Anheuser-Busch InBev reached a market cap of $126 Bln after the shares closed above $63 on Friday. BUD’s shareholders are deffinitely happy after the huge profits they generated on the short term.
In less than a month, BUD jumped with 20%. In the beginning of November, the shares were changing hands for $52 and rose with $11 by the first days of December. The 50 and 200 day MA are rather flat, but the 20 day MA is clearly pointing north. It broke above the mid term and the slow MA and is currently below the price, which is a strong sign bulls are in control.
All this buying activity and share price growth is not something unexpected, because of the strong fundamentals of the business. The revenue is almost $60 Bln and is growing for 3 consecutive years. It is also more than all of BUD’s direct competitors. The P/E is 20 and is less than most of the other big names in the same industry, which also acts as a driver for increased buying activity. Most importantly however, Anheuser-Busch InBev is enjoying a fantastic operating margin above 16% which is more than most of its competitors. This could be one more of the many reasons, why investors buy BUD shares.
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