Why Boston Beer Stock Jumped 11% This Week
Shares of Boston Beer (NYSE: SAM) outperformed the market this week, as the stock gained 11% through Thursday trading compared to a 3.3% rise in the S&P 500, according to data provided by S&P Global Market Intelligence. The spike closed the gap between the beer producer's returns and the index's returns this year, but shares are still down over 30% so far in 2022.
The rebound was powered by a general uptick in investor optimism following deep pessimism in recent weeks.
The main factor driving Boston Beer's shares higher has been the market's broader recovery. Stocks posted sharp gains through Thursday trading after declining through most of 2022. Boston Beer has been hit even harder, with shares down 67% in the past full year compared to an 11% drop in the S&P 500 in that time. It is no surprise that the deep pessimism embedded in that decline would set the stage for market-beating performances during a wider rally in the stock market.
Source Fool.com
