However, I don’t expect them to be simply short-term performers. While the festive St. Patrick’s Day period provides an annual revenue tailwind, the companies I’ve identified have solid, long-term fundamentals and growth strategies that make them attractive holdings year-round.
What’s better is these companies are in unsaturated industries and sectors from an investor’s standpoint, providing ample opportunity for future growth and market share gains. For instance, the alcohol beverage market is highly fragmented, with even major players having plenty of growth potential. The valuations of these companies are also muted, in my opinion, as investors’ dollars are tied up in mostly speculative investments like tech stocks and cryptocurrencies.
So here are three St. Patrick’s Day stocks for you to consider adding to your portfolio as we gear up for the celebrations.
Diageo (DEO)
Diageo (NYSE:DEO) is a global leader in alcoholic beverages. Its extensive portfolio includes Guinness, a beer closely associated with St. Patrick’s Day.
Guinness is a dry stout originally brewed in Dublin, with a strong Irish heritage. Diageo heavily markets and promotes Guinness around St. Patrick’s Day, tapping into the holiday’s spirit with green-themed advertising.
Now could be a good time to invest in DEO. Fiscal 2023 saw a net cash flow from operating activities of 3 billion Great British Pounds (GBP) and a free cash flow of GBP 1.8 billion. Meanwhile, a new return of capital program of up to GBP 1 billion was announced, following the completion of GBP 1.4 billion of return of capital in fiscal 2023.
Furthermore, the company’s guidance for fiscal 2023 to 2025 targets organic sales growth of 5% to 7% and organic operating profit growth of 6% to 9%.
The company’s valuation is also attractive, with its forward sales and earnings multiples being lower than its trailing twelve-month comparables. These multiples are also low, at 16 times for earnings and just 3.8 times sales.
DEO is perhaps one of those most iconic St. Patrick’s Day stocks to consider.
Anheuser-Busch InBev (BUD)
Anheuser-Busch InBev (NYSE:BUD) is a behemoth in the beer industry, with a portfolio that includes Budweiser, Corona and Stella Artois.
While not an Irish company itself, BUD capitalizes on St. Patrick’s Day through specialty beer releases and promotions. Its popular Irish red lager, Budweiser Red Light, is marketed heavily around the March 17th celebration. I think we could also see an appreciable bump in sales for the company over the holiday.
I think that BUD is one of those underappreciated stocks in the market that is navigating some short-term headwinds. The U.S. market experienced a 17.3% year-over-year revenue decline in Q4, significantly impacted by Bud Light’s sales downturn.
The company’s share has made some big swings year to date and is currently flat with a return of 0.5%.
For 2024, AB InBev is optimistic, projecting an EBITDA growth of 4% to 8%. BUD is also making concerted efforts to further market share and consumer trust in the U.S. Alongside exploring new sports partnerships and marketing strategies, St. Patrick’s Day could be a large part of that approach.
Boston Beer (SAM)
Boston Beer (NYSE:SAM), the maker of Samuel Adams, is celebrated for championing the craft beer movement. However, it has specialty beers that it also heavily promotes around St. Patrick’s Day. Its Angry Orchard hard cider brand includes the popular Irish-style red ale called “The Muppet.” Boston Beer also releases limited-edition beers and ciders for the holiday, which can be quite popular amongst consumers.
Things are looking positive for SAM for FY2024. Zacks says EPS is projected to surge by 53% to $11.21. It is supported by a continuous uptrend in FY24 earnings estimates over recent months.
Other analysts have weighed in with their own ratings and estimates for the company. Collectively, Wall Street rates SAM as a “Hold.” However, there is an appreciable upside predicted for the company of 15.2% for the next 12 months that investors may appreciate.
The company’s EPS surged 365% in FY2022 and also improved in FY2023. This is a trend that seems likely to continue.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.