broader Consumer Staples sector’s fall of 10.1%.
TAP Stock's Six-Month Performance
Image Source: Zacks Investment Research
Is TAP Stock a Value Play?Molson Coors shares are currently trading at a forward 12-month price-to-earnings (P/E) multiple of 8.43X, at a discount compared with the industry’s average of 15.94X. The stock is undervalued compared with its industry peers, offering compelling value to investors looking for exposure to the beverage segment.
TAP P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to ConsiderARKO Corp. (ARKO - Free Report) operates a chain of convenience stores in the United States. ARKO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ARKO's current fiscal-year sales implies a decline of 2.8%, while the same for current fiscal-year earnings implies growth of 93.3% from the year-ago reported figures. ARKO delivered a trailing four-quarter earnings surprise of 43.2%, on average.
Fomento Economico Mexicano (FMX - Free Report) is a leading multinational consumer company with operations spanning proximity retail, fuel, health, digital financial services, logistics and distribution, while also holding a controlling stake in Coca-Cola FEMSA, the world's largest Coca-Cola franchise bottler. The company presently flaunts a Zacks Rank #1.
FMX delivered a trailing four-quarter negative earnings surprise of 17%, on average. The Zacks Consensus Estimate for FMX’s current financial-year sales and EPS indicates growth of 17.5% and 115.3%, respectively, from the year-ago reported numbers.
The Vita Coco Company Inc. (COCO - Free Report) is a leading beverage company that develops, markets and distributes coconut water and other plant-based hydration products under brands such as Vita Coco, Farmers Organic and PWR LIFT across retail, e-commerce and foodservice channels worldwide. It currently sports a Zacks Rank #1.
Vita Coco delivered a trailing four-quarter earnings surprise of 11.7%, on average. The Zacks Consensus Estimate for COCO’s current financial-year sales and EPS indicates growth of 21.4% and 47.9%, respectively, from the year-ago reported numbers.
SummaryMolson Coors Beverage Company is rated Strong Buy, trading at deep discounts to peers despite solid cash flow and capital returns.TAP’s operational efficiency improved, with gross margin rising to 38.2% and operating income up nearly 39%, even as sales growth remained modest.Share buybacks and dividends continue, but aggressive repurchases amid negative free cash flow and a $513.9M cash balance drop warrant close monitoring.Valuation multiples—P/E 8.35x, EV/EBITDA 6.54x, Price/Cash Flow 3.97x—signal excessive market pessimism; stabilization in volumes or margins could unlock upside.nata_vkusidey/iStock via Getty Images
Today, we will discuss Molson Coors Beverage Company (TAP), one of the global giants in the beer and beverage industry, with a significant presence in North America, Europe, the Middle East, Africa, and Asia-Pacific. The company
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Molson Coors Brewing (TAP - Free Report) came out with quarterly earnings of $0.62 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.5 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +70.89%. A quarter ago, it was expected that this beer maker would post earnings of $1.17 per share when it actually produced earnings of $1.21, delivering a surprise of +3.42%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Molson Coors, which belongs to the Zacks Beverages - Alcohol industry, posted revenues of $2.35 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.93%. This compares to year-ago revenues of $2.3 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Molson Coors shares have lost about 9.2% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Molson Coors?While Molson Coors has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Molson Coors was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.81 on $3.19 billion in revenues for the coming quarter and $4.76 on $11.13 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Beverages - Alcohol is currently in the bottom 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Consumer Staples sector, BJ's Wholesale Club (BJ - Free Report) , has yet to report results for the quarter ended April 2026.
This wholesale membership warehouse operator is expected to post quarterly earnings of $1.05 per share in its upcoming report, which represents a year-over-year change of -7.9%. The consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level.
BJ's Wholesale Club's revenues are expected to be $5.39 billion, up 4.6% from the year-ago quarter.
Molson Coors Brewing (TAP - Free Report) reported $2.35 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 2%. EPS of $0.62 for the same period compares to $0.50 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $2.33 billion, representing a surprise of +0.93%. The company delivered an EPS surprise of +70.89%, with the consensus EPS estimate being $0.36.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Molson Coors performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Brand Volume - Consolidated: 15.07 million versus the three-analyst average estimate of 14.97 million.Financial Volumes (STWs)- Americas: 11.43 million versus 11.36 million estimated by two analysts on average.Financial Volumes (STWs)- EMEA & APAC: 3.54 million compared to the 3.5 million average estimate based on two analysts.Net Sales- Americas: $1.9 billion versus the three-analyst average estimate of $1.88 billion. The reported number represents a year-over-year change of +1%.Net Sales- Unallocated & Eliminations: $-5.5 million versus $-5 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +10% change.Net Sales- EMEA&APAC: $456.1 million versus the three-analyst average estimate of $461.17 million. The reported number represents a year-over-year change of +6.7%.View all Key Company Metrics for Molson Coors here>>>
Shares of Molson Coors have returned -1.1% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways TAP posted Q1 2026 adjusted EPS of $0.62, up 24%, beating the $0.36 consensus.Molson Coors net sales rose 2% to $2.351B, helped by price/mix and FX despite lower volumes.TAP bought Monaco Cocktails and boosted buybacks; 2026 outlook calls for flat sales and lower EPS/EBT. Molson Coors Beverage Company (TAP - Free Report) posted impressive first-quarter 2026 results, with both top and bottom lines increasing year over year and surpassing the Zacks Consensus Estimate.
The company’s adjusted earnings of 62 cents per share increased 24.0% year over year and were well ahead of the Zacks Consensus Estimate of 36 cents.
Net sales rose 2.0% from a year ago to $2,351 million, topping the consensus mark of $2,329 million by 0.94%. The growth was driven by favorable price and sales mix and favorable foreign currency, somewhat offset by lower financial volumes. Net sales rose 0.4% in constant currency basis.
TAP’s first-quarter results reflected a solid start to the year as the company advanced its Horizon 2030 strategy amid a volatile macro backdrop and limited near-term visibility. Management highlighted decisive actions to strengthen the business, including the acquisition of Monaco Cocktails to address a portfolio gap and an expanded share-repurchase program to underscore confidence in long-term value.
Molson Coors’ Q1 DetailsFinancial volumes decreased 2.9% year over year due to lower shipments across the Americas and EMEA&APAC segments. Brand volumes fell 3.1%, with a 3% dip in the Americas and a 3.4% decline in the EMEA&APAC segment.
Net sales were positively influenced by the price and sales mix, which increased 3% year over year, driven by a favorable sales mix and higher net pricing in the Americas segment. Net sales per hectoliter (hl) rose 5.1% on a reported basis and 3.1% on a constant-currency basis.
Gross profit increased 5.4% year over year to $897.2 billion, and the gross margin rose 130 basis points (bps) to 33% in the quarter.
Marketing, general and administrative expenses (MG&A) declined to $610.0 million from $653.2 million a year ago, a 6.6% reduction on a reported basis. On an underlying basis, MG&A decreased 9.1% in constant currency, highlighting a cleaner operating cost base entering the core selling season.
The main benefits came from lapping roughly $30 million of integration and transition costs tied to the prior-year Fevertree USA transaction and lower employee-related costs linked to the Americas restructuring plan. These positives were partly offset by incremental spending on the company’s global modernization ERP implementation.
Underlying earnings before taxes (EBT) increased 16.2% year over year to $147.9 million on a constant-currency basis, led by lower marketing, general and administrative expenses, increased net pricing in the Americas segment and a favorable mix from premiumization across both the Americas and EMEA&APAC. These gains were partly offset by material and manufacturing cost inflation, including an approximate $30 million headwind from Midwest Premium pricing, as well as lower financial volume.
TAP’s Segmental InformationAmericas: Net sales in the segment fell 1% year over year to $1.9 billion on a reported basis and also 0.4% on a constant-currency basis. The growth was due to favorable price and sales mix and favorable foreign currency impacts, somewhat offset by lower financial volume. Sales in the segment came ahead of the Zacks Consensus Estimate of $1.88 billion.
Americas financial volume declined 2.7%, mainly reflecting weaker U.S. volumes tied to share losses in the core and value portfolios, partially offset by favorable shipment timing. Americas brand volume fell 3.0%, including a 3.5% drop in the United States, due to softer share performance in core and value segments. Canada brand volume decreased 4.0%, primarily due to broader industry softness.
Price and sales mix lifted net sales by 3.1%, driven mainly by a stronger sales mix from improved brand mix, along with higher net pricing. Net sales per hectoliter rose 3.8% on a reported basis and 3.2% in constant currency.
EMEA & APAC: The segment’s net sales rose 6.7% year over year to $456.1 million on a reported basis and declined 1.2% on a constant-currency basis. Reported sales benefited from an improved price and sales mix, and favorable currency effects, partially offset by lower financial volumes. The price and sales mix improved 2.3%, driven by premiumization. The Zacks Consensus Estimate for the segment’s sales was pegged at $461 million.
Financial and brand volumes slipped 3.5% and 3.4%, respectively, mainly because volumes in the United Kingdom declined amid weaker consumer demand and a more intense competitive environment. The segment’s underlying EBT increased 47.4% year over year on a constant-currency basis, driven by lower financial volume and cost inflation related to materials and manufacturing expenses.
Financial Updates for TAPMolson Coors ended the first quarter with cash and cash equivalents of $382.6 million. As of March 31, 2026, the company had a total debt of $6.27 billion, resulting in a net debt of $5.89 billion.
Net cash provided by operating activities amounted to $2.5 million in the first quarter of 2026. Moreover, the underlying free cash flow was a cash outflow of $212.9 million for the three months ended March 31, 2026, improving by $51.7 million from the year-ago period. The smaller outflow primarily reflected stronger operating cash flow and reduced capital spending.
During first-quarter 2026, TAP spent $168.5 million on share repurchases (including brokerage commissions), up from $59.6 million in the year-ago quarter.
What to Expect From TAP in 2026?For 2026, Molson Coors expects net sales to be broadly flat on a constant-currency basis, within a range of plus or minus 1% compared with 2025. Underlying EBT is anticipated to decline in the range of 15-18%, while underlying EPS is anticipated to decrease 11-15%.
It expects underlying depreciation and amortization to be $720 million, plus or minus 5%. The company forecasts an underlying effective tax rate of 22-24% for 2026. Underlying net interest expenses are anticipated to be $260 million (plus or minus 5%).
The company estimates a capital expenditure of $650 million (plus or minus 5%) for 2026. The underlying free cash flow is expected to be $1.1 billion, plus or minus 10%.
Management also flagged quarterly volatility in the U.S., with second-quarter financial volumes expected to be 6-9% lower than 2025 and Midwest Premium inflation anticipated to be most pronounced in second quarter 2026.
Shares of this Zacks Rank #4 (Sell) company have lost 11.7% in the past three months compared with the industry’s 3.8% decline.
TAP Stock's Price Performance
Image Source: Zacks Investment Research
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The consensus estimate for Post Holdings’ current fiscal-year sales and earnings implies growth of 2.7% and 0.1%, respectively, from the year-ago figures. Post Holdings delivered a trailing four-quarter earnings surprise of 19.6%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a food company worldwide. It currently has a Zacks Rank #2. Tyson Foods delivered a trailing four-quarter earnings surprise of 16.5%, on average.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales indicates growth of 4.4% from the prior-year’s reported levels.
Ambev S.A. (ABEV - Free Report) engages in the production, distribution, and sale of beer, draft beer, soft drinks, malt and food, and other beverages. ABEV currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for ABEV’s current fiscal-year sales and earnings indicates growth of 14.7% and 5.6%, respectively.
Tigo Energy, Inc. (NASDAQ: TYGO) (“Tigo” or “Company”), a leading provider of intelligent solar and energy solutions, today announced the initial delivery of Designed and Assembled in USA module-level power electronics (MLPE) to EG4 Electronics. The shipment, under an agreement first announced at the RE+ tradeshow in 2025, includes Tigo custom 650W optimizers assembled at SVI in Vancouver, Washington, Cloud Connect Advanced (CCA) data-logging devices, and Tigo Access Point (TAP) units. EG4 will integrate Tigo CCA devices into EG4 inverters during manufacturing at an EG4 facility in Commerce, Texas, then bundle complete systems with Tigo optimizers and TAPs for distribution to installers nationwide. The complete system qualifies for the 45X optimized inverters, Materials Assistance Cost Ratios (MACR), and enhanced domestic content tax credits.
Assembling in the USA builds momentum to bring critical energy component production back to the United States and expands access to solar systems eligible for enhanced federal tax incentives. This approach helps minimize production risk, meets MACR requirements, enhances domestic content, and improves the economics of solar. Installers deploying EG4 systems with US-assembled Tigo MLPE devices can now offer customers the combined benefits of domestic manufacturing and the flexibility of the inverter-agnostic Tigo TS4 platform.
“We believe in energy autonomy for our customers just as much as we believe in manufacturing autonomy for American innovators, and this collaboration with Tigo allows us to make significant progress on both of those fronts,” said Aaron Waplington, President of EG4 Electronics. “This shipment is the first major milestone of our work with Tigo. Installers can now offer their customers systems that support domestic manufacturing while qualifying for enhanced tax credits.”
The custom 650W optimizers bundled with EG4 inverters are specifically configured to meet Materials Assistance Cost Ratios (MACR) and domestic content thresholds for the enhanced tax credit while maintaining the module-level optimization, monitoring, and rapid shutdown capabilities installers expect from the Tigo Flex MLPE platform. Tigo MLPE products work with EG4 inverters and hundreds of other inverter models, giving installers flexibility in system design while expanding options for domestically manufactured solar components.
“EG4 is at the forefront of re-shoring manufacturing for American solar innovations, and we are delighted to work in partnership with James and his team,” said Anita Chang, chief operating officer at Tigo Energy. “Tigo and EG4 are in alignment on some of the most critical success factors in solar, which include innovation and quality. We look forward to continuing to build American-made energy infrastructure together.”
To learn more about Tigo Flex MLPE, visit the Tigo website. For inquiries about Tigo products, contact the sales team here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260518128273/en/
GOLDEN, Colo. & MONTREAL--(BUSINESS WIRE)--Molson Coors Beverage Company ("MCBC," "Molson Coors" or "the Company") (NYSE: TAP, TAP.A, TAP 32; TSX: TPX.A, TPX.B) announced today that it has commenced an underwritten public offering (the “Offering”) of U.S. dollar-denominated senior notes (the “Notes”). The Offering is expected to close on or about May 27, 2026, subject to customary closing conditions.
Molson Coors intends to use the net proceeds of the Offering for general corporate purposes, including the repayment of the $2.0 billion 3.00% Senior Notes due 2026.
Citigroup Global Markets Inc., BofA Securities, Inc. and Goldman Sachs & Co. LLC are acting as joint book-running managers for the Offering.
The Offering is being made pursuant to an effective shelf registration statement (including a prospectus) (File No. 333-277183) filed with the Securities and Exchange Commission (“SEC”), which became effective upon filing. Before you invest, you should read the prospectus in that registration statement and the related preliminary prospectus supplement and other documents Molson Coors has filed or will file with the SEC for more complete information about Molson Coors and the Offering. You may get these documents for free by visiting EDGAR on the SEC’s website at www.sec.gov. A copy of the prospectus and related preliminary prospectus supplement for the Offering may be obtained by contacting: Citigroup Global Markets Inc. by mail at c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 by telephone at 1-800-831-9146 or by email at [email protected]; BofA Securities, Inc. by mail at NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, Attention: Prospectus Department or by email at [email protected]; Goldman Sachs & Co. LLC by mail at 200 West Street, New York, NY 10282, Attention: Prospectus Department, by facsimile at 212-902-9316, by telephone at 1-866-471-2526 or by email at [email protected].
This press release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any of the Notes or any other security, nor shall there be any sale of the Notes or any other security in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or other jurisdiction.
Overview of Molson Coors
For more than two centuries, we have brewed beverages that unite people to celebrate all life’s moments. From our core power brands Coors Light, Miller Lite, Coors Banquet, Molson Canadian, Carling and Ožujsko to our above premium brands including Madrí Excepcional, Staropramen, Blue Moon Belgian White and Leinenkugel’s Summer Shandy, to our value brands like Miller High Life and Keystone Light, we produce many beloved and iconic beers. While our history is rooted in beer, we offer a modern portfolio that expands beyond the beer aisle as well, including flavored beverages like Vizzy Hard Seltzer and Monaco, spirits and non-alcoholic beverages. We also have partner brands, such as Simply Spiked, ZOA Energy, Fever-Tree, among others, through license, distribution, partnership and joint venture agreements. As a business, our ambition is to be the first choice for our people, our consumers and our customers, and our success depends on our ability to make our products available to meet a wide range of consumer segments and occasions.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Such statements include, without limitation, Molson Coors’ plans and intentions regarding the Offering and the use of proceeds from the Offering. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including, without limitation, prevailing market conditions and other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential risk factors that could affect Molson Coors and its results is included in Molson Coors’ filings with the SEC, including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available at www.sec.gov. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Molson Coors does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.
Investors in Molson Coors Beverage Company (TAP - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the July 18, 2026 $30.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Molson Coors share, but what is the fundamental picture for the company? Currently, Molson Coors is a Zacks Rank #3 (Hold) in the Beverages - Alcohol Industry that ranks in the Bottom 35% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their estimates for the current quarter, while five have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter to move from $1.80 per share to $1.57 per share in the same time period.
Given the way analysts feel about Molson Coors right now, this huge implied volatility could mean there’s a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
On May 28, 2026, Molson Coors Beverage Co TAP shares fell 3.1% to a current price of $40.57. This decline follows a trend where the stock has seen a 52-week range between $40.37 and $54.82, indicating volatility in its recent price performance.
GF Value™ verdict: The current price of $40.57 is 29.5% below the GF Value™ estimate of $57.52.GF Score™: TAP has a GF Score™ of 64/100, which is considered above average.Most notable signal: Insider activity shows that insiders bought $0.1 million and sold $0.1 million in the last three months, indicating mixed sentiment. Is TAP Overvalued or Undervalued? The current market price of Molson Coors Beverage Co TAP at $40.57 suggests that the stock is undervalued when compared to the GF Value™ estimate of $57.52, reflecting a significant margin of safety of 29.5%. This valuation indicates a potential opportunity for investors looking for stocks trading below their intrinsic value. However, the GF Valuation label suggests that TAP is a possible value trap, which means that while it may appear undervalued, there could be underlying risks affecting its future performance. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Investors should approach this situation with caution, considering both the undervaluation indicated by the current price relative to GF Value™ and the potential risks highlighted by the GF Valuation label. The possibility of a value trap suggests that while the stock may be cheap, it may also be facing challenges that could hinder its recovery.
How Does TAP's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 8.6x 12.2x TAP is currently trading below its 5-year median P/E of 12.2x, with a forward P/E of 8.6x indicating a potentially attractive valuation compared to its historical performance. This P/E analysis aligns with the GF Value™ verdict that suggests the stock is undervalued, reinforcing the perspective that TAP may present a buying opportunity, albeit with noted risks.
What Does TAP's GF Score™ Tell Us? Metric Rating GF Score™ 64/100 Financial Strength 5/10 Profitability 6/10 Growth 3/10 Valuation 8/10 Momentum 2/10 The GF Score™ of 64/100 indicates that TAP is performing above average when compared to other stocks. The strongest area is the Valuation rank, which is rated 8/10, suggesting that the stock is attractively priced relative to its peers. Conversely, the weakest area is the Growth rank at 3/10, which indicates potential challenges in revenue or earnings growth. The mixed signals from the GF Score™ highlight the need for careful consideration of TAP's future growth prospects in relation to its current valuation.
What Are Insiders Doing with TAP Stock? Insider activity for Molson Coors Beverage Co TAP has seen both buying and selling in the last three months, with insiders purchasing $0.1 million worth of shares and selling a similar amount. This pattern suggests that insiders might have mixed feelings about the company's future performance. While purchases can indicate confidence in the stock's potential, simultaneous sales may reflect a desire to realize gains or manage risk. Investors should keep an eye on insider trading as it can provide additional context to the stock's outlook.
What This Means for Investors Based on the GF Value™ assessment, Molson Coors Beverage Co TAP is currently undervalued. However, the potential for a value trap and the mixed signals from insider activity and growth prospects necessitate caution. Investors should weigh the attractive valuation against the risks inherent in the company's current financial and operational challenges.
For the complete analysis, visit the Molson Coors Beverage Co TAP stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is TAP's GF Score™?
TAP has a GF Score™ of 64/100, indicating that it is positioned above average compared to its peers in terms of potential long-term returns.
Is TAP overvalued or undervalued?
According to the GF Value™, TAP is currently undervalued, with a stock price that is 29.5% below its estimated intrinsic value.
What is TAP's P/E ratio?
TAP's current P/E ratio is 8.6x, which is below its 5-year median P/E of 12.2x, suggesting that the stock is trading at a lower valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Molson Coors Beverage Company is upgraded to Strong Buy, as the valuation disconnect widens despite solid fundamentals and recovery potential. TAP maintains robust cash flow and a healthy balance sheet and offers a potential double-digit combined dividend-plus-buyback yield, which is covered by the underlying free cash flow. Management targets $450 million in cost savings by 2029, network modernization, and premiumization to offset macro and competitive pressures.
Key Takeaways Molson Coors Q1 underlying pretax income grew 16.2% y/y and underlying EPS rose 24% despite volume pressure.TAP's $450M savings plan and 9.1% MG&A drop helped absorb higher aluminum and fuel costs.TAP gained mix from beyond beer (Fever-Tree, Topo Chico Hard and Monaco) and premium brands. Despite ongoing volume challenges across parts of its business, Molson Coors Beverage Company (TAP - Free Report) delivered strong profitability growth in the first quarter of 2026, highlighting the effectiveness of its cost discipline and portfolio strategy. Underlying pretax income increased 16.2%, while underlying earnings per share jumped 24%, even as the company operated in a challenging consumer and industry environment.
A key driver of profitability has been the company’s aggressive focus on cost savings. Molson Coors continues to advance its three-year, $450-million cost-saving program through restructuring actions, supply-chain optimization and operational efficiencies. These initiatives have helped offset inflationary pressures from higher aluminum, fuel and Midwest Premium costs. Management also reported a 9.1% decline in MG&A expenses in the quarter, aided by lower employee-related costs and the absence of prior-year transition expenses.
Portfolio diversification is another important contributor. Growth in higher-margin categories, such as beyond beer, including Fever-Tree, Topo Chico Hard and the recently acquired Monaco Cocktails brand, is helping improve the revenue mix. The company also continues to benefit from premium brands like Peroni and Blue Moon, while maintaining pricing discipline and capturing mix gains from premiumization.
Molson Coors’ strong balance sheet and cash-generation capabilities provide flexibility to invest in growth initiatives, pursue acquisitions, and return cash to shareholders through dividends and share repurchases. While macroeconomic uncertainty and category volume pressure remain concerning, management believes that its cost initiatives, premiumization efforts and expanding beyond-beer portfolio position the company to sustain profitability and create long-term shareholder value.
The Zacks Rundown for TAPThis Zacks Rank #3 (Hold) company’s shares have lost 6.3% in the past three months against the industry’s growth of 8.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, TAP trades at a forward price-to-earnings ratio of 8.42X, lower than the industry’s average of 15.32X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TAP’s 2026 earnings implies a year-over-year decline of 11.4%, while the same for 2027 earnings suggests growth of 4.2%.
Stocks to ConsiderFomento Economico Mexicano (FMX - Free Report) , alias FEMSA, operates across retail, beverages, digital, health, fuel, logistics and distribution, anchored by OXXO and Coca-Cola FEMSA. FEMSA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FEMSA’s 2026 sales and earnings indicates growth of 17.5% and 115.3%, respectively. The company has delivered a trailing four-quarter negative earnings surprise of 16.99%, on average.
The Vita Coco Company Inc. (COCO - Free Report) is a beverage company that develops, markets and distributes coconut water, plant-based drinks, protein beverages and private-label products across global retail and foodservice channels. COCO currently flaunts a Zacks Rank #1.
The Zacks Consensus Estimate for Vita Coco's current fiscal-year sales and earnings indicates growth of 47.9% and 14.6%, respectively. The company has delivered a trailing four-quarter earnings surprise of 11.7%, on average.
Ambev S.A. (ABEV - Free Report) engages in the production, distribution and sale of beer, draft beer, soft drinks, malt and food, and other beverages. ABEV currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for ABEV’s current fiscal-year sales and earnings indicates growth of 16.7% and 6.4%, respectively.
