Is Ambev (ABEV) One of the Cheap Penny Stocks to Invest In?

Ambev (NYSE:ABEV) is 1 of the cheap penny stocks to put in. Earlier successful December, Barclays expert Benjamin Theurer kept his Hold standing connected the banal on with a $2.5 terms target.

Previously, connected November 26, Bernstein downgraded Ambev to Market Perform from Outperform with a $2.88 terms target. The steadfast downgraded the banal owed to valuation concerns pursuing a 16% year-to-date gain. While the steadfast remains affirmative connected Ambev’s semipermanent outlook, it warns that existent marketplace expectations are unrealistic.

In Q3 2025, Ambev’s show was driven by the continued occurrence of the company’s premiumization strategy. Volumes for premium and super-premium brands accrued by much than 9%, allowing the premium conception to seizure astir 50% of the marketplace stock successful Brazil. Beyond accepted beverage sales, Ambev’s integer ecosystem demonstrated explosive growth; the marketplace inaugural saw its GMV soar 100% to an annualized BRL 8 billion, portion the DTC platform, Ze Delivery, saw a 7% summation successful GMV.

Despite these gains, the institution navigated respective antagonistic headwinds. Beer manufacture volumes successful Brazil were softer than anticipated, chiefly owed to unseasonably acold upwind successful the South and Southeast regions and constrained user purchasing powerfulness successful the North and Northeast. In Argentina, brew volumes saw a mid-single-digit decline, underperforming the broader manufacture owed to unfavorable pricing dynamics. Financially, Ambev reported a normalized nett income of BRL 3.8 cardinal (up 7%) and a stated nett income of BRL 4.9 billion, representing a 36% surge implicit the erstwhile year.

Ambev (NYSE:ABEV), done its subsidiaries, produces, distributes, and sells beer, draught beer, carbonated brushed drinks, malt & food, different alcoholic beverages, and non-alcoholic & non-carbonated products successful Brazil, Central America and Caribbean, Latin America South, and Canada.

While we admit the imaginable of ABEV arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double successful 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This nonfiction is primitively published at Insider Monkey.