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Many beverage stocks have been rallying lately, but there are still some bargains and solid values in this sector. Beverage companies are generally a stable place to invest your money. They tend to hold up better in times of market corrections. These companies have stable cash flow and people around the world drink, in good times and bad.

In general, these names offer earnings growth, reasonable PE ratios and even dividends in some cases. I have been following a couple of the beverage companies closely, and I have written positively about buying Molson Coors (NYSE:TAP) when it was in the low $40's and Central European Distributing (NASDAQ:CEDC) in the $10-$11 range. Because of this, I thought now would be a good time to do a more in depth review of the major beverage companies to see where the best values are in this sector.

I did not include Pepsi (NYSE:PEP) since so much of their revenues are from food products. Below, you can see some key information and statistics on each company, followed by a summary at the end of this article. Here are the companies:

Anheuser-Busch Inbev (NYSE:BUD) shares are trading at $61.44. Anheuser-Busch is a brewing company with a diversified line of products including Budweiser, Bud Lite and others. The 50 day moving average is $56.32 and the 200 day moving average is $55.99. Earnings estimates for BUD are about $3.84 per share in 2011 and $4.34 for 2012, so the PE ratio is about 16. BUD pays a dividend of 95 cents per share which is equivalent to a 1.5% yield. The book value is stated at $22.13. According to Yahoo Finance, BUD has about $36.3 billion in revenues and an enterprise value of about $137.6 billion.

Investment analysis on Anheuser-Busch shares: These shares are trading in line with other brewers and beverage companies in terms of PE ratio. Anheuser-Busch is trading for about 16 times earnings. Molson Coors shares are trading for about 11 times and pays a higher dividend, so I prefer TAP shares out of these two companies.

Constellation Brands, Inc., (NYSE:STZ) shares are trading at $22.23. These shares have a relative strength index of 70, which indicates the shares are at overbought levels. STZ is a leading beverage maker and distribution company, based in New York. The 50 day moving average is $20.23 and the 200 day moving average is $19.27. Earnings estimates for STZ are $1.97 per share in 2011 and $2.15 for 2012. The 52 week range is $14.97 to $22.89. Book value is stated at $12.27. According to Yahoo Finance, STZ has about $3.3 billion in revenues and an enterprise value of about $7.9 billion.

Investment analysis on Constellation shares: This company has some leading brands including: Robert Mondavi, Franciscan Estate, Clos du Bois and they import some of these very popular brands: Corona, Pacifico, Negra Modela, St Pauli Girl and others. These are great brands, but the stock has moved significantly, and it makes sense to wait for pullbacks before buying.

The Coca Cola Company (NYSE:KO) shares are trading at $67.88. Coca Cola is a leading beverage maker and distribution company, based in Georgia. The 50 day moving average is $65.08 and the 200 day moving average is $60.81. Earnings estimates for KO are $3.87 per share in 2011 and $4.28 for 2012. The 52 week range is $49.47 to $68.47. Book value is stated at $22.19. KO pays a dividend of $1.88 per year which is equivalent to a 2.8% yield. According to Yahoo Finance, KO has about $35 billion in revenues and an enterprise value of about $168 billion.

Investment analysis on Coca Cola shares: Coca Cola is one of the world's most famous brands but this company owns many other well known brands such as Sprite, Vitamin Water, Minute Maid, Dasani, Fanta, and others. This is a great company, and the dividend is an added bonus, but since these shares are trading well above the 50 and 200 day moving average, I would wait for pullbacks.

Ambev (ABV) shares are trading at $31.77. These shares have a relative strength index of 78, which indicates the shares are at overbought levels. ABV is a leading beverage maker and distribution company, based in Brazil. The 50 day moving average is $27.87 and the 200 day moving average is $25.82.

Earnings estimates for ABV are $1.64 per share in 2011 and $1.78 for 2012. The 52 week range is $17.82 to $32. Book value is stated at $4.99. According to Yahoo Finance, ABV has about $16 billion in revenues and an enterprise value of about $98.46 billion. ABV pays a dividend of $1.47 per year which is equivalent to a 4.7% yield. According to Yahoo Finance, ABV has about $16 billion in revenues and an enterprise value of about $98.5 billion.

Investment analysis on Ambev shares: This company distributes leading brands including some of these very popular brands: Pepsi and 7up in Brazil, Budweiser and Stella Artois in Canada and others. These are great brands, but the stock has moved significantly, and it makes sense to wait for pullbacks before buying. The dividend is one of the highest in this sector. This company should benefit from the continued growth in Brazil's economy. Brazil will host the Olympic Games in 2016.

Molson Coors Brewing Company shares are trading at $48.03. Molson Coors is a brewing company with a diversified line of products including Coors, Blue Moon, and Keystone. The 50 day moving average is $45.50 and the 200 day moving average is $46.52. Earnings estimates for TAP are about $3.78 per share in 2011 and $4.08 for 2012, so the PE ratio is only about 11. TAP pays a dividend of $1.12 per share which is equivalent to a 2.5% yield. The book value is stated at $41.75. According to Yahoo Finance, TAP has about $3.25 billion in revenues and an enterprise value of about $9.64 billion.

Investment analysis on Molson shares: These shares are trading at a discount to other brewers and beverage companies in terms of PE ratio. By comparison, Anheuser-Busch is trading for about 17 times earnings. TAP insiders are seeing the value in these shares and have been buying, which you can see here.

Central European Distribution Corp. shares are trading at $11.04. CEDC is a leading beverage distribution company, based in Pennsylvania. The 50 day moving average is $14.27 and the 200 day moving average is $21.90. Earnings estimates for CEDC are $1.02 per share in 2011 and $1.52 for 2012. The 52 week range is $10 to $39.95. Book value is stated at $22.19. According to Yahoo Finance, CEDC has about $711 million in revenues and an enterprise value of about $1.95 billion.

Investment analysis on CEDC shares: They reported earnings which disappointed the market and shares dropped off a cliff, from about $23 down to around $10. With the shares down to around $11, I think it is a great opportunity to be buying in stages, so you can take advantage of any further weakness. Multiple insiders have been taking advantage of the sell off and loading up on these shares recently, which you can see here.

Most of these stocks are trading very close to their 52 week highs (STZ, KO, ABV), so with these names, I would not make new investments at this time. Molson Coors is still a solid value even though it has gained since I last recommended it.

The best value in this sector appears to be CEDC. It is likely to be more volatile than the others, but it has far more upside. When you compare the PE ratio and book value of CEDC to these other stocks, it appears extremely undervalued. Also, the insider buying at CEDC near the 52 week lows, is a huge buy signal in my opinion.

If you compare the revenues to the enterprise value, the names like KO and ABV are trading at ration of about 6 times, while STZ and TAP are have a multiple of about 3 times their revenue. The lowest valuation is CEDC which has a multiple of just over 2 times. I go into further detail on CEDC here. I believe CEDC shares are likely to double and TAP shares could easily gain 30% or so before reaching valuation levels that the other stocks here have.

Disclaimer: The data is sourced from Yahoo Finance and Stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.

Source: A Close Look at Which Beverage Stocks Could Double