The S&P/TSX Composite Index plummeted 487 points on Friday, November 26. Markets all around the world were pummeled after the emergence of the Omicron COVID-19 variant in South Africa. Nations have moved quickly to restrict travel and zero-in on any potential cases within their borders.
Today, I want to look at two wine and beer stocks that are worth targeting right now. Alcohol sales shot up in the early stages of the pandemic and have remained steady over the past two years. These industries also historically perform well during the holiday season.
Andrew Peller (TSX:ADW.A) is a Grimsby-based company that is engaged in the production, bottling, and marketing of wines and craft beverage alcohol products in Canada. Its shares have plunged 21% in 2021 as of close on November 26. The company released its second quarter fiscal 2022 results on November 10.
Sales fell 5% year-over-year in the second quarter. However, it delivered solid growth adjusting for pandemic-related trade channel closures. Net earnings rose to $13.1 million or $0.31 per Class A share – up from $12.7 million or $0.30 per Class A share in the previous year. Shares of Andrew Peller possess a very attractive price-to-earnings ratio of 5.4. It last had an RSI of 31, putting it just outside of technically oversold territory.
Big Rock Brewery (TSX:BR) is a Calgary-based producer, marketer, and distributor of craft beers, cider, and ready-to-drink beverages. Its shares have climbed 25% in the year-to-date period. The beer industry has taken a hit due to the meteoric rise of seltzers in recent years. However, Big Rock still posted revenue growth compared to the third quarter of 2020.
