Ambev, a beer company (ABEV), reported strong third quarter results and has seen its stock rise over the last month. But, rising input prices are expected to hurt the company. So, let’s evaluate if it is wise to add the stock to one’s portfolio now. Keep reading. Ambev S.A., based in Brazil’s Sao Paulo reported third-quarter earnings that showed an impressive 18.5% rise in net revenues year-over–year to R$18.49 trillion ($3.35 billion). The adjusted profit of R$3.75 Billion ($679.90 M) was a 50% increase in sales due to the reopening bars and restaurants.

Over the past month, the stock has gained 16.8% in price to close yesterday’s trading session at $3.20.

The stock is trading at 19% lower than its 52-week peak of $3.95 (which it reached on June 8, 2021), despite having fallen by 0.3% over the last three months. It also did not provide guidance for fourth quarter. Bank of America (NYSE 🙂 has warned investors of some potential headwinds in 2022. So, ABEV’s near-term prospects look uncertain.

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