Ambev SA (ADR)’s Stock Is Buy After Today’s Gap Up

The stock of Ambev SA (ADR) (NYSE:ABEV) gapped up by $0.03 today and has $7.06 target or 34.00% above today’s $5.27 share price. The 9 months technical chart setup indicates low risk for the $80.47 billion company. The gap was reported on Mar, 29 by If the $7.06 price target is reached, the company will be worth $27.36 billion more. Gaps up are useful for using as a support level and to some extent as a tradeable event. If investors already hold the stock and experience a price gap up, then its usually a good idea to hold the stock for a stronger up move. Back-tests of these patterns indicate that two-thirds of the times the stock performance improves after the gap. The area gaps close 89% of the time, the breakaway gaps, 2%, the continuation gaps 4% and the exhaustion gaps 61%. The stock increased 2.93% or $0.15 during the last trading session, hitting $5.27. About 12.36M shares traded hands. Ambev SA (ADR) (NYSE:ABEV) has declined 0.57% since August 20, 2015 and is downtrending. It has underperformed by 0.63% the S&P500.

According to Zacks Investment Research, “Companhia de Bebidas das Americas (AmBev), based in S?o Paulo, is engaged in producing, distributing and selling beer, carbonated soft drinks and other non-alcoholic and non-carbonated products in many countries across the Americas. It maintains an agreement with PepsiCo International, Inc. to bottle, sell and distribute Pepsi products in Brazil and in other Latin American countries, including Lipton Ice Tea, Gatorade, H2OH!, Propel and Frutzzz. AmBev conducts its operations through three business units: Latin America North, Latin America South and Canada. Latin America North includes its operations in Brazil, where it operates two divisions: beer sales and carbonated soft drinks and non-alcoholic non-carbonated sales; and its operations in its Hispanic Latin America Operations, excluding Latin America South, operations. Latin America South includes its Quinsa operations in the countries of Argentina, Bolivia, Paraguay, Uruguay and Chile. Canada, represented by Labatt, includes domestic sales in Canada.”

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