4-Star Stocks Poised to Pop: Boston Beer

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, craft brewer Boston Beer (NYS: SAM) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Boston Beer's business and see what CAPS investors are saying about the stock right now.

Boston Beer facts

Headquarters (founded)Boston (1984)
Market Cap$1.4 billion
IndustryBrewers
Trailing-12-Month Revenue$487 million
ManagementFounder/Chairman James Koch
President/CEO Martin Roper
Return on Equity (average, past 3 years)27%
Cash/Debt$48.1 million / $0
CompetitorsAnheuser-Busch InBev (NYS: BUD)
Molson Coors (NYS: TAP)

Source: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 1,447 members who have rated Boston Beer believe the stock will outperform the S&P 500 going forward. These bulls include fellow Fool Andy Cross (TMFOpie), who is ranked in the top 5% of our community, and snommis69.

A few months ago, Andy listed several of Boston Beer's positives: "Solid brands, founder-led, national growth and distribution opportunities too. ... I'll be interested to see what Jim Koch does with the SAM brand over the next few years."

Boston Beer even sports a robust three-year average return on capital of 26%. That's much higher than that of beer giants Anheuser-Busch (9%) and Molson (3%), as well as other alcohol plays such as Diageo (NYS: DEO) (12%)

CAPS member snommis60 elaborates on the bull case:

I'm a beer geek. I've been into the craft beer movement since I reached legal drinking age (and could afford beer better than swill). SAM does things right -- they have grown their flagship Lager to a national level, yet kept their craft beer cred by producing quality seasonal beers and assisting other craft breweries.

They produce beers that are "gateway" beers to the craft side of the house while keeping those already in the fold happy with their diverse (yet high quality) offerings. Add to this a pretty strong balance sheet and it's one of the picks I simply can't bet against!

What do you think about Boston Beer, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Boston Beer, Molson Coors, and Diageo. Motley Fool newsletter services have recommended buying shares of Boston Beer, Molson Coors, and Diageo. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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