AMBEV SA (Brazil) Buy Hold or Sell Recommendation

ABEV3
  

BRL 15.54  0.76  4.66%   

Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding AMBEV SA ON is 'Strong Buy'. Macroaxis provides AMBEV SA buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding AMBEV SA positions. The advice algorithm takes into account all of AMBEV SA's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from AMBEV SA's buy-and-hold perspective. Please continue to AMBEV SA Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as AMBEV and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards AMBEV SA ON.

Execute AMBEV SA Buy or Sell Advice

The AMBEV recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on AMBEV SA ON. Macroaxis does not own or have any residual interests in AMBEV SA ON or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute AMBEV SA's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell AMBEV SABuy AMBEV SA
Strong Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Not Available
Details

Reporting Quality (M-Score)

Details
For the selected time horizon AMBEV SA ON has a Risk Adjusted Performance of 0.2109, Jensen Alpha of 0.2862, Total Risk Alpha of 0.3452, Sortino Ratio of 0.2887 and Treynor Ratio of 0.6268
Our trade recommendation tool can cross-verify current analyst consensus on AMBEV SA ON and to analyze the company potential to grow in the future. To make sure AMBEV SA ON is not overpriced, please confirm all AMBEV SA ON fundamentals, including its operating margin, shares outstanding, and the relationship between the profit margin and current valuation .

AMBEV SA Trading Alerts and Improvement Suggestions

About 72.0% of the company shares are held by company insiders

AMBEV SA current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. AMBEV analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. AMBEV analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price16.71
Target Median Price17.25
Target High Price21.00
Recommendation Mean2.60
Number Of Analyst Opinions14
Target Low Price11.50
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

AMBEV SA Returns Distribution Density

The distribution of AMBEV SA's historical returns is an attempt to chart the uncertainty of AMBEV SA's future price movements. The chart of the probability distribution of AMBEV SA stock daily returns describes the distribution of returns around its average expected value. We use AMBEV SA ON price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of AMBEV SA returns is essential to provide solid investment advice for AMBEV SA.
Mean Return0.27Value At Risk-1.91
Potential Upside2.89Standard Deviation1.52
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of AMBEV SA historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

AMBEV SA Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to AMBEV SA or Consumer Defensive sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that AMBEV SA's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a AMBEV stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.29
β
Beta against DOW0.41
σ
Overall volatility
1.51
Ir
Information ratio 0.21

AMBEV SA Volatility Alert

AMBEV SA ON has relatively low volatility with skewness of 1.1 and kurtosis of 2.14. However, we advise all investors to independently investigate AMBEV SA ON to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure AMBEV SA's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact AMBEV SA's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

AMBEV SA Fundamentals Vs Peers

Comparing AMBEV SA's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze AMBEV SA's direct or indirect competition across all of the common fundamentals between AMBEV SA and the related equities. This way, we can detect undervalued stocks with similar characteristics as AMBEV SA or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of AMBEV SA's fundamental indicators could also be used in its relative valuation, which is a method of valuing AMBEV SA by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare AMBEV SA to competition
FundamentalsAMBEV SAPeer Average
Return On Equity16.76 %(0.31) %
Return On Asset8.37 %(0.14) %
Profit Margin17.60 %(1.27) %
Operating Margin22.71 %(5.51) %
Current Valuation224.4 B16.62 B
Shares Outstanding15.74 B571.82 M
Shares Owned by Insiders71.99 %10.09 %
Shares Owned by Institutions7.04 %39.21 %
Price to Earning21.91 X28.72 X
Price to Book3.35 X9.51 X
Price to Sales3.22 X11.42 X
Revenue76.93 B9.43 B
Gross Profit37.19 B27.38 B
EBITDA19.05 B3.9 B
Net Income13.54 B570.98 M
Cash and Equivalents15.66 B2.7 B
Cash per Share1.00 X5.01 X
Total Debt3.71 B5.32 B
Debt to Equity0.042 %48.70 %
Current Ratio1.13 X2.16 X
Book Value Per Share4.69 X1.93 K
Cash Flow from Operations20.95 B971.22 M
Earnings Per Share0.72 X3.12 X
Price to Earnings To Growth4.67 X4.89 X
Number of Employees53 K18.84 K
Beta0.91-0.15
Market Capitalization247.41 B19.03 B
Total Asset74.44 B29.47 B
Retained Earnings5.71 B9.33 B
Working Capital(2.37 B)1.48 B
Current Asset18.36 B9.34 B
Current Liabilities20.73 B7.9 B
Z Score40.68.72

About AMBEV SA Buy or Sell Advice

When is the right time to buy or sell AMBEV SA ON? Buying financial instruments such as AMBEV Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having AMBEV SA in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Commodities Thematic Idea Now

Commodities
Commodities Theme
Funds or Etfs investing in commodities such as oil, gold, corn, soy, and agricultural goods. The Commodities theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Commodities Theme or any other thematic opportunities.
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Please continue to AMBEV SA Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the AMBEV SA ON information on this page should be used as a complementary analysis to other AMBEV SA's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Tools for AMBEV Stock

When running AMBEV SA ON price analysis, check to measure AMBEV SA's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy AMBEV SA is operating at the current time. Most of AMBEV SA's value examination focuses on studying past and present price action to predict the probability of AMBEV SA's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move AMBEV SA's price. Additionally, you may evaluate how the addition of AMBEV SA to your portfolios can decrease your overall portfolio volatility.
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