Molson Coors Stock Slumps 6.3% Amid Weak Earnings and Retail Pressures
Molson Coors Beverage Company (TAP) has faced a difficult year as its stock dropped 6.3% over the past 52 weeks. This decline comes despite a modestly positive US retail sales forecast, with December 2025 expectations set at just +0.4%. While broader market indices like the S&P 500 rose by 15.6% in the same period, TAP's performance has lagged behind both peers and sector benchmarks.
The company's financial struggles became clearer in its latest quarterly results. Net sales fell by 2.3% year-over-year in Q3, missing Wall Street's estimates by 1.7%. Adjusted earnings per share (EPS) also declined by 7.2% compared to the same period last year, falling short of analyst expectations. Looking ahead, forecasts suggest a further 9.7% drop in EPS for the current fiscal year.
Analyst sentiment on TAP remains mixed. Out of 20 covering the stock, 13 rate it as a 'Hold', while four recommend a 'Strong Buy' and two advise a 'Strong Sell'. Nadine Sarwat of AllianceBernstein recently maintained a 'Hold' rating with a $50 price target. Despite this, TAP currently trades slightly above the average target of $50.60, with the highest estimate of $72 implying a potential 41.5% upside.
The broader retail sector has also shown weakness, though exact comparisons with direct peers like Walmart or Target are unavailable. PayPal, another major retail-adjacent stock, suffered even sharper losses, dropping 30.32% over 30 days and 22.26% monthly. Meanwhile, the S&P 500 and Nasdaq experienced only minor daily declines of 0.09% and 0.3%, respectively.
TAP's stock has underperformed both the S&P 500 and the Invesco Food & Beverage ETF (PBJ) over the past year. With earnings expected to decline further and retail sector pressures persisting, the company's near-term outlook remains uncertain. The gap between its current price and the highest analyst target suggests potential volatility ahead.
