Ambev SANYSE: ABEV

Ambev S.A. (NYSE:ABEV ) Q3 2024 Earnings Conference Call October 31, 2024 11:30 AM ET Company Participants Jean Jereissati - Chief Executive Officer Lucas Lira - Chief Financial and Investor Relations Officer Conference Call Participants Isabella Simonato - Bank of America Thiago Duarte - BTG Robert Ottenstein - Evercore Lucas Ferreira - JPMorgan Henrique Brustolin - Bradesco BBI Guilherme Palhares - Santander Leonardo Alencar - XP Renata Cabral - Citi Ricardo Alves - Morgan Stanley Operator Good morning, good afternoon and thank you for waiting. We would like to welcome everyone to Ambev's 2024 Third Quarter Results Conference Call.

Ambev SA ABEV is inching towards a golden cross —a technical signal that could suggest brighter days ahead for the stock.

A strong yield doesn't mean much if the underlying payment can't be sustained.

Ambev is a quintessential value stock. It is cheap relative to where it has traded historically, its peers, the consumer staples sector, and the market. The stock has clean financials and operating results, which increase its margin of safety for investors and reduce the odds it is a value trap.

Consumer surveys in Canada and the U.S. show that alcohol consumption is down in areas where adults have the option to consume legal cannabis, Bernstein analyst Nadine Sarwat said in a research note on Friday.

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It's not easy to find bargain stocks to buy when the stock market regularly keeps hitting new all-time highs. The S&P 500 is sitting above $5,431 at the moment, a 14% gain in 2024 and 23% higher than where it stood 12 months ago.

Although it can be exciting to wager on enterprises that everyone else is following, your best bets may stem from so-called bargain stocks. These ideas are from the path less traveled.

The possibility of a decline in the U.S. dollar and the importance of diversifying portfolios make Ambev S.A. a compelling foreign investment option. Ambev is currently trading at its lowest valuation since the 2009 recession, offering a strong dividend payout of 6.5%, which is five times higher than the S&P 500 rate. With a stable business model, high profit margins, low debt levels, and undervaluation, including 10% in free cash flow generation, Ambev presents an attractive buying opportunity.