Don't let it get away!
Keep track of the stocks that matter to you.
Help yourself with the Fool's FREE and easy new watchlist service today.
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Boston Beer (NYSE: SAM ) bubbled as high as 14% in intraday trading Wednesday after the brewer of Samuel Adams raised its full-year 2010 earnings guidance and offered a stronger-than-expected forecast for next year, as well.
So what: Citing a 12% increase in beer shipments over 2009 levels, Boston Beer said it now expects 2010 earnings to range between $3.30 and $3.60 per share, up from its previous forecast of $2.85 to $3.15. More importantly, management felt confident enough in the current tailwinds to offer an initial profit estimate of $3.95 per share for 2011, versus the average analyst estimate of $3.53.
Now what: I'd wait for the shares to flatten out a bit before taking another swing. Fueled by the powerful trend toward craft beer, Boston Beer's shares are up about 120% over the past year and now trade at a forward P/E of 24. While Boston Beer's growth prospects are certainly tasty, cost leaders like Anheuser-Busch (NYSE: BUD ) and Molson Coors (NYSE: TAP ) -- which can still get aggressive on price -- might offer Fools the better value today.
Interested in more info on Boston Beer? Add it to your watchlist.