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Boston Beer Looks A Little Frothy At These Levels

Shareholders in craft beer kingpin Boston Beer (NASDAQ: [[SAM]]) have been enjoying a solid stock price trajectory over the past year, up more than 40%. The company has benefited from a double-digit rise in sales volumes during FY2014, as well as from margin expansion that has been a function of its larger scale of production, culminating in solid operating profit growth. Case in point was Boston Beer's performance in its latest fiscal quarter, where a 21% rise in sales volumes translated into a 43.6% gain in operating profit. On the downside, though, the craft beer segment's well-telegraphed rise in prominence has attracted no shortage of challengers, including major global players like Anheuser-Busch Inbev (NYSE: [[BUD]]), which could provide a headwind to future sales and profit growth at Boston Beer. So, after a strong stock price run, is the company a good bet for investors?

What's the value?

Boston Beer… Read More …