AB InBev (BUD, $73.65) Gets a Rating Upgrade from RBC Capital Markets Analyst
RBC Capital Markets upgraded its recommendation of beverage maker AB InBev, following the latter’s debt refinancing.
Shares of the world’s biggest beer company got upgraded to a top pick rating by RBC analyst James Edwardes Jones. Jones indicated that AB InBev’s debt is under control, especially after the company refinanced parts of it.
After AB InBev borrowed a record $75 billion to buy SABMiller in 2016, the former’s debt level peaked at $100 billion. In January, AB InBev issued $15.5 billion in corporate bonds to pay off some of the debt due for repayment between 2021 and 2024 as well as 2026. Jones said, "The recent refinancing was sensible," and added, "It has replaced peaks of debt repayment with a smoother schedule which, at current exchange rates, should be doable from free cash flow, while significant appreciation in the US$ would be manageable."
Jones also suggested that AB InBev’s valuation should be gauged by its price-to-earnings ratio (which is relatively less expensive in this case) versus its enterprise value/EBITDA (relatively expensive) ratio. He cited the beer company’s non-cyclicality as a reason.
Last year, AB InBev’s stock prices suffered declines, apparently due to concerns over the company’s decreasing beer sales coupled with its burgeoning debt.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
BUD in downward trend: 10-day moving average broke below 50-day moving average on August 18, 2026
The 10-day moving average for BUD crossed bearishly below the 50-day moving average on August 18, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on August 11, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BUD as a result. In of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for BUD turned negative on August 10, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
BUD moved below its 50-day moving average on August 11, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BUD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BUD advanced for three days, in of 327 cases, the price rose further within the following month. The odds of a continued upward trend are .
BUD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 260 cases where BUD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating for company is (best 1 - 100 worst), which means the company is slightly undervalued. The valuation of the company is based on a proprietary formula which takes into account a set of fundamentals and gives us an estimate of the price per share for the company. We then compare this estimate with the current price per share. As a result, this company is rated as undervalued in the industry. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.662) is normal, around the industry mean (2.177). P/E Ratio (17.009) is within average values for comparable stocks, (17.236). Projected Growth (PEG Ratio) (1.803) is also within normal values, averaging (2.501). BUD has a moderately low Dividend Yield (0.017) as compared to the industry average of (0.037). P/S Ratio (2.533) is also within normal values, averaging (1.582).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. BUD’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a holding company whose subsidiaries manufactures and distributes alcoholic and non-alcoholic beverages
Industry FoodMeatFishDairy
Advertisement