Boston Beer (SAM): Buy, Sell, or Hold Post Q2 Earnings?

SAM Cover Image

Since February 2025, Boston Beer has been in a holding pattern, posting a small loss of 2.6% while floating around $221.06. The stock also fell short of the S&P 500’s 5.2% gain during that period.

Is there a buying opportunity in Boston Beer, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.

Why Is Boston Beer Not Exciting?

We're sitting this one out for now. Here are three reasons why there are better opportunities than SAM and a stock we'd rather own.

1. Long-Term Revenue Growth Disappoints

A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last three years, Boston Beer grew its sales at a sluggish 1.6% compounded annual growth rate. This was below our standards. Boston Beer Quarterly Revenue

2. Fewer Distribution Channels Limit its Ceiling

With $2.05 billion in revenue over the past 12 months, Boston Beer is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers.

3. Revenue Projections Show Stormy Skies Ahead

Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect Boston Beer’s revenue to drop by 4.2%, a decrease from This projection is underwhelming and suggests its products will face some demand challenges.

Final Judgment

Boston Beer isn’t a terrible business, but it doesn’t pass our bar. With its shares lagging the market recently, the stock trades at 23.1× forward P/E (or $221.06 per share). This valuation tells us it’s a bit of a market darling with a lot of good news priced in - we think there are better opportunities elsewhere. We’d suggest looking at an all-weather company that owns household favorite Taco Bell.

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