It is often seen that a stock does not do much after having made significant gains and it is called a period of consolidation. It might be an indication of a larger breakout in the future as well and hence, such stocks are often watched closely by investors. One of the stocks that have been consolidating for the past several months is that of Ambev S.A (NYSE: ABEV).
While it is true that there has been no recent news about the company, it might be a good idea for investors to take a look at the company’s second-quarter results from July last year. Ambev announced at the time that its net revenues had gone down by as low as 10.4% in the second quarter.
The markets in which it had experienced considerable declines were the Caribbean, Central America, and Brazil. However, although the company’s profits declined by 49.4% year on year, it did not go into the red.