Unnamed: 0
stringlengths 3
8
| Date
stringlengths 23
23
| Article_title
stringlengths 1
250
| Stock_symbol
stringlengths 1
5
| Url
stringlengths 44
135
| Publisher
stringclasses 1
value | Author
stringclasses 1
value | Article
stringlengths 1
343k
| Lsa_summary
stringlengths 3
53.9k
| Luhn_summary
stringlengths 1
53.9k
| Textrank_summary
stringlengths 1
53.9k
| Lexrank_summary
stringlengths 1
53.9k
| uuid
stringlengths 36
36
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
727500.0
|
2011-07-29 00:00:00 UTC
|
Dunkin Donuts IPO: What Do Hedge Funds Think of the Restaurant Industry?
|
DENN
|
https://www.nasdaq.com/articles/dunkin-donuts-ipo-what-do-hedge-funds-think-restaurant-industry-2011-07-29
|
nan
|
nan
|
(List compiled by Becca Lipman. Data sourced from Finviz.)
Three days ago TheStreet posted an article titled "Don't Buy Dunkin' Donuts IPO: Value Analyst." Yesterday, they reported: "Dunkin Donuts IPO: Shares Soar."
You can't blame them for being so cautious about the recently introduced Dunkin' Donuts IPO (DNKN). In fact, many analysts still aren't quite sure what to make of it.
Dunkin' Brands owns the Dunkin' Donuts franchise and the ice cream chain Baskin Robins. Initial stock price was set at $19/share when it was offered late on Tuesday, it opened at $25 on Wednesday and closed at $27.85/share. Friday's low currently stands at $28.01/share.
So far, so good. But some analysts wonder if investors are simply over-enthusiastic, and whether $19/share might have been overpriced to start with. On the other hand, the company has a fair share of potential growth with further expansion of the franchise west of theMississippi.
Y Charts offers this bit of wisdom: "Successful growth stocks, even the ones that go on to make the most astronomical share price gains, are rarely made in the first few months of trading. Especially in the restaurant sector, where investors over-enthusiasm tends to swell PEs."
The article goes on to remind us of Texas Roadhouse (TXRH) and Peet's Coffee & Tea (PEET) which made their IPO investors very happy indeed for a short time... until their prices dipped below their closing price on opening day. Ouch.
Do you think Dunkin' Donuts cold follow along that path? Or is this another Chipolte in the making, which has grown an impressive 650% since its initial offering?
To help you analyze, here's a list of restaurant stocks that have seen institutional buying over the recent quarter. We found that of the 28 restaurant industry stocks with market caps over $300 million, 18 have seen net institutional purchases over the current quarter. We list the top ten with the most significant buying below.
Hedge funds think there's more upside to these stocks--do you agree?
Analyze These Ideas (Tools Will Open In A New Window)
1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned
List sorted by institutional purchases as a % of share float.
1. The Wendy's Company (WEN): Restaurants Industry. Market cap of $2.22B. Current price at $5.3. Net institutional shares purchased over the current quarter at 95.3M, equivalent to 31.74% of the company's 300.22M share float. The stock has gained 23.02% over the last year.
2. Bravo Brio Restaurant Group, Inc. (BBRG): Restaurants Industry. Market cap of $421.02M. Current price at $22.16. Net institutional shares purchased over the current quarter at 3.2M, equivalent to 18.36% of the company's 17.43M share float. The stock is a short squeeze candidate, with a short float at 5.41% (equivalent to 5.63 days of average volume). After a solid performance over the last year, BBRG has pulled back during recent sessions. The stock is -6.2% below its SMA20 and -3.17% below its SMA50, but remains 14.61% above its SMA200. The stock has performed poorly over the last month, losing 12.42%.
3. Ruby Tuesday, Inc. (RT): Restaurants Industry. Market cap of $590.46M. Current price at $9.09. Net institutional shares purchased over the current quarter at 4.5M, equivalent to 8.69% of the company's 51.79M share float. The stock is a short squeeze candidate, with a short float at 8.41% (equivalent to 5.6 days of average volume). The stock is currently stuck in a downtrend, trading -13.74% below its SMA20, -12.36% below its SMA50, and -25.14% below its SMA200. It's been a rough couple of days for the stock, losing 17.92% over the last week.
4. BJ's Restaurants, Inc. (BJRI): Restaurants Industry. Market cap of $1.29B. Current price at $46.88. Net institutional shares purchased over the current quarter at 1.8M, equivalent to 7.5% of the company's 24.00M share float. The stock is a short squeeze candidate, with a short float at 16.18% (equivalent to 14.18 days of average volume). After a solid performance over the last year, BJRI has pulled back during recent sessions. The stock is -10.84% below its SMA20 and -6.4% below its SMA50, but remains 15.37% above its SMA200. The stock has gained 82.55% over the last year.
5. DineEquity, Inc. (DIN): Restaurants Industry. Market cap of $951.37M. Current price at $52.59. Net institutional shares purchased over the current quarter at 984.7K, equivalent to 6.36% of the company's 15.49M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.37). The stock is a short squeeze candidate, with a short float at 11.24% (equivalent to 11.09 days of average volume). It's been a rough couple of days for the stock, losing 8.32% over the last week.
6. CEC Entertainment Inc. (CEC): Restaurants Industry. Market cap of $767.80M. Current price at $38.71. Net institutional shares purchased over the current quarter at 844.0K, equivalent to 4.48% of the company's 18.85M share float. It's been a rough couple of days for the stock, losing 7.35% over the last week.
7. Domino's Pizza, Inc. (DPZ): Restaurants Industry. Market cap of $1.64B. Current price at $26.8. Net institutional shares purchased over the current quarter at 1.4M, equivalent to 3.33% of the company's 41.98M share float. The stock has gained 105.1% over the last year.
8. Denny's Corporation (DENN): Restaurants Industry. Market cap of $368.97M. Current price at $3.75. Net institutional shares purchased over the current quarter at 3.2M, equivalent to 3.27% of the company's 97.81M share float. It's been a rough couple of days for the stock, losing 13.05% over the last week.
9. Buffalo Wild Wings Inc. (BWLD): Restaurants Industry. Market cap of $1.18B. Current price at $63.7. Net institutional shares purchased over the current quarter at 363.8K, equivalent to 2.02% of the company's 18.00M share float. The stock is a short squeeze candidate, with a short float at 11.44% (equivalent to 5.94 days of average volume). It's been a rough couple of days for the stock, losing 5.95% over the last week.
10. The Cheesecake Factory Incorporated (CAKE): Restaurants Industry. Market cap of $1.68B. Current price at $28.98. Net institutional shares purchased over the current quarter at 1.0M, equivalent to 1.87% of the company's 53.54M share float. The stock is a short squeeze candidate, with a short float at 16.7% (equivalent to 7.86 days of average volume). It's been a rough couple of days for the stock, losing 6.54% over the last week.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Denny's Corporation (DENN): Restaurants Industry. Three days ago TheStreet posted an article titled "Don't Buy Dunkin' Donuts IPO: Value Analyst." Y Charts offers this bit of wisdom: "Successful growth stocks, even the ones that go on to make the most astronomical share price gains, are rarely made in the first few months of trading.
|
Denny's Corporation (DENN): Restaurants Industry. Net institutional shares purchased over the current quarter at 95.3M, equivalent to 31.74% of the company's 300.22M share float. Net institutional shares purchased over the current quarter at 3.2M, equivalent to 18.36% of the company's 17.43M share float.
|
Denny's Corporation (DENN): Restaurants Industry. We found that of the 28 restaurant industry stocks with market caps over $300 million, 18 have seen net institutional purchases over the current quarter. Net institutional shares purchased over the current quarter at 95.3M, equivalent to 31.74% of the company's 300.22M share float.
|
Denny's Corporation (DENN): Restaurants Industry. Y Charts offers this bit of wisdom: "Successful growth stocks, even the ones that go on to make the most astronomical share price gains, are rarely made in the first few months of trading. To help you analyze, here's a list of restaurant stocks that have seen institutional buying over the recent quarter.
|
1c6d1633-6de4-41ea-92bf-c88e91123410
|
727501.0
|
2011-07-18 00:00:00 UTC
|
Investing 101: Rallying Stocks Under $5 Undervalued to Analyst Estimates
|
DENN
|
https://www.nasdaq.com/articles/investing-101-rallying-stocks-under-5-undervalued-analyst-estimates-2011-07-18
|
nan
|
nan
|
(List compiled by Becca Lipman)
Penny stocks have a solid reputation for being risky investments. However, if the potential rewards excite you, then the list below may provide an interesting starting point for your search.
To create the following list of penny stocks (priced under $5) we chose the names with a market cap above $300M that also met the following bullish indicators:
• Rallying above 20, 50 and 200 day market average (MA).
• Undervalued to analyst target price by over 20%
Want clarification on the terms used above? You got it:
Analyst target prices can be very useful guides for investors. The target price is a price level set by analysts that, based on their data and estimates, represents their predictions for that company in the upcoming year. Because analysts often have different opinions, we use the average analyst target price.
When a company's current market price is deeply lagging to the target price, it may signal that the company has more value to price in (meaning, the stock price may rise).
When a stock is rallying it means its price is performing above its market average price for a given time period. It is presented as a percentage of price relative to the average (ie, 10% above the average). When a stock is performing above its 20 day moving average (MA), also known as simple moving average (SMA), as well as its 50 and 200 day moving averages, it signals bullish momentum.
Now that you’re armed with information, how do you feel about the following list of stocks? Do you think they have more value to cash in? Will their momentum push them towards their target prices? Use the list below as a starting point for your own analysis.
Analyze These Ideas (Tools Will Open In A New Window)
1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned
1. Abraxas Petroleum Corp. (AXAS): Independent Oil & Gas Industry. Market cap of $410.03M. The stock is currently trading 14.55% above its SAM20, 11.79% above its SMA50, and 1.72% above its SMA200. Current price at $4.33 vs. target price at $6.20. Implies a potential upside of 43.33%. The stock is a short squeeze candidate, with a short float at 21.2% (equivalent to 8.32 days of average volume). The stock has had a good month, gaining 37.96%.
2. BioSante Pharmaceuticals, Inc. (BPAX): Biotechnology Industry. Market cap of $340.70M. The stock is currently trading 14.46% above its SAM20, 22.88% above its SMA50, and 68.38% above its SMA200. Current price at $3.45 vs. target price at $5.8. Implies a potential upside of 68.12%. The stock is a short squeeze candidate, with a short float at 14.9% (equivalent to 5.08 days of average volume). The stock has had a good month, gaining 40.0%.
3. Charming Shoppes Inc. (CHRS): Apparel Stores Industry. Market cap of $512.66M. The stock is currently trading 2.91% above its SAM20, 4.63% above its SMA50, and 14.95% above its SMA200. Current price at $4.29 vs. target price at $6. Implies a potential upside of 39.86%. This is a risky stock that is significantly more volatile than the overall market (beta = 3.48). The stock is a short squeeze candidate, with a short float at 9.24% (equivalent to 8.53 days of average volume). The stock has had a good month, gaining 16.36%.
4. Curis Inc. (CRIS): Biotechnology Industry. Market cap of $304.64M. The stock is currently trading 5.06% above its SAM20, 6.35% above its SMA50, and 37.26% above its SMA200. Current price at $3.81 vs. target price at $5.4. Implies a potential upside of 41.73%. The stock is a short squeeze candidate, with a short float at 7.47% (equivalent to 9.4 days of average volume). The stock has had a good month, gaining 30.82%.
5. Denny's Corporation (DENN): Restaurants Industry. Market cap of $400.63M. The stock is currently trading 0.27% above its SAM20, -0.16% above its SMA50, and 3.44% above its SMA200. Current price at $3.95 vs. target price at $5. Implies a potential upside of 26.58%. The stock has gained 1% over the last quarter.
6. Dynavax Technologies Corporation (DVAX): Drug Manufacturers Industry. Market cap of $353.52M. The stock is currently trading 5.83% above its SAM20, 11.08% above its SMA50, and 13.53% above its SMA200. Current price at $2.95 vs. target price at $6. Implies a potential upside of 103.39%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.7). The stock is a short squeeze candidate, with a short float at 9.13% (equivalent to 9.68 days of average volume). The stock has had a good month, gaining 19.84%.
7. GenOn Energy, Inc. (GEN): Electric Utilities Industry. Market cap of $3.16B. The stock is currently trading 2.58% above its SAM20, 3.03% above its SMA50, and 3.53% above its SMA200. Current price at $3.97 vs. target price at $4.8889. Implies a potential upside of 23.15%. The stock has gained 11.41% over the last quarter.
8. Hyperdynamics Corporation (HDY): Oil & Gas Drilling & Exploration Industry. Market cap of $700.90M. The stock is currently trading 1.46% above its SAM20, 4.61% above its SMA50, and 1.61% above its SMA200. Current price at $4.36 vs. target price at $8. Implies a potential upside of 83.49%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.44). The stock is a short squeeze candidate, with a short float at 13.84% (equivalent to 6.66 days of average volume). The stock has gained 3.94% over the last quarter.
9. Immunomedics Inc. (IMMU): Diagnostic Substances Industry. Market cap of $311.48M. The stock is currently trading 2.21% above its SAM20, 2.11% above its SMA50, and 11.43% above its SMA200. Current price at $4.08 vs. target price at $6.25. Implies a potential upside of 53.19%. The stock is a short squeeze candidate, with a short float at 13.96% (equivalent to 16.67 days of average volume). The stock has had a good month, gaining 14.4%.
10. Lexicon Pharmaceuticals, Inc. (LXRX): Biotechnology Industry. Market cap of $590.91M. The stock is currently trading 2.8% above its SAM20, 6.67% above its SMA50, and 2.02% above its SMA200. Current price at $1.72 vs. target price at $2.75. Implies a potential upside of 59.88%. The stock has had a good month, gaining 15.13%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Denny's Corporation (DENN): Restaurants Industry. (List compiled by Becca Lipman) Penny stocks have a solid reputation for being risky investments. However, if the potential rewards excite you, then the list below may provide an interesting starting point for your search.
|
Denny's Corporation (DENN): Restaurants Industry. The stock is a short squeeze candidate, with a short float at 21.2% (equivalent to 8.32 days of average volume). The stock is a short squeeze candidate, with a short float at 14.9% (equivalent to 5.08 days of average volume).
|
Denny's Corporation (DENN): Restaurants Industry. To create the following list of penny stocks (priced under $5) we chose the names with a market cap above $300M that also met the following bullish indicators: • Rallying above 20, 50 and 200 day market average (MA). When a company's current market price is deeply lagging to the target price, it may signal that the company has more value to price in (meaning, the stock price may rise).
|
Denny's Corporation (DENN): Restaurants Industry. Because analysts often have different opinions, we use the average analyst target price. When a stock is rallying it means its price is performing above its market average price for a given time period.
|
c5ab19bf-d254-4a67-8543-e04b0650b54d
|
727502.0
|
2011-07-15 00:00:00 UTC
|
3 Small Cap Stocks with Big Buyback Plans
|
DENN
|
https://www.nasdaq.com/articles/3-small-cap-stocks-big-buyback-plans-2011-07-15
|
nan
|
nan
|
Many investors tend to ignore stock buyback announcements. Seemingly massive share repurchase programs become a lot less impressive when you realize they are mostly attempting to offset generous stock option grants for insiders by reducing growth in the share count. Adding insult, some buyback programs are put in place even as a stock is surging to multi-year highs.
But it doesn'tmean stock buybacks should be ignored altogether in your investing strategy. Indeed, finding a stock with a substantial buyback program can send a major signal that the company thinks its shares are undervalued. If they're right, then a buyback program coupled with solid bottom line results can lead to serious stock gains. The problem is you simply have to look for the right buyback plan.
To avoid the risk of picking a stock with a "phony" buyback plan, investors should focus on companies committing cash to shares when a stock is really out of favor. Beaten-down stocks benefit the most from buyback efforts because they can more quickly shrink the share count.
In the past few quarters, I've looked at buyback plans among blue chip companies. Now, I'm taking a look at smaller stocks with a market value below $1 billion that announced buyback plans in the second quarter. I'm also focusing on stocks trading well below their 5-year high. Why? They may be down right now, but the combination of a smaller stock with a buyback plan of shares that are out of favor may well signal much better days for a stock ahead.
1. Denny's (Nasdaq: DENN )
This operator of quick-service casual dining restaurants announced a 6 million share repurchase plan when shares moved above $4. They're now back below $4, even as signs of a turnaround begin to take shape.
Denny's, which operates 230 company-owned restaurants and franchises another 1,400, has surely been challenged in recent years. Sales, EBITDA ( earnings before interest, taxes, depreciation and amortization ) and EPS (earnings per share) have all steadily fallen as consumers came under duress. This led management to cull weak stores and take a look with a cost-cutting knife at every aspect of the business. It also sought to reduce long-term debt , which has fallen by half since 2005 to a recent $244 million.
The good news: sales have stopped shrinking. The bad news, sales aren't growing yet, either. But the company is now so lean, and the debt load is now deemed manageable, so share buybacks have become the preferred course. "Now that the company's leverage ratio is around 3x, we believe that management will increasingly turn its focus from further repaying debt to returning larger amounts of the company's healthyfree cash flow to shareholders," note analysts at BGB Securities. They're right. Denny's is on track to deliver an impressive $50 million in free cash flow this year. Denny's trades for less than 10 times projected 2011 profits, and those profits would likely surge much higher once consumers are under less duress.
2. Advanced Battery Technologies (Nasdaq: ABAT )
At first glance, you have to wonder why a company worth less than $80 million would have the audacity to spend vital cash on a buyback. But with $87 million in cash on the balance sheet -- worth more than the company's entire value, management had to do SOMETHING.
Despite its sexy name, this company is actually a vehicle manufacturer, focusing on electric scooters. Sales have grown very quickly lasting the past few years (hitting $97 million in 2010), and 40% net profit margins are nothing short of stunning -- if the company is to be believed. Trouble is, the company's Chinese-born management team seems to lack credibility, perhaps explaining why the stock has lost nearly 75% of its value since late March. Financial statements of all companies associated with China have come under extreme scrutiny in recent months, and more than a few have simply proven to be a house of cards.
I am not in a position to formally endorse such a potentially dubiousbusiness model . But this is a stock that bears close watching. If this turns out to be a legitimate company with trustworthy financial statements, then it's the steal of the decade. Keep an eye on this one. Any moves to prove the veracity of this business model through the vetting of a legitimate "Big 4" auditor would quickly attract value investors to the stock.
3. Aircastle (NYSE: AYR )
Even though shares have risen 10% since I recommended them in March, I still think shares are too cheap. Management agrees, recently announcing a $30 million buyback plan.
After I wrote about this aircraft owner and lessor, Aircastle delivered a blow-out first quarter, toppingprofit estimates by a hefty 35%. Why the outperformance? Because the company found a home for 99% of the planes it owns. As long as the globaleconomy doesn't slip, this business model should continue to work like a charm. Borrowing costs are low, enabling the company to finance planes at a low cost, while lease rates for those planes are quite firm.
Book value (the value of Aircastle's assets on paper) now stands at $17.65 -- 46% above the current share price. The $30 million stock buyback will reduce the share count, pushing book value even higher. Throw in still-strong profits and book value could approach $19 sometime in 2012. Not bad for a $12 stock.
Action to Take --> These companies aren't trying to make a "look at me" statement with their buyback plans. Their stocks are simply really cheap. As their share counts shrink, rising per-share profits are bound to resonate with investors and send share prices higher.
-- David Sterman
P.S. -- We've just identified six surprising events that could break your portfolio wide open in 2011. Knowing these pivot points in advance lets you focus your investing strategy like a beam of light in the dark... and make a lot of money in a hurry. Get them free by simply watching this video presentation.
Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Denny's (Nasdaq: DENN ) This operator of quick-service casual dining restaurants announced a 6 million share repurchase plan when shares moved above $4. Denny's, which operates 230 company-owned restaurants and franchises another 1,400, has surely been challenged in recent years. Denny's is on track to deliver an impressive $50 million in free cash flow this year.
|
Denny's (Nasdaq: DENN ) This operator of quick-service casual dining restaurants announced a 6 million share repurchase plan when shares moved above $4. Denny's, which operates 230 company-owned restaurants and franchises another 1,400, has surely been challenged in recent years. Denny's is on track to deliver an impressive $50 million in free cash flow this year.
|
Denny's (Nasdaq: DENN ) This operator of quick-service casual dining restaurants announced a 6 million share repurchase plan when shares moved above $4. Denny's, which operates 230 company-owned restaurants and franchises another 1,400, has surely been challenged in recent years. Denny's is on track to deliver an impressive $50 million in free cash flow this year.
|
Denny's (Nasdaq: DENN ) This operator of quick-service casual dining restaurants announced a 6 million share repurchase plan when shares moved above $4. Denny's, which operates 230 company-owned restaurants and franchises another 1,400, has surely been challenged in recent years. Denny's is on track to deliver an impressive $50 million in free cash flow this year.
|
e4fe536f-e0fd-4568-95a2-e000053c61c8
|
727503.0
|
2011-03-07 00:00:00 UTC
|
30 Small Caps Snapped By Smart Money
|
DENN
|
https://www.nasdaq.com/articles/30-small-caps-snapped-smart-money-2011-03-07
|
nan
|
nan
|
The following is a list of small cap stocks, with market caps between $300M-$500M.
All of these companies have seen significant institutional and mutual fund buying over the last three months.
With institutional flows already chasing these names, is there still potential for some upside? What do you think?
Institutional data sourced from Fidelity, short float and performance data sourced from Finviz.
Analyze These Ideas (Tools Will Open In A New Window)
1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize market cap changes for the top stocks mentioned
1. Advance America, Cash Advance Centers Inc. (AEA): Credit Services Industry. Market cap of $315.10M. In the most recent quarter, institutional investors bought 324.0K shares vs. 316.3K shares purchased by mutual funds. This is a risky stock that is significantly more volatile than the overall market (beta = 3.02). After a solid performance over the last year, AEA has pulled back during recent sessions. The stock is -12.13% below its SMA20 and -12.49% below its SMA50, but remains 10.04% above its SMA200.
2. Almost Family Inc. (AFAM): Home Health Care Industry. Market cap of $350.84M. In the most recent quarter, institutional investors bought 153.0K shares vs. 391.3K shares purchased by mutual funds. Might be undervalued at current levels, with a PEG ratio at 0.72, and P/FCF ratio at 10.03. The stock is a short squeeze candidate, with a short float at 7.64% (equivalent to 6.99 days of average volume). The stock has gained 7.96% over the last year.
3. Aviat Networks, Inc. (AVNW): Communication Equipment Industry. Market cap of $365.06M. In the most recent quarter, institutional investors bought 3.2M shares vs. 448.0K shares purchased by mutual funds.
4. BioTime, Inc. Common Stock (BTX): Biotechnology Industry. Market cap of $373.18M. In the most recent quarter, institutional investors bought 920.5K shares vs. 53.1K shares purchased by mutual funds. The stock is a short squeeze candidate, with a short float at 9.89% (equivalent to 14.78 days of average volume).
5. Calamos Asset Management Inc. (CLMS): Asset Management Industry. Market cap of $339.52M. In the most recent quarter, institutional investors bought 384.8K shares vs. 264.6K shares purchased by mutual funds. This is a risky stock that is significantly more volatile than the overall market (beta = 3.29). The stock has gained 40.73% over the last year.
6. Cbeyond, Inc. (CBEY): Diversified Communication Services Industry. Market cap of $393.08M. In the most recent quarter, institutional investors bought 604.8K shares vs. 294.5K shares purchased by mutual funds. The stock is a short squeeze candidate, with a short float at 15.61% (equivalent to 27.06 days of average volume). The stock is currently stuck in a downtrend, trading -10.26% below its SMA20, -14.42% below its SMA50, and -8.51% below its SMA200.
7. China XD Plastics Company Ltd. (CXDC): Rubber & Plastics Industry. Market cap of $329.60M. In the most recent quarter, institutional investors bought 2.6M shares vs. 153.2K shares purchased by mutual funds. The stock has gained 26.28% over the last year.
8. Codexis, Inc. (CDXS): Biotechnology Industry. Market cap of $371.50M. In the most recent quarter, institutional investors bought 4.1M shares vs. 50.1K shares purchased by mutual funds.
9. Denny's Corporation (DENN): Restaurants Industry. Market cap of $410.76M. In the most recent quarter, institutional investors bought 6.4M shares vs. 1.1M shares purchased by mutual funds. The stock has gained 11.35% over the last year.
10. Dynavax Technologies Corporation (DVAX): Drug Manufacturers - Other Industry. Market cap of $342.12M. In the most recent quarter, institutional investors bought 28.6M shares vs. 9.7M shares purchased by mutual funds. This is a risky stock that is significantly more volatile than the overall market (beta = 2.76). The stock is a short squeeze candidate, with a short float at 5.41% (equivalent to 6.43 days of average volume). The stock has gained 45.1% over the last year.
11. Entercom Communications Corp. (ETM): Broadcasting - Radio Industry. Market cap of $451.77M. In the most recent quarter, institutional investors bought 1.4M shares vs. 150.3K shares purchased by mutual funds. This is a risky stock that is significantly more volatile than the overall market (beta = 2.67). The stock is a short squeeze candidate, with a short float at 10.08% (equivalent to 12.85 days of average volume).
12. Entree Gold Inc. (EGI): Gold Industry. Market cap of $346.69M. In the most recent quarter, institutional investors bought 2.2M shares vs. 36.9K shares purchased by mutual funds. After a solid performance over the last year, EGI has pulled back during recent sessions. The stock is -4.45% below its SMA20 and -3.04% below its SMA50, but remains 16.88% above its SMA200. The stock has gained 6.69% over the last year.
13. Excel Maritime Carriers, Ltd. (EXM): Shipping Industry. Market cap of $387.61M. In the most recent quarter, institutional investors bought 973.8K shares vs. 1.2M shares purchased by mutual funds. This is a risky stock that is significantly more volatile than the overall market (beta = 2.88).
14. First Busey Corporation (BUSE): Regional - Midwest Banks Industry. Market cap of $399.46M. In the most recent quarter, institutional investors bought 12.8M shares vs. 2.7M shares purchased by mutual funds. Relatively low correlation to the market (beta = 0.63), which may be appealing to risk averse investors. The stock is a short squeeze candidate, with a short float at 6.61% (equivalent to 27.8 days of average volume). The stock has gained 15.83% over the last year.
15. Fushi Copperweld, Inc. (FSIN): Industrial Electrical Equipment Industry. Market cap of $368.55M. In the most recent quarter, institutional investors bought 1.2M shares vs. 664.0K shares purchased by mutual funds. The stock is a short squeeze candidate, with a short float at 13.16% (equivalent to 14.51 days of average volume). The stock has gained 5.63% over the last year.
16. Gibraltar Industries, Inc. (ROCK): Steel & Iron Industry. Market cap of $325.42M. In the most recent quarter, institutional investors bought 156.6K shares vs. 117.4K shares purchased by mutual funds. The stock has lost 0.46% over the last year.
17. Hawaiian Holdings Inc. (HA): Regional Airlines Industry. Market cap of $335.47M. In the most recent quarter, institutional investors bought 2.5M shares vs. 998.5K shares purchased by mutual funds. The stock is a short squeeze candidate, with a short float at 7.77% (equivalent to 5.89 days of average volume). The stock has lost 17.53% over the last year.
18. Hercules Technology Growth Capital, Inc. (HTGC): Diversified Investments Industry. Market cap of $412.34M. In the most recent quarter, institutional investors bought 5.0M shares vs. 681.8K shares purchased by mutual funds. The stock has gained 13.21% over the last year.
19. IXYS Corp. (IXYS): Semiconductor - Specialized Industry. Market cap of $416.88M. In the most recent quarter, institutional investors bought 237.7K shares vs. 36.7K shares purchased by mutual funds. Relatively low correlation to the market (beta = 0.51), which may be appealing to risk averse investors. Exhibiting strong upside momentum--currently trading 11.98% above its SMA20, 12.83% above its SMA50, and 30.71% above its SMA200.
20. Kite Realty Group Trust (KRG): REIT - Retail Industry. Market cap of $326.20M. In the most recent quarter, institutional investors bought 523.3K shares vs. 604.3K shares purchased by mutual funds.
21. Kongzhong Corp. (KONG): Multimedia & Graphics Software Industry. Market cap of $307.21M. In the most recent quarter, institutional investors bought 808.1K shares vs. 215.0K shares purchased by mutual funds. Exhibiting strong upside momentum--currently trading 20.33% above its SMA20, 23.85% above its SMA50, and 31.58% above its SMA200.
22. LB Foster Co. (FSTR): Basic Materials Wholesale Industry. Market cap of $423.53M. In the most recent quarter, institutional investors bought 229.7K shares vs. 114.5K shares purchased by mutual funds. The stock has gained 11.77% over the last year.
23. Lihua International, Inc. (LIWA): Copper Industry. Market cap of $332.13M. In the most recent quarter, institutional investors bought 3.2M shares vs. 13.8K shares purchased by mutual funds. The stock is a short squeeze candidate, with a short float at 21.02% (equivalent to 13.85 days of average volume).
24. Medifast Inc. (MED): Specialty Retail, Other Industry. Market cap of $344.17M. In the most recent quarter, institutional investors bought 1.3M shares vs. 218.4K shares purchased by mutual funds. The stock is a short squeeze candidate, with a short float at 25.04% (equivalent to 9.27 days of average volume). The stock is currently stuck in a downtrend, trading -8.78% below its SMA20, -14.09% below its SMA50, and -17.6% below its SMA200. The stock has lost 15.29% over the last year.
25. Satcon Technology Corporation (SATC): Semiconductor - Integrated Circuits Industry. Market cap of $433.29M. In the most recent quarter, institutional investors bought 16.3M shares vs. 3.3M shares purchased by mutual funds. The stock is a short squeeze candidate, with a short float at 12.02% (equivalent to 5.02 days of average volume).
26. SemiLEDs Corporation (LEDS): Semiconductor- Memory Chips Industry. Market cap of $429.46M. In the most recent quarter, institutional investors bought 5.3M shares vs. 1.0M shares purchased by mutual funds. The stock is currently stuck in a downtrend, trading -6.96% below its SMA20, -25.21% below its SMA50, and -27.24% below its SMA200.
27. TICC Capital Corp. (TICC): Asset Management Industry. Market cap of $330.90M. In the most recent quarter, institutional investors bought 2.5M shares vs. 127.6K shares purchased by mutual funds. The stock has gained 16.1% over the last year.
28. Uranium Energy Corp. (UEC): Industrial Metals & Minerals Industry. Market cap of $419.20M. In the most recent quarter, institutional investors bought 7.2M shares vs. 1.1M shares purchased by mutual funds. This is a risky stock that is significantly more volatile than the overall market (beta = 2.3). The stock is a short squeeze candidate, with a short float at 10.38% (equivalent to 5.31 days of average volume). The stock has lost 16.18% over the last year.
29. WNS (Holdings) Ltd. (WNS): Business Services Industry. Market cap of $440.46M. In the most recent quarter, institutional investors bought 22.4M shares vs. 86.1K shares purchased by mutual funds. The stock has lost 19.44% over the last year.
30. YM BioSciences Inc. (YMI): Drug Manufacturers - Other Industry. Market cap of $305.59M. In the most recent quarter, institutional investors bought 28.7M shares vs. 277.3K shares purchased by mutual funds. Exhibiting strong upside momentum--currently trading 13.22% above its SMA20, 15.45% above its SMA50, and 54.46% above its SMA200.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Denny's Corporation (DENN): Restaurants Industry. After a solid performance over the last year, EGI has pulled back during recent sessions. Kite Realty Group Trust (KRG): REIT - Retail Industry.
|
Denny's Corporation (DENN): Restaurants Industry. In the most recent quarter, institutional investors bought 324.0K shares vs. 316.3K shares purchased by mutual funds. In the most recent quarter, institutional investors bought 153.0K shares vs. 391.3K shares purchased by mutual funds.
|
Denny's Corporation (DENN): Restaurants Industry. Fushi Copperweld, Inc. (FSIN): Industrial Electrical Equipment Industry. Gibraltar Industries, Inc. (ROCK): Steel & Iron Industry.
|
Denny's Corporation (DENN): Restaurants Industry. All of these companies have seen significant institutional and mutual fund buying over the last three months. Dynavax Technologies Corporation (DVAX): Drug Manufacturers - Other Industry.
|
11f4d6a6-ddc4-45c2-b3f4-aba9b192334e
|
727504.0
|
2010-09-02 00:00:00 UTC
|
After Burger King's Buyout, Who's Next?
|
DENN
|
https://www.nasdaq.com/articles/after-burger-kings-buyout-whos-next-2010-09-02
|
nan
|
nan
|
With a deal in place to acquire Burger King ( BKC ) for a tidy $24 a share, investors are handed the opportunity to quickly assess how its rivals are valued. Any rivals selling at a sharp discount to Burger King's price are likely to see renewed investor interest as the M&A action heats up in the sector.
[Read: How Investors Should Handle the M&A Frenzy ]
Private equity (PE) firms like to buy underperforming companies. In recent years, Burger King has seen McDonald's ( MCD ) and Yum Brands ( YUM ) pull away in terms of same-store sales growth and sharply rising cash flow . Those companies are likely too large and too healthy to be of real interest to these turnaround specialists. For that matter, Chipotle Mexican Grill ( CMG ) is far too healthy -- and richly valued -- to hold any appeal. [ More on Chipotle -- and why you should short it ]
So I decided to take a look at three major chains that are underperforming and have major room for improvement.
A fair deal
Burger King is being acquired for about 11 times trailing cash flow -- a fair multiple when you offset the company's strong brand, yet slightly weaker operating metrics than rival McDonald's, which trades for about 13 times trailing cash flow. The buyout is a bit unusual in that Burger King is not in distress and performing only slightly below expectations.
Rival Wendy's/Arby's Group ( WEN ) has often been considered the most logical buyout candidate, thanks to its very weak results in terms of gross and operating profit margins. Wendy's has been a moderate underperformer while Arby's has been a severe underperformer. Presumably, a PE firm could come in and shake things up to bring the Wendy's and Arby's chains up to snuff. The trouble with that logic is that Nelson Peltz, a major shareholder, has already been working diligently to improve results without any success. PE firms may question whether they can do any better.
But if Wendy's/Arby's could once again operate as well as its peers, then shares would be quite undervalued at these levels. As the table below notes, Wendy's enterprise value is less than its annual sales (or said another way, the shares have an EV/sales ratio below one), while McDonald's trades for more than four times sales and Burger King trades for about 1.5 times sales. That gap is explained away by profit margins. If Wendy's/Arby's could boost margins up to the peer group, then every dollar of sales it generates would be more highly valued by investors (pushing up the EV/sales ratio).
The cheapest stock in the group
Perhaps the real bargain for PE firms would be Denny's (Nasdaq: DENN) , which I recently recommended. [Read: Five Beaten-Down Stocks with +100% Upside Potential ]
Shares are out of favor right now thanks to a severe contraction in sales. Sales should stabilize by year-end, but even at these depressed levels, Denny's profit metrics appear solid. Gross and operating profit margins are on par with Burger King and would likely be nicely higher if and when sales rebound. Most importantly, shares trade for less than seven times EBITDA, on an enterprise value basis. PE firms can presume that EBITDA can rise sharply as the economy improves, so they can offer to pay up to nine or 10 times trailing EBITDA under the assumption that the forward EBITDA multiples would be well lower.
As I noted in my recommendation of Denny's a few weeks ago, shares likely have significant upside down the road, so it's unclear that a PE firm would be able to get shares below $4. Then again, they may not be inclined to pay above that figure in light of the still-slumping sales. So Denny's may not come into play until results start to stabilize and turn up.
A turnaround play
DineEquity ( DIN ) , which operate the Applebee's and International House of Pancakes (IHOP) franchises, is not seen as a clear rival to the burger chains. But like Burger King, it is seen as a typical PE target and that's helping push shares up +7% on Thursday. DineEquity throws off large amounts of cash flow, which PE firms love to see when they look to load up their targets with debt.
The company is already sitting on more than $1.6 billion in debt, so there are limits to how much more debt it can take on, but annual free cash flow of more than $100 million compared to a market value of around $600 million implies that a PE firm could pay a +20% to +30% premium for DineEquity, keep it private for three or four years while paying off some debt with that free cash flow and then bring those restaurant chains public again once sales are on the upswing and investors see them as growth vehicles.
Action to Take --> Wendy's/Arby's has acknowledged receiving buyout interest in the recent past, though it's unclear that any PE firm could swoop in while Nelson Peltz is in control. If there is a PE value to be unlocked, he's got first dibs, though he has yet to make any such move in that direction. Denny's looks like the most clear-cut acquisition candidate, and as soon as sales stabilize, perhaps in a quarter or two, then shares could heat up.
-- David Sterman
David Sterman started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and a Managing Editor at TheStreet.com. Read More...
Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The cheapest stock in the group Perhaps the real bargain for PE firms would be Denny's (Nasdaq: DENN) , which I recently recommended. Sales should stabilize by year-end, but even at these depressed levels, Denny's profit metrics appear solid. As I noted in my recommendation of Denny's a few weeks ago, shares likely have significant upside down the road, so it's unclear that a PE firm would be able to get shares below $4.
|
The cheapest stock in the group Perhaps the real bargain for PE firms would be Denny's (Nasdaq: DENN) , which I recently recommended. Sales should stabilize by year-end, but even at these depressed levels, Denny's profit metrics appear solid. As I noted in my recommendation of Denny's a few weeks ago, shares likely have significant upside down the road, so it's unclear that a PE firm would be able to get shares below $4.
|
The cheapest stock in the group Perhaps the real bargain for PE firms would be Denny's (Nasdaq: DENN) , which I recently recommended. Sales should stabilize by year-end, but even at these depressed levels, Denny's profit metrics appear solid. As I noted in my recommendation of Denny's a few weeks ago, shares likely have significant upside down the road, so it's unclear that a PE firm would be able to get shares below $4.
|
The cheapest stock in the group Perhaps the real bargain for PE firms would be Denny's (Nasdaq: DENN) , which I recently recommended. Sales should stabilize by year-end, but even at these depressed levels, Denny's profit metrics appear solid. As I noted in my recommendation of Denny's a few weeks ago, shares likely have significant upside down the road, so it's unclear that a PE firm would be able to get shares below $4.
|
8ad1ad9c-9f5a-4114-975e-1c311526588c
|
727505.0
|
2010-08-03 00:00:00 UTC
|
Five Beaten-Down Stocks with +100% Upside Potential
|
DENN
|
https://www.nasdaq.com/articles/five-beaten-down-stocks-100-upside-potential-2010-08-03
|
nan
|
nan
|
The coming months could prove to be an enticing time for investors. Many stocks are trading well off their highs under the assumption that the coming streams of economic data will prove to be disheartening. If we indeed are in for a tough slog in the months and quarters ahead, then many of these stocks could meander at their current cheap valuations. But even modestly good news on the economic front could sharply boost interest in stocks, as we may be looking at the beginning of a sustained economic upturn.
We can use 2002 as a reference point. Prospects were glum and many stocks sported low P/E ratios. That set the stage for a powerful two-year run that pushed the S&P 500 up +23% in 2003 and +11% in 2004, while a range of individual stocks doubled off of their lows. With that in mind, here are some stocks that could sharply benefit from a more positive economic backdrop or simply better news out of quarterly results.
Winnebago ( WGO )
In early June, shares of Winnebago soared after the company announced that sales in the all-important spring season were very robust. Management noted that demand for recreational vehicles was quite strong compared to a year ago, though below levels seen just a few years ago. The euphoria eventually faded, and shares have lost nearly -40% during the past three months.
Winnebago's rebound may prove to be erratic. After all, the winter months can be fairly lean. But if investors start to see signs that the consumer is beginning to spend, then Winnebago will be seen as a prime beneficiary of an improving economy. It's important to remember that consumers that were relatively financially healthy heading into the downturn have also sharply boosted their savings rate. At some point, those consumers may feel comfortable treating themselves to high-ticket purchases.
After the recent sell-off, shares now trade for about 20 times fiscal (August) 2011 forecasts, and more importantly, six times annual profits in the middle of the last decade when the industry was at its peak. Demand for RVs should eventually rise back to that peak, as the amount of baby boomers continues to grow. Assigning a multiple of 15 off of those peak earnings would push shares up to $30, nearly +200% above current levels. That price target is unlikely to be seen for several years, but for patient investors, Winnebago could be a real home run.
A123 Systems (Nasdaq: AONE)
This maker of advanced battery systems was initially a hot IPO , but perhaps came out just a bit too early. The company posted several lackluster quarters after going public , sending shares down from $28 to under $8. Shares have started to rebound in recent sessions back up $10 as investors start to realize they were judging the company's results while the electric car market has yet to really take off. But it will. Soon after the Nissan leaf is released in late 2010, a slew of additional electric cars will hit the market from companies like Mitsubishi, Smart, Chrysler/Fiat and perhaps BMW.
As investors start to re-focus on this potentially massive market, shares are likely to turn over a new leaf, perhaps back up above the $20 mark. The next few quarters will likely be lackluster for A123 Systems, so these shares will only benefit in a rallying market as investors once again focus on high-growth opportunities.
Biodel (Nasdaq: BIOD)
This medical device company holds a great deal of promise -- or at least it did until investors lost interest, pushing shares down from nearly $20 in the summer of 2008 to a recent $4. But a rebound may be in the offing.
Biodel has developed a device that injects insulin into the bloodstream more rapidly than other approach. The device can automatically respond to blood glucose levels, regulating the amount of insulin required. After several years of anticipation, Biodel is moving closer to the regulatory finish line.
The insulin device has had a very strong safety profile and has been quite effective in clinical trials. FDA approval could come late this year, and the company may sign key partnerships before then. Might shares once again re-visit those lofty levels seen back in 2008? Time will tell.
Deer Consumer Products (Nasdaq: DEER)
I've written about this company several times before, usually when management boosts guidance and extends a current share buyback. That's about all they can do to support the stock, which continues to find little love in this market, despite stellar growth prospects.
Deer makes kitchen appliances for global brands like Stanley Black & Decker ( TK ) , and is now ramping up domestic sales, steadily building its brand among Chinese consumers.
The Chinese economy will likely cool off from its recent torrid pace, but the Chinese middle class looks set to keep expanding. Sales grew +86% in 2009 and look set to grow another +97% this year and +28% in 2011. Meanwhile, shares trade for little more than half their 52-week high, as China-based stocks of all stripes get heavily discounted in this market. Assuming shares trade up to 18 times 2011 profits, investors are looking at a two-bagger.
Denny's (Nasdaq: DENN)
Management at this restaurant chain has tried every trick in the book to boost sales, from special breakfast deals to two-for-one specials. But sales are still in a slump, after falling sharply over the last two years. Management may simply need to wait until consumers are spending again, at which time sales could rebound at a decent pace and profits at a more robust pace. This is a very high fixed-cost business, which historically has been marked by profits that grow twice as fast as sales.
Investors don't need to see Denny's rebound all the way back to full health -- they simply need to start seeing more positive trends and then extrapolate future results from there.
Even with the sales slump, Denny's remains profitable and trades for about six times next year's projected EPS of $0.43. Looking out several years, EPS could rebound to the $0.60 or $0.70 level. Slap a multiple of 10 on that and shares could rise to at least $6 -- double or triple current levels.
Action to Take --> Winnebago, Denny's and Deer Consumer Products are unlikely to fall much further, even if the economy remains in a funk, thanks to supportive fundamentals. They each represent roughly +100% to +150% upside. Biodel and A123 Systems are more speculative and do have some downside risk, but also represent even sharper upside potential. A basket of these stocks stashed away for a while may prove to be a winning move.
-- David Sterman
David Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More...
Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
StreetAuthority
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors don't need to see Denny's rebound all the way back to full health -- they simply need to start seeing more positive trends and then extrapolate future results from there. Denny's (Nasdaq: DENN) Management at this restaurant chain has tried every trick in the book to boost sales, from special breakfast deals to two-for-one specials. Even with the sales slump, Denny's remains profitable and trades for about six times next year's projected EPS of $0.43.
|
Even with the sales slump, Denny's remains profitable and trades for about six times next year's projected EPS of $0.43. Denny's (Nasdaq: DENN) Management at this restaurant chain has tried every trick in the book to boost sales, from special breakfast deals to two-for-one specials. Investors don't need to see Denny's rebound all the way back to full health -- they simply need to start seeing more positive trends and then extrapolate future results from there.
|
Denny's (Nasdaq: DENN) Management at this restaurant chain has tried every trick in the book to boost sales, from special breakfast deals to two-for-one specials. Investors don't need to see Denny's rebound all the way back to full health -- they simply need to start seeing more positive trends and then extrapolate future results from there. Even with the sales slump, Denny's remains profitable and trades for about six times next year's projected EPS of $0.43.
|
Denny's (Nasdaq: DENN) Management at this restaurant chain has tried every trick in the book to boost sales, from special breakfast deals to two-for-one specials. Investors don't need to see Denny's rebound all the way back to full health -- they simply need to start seeing more positive trends and then extrapolate future results from there. Even with the sales slump, Denny's remains profitable and trades for about six times next year's projected EPS of $0.43.
|
f8e37044-28ed-4d0c-927f-da6a1799b049
|
727506.0
|
2010-06-01 00:00:00 UTC
|
Some Ideas ... and Some Potential Bargains ... To Help You Focus on What Matters
|
DENN
|
https://www.nasdaq.com/articles/some-ideas-and-some-potential-bargains-help-you-focus-what-matters-2010-06-01
|
nan
|
nan
|
For most investors, the health of the U.S. economy should be the most important item to track. How the economy fares will directly correlate with how the Nasdaq, NYSE and S&P 500 perform -- over the long-term. But right now, attention is focused on many "outside" factors, most of which are more relevant to foreign investors or short-term traders. If you let those factors rattle you, you're likely to move to cash at the wrong time.
To be sure, the recent market weakness can test anyone's mettle. But should we really be surprised at a -10% correction after we saw the S&P 500 move from 700 to 1,200 in just 14 months? That kind of +70% move is virtually unheard of, and should have led to some near-term caution. But the pullback doesn't mean the rally has ended. Indeed, the most important pieces of data are flashing green.
For example, the Institute of Supply Management's ( ISM ) index of factory activity in May has just been released, and the rate of orders held steady from the prior month at 65.7. (Any number above 50 indicates that the factory sector is expanding). In addition, the ISM's employment index expanded last month from 58.5 to 59.8. That means that the monthly jobs report, due out this Friday, is likely to be in line with or above forecasts.
Consumers Getting Stronger
As many headed off for a long holiday weekend on Friday, they may have missed some important data regarding consumer spending. The Commerce Department noted that consumer spending barely rose in April after rising for six months. Bad news, right? Actually, personal income climbed 0.4%, in line with recent monthly gains. That means consumers are looking to bolster their savings and pay off debt. The savings rate rose to 3.6% in April, from 3.1% in March, and could well rise further as consumers remain cautious. After all, the nightly news is in "scare mode" right now. That may crimp spending in the near-term, but should set the stage for stronger consumer balance sheets down the road. If household savings keep growing, and if job creation continues, the economy is very likely to get back on to a path of sustainable growth. It's too early to sound the all-clear on the economy, but the scary headlines out of Europe, the Gulf Coast and the Middle East are decreasingly likely to have a major negative impact going forward.
More than likely, economic growth will not be robust this year, as we're still feeling the after-effects of the global economic malaise of 2008 and 2009. But the trend is positive, and growth should become more inspiring next year and into 2012. And remember that investors look six to 12 months ahead, so the market is likely digesting the tepid growth outlook right now. By this summer, the market should look ahead into 2011, and should like what it sees.
Action to Take --> A wide range of stocks are starting to trade down from their highs, even as the respective earnings outlooks are materially strengthening. Companies that have pared expenses in recent years can continue to show robust profit growth with just modest sales growth. That backdrop fueled a powerful rally in the 1990s as profit margins exceeded previous highs.
Here's just a sampling of companies whose shares have fallen more than -25% from their 52-week highs while also seeing their earnings estimates rise during the past 90 days: Seagate Technology ( STX ) , Integrated Silicon Solutions (Nasdaq: ISSI) , Deer Consumer Products (Nasdaq: DEER) , Electronic Arts (Nasdaq: ERTS) , Dell, Inc. (Nasdaq: DELL) and Denny's (Nasdaq: DENN) .
If you've got cash to put into play, wait for days when the market is sharply trading off. With all the daunting global headlines right now, that's bound to happen soon. Happy hunting.
-- David Sterman
Staff Writer
StreetAuthority
Disclosure: David Sterman does not own shares of any security mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Here's just a sampling of companies whose shares have fallen more than -25% from their 52-week highs while also seeing their earnings estimates rise during the past 90 days: Seagate Technology ( STX ) , Integrated Silicon Solutions (Nasdaq: ISSI) , Deer Consumer Products (Nasdaq: DEER) , Electronic Arts (Nasdaq: ERTS) , Dell, Inc. (Nasdaq: DELL) and Denny's (Nasdaq: DENN) . For example, the Institute of Supply Management's ( ISM ) index of factory activity in May has just been released, and the rate of orders held steady from the prior month at 65.7. It's too early to sound the all-clear on the economy, but the scary headlines out of Europe, the Gulf Coast and the Middle East are decreasingly likely to have a major negative impact going forward.
|
Here's just a sampling of companies whose shares have fallen more than -25% from their 52-week highs while also seeing their earnings estimates rise during the past 90 days: Seagate Technology ( STX ) , Integrated Silicon Solutions (Nasdaq: ISSI) , Deer Consumer Products (Nasdaq: DEER) , Electronic Arts (Nasdaq: ERTS) , Dell, Inc. (Nasdaq: DELL) and Denny's (Nasdaq: DENN) . Companies that have pared expenses in recent years can continue to show robust profit growth with just modest sales growth. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. © Copyright 2001-2010 StreetAuthority, LLC.
|
Here's just a sampling of companies whose shares have fallen more than -25% from their 52-week highs while also seeing their earnings estimates rise during the past 90 days: Seagate Technology ( STX ) , Integrated Silicon Solutions (Nasdaq: ISSI) , Deer Consumer Products (Nasdaq: DEER) , Electronic Arts (Nasdaq: ERTS) , Dell, Inc. (Nasdaq: DELL) and Denny's (Nasdaq: DENN) . And remember that investors look six to 12 months ahead, so the market is likely digesting the tepid growth outlook right now. Companies that have pared expenses in recent years can continue to show robust profit growth with just modest sales growth.
|
Here's just a sampling of companies whose shares have fallen more than -25% from their 52-week highs while also seeing their earnings estimates rise during the past 90 days: Seagate Technology ( STX ) , Integrated Silicon Solutions (Nasdaq: ISSI) , Deer Consumer Products (Nasdaq: DEER) , Electronic Arts (Nasdaq: ERTS) , Dell, Inc. (Nasdaq: DELL) and Denny's (Nasdaq: DENN) . If you let those factors rattle you, you're likely to move to cash at the wrong time. More than likely, economic growth will not be robust this year, as we're still feeling the after-effects of the global economic malaise of 2008 and 2009.
|
904c05c4-fcd2-411c-aa0d-1ca9cb3a20b9
|
727507.0
|
2023-12-11 00:00:00 UTC
|
Burgers & Booze (You Want to Click, Don't You?)
|
DEO
|
https://www.nasdaq.com/articles/burgers-booze-you-want-to-click-dont-you
|
nan
|
nan
|
In this podcast, Motley Fool analyst Bill Mann and host Dylan Lewis discuss:
McDonald's plans to expand to 50,000 locations and 250 million loyalty members by 2027, and other insights from the company's investor day.
The sauce Bill wishes would get more love at McDonald's.
Slowing growth in the spirit markets, and how it is affecting Brown-Forman and Diageo.
Motley Fool host Deidre Woollard talks with Slutty Vegan founder Pinky Cole about building a restaurant chain, leveraging brand partnerships, and investing in the future.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
Should you invest $1,000 in McDonald's right now?
Before you buy stock in McDonald's, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and McDonald's wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
This video was recorded on Dec. 06, 2023.
Dylan Lewis: Burgers might be getting better and even closer. Motley Fool Money starts now. I'm Dylan Lewis and I'm joined over the airways by Motley Fool Senior Analyst Bill Mann. Bill, thanks for joining me.
Bill Mann: Hey Dylan. Thanks for the invite. Hope you're doing great.
Dylan Lewis: I am and I have to be honest, Bill, I feel like today's show feels a bit like an instant classic. We have two stories and an interview. All of it is about food, probably one of our favorite things to talk about. So I am incredibly excited. I hope you're bringing the excitement too.
Bill Mann: The gluttony market is ready to be entertained.
Dylan Lewis: Why don't we start with McDonald's on the gluttony market [laughs]. They have their investor day this week and they just revealed some huge growth targets as part of their investor day presentations. Bill targeting 50,000 restaurant locations by 2027, which would be the fastest period of growth in the company's history, they currently have like 42,000 locations. My first question is, does Earth have enough room for 50,000 McDonald's locations?
Bill Mann: I just want to put this in context a little bit. In the United States, there are about 13,400 McDonald's. Obviously, not all of that growth is going to happen in the US, in fact, I would suspect that very little of it will be here. So when they're talking about an additional 8,000 McDonald's, think about all of the McDonald's all around the United States and they are building 60% of those in the next couple of years targeted by 2027. They're going to do so worldwide. It's been a tough year for some of the McDonald's markets, obviously they are now out of Russia, for example, which was a big market for them. They've deemphasized China to some degree. But I suspect the later in particular you're going to see a renewed emphasis. I don't know if this has been mentioned to you before, Dylan, but there are more than a billion people in China.
Dylan Lewis: There are quite a few. I would imagine that there are probably some McDonald's locations that could go there to serve some of those people.
Dylan Lewis: Yeah. They've got several hundred McDonald's throughout China now. But there is actually plenty of room for McDonald's to grow. One of the more interesting things about this investor day was the fact that they dropped this little nugget in. Seventeen of the McDonald's menu items are billion dollar brands in their own rights.
Dylan Lewis: It's incredible. I like that you drop nugget there I don't know if that was on purpose, but the nuggets are part of the one of those 17 brands. It's an interesting way to restate just how powerful the collective brand value of McDonald's is.
Bill Mann: I'm a little bit angry that hot mustard sauce isn't a billion dollar brand. Because I feel like that is the sole reason that I go into McDonald's just to get anything with the hot mustard sauce. But going across the board, they're talking about basically breaking down and building back up not only how people interact with McDonald's through mobile ordering, through delivery even, but also in how these items are made.
Bill Mann: Yeah, they have a couple of different initiatives that tie into some of this stuff. One of them is a Best Burger initiative. This is, I think in some ways kind of a Domino's style initiative where McDonald's is revisiting one of its most iconic brands, it's Burger Line, and saying, I think we need to improve this a little bit. From what I've read from The Wall Street Journal, New Brio spun, coming to this thing, they're going to be changing how they handle ingredients, also how patties are prepared. I look at this Bill and I say, with the way that the food market has moved and just what it costs to buy something at a McDonald's or Burger King, these are no longer budget options, and it makes sense to me that they need to revisit their offering because they are no longer competing and clearly cheaper than the other burgers out there. They're reaching parity with some of those more fast casual style burgers.
Bill Mann: We've reached burger parity now. It has been the case for a long time that McDonald's was not considered a discount or a low cost place in a bunch of the markets they are in. This again is where a lot of their growth is coming from. Now the Domino's thing that you're talking about is legendary marketing where they came out and they said, hey, guess what? Our pizza isn't very good, and you know what? We're going to make it better. This is not what McDonald's is doing. I think that they are perfectly happy, satisfied with the quality of their products. But as you mentioned, as they get into higher price points, which is somewhat inevitable, they do recognize the fact that they do need to compete on quality in certain areas while keeping the McDonald's experience as similar and as familiar as it has been in the past.
Dylan Lewis: One other spot for growth that I do want to check in on with this investor day and some of the things that they've talked about is we see location growth as a major headline here. But you zoom in and the digital element and the loyalty element of their business is increasingly coming into focus. One of the other big headlines was them really wanting to expand the use of their loyalty programs and the impact and the spend that they see with their loyalty programs, Bill that to me it seems exactly like where the food industry is going and we're just going to see more and more of this from the chains.
Bill Mann: I think there's no accident at all that the only external quote that they put in their big press release came from Sundar Pichai, who's the CEO of [Alphabet's] Google. AI is going to be a very big thing for McDonald's as it is for Domino's now. You can giggle a little bit at the thought of a burger in the metaverse or your artificially intelligent, this is how the micro chip is going to get delivered into your system. They also want to expand their loyalty program by as many as 250 million active users. In the way that they're doing it, being much smarter in how they reward and attract the people they consider to be their best and most valuable customers.
Dylan Lewis: That's proven to be an incredibly valuable relationship for people to have. I think one of the things I'm interested to see as we see this grow is the system connection they have, where we see more kiosks in locations, how does that sync up with the app and how people know, and really what businesses are generally able to do in terms of pushing members to new products or higher margin products, as the relationship becomes more digital and they have a little bit more control over what people are paying attention to on the menu.
Bill Mann: Yeah, I'm just excited to walk into a McDonald's someday and have hot mustard sauce just handed to me the moment I come in regardless of whatever else I order.
Dylan Lewis: You know, Bill, if you keep mentioning it on the podcast, it's basically free advertising. It may become the billion dollar brand that you want it to be. It's going to take a while, but I think if you're consistently plugging it on the show, you might help it get its way there.
Bill Mann: Honestly speaking, my smartphone is right here next to me and I'm sure it's going, oh yeah, hot mustard sauce. You've mentioned that quite a lot. I guess this is what we're going to be delivering your direction. So yes, our AI overlords are moving into the McDonald's space as well.
Dylan Lewis: We have McDonald's projecting some incredible growth, a slightly different story. When we take a look over at the whiskey market. Jack Daniels's owner, Brown Foreman, disclosed that whiskey sales were down 2% for the first half of its fiscal year, which sent shares down 10% today, Bill, we're also seeing shares of Diagio down. It seems like generally there's a little bit of softness in the spirit markets.
Bill Mann: Yeah, so both of those companies, and those are two of the largest publicly traded spirits makers in the world. Brown Foreman is the baker of among other things, Jack Daniels is probably its most important brand. Especially in the higher end of the whiskey market, we've seen a fair amount of what people have considered to be a bubble mentality in the really high end among the collectors. The prices for whiskies have gone through the roof. It is interesting to me the fact that it is down about 1% year over year, and the stock is down about 20, which should tell you 20% over the year. It's down nine-ish percent today at Brown Foreman. It should tell you a little bit the amount of enthusiasm that was being built into the market specifically as it comes to the whiskey market, but it really goes across the board for spirits.
Dylan Lewis: Yeah, I think all told Brown Foreman revised its guidance down from 5%-7% year over year, organic sales to like 3-5% so it's still projecting growth for the year but expecting some softness. This was for me, Bill an interesting opportunity to take a step back and look at the alcohol market in the United States. You look at where spirits were in 20 years ago, early 2000, about 28% market share. It has now reached parity with beer. They both own about 40 plus percent of the overall alcohol market and Brown Foreman has been a huge beneficiary of that. Diagio has also been a huge beneficiary of that. Do you feel like we're just having to reach a point where we're moderating our growth expectations a little bit?
Bill Mann: When you put it that way, it's wild to think about because it's not like you would look at the US beer market and say that they've been resting on their laurels. There has been a huge growth in craft brewing. Maybe even just the top-line major brewers have, they're getting attacked on all end. Included in the spirits market is an area of the market called ''Ready To Drink'' and you go to grocery shelves now and you see the Moscow Mules and things that are already in cans. This was really never done before. It was a big market for them and I think it came on the tail end of the Hard Seltzer movement. If alcoholic water isn't enough for you, have we got an opportunity for you? Yes. They are looking for ways for spirits to be put out in a lower alcohol format and consumers have responded in a big, big way.
Dylan Lewis: It is interesting you bring that up because it's a category, to me, that has seen innovation in an incredible way over the last 5-10 years. It has probably never been better to be a drinker in the United States, especially if you're not someone who traditionally has liked beer or liked wine. You go to a supermarket now and you have a lot of those ready-to-drink type options that you would have had to have made at home five or 10 years ago. It seems like we are almost waiting for that next catalyst or waiting for that next trend in the space.
Bill Mann: Yeah, maybe I love how you put it that this is like a golden age for drinkers. [laughs] If you love drinking, it's never been better. Yeah. As far as I'm concerned, I prefer my alcohol to be weapons-grade so none of this is particularly of great interest to me. But you take Jack Daniels as a platform and Jack Daniels as a brand is worth billions of dollars, so the fact that Brown Foreman has moved it into different formats, lower alcohol, fruitier drinks, carbonated drinks, I don't think that we've seen the end of it. I think we are just at the beginning of those levels of innovation. Again, as far as I'm concerned though, I'm an old fuddy-duddy, give me whiskey in a glass with an ice cube maybe.
Dylan Lewis: Bill Mann is a man of weapons-grade spirits and hot condiments. Bill, I appreciate you being on the show today.
Bill Mann: Thanks, Dylan.
Dylan Lewis: Listeners we're not quite done talking burgers and fries. Up next, Deidre Woollard talks with Pinky Cole, founder of Slutty Vegan, to discuss what it takes to build a marketing company masquerading as a restaurant chain.
Deidre Woollard: I want to talk a little bit to start off with about your brand in general because a lot of people think they have the idea for the next food trend and we've seen so many food trends come and go, highly competitive space. How did it start for you and how did you find the angle that worked for you?
Pinky Cole: I was a television producer and a casting director at the time where I came up with Slutty Vegan and mind you, I had a restaurant before that cooled on fire and I lost everything. This was my redemption period. I'm thinking that, OK, I got my dream job working on TV. I'm doing well. I don't need to do anything else, but the universe has something else aligned for me and that was this crazy concept called Slutty Vegan that I came up with in my two-bedroom apartment. Not knowing that this concept would turn into a multi-million dollar brand, I was really just trying to, one, have a side hustle and two, show my friends that you could eat vegan and it could be cool. The next thing I know, I have this concept that is now becoming a household name that everybody wants to be a part of. It's been five years since I created the brand and I have done so much. We opened up 13 and counting locations, we want to bed in the airport. We've had tons of brand partnerships and the brand continues to grow. When I look back five years over my life and I'm like, I cannot believe that all of this has happened over burgers, pies, and fries. I'm excited about the growth in my business and it just really just opened up so many verticals for the other things that I'm doing.
Deidre Woollard: You've got this bold brand and then you're putting your brand in Target so how did that happen and how has the response been so far?
Pinky Cole: Target is a very interesting story. I was at a festival called Afro Punk and it was an Executive Target. And somebody was like, that's an executive target, you need to go talk to them. Me being who I'm, one thing about me is I'm always going to shoot my shot. I walked up to him and I introduced myself to him. I'm like, do you know who I am? I own Slutty Vegan. I want to talk to you and he was looking at me like, this girl is crazy. That conversation was just one so very organic and fluid and authentic. There was so much essence that was born out of that conversation. As a result of that, he was just like, I like you, I like your spirit. Beyond the business and all the things that you do, you have a really good spirit, and it just meshes with who I am and what I represent. I want to help you. From that conversation, we've been able to put our bacon in stores, our seasoning in stores, our slutty vegan dips in stores, and that was about almost two years ago and the relationship has been so beautiful. One, because Target obviously is for the community, and they've shown that time and time again, which I can appreciate. Two, to go from being a mom-and-pop shop turn corporation to be able to have products in stores and my friends and family can walk past and say, damn, that's pinky stuff in stores is the best feeling in the world because I never in my life imagined to have products on shelves of stores that I shopped at as a little girl. Now to be one of those people who has products in stores, it's a dream come true. I'm just happy, and I'm thankful for Target, and it only gets better from here.
Deidre Woollard: I'm curious about the bacon. We were talking before the show, and I've had the dips, but the bacon isn't available yet where I live. But I wanted to get your take too on the foam meat trend in general because I know you've used Beyond Meat and Impossible in some of your products. Beyond Meat publicly traded company has been one of those things where people are asking if the market is big enough for what they were planning. What do you think about the foam meat market in general?
Pinky Cole: I'm going to be totally honest because that's the only way that I could be. I believe that the market is very saturated right now. Once upon a time, when people wanted vegan food, you couldn't just go to every single restaurant and get a vegan option. Then I believe that I contributed to the craze. The trinities alongside Beyond Meat and Impossible Meat of making it super popular that all big businesses wanted to tap into the market. Everybody wants to be a part of a hot market. What happens when everybody gets a part of a hot market? It becomes saturated. When it's saturated, you don't have to look far and wide to go get it. You don't have to pay $17 for a vegan burger anymore. You can pay $3 and go to the grocery store and get that. What I think is happening now is because the market is so saturated, a lot of businesses are unable to sustain themselves who strictly focus on vegan food. The competitive advantage that I have is I've already built a true solid concept that's proven and people love it. If I don't sell another burger right now, Lady Vegan is still a brand. I could still sell other products, but a lot of other businesses can't say that. Is it difficult? Very well, it's very difficult. I still use Impossible and I still use Beyond, and I really respect and love them and love their partnership. But I also think that collectively as a market, we have to figure out how to continue to get innovative so that this wave doesn't die, so it can continue to sustain itself so that we can all be successful. But I think we'll get through it.
Deidre Woollard: Well, some of the push back, too, has been that some of the vegan options aren't healthy. There's the two camps of vegan is the healthiest option and while vegan, there's a whole spectrum within vegan. Where do you sit in that?
Pinky Cole: I think there's a lot of propaganda around veganism in the meat industry. Obviously, veganism has taken over per say when it comes to people eating meat and not eating meat. Now there's a level of competition, so obviously there's going to be some propaganda associated with it. I believe that everything is in moderation. My concept is to meet people where they are. Am I saying that you got to eat a salad every day? Absolutely not. But what I'm saying is you come in slutty vegan, and you can get a familiar option, something that you're already used to, and then it might change your mindset on eating vegan when you go to another restaurant. That's really my take on it. I believe, like I said, everything has to be in moderation. Whether you are eating chicken, beef, pork, or vegan burger, everything is in moderation. There are healthier options that is in the vegan community obviously. A lot of people push burgers and fries. But if you look a little bit deeper, you'll realize that there are a lot of healthy vegan options, and you just got to be mindful of what you eat.
Deidre Woollard: You've also taken your brand, and you've ventured into all these diverse collaborations with Steve Madden for a Pea-certified sneaker. You've got bad collection lip bar with a vegan lipstick. What have you learned from these successful collaborations, and what are you looking for in your next collaboration?
Pinky Cole: What I learned in collaboration is that is the surest way to grow your business by way of brand partnerships. You want to get exposure, you attach yourself to a brand that's bigger than yours. For anybody that's watching and listening to this, that is part of the surest way to get a different level of exposure if you're trying to get a new audience. If you want more people to hear about your brand, you got to connect with the right people. It's just like relationships, personal relationships, professional relationships. You got to align yourself with the people who are already doing it, who are already successful so that you can continue to grow your brand and grow your business. That's probably one of the biggest things that I've learned. We got a lot of really dope brand partnerships that are coming up in 2024. I'm really excited about them because a lot of the people that I like to partner with wouldn't typically brand themselves with a vegan restaurant. But I like to say that slightly vegan is more than just a restaurant. We are a marketing company that happens to sell burgers, fries, and pies. This is a lifestyle movement. When you think about Pepsi, when you think about Coca-Cola, this is a movement that's not just going to stop with food. It is a movement that makes people feel good, it makes people feel like they can conquer the world. That is how I leave with it when we do brand partnerships. I feel good about what we have going on, coming up in Q1 and Q2, even in Q3 with the brand partnerships that we've already been planning with.
Deidre Woollard: As a person who's investing in your future, investing in your family's future, how has the way that you've invested, both in your business and in your personal life changed?
Pinky Cole: That you're a great interviewer, by the way. Nobody ever asked me these kind of questions. My personal life, I'll start there. I put my kids in Montessori School. That might not seem like a big fit. But I did that because I wanted to make sure that I'm fully preparing my children for the world in a way that I didn't get that level of preparation. I'm utilizing my resources to give them the push that they need so that they could be the very best. My daughter is about to have vocal lessons, she's two years old. I get to do all the things that I didn't get to have done by way of lack of resources when I was growing up. I make sure that my environment is happy and healthy. I'm fortunate enough to live in a country club. I'm fortunate enough to have trust funds and plans for my children so that when they turn 18, whether they decide to go to college or not, they are set up for the future. Personally, it's important to make sure that my kids have what they need.
Because at the end of the day, they are now my number one priority. Making sure that my kids are good. Professionally, same thing. Like real estate. Making sure that the business that I create yields a return that I can reinvest in the business and I also can reinvest in the community. That's really important to me, and I believe that every entrepreneur should have a philanthropic arm in that business. Because it's not always about just reinvesting money in the business and that's it. You got to reinvest into the people that are investing into you, and that's how you continue to grow successful and sustainable businesses. It feels good to be able to do that on both sides, and it only continues to get better as I evolve. I've been a legitimate entrepreneur for the last five years, and it is hard, absolutely, but is it worth it? Totally. I wouldn't change a thing and the more that I can be around and surround myself with the people who are already successful, I know that my thought process will evolve and even get better more than it is right now.
Dylan Lewis: As always, people on the program may own stocks mentioned and the Motley Fool may have formal recommendations for or against. It's not buy or sell anything based solely on what you hear. I'm Dylan Lewis. Thanks for listening. We'll be back tomorrow.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Bill Mann has positions in Alphabet and Domino's Pizza. Deidre Woollard has positions in Alphabet. Dylan Lewis has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Beyond Meat, Domino's Pizza, and Target. The Motley Fool recommends Diageo Plc and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
A full transcript follows the video. See the 10 stocks *Stock Advisor returns as of December 7, 2023 This video was recorded on Dec. 06, 2023. In this podcast, Motley Fool analyst Bill Mann and host Dylan Lewis discuss: McDonald's plans to expand to 50,000 locations and 250 million loyalty members by 2027, and other insights from the company's investor day.
|
A full transcript follows the video. See the 10 stocks *Stock Advisor returns as of December 7, 2023 This video was recorded on Dec. 06, 2023. In this podcast, Motley Fool analyst Bill Mann and host Dylan Lewis discuss: McDonald's plans to expand to 50,000 locations and 250 million loyalty members by 2027, and other insights from the company's investor day.
|
A full transcript follows the video. See the 10 stocks *Stock Advisor returns as of December 7, 2023 This video was recorded on Dec. 06, 2023. In this podcast, Motley Fool analyst Bill Mann and host Dylan Lewis discuss: McDonald's plans to expand to 50,000 locations and 250 million loyalty members by 2027, and other insights from the company's investor day.
|
A full transcript follows the video. See the 10 stocks *Stock Advisor returns as of December 7, 2023 This video was recorded on Dec. 06, 2023. In this podcast, Motley Fool analyst Bill Mann and host Dylan Lewis discuss: McDonald's plans to expand to 50,000 locations and 250 million loyalty members by 2027, and other insights from the company's investor day.
|
d95f72d6-4eca-4721-a9ed-d539bb0b6e1f
|
727508.0
|
2023-11-28 00:00:00 UTC
|
DEO Quantitative Stock Analysis
|
DEO
|
https://www.nasdaq.com/articles/deo-quantitative-stock-analysis-3
|
nan
|
nan
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. This deep value model looks for inexpensive stocks that could be potential takeover targets.
DIAGEO PLC (ADR) (DEO) is a large-cap growth stock in the Beverages (Alcoholic) industry. The rating using this strategy is 84% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
QUALITY: PASS
ACQUIRER'S MULTIPLE FAIL
Detailed Analysis of DIAGEO PLC (ADR)
DEO Guru Analysis
DEO Fundamental Analysis
More Information on Tobias Carlisle
Tobias Carlisle Portfolio
About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. He is the author of "The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market" and the founder of Acquirer's Funds. He is also the author of "Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations" and co-author of Quantitative Value: "A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors" Tobias is originally from Australia, where he worked an an analyst at an activist hedge fund and was a lawyer specializing in mergers and acquisitions.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
DIAGEO PLC (ADR) (DEO) is a large-cap growth stock in the Beverages (Alcoholic) industry. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle.
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
|
Of the 22 guru strategies we follow, DEO rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO).
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
|
7bb138e4-ae4e-43bb-a123-56a56f9915b1
|
727509.0
|
2023-11-16 00:00:00 UTC
|
July 2024 Options Now Available For Diageo (DEO)
|
DEO
|
https://www.nasdaq.com/articles/july-2024-options-now-available-for-diageo-deo
|
nan
|
nan
|
Investors in Diageo plc (Symbol: DEO) saw new options become available today, for the July 2024 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 246 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DEO options chain for the new July 2024 contracts and identified one put and one call contract of particular interest.
The put contract at the $140.00 strike price has a current bid of $6.40. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $140.00, but will also collect the premium, putting the cost basis of the shares at $133.60 (before broker commissions). To an investor already interested in purchasing shares of DEO, that could represent an attractive alternative to paying $141.02/share today.
Because the $140.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 4.57% return on the cash commitment, or 6.78% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Diageo plc, and highlighting in green where the $140.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $145.00 strike price has a current bid of $8.90. If an investor was to purchase shares of DEO stock at the current price level of $141.02/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $145.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.13% if the stock gets called away at the July 2024 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DEO shares really soar, which is why looking at the trailing twelve month trading history for Diageo plc, as well as studying the business fundamentals becomes important. Below is a chart showing DEO's trailing twelve month trading history, with the $145.00 strike highlighted in red:
Considering the fact that the $145.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 6.31% boost of extra return to the investor, or 9.37% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $141.02) to be 23%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
REGN Historical Stock Prices
SPXU shares outstanding history
Institutional Holders of HYBL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Of course, a lot of upside could potentially be left on the table if DEO shares really soar, which is why looking at the trailing twelve month trading history for Diageo plc, as well as studying the business fundamentals becomes important. Below is a chart showing DEO's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Diageo plc (Symbol: DEO) saw new options become available today, for the July 2024 expiration.
|
Below is a chart showing DEO's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Diageo plc (Symbol: DEO) saw new options become available today, for the July 2024 expiration.
|
Below is a chart showing DEO's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Diageo plc (Symbol: DEO) saw new options become available today, for the July 2024 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DEO options chain for the new July 2024 contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the DEO options chain for the new July 2024 contracts and identified one put and one call contract of particular interest. Below is a chart showing DEO's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Diageo plc (Symbol: DEO) saw new options become available today, for the July 2024 expiration.
|
a4e52ce0-f455-475e-91bc-c5a661a468bb
|
727510.0
|
2023-11-13 00:00:00 UTC
|
Analysts Predict 19% Upside For PID
|
DEO
|
https://www.nasdaq.com/articles/analysts-predict-19-upside-for-pid
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco International Dividend Achievers ETF (Symbol: PID), we found that the implied analyst target price for the ETF based upon its underlying holdings is $19.72 per unit.
With PID trading at a recent price near $16.59 per unit, that means that analysts see 18.84% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PID's underlying holdings with notable upside to their analyst target prices are Brookfield Corp (Symbol: BN), Atlantica Sustainable Infrastructure plc (Symbol: AY), and Diageo plc (Symbol: DEO). Although BN has traded at a recent price of $32.06/share, the average analyst target is 50.50% higher at $48.25/share. Similarly, AY has 39.51% upside from the recent share price of $17.76 if the average analyst target price of $24.78/share is reached, and analysts on average are expecting DEO to reach a target price of $178.08/share, which is 26.11% above the recent price of $141.21. Below is a twelve month price history chart comparing the stock performance of BN, AY, and DEO:
Combined, BN, AY, and DEO represent 5.62% of the Invesco International Dividend Achievers ETF. Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco International Dividend Achievers ETF PID $16.59 $19.72 18.84%
Brookfield Corp BN $32.06 $48.25 50.50%
Atlantica Sustainable Infrastructure plc AY $17.76 $24.78 39.51%
Diageo plc DEO $141.21 $178.08 26.11%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
Healthcare Dividend Stock List
Institutional Holders of RDBX
NCS shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Invesco International Dividend Achievers ETF PID $16.59 $19.72 18.84% Brookfield Corp BN $32.06 $48.25 50.50% Atlantica Sustainable Infrastructure plc AY $17.76 $24.78 39.51% Diageo plc DEO $141.21 $178.08 26.11% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of PID's underlying holdings with notable upside to their analyst target prices are Brookfield Corp (Symbol: BN), Atlantica Sustainable Infrastructure plc (Symbol: AY), and Diageo plc (Symbol: DEO). Similarly, AY has 39.51% upside from the recent share price of $17.76 if the average analyst target price of $24.78/share is reached, and analysts on average are expecting DEO to reach a target price of $178.08/share, which is 26.11% above the recent price of $141.21.
|
Three of PID's underlying holdings with notable upside to their analyst target prices are Brookfield Corp (Symbol: BN), Atlantica Sustainable Infrastructure plc (Symbol: AY), and Diageo plc (Symbol: DEO). Below is a twelve month price history chart comparing the stock performance of BN, AY, and DEO: Combined, BN, AY, and DEO represent 5.62% of the Invesco International Dividend Achievers ETF. Invesco International Dividend Achievers ETF PID $16.59 $19.72 18.84% Brookfield Corp BN $32.06 $48.25 50.50% Atlantica Sustainable Infrastructure plc AY $17.76 $24.78 39.51% Diageo plc DEO $141.21 $178.08 26.11% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
|
Similarly, AY has 39.51% upside from the recent share price of $17.76 if the average analyst target price of $24.78/share is reached, and analysts on average are expecting DEO to reach a target price of $178.08/share, which is 26.11% above the recent price of $141.21. Three of PID's underlying holdings with notable upside to their analyst target prices are Brookfield Corp (Symbol: BN), Atlantica Sustainable Infrastructure plc (Symbol: AY), and Diageo plc (Symbol: DEO). Below is a twelve month price history chart comparing the stock performance of BN, AY, and DEO: Combined, BN, AY, and DEO represent 5.62% of the Invesco International Dividend Achievers ETF.
|
Below is a twelve month price history chart comparing the stock performance of BN, AY, and DEO: Combined, BN, AY, and DEO represent 5.62% of the Invesco International Dividend Achievers ETF. Three of PID's underlying holdings with notable upside to their analyst target prices are Brookfield Corp (Symbol: BN), Atlantica Sustainable Infrastructure plc (Symbol: AY), and Diageo plc (Symbol: DEO). Similarly, AY has 39.51% upside from the recent share price of $17.76 if the average analyst target price of $24.78/share is reached, and analysts on average are expecting DEO to reach a target price of $178.08/share, which is 26.11% above the recent price of $141.21.
|
1f29af51-62fd-4d32-92e3-f89876582441
|
727511.0
|
2023-11-11 00:00:00 UTC
|
3 Thanksgiving Stocks You’ll Be Grateful You Bought
|
DEO
|
https://www.nasdaq.com/articles/3-thanksgiving-stocks-youll-be-grateful-you-bought
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s time to start thinking about Thanksgiving stocks. Thanksgiving is both one of the country’s most celebrated holidays and also an important economic moment.
The term “Black Friday” came about originally because it refers to the day of the year that retailers often go from losing money to becoming profitable and being “in the black” for the year as a whole. Investors watch Thanksgiving weekend sales closely. It serves as an important barometer of metrics measurement, especially for shopping and travel for the entire winter holiday season.
So which Thanksgiving stocks hold the most appeal for 2023? These three should have investors salivating at today’s prices.
Hormel Foods (HRL)
Source: viewimage / Shutterstock
Hormel Foods (NYSE:HRL) is an American packaged foods company. It focuses on the protein market, aiming to provide customers with the proteins they want. Those range from traditional meats to organic and naturally raised ones, deli meats, nuts and nut butters, chili, and even plant-based proteins.
For Thanksgiving specifically, Hormel is America’s #2 producer of turkey, thanks to its acquisition of the Jennie-O turkey brand.
HRL stock has fallen more than 30% over the past year. That comes amid both issues relating from inflation and concerns that weight loss drugs will reduce demand for protein. For investors betting on good cheer in the food and beverage sector this holiday season, however, Hormel stock seems ripe for a comeback.
Diageo (DEO)
Source: 8th.creator/Shutterstock.com
Sticking with holiday spirit, the next Thanksgiving stock is a leading liquor company,U.K.-based Diageo (NYSE:DEO). Once people finish eating, the attention turns to football, shopping, games, and other family activities — often including festive adult beverages.
Diageo has a history dating back to 1759 with the founding of the Guinness brewery. In addition to Guinness, Diageo now sells Johnnie Walker, Tanqueray, Baileys, Don Julio, Ciroc, and countless other brands. Also, investors can be thankful for the firm’s generosity. Specifically, it has increased its dividend annually since 1998, making it one of the British Dividend Aristocrats.
DEO stock tumbled Friday following a downbeat revenue outlook. The company warned of weakness in the Latin American and Caribbean markets. The near-term earnings hit is a negative, to be sure. But with expected earnings of more than $8 per share going forward, shares are now going for just 17x forward earnings with the stock around $140. That’s a bargain for this high-quality, recession-proof company.
Dollar General (DG)
Source: Jonathan Weiss / Shutterstock.com
Shopping is another time-honored Thanksgiving tradition. Given the weakening state of the economy heading into 2024, however, some people may be looking to stretch their dollar this holiday season.
That brings us to Dollar General (NYSE:DG). In fact, shares of the discount retailer have lost half of their value over the past year. The company has run into some issues with its stores’ operations and finding and retaining qualified employees. Additionally, the company warned that its core demographic has pulled back on spending thanks to a dip in the economy.
Regardless, discount stores should be positioned to succeed during an upcoming recession. And a downturn in the economy may make it easier for DG to find capable staff for its stores. Dollar General has typically traded with a fairly lofty P/E ratio. But it’s on sale for less than 17x forward earnings, thanks to the stock price’s recent decline.
On the date of publication, Ian Bezek held a long position in DEO, HRL, and DG stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.
More From InvestorPlace
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post 3 Thanksgiving Stocks You’ll Be Grateful You Bought appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo (DEO) Source: 8th.creator/Shutterstock.com Sticking with holiday spirit, the next Thanksgiving stock is a leading liquor company,U.K.-based Diageo (NYSE:DEO). DEO stock tumbled Friday following a downbeat revenue outlook. On the date of publication, Ian Bezek held a long position in DEO, HRL, and DG stock.
|
On the date of publication, Ian Bezek held a long position in DEO, HRL, and DG stock. Diageo (DEO) Source: 8th.creator/Shutterstock.com Sticking with holiday spirit, the next Thanksgiving stock is a leading liquor company,U.K.-based Diageo (NYSE:DEO). DEO stock tumbled Friday following a downbeat revenue outlook.
|
Diageo (DEO) Source: 8th.creator/Shutterstock.com Sticking with holiday spirit, the next Thanksgiving stock is a leading liquor company,U.K.-based Diageo (NYSE:DEO). DEO stock tumbled Friday following a downbeat revenue outlook. On the date of publication, Ian Bezek held a long position in DEO, HRL, and DG stock.
|
Diageo (DEO) Source: 8th.creator/Shutterstock.com Sticking with holiday spirit, the next Thanksgiving stock is a leading liquor company,U.K.-based Diageo (NYSE:DEO). On the date of publication, Ian Bezek held a long position in DEO, HRL, and DG stock. DEO stock tumbled Friday following a downbeat revenue outlook.
|
7225adfe-5360-4227-9978-6c1d1c7eb17a
|
727512.0
|
2023-11-10 00:00:00 UTC
|
Why Diageo Stock Dropped on Friday
|
DEO
|
https://www.nasdaq.com/articles/why-diageo-stock-dropped-on-friday
|
nan
|
nan
|
Shares of Diageo (NYSE: DEO) fell 11.7% on Friday after the alcoholic beverage company warned of a sharp slowdown in growth for its business in Latin America.
More specifically, in a press release early Friday morning, the company said that it now expects to see slower growth in the first half of fiscal-year 2024 than in the second half of fiscal 2023. The culprit, it says, is primarily a "materially weaker performance outlook in the Latin America and Caribbean (LAC)," a region representing almost 11% of net sales volume last fiscal year.
In particular, organic net sales are now expected to decline by more than 20% year over year in the LAC region (the company's fiscal year ends on June 30).
On Diageo's macro headwinds in Latin America
The update is in contrast to a statement management issued in late September, when it said that its outlook for fiscal-year 2024 had not changed since Aug. 1. At that time, Diageo had predicted "a gradual improvement in organic net sales from the second half of fiscal 23" for its consolidated businesses leading into the new fiscal year.
The reasons for its weakness in Latin America, it says, are macroeconomic pressures that are hurting consumption and "consumer downtrading" -- when buyers switch from larger, more-expensive products to smaller, lower-priced alternatives or different brands.
The company also offered updates on its remaining geographic segments, including continued expectations for a gradual improvement in both North America and Africa, as well as "continued momentum, albeit slower than in the second half of fiscal 23" in the Europe and Asia-Pacific regions.
What's next for Diageo investors?
The timing of the release is no coincidence because the company is set to host an event for investors on Nov. 15. Management pledged to share more details on the company's medium-term guidance at that event, and you can be sure investors will be asking for it to elaborate on the LAC region expectations.
That's not to say Diageo is a broken business. It still has an enviable portfolio of over 200 globally recognized brands, including Guinness beers, Baileys liqueurs, Crown Royal whisky, Smirnoff vodka, and Captain Morgan rum. But as a consumer goods stock that's obviously sensitive to macroeconomic headwinds, it's hardly surprising to see shares pulling back today.
10 stocks we like better than Diageo Plc
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Diageo Plc wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 6, 2023
Steve Symington has no position in any of the stocks mentioned. The Motley Fool recommends Diageo Plc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of Diageo (NYSE: DEO) fell 11.7% on Friday after the alcoholic beverage company warned of a sharp slowdown in growth for its business in Latin America. The culprit, it says, is primarily a "materially weaker performance outlook in the Latin America and Caribbean (LAC)," a region representing almost 11% of net sales volume last fiscal year. The reasons for its weakness in Latin America, it says, are macroeconomic pressures that are hurting consumption and "consumer downtrading" -- when buyers switch from larger, more-expensive products to smaller, lower-priced alternatives or different brands.
|
Shares of Diageo (NYSE: DEO) fell 11.7% on Friday after the alcoholic beverage company warned of a sharp slowdown in growth for its business in Latin America. The culprit, it says, is primarily a "materially weaker performance outlook in the Latin America and Caribbean (LAC)," a region representing almost 11% of net sales volume last fiscal year. In particular, organic net sales are now expected to decline by more than 20% year over year in the LAC region (the company's fiscal year ends on June 30).
|
Shares of Diageo (NYSE: DEO) fell 11.7% on Friday after the alcoholic beverage company warned of a sharp slowdown in growth for its business in Latin America. At that time, Diageo had predicted "a gradual improvement in organic net sales from the second half of fiscal 23" for its consolidated businesses leading into the new fiscal year. 10 stocks we like better than Diageo Plc When our analyst team has a stock tip, it can pay to listen.
|
Shares of Diageo (NYSE: DEO) fell 11.7% on Friday after the alcoholic beverage company warned of a sharp slowdown in growth for its business in Latin America. More specifically, in a press release early Friday morning, the company said that it now expects to see slower growth in the first half of fiscal-year 2024 than in the second half of fiscal 2023. At that time, Diageo had predicted "a gradual improvement in organic net sales from the second half of fiscal 23" for its consolidated businesses leading into the new fiscal year.
|
5ba39ebc-de3c-496f-bfe7-8d0ca4b20f67
|
727513.0
|
2023-11-10 00:00:00 UTC
|
Diageo PLC Now Sees H1 Organic Net Sales To Decline; Gradual Improvement Expected In H2
|
DEO
|
https://www.nasdaq.com/articles/diageo-plc-now-sees-h1-organic-net-sales-to-decline-gradual-improvement-expected-in-h2
|
nan
|
nan
|
(RTTNews) - Alcoholic beverage company Diageo plc. (DGE.L, DEO) Friday said it now expects organic net sales to decline more than 20 percent and organic operating profit growth to decline from last year, mainly due to a weaker performance outlook in Latin America and Caribbean or LAC. The company also updated its medium term guidance.
Looking ahead to the second half of fiscal 24, at the Group level, the company expects a gradual improvement in organic net sales and organic operating profit growth from the first half of fiscal 24.
In its first-half trading update ahead of 2023 Capital Markets Event, the company said it now expects a slower growth in first-half organic net sales than the second half of fiscal 23.
The company previously expected to see a gradual improvement in organic net sales growth in the first half from the second half of fiscal 23.
Diageo said it has momentum continuing in four of its five regions, however, the revision in outlook reflects a materially weaker performance outlook in LAC, which is nearly 11 percent of Diageo's net sales value last year.
In other regions, in North America, the company sees a gradual improvement in organic net sales growth in the first half, compared to the second half of fiscal 23.
In Europe and Asia Pacific, there would be continued momentum, albeit slower than in the second half of fiscal 23.
LAC is lapping very strong 20 percent organic net sales growth, versus the first half of fiscal 23, the company said.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(DGE.L, DEO) Friday said it now expects organic net sales to decline more than 20 percent and organic operating profit growth to decline from last year, mainly due to a weaker performance outlook in Latin America and Caribbean or LAC. In Europe and Asia Pacific, there would be continued momentum, albeit slower than in the second half of fiscal 23. LAC is lapping very strong 20 percent organic net sales growth, versus the first half of fiscal 23, the company said.
|
(DGE.L, DEO) Friday said it now expects organic net sales to decline more than 20 percent and organic operating profit growth to decline from last year, mainly due to a weaker performance outlook in Latin America and Caribbean or LAC. Looking ahead to the second half of fiscal 24, at the Group level, the company expects a gradual improvement in organic net sales and organic operating profit growth from the first half of fiscal 24. Diageo said it has momentum continuing in four of its five regions, however, the revision in outlook reflects a materially weaker performance outlook in LAC, which is nearly 11 percent of Diageo's net sales value last year.
|
(DGE.L, DEO) Friday said it now expects organic net sales to decline more than 20 percent and organic operating profit growth to decline from last year, mainly due to a weaker performance outlook in Latin America and Caribbean or LAC. Looking ahead to the second half of fiscal 24, at the Group level, the company expects a gradual improvement in organic net sales and organic operating profit growth from the first half of fiscal 24. The company previously expected to see a gradual improvement in organic net sales growth in the first half from the second half of fiscal 23.
|
(DGE.L, DEO) Friday said it now expects organic net sales to decline more than 20 percent and organic operating profit growth to decline from last year, mainly due to a weaker performance outlook in Latin America and Caribbean or LAC. Looking ahead to the second half of fiscal 24, at the Group level, the company expects a gradual improvement in organic net sales and organic operating profit growth from the first half of fiscal 24. The company previously expected to see a gradual improvement in organic net sales growth in the first half from the second half of fiscal 23.
|
b8dfd6d5-63c5-4e53-aee1-641b3bd2c0de
|
727514.0
|
2023-10-31 00:00:00 UTC
|
Top 3 Stocks to Buy in a Recession: November Edition
|
DEO
|
https://www.nasdaq.com/articles/top-3-stocks-to-buy-in-a-recession%3A-november-edition
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The stock market has entered a correction. The S&P 500 has slipped 10% from its prior highs, falling back to levels last seen in May. And other parts of the market, such as small-cap stocks, look even worse.
There are many reasons for the selling, including inflation, interest rates and mounting geopolitical tensions. However, a recession is growing into a huge concern as well. With consumers facing increasing pressure, a drop-off in economic activity seems likely in 2024.
The good news is certain types of stocks can hold up and even make gains during hard economic times. These three top stocks to buy for a recession are good choices for these volatile times.
Diageo (DEO)
Source: Shutterstock
Diageo (NYSE:DEO) is a multinational spirits company. While based in the United Kingdom, the majority of its sales occur in North America and other international markets. It is known for Johnnie Walker, Ciroc, Tanqueray, Smirnoff, Don Julio and Guinness beer — among other brands.
Diageo is the quintessential recession-proof stock. Alcohol sales tend to be stable regardless of economic conditions; people drink to both celebrate success and commiserate during the hard times, after all.
DEO stock has slumped over the past year. After a boom year in 2022 as the economy reopened and people rushed to social events, sales activity returned to more normalized levels. In addition, analysts have speculated that weight loss drugs may eventually cause alcohol sales to decline.
These fears have driven DEO stock down to less than 18 times forward earnings, putting Diageo near its lowest valuation of the past decade. That makes it a great defensive stock to pick up ahead of a potential economic downturn.
Public Storage (PSA)
Source: Ken Wolter / Shutterstock.com
Public Storage (NYSE:PSA) is America’s largest self-storage real estate investment trust (REIT).
Shares have risen from a (split-adjusted) $10 each in 1993 to more than $238 per share today. That speaks to the resilience of Public Storage’s business model and its ability to thrive despite multiple financial crises along the way.
In fact, storage performed surprisingly well compared to most other REITs during the 2008 economic chaos. When people are foreclosed upon or otherwise change their living situations, it often leads to additional incremental storage demand. In this way, storage can be countercyclical and hold up in economic downturns.
PSA stock has slumped thanks to the general malaise afflicting so many REITs: higher interest rates. Public Storage will indeed have to pay more interest on its debts going forward. However, the company has much less risk than most other commercial REITs. Thus, investors should be looking to buy the dip in Public Storage shares today.
Kimberly-Clark (KMB)
Source: Trong Nguyen / Shutterstock.com
Kimberly-Clark (NYSE:KMB) is one of the world’s leading producers of toilet paper and other bathroom products such as soap.
The firm is inherently recession-resistant as most people do not change their consumption of toiletries based on economic conditions. And the company’s products tend to be cheap enough that most folks don’t give their choice of toilet paper or soap brands too much thought — sales should be steady regardless of what the economy does.
That said, there is an opportunity in KMB stock right now. The company’s sales surged in the early days of the pandemic as people stocked up on essential goods. Kimberly-Clark has been in a slump since then as sales drifted back down to normal. Meanwhile, profit margins fell due to higher commodity and labor costs.
Counterintuitively, a recession might help Kimberley-Clark’s cause. An economic downturn could lower the cost of inputs such as wood pulp and make the labor market more favorable for employers as well. All this is to say that Kimberly-Clark could actually see profits rise if the economy dips. In any case, KMB stock is at a fine entry point here near its 52-week lows.
On the date of publication, Ian Bezek held a long position in DEO stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.
More From InvestorPlace
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post Top 3 Stocks to Buy in a Recession: November Edition appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo (DEO) Source: Shutterstock Diageo (NYSE:DEO) is a multinational spirits company. DEO stock has slumped over the past year. These fears have driven DEO stock down to less than 18 times forward earnings, putting Diageo near its lowest valuation of the past decade.
|
Diageo (DEO) Source: Shutterstock Diageo (NYSE:DEO) is a multinational spirits company. DEO stock has slumped over the past year. These fears have driven DEO stock down to less than 18 times forward earnings, putting Diageo near its lowest valuation of the past decade.
|
Diageo (DEO) Source: Shutterstock Diageo (NYSE:DEO) is a multinational spirits company. DEO stock has slumped over the past year. These fears have driven DEO stock down to less than 18 times forward earnings, putting Diageo near its lowest valuation of the past decade.
|
Diageo (DEO) Source: Shutterstock Diageo (NYSE:DEO) is a multinational spirits company. DEO stock has slumped over the past year. These fears have driven DEO stock down to less than 18 times forward earnings, putting Diageo near its lowest valuation of the past decade.
|
59131826-66a4-4a78-b9d4-3e1169f4e167
|
727515.0
|
2023-10-31 00:00:00 UTC
|
DEO Quantitative Stock Analysis
|
DEO
|
https://www.nasdaq.com/articles/deo-quantitative-stock-analysis-2
|
nan
|
nan
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. This deep value model looks for inexpensive stocks that could be potential takeover targets.
DIAGEO PLC (ADR) (DEO) is a large-cap growth stock in the Beverages (Alcoholic) industry. The rating using this strategy is 78% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
QUALITY: PASS
ACQUIRER'S MULTIPLE FAIL
Detailed Analysis of DIAGEO PLC (ADR)
DEO Guru Analysis
DEO Fundamental Analysis
More Information on Tobias Carlisle
Tobias Carlisle Portfolio
About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. He is the author of "The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market" and the founder of Acquirer's Funds. He is also the author of "Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations" and co-author of Quantitative Value: "A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors" Tobias is originally from Australia, where he worked an an analyst at an activist hedge fund and was a lawyer specializing in mergers and acquisitions.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
DIAGEO PLC (ADR) (DEO) is a large-cap growth stock in the Beverages (Alcoholic) industry. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle.
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
|
Of the 22 guru strategies we follow, DEO rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO).
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
|
d849667e-3bb0-4574-9037-6cdbc1a0c5d5
|
727516.0
|
2023-10-26 00:00:00 UTC
|
Diageo plc - ADR Shares Close in on 52-Week Low - Market Mover
|
DEO
|
https://www.nasdaq.com/articles/diageo-plc-adr-shares-close-in-on-52-week-low-market-mover-0
|
nan
|
nan
|
Diageo plc - ADR (DEO) shares closed today at 0.9% above its 52 week low of $146.60, giving the company a market cap of $85B. The stock is currently down 12.2% year-to-date, down 6.8% over the past 12 months, and up 23.9% over the past five years. This week, the Dow Jones Industrial Average fell 1.8%, and the S&P 500 fell 3.3%.
Trading Activity
Trading volume this week was 12.9% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.0.
Technical Indicators
The Relative Strength Index (RSI) on the stock was between 30 and 70.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis
Per Group Comparative Performance
The company's stock price performance year-to-date lags the peer average by 195.1%
The company's stock price performance over the past 12 months lags the peer average by -332.1%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -62.3% lower than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo plc - ADR (DEO) shares closed today at 0.9% above its 52 week low of $146.60, giving the company a market cap of $85B. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 195.1% The company's stock price performance over the past 12 months lags the peer average by -332.1% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -62.3% lower than the average peer.
|
Diageo plc - ADR (DEO) shares closed today at 0.9% above its 52 week low of $146.60, giving the company a market cap of $85B. This week, the Dow Jones Industrial Average fell 1.8%, and the S&P 500 fell 3.3%. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 195.1% The company's stock price performance over the past 12 months lags the peer average by -332.1% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -62.3% lower than the average peer.
|
Diageo plc - ADR (DEO) shares closed today at 0.9% above its 52 week low of $146.60, giving the company a market cap of $85B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 195.1% The company's stock price performance over the past 12 months lags the peer average by -332.1% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -62.3% lower than the average peer. This story was produced by the Kwhen Automated News Generator.
|
Diageo plc - ADR (DEO) shares closed today at 0.9% above its 52 week low of $146.60, giving the company a market cap of $85B. This week, the Dow Jones Industrial Average fell 1.8%, and the S&P 500 fell 3.3%. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70.
|
2612d173-46c1-4e1f-a21d-7ee35da35af0
|
727517.0
|
2023-10-25 00:00:00 UTC
|
Warren Buffett's Buying This Passive-Income Stock. Should You?
|
DEO
|
https://www.nasdaq.com/articles/warren-buffetts-buying-this-passive-income-stock.-should-you-0
|
nan
|
nan
|
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) discloses the stocks it holds each quarter. That means we can follow Berkshire's recent buys and sells, and one new purchase in 2023 is Diageo (LSE: DGE) (NYSE: DEO), a U.K.-based alcohol beverage company with brands that include Guinness, Captain Morgan, and Smirnoff, among others.
According to its most recent filing, Berkshire owns 227,750 shares of Diageo, equating to a roughly 0.04% ownership stake. That's tiny in the context of Berkshire buys, and Diageo stock has fallen an estimated 11% since Berkshire initiated the position in the first quarter of 2023, so let's look at why Berkshire might have purchased Diageo and whether the stock is worth adding to your portfolio.
Diageo is taking market share
Over the past five years, publicly traded alcohol companies have struggled as a whole. During that time, Diageo stock generated a total return (stock appreciation plus dividends) of only 21%, trailing the benchmark S&P 500's total return of 66%. Still, Diageo's smaller competitors by market capitalization, Brown-Forman (NYSE: BF.A) (NYSE: BF.B) and Constellation Brands (NYSE: STZ), have also lagged the market, with a five-year total return of 25% and 11%, respectively.
Nonetheless, two years ago, Diago management announced its goal to grow its total beverage alcohol (TBA) market share of retail sales from 4% to 6% by 2030. Since then, Diageo claims to have 4.7% of the global TBA market. To put that in context, IWSR, the leading source of data and analysis on the global beverage alcohol market, estimated 2022's total retail sales of global alcohol $1.17 trillion. While Diageo splits those gross sales with retailers, its annual net sales growth is starting to show in its income statement. Diageo's net sales grew from roughly $18.6 billion to $20.7 billion, or 11%, from the company's fiscal year 2022 to its fiscal 2023. Comparatively, Brown-Forman and Constellation Brands grew their annual net sales over its past fiscal year by 8% and 7%, respectively.
Diageo is focused on returning capital to shareholders
While Buffett hasn't publicly commented on Berkshire's Diageo investment, he has frequently opined about two of his favorite qualities in a stock: growing dividends and share repurchases. Diageo management favors both of these shareholder-friendly strategies. Specifically, Diageo has paid and raised its semiannual dividend since 1998. Totaling $5.02 per share in 2023, the stock's annual dividend yield is roughly 2.6%.
For any dividend-paying stock, investors should key on its payout ratio to determine whether a company's earnings can safely cover its dividends. A payout ratio exceeding 75% suggests vulnerable or declining earnings, presenting risks, especially in the face of unexpected difficulties. Considering Diageo's fiscal 2023 net income of $4.5 billion and $2.1 billion paid in dividends, equating to a payout ratio of 47%, it's reasonable for investors to assume management will likely continue to raise its dividend annually just as it has done each of the last 25 years.
Second, the company recently announced a new $1 billion share repurchase program to be completed before the end of its fiscal 2024. This announcement comes on the heels of the company's previous buybacks, which lowered 7% of shares outstanding over the past five years. Warren Buffett explained in his most recent annual shareholder letter why he believes share repurchases are important: "The math isn't complicated: When the share count goes down, your interest in our many businesses goes up. Every small bit helps if repurchases are made at value-accretive prices."
Image source: The Motley Fool.
What could go wrong for Diageo?
Before buying any stock, an investor should examine its bear case or what could cause the business to falter. As an acquisitive company, Diageo frequently purchases smaller, fast-growing alcohol brands with attractive margins to fuel its growth. Most recently, in early 2023, Diageo bought Don Papa Rum, a Philippines-based company that makes a "super-premium, dark rum," for $275 million, plus a potential $188 million, subject to its performance.
Diageo also acquired Mr. Black, an Australian-based coffee liqueur, and Balcones Distilling, a Texas-based single malt whiskey producer, in 2022 for undisclosed prices. While growth-by-acquisition is a common strategy for an established business, it can also lead to a growing debt that becomes expensive to pay back in a high-interest rate environment. To illustrate, Diageo's net debt (total debt minus cash and cash equivalents) stands at $18.8 billion, a 42% increase over the past five years. The interest expense on Diageo's debt totaled $733 million in its fiscal 2023, nearly 200% higher than it paid five years ago. That debt will only become more expensive to service as interest rates remain high, so Diageo will probably need to pay it down, which could lead to fewer acquisitions and slower dividend growth.
Is Diageo stock a buy?
While Diageo stock has underperformed the market, it does look cheap on a valuation basis. Using the common valuation metric for mature companies, the price-to-earnings (P/E) ratio, Diageo recently traded at a P/E ratio of 19, meaning the company's stock price is 19.4 times its annual earnings per share of $7.95. Notably, the stock is well below its five-year average P/E ratio of 31 and lower than its competitors Brown-Forman and Constellation Brands, which trade at a P/E ratio of 35 and 28, respectively.
DEO PE Ratio data by YCharts
To sum up, Diageo is a top player in the alcohol sector but has delivered below-average returns in recent years. Berkshire's tiny position in the company gives some credence to the legitimacy of the stock's potential, especially with management's laser focus on returning capital to shareholders. Keep an eye on the company's debt, but if the management can pay it down, the stock should reward patient dividend-seeking investors.
10 stocks we like better than Diageo
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Diageo wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 16, 2023
Collin Brantmeyer has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway and Constellation Brands. The Motley Fool recommends Diageo. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
That means we can follow Berkshire's recent buys and sells, and one new purchase in 2023 is Diageo (LSE: DGE) (NYSE: DEO), a U.K.-based alcohol beverage company with brands that include Guinness, Captain Morgan, and Smirnoff, among others. DEO PE Ratio data by YCharts To sum up, Diageo is a top player in the alcohol sector but has delivered below-average returns in recent years. Nonetheless, two years ago, Diago management announced its goal to grow its total beverage alcohol (TBA) market share of retail sales from 4% to 6% by 2030.
|
That means we can follow Berkshire's recent buys and sells, and one new purchase in 2023 is Diageo (LSE: DGE) (NYSE: DEO), a U.K.-based alcohol beverage company with brands that include Guinness, Captain Morgan, and Smirnoff, among others. DEO PE Ratio data by YCharts To sum up, Diageo is a top player in the alcohol sector but has delivered below-average returns in recent years. Still, Diageo's smaller competitors by market capitalization, Brown-Forman (NYSE: BF.A) (NYSE: BF.B) and Constellation Brands (NYSE: STZ), have also lagged the market, with a five-year total return of 25% and 11%, respectively.
|
That means we can follow Berkshire's recent buys and sells, and one new purchase in 2023 is Diageo (LSE: DGE) (NYSE: DEO), a U.K.-based alcohol beverage company with brands that include Guinness, Captain Morgan, and Smirnoff, among others. DEO PE Ratio data by YCharts To sum up, Diageo is a top player in the alcohol sector but has delivered below-average returns in recent years. That's tiny in the context of Berkshire buys, and Diageo stock has fallen an estimated 11% since Berkshire initiated the position in the first quarter of 2023, so let's look at why Berkshire might have purchased Diageo and whether the stock is worth adding to your portfolio.
|
That means we can follow Berkshire's recent buys and sells, and one new purchase in 2023 is Diageo (LSE: DGE) (NYSE: DEO), a U.K.-based alcohol beverage company with brands that include Guinness, Captain Morgan, and Smirnoff, among others. DEO PE Ratio data by YCharts To sum up, Diageo is a top player in the alcohol sector but has delivered below-average returns in recent years. The interest expense on Diageo's debt totaled $733 million in its fiscal 2023, nearly 200% higher than it paid five years ago.
|
074e3363-28b2-4013-83c1-78b59b31c804
|
727518.0
|
2023-10-11 00:00:00 UTC
|
Modelo Sale Success Propels Constellation Brands In The Market
|
DEO
|
https://www.nasdaq.com/articles/modelo-sale-success-propels-constellation-brands-in-the-market
|
nan
|
nan
|
Constellation Brands Inc. (NYSE: STZ), distributor of best-selling beer Modelo, fell flat after the company’s second-quarter earnings report on October 5.
Despite raising its fiscal 2024 earnings outlook, and reporting double-digit increases in beer division sales, investors smacked the stock for weakness in the wine and spirits unit.
Earnings grew by 17% to $3.70 a share.
A glance at the Constellation Brands chart shows a 9.30% share price decline in the past month. The stock appears to have found a floor above its October 6 low of $233, which indicates that institutional investors believe the stock has reached a price level where it is undervalued or attractive, prompting investors to hold or buy.
Both earnings and revenue growth increased sequentially in the past quarter, as its Modelo brand, in particular, has been taking market share from Anheuser-Busch InBev SA/NV (NYSE: BUD).
While Anheuser-Busch’s problems have been well-documented, its sales of flagship brand Bud Light stabilized in recent months, making Modelo’s gains even more impressive. Modelo Especial surpassed Bud Light as the bestselling beer in the U.S. earlier in 2023.
Constellation Outperforming Industry Rivals
While Constellation Brands has eked out a year-to-date gain of 2.55%, Anheuser-Busch stock is down 11.12% so far this year.
Another big competitor is Diageo plc (NYSE: DEO), whose stock is down 12.65 % year-to-date. Diageo’s brands include Johnnie Walker, Tanqueray, Smirnoff, Guinness and Bailey’s.
Highlights of Constellation’s most recent report included:
The company’s beer business was the top share gainer in market dollars for a ninth consecutive quarter, and now owns six of the top 15 share-gaining beer brands.
Modelo Especial remains the top brand-share gainer and the top-selling brand in the U.S.
Modelo Chelada brands continue to be the #1 chelada in the U.S. beer market, holding nearly 70% market share of the entire chelada segment. In case you’re wondering, chelada is a beer-based, Mexican-inspired cocktail.
Corona Extra is the No. 3 high-end beer brand.
Pacifico remains the No. 7 share gainer in the high-end beer market.
That’s a pretty impressive set of drivers, which accounts for MarketBeat’s Constellation Brands analyst ratings showing a consensus rating of “moderate-buy” with a price target of $277.64, an upside of 16.70%.
If the stock were to reach that price level, it would mean rising above its August 8 high of $273.65, and clearing its current consolidation.
Boosted Earnings Outlook
In the most recent earnings report, Constellation Brands raised its earnings outlook for fiscal 2024 to a range between $12 and $12.20 a share. That’s higher than earlier estimates of $11.70 to $12 per share.
That’s also higher than Wall Street’s forecasts of $11.72 per share. That forecast was recently increased to $11.89 a share, an increase of 12%. For fiscal 2025, analysts see the company earning $13.48 a share, an increase of 13%.
The weakness in the wine and spirits division was worrisome to investors because the company is the world’s largest wine producer. Sales from that business unit fell 14% in the second quarter to $444.1 million, down from $515.8 million in the year-earlier quarter.
Its wine brands include Kim Crawford, Meiomi, Robert Mondavi and Ruffino. On the spirits side, brands include Casa Noble tequila and Svedka vodka.
Lower Demand For Mass-Market Brands
In theearnings conference call Constellation Brands’ CEO Bill Newlands said the wine and spirits unit’s mass-market brands are contending with lower demand as consumers turn toward premium brands. That’s a trend that began before the second quarter, and is continuing.
While that’s happening, the company is focusing on the not-so-glamorous side of the alcohol business, such as lowering operational costs.
In the recentearnings conference call chief financial officer Garth Hankinson cited examples such as double-stacking railcars and the use of plastic pallets, optimizing the location of inventory. The company is also better managing its acquisition of raw materials through improved contracts.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Another big competitor is Diageo plc (NYSE: DEO), whose stock is down 12.65 % year-to-date. Despite raising its fiscal 2024 earnings outlook, and reporting double-digit increases in beer division sales, investors smacked the stock for weakness in the wine and spirits unit. Both earnings and revenue growth increased sequentially in the past quarter, as its Modelo brand, in particular, has been taking market share from Anheuser-Busch InBev SA/NV (NYSE: BUD).
|
Another big competitor is Diageo plc (NYSE: DEO), whose stock is down 12.65 % year-to-date. Despite raising its fiscal 2024 earnings outlook, and reporting double-digit increases in beer division sales, investors smacked the stock for weakness in the wine and spirits unit. Modelo Especial remains the top brand-share gainer and the top-selling brand in the U.S. Modelo Chelada brands continue to be the #1 chelada in the U.S. beer market, holding nearly 70% market share of the entire chelada segment.
|
Another big competitor is Diageo plc (NYSE: DEO), whose stock is down 12.65 % year-to-date. Highlights of Constellation’s most recent report included: The company’s beer business was the top share gainer in market dollars for a ninth consecutive quarter, and now owns six of the top 15 share-gaining beer brands. Modelo Especial remains the top brand-share gainer and the top-selling brand in the U.S. Modelo Chelada brands continue to be the #1 chelada in the U.S. beer market, holding nearly 70% market share of the entire chelada segment.
|
Another big competitor is Diageo plc (NYSE: DEO), whose stock is down 12.65 % year-to-date. Despite raising its fiscal 2024 earnings outlook, and reporting double-digit increases in beer division sales, investors smacked the stock for weakness in the wine and spirits unit. Both earnings and revenue growth increased sequentially in the past quarter, as its Modelo brand, in particular, has been taking market share from Anheuser-Busch InBev SA/NV (NYSE: BUD).
|
8c043beb-6577-4c45-a349-edcbb28b408f
|
727519.0
|
2023-10-06 00:00:00 UTC
|
Diageo (NYSE:DEO): A Recession-Proof Stock Built for Dividend Growth
|
DEO
|
https://www.nasdaq.com/articles/diageo-nyse%3Adeo%3A-a-recession-proof-stock-built-for-dividend-growth
|
nan
|
nan
|
London-based Diageo (NYSE:DEO) is a resilient force in the alcoholic drinks industry, recognized for its recession-proof traits. With renowned brands like Johnnie Walker, Smirnoff, and Guinness, Diageo has consistently proven its ability to generate strong financials, even in the toughest economic climates. Its impressive 25-year dividend growth track record is a testament to that. Given the recent dip in its shares, dividend growth investors may find Diageo to be an enticing opportunity. Thus, I'm bullish on DEO stock.
Why is Diageo Stock Recession Proof?
Diageo has developed a reputation for its resilience even in economic downturns, owing to the distinctive dynamics of the alcoholic beverages industry. In times of financial constraint, consumer spending typically contracts. Yet, historical data indicates that demand for alcoholic beverages remains relatively stable even in recessions, as people may turn to these products for comfort or as a form of affordable indulgence.
Moreover, the industry's adaptability to evolving consumer preferences and market conditions also contributes significantly to the company's recession-resistant nature. Diageo's diverse portfolio includes both premium and budget-friendly options, positioning it adeptly to cater to a wide scope of consumers. This diversity ensures that, even in the face of temporary budgetary constraints, there is always a Diageo brand within reach for consumers.
Evidently, Diageo's financial prowess shone, even in the face of the daunting Great Financial Crisis of 2007-08. Specifically, revenues surged from £7.26 billion in 2006 to an impressive £9.94 billion in 2010. Remarkably, this growth trajectory persisted every year during this challenging period.
Further, during the COVID-19 pandemic, which posed significant obstacles to bars and restaurants, including prolonged closures, Diageo demonstrated exceptional resilience. Despite the numerous challenges faced by bars and restaurants at the time, including prolonged closures, Diageo's performance remained robust. In 2020, during such an unprecedented industry upheaval, the company experienced only a modest 8.7% decline in revenues, which landed at £11.8 billion.
Fast forward to the close of Diageo's fiscal year in June 2023, and the company's revenues had already skyrocketed to an astounding £17.1 billion. This underscores Diageo's remarkable ability to weather and thrive during periods of elevated inflation as well -- a testament to the highly inelastic nature of its business model.
Consistent Earnings Growth Supports a Growing Dividend
Diageo's consistent earnings growth over the years has allowed the company to grow its dividend for 25 years straight. For context, over the past decade, the company's earnings per share (EPS) and dividends per share have both grown at a compound rate of 5.4%. While this may not sound like the most impressive growth metric in the world, it's the consistency that matters.
Diageo's robust performance was sustained during its Fiscal 2023, which ended this past June. Diageo achieved a substantial 11% growth in net sales, reaching £17.1 billion, with organic growth accounting for an impressive 6%. Notably, earnings per share surged by a remarkable 18% to about £1.65. Even when excluding certain one-off items that boosted this result, EPS still grew by a noteworthy 8%. Further, the company grew its dividend once again, this time by 5% to £0.80.
Regarding Diageo's future, management mentioned that they are confident Diageo remains well-positioned to deliver strong results over the medium term. Specifically, they expect organic net sales growth in the range of 5% to 7% and durable organic operating profit growth of 6% to 9% in the coming years. Accordingly, it's reasonable to expect dividend hikes in the mid-single digits, moving forward.
Valuation May Seem Pricy, but Industry Standards Support It
Diageo's valuation may seem pricy at first glance. The stock is currently trading at around 18x the company's forward earnings. However, in the context of industry standards, this is not a high multiple for the stock. Generally, companies in the alcoholic beverages industry tend to trade at premium valuations due to their tremendous brand values.
For instance, Dwayne "The Rock" Johnson's Tequila Teremana hit a remarkable $3.5 billion valuation last year despite only selling 600,000 bottles in 2021. Yes, its rapid growth and The Rock's involvement contribute to its premium status. Still, it highlights just how common such high valuations are in the industry.
Further, Diageo's valuation is currently around its lowest level of the past decade. For much of this period, the stock used to trade at forward P/E north of 22x. For context, Diageo's close industry peers Constellation Brands (NYSE:STZ) and Mexico-based Becle Sabtrades (OTC:BCCLF) are currently trading at forward P/Es of 20.3x and 23.2x, respectively, further underscoring Diageo's modest discount in the industry.
IS DEO Stock a Buy, According to Analysts?
Turning to Wall Street, Diageo has a Hold consensus rating based on one Buy, one Hold, and one Sell assigned in the past three months. The average Diageo stock price target of $160.67 suggests 5.9% upside potential.
The Takeaway
Diageo stands as a resilient powerhouse in the alcoholic drinks industry, weathering economic storms with impressive financial strength. Its diversified portfolio, spanning premium and budget-friendly options, uniquely positions the company to cater to a broad consumer base, contributing to its recession-resistant nature. Its historical performance, notably during the Great Financial Crisis and the challenges posed by the COVID-19 pandemic, showcases Diageo's ability to not only endure but thrive.
With consistent earnings growth and a 25-year dividend track record, the stock, though seemingly pricy in valuation, trades at a lower valuation than some of its key competitors. In fact, given its modest discount, Diageo could present an enticing opportunity for dividend growth investors.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
London-based Diageo (NYSE:DEO) is a resilient force in the alcoholic drinks industry, recognized for its recession-proof traits. Thus, I'm bullish on DEO stock. IS DEO Stock a Buy, According to Analysts?
|
London-based Diageo (NYSE:DEO) is a resilient force in the alcoholic drinks industry, recognized for its recession-proof traits. Thus, I'm bullish on DEO stock. IS DEO Stock a Buy, According to Analysts?
|
London-based Diageo (NYSE:DEO) is a resilient force in the alcoholic drinks industry, recognized for its recession-proof traits. Thus, I'm bullish on DEO stock. IS DEO Stock a Buy, According to Analysts?
|
London-based Diageo (NYSE:DEO) is a resilient force in the alcoholic drinks industry, recognized for its recession-proof traits. Thus, I'm bullish on DEO stock. IS DEO Stock a Buy, According to Analysts?
|
4e8641da-5fe3-4f08-a9f2-cfcf26d43e59
|
727520.0
|
2023-10-03 00:00:00 UTC
|
TAP or DEO: Which Is the Better Value Stock Right Now?
|
DEO
|
https://www.nasdaq.com/articles/tap-or-deo%3A-which-is-the-better-value-stock-right-now
|
nan
|
nan
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Molson Coors Brewing (TAP) and Diageo (DEO). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Molson Coors Brewing is sporting a Zacks Rank of #2 (Buy), while Diageo has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TAP has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
TAP currently has a forward P/E ratio of 12.38, while DEO has a forward P/E of 17.94. We also note that TAP has a PEG ratio of 1.70. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DEO currently has a PEG ratio of 2.45.
Another notable valuation metric for TAP is its P/B ratio of 1.02. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DEO has a P/B of 8.09.
These metrics, and several others, help TAP earn a Value grade of A, while DEO has been given a Value grade of C.
TAP is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TAP is likely the superior value option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Molson Coors Brewing (TAP) and Diageo (DEO). TAP currently has a forward P/E ratio of 12.38, while DEO has a forward P/E of 17.94. DEO currently has a PEG ratio of 2.45.
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Molson Coors Brewing (TAP) and Diageo (DEO). Click to get this free report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. TAP currently has a forward P/E ratio of 12.38, while DEO has a forward P/E of 17.94.
|
These metrics, and several others, help TAP earn a Value grade of A, while DEO has been given a Value grade of C. TAP is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. Click to get this free report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Molson Coors Brewing (TAP) and Diageo (DEO).
|
DEO currently has a PEG ratio of 2.45. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Molson Coors Brewing (TAP) and Diageo (DEO). TAP currently has a forward P/E ratio of 12.38, while DEO has a forward P/E of 17.94.
|
6f81ca35-5bfc-46ab-a011-961878774e39
|
727521.0
|
2023-09-25 00:00:00 UTC
|
Diageo Enters Oversold Territory (DEO)
|
DEO
|
https://www.nasdaq.com/articles/diageo-enters-oversold-territory-deo-0
|
nan
|
nan
|
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Monday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 27.9, after changing hands as low as $152.65 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 32.7. A bullish investor could look at DEO's 27.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DEO shares:
Looking at the chart above, DEO's low point in its 52 week range is $152.65 per share, with $191.93 as the 52 week high point — that compares with a last trade of $153.44.
Find out what 9 other oversold stocks you need to know about »
Also see:
TLRD YTD Return
Funds Holding SPKX
WABC Price Target
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
A bullish investor could look at DEO's 27.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DEO shares: Looking at the chart above, DEO's low point in its 52 week range is $152.65 per share, with $191.93 as the 52 week high point — that compares with a last trade of $153.44. In trading on Monday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 27.9, after changing hands as low as $152.65 per share.
|
A bullish investor could look at DEO's 27.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DEO shares: Looking at the chart above, DEO's low point in its 52 week range is $152.65 per share, with $191.93 as the 52 week high point — that compares with a last trade of $153.44. In trading on Monday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 27.9, after changing hands as low as $152.65 per share.
|
In trading on Monday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 27.9, after changing hands as low as $152.65 per share. A bullish investor could look at DEO's 27.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DEO shares: Looking at the chart above, DEO's low point in its 52 week range is $152.65 per share, with $191.93 as the 52 week high point — that compares with a last trade of $153.44.
|
In trading on Monday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 27.9, after changing hands as low as $152.65 per share. A bullish investor could look at DEO's 27.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DEO shares: Looking at the chart above, DEO's low point in its 52 week range is $152.65 per share, with $191.93 as the 52 week high point — that compares with a last trade of $153.44.
|
8385eb41-4c31-48aa-b4d4-90693435ae49
|
727522.0
|
2023-09-21 00:00:00 UTC
|
One Bourbon. One Scotch. One Beer: 3 Alcohol Stocks to Buy Now
|
DEO
|
https://www.nasdaq.com/articles/one-bourbon.-one-scotch.-one-beer%3A-3-alcohol-stocks-to-buy-now
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Alcohol stocks are funny. While they tend to be very glamorous companies based on the way their products are marketed to consumers, the reality is that it’s a very tough business to make huge gobs of money for extended periods. This has led to the rise of alcohol stocks to buy.
However, one company that managed to deliver for shareholders despite an ultra-competitive industry is Davide Campari Milano (OTCMKTS:DVDCF), the Italian drinks maker whose brands include Wild Turkey, Campari, and Appleton.
I got the idea for this article because of a Bloomberg article hailing the retirement of long-time CEO Bob Kunze-Concewitz, who, in his 16-year tenure, generated a return of 520%, excluding dividends, 33x better than the Stoxx Europe 600 Index, the benchmark for the top European stocks.
I bet you over his 16 years as CEO; he didn’t get paid as much as Warner Bros. Discovery (NASDAQ:WBD) CEO David Zaslav got in 2021, when the media exec pulled in $247 million in a single year.
If you’re a long-time shareholder of Davide Campari Milano, the least you can do is tip Kunze-Concewitz on his way out. He delivered in a big way.
Here are three stocks to buy — in addition to Davide Campari Milano — whose long-term gains will have you humming George Thorogood’s One Bourbon, One Scotch, One Beer.
Brown-Forman (BF.B)
Source: Shutterstock
There is no question that Brown-Forman (NYSE:BF.B), the maker of Jack Daniels Tennessee whiskey, has a long and storied history. While Jack and Coke are as iconic as it comes, BF.B makes this list because of its Woodford Reserve and Old Forester bourbon.
And, heck, I’m not going to lie; Brown-Forman is not delivering for shareholders right now. Down more than 3% year-to-date, it’s trailing the S&P 500 by nearly 20 percentage points on a relative basis. As a result of this latest slide, it’s gained just 25% over the past five years, less than half the index’s return. All in all, it’s one of those alcohol stocks to buy.
In May 2013, I recommended Brown-Forman stock, partly because I liked that it was and remains a family-controlled business. Of course, having a 10-year annualized total return of 15.1% didn’t hurt. Today, that 10-year annualized total return is just 9.5%. There is no question its business isn’t firing on all cylinders.
In August, it reported Q1 2024 results that included a 5-cent miss on earnings — $0.48 vs. consensus of $0.53 — with a $10 million miss on top-line revenue. Usually, that sales miss isn’t a problem, but investors notice when you’re sucking gas. However, the company expects 6% revenue growth in 2024 and 7% operating income growth at the midpoint of its guidance.
I have no problem owning a stock that delivers this kind of growth for a product many consider nothing but marketing. Maybe so, but it’s good marketing.
Diageo (DEO)
Source: Cabeca de Marmore/ShutterStock.com
My apologies to the good people of Diageo (NYSE:DEO). As a result of my conversion to bourbon from Scotch, I’m not contributing my usual volume to your single malt revenue each year. However, Diageo has plenty of fans worldwide that have taken my place.
At the moment, Diageo finds itself in court with Sean ‘Diddy’ Combs over the terms of their joint venture for DeLeón tequila. Earlier in September, the company lost the first step in what will be a lengthy battle with the former rapper turned entrepreneur. The two acquired the brand together in 2014, but Combs argues that Diageo didn’t live up to the terms of their agreement. Diageo tried to get the case thrown out. The judge denied the request.
The tricky part of this lawsuit: Combs alleges that the company promoted both DeLeón and Ciroc vodka as “black brands,” failing to capitalize on the two brands’ premium taste and quality. Diageo, for its part, said it’s invested more than $100 million in the brands, compared to just $1,000 by Combs. As is most often the case, the truth is somewhere in the middle. I know that Johnnie Walker is one heck of a blended Scotch. It grew global sales by 15% in 2022.
Long-term, you can’t go wrong with DEO.
Boston Beer (SAM)
Source: Bashutskyy/ShutterStock.com
If you follow the drinks business, you’re likely aware of the rise and fall of hard cider and seltzers in 2021 and 2022. Boston Beer (NYSE:SAM) had Truly, the number two best-selling hard seltzer in America, behind only White Claw.
As fast as hard seltzers became a thing, people stopped buying them. Boston Beer was forced to destroy millions of cases in October 2021, opting to eliminate inventory rather than let customers buy skunky products. By then, the damage had been done. Its share price fell from nearly $1,300 in April 2021 to $500 at the time of its October 2021 announcement. Since March 2022, its share price has essentially gone sideways.
The good news is that big institutional investors are jumping back on the bandwagon. Its stock is up 25% over the past 60 days, putting SAM stock into positive territory in 2023. This make it one of those alcohol stocks to buy.
At the end of July, Boston Beer reported its Q2 2023 results. While depletions, shipments, and revenues were down low single digits over Q2 2022, it generated net income of $58 million, 8.8% higher than a year earlier, with a 230 basis point increase in gross margin to 45.4%.
It’s not all the way back, but it’s getting there.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
More From InvestorPlace
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post One Bourbon. One Scotch. One Beer: 3 Alcohol Stocks to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo (DEO) Source: Cabeca de Marmore/ShutterStock.com My apologies to the good people of Diageo (NYSE:DEO). Long-term, you can’t go wrong with DEO. While they tend to be very glamorous companies based on the way their products are marketed to consumers, the reality is that it’s a very tough business to make huge gobs of money for extended periods.
|
Diageo (DEO) Source: Cabeca de Marmore/ShutterStock.com My apologies to the good people of Diageo (NYSE:DEO). Long-term, you can’t go wrong with DEO. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Alcohol stocks are funny.
|
Diageo (DEO) Source: Cabeca de Marmore/ShutterStock.com My apologies to the good people of Diageo (NYSE:DEO). Long-term, you can’t go wrong with DEO. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Alcohol stocks are funny.
|
Diageo (DEO) Source: Cabeca de Marmore/ShutterStock.com My apologies to the good people of Diageo (NYSE:DEO). Long-term, you can’t go wrong with DEO. Here are three stocks to buy — in addition to Davide Campari Milano — whose long-term gains will have you humming George Thorogood’s One Bourbon, One Scotch, One Beer.
|
2d879e5e-dd87-4471-84dd-909677483ce4
|
727523.0
|
2023-09-15 00:00:00 UTC
|
We Did The Math FVD Can Go To $44
|
DEO
|
https://www.nasdaq.com/articles/we-did-the-math-fvd-can-go-to-%2444
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Value Line Dividend Index Fund ETF (Symbol: FVD), we found that the implied analyst target price for the ETF based upon its underlying holdings is $44.07 per unit.
With FVD trading at a recent price near $39.27 per unit, that means that analysts see 12.21% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FVD's underlying holdings with notable upside to their analyst target prices are Diageo plc (Symbol: DEO), AstraZeneca plc (Symbol: AZN), and Canadian Imperial Bank Of Commerce (Toronto, Ontario) (Symbol: CM). Although DEO has traded at a recent price of $159.68/share, the average analyst target is 23.29% higher at $196.87/share. Similarly, AZN has 18.47% upside from the recent share price of $67.78 if the average analyst target price of $80.30/share is reached, and analysts on average are expecting CM to reach a target price of $46.71/share, which is 14.71% above the recent price of $40.72. Below is a twelve month price history chart comparing the stock performance of DEO, AZN, and CM:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
First Trust Value Line Dividend Index Fund ETF FVD $39.27 $44.07 12.21%
Diageo plc DEO $159.68 $196.87 23.29%
AstraZeneca plc AZN $67.78 $80.30 18.47%
Canadian Imperial Bank Of Commerce (Toronto, Ontario) CM $40.72 $46.71 14.71%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
Latest 13F Filings
STGW Options Chain
UGA Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
First Trust Value Line Dividend Index Fund ETF FVD $39.27 $44.07 12.21% Diageo plc DEO $159.68 $196.87 23.29% AstraZeneca plc AZN $67.78 $80.30 18.47% Canadian Imperial Bank Of Commerce (Toronto, Ontario) CM $40.72 $46.71 14.71% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? 10 ETFs With Most Upside To Analyst Targets » Also see: Latest 13F Filings STGW Options Chain UGA Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Three of FVD's underlying holdings with notable upside to their analyst target prices are Diageo plc (Symbol: DEO), AstraZeneca plc (Symbol: AZN), and Canadian Imperial Bank Of Commerce (Toronto, Ontario) (Symbol: CM).
|
Three of FVD's underlying holdings with notable upside to their analyst target prices are Diageo plc (Symbol: DEO), AstraZeneca plc (Symbol: AZN), and Canadian Imperial Bank Of Commerce (Toronto, Ontario) (Symbol: CM). First Trust Value Line Dividend Index Fund ETF FVD $39.27 $44.07 12.21% Diageo plc DEO $159.68 $196.87 23.29% AstraZeneca plc AZN $67.78 $80.30 18.47% Canadian Imperial Bank Of Commerce (Toronto, Ontario) CM $40.72 $46.71 14.71% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although DEO has traded at a recent price of $159.68/share, the average analyst target is 23.29% higher at $196.87/share.
|
Three of FVD's underlying holdings with notable upside to their analyst target prices are Diageo plc (Symbol: DEO), AstraZeneca plc (Symbol: AZN), and Canadian Imperial Bank Of Commerce (Toronto, Ontario) (Symbol: CM). Although DEO has traded at a recent price of $159.68/share, the average analyst target is 23.29% higher at $196.87/share. Below is a twelve month price history chart comparing the stock performance of DEO, AZN, and CM: Below is a summary table of the current analyst target prices discussed above:
|
First Trust Value Line Dividend Index Fund ETF FVD $39.27 $44.07 12.21% Diageo plc DEO $159.68 $196.87 23.29% AstraZeneca plc AZN $67.78 $80.30 18.47% Canadian Imperial Bank Of Commerce (Toronto, Ontario) CM $40.72 $46.71 14.71% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FVD's underlying holdings with notable upside to their analyst target prices are Diageo plc (Symbol: DEO), AstraZeneca plc (Symbol: AZN), and Canadian Imperial Bank Of Commerce (Toronto, Ontario) (Symbol: CM). Although DEO has traded at a recent price of $159.68/share, the average analyst target is 23.29% higher at $196.87/share.
|
06f1c02e-3d23-4d1f-a988-d7fff0249bb2
|
727524.0
|
2023-09-04 00:00:00 UTC
|
ABEV or DEO: Which Is the Better Value Stock Right Now?
|
DEO
|
https://www.nasdaq.com/articles/abev-or-deo%3A-which-is-the-better-value-stock-right-now-3
|
nan
|
nan
|
Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Ambev (ABEV) or Diageo (DEO). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Ambev has a Zacks Rank of #2 (Buy), while Diageo has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ABEV has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ABEV currently has a forward P/E ratio of 16.79, while DEO has a forward P/E of 19.82. We also note that ABEV has a PEG ratio of 2.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DEO currently has a PEG ratio of 2.92.
Another notable valuation metric for ABEV is its P/B ratio of 2.50. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DEO has a P/B of 9.
These metrics, and several others, help ABEV earn a Value grade of B, while DEO has been given a Value grade of C.
ABEV sticks out from DEO in both our Zacks Rank and Style Scores models, so value investors will likely feel that ABEV is the better option right now.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ambev S.A. (ABEV) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Ambev (ABEV) or Diageo (DEO). ABEV currently has a forward P/E ratio of 16.79, while DEO has a forward P/E of 19.82. DEO currently has a PEG ratio of 2.92.
|
Click to get this free report Ambev S.A. (ABEV) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Ambev (ABEV) or Diageo (DEO). ABEV currently has a forward P/E ratio of 16.79, while DEO has a forward P/E of 19.82.
|
These metrics, and several others, help ABEV earn a Value grade of B, while DEO has been given a Value grade of C. ABEV sticks out from DEO in both our Zacks Rank and Style Scores models, so value investors will likely feel that ABEV is the better option right now. Click to get this free report Ambev S.A. (ABEV) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Ambev (ABEV) or Diageo (DEO).
|
DEO currently has a PEG ratio of 2.92. These metrics, and several others, help ABEV earn a Value grade of B, while DEO has been given a Value grade of C. ABEV sticks out from DEO in both our Zacks Rank and Style Scores models, so value investors will likely feel that ABEV is the better option right now. Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Ambev (ABEV) or Diageo (DEO).
|
b8db2fd7-7cfc-454f-a2ab-582c08257c06
|
727525.0
|
2023-08-30 00:00:00 UTC
|
Growth Efforts to Aid Diageo (DEO) Amid Inflationary Pressures
|
DEO
|
https://www.nasdaq.com/articles/growth-efforts-to-aid-diageo-deo-amid-inflationary-pressures
|
nan
|
nan
|
Diageo Plc DEO has been benefiting from its diversified footprint, advantaged portfolio, strong brands and favorable industry trends of premiumization. The company has been witnessing a solid business momentum, strong consumer demand and market share gains, which have been boosting its performance. Effective marketing and exceptional commercial execution bode well.
Robust sales growth, organic operating margin expansion, productivity savings and favorable currency impact aided Diageo’s fiscal 2023 results. The price/mix gained from a positive mix due to robust growth in super-premium-plus brands, particularly scotch, tequila and beer.
The Zacks Consensus Estimate for DEO’s fiscal 2024 sales and earnings suggests growth of 9.9% and 1.2%, respectively, from the year-ago period’s reported numbers.
However, continued inflationary pressures from increased glass, paper, metal, and transportation costs have been headwinds. Also, currency headwinds are concerning.
Shares of the Zacks Rank #3 (Hold) company have lost 4.1% in the past year against the industry’s growth of 2.8%.
Image Source: Zacks Investment Research
What Keeps Diageo Strong?
DEO is anticipated to retain the strength in its business through constant premiumization efforts, recovery across markets, pricing actions and supply productivity savings. The company’s premium-plus brands contributed 63% to reported sales growth and 57% to total organic sales growth for fiscal 2023.
Diageo is confident about the long-term growth potential of the beverage alcohol sector. It expects to expand its value share by 50% in the sector to 6% by 2030. DEO is on track to deliver on its medium-term guidance for fiscal 2023-2025 of 5-7% organic sales growth and 6-9% organic operating profit growth. Diageo expects to invest strongly in marketing and innovation, and leverage its revenue growth management capabilities, including strategic pricing actions.
Although the company predicts a challenging operating environment for fiscal 2024, it predicts a gradual improvement in year-over-year comparisons in the second half of fiscal 2024. The company expects net sales to improve in the first half of fiscal 2024 from the second half of fiscal 2023. It also expects accelerated sales growth in the second half of fiscal 2024 due to easy comparisons from fiscal 2023.
DEO is well-poised for growth from effective marketing and extraordinary commercial execution. It is likely to invest strongly in marketing and innovation, and leverage its revenue growth management capabilities, including strategic pricing actions. This is likely to support DEO in the near and long terms.
DEO’s margin trends were favorable in fiscal 2023, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. Organic operating profit benefited from strong sales growth, revenue management initiatives, disciplined cost management and productivity savings. Productivity initiatives delivered £450 million of cost savings in fiscal 2023. Gains from price increases more than offset the impacts of cost inflation on the gross margin.
The company expects the operating margin in fiscal 2024 to benefit from a moderating inflationary environment and continued focus on revenue management initiatives, including improved pricing. Moreover, the organic operating margin is likely to benefit from premiumization trends and operating leverage with strong marketing investments.
Our model predicts a 5% rise in operating profit in the first half of fiscal 2024, with 7% growth in fiscal 2024. The operating margin is estimated to expand 50 basis points (bps) in the first half and 100 bps in fiscal 2024.
Hurdles to Overcome
Diageo suffers from persistent inflationary pressures from higher commodity costs, particularly agave, energy expenses and supply disruptions. The company’s organic gross margin declined 97 bps in fiscal 2023 mainly due to the cost pressures.
Price increases and supply productivity savings more than offset the absolute impact of cost inflation. The significant cost pressure in fiscal 2023 mainly came from increased glass, paper, metal and transportation costs. Additionally, the gross margin was impacted by lower beer volumes in Africa.
DEO expects to continue its revenue management initiatives, including pricing actions, throughout fiscal 2024 to overcome the challenging inflationary environment. In fiscal 2024, the company expects cost inflation pressure to persist and is committed to investing in its brands to deliver sustainable growth.
We expect its cost of sales to increase 1.5% in the first half of fiscal 2024, owing to continued cost inflation. Our model estimates marketing investments to increase 4% year over year in the first half of fiscal 2024, with a 20-bps increase as a percentage of sales.
As a substantial portion of the company’s business comes from international operations, exchange rate fluctuations have been hampering its sales for a while.
Stocks to Consider
We have highlighted three better-ranked stocks from the Consumer Staple sector, namely Fomento Economico Mexicano FMX, Ambev ABEV and PepsiCo Inc. PEP.
Fomento Economico Mexicano, alias FEMSA, currently sports a Zacks Rank #1 (Strong Buy). The company has an expected EPS growth rate of 22.4% for three to five years. Shares of FMX have rallied 89.3% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FEMSA’s current financial year’s sales and earnings per share suggests growth of 31.9% and 58.3%, respectively, from the year-ago period’s reported figures. FMX has a trailing four-quarter earnings surprise of 6.1%, on average.
Ambev has a trailing four-quarter earnings surprise of 20.8%, on average. It currently carries a Zacks Rank #2 (Buy). Shares of ABEV have gained 6.4% in the year-to-date period.
The Zacks Consensus Estimate for Ambev’s current financial-year sales suggests growth of 4.5% from the year-ago period's reported figure. Meanwhile, the consensus estimate for earnings indicates a decline of 5.6% from the year-ago quarter’s reported figure. ABEV has an expected EPS growth rate of 7% for three to five years.
PepsiCo has a trailing four-quarter earnings surprise of 6.3%, on average. It currently carries a Zacks Rank #2. Shares of PEP have gained 5.1% in the past year.
The Zacks Consensus Estimate for PepsiCo’s current financial-year sales and earnings suggests growth of 6.7% and 10.2%, respectively, from the year-ago period's reported figures. PEP has an expected EPS growth rate of 8.1% for three to five years.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fomento Economico Mexicano S.A.B. de C.V. (FMX) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Ambev S.A. (ABEV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
DEO’s margin trends were favorable in fiscal 2023, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. Diageo Plc DEO has been benefiting from its diversified footprint, advantaged portfolio, strong brands and favorable industry trends of premiumization. The Zacks Consensus Estimate for DEO’s fiscal 2024 sales and earnings suggests growth of 9.9% and 1.2%, respectively, from the year-ago period’s reported numbers.
|
de C.V. (FMX) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Ambev S.A. (ABEV) : Free Stock Analysis Report To read this article on Zacks.com click here. Diageo Plc DEO has been benefiting from its diversified footprint, advantaged portfolio, strong brands and favorable industry trends of premiumization. The Zacks Consensus Estimate for DEO’s fiscal 2024 sales and earnings suggests growth of 9.9% and 1.2%, respectively, from the year-ago period’s reported numbers.
|
The Zacks Consensus Estimate for DEO’s fiscal 2024 sales and earnings suggests growth of 9.9% and 1.2%, respectively, from the year-ago period’s reported numbers. de C.V. (FMX) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Ambev S.A. (ABEV) : Free Stock Analysis Report To read this article on Zacks.com click here. Diageo Plc DEO has been benefiting from its diversified footprint, advantaged portfolio, strong brands and favorable industry trends of premiumization.
|
Diageo Plc DEO has been benefiting from its diversified footprint, advantaged portfolio, strong brands and favorable industry trends of premiumization. The Zacks Consensus Estimate for DEO’s fiscal 2024 sales and earnings suggests growth of 9.9% and 1.2%, respectively, from the year-ago period’s reported numbers. DEO is anticipated to retain the strength in its business through constant premiumization efforts, recovery across markets, pricing actions and supply productivity savings.
|
b43a6e52-0ae9-4522-ad2f-697ec557e66f
|
727526.0
|
2023-08-17 00:00:00 UTC
|
ABEV vs. DEO: Which Stock Is the Better Value Option?
|
DEO
|
https://www.nasdaq.com/articles/abev-vs.-deo%3A-which-stock-is-the-better-value-option-2
|
nan
|
nan
|
Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Ambev (ABEV) and Diageo (DEO). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Ambev and Diageo are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that ABEV likely has seen a stronger improvement to its earnings outlook than DEO has recently. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ABEV currently has a forward P/E ratio of 17.21, while DEO has a forward P/E of 20.21. We also note that ABEV has a PEG ratio of 2.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DEO currently has a PEG ratio of 2.98.
Another notable valuation metric for ABEV is its P/B ratio of 2.56. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DEO has a P/B of 8.50.
These are just a few of the metrics contributing to ABEV's Value grade of B and DEO's Value grade of C.
ABEV has seen stronger estimate revision activity and sports more attractive valuation metrics than DEO, so it seems like value investors will conclude that ABEV is the superior option right now.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ambev S.A. (ABEV) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Ambev (ABEV) and Diageo (DEO). Investors should feel comfortable knowing that ABEV likely has seen a stronger improvement to its earnings outlook than DEO has recently. ABEV currently has a forward P/E ratio of 17.21, while DEO has a forward P/E of 20.21.
|
These are just a few of the metrics contributing to ABEV's Value grade of B and DEO's Value grade of C. ABEV has seen stronger estimate revision activity and sports more attractive valuation metrics than DEO, so it seems like value investors will conclude that ABEV is the superior option right now. Click to get this free report Ambev S.A. (ABEV) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Ambev (ABEV) and Diageo (DEO).
|
These are just a few of the metrics contributing to ABEV's Value grade of B and DEO's Value grade of C. ABEV has seen stronger estimate revision activity and sports more attractive valuation metrics than DEO, so it seems like value investors will conclude that ABEV is the superior option right now. Click to get this free report Ambev S.A. (ABEV) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Ambev (ABEV) and Diageo (DEO).
|
DEO currently has a PEG ratio of 2.98. These are just a few of the metrics contributing to ABEV's Value grade of B and DEO's Value grade of C. ABEV has seen stronger estimate revision activity and sports more attractive valuation metrics than DEO, so it seems like value investors will conclude that ABEV is the superior option right now. Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Ambev (ABEV) and Diageo (DEO).
|
1dd082fb-a0fd-475c-8f25-b6f69404db8e
|
727527.0
|
2023-08-17 00:00:00 UTC
|
3 Beer Stocks to Tap into if You're Ready for Some Football
|
DEO
|
https://www.nasdaq.com/articles/3-beer-stocks-to-tap-into-if-youre-ready-for-some-football
|
nan
|
nan
|
Beer and football go together like peanut butter and jelly. That's why savvy investors can use the kickoff of football season to add one or more beer stocks to your portfolio. Historically, these companies deliver their strongest revenue and earnings in the third and fourth quarters of the year.
That's not by accident. Football has a way of bringing people together, and when you need to buy beer in quantity, traditional beer brands win their share of consumers' wallets.
And that's not likely to change. According to Statista, the U.S. beer market is expected to deliver $121 billion in revenue in 2023. Analysts also expect the compound annual growth rate (CAGR) for the sector to be 4.77% between 2023 and 2027
However, it's tough to invest in beer stocks. In addition to competition within the sector, consumer tastes are changing. The popularity of craft beers and other specialty drinks is eating into revenue and earnings for traditional beer companies.
Here are three beer stocks that offer investors significant growth opportunities as football season kicks off.
The Winner in the 2023 Beer Wars
Constellation Brands, Inc. (NYSE: STZ) is the winner of Bud Light's troubles. Constellation is the parent company of the Modelo brand. And in July, Modelo was the most-sold U.S. beer for the second consecutive month. Constellation's portfolio also has other popular brands, such as Corona and Pacifico.
STZ stock is up 14% in 2023. Most of that growth corresponds with the increased popularity of the Modelo brand. Now the company must prove to investors that all the growth isn't priced into the stock.
The Constellation Brands analyst ratings on MarketBeat suggest STZ stock may be topping out. However, analysts are forecasting 14% earnings growth that may not be fully priced into the stock.
Invest in the Most Popular Beer Brand
Diageo plc (NYSE: DEO) is far from a pure play on beer. The company is best known for its line of spirits such as Johnnie Walker scotch, Captain Morgan rum, and Casamigos tequila. And this is where the company is building its reputation as a supplier of premium spirits.
But it's also the holding company for Guinness, which is far from a niche brand. According to the international research firm YouGov, Guinness is the most popular U.S. beer among all adults at 58%. That percentage gets higher among millennials at 64%.
DEO stock is down 4.4% in 2023 and is down by more than 10% in the last 12 months. And the Diageo analyst ratings on MarketBeat give the company a consensus Hold rating. However, the company is expected to grow earnings by 8% in the next 12 months. That's not necessarily reflected in the stock price.
A Contrarian Pick Hiding in Plain Sight
Anheuser-Busch InBev, Inc. (NYSE: BUD) is a contrarian stock to put on your fourth-quarter shopping list. It's true that this is the parent company of the much-maligned Bud Light brand. However, there are three reasons to believe that the company will benefit
First, Bud Light is the official light beer of the National Football League. This means consumers will see the brand's logo on stadiums, TV screens, and in-store signage. Bud Light was the nation's best-selling beer in 2022. And prior to May it was a shoo-in to maintain that title in 2023.
Second, this is a case of a company being different from a brand. Bud Light is one of many brands underneath the Anheuser-Busch InBev umbrella. It's easy enough to avoid buying a specific brand. It's more challenging to avoid every brand associated with the company.
Third, Anheuser-Busch is an international company generating revenue in countries that aren't paying any attention to the controversy bedeviling the Bud Light brand.
The proof of that statement is in the company's performance. In its July earnings report, the company came in light on the top line. However, revenue was higher on a year-over-year (YoY) basis. And earnings are on par with 2022 as the company heads into its two strongest quarters.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Invest in the Most Popular Beer Brand Diageo plc (NYSE: DEO) is far from a pure play on beer. DEO stock is down 4.4% in 2023 and is down by more than 10% in the last 12 months. Analysts also expect the compound annual growth rate (CAGR) for the sector to be 4.77% between 2023 and 2027 However, it's tough to invest in beer stocks.
|
Invest in the Most Popular Beer Brand Diageo plc (NYSE: DEO) is far from a pure play on beer. DEO stock is down 4.4% in 2023 and is down by more than 10% in the last 12 months. The Winner in the 2023 Beer Wars Constellation Brands, Inc. (NYSE: STZ) is the winner of Bud Light's troubles.
|
Invest in the Most Popular Beer Brand Diageo plc (NYSE: DEO) is far from a pure play on beer. DEO stock is down 4.4% in 2023 and is down by more than 10% in the last 12 months. The popularity of craft beers and other specialty drinks is eating into revenue and earnings for traditional beer companies.
|
Invest in the Most Popular Beer Brand Diageo plc (NYSE: DEO) is far from a pure play on beer. DEO stock is down 4.4% in 2023 and is down by more than 10% in the last 12 months. Analysts also expect the compound annual growth rate (CAGR) for the sector to be 4.77% between 2023 and 2027 However, it's tough to invest in beer stocks.
|
95bcdbbd-7465-45b4-ba3e-4d3aeaae78f0
|
727528.0
|
2023-08-15 00:00:00 UTC
|
The 3 Best Beer Stocks to Buy Following the Bud Light Brouhaha
|
DEO
|
https://www.nasdaq.com/articles/the-3-best-beer-stocks-to-buy-following-the-bud-light-brouhaha
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Halfway through August, it’s been a crazy summer for the beer industry. While painful to watch, the entire Bud Light brouhaha has brought into focus some of the best beer stocks to buy on the planet.
The Daily Mail published an article at the end of July discussing how Heineken (OTCMKTS:HEINY) deals with the ongoing polarization of society.
“You have to be thoughtful, you have to be balanced. And at the same time, you need to stand for your values and your principles. And we try to do that to the best of our abilities,” Heineken CEO Dolf van der Brink stated while appearing on CNBC Squawk Box Europe.
Conservatie newscasters have completely gotten it wrong about why Bud Light sales have cratered this summer. It’s all about Modelo taking control of big beer sales in the United States.
Beer’s best days could be behind it as spirits and wine continue to gain market share. However, I think beer will remain the beverage of choice for many drinkers worldwide.
Here are three of the best beer stocks to buy if you believe beer will always be popular.
Carlsberg (CABGY)
Source: shutterstock.com/DisobeyArt
I thought about selecting Heineken over Carlsberg (OTCMKTS:CABGY). However, I couldn’t pass on this stock because I’ve visited Carlsberg’s main brewery in Copenhagen. It’s one heck of an impressive facility.
Carlsberg’s history dates back to 1847 when brewer J.C. Jacobsen founded the brewery in Copenhagen. Today, it has 140 brands and approximately 40,000 employees worldwide. Jacobsen named the company and its legacy beer after his son Carl. The two proceeded to compete against one another until reconciling in 1886.
Most people would be familiar with the Carlsberg beer brand. However, as I said, it has 140 brands, including other familiar names to Americans, such as Tuborg and 1664. It also owns the brand rights to Brooklyn Brewery in Europe and Asia. It acquired those rights in Feb. 2021 for $130 million.
It has three major goals for its portfolio throughout the next five years.
First, it will continue strengthening its premium beer business by growing its super-premium 1664 Blanc in existing and new markets — between 2016 and 2o22, the company increased the brand’s volume by 19% compounded annually — and growing Carlsberg and Tuborg in Asia. Secondly, it plans to strengthen its mainstream core beer brands. While they might not have the cachet of Carlsberg or 1664 Blanc, they account for 62% of its overall volume.
Lastly, it looks to expand both its alcohol-free brands and non-beer offerings. Its goal is to have low or no-alcohol beer account for 35% of its sales by 2030. Additionally, it looks to expand the Somersby cider brand in select markets worldwide. That last goal could be the one that delivers the biggest surprise in years to come.
In its latest fiscal year, Carlsberg had revenue of 70.3 billion Danish kroner ($10.3 billion) with 11.9 billion Danish kroner ($1.8 billion) in operating profits.
Constellation Brands (STZ)
Source: IgorGolovniov / Shutterstock
Like many companies in the alcohol beverage industry these days, Constellation Brands (NYSE:STZ) does more than produce beer. I’m not just speaking about its failed investment in Canopy Growth (NYSE:CGC). As of May 31, that investment was valued at $142.7 million. It paid close to $4 billion.
Howevr, that’s water under the bridge.
So, in addition to Modelo, the nation’s top-selling beer, its other beer brands include Corona, Corona Light, Negra Modelo, Pacifico and others. In addition, it produces hard seltzers and malt beverages under the Corona brand. Its wine brands include Kim Crawford and Robert Mondavi Private Selection. Its spirits brands include Casa Noble and MiCampo tequilas, High West whiskey and Svedka vodka.
In the latest quarter ended June 30, its revenues were $2.52 billion, 6% higher than a year earlier. This is with $827 million in operating income, which was 4% higher than Q2 2023. The Modelo brand led the charge with 11% net sales growth. As a result of its strong growth, the company raised its 2024 guidance for earnings per share to $11.85 at the midpoint.
Its beer business accounted for 83% of its revenue in the second quarter. As Modelo goes, so too does Constellation Brands.
Diageo (DEO)
Source: IgorGolovniov / Shutterstock.com
This last pick is a sneaky way to buy into the beer business.
Diageo (NYSE:DEO) is the world’s most preeminent spirits business. Its brands include Johnnie Walker Scotch, Captain Morgan rum, Bulleit bourbon, Smirnoff vodka, Tanqueray gin, Don Julio, Casamigos tequila and many others.
In Q2 2023, according to YouGov, Guinness was the most popular beer among Americans, chosen by 58% of the adults surveyed. The next highest was Corona Extra at 53% and Heineken at 51%. Bud Light came in 15th spot at 42%, tied with Miller Genuine Draft.
At a time when beer and wine are giving way to spirits, page 13 of Diageo’s 2023 annual report said so, Guinness sales rose by 9% in the past year, indicating that if you brew the right beer, many people will drink it.
Interestingly, it might not be a beer that makes Diageo such a great buy, but tequila. In July 2022, Barron’s published an article suggesting tequila might make the company recession-proof.
“The Mexican spirit, through its brands Don Julio and Casamigos, has generated a third of organic group sales growth over the past five years,” stated Barron’s contributor Brian Swint.
How did tequila do in 2023? Organic sales rose by 19%, joining Guinness as some of the strongest brands in its portfolio.
As for the analysts, it’s a bit of a mixed bag, with 11 out of 23 rating it as “overweight” or an outright “buy,” while eight have it as a “hold,” with four at “underweight” or an outright “sell.”
However, the median target price of $193.59 is 12% higher than where it currently trades.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
More From InvestorPlace
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
It doesn’t matter if you have $500 or $5 million. Do this now.
The $1 Investment You MUST Take Advantage of Right Now
The post The 3 Best Beer Stocks to Buy Following the Bud Light Brouhaha appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo (DEO) Source: IgorGolovniov / Shutterstock.com This last pick is a sneaky way to buy into the beer business. Diageo (NYSE:DEO) is the world’s most preeminent spirits business. The Daily Mail published an article at the end of July discussing how Heineken (OTCMKTS:HEINY) deals with the ongoing polarization of society.
|
Diageo (DEO) Source: IgorGolovniov / Shutterstock.com This last pick is a sneaky way to buy into the beer business. Diageo (NYSE:DEO) is the world’s most preeminent spirits business. Carlsberg (CABGY) Source: shutterstock.com/DisobeyArt I thought about selecting Heineken over Carlsberg (OTCMKTS:CABGY).
|
Diageo (DEO) Source: IgorGolovniov / Shutterstock.com This last pick is a sneaky way to buy into the beer business. Diageo (NYSE:DEO) is the world’s most preeminent spirits business. Constellation Brands (STZ) Source: IgorGolovniov / Shutterstock Like many companies in the alcohol beverage industry these days, Constellation Brands (NYSE:STZ) does more than produce beer.
|
Diageo (DEO) Source: IgorGolovniov / Shutterstock.com This last pick is a sneaky way to buy into the beer business. Diageo (NYSE:DEO) is the world’s most preeminent spirits business. Here are three of the best beer stocks to buy if you believe beer will always be popular.
|
ec40e584-e423-4258-991c-c15fc8902ce6
|
727529.0
|
2023-08-15 00:00:00 UTC
|
The Math Shows FVD Can Go To $44
|
DEO
|
https://www.nasdaq.com/articles/the-math-shows-fvd-can-go-to-%2444
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Value Line Dividend Index Fund ETF (Symbol: FVD), we found that the implied analyst target price for the ETF based upon its underlying holdings is $44.07 per unit.
With FVD trading at a recent price near $39.86 per unit, that means that analysts see 10.57% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FVD's underlying holdings with notable upside to their analyst target prices are Canadian Imperial Bank Of Commerce (Toronto, Ontario) (Symbol: CM), Bank of Montreal (Quebec) (Symbol: BMO), and Diageo plc (Symbol: DEO). Although CM has traded at a recent price of $41.34/share, the average analyst target is 19.31% higher at $49.32/share. Similarly, BMO has 15.12% upside from the recent share price of $87.45 if the average analyst target price of $100.67/share is reached, and analysts on average are expecting DEO to reach a target price of $196.87/share, which is 13.68% above the recent price of $173.18. Below is a twelve month price history chart comparing the stock performance of CM, BMO, and DEO:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
First Trust Value Line Dividend Index Fund ETF FVD $39.86 $44.07 10.57%
Canadian Imperial Bank Of Commerce (Toronto, Ontario) CM $41.34 $49.32 19.31%
Bank of Montreal (Quebec) BMO $87.45 $100.67 15.12%
Diageo plc DEO $173.18 $196.87 13.68%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
Top Stocks Held By Louis Bacon
ADEA Dividend History
CVLG Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
First Trust Value Line Dividend Index Fund ETF FVD $39.86 $44.07 10.57% Canadian Imperial Bank Of Commerce (Toronto, Ontario) CM $41.34 $49.32 19.31% Bank of Montreal (Quebec) BMO $87.45 $100.67 15.12% Diageo plc DEO $173.18 $196.87 13.68% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FVD's underlying holdings with notable upside to their analyst target prices are Canadian Imperial Bank Of Commerce (Toronto, Ontario) (Symbol: CM), Bank of Montreal (Quebec) (Symbol: BMO), and Diageo plc (Symbol: DEO). Similarly, BMO has 15.12% upside from the recent share price of $87.45 if the average analyst target price of $100.67/share is reached, and analysts on average are expecting DEO to reach a target price of $196.87/share, which is 13.68% above the recent price of $173.18.
|
Three of FVD's underlying holdings with notable upside to their analyst target prices are Canadian Imperial Bank Of Commerce (Toronto, Ontario) (Symbol: CM), Bank of Montreal (Quebec) (Symbol: BMO), and Diageo plc (Symbol: DEO). Similarly, BMO has 15.12% upside from the recent share price of $87.45 if the average analyst target price of $100.67/share is reached, and analysts on average are expecting DEO to reach a target price of $196.87/share, which is 13.68% above the recent price of $173.18. First Trust Value Line Dividend Index Fund ETF FVD $39.86 $44.07 10.57% Canadian Imperial Bank Of Commerce (Toronto, Ontario) CM $41.34 $49.32 19.31% Bank of Montreal (Quebec) BMO $87.45 $100.67 15.12% Diageo plc DEO $173.18 $196.87 13.68% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
|
Similarly, BMO has 15.12% upside from the recent share price of $87.45 if the average analyst target price of $100.67/share is reached, and analysts on average are expecting DEO to reach a target price of $196.87/share, which is 13.68% above the recent price of $173.18. Three of FVD's underlying holdings with notable upside to their analyst target prices are Canadian Imperial Bank Of Commerce (Toronto, Ontario) (Symbol: CM), Bank of Montreal (Quebec) (Symbol: BMO), and Diageo plc (Symbol: DEO). Below is a twelve month price history chart comparing the stock performance of CM, BMO, and DEO: Below is a summary table of the current analyst target prices discussed above:
|
First Trust Value Line Dividend Index Fund ETF FVD $39.86 $44.07 10.57% Canadian Imperial Bank Of Commerce (Toronto, Ontario) CM $41.34 $49.32 19.31% Bank of Montreal (Quebec) BMO $87.45 $100.67 15.12% Diageo plc DEO $173.18 $196.87 13.68% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FVD's underlying holdings with notable upside to their analyst target prices are Canadian Imperial Bank Of Commerce (Toronto, Ontario) (Symbol: CM), Bank of Montreal (Quebec) (Symbol: BMO), and Diageo plc (Symbol: DEO). Similarly, BMO has 15.12% upside from the recent share price of $87.45 if the average analyst target price of $100.67/share is reached, and analysts on average are expecting DEO to reach a target price of $196.87/share, which is 13.68% above the recent price of $173.18.
|
8e638191-0264-43ab-bc52-2a7a4cd2fd81
|
727530.0
|
2023-08-10 00:00:00 UTC
|
Diageo plc - ADR (DEO) Declares $2.51 Dividend
|
DEO
|
https://www.nasdaq.com/articles/diageo-plc-adr-deo-declares-%242.51-dividend
|
nan
|
nan
|
Diageo plc - ADR said on August 8, 2023 that its board of directors declared a regular semi-annual dividend of $2.51 per share ($5.02 annualized). Previously, the company paid $1.54 per share.
Shares must be purchased before the ex-div date of August 24, 2023 to qualify for the dividend. Shareholders of record as of August 25, 2023 will receive the payment on October 17, 2023.
At the current share price of $171.52 / share, the stock's dividend yield is 2.93%.
Looking back five years and taking a sample every week, the average dividend yield has been 3.57%, the lowest has been 1.62%, and the highest has been 5.99%. The standard deviation of yields is 0.76 (n=236).
The current dividend yield is 0.85 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 2.19. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company has not increased its dividend in the last three years.
What is the Fund Sentiment?
There are 1115 funds or institutions reporting positions in Diageo plc - ADR. This is a decrease of 18 owner(s) or 1.59% in the last quarter. Average portfolio weight of all funds dedicated to DEO is 0.35%, a decrease of 9.23%. Total shares owned by institutions increased in the last three months by 3.06% to 59,013K shares.
The put/call ratio of DEO is 0.56, indicating a bullish outlook.
Analyst Price Forecast Suggests 17.09% Upside
As of August 2, 2023, the average one-year price target for Diageo plc - ADR is 200.84. The forecasts range from a low of 138.60 to a high of $282.75. The average price target represents an increase of 17.09% from its latest reported closing price of 171.52.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Diageo plc - ADR is 18,702MM, an increase of 9.29%. The projected annual non-GAAP EPS is 1.95.
What are Other Shareholders Doing?
Bank Of America holds 5,187K shares representing 0.23% ownership of the company. In it's prior filing, the firm reported owning 4,874K shares, representing an increase of 6.04%. The firm decreased its portfolio allocation in DEO by 75.11% over the last quarter.
Clearbridge Investments holds 2,385K shares representing 0.11% ownership of the company. In it's prior filing, the firm reported owning 1,520K shares, representing an increase of 36.27%. The firm increased its portfolio allocation in DEO by 54.34% over the last quarter.
Wells Fargo holds 2,366K shares representing 0.11% ownership of the company. In it's prior filing, the firm reported owning 2,286K shares, representing an increase of 3.37%. The firm increased its portfolio allocation in DEO by 0.96% over the last quarter.
UBS Group holds 2,067K shares representing 0.09% ownership of the company. In it's prior filing, the firm reported owning 2,079K shares, representing a decrease of 0.55%. The firm decreased its portfolio allocation in DEO by 1.03% over the last quarter.
Charles Schwab Investment Management holds 2,040K shares representing 0.09% ownership of the company. In it's prior filing, the firm reported owning 2,014K shares, representing an increase of 1.25%. The firm decreased its portfolio allocation in DEO by 14.51% over the last quarter.
Diageo Background Information
(This description is provided by the company.)
Diageo plc is a multinational alcoholic beverage company, with its headquarters in London, England. It operates from 132 sites around the world. It was the worlds largest distiller before being overtaken by Kweichow Moutai of China in 2017. It is a major distributor of Scotch whisky and other sprits.
Additional reading:
DocuSign Envelope ID: 0F129902-F654-4AB0-A230-F1B1DA4FAB00 Confidential 28 March 2023 Diageo plc (1) Debra Crew (2) SERVICE AGREEMENT 580881896 216200/16090 580185334 8 JKXS 170223:1211 DocuSign Envelope ID: 0F129902-F654-4AB0-A230-F1B1DA4FAB00 CONTE
Statement of eligibility of Trustee on Form T-1 with respect to Exhibit 4.1 above.
Statement of eligibility of Trustee on Form T-1 with respect to Exhibit 4.2 above.
Statement of eligibility of Trustee on Form T-1 with respect to Exhibit 4.3 above.
Opinion of Sullivan & Cromwell LLP, U.S. counsel to Diageo Investment Corporation, Diageo Capital plc and Diageo plc, as to certain matters of U.S. taxation.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Average portfolio weight of all funds dedicated to DEO is 0.35%, a decrease of 9.23%. The put/call ratio of DEO is 0.56, indicating a bullish outlook. The firm decreased its portfolio allocation in DEO by 75.11% over the last quarter.
|
Average portfolio weight of all funds dedicated to DEO is 0.35%, a decrease of 9.23%. The put/call ratio of DEO is 0.56, indicating a bullish outlook. The firm decreased its portfolio allocation in DEO by 75.11% over the last quarter.
|
Average portfolio weight of all funds dedicated to DEO is 0.35%, a decrease of 9.23%. The put/call ratio of DEO is 0.56, indicating a bullish outlook. The firm decreased its portfolio allocation in DEO by 75.11% over the last quarter.
|
Average portfolio weight of all funds dedicated to DEO is 0.35%, a decrease of 9.23%. The put/call ratio of DEO is 0.56, indicating a bullish outlook. The firm decreased its portfolio allocation in DEO by 75.11% over the last quarter.
|
1d6264e8-bb16-4eeb-8a56-29661762f909
|
727531.0
|
2023-08-10 00:00:00 UTC
|
Why Diageo is a Top 10 SAFE International Dividend Stock (DEO)
|
DEO
|
https://www.nasdaq.com/articles/why-diageo-is-a-top-10-safe-international-dividend-stock-deo-0
|
nan
|
nan
|
Diageo plc (Symbol: DEO) has been named to the Dividend Channel ''International S.A.F.E. 10'' list, signifying an international stock with above-average ''DividendRank'' statistics including a strong 2.9% yield, as well as a superb track record of at least five years of dividend growth, according to the most recent ''DividendRank'' report.
According to the ETF Finder at ETF Channel, Diageo plc is an underlying holding representing 1.56% of the Powershares International Dividend Achievers ETF (PID), which holds $16,995,264 worth of DEO shares.
Diageo plc (Symbol: DEO) made the "Dividend Channel International S.A.F.E. 10" list because of these qualities: S. Solid return — hefty yield and strong DividendRank characteristics; A. Accelerating amount — consistent dividend increases over time; F. Flawless five year history — never a missed or lowered dividend; E. Enduring — at least a half-decade of dividend payments.
Start slideshow:
Ten Top S.A.F.E. International Dividend Stocks »
The annualized dividend paid by Diageo plc is $5.02/share, currently paid in semi-annual installments, and its most recent dividend ex-date was on 08/24/2023. Below is a long-term dividend history chart for DEO, which the report stressed as being of key importance.
DEO operates in the Beverages & Wineries sector, among companies like PepsiCo Inc (PEP), and Fomento Economico Mexicano, S.A.B. de C.V. (FMX).
Also see:
JPC Dividend History
Forum Energy Technologies Historical Earnings
HYXE Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is a long-term dividend history chart for DEO, which the report stressed as being of key importance. DEO operates in the Beverages & Wineries sector, among companies like PepsiCo Inc (PEP), and Fomento Economico Mexicano, S.A.B. Diageo plc (Symbol: DEO) has been named to the Dividend Channel ''International S.A.F.E.
|
Diageo plc (Symbol: DEO) has been named to the Dividend Channel ''International S.A.F.E. Diageo plc (Symbol: DEO) made the "Dividend Channel International S.A.F.E. According to the ETF Finder at ETF Channel, Diageo plc is an underlying holding representing 1.56% of the Powershares International Dividend Achievers ETF (PID), which holds $16,995,264 worth of DEO shares.
|
According to the ETF Finder at ETF Channel, Diageo plc is an underlying holding representing 1.56% of the Powershares International Dividend Achievers ETF (PID), which holds $16,995,264 worth of DEO shares. Diageo plc (Symbol: DEO) has been named to the Dividend Channel ''International S.A.F.E. Diageo plc (Symbol: DEO) made the "Dividend Channel International S.A.F.E.
|
Diageo plc (Symbol: DEO) has been named to the Dividend Channel ''International S.A.F.E. Diageo plc (Symbol: DEO) made the "Dividend Channel International S.A.F.E. According to the ETF Finder at ETF Channel, Diageo plc is an underlying holding representing 1.56% of the Powershares International Dividend Achievers ETF (PID), which holds $16,995,264 worth of DEO shares.
|
e147f2cb-61ef-40a6-aa56-1482f2545a3b
|
727532.0
|
2023-08-08 00:00:00 UTC
|
DEO Quantitative Stock Analysis
|
DEO
|
https://www.nasdaq.com/articles/deo-quantitative-stock-analysis-1
|
nan
|
nan
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. This deep value model looks for inexpensive stocks that could be potential takeover targets.
DIAGEO PLC (ADR) (DEO) is a large-cap growth stock in the Beverages (Alcoholic) industry. The rating using this strategy is 78% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
QUALITY: PASS
ACQUIRER'S MULTIPLE FAIL
Detailed Analysis of DIAGEO PLC (ADR)
DEO Guru Analysis
DEO Fundamental Analysis
More Information on Tobias Carlisle
Tobias Carlisle Portfolio
About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. He is the author of "The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market" and the founder of Acquirer's Funds. He is also the author of "Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations" and co-author of Quantitative Value: "A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors" Tobias is originally from Australia, where he worked an an analyst at an activist hedge fund and was a lawyer specializing in mergers and acquisitions.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield Stocks
Financial Planning Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
DIAGEO PLC (ADR) (DEO) is a large-cap growth stock in the Beverages (Alcoholic) industry. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle.
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
|
Of the 22 guru strategies we follow, DEO rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO).
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
|
4b1e29ab-6430-4852-afc0-1f1cabff848e
|
727533.0
|
2023-08-02 00:00:00 UTC
|
Diageo (DEO) FY23 Results Gain From Productivity Efforts
|
DEO
|
https://www.nasdaq.com/articles/diageo-deo-fy23-results-gain-from-productivity-efforts
|
nan
|
nan
|
Diageo plc DEO reported preliminary fiscal 2023 results, ending Jun 30, 2023, wherein pre-exceptional earnings per share rose 7.6% year over year to 163.5 pence (in local currency). This was mainly driven by strong top-line growth, organic operating margin expansion and productivity savings. Effective marketing and exceptional commercial execution further aided the results.
On a reported basis, net sales increased 10.7%, driven by strong organic growth and favorable currency impacts. Organic net sales were up 6.5% year over year, driven by a robust price mix, offset by a decline in volume. The company delivered a positive price mix of 7.3% in fiscal 2023. The price/mix benefited from a high-single-digit contribution from pricing and premiumization. The reported volume declined 7.4% in fiscal 2023, while the organic volume was down 0.8%. Sales improved in four of its five regions, with double-digit growth in Europe and the Asia Pacific.
Organic sales growth was driven by improvements across most categories, particularly its top three categories — scotch, tequila and beer, which delivered double-digit organic sales growth. The company’s premium-plus brands contributed 63% of the reported sales growth and 57% of the total organic sales growth for fiscal 2023.
Shares of the Zacks Rank #4 (Sell) company have lost 8% in the past year compared with the industry’s decline of 0.3%.
Image Source: Zacks Investment Research
The company’s operating profit improved 5.1% in fiscal 2023, driven by robust organic operating profit growth, offset by the negative impacts of certain exceptional operating items and currency. Organic operating profit advanced 7%. The reported operating margin contracted 147 bps, while the organic operating margin increased 15 bps. The organic operating margin was aided by disciplined cost management. Gains from price increases more than offset the impacts of cost inflation on the gross margin.
On its fiscal 2023earnings call management noted that Diageo would change its reporting from sterling to the U.S. dollar starting fiscal 2024.
Financials
In fiscal 2023, Diageo delivered net cash from operating activities of £3 billion, marking a year-over-year decline of £0.9 billion. DEO reported a strong free cash flow of £1.8 million, down £1 billion from last year’s level due to higher working capital outflows, tax and interest payments, and capital investments. This was offset by gains from higher operating profit and favorable currency.
Diageo is committed to its disciplined approach to capital allocation primarily to enhance its shareholder value. In fiscal 2023, the company incurred a capital expenditure of £1.2 billion related to supply capacity, sustainability, digital capabilities and consumer experiences.
DEO increased the final dividend 5% to 49.17 pence per share. This reflects its strong liquidity position and confidence in the long-term health of its business.
Additionally, Diageo completed £1.4 billion of return of capital in fiscal 2023, including £0.9 billion linked to the completion of its £4.5-billion multi-year program. The company returned £0.5 billion in the second half of fiscal 2023. On its fiscal 2023earnings call the company approved a return of capital program of up to $1 billion.
FY24 & Long-Term View
Although the company expects the operating environment to be challenging in fiscal 2024, it predicts a gradual improvement in year-over-year comparisons in the second half. The company expects the operating margin in fiscal 2024 to benefit from a moderating inflationary environment and continued focus on revenue management initiatives, including improved pricing. Moreover, the organic operating margin is likely to benefit from premiumization trends and operating leverage with strong marketing investments.
The company anticipates the tax rate before exceptional items to be 24% for fiscal 2024. It expects the effective interest rate to be above 4% in the fiscal.
For fiscal 2024, the company expects a capital expenditure of $1.3-$1.5 billion (£1-£1.2 billion).
Moreover, it notes that it is on track to deliver on its medium-term guidance for fiscal 2023-2025, wherein it targets organic sales growth of 5-7% and organic operating profit growth of 6-9%.
Stocks to Consider
We highlighted some better-ranked stocks from the broader Consumer Staples space, namely Molson Coors TAP, The Duckhorn Portfolio NAPA and The Boston Beer Company SAM.
Molson Coors currently sports a Zacks Rank #1 (Strong Buy). TAP has a trailing four-quarter earnings surprise of 32.1%, on average. It has a long-term earnings growth rate of 7.1%. The company has rallied 22.8% in the past year.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Molson Coors’ current financial-year sales and earnings suggests growth of 8.4% and 19.5%, respectively. The consensus mark for TAP’s earnings per share has moved up 3.6% in the past seven days.
Duckhorn currently has a Zacks Rank #2 (Buy) and an expected long-term earnings growth rate of 6.6%. NAPA has a trailing four-quarter earnings surprise of 14.2%, on average.
The Zacks Consensus Estimate for Duckhorn’s current financial-year sales suggests growth of 8.3% from the year-ago reported number. Shares of NAPA have declined 32.9% in the past year.
Boston Beer currently carries a Zacks Rank #2. SAM has a trailing four-quarter negative earnings surprise of 74.9%, on average. The company has declined 3% in the past year.
The Zacks Consensus Estimate for Boston Beer’s current financial year’s sales suggests a decline of 4.1% from the year-ago reported number, whereas the same for earnings per share indicates growth of 5.1%. The consensus mark for SAM’s earnings per share has moved up 5.9% in the past seven days.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report
The Duckhorn Portfolio, Inc. (NAPA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo plc DEO reported preliminary fiscal 2023 results, ending Jun 30, 2023, wherein pre-exceptional earnings per share rose 7.6% year over year to 163.5 pence (in local currency). DEO reported a strong free cash flow of £1.8 million, down £1 billion from last year’s level due to higher working capital outflows, tax and interest payments, and capital investments. DEO increased the final dividend 5% to 49.17 pence per share.
|
Click to get this free report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report The Duckhorn Portfolio, Inc. (NAPA) : Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc DEO reported preliminary fiscal 2023 results, ending Jun 30, 2023, wherein pre-exceptional earnings per share rose 7.6% year over year to 163.5 pence (in local currency). DEO reported a strong free cash flow of £1.8 million, down £1 billion from last year’s level due to higher working capital outflows, tax and interest payments, and capital investments.
|
Click to get this free report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report The Duckhorn Portfolio, Inc. (NAPA) : Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc DEO reported preliminary fiscal 2023 results, ending Jun 30, 2023, wherein pre-exceptional earnings per share rose 7.6% year over year to 163.5 pence (in local currency). DEO reported a strong free cash flow of £1.8 million, down £1 billion from last year’s level due to higher working capital outflows, tax and interest payments, and capital investments.
|
Diageo plc DEO reported preliminary fiscal 2023 results, ending Jun 30, 2023, wherein pre-exceptional earnings per share rose 7.6% year over year to 163.5 pence (in local currency). DEO reported a strong free cash flow of £1.8 million, down £1 billion from last year’s level due to higher working capital outflows, tax and interest payments, and capital investments. DEO increased the final dividend 5% to 49.17 pence per share.
|
719f1d76-5a10-4757-aee6-a507487c1577
|
727534.0
|
2023-07-27 00:00:00 UTC
|
Factors Likely to Influence Diageo's (DEO) FY23 Earnings
|
DEO
|
https://www.nasdaq.com/articles/factors-likely-to-influence-diageos-deo-fy23-earnings
|
nan
|
nan
|
Diageo Plc DEO is scheduled to release preliminary results for fiscal 2023 on Aug 1. DEO has been benefiting from its diversified footprint, advantaged portfolio, strong brands and favorable industry trends of premiumization. The company has been witnessing solid business momentum, strong consumer demand and market share gains, which have been boosting its performance. Effective marketing and exceptional commercial execution bode well.
However, inflation, stemming from higher glass, ocean freight and transportation costs, has been a headwind for this Zacks Rank #4 (Sell) company. Currency headwinds are also concerning.
The alcoholic beverage company, which reports on a half-yearly basis, posted robust sales growth, operating margin expansion and productivity savings, which aided earnings in the first half of fiscal 2023.
Diageo plc Price, Consensus and EPS Surprise
Diageo plc price-consensus-eps-surprise-chart | Diageo plc Quote
Key Factors to Note
DEO is anticipated to have retained the strength in its business in fiscal 2023 through constant premiumization efforts, recovery across markets, pricing actions and supply productivity savings.
DEO is well-poised for growth from effective marketing and extraordinary commercial execution. It is likely to invest strongly in marketing and innovation, and leverage its revenue growth management capabilities, including strategic pricing actions. This is likely to support DEO in the near and long terms. Gains from its marketing actions are expected to get reflected in its margin performance for fiscal 2023.
The company’s margin trends were favorable in the first half of fiscal 2023, thanks to its premiumization efforts, ongoing market recovery, pricing actions and disciplined cost management. Organic operating profit is likely to have benefited from the leverage in operating costs, driven by disciplined cost management. Supply productivity savings and price increases are also expected to have contributed to margin growth despite the impacts of higher cost inflation on the gross margin.
On the last reportedearnings call the company expected the fiscal 2023 organic operating margin to benefit from continued premiumization trends, everyday efficiencies and operating expense leverage, offset by strong investments in marketing.
Our model had predicted an operating margin, on a GAAP basis, of 29.7% for fiscal 2023, reflecting an expansion of 120 basis points (bps) from the prior-year reported figure. The operating margin, before pre-exceptional items, is expected to decline 110 bps year over year to 29.9%.
For fiscal 2023, DEO anticipated organic net sales growth across North America to normalize through the second half of fiscal 2023, whereas it reported double-digit growth in the year-ago period. In Europe, organic net sales growth is likely to moderate in the second half of fiscal 2023, as the company laps the on-trade channel re-opening and recovery in the prior year.
DEO anticipates continued organic net sales growth for the Asia Pacific, Latin America, and the Caribbean and Africa in the second half of fiscal 2023, although at a moderated pace than strong growth reported in fiscal 2022.
However, Diageo has been suffering from persistent inflationary pressures induced by higher commodity costs, particularly agave, energy expenses and supply disruptions. As a substantial portion of Diageo’s business comes from international operations, exchange rate fluctuations have been hampering its sales for a while.
Diageo expects to continue its revenue-management initiatives, including pricing actions, throughout fiscal 2023 to overcome the challenging inflationary environment.
In the second half of fiscal 2023, the company expects cost inflation pressure to persist and has been committed to investing in its brands to deliver sustainable growth. DEO expects marketing investment to increase more than sales growth in the second half of fiscal 2023. Our model estimates a 3.7% rise in marketing costs for the second half of fiscal 2023.
Looking for Lucrative Picks? Check These
Here are some companies you may want to consider this earnings season.
Molson Coors TAP has an Earnings ESP of +8.94% and sports a Zacks Rank #1 (Strong Buy) at present. The company is expected to see top and bottom-line growth when it reports second-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.2 billion, which suggests growth of 10.7% from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Molson Coors’ quarterly earnings has moved up 4.7% in the past seven days to $1.55 per share. The consensus mark suggests growth of 30.3% from the year-ago quarter’s reported number. TAP has delivered an earnings surprise of 32.1%, on average, in the trailing four quarters.
e.l.f. Beauty ELF has an Earnings ESP of +1.02% and a Zacks Rank #2 (Buy) at present. The company is expected to witness bottom-line growth when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for ELF’s quarterly earnings has been unchanged in the past 30 days at 58 cents per share. The consensus mark suggests 48.7% growth from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate e.l.f. Beauty’s quarterly revenues is pegged at $184.9 million, which indicates growth of 50.8% from the figure reported in the prior-year quarter. ELF has delivered an earnings surprise of 103.3%, on average, in the trailing four quarters.
Church & Dwight Co. CHD has an Earnings ESP of +1.14% and a Zacks Rank #2 at present. The company is slated to witness top and bottom-line growth when it reports second-quarter 2023 results. The Zacks Consensus Estimate for CHD’s quarterly revenues is pegged at $1.42 billion, which suggests growth of 7.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Church & Dwight’s quarterly earnings has been unchanged in the past 30 days at 79 cents per share, suggesting growth of 4% from the year-ago quarter’s reported number. CHD has delivered an earnings surprise of 9.8%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Free Report: Top EV Battery Stocks to Buy Now
Just-released report reveals 5 stocks to profit as millions of EV batteries are made. Elon Musk tweeted that lithium prices have gone to "insane levels," and they're likely to keep climbing. As a result, a handful of lithium battery stocks are set to skyrocket. Access this report to discover which battery stocks to buy and which to avoid.
Download free today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
e.l.f. Beauty (ELF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo Plc DEO is scheduled to release preliminary results for fiscal 2023 on Aug 1. DEO has been benefiting from its diversified footprint, advantaged portfolio, strong brands and favorable industry trends of premiumization. Diageo plc Price, Consensus and EPS Surprise Diageo plc price-consensus-eps-surprise-chart | Diageo plc Quote Key Factors to Note DEO is anticipated to have retained the strength in its business in fiscal 2023 through constant premiumization efforts, recovery across markets, pricing actions and supply productivity savings.
|
Click to get this free report Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report e.l.f. Diageo Plc DEO is scheduled to release preliminary results for fiscal 2023 on Aug 1. DEO has been benefiting from its diversified footprint, advantaged portfolio, strong brands and favorable industry trends of premiumization.
|
DEO anticipates continued organic net sales growth for the Asia Pacific, Latin America, and the Caribbean and Africa in the second half of fiscal 2023, although at a moderated pace than strong growth reported in fiscal 2022. Click to get this free report Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report e.l.f. Diageo Plc DEO is scheduled to release preliminary results for fiscal 2023 on Aug 1.
|
DEO expects marketing investment to increase more than sales growth in the second half of fiscal 2023. Click to get this free report Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report e.l.f. Diageo Plc DEO is scheduled to release preliminary results for fiscal 2023 on Aug 1.
|
6a9eceee-b580-4629-811b-a155b8dff566
|
727535.0
|
2023-07-19 00:00:00 UTC
|
The 3 Most Undervalued Warren Buffett Stocks to Buy Now: July 2023
|
DEO
|
https://www.nasdaq.com/articles/the-3-most-undervalued-warren-buffett-stocks-to-buy-now%3A-july-2023
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Berkshire Hathaway (NYSE:BRK-A) (NYSE:BRK-B) has been one of the greatest success stories in the history of American capitalism. For good reason, investors love to study undervalued Warren Buffett stocks to know what the genius businessman is up to.
Fortunately, Berkshire Hathaway files regular public statements and it has in fact disclosed all of its holdings through March 31, 2023. This allows us to take a sneak peek at what the conglomerate has been buying and selling lately.
We can learn a lot about long-term investment stocks from studying Buffett’s career. And in poring through Berkshire’s holdings today, these are the three undervalued Buffett stocks that stand out as strong buys for July 2023.
Citigroup (C)
Source: Willy Barton / Shutterstock.com
Citigroup (NYSE:C) is one of America’s large money-center banks. In addition to its massive retail branch footprint, Citigroup has a sizable investment banking operation and has significant operations in overseas markets as well.
Berkshire Hathaway owns more than 55 million shares of Citigroup stock, which adds up to a $2.5 billion position. That’s a big vote of confidence, and it’s especially meaningful as Warren Buffett has a strong reputation and influence in particular with his banking industry investments.
The big appeal is that Citigroup is trading at less than 0.5x book value. That’s a massive discount to where most of the other large American banks trade. Citigroup has had some operational issues and its reputation is fairly lackluster. There’s little denying that. However, the discount seems too large. That’s especially true as shares trade at 7 times earnings and offer a generous 4.5% dividend yield.
HP (HPQ)
Source: Tomasz Wozniak / Shutterstock.com
HP (NYSE:HPQ) is a technology company focused on hardware. The firm is primarily known for its HP computers and laptops along with its various printing solutions. It also runs HP Labs and is involved in business incubation and investment projects.
Investors might think of this as a declining business. PCs are hardly a growth market anymore, and printing has taken a backseat in an age of remote work and virtual document signing. However, HP’s business is holding in there. Revenues are actually up from $58 billion in 2018 to $62 billion in 2022. Profitability remains strong, with the company currently selling for less than 10 times forward earnings.
Berkshire Hathaway has built a massive position in HP, owning 121 million shares of stock. That makes up 12% of the entire company. Analysts may think HP is a company heading toward obsolescence. However, Warren Buffett has made a $4 billion bet on HPQ stock that says otherwise.
Diageo (DEO)
Source: JL Images / Shutterstock
Diageo (NYSE:DEO) is one of the smaller positions in Berkshire Hathaway’s portfolio. Berkshire owns a modest $40 million stake in the spirits and beer giant. However, Berkshire should seriously consider increasing the size of that position.
Diageo shares a lot of similarities with long-time Buffett favorite Coca-Cola (NYSE:KO). Beer and spirits are an accessible luxury that people can afford to buy with regularity. Diageo’s brands are world-class with leading products such as Guinness, Johnnie Walker, Smirnoff, Don Julio, and many more.
Profit margins on these products are tremendous. And it’s hard for new competition to arrive, given the high regulatory thresholds to producing, marketing, and distributing alcohol. Brands have a lifespan measured in centuries; Guinness, for example, has been in business since 1759.
As for valuation, DEO stock has been suffering from a hangover over the past few years with the share price holding roughly flat since 2019. This has come even as earnings continue to grow. As a result, the firm’s forward P/E ratio is down to 21. The last time DEO stock was this cheap was back in late 2016, and shares proceeded to rally 50% over the next year. Things could be set for a similar run now.
On the date of publication, Ian Bezek held a long position in BRK-B and DEO stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.
More From InvestorPlace
Buy This $5 Stock BEFORE This Apple Project Goes Live
Wall Street Titan: Here’s My #1 Stock for 2023
The $1 Investment You MUST Take Advantage of Right Now
It doesn’t matter if you have $500 or $5 million. Do this now.
The post The 3 Most Undervalued Warren Buffett Stocks to Buy Now: July 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
As for valuation, DEO stock has been suffering from a hangover over the past few years with the share price holding roughly flat since 2019. Diageo (DEO) Source: JL Images / Shutterstock Diageo (NYSE:DEO) is one of the smaller positions in Berkshire Hathaway’s portfolio. The last time DEO stock was this cheap was back in late 2016, and shares proceeded to rally 50% over the next year.
|
Diageo (DEO) Source: JL Images / Shutterstock Diageo (NYSE:DEO) is one of the smaller positions in Berkshire Hathaway’s portfolio. As for valuation, DEO stock has been suffering from a hangover over the past few years with the share price holding roughly flat since 2019. The last time DEO stock was this cheap was back in late 2016, and shares proceeded to rally 50% over the next year.
|
Diageo (DEO) Source: JL Images / Shutterstock Diageo (NYSE:DEO) is one of the smaller positions in Berkshire Hathaway’s portfolio. As for valuation, DEO stock has been suffering from a hangover over the past few years with the share price holding roughly flat since 2019. The last time DEO stock was this cheap was back in late 2016, and shares proceeded to rally 50% over the next year.
|
Diageo (DEO) Source: JL Images / Shutterstock Diageo (NYSE:DEO) is one of the smaller positions in Berkshire Hathaway’s portfolio. As for valuation, DEO stock has been suffering from a hangover over the past few years with the share price holding roughly flat since 2019. The last time DEO stock was this cheap was back in late 2016, and shares proceeded to rally 50% over the next year.
|
d559206b-dcaf-4295-8817-d9e580b8a74b
|
727536.0
|
2023-07-12 00:00:00 UTC
|
Here's Why Diageo (DEO) Looks Well-Poised Despite Cost Headwinds
|
DEO
|
https://www.nasdaq.com/articles/heres-why-diageo-deo-looks-well-poised-despite-cost-headwinds
|
nan
|
nan
|
Diageo Plc DEO has been benefiting from its diversified footprint, advantaged portfolio, strong brands and favorable industry trends of premiumization. The company has been witnessing solid business momentum, strong consumer demand and market share gains, which have been boosting its performance. Effective marketing and exceptional commercial execution bode well.
Robust sales growth, organic operating margin expansion and productivity savings have been aiding DEO’s results for a while. Price/mix has been gaining from a positive mix due to robust growth in super-premium-plus brands, particularly scotch, tequila and Chinese white spirits.
Shares of the Zacks Rank #3 (Hold) company have lost 1.3% in the past year compared with the industry’s decline of 1.6%.
However, inflation, stemming from higher glass, ocean freight and transportation costs, has been a headwind. Also, currency headwinds are concerning.
Image Source: Zacks Investment Research
What Keeps Diageo Strong?
DEO is anticipated to retain the strength in its business through constant premiumization efforts, recovery across markets, pricing actions and supply productivity savings. The company’s premium plus brands contributed 57% to net sales growth and 65% to organic sales growth in the first half of fiscal 2023. Its super-premium-plus brands aided organic net sales by 12%.
Diageo is confident about the long-term growth potential of the beverage alcohol sector. It expects to expand its value share by 50% in the sector to 6% by 2030. DEO is on track to deliver on its medium-term guidance for fiscal 2023-2025 of 5-7% organic sales growth and 6-9% organic operating profit growth. Diageo expects to invest strongly in marketing and innovation, and leverage its revenue growth management capabilities, including strategic pricing actions.
DEO is well-poised for growth from effective marketing and extraordinary commercial execution. It is likely to invest strongly in marketing and innovation, and leverage its revenue growth management capabilities, including strategic pricing actions. This is likely to support DEO in the near and long terms.
The company’s margin trends were favorable in the first half of fiscal 2023, thanks to its premiumization efforts, ongoing recovery in markets, pricing actions and disciplined cost management. Organic operating profit benefited from leverage in operating costs, driven by disciplined cost management. Growth was driven by supply productivity savings and price increases, which more than offset the higher cost inflation on the gross margin.
In fiscal 2023, the company anticipates organic operating margin to benefit from continued premiumization trends, everyday efficiencies and operating expense leverage, offset by strong investments in marketing.
For fiscal 2023, DEO anticipates organic net sales growth across North America to normalize through the second half of fiscal 2023, whereas it reported double-digit growth in the year-ago period. In Europe, organic net sales growth is likely to moderate in the second half of fiscal 2023 as the company laps the on-trade channel re-opening and recovery in the prior year. It anticipates continued organic net sales growth for the Asia Pacific, Latin America, and the Caribbean and Africa in the second half of fiscal 2023, although at a moderated pace than strong growth reported in fiscal 2022.
Hurdles to Overcome
Diageo suffers from persistent inflationary pressures from higher commodity costs, particularly agave, energy expenses and supply disruptions. As a substantial portion of the company’s business comes from international operations, exchange rate fluctuations have been hampering its sales for a while.
DEO expects to continue its revenue management initiatives, including pricing actions, throughout fiscal 2023, to overcome the challenging inflationary environment.
In the second half of fiscal 2023, the company expects cost inflation pressure to persist and is committed to investing in its brands to deliver sustainable growth. DEO expects marketing investment to increase more than sales growth in the second half of fiscal 2023.
Stocks to Consider
We highlighted some better-ranked stocks from the beverages space, namely The Duckhorn Portfolio NAPA, Molson Coors TAP and Coca-Cola FEMSA KOF.
Duckhorn currently has a Zacks Rank #2 (Buy). NAPA has a trailing four-quarter earnings surprise of 14.2%, on average. Shares of NAPA have declined 32.4% in the past year.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Duckhorn’s current financial-year sales and earnings suggests growth of 8.3% and 4.8%, respectively, from the year-ago period's reported figures. NAPA has an expected EPS growth rate of 6.6% for three-five years.
Molson Coors currently carries a Zacks Rank #2. The company has an expected EPS growth rate of 4.3% for three to five years. Shares of TAP have rallied 10.6% in the past year.
The Zacks Consensus Estimate for Molson Coors’ sales and earnings per share for the current financial year suggests growth of 5.3% and 10.2%, respectively, from the year-ago period’s reported figures. TAP has a trailing four-quarter negative earnings surprise of 32.1%, on average.
Coca-Cola FEMSA has a trailing four-quarter earnings surprise of 33.8%, on average. It currently carries a Zacks Rank #2. Shares of KOF have rallied 50.4% in the past year.
The Zacks Consensus Estimate for Coca-Cola FEMSA’s current financial-year sales and earnings suggests growth of 19.5% and 14.6%, respectively, from the year-ago period's reported figures. KOF has an expected EPS growth rate of 13.5% for three to five years.
This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation
Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
Yes, I Want to Help Protect My Portfolio Against Inflation >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Coca Cola Femsa S.A.B. de C.V. (KOF) : Free Stock Analysis Report
The Duckhorn Portfolio, Inc. (NAPA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo Plc DEO has been benefiting from its diversified footprint, advantaged portfolio, strong brands and favorable industry trends of premiumization. Robust sales growth, organic operating margin expansion and productivity savings have been aiding DEO’s results for a while. DEO is anticipated to retain the strength in its business through constant premiumization efforts, recovery across markets, pricing actions and supply productivity savings.
|
Click to get this free report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Coca Cola Femsa S.A.B. Diageo Plc DEO has been benefiting from its diversified footprint, advantaged portfolio, strong brands and favorable industry trends of premiumization. Robust sales growth, organic operating margin expansion and productivity savings have been aiding DEO’s results for a while.
|
For fiscal 2023, DEO anticipates organic net sales growth across North America to normalize through the second half of fiscal 2023, whereas it reported double-digit growth in the year-ago period. Diageo Plc DEO has been benefiting from its diversified footprint, advantaged portfolio, strong brands and favorable industry trends of premiumization. Robust sales growth, organic operating margin expansion and productivity savings have been aiding DEO’s results for a while.
|
DEO expects marketing investment to increase more than sales growth in the second half of fiscal 2023. Diageo Plc DEO has been benefiting from its diversified footprint, advantaged portfolio, strong brands and favorable industry trends of premiumization. Robust sales growth, organic operating margin expansion and productivity savings have been aiding DEO’s results for a while.
|
f4bd1735-b859-4e2b-a856-e510b5e0bede
|
727537.0
|
2023-07-11 00:00:00 UTC
|
DEO Quantitative Stock Analysis
|
DEO
|
https://www.nasdaq.com/articles/deo-quantitative-stock-analysis-0
|
nan
|
nan
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
DIAGEO PLC (ADR) (DEO) is a large-cap growth stock in the Beverages (Alcoholic) industry. The rating using this strategy is 75% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: FAIL
Detailed Analysis of DIAGEO PLC (ADR)
DEO Guru Analysis
DEO Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. DIAGEO PLC (ADR) (DEO) is a large-cap growth stock in the Beverages (Alcoholic) industry.
|
Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO).
|
Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO).
|
Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO).
|
fcbb69a0-115f-4452-9a07-04f4900832b2
|
727538.0
|
2023-07-10 00:00:00 UTC
|
The Zacks Analyst Blog Highlights BHP Group, AstraZeneca, The Boeing, Diageo and General Mills
|
DEO
|
https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-bhp-group-astrazeneca-the-boeing-diageo-and-general
|
nan
|
nan
|
For Immediate Release
Chicago, IL – July 10, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: BHP Group Limited BHP, AstraZeneca PLC AZN, The Boeing Company BA, Diageo plc DEO and General Mills, Inc. GIS
Here are highlights from Friday’s Analyst Blog:
Top Analyst Reports for BHP Group, AstraZeneca and Boeing
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including BHP Group Limited, AstraZeneca PLC and The Boeing Company. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Shares of BHP Group have outperformed the Zacks Mining - Miscellaneous industry over the past year (+19.1% vs. +6.3%) as the company's leverage to the prospect of Chinese fiscal stimulus through its iron ore production outlook.
The company's iron ore production guidance for fiscal 2023 is 249-260 Mt, indicating 1% year-over-year growth at the midpoint. Iron ore prices had earlier lost steam on weak demand in China due to the slump in property investment while supply prospects remained strong.
However, the possibility that the Chinese government will provide stimulus measures for its construction sector has helped lift up iron ore prices lately. Going forward, iron ore prices are expected to be supported by demand in the automotive sector, infrastructure and housing market.
Copper and nickel prices will also be fueled by growing demand for electric vehicles. BHP's investment in growth projects with focus on commodities like copper, nickel and potash will aid growth. Its efforts to make operations more efficient through technology adoption will drive earnings.
(You can read the full research report on BHP Group here >>>)
AstraZeneca shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-0.4% vs. +8.6%). The company's diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit. Sales are slowing down in its key market, China. Estimate movements have been mixed ahead of Q2 results.
Nevertheless, AstraZeneca has reported impressive earnings surprise in recent quarters. Its key drugs, mainly cancer medicines, Lynparza, Tagrisso and Imfinzi should keep driving revenues. Its pipeline is strong with several phase III data readouts lined up for 2023.
It has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. Cost-cutting efforts should drive earnings. The Alexion buyout strengthened its immunology franchise, adding several drugs that are boosting its top line.
(You can read the full research report on AstraZeneca here >>>)
Shares of Boeing have outperformed the Zacks Aerospace - Defense industry over the past year (+53.2% vs. +0.7%). The company remains the largest aircraft manufacturer in the United States, in terms of revenues, orders and deliveries. Lately, the company has been witnessing a solid recovery in its commercial business.
During the first quarter, the company booked 107 net commercial airplane orders. The U.S. government's inclination toward strengthening the nation's defense system should also boost Boeing's growth. The company holds a strong solvency position in the near term.
However, its 737 MAX program remains a cause of concern in China, thereby impacting its expectation of delivery timing and future gradual production rate increases. Boeing continues to incur notable abnormal production cost in relation to production quality issues for 787 jets, which may hurt its future results.
(You can read the full research report on Boeing here >>>)
Other noteworthy reports we are featuring today include Diageo plc and General Mills, Inc..
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Boeing Company (BA) : Free Stock Analysis Report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report
General Mills, Inc. (GIS) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Stocks recently featured in the blog include: BHP Group Limited BHP, AstraZeneca PLC AZN, The Boeing Company BA, Diageo plc DEO and General Mills, Inc. GIS Here are highlights from Friday’s Analyst Blog: Top Analyst Reports for BHP Group, AstraZeneca and Boeing The Zacks Research Daily presents the best research output of our analyst team. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report AstraZeneca PLC (AZN) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report General Mills, Inc. (GIS) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of BHP Group have outperformed the Zacks Mining - Miscellaneous industry over the past year (+19.1% vs. +6.3%) as the company's leverage to the prospect of Chinese fiscal stimulus through its iron ore production outlook.
|
Stocks recently featured in the blog include: BHP Group Limited BHP, AstraZeneca PLC AZN, The Boeing Company BA, Diageo plc DEO and General Mills, Inc. GIS Here are highlights from Friday’s Analyst Blog: Top Analyst Reports for BHP Group, AstraZeneca and Boeing The Zacks Research Daily presents the best research output of our analyst team. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report AstraZeneca PLC (AZN) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report General Mills, Inc. (GIS) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including BHP Group Limited, AstraZeneca PLC and The Boeing Company.
|
Stocks recently featured in the blog include: BHP Group Limited BHP, AstraZeneca PLC AZN, The Boeing Company BA, Diageo plc DEO and General Mills, Inc. GIS Here are highlights from Friday’s Analyst Blog: Top Analyst Reports for BHP Group, AstraZeneca and Boeing The Zacks Research Daily presents the best research output of our analyst team. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report AstraZeneca PLC (AZN) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report General Mills, Inc. (GIS) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including BHP Group Limited, AstraZeneca PLC and The Boeing Company.
|
Stocks recently featured in the blog include: BHP Group Limited BHP, AstraZeneca PLC AZN, The Boeing Company BA, Diageo plc DEO and General Mills, Inc. GIS Here are highlights from Friday’s Analyst Blog: Top Analyst Reports for BHP Group, AstraZeneca and Boeing The Zacks Research Daily presents the best research output of our analyst team. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report AstraZeneca PLC (AZN) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report General Mills, Inc. (GIS) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. You can see all of today's research reports here >>>
|
f61b2ae6-7e3f-4d68-8d4a-95cc79a4873f
|
727539.0
|
2023-07-07 00:00:00 UTC
|
Top Analyst Reports for BHP Group, AstraZeneca & Boeing
|
DEO
|
https://www.nasdaq.com/articles/top-analyst-reports-for-bhp-group-astrazeneca-boeing
|
nan
|
nan
|
Friday, July 7, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including BHP Group Limited (BHP), AstraZeneca PLC (AZN) and The Boeing Company (BA). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of BHP Group have outperformed the Zacks Mining - Miscellaneous industry over the past year (+19.1% vs. +6.3%) as the company's leverage to the prospect of Chinese fiscal stimulus through its iron ore production outlook.
The company’s iron ore production guidance for fiscal 2023 is 249-260 Mt, indicating 1% year-over-year growth at the midpoint. Iron ore prices had earlier lost steam on weak demand in China due to the slump in property investment while supply prospects remained strong.
However, the possibility that the Chinese government will provide stimulus measures for its construction sector has helped lift up iron ore prices lately. Going forward, iron ore prices are expected to be supported by demand in the automotive sector, infrastructure and housing market.
Copper and nickel prices will also be fueled by growing demand for electric vehicles. BHP’s investment in growth projects with focus on commodities like copper, nickel and potash will aid growth. Its efforts to make operations more efficient through technology adoption will drive earnings.
(You can read the full research report on BHP Group here >>>)
AstraZeneca shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-0.4% vs. +8.6%). The company’s diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit. Sales are slowing down in its key market, China. Estimate movements have been mixed ahead of Q2 results.
Nevertheless, AstraZeneca has reported impressive earnings surprise in recent quarters. Its key drugs, mainly cancer medicines, Lynparza, Tagrisso and Imfinzi should keep driving revenues. Its pipeline is strong with several phase III data readouts lined up for 2023.
It has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. Cost-cutting efforts should drive earnings. The Alexion buyout strengthened its immunology franchise, adding several drugs that are boosting its top line.
(You can read the full research report on AstraZeneca here >>>)
Shares of Boeing have outperformed the Zacks Aerospace - Defense industry over the past year (+53.2% vs. +0.7%). The company remains the largest aircraft manufacturer in the United States, in terms of revenues, orders and deliveries. Lately, the company has been witnessing a solid recovery in its commercial business.
During the first quarter, the company booked 107 net commercial airplane orders. The U.S. government’s inclination toward strengthening the nation’s defense system should also boost Boeing’s growth. The company holds a strong solvency position in the near term.
However, its 737 MAX program remains a cause of concern in China, thereby impacting its expectation of delivery timing and future gradual production rate increases. Boeing continues to incur notable abnormal production cost in relation to production quality issues for 787 jets, which may hurt its future results.
(You can read the full research report on Boeing here >>>)
Other noteworthy reports we are featuring today include Diageo plc (DEO), Arthur J. Gallagher & Co. (AJG) and General Mills, Inc. (GIS).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
BHP Group (BHP) Bets on Operation Efficiency Amid High Costs
Cancer Drugs Aid AstraZeneca (AZN) Sales; Pipeline Strong
Military Business Aids Boeing (BA), 787 Program Issue Woes
Featured Reports
Diageo's (DEO) Robust Pricing & Premiumization Aid Margins
Per the Zacks analyst, Diageo has been witnessing robust margin trends driven by its premiumization efforts and pricing actions. It expects continued organic operating margin growth in FY23.
Arthur J. Gallagher (AJG) Buyouts Aid, Cost Woes Linger
Per the Zacks analyst, a number of acquisitions have helped Arthur J. Gallagher to enhance its capabilities and drive growth. However, elevated expenses remain an overhang.
General Mills (GIS) Gains From Focus on Accelerate Strategy
Per the Zacks analyst, General Mills is gaining from its Accelerate strategy, as part of which it is competing efficiently via brand building, investing in saving initiatives and reshaping portfolio.
Momentum in Cash App & Square Ecosystems Benefits Block (SQ)
Per the Zacks analyst, Block is benefiting from strong Cash App engagement and its growing active customer base. Further, the company's growing momentum across Square Ecosystem remains a positive.
Electronic Focus Aid Interactive Brokers (IBKR), Costs a Woe
Per the Zacks analyst, development of proprietary software and focus on the Electronic Brokerage segment will aid Interactive Brokers. Higher costs due to technology upgrades will likely hurt profits.
Schneider (SNDR) Rides on Dividends Amid Rising Expenses
The Zacks analyst likes the shareholder-friendly measures adopted by Schneider. However, rising capital expenditures are concerning as they are likely to keep the bottom line under pressure.
Tandem (TNDM) Gains from Expansion Efforts, Rising Costs Ail
The Zacks analyst is impressed with Tandem's (TNDM) efforts to undertake innovation and develop products to cater to consumers' and clinical needs globally. Yet, mounting expenses pose concerns.
New Upgrades
Jabil (JBL) Rides on Solid Demand Trends, Concerted AI Focus
Per the Zacks analyst, Jabil will likely gain from solid momentum in automotive, health care and industrial business. Efficient working capital management and AI integration are tailwinds.
Build-To-Order Model & Expansion Efforts Aid Toll Brothers (TOL)
Per the Zacks analyst, Toll Brothers is likely to benefit from its Build-To-Order model and expansion efforts. Also, limited competition in the luxury housing market is added positive.
Cost-Cutting Actions, Solid Order Trends Aid Apogee (APOG)
Per the Zacks analyst, Apogee's efforts to cut costs, and improve productivity and efficiency will drive its growth. Strong project pipeline and order trends will continue to boost revenues.
New Downgrades
Rising Rates, Seasonality of Business Ail MDU Resources (MDU)
Per the Zacks analyst, MDU Resources' margins can be impacted by rising interest rates. Seasonality of business operations may significantly reduce demand and adversely impact its overall performance.
Upstream Budget Tightness to Hurt Helmerich & Payne (HP)
The Zacks analyst believes that the tightness in the upstream companies' investment budget is likely to continue through this year, which is expected to weigh on Helmerich & Payne's revenues.
Sluggish Ad Demand & Stiff Competition Hurt Paramount (PARA)
Per the Zacks analyst, sluggishness in advertising demand is hurting Paramount Global and stiff competition from Netflix, Disney+, HBO Max and Peacock are expected to hurt prospects in the near term.
Free Report: Top EV Battery Stocks to Buy Now
Just-released report reveals 5 stocks to profit as millions of EV batteries are made. Elon Musk tweeted that lithium prices have gone to "insane levels," and they're likely to keep climbing. As a result, a handful of lithium battery stocks are set to skyrocket. Access this report to discover which battery stocks to buy and which to avoid.
Download free today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Boeing Company (BA) : Free Stock Analysis Report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report
General Mills, Inc. (GIS) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Other noteworthy reports we are featuring today include Diageo plc (DEO), Arthur J. Gallagher & Co. (AJG) and General Mills, Inc. (GIS). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read BHP Group (BHP) Bets on Operation Efficiency Amid High Costs Cancer Drugs Aid AstraZeneca (AZN) Sales; Pipeline Strong Military Business Aids Boeing (BA), 787 Program Issue Woes Featured Reports Diageo's (DEO) Robust Pricing & Premiumization Aid Margins Per the Zacks analyst, Diageo has been witnessing robust margin trends driven by its premiumization efforts and pricing actions. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report AstraZeneca PLC (AZN) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report General Mills, Inc. (GIS) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read BHP Group (BHP) Bets on Operation Efficiency Amid High Costs Cancer Drugs Aid AstraZeneca (AZN) Sales; Pipeline Strong Military Business Aids Boeing (BA), 787 Program Issue Woes Featured Reports Diageo's (DEO) Robust Pricing & Premiumization Aid Margins Per the Zacks analyst, Diageo has been witnessing robust margin trends driven by its premiumization efforts and pricing actions. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report AstraZeneca PLC (AZN) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report General Mills, Inc. (GIS) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report To read this article on Zacks.com click here. Other noteworthy reports we are featuring today include Diageo plc (DEO), Arthur J. Gallagher & Co. (AJG) and General Mills, Inc. (GIS).
|
If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read BHP Group (BHP) Bets on Operation Efficiency Amid High Costs Cancer Drugs Aid AstraZeneca (AZN) Sales; Pipeline Strong Military Business Aids Boeing (BA), 787 Program Issue Woes Featured Reports Diageo's (DEO) Robust Pricing & Premiumization Aid Margins Per the Zacks analyst, Diageo has been witnessing robust margin trends driven by its premiumization efforts and pricing actions. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report AstraZeneca PLC (AZN) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report General Mills, Inc. (GIS) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report To read this article on Zacks.com click here. Other noteworthy reports we are featuring today include Diageo plc (DEO), Arthur J. Gallagher & Co. (AJG) and General Mills, Inc. (GIS).
|
Other noteworthy reports we are featuring today include Diageo plc (DEO), Arthur J. Gallagher & Co. (AJG) and General Mills, Inc. (GIS). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read BHP Group (BHP) Bets on Operation Efficiency Amid High Costs Cancer Drugs Aid AstraZeneca (AZN) Sales; Pipeline Strong Military Business Aids Boeing (BA), 787 Program Issue Woes Featured Reports Diageo's (DEO) Robust Pricing & Premiumization Aid Margins Per the Zacks analyst, Diageo has been witnessing robust margin trends driven by its premiumization efforts and pricing actions. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report AstraZeneca PLC (AZN) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report General Mills, Inc. (GIS) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
e4833817-1bbd-4ee7-b23d-5b2a1c4416b3
|
727540.0
|
2023-07-06 00:00:00 UTC
|
PID's Underlying Holdings Imply 10% Gain Potential
|
DEO
|
https://www.nasdaq.com/articles/pids-underlying-holdings-imply-10-gain-potential
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco International Dividend Achievers ETF (Symbol: PID), we found that the implied analyst target price for the ETF based upon its underlying holdings is $19.74 per unit.
With PID trading at a recent price near $18.01 per unit, that means that analysts see 9.60% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PID's underlying holdings with notable upside to their analyst target prices are CRH plc (Symbol: CRH), Novartis AG Basel (Symbol: NVS), and Diageo plc (Symbol: DEO). Although CRH has traded at a recent price of $54.77/share, the average analyst target is 19.13% higher at $65.25/share. Similarly, NVS has 15.21% upside from the recent share price of $98.95 if the average analyst target price of $114.00/share is reached, and analysts on average are expecting DEO to reach a target price of $193.30/share, which is 11.80% above the recent price of $172.90. Below is a twelve month price history chart comparing the stock performance of CRH, NVS, and DEO:
Combined, CRH, NVS, and DEO represent 6.30% of the Invesco International Dividend Achievers ETF. Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco International Dividend Achievers ETF PID $18.01 $19.74 9.60%
CRH plc CRH $54.77 $65.25 19.13%
Novartis AG Basel NVS $98.95 $114.00 15.21%
Diageo plc DEO $172.90 $193.30 11.80%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
DTIL shares outstanding history
Top Ten Hedge Funds Holding TRMT
BRMK shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Invesco International Dividend Achievers ETF PID $18.01 $19.74 9.60% CRH plc CRH $54.77 $65.25 19.13% Novartis AG Basel NVS $98.95 $114.00 15.21% Diageo plc DEO $172.90 $193.30 11.80% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of PID's underlying holdings with notable upside to their analyst target prices are CRH plc (Symbol: CRH), Novartis AG Basel (Symbol: NVS), and Diageo plc (Symbol: DEO). Similarly, NVS has 15.21% upside from the recent share price of $98.95 if the average analyst target price of $114.00/share is reached, and analysts on average are expecting DEO to reach a target price of $193.30/share, which is 11.80% above the recent price of $172.90.
|
Three of PID's underlying holdings with notable upside to their analyst target prices are CRH plc (Symbol: CRH), Novartis AG Basel (Symbol: NVS), and Diageo plc (Symbol: DEO). Below is a twelve month price history chart comparing the stock performance of CRH, NVS, and DEO: Combined, CRH, NVS, and DEO represent 6.30% of the Invesco International Dividend Achievers ETF. Invesco International Dividend Achievers ETF PID $18.01 $19.74 9.60% CRH plc CRH $54.77 $65.25 19.13% Novartis AG Basel NVS $98.95 $114.00 15.21% Diageo plc DEO $172.90 $193.30 11.80% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
|
Similarly, NVS has 15.21% upside from the recent share price of $98.95 if the average analyst target price of $114.00/share is reached, and analysts on average are expecting DEO to reach a target price of $193.30/share, which is 11.80% above the recent price of $172.90. Three of PID's underlying holdings with notable upside to their analyst target prices are CRH plc (Symbol: CRH), Novartis AG Basel (Symbol: NVS), and Diageo plc (Symbol: DEO). Below is a twelve month price history chart comparing the stock performance of CRH, NVS, and DEO: Combined, CRH, NVS, and DEO represent 6.30% of the Invesco International Dividend Achievers ETF.
|
Three of PID's underlying holdings with notable upside to their analyst target prices are CRH plc (Symbol: CRH), Novartis AG Basel (Symbol: NVS), and Diageo plc (Symbol: DEO). Similarly, NVS has 15.21% upside from the recent share price of $98.95 if the average analyst target price of $114.00/share is reached, and analysts on average are expecting DEO to reach a target price of $193.30/share, which is 11.80% above the recent price of $172.90. Below is a twelve month price history chart comparing the stock performance of CRH, NVS, and DEO: Combined, CRH, NVS, and DEO represent 6.30% of the Invesco International Dividend Achievers ETF.
|
db6d64a2-737b-4df8-a3e2-fa9569e1da4d
|
727541.0
|
2023-07-03 00:00:00 UTC
|
The Fourth of July in 2023: A Celebration of Economic Resilience
|
DEO
|
https://www.nasdaq.com/articles/the-fourth-of-july-in-2023%3A-a-celebration-of-economic-resilience
|
nan
|
nan
|
As the United States is going to celebrate Independence Day on the Fourth of July in 2023, the celebrations should not only be marked by fireworks and barbecues but also by an easing of inflation, ebbing recessionary fears and resilient consumers.
Best Economic Developments Before July 4
The Personal Consumption Expenditures (PCE) index advanced 3.8% in May versus April's 4.3%, and excluding volatile food and energy. The core PCE index gained 0.3%, down from 0.4% in the previous month. The U.S. economy grew by an annualized 2% on quarter in the first quarter of 2023, way higher than 1.3% in the second estimate, and forecast of 1.4%, per tradingecnomics. Consumers’ personal savings rate was 4.6% in May 2023, up from 4.3% in April 2023.
How Consumers Plan to Celebrating Independence Day in 2023
The National Retail Federation (NRF) reported that 87% of Americans plan to celebrate the holiday, the highest number since before the coronavirus pandemic. About 32% of those participating in celebrations intend to buy more patriotic merchandise.
The pattern of celebration across all categories has either risen or stayed consistent with the pre-pandemic levels. According to NRF, there's an increase in those planning to partake in cookouts or picnics, with 65% planning to do so (61% was reported in 2019), spending an average of $93.34 on food per person. Overall grocery prices are up 5.8% from a year ago, but the pace of inflation has slowed considerably.
The proportion of people intending to enjoy fireworks or community events remains steady at 40%, matching the 2019 rate. There's a rise in the number of people planning to vacation, standing at about 14%. Roughly 13% of celebrants are planning to attend a parade, showing a slight increase from 11% in 2019.
How to Profit From This Celebration?
Certain sectors and industries that can see increased activity around the 4th of July holiday are discussed below.
Consumer Discretionary Sector
Companies, which are selling items popular for the 4th of July celebrations, such as barbecue grills, outdoor furniture and American flag-themed items, may see increased sales. This can benefit big box stores like Walmart WMT and Target TGT or home improvement companies like Home Depot HD and Lowe's LOW.
Consumer Staples Sector
Companies that sell popular picnic and barbecue foods should also see a boost. This may include companies like Tyson Foods TSN, Kraft Heinz KHC, Constellation Brands STZ and Diageo plc DEO.
Travel and Leisure Sector
With many people taking trips for the 4th of July weekend, travel-related companies (hotels, airlines, online travel agencies) have the potential to benefit. The American Automobile Association projected that 50.7 million Americans planned to travel 50 miles or more from home during the holiday weekend.
This suggests an increase of 2.1 million people from that reported in 2022 and tops the previous record set in 2019. This increase in travel was facilitated by significantly lower gas prices. Some examples are Booking Holdings BKNG, Marriott International MAR and Southwest Airlines LUV.
Entertainment Sector
Amusement parks, movie theaters and other entertainment venues should also witness increased traffic on this event. Companies like Disney DIS and Six Flags SIX are likely to do solid business.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Marriott International, Inc. (MAR) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Tyson Foods, Inc. (TSN) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Constellation Brands Inc (STZ) : Free Stock Analysis Report
Six Flags Entertainment Corporation New (SIX) : Free Stock Analysis Report
Kraft Heinz Company (KHC) : Free Stock Analysis Report
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
This may include companies like Tyson Foods TSN, Kraft Heinz KHC, Constellation Brands STZ and Diageo plc DEO. Click to get this free report Marriott International, Inc. (MAR) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Tyson Foods, Inc. (TSN) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Constellation Brands Inc (STZ) : Free Stock Analysis Report Six Flags Entertainment Corporation New (SIX) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. Best Economic Developments Before July 4 The Personal Consumption Expenditures (PCE) index advanced 3.8% in May versus April's 4.3%, and excluding volatile food and energy.
|
This may include companies like Tyson Foods TSN, Kraft Heinz KHC, Constellation Brands STZ and Diageo plc DEO. Click to get this free report Marriott International, Inc. (MAR) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Tyson Foods, Inc. (TSN) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Constellation Brands Inc (STZ) : Free Stock Analysis Report Six Flags Entertainment Corporation New (SIX) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some examples are Booking Holdings BKNG, Marriott International MAR and Southwest Airlines LUV.
|
Click to get this free report Marriott International, Inc. (MAR) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Tyson Foods, Inc. (TSN) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Constellation Brands Inc (STZ) : Free Stock Analysis Report Six Flags Entertainment Corporation New (SIX) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. This may include companies like Tyson Foods TSN, Kraft Heinz KHC, Constellation Brands STZ and Diageo plc DEO. How Consumers Plan to Celebrating Independence Day in 2023 The National Retail Federation (NRF) reported that 87% of Americans plan to celebrate the holiday, the highest number since before the coronavirus pandemic.
|
Click to get this free report Marriott International, Inc. (MAR) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Tyson Foods, Inc. (TSN) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Constellation Brands Inc (STZ) : Free Stock Analysis Report Six Flags Entertainment Corporation New (SIX) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. This may include companies like Tyson Foods TSN, Kraft Heinz KHC, Constellation Brands STZ and Diageo plc DEO. How Consumers Plan to Celebrating Independence Day in 2023 The National Retail Federation (NRF) reported that 87% of Americans plan to celebrate the holiday, the highest number since before the coronavirus pandemic.
|
ea4d68dd-7f4b-4fa3-af1b-24a53d5472e6
|
727542.0
|
2023-06-16 00:00:00 UTC
|
CCU vs. DEO: Which Stock Is the Better Value Option?
|
DEO
|
https://www.nasdaq.com/articles/ccu-vs.-deo%3A-which-stock-is-the-better-value-option
|
nan
|
nan
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Diageo (DEO). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Cervecerias Unidas is sporting a Zacks Rank of #1 (Strong Buy), while Diageo has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CCU has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CCU currently has a forward P/E ratio of 12.55, while DEO has a forward P/E of 21.18. We also note that CCU has a PEG ratio of 0.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DEO currently has a PEG ratio of 2.89.
Another notable valuation metric for CCU is its P/B ratio of 1.76. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DEO has a P/B of 8.52.
These are just a few of the metrics contributing to CCU's Value grade of B and DEO's Value grade of C.
CCU sticks out from DEO in both our Zacks Rank and Style Scores models, so value investors will likely feel that CCU is the better option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Compania Cervecerias Unidas, S.A. (CCU) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Diageo (DEO). CCU currently has a forward P/E ratio of 12.55, while DEO has a forward P/E of 21.18. DEO currently has a PEG ratio of 2.89.
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Diageo (DEO). These are just a few of the metrics contributing to CCU's Value grade of B and DEO's Value grade of C. CCU sticks out from DEO in both our Zacks Rank and Style Scores models, so value investors will likely feel that CCU is the better option right now. Click to get this free report Compania Cervecerias Unidas, S.A. (CCU) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
These are just a few of the metrics contributing to CCU's Value grade of B and DEO's Value grade of C. CCU sticks out from DEO in both our Zacks Rank and Style Scores models, so value investors will likely feel that CCU is the better option right now. Click to get this free report Compania Cervecerias Unidas, S.A. (CCU) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Diageo (DEO).
|
DEO currently has a PEG ratio of 2.89. These are just a few of the metrics contributing to CCU's Value grade of B and DEO's Value grade of C. CCU sticks out from DEO in both our Zacks Rank and Style Scores models, so value investors will likely feel that CCU is the better option right now. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Diageo (DEO).
|
56e2a27c-f2d2-4061-8935-4c12a152b1ef
|
727543.0
|
2023-06-14 00:00:00 UTC
|
3 ‘Sinful’ Stocks That Have Heavenly Profits
|
DEO
|
https://www.nasdaq.com/articles/3-sinful-stocks-that-have-heavenly-profits
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Over the years, investors have become less comfortable with certain so-called sin stocks. However, these sinful stocks can produce heavenly returns for patience investors who hold through the turbulence. So what are some of the best sinful stocks?
Sin stocks trend to command lower valuations and oftentimes have notable dividend yields. That said, it depends on how you classify a sinful stock. These can include liquor companies, tobacco firms, oil producers and fast food restaurants.
Some investors will find all of these names offensive. Others won’t take issue with them at all. Our objective here isn’t to judge these investors or these businesses, but to simply evaluate them for what they are.
With that in mind, let’s look at some high profit sinful stocks.
McDonald’s (MCD)
Source: Vytautas Kielaitis / Shutterstock
Fast food seems like the least offensive sin stock category. While some investors may take issue with these firms from multiple perspectives — climate change, health, etc. — many consumers would disagree.
When we look at McDonald’s (NYSE:MCD) we find a profit center, as the company continues to mint cash and generate impressive results.
Although the overall market has improved a great deal over the last month or two, McDonald’s has been a leader in consistency. Shares hit an all-time high in early May, but also hit a new high in October 2022 when there was much more uncertainty in the broader market. Lastly, it began grinding out new-high after new-high in early April.
The company is forecast to generate roughly 8% revenue growth this year and 7% growth in 2024, while churning out roughly 10% earnings growth in both years. That does leave shares trading at about 25 times earnings, but given the momentum in the stock, it’s no surprise.
Constellation Brands (STZ)
Source: IgorGolovniov / Shutterstock
If you want a little more bourbon, investors should look at Brown Forman (NYSE:BF-B,NYSE:BF-A). If they want more broad-based spirits, perhaps consider Diageo (NYSE:DEO). However, for others maybe they will consider Constellation Brands (NYSE:STZ).
The company commands a $44.5 billion market capitalization and pays out a dividend yield of about 1.5%. That makes it the smallest name on this list with the lowest yield.
It sports a portfolio filled with alcohol-related products, including beer, wine and liquor. It’s responsible for beer labels such as Modelo, Corona and Pacifica, wine labels like Kim Crawford and Robert Mondavi, and liquor like Svedka, Casa Noble and High West.
Lastly, with a sizable investment in Canopy Growth (NASDAQ:CGC), Constellation Brands has the added kicker of cannabis. Although that stock has struggled, Constellation has a big position in a potentially large future industry.
Altria (MO)
Source: viewimage / Shutterstock.com
At times, high-yield dividend stocks can act as a red flag for investors. That’s particularly when the yield is as high as Altria’s (NYSE:MO), at 8.3%. However, there’s more than meets the eye here.
In August, the company gave a 4.4% boost to its payout. While not massive necessarily, it speaks to management’s confidence in the firm’s earnings and cash flow. That’s as the “increase marks the 57th dividend increase in the past 53 years.”
Altria could have simply passed along a ~1% increase to its dividend just to keep its streak alive. Further, doing so at its current valuation would have made it even easier.
Shares trade at just 9 times earnings. That’s despite consensus expectations calling for decent (albeit slow) growth. Despite estimates of sub-2% revenue growth this year and next year, analysts expect Altria to grow earnings 3% this year and 4% next year.
It’s not crazy growth, but an 8.3% dividend yield that’s been consistently paid out, paired with a stock at sub-10 times earnings may be enough to attract some income-oriented investors.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
More From InvestorPlace
Buy This $5 Stock BEFORE This Apple Project Goes Live
Did Elon Musk Just Trigger a New Netscape Moment?
The $1 Investment You MUST Take Advantage of Right Now
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post 3 ‘Sinful’ Stocks That Have Heavenly Profits appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
If they want more broad-based spirits, perhaps consider Diageo (NYSE:DEO). When we look at McDonald’s (NYSE:MCD) we find a profit center, as the company continues to mint cash and generate impressive results. It’s not crazy growth, but an 8.3% dividend yield that’s been consistently paid out, paired with a stock at sub-10 times earnings may be enough to attract some income-oriented investors.
|
If they want more broad-based spirits, perhaps consider Diageo (NYSE:DEO). These can include liquor companies, tobacco firms, oil producers and fast food restaurants. Constellation Brands (STZ) Source: IgorGolovniov / Shutterstock If you want a little more bourbon, investors should look at Brown Forman (NYSE:BF-B,NYSE:BF-A).
|
If they want more broad-based spirits, perhaps consider Diageo (NYSE:DEO). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Over the years, investors have become less comfortable with certain so-called sin stocks. The company is forecast to generate roughly 8% revenue growth this year and 7% growth in 2024, while churning out roughly 10% earnings growth in both years.
|
If they want more broad-based spirits, perhaps consider Diageo (NYSE:DEO). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Over the years, investors have become less comfortable with certain so-called sin stocks. That’s particularly when the yield is as high as Altria’s (NYSE:MO), at 8.3%.
|
995f399b-ae50-4623-bde3-512234949aea
|
727544.0
|
2023-06-13 00:00:00 UTC
|
DEO Quantitative Stock Analysis
|
DEO
|
https://www.nasdaq.com/articles/deo-quantitative-stock-analysis
|
nan
|
nan
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
DIAGEO PLC (ADR) (DEO) is a large-cap growth stock in the Beverages (Alcoholic) industry. The rating using this strategy is 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: FAIL
Detailed Analysis of DIAGEO PLC (ADR)
DEO Guru Analysis
DEO Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. DIAGEO PLC (ADR) (DEO) is a large-cap growth stock in the Beverages (Alcoholic) industry.
|
Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO).
|
Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO).
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return.
|
c44f9239-e142-4f1d-acd3-51e7ce1afef1
|
727545.0
|
2023-06-05 00:00:00 UTC
|
Consumer Sector Update for 06/05/2023: DEO, PZZA, MMMB, XLY, XLP
|
DEO
|
https://www.nasdaq.com/articles/consumer-sector-update-for-06-05-2023%3A-deo-pzza-mmmb-xly-xlp
|
nan
|
nan
|
Consumer stocks were mixed pre-bell Monday with the Consumer Discretionary Select Sector SPDR Fund (XLY) recently 0.15% higher and the Consumer Staples Select Sector SPDR Fund (XLP) down a slight 0.05%.
Diageo (DEO) named Debra Crew as interim chief executive, effective immediately, ahead of her appointment as CEO on July 1. Diageo was over 1% lower recently.
Papa John's International (PZZA) said it has acquired restaurants in the UK that were previously operated by Drake Food Service International's M25 division. Financial terms weren't disclosed. Papa John's International was marginally lower in recent premarket activity.
MamaMancini's Holdings (MMMB) has filed a registration statement covering the potential sale of up to about 7.2 million shares on behalf of its former chief executive, Carl Wolf. MamaMancini's Holdings was 0.6% higher in premarket trading.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo (DEO) named Debra Crew as interim chief executive, effective immediately, ahead of her appointment as CEO on July 1. Papa John's International was marginally lower in recent premarket activity. MamaMancini's Holdings (MMMB) has filed a registration statement covering the potential sale of up to about 7.2 million shares on behalf of its former chief executive, Carl Wolf.
|
Diageo (DEO) named Debra Crew as interim chief executive, effective immediately, ahead of her appointment as CEO on July 1. Consumer stocks were mixed pre-bell Monday with the Consumer Discretionary Select Sector SPDR Fund (XLY) recently 0.15% higher and the Consumer Staples Select Sector SPDR Fund (XLP) down a slight 0.05%. Papa John's International (PZZA) said it has acquired restaurants in the UK that were previously operated by Drake Food Service International's M25 division.
|
Diageo (DEO) named Debra Crew as interim chief executive, effective immediately, ahead of her appointment as CEO on July 1. Consumer stocks were mixed pre-bell Monday with the Consumer Discretionary Select Sector SPDR Fund (XLY) recently 0.15% higher and the Consumer Staples Select Sector SPDR Fund (XLP) down a slight 0.05%. Papa John's International was marginally lower in recent premarket activity.
|
Diageo (DEO) named Debra Crew as interim chief executive, effective immediately, ahead of her appointment as CEO on July 1. Diageo was over 1% lower recently. Papa John's International was marginally lower in recent premarket activity.
|
6b1f9bfe-3518-4ad7-90a4-ae28731e5882
|
727546.0
|
2023-05-31 00:00:00 UTC
|
Consumer Sector Update for 05/31/2023: DEO, KBAL, AAP, CPRI
|
DEO
|
https://www.nasdaq.com/articles/consumer-sector-update-for-05-31-2023%3A-deo-kbal-aap-cpri
|
nan
|
nan
|
Consumer stocks were mixed late Wednesday with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.6% and the Consumer Discretionary Select Sector SPDR Fund (XLY) down 1.3%.
Redbook US same-store sales rose by 1.2% from a year earlier in the week ended May 27, slower that a 1.5% year-over-year increase in the previous week.
In company news, Diageo (DEO) is facing a lawsuit from Sean "Diddy" Combs, who alleges the company neglected the DeLeon tequila brand it co-owns with the music celebrity, The Wall Street Journal reported. Diageo shares were shedding 1.2%.
Kimball International (KBAL) said that its shareholders approved the merger deal with HNI Corp. (HNI). Kimball shares fell 0.7%, while HNI was down 2.8%.
Advance Auto Parts (AAP) tumbled 35% as the company lowered its fiscal 2023 outlook after first-quarter earnings unexpectedly fell from a year earlier amid elevated costs and a decline in comparable store sales.
Capri (CPRI) issued a downbeat short-term outlook and trimmed its annual revenue guidance after reporting lower fiscal Q4 results. Shares of the Michael Kors parent fell 11%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In company news, Diageo (DEO) is facing a lawsuit from Sean "Diddy" Combs, who alleges the company neglected the DeLeon tequila brand it co-owns with the music celebrity, The Wall Street Journal reported. Advance Auto Parts (AAP) tumbled 35% as the company lowered its fiscal 2023 outlook after first-quarter earnings unexpectedly fell from a year earlier amid elevated costs and a decline in comparable store sales. Capri (CPRI) issued a downbeat short-term outlook and trimmed its annual revenue guidance after reporting lower fiscal Q4 results.
|
In company news, Diageo (DEO) is facing a lawsuit from Sean "Diddy" Combs, who alleges the company neglected the DeLeon tequila brand it co-owns with the music celebrity, The Wall Street Journal reported. Consumer stocks were mixed late Wednesday with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.6% and the Consumer Discretionary Select Sector SPDR Fund (XLY) down 1.3%. Kimball shares fell 0.7%, while HNI was down 2.8%.
|
In company news, Diageo (DEO) is facing a lawsuit from Sean "Diddy" Combs, who alleges the company neglected the DeLeon tequila brand it co-owns with the music celebrity, The Wall Street Journal reported. Consumer stocks were mixed late Wednesday with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.6% and the Consumer Discretionary Select Sector SPDR Fund (XLY) down 1.3%. Advance Auto Parts (AAP) tumbled 35% as the company lowered its fiscal 2023 outlook after first-quarter earnings unexpectedly fell from a year earlier amid elevated costs and a decline in comparable store sales.
|
In company news, Diageo (DEO) is facing a lawsuit from Sean "Diddy" Combs, who alleges the company neglected the DeLeon tequila brand it co-owns with the music celebrity, The Wall Street Journal reported. Consumer stocks were mixed late Wednesday with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.6% and the Consumer Discretionary Select Sector SPDR Fund (XLY) down 1.3%. Kimball shares fell 0.7%, while HNI was down 2.8%.
|
1463dde5-af15-4dfc-b9dd-22ae1892d21a
|
727547.0
|
2023-05-31 00:00:00 UTC
|
CCU vs. DEO: Which Stock Should Value Investors Buy Now?
|
DEO
|
https://www.nasdaq.com/articles/ccu-vs.-deo%3A-which-stock-should-value-investors-buy-now
|
nan
|
nan
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Diageo (DEO). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Cervecerias Unidas has a Zacks Rank of #1 (Strong Buy), while Diageo has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that CCU likely has seen a stronger improvement to its earnings outlook than DEO has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CCU currently has a forward P/E ratio of 12.04, while DEO has a forward P/E of 20.78. We also note that CCU has a PEG ratio of 0.52. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DEO currently has a PEG ratio of 2.67.
Another notable valuation metric for CCU is its P/B ratio of 1.68. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, DEO has a P/B of 8.33.
These metrics, and several others, help CCU earn a Value grade of B, while DEO has been given a Value grade of C.
CCU stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CCU is the superior value option right now.
Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom
It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.
>>Show me how I could profit from the metaverse!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Compania Cervecerias Unidas, S.A. (CCU) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Diageo (DEO). Investors should feel comfortable knowing that CCU likely has seen a stronger improvement to its earnings outlook than DEO has recently. CCU currently has a forward P/E ratio of 12.04, while DEO has a forward P/E of 20.78.
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Diageo (DEO). Click to get this free report Compania Cervecerias Unidas, S.A. (CCU) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors should feel comfortable knowing that CCU likely has seen a stronger improvement to its earnings outlook than DEO has recently.
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Diageo (DEO). These metrics, and several others, help CCU earn a Value grade of B, while DEO has been given a Value grade of C. CCU stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CCU is the superior value option right now. Click to get this free report Compania Cervecerias Unidas, S.A. (CCU) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Diageo (DEO). These metrics, and several others, help CCU earn a Value grade of B, while DEO has been given a Value grade of C. CCU stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CCU is the superior value option right now. Investors should feel comfortable knowing that CCU likely has seen a stronger improvement to its earnings outlook than DEO has recently.
|
fcfb38ea-27cd-4785-b959-bbdd915ddc04
|
727548.0
|
2023-05-26 00:00:00 UTC
|
Analysts See 13% Gains Ahead For FVD
|
DEO
|
https://www.nasdaq.com/articles/analysts-see-13-gains-ahead-for-fvd
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Value Line Dividend Index Fund ETF (Symbol: FVD), we found that the implied analyst target price for the ETF based upon its underlying holdings is $43.91 per unit.
With FVD trading at a recent price near $38.83 per unit, that means that analysts see 13.08% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FVD's underlying holdings with notable upside to their analyst target prices are Rogers Communications Inc (Symbol: RCI), Novartis AG Basel (Symbol: NVS), and Diageo plc (Symbol: DEO). Although RCI has traded at a recent price of $45.61/share, the average analyst target is 16.97% higher at $53.35/share. Similarly, NVS has 16.59% upside from the recent share price of $97.78 if the average analyst target price of $114.00/share is reached, and analysts on average are expecting DEO to reach a target price of $201.00/share, which is 16.00% above the recent price of $173.28. Below is a twelve month price history chart comparing the stock performance of RCI, NVS, and DEO:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
First Trust Value Line Dividend Index Fund ETF FVD $38.83 $43.91 13.08%
Rogers Communications Inc RCI $45.61 $53.35 16.97%
Novartis AG Basel NVS $97.78 $114.00 16.59%
Diageo plc DEO $173.28 $201.00 16.00%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
Institutional Holders of Autodesk
Funds Holding URA
WLMS Historical PE Ratio
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
First Trust Value Line Dividend Index Fund ETF FVD $38.83 $43.91 13.08% Rogers Communications Inc RCI $45.61 $53.35 16.97% Novartis AG Basel NVS $97.78 $114.00 16.59% Diageo plc DEO $173.28 $201.00 16.00% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FVD's underlying holdings with notable upside to their analyst target prices are Rogers Communications Inc (Symbol: RCI), Novartis AG Basel (Symbol: NVS), and Diageo plc (Symbol: DEO). Similarly, NVS has 16.59% upside from the recent share price of $97.78 if the average analyst target price of $114.00/share is reached, and analysts on average are expecting DEO to reach a target price of $201.00/share, which is 16.00% above the recent price of $173.28.
|
Three of FVD's underlying holdings with notable upside to their analyst target prices are Rogers Communications Inc (Symbol: RCI), Novartis AG Basel (Symbol: NVS), and Diageo plc (Symbol: DEO). Similarly, NVS has 16.59% upside from the recent share price of $97.78 if the average analyst target price of $114.00/share is reached, and analysts on average are expecting DEO to reach a target price of $201.00/share, which is 16.00% above the recent price of $173.28. First Trust Value Line Dividend Index Fund ETF FVD $38.83 $43.91 13.08% Rogers Communications Inc RCI $45.61 $53.35 16.97% Novartis AG Basel NVS $97.78 $114.00 16.59% Diageo plc DEO $173.28 $201.00 16.00% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
|
Similarly, NVS has 16.59% upside from the recent share price of $97.78 if the average analyst target price of $114.00/share is reached, and analysts on average are expecting DEO to reach a target price of $201.00/share, which is 16.00% above the recent price of $173.28. Three of FVD's underlying holdings with notable upside to their analyst target prices are Rogers Communications Inc (Symbol: RCI), Novartis AG Basel (Symbol: NVS), and Diageo plc (Symbol: DEO). Below is a twelve month price history chart comparing the stock performance of RCI, NVS, and DEO: Below is a summary table of the current analyst target prices discussed above:
|
First Trust Value Line Dividend Index Fund ETF FVD $38.83 $43.91 13.08% Rogers Communications Inc RCI $45.61 $53.35 16.97% Novartis AG Basel NVS $97.78 $114.00 16.59% Diageo plc DEO $173.28 $201.00 16.00% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FVD's underlying holdings with notable upside to their analyst target prices are Rogers Communications Inc (Symbol: RCI), Novartis AG Basel (Symbol: NVS), and Diageo plc (Symbol: DEO). Similarly, NVS has 16.59% upside from the recent share price of $97.78 if the average analyst target price of $114.00/share is reached, and analysts on average are expecting DEO to reach a target price of $201.00/share, which is 16.00% above the recent price of $173.28.
|
0bac0498-62a0-4c25-be3c-4c1ba67893bf
|
727549.0
|
2023-05-19 00:00:00 UTC
|
3 No-Brainer Warren Buffett Stocks to Buy Right Now
|
DEO
|
https://www.nasdaq.com/articles/3-no-brainer-warren-buffett-stocks-to-buy-right-now-6
|
nan
|
nan
|
People widely consider Warren Buffett the greatest investor of all time. Such fame means that people eagerly await Berkshire Hathaway's quarterly 13F filing showing what Buffett's holding company has bought and sold over the past three months.
Berkshire's latest 13F disclosure is in, and Buffett was again active. Investors must make their own decisions -- but if you're looking for investment ideas, why not look at one of Wall Street's best?
Here are three of Buffett's latest buys and why they are worth considering for your portfolio.
1. Apple
Apple (NASDAQ: AAPL) is the world's largest consumer electronics company, with more than 1 billion people using Apple devices (iPhones lead the way). Buffett added to Berkshire's existing position in the first quarter. What is most surprising about this purchase is that Apple is already the largest holding in Berkshire's stock portfolio at 47%.
Warren Buffett recently called Apple "the best business Berkshire owns," so buying more would indicate Buffett wants more of a good thing. The stock isn't cheap at a forward price-to-earnings ratio (P/E) of 29, well above its decade average of 19. However, Buffett is notorious for thinking long-term, and Apple has plenty of growth levers to pull despite its size.
The company is pushing into India, where it recently opened its first stores. India is the world's most populated country, and is thriving economically. Experts believe the country's middle class could swell over the coming years, far exceeding the United States' total population. Even if there's competition, Apple's worldwide brand recognition could fuel years of incremental growth in India as an emerging market.
2. Diageo
Worldwide spirits conglomerate Diageo (NYSE: DEO) is a new purchase for Buffett in Q1. Berkshire opened a small position (by his standards) of $40 million, a rounding error for the overall portfolio. Still, the purchase could signal a desire to get additional consumer products into the portfolio as the economy faces a potential recession. At Berkshire's annual meeting, Buffett declared that many of Berkshire's operating units would see their earnings dip, implying that the U.S. economy was exiting a period of economic growth.
Diageo owns many of the world's renowned liquor and spirit brands, including Captain Morgan, Johnnie Walker, Tanqueray, Guinness, and more. The stock trades at a P/E of 21, below its long-term average of 24. You won't mistake Diageo for a growth stock; analysts believe earnings per share (EPS) will grow by 8% annually over the next several years.
But Diageo is a resilient business that sells products consumers might lean on during tough times. Time will tell whether Berkshire makes Diageo a larger piece of its portfolio, but investors looking for a blue-chip consumer products stock can hone in on Diageo.
3. Bank of America
It's been a tumultuous year for the banking sector. A combination of unrealized losses on long-duration bonds due to rising rates and fear over the stability of banks has caused multiple high-profile bank failures. Bank of America (NYSE: BAC), one of the largest financial institutions in the United States, is down more than 20% over the past year.
Meanwhile, the operating environment has gotten more friendly to Bank of America. Higher interest rates help banks earn higher returns on the capital they lend and invest. At the same time, Bank of America's large size may be a competitive advantage if depositors flee smaller regional banks for safety in these perceived too-big-to-fail lenders.
Bank of America has been a longtime holding of Berkshire, and the company added to its position in the first quarter. Today the stock is Berkshire's second-largest holding at 8.5%. Buffett's purchase would seemingly indicate a vote of confidence in the bank, and the stock is trading below its long-term average price-to-book value (P/B), its lowest since the pandemic market crash in 2020.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 15, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Diageo Plc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo Worldwide spirits conglomerate Diageo (NYSE: DEO) is a new purchase for Buffett in Q1. Such fame means that people eagerly await Berkshire Hathaway's quarterly 13F filing showing what Buffett's holding company has bought and sold over the past three months. Diageo owns many of the world's renowned liquor and spirit brands, including Captain Morgan, Johnnie Walker, Tanqueray, Guinness, and more.
|
Diageo Worldwide spirits conglomerate Diageo (NYSE: DEO) is a new purchase for Buffett in Q1. Warren Buffett recently called Apple "the best business Berkshire owns," so buying more would indicate Buffett wants more of a good thing. Higher interest rates help banks earn higher returns on the capital they lend and invest.
|
Diageo Worldwide spirits conglomerate Diageo (NYSE: DEO) is a new purchase for Buffett in Q1. Time will tell whether Berkshire makes Diageo a larger piece of its portfolio, but investors looking for a blue-chip consumer products stock can hone in on Diageo. See the 10 stocks *Stock Advisor returns as of May 15, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
|
Diageo Worldwide spirits conglomerate Diageo (NYSE: DEO) is a new purchase for Buffett in Q1. What is most surprising about this purchase is that Apple is already the largest holding in Berkshire's stock portfolio at 47%. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them!
|
d912935e-e92c-4f4e-b577-53a3fcfac580
|
727550.0
|
2023-05-15 00:00:00 UTC
|
CCU or DEO: Which Is the Better Value Stock Right Now?
|
DEO
|
https://www.nasdaq.com/articles/ccu-or-deo%3A-which-is-the-better-value-stock-right-now
|
nan
|
nan
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Diageo (DEO). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Cervecerias Unidas and Diageo are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that CCU likely has seen a stronger improvement to its earnings outlook than DEO has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CCU currently has a forward P/E ratio of 13.41, while DEO has a forward P/E of 21.79. We also note that CCU has a PEG ratio of 0.57. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DEO currently has a PEG ratio of 2.80.
Another notable valuation metric for CCU is its P/B ratio of 1.88. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DEO has a P/B of 8.73.
Based on these metrics and many more, CCU holds a Value grade of B, while DEO has a Value grade of C.
CCU has seen stronger estimate revision activity and sports more attractive valuation metrics than DEO, so it seems like value investors will conclude that CCU is the superior option right now.
This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation
Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
>>Yes, I Want to Help Protect My Portfolio During the Recession
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Compania Cervecerias Unidas, S.A. (CCU) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Diageo (DEO). Investors should feel comfortable knowing that CCU likely has seen a stronger improvement to its earnings outlook than DEO has recently. CCU currently has a forward P/E ratio of 13.41, while DEO has a forward P/E of 21.79.
|
Based on these metrics and many more, CCU holds a Value grade of B, while DEO has a Value grade of C. CCU has seen stronger estimate revision activity and sports more attractive valuation metrics than DEO, so it seems like value investors will conclude that CCU is the superior option right now. Click to get this free report Compania Cervecerias Unidas, S.A. (CCU) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Diageo (DEO).
|
Based on these metrics and many more, CCU holds a Value grade of B, while DEO has a Value grade of C. CCU has seen stronger estimate revision activity and sports more attractive valuation metrics than DEO, so it seems like value investors will conclude that CCU is the superior option right now. Click to get this free report Compania Cervecerias Unidas, S.A. (CCU) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Diageo (DEO).
|
DEO currently has a PEG ratio of 2.80. Based on these metrics and many more, CCU holds a Value grade of B, while DEO has a Value grade of C. CCU has seen stronger estimate revision activity and sports more attractive valuation metrics than DEO, so it seems like value investors will conclude that CCU is the superior option right now. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Diageo (DEO).
|
a54ac737-cb58-4fee-996e-6615b5a0334a
|
727551.0
|
2023-05-14 00:00:00 UTC
|
Guru Fundamental Report for DEO
|
DEO
|
https://www.nasdaq.com/articles/guru-fundamental-report-for-deo-1
|
nan
|
nan
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
DIAGEO PLC (ADR) (DEO) is a large-cap growth stock in the Beverages (Alcoholic) industry. The rating using this strategy is 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: FAIL
Detailed Analysis of DIAGEO PLC (ADR)
DEO Guru Analysis
DEO Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
Additional Research Links
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. DIAGEO PLC (ADR) (DEO) is a large-cap growth stock in the Beverages (Alcoholic) industry.
|
Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO).
|
Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO).
|
Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO).
|
71853279-6a95-41ee-b719-7c57c0b0bba7
|
727552.0
|
2023-05-12 00:00:00 UTC
|
DEO Makes Notable Cross Below Critical Moving Average
|
DEO
|
https://www.nasdaq.com/articles/deo-makes-notable-cross-below-critical-moving-average
|
nan
|
nan
|
In trading on Friday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $178.47, changing hands as low as $177.61 per share. Diageo plc shares are currently trading down about 2.8% on the day. The chart below shows the one year performance of DEO shares, versus its 200 day moving average:
Looking at the chart above, DEO's low point in its 52 week range is $160.09 per share, with $194.04 as the 52 week high point — that compares with a last trade of $177.73.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
Also see:
Earnings Calendar
Top Ten Hedge Funds Holding ALSK
ULH market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $178.47, changing hands as low as $177.61 per share. The chart below shows the one year performance of DEO shares, versus its 200 day moving average: Looking at the chart above, DEO's low point in its 52 week range is $160.09 per share, with $194.04 as the 52 week high point — that compares with a last trade of $177.73. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » Also see: Earnings Calendar Top Ten Hedge Funds Holding ALSK ULH market cap history The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $178.47, changing hands as low as $177.61 per share. The chart below shows the one year performance of DEO shares, versus its 200 day moving average: Looking at the chart above, DEO's low point in its 52 week range is $160.09 per share, with $194.04 as the 52 week high point — that compares with a last trade of $177.73. Diageo plc shares are currently trading down about 2.8% on the day.
|
In trading on Friday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $178.47, changing hands as low as $177.61 per share. The chart below shows the one year performance of DEO shares, versus its 200 day moving average: Looking at the chart above, DEO's low point in its 52 week range is $160.09 per share, with $194.04 as the 52 week high point — that compares with a last trade of $177.73. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » Also see: Earnings Calendar Top Ten Hedge Funds Holding ALSK ULH market cap history The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $178.47, changing hands as low as $177.61 per share. The chart below shows the one year performance of DEO shares, versus its 200 day moving average: Looking at the chart above, DEO's low point in its 52 week range is $160.09 per share, with $194.04 as the 52 week high point — that compares with a last trade of $177.73. Diageo plc shares are currently trading down about 2.8% on the day.
|
7adae1fa-c478-4a68-94ec-2c498302998c
|
727553.0
|
2023-05-03 00:00:00 UTC
|
The Zacks Analyst Blog Highlights Apple, Microsoft, Meta Platforms, Diageo and 3M Company
|
DEO
|
https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-microsoft-meta-platforms-diageo-and-3m-company
|
nan
|
nan
|
For Immediate Release
Chicago, IL – May 3, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms, Inc. META, Diageo plc DEO and 3M Company MMM.
Here are highlights from Tuesday’s Analyst Blog:
Q1 Earnings Season Scorecard and Featured Research on Apple, Microsoft and Meta Platforms
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the ongoing Q1 earnings season in addition to new research reports on 16 major stocks, including Apple Inc., Microsoft Corp. and Meta Platforms, Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Q1 Earnings Season Scorecard
Including all of this morning's releases, we now have Q1 results from 310 S&P 500 members or 62% of the index's total membership.
Total earnings for these companies are down -2.2% from the same period last year on +3.9% higher revenues, with 78.1% beating EPS estimates and 73.9% beating revenue estimates.
The proportion of these 310 index members beating both EPS and revenue estimates is 61.6%. This 61.6% 'blended' beats percentage compares to 57.4% in 2022 Q4, 54.5% in 2022 Q3, 57.1% in Q2, 63.9% in Q1 and the 5-year average of 59.4%.
Looking at 2023 Q1 as a whole, combining the actuals that have come out with estimates for the still-to-come companies, total S&P 500 earnings are now expected to be down -5.4% on +3.1% higher revenues.
Earnings for the current period (2023 Q2) are currently expected to be down -7.4% from the same period last year on -0.6% lower revenues. This is only modestly down from -7.2% and -0.5% expected at the end of March 2023.
For more details about the Q1 earnings season and evolving expectations for the coming periods, please check out our weekly Earnings Trends report here >>> 2023 Earnings: Good Enough, But Not Great
Featured Analyst Reports
Apple shares have been standout performers this year, with the stock gaining +29.4% vs. +20.3% gain for the Zacks Tech sector and +9% gain for the S&P 500 index. Ahead of the company's March-quarter earnings release after the market's close on Thursday (May 4th), the Zacks analyst sees Apple's revenues to grow year over year. Growing services subscriber base and a strong liquidity position are key catalysts for Apple’s prospects.
However, Apple expects the March quarter’s year-over-year revenue growth to be similar to that of the December quarter due to unfavorable forex. For iPhone, Apple expects the March quarter’s year-over-year revenue growth to accelerate relative to the December quarter’s year-over-year revenue growth.
For Mac and iPad, revenues are expected to decline in double digits on a year-over-year basis due to challenging comparison and macroeconomic headwinds. Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, as well as weakness in digital advertising and gaming.
(You can read the full research report on Apple here >>>)
Shares of Microsoft have outperformed the Zacks Computer - Software industry over the past six months (+43.4% vs. +37.9%). The company’s third-quarter fiscal 2023 results were driven by improvement in Intelligent Cloud and Productivity and Business Processes, offset in part by a decline in More Personal Computing. Intelligent Cloud revenues increased in the quarter, driven by Azure and other cloud services. Productivity and Business
Processes revenues increased due to the Office 365 Commercial. Continued momentum in the small and medium businesses and frontline worker offerings, as well as gain in revenue per user drove top-line growth. More Personal Computing revenues decreased due to Windows and Devices. Steady performance in Talent Solutions aided LinkedIn revenues.
However, declining gaming revenues and videogame sales were headwinds. Increasing spend on Azure enhancements amid stiff competition in the cloud space from Amazon is likely to dent margins.
(You can read the full research report on Microsoft here >>>)
Shares of Meta Platforms have outperformed the Zacks Internet - Software industry over the past year (+14.7% vs. -14.0%). The company is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp, Messenger, and Facebook has been a major growth driver. Its restructuring plan is expected to reduce expenses driving profitability.
However, challenging macroeconomic conditions are negatively impacting Meta’s advertising revenues. Unfavorable forex, targeting and measurement headwinds due to Apple’s iOS changes are headwinds. Its second-quarter guidance reflects macroeconomic and forex concerns.
The company continues to expect Reality Labs operating losses to increase year-over-year in 2023. Ongoing regulatory developments including the upcoming IDPC decision on transatlantic data transfers is expected to weigh down its prospects.
(You can read the full research report on Meta Platforms here >>>)
Other noteworthy reports we are featuring today include Diageo plc and 3M Company.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Stocks recently featured in the blog include: Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms, Inc. META, Diageo plc DEO and 3M Company MMM. However, declining gaming revenues and videogame sales were headwinds. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Stocks recently featured in the blog include: Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms, Inc. META, Diageo plc DEO and 3M Company MMM. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. However, declining gaming revenues and videogame sales were headwinds.
|
Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms, Inc. META, Diageo plc DEO and 3M Company MMM. However, declining gaming revenues and videogame sales were headwinds.
|
Stocks recently featured in the blog include: Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms, Inc. META, Diageo plc DEO and 3M Company MMM. However, declining gaming revenues and videogame sales were headwinds. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
440d1ee4-fbf1-4953-bd7f-58bde10855d2
|
727554.0
|
2023-05-02 00:00:00 UTC
|
Q1 Earnings Season Scorecard and Featured Research on Apple, Microsoft & Meta Platforms
|
DEO
|
https://www.nasdaq.com/articles/q1-earnings-season-scorecard-and-featured-research-on-apple-microsoft-meta-platforms
|
nan
|
nan
|
Tuesday, May 2, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the ongoing Q1 earnings season in addition to new research reports on 16 major stocks, including Apple Inc. (AAPL), Microsoft Corporation (MSFT) and Meta Platforms, Inc. (META). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Q1 Earnings Season Scorecard
Including all of this morning's releases, we now have Q1 results from 310 S&P 500 members or 62% of the index's total membership.
Total earnings for these companies are down -2.2% from the same period last year on +3.9% higher revenues, with 78.1% beating EPS estimates and 73.9% beating revenue estimates.
The proportion of these 310 index members beating both EPS and revenue estimates is 61.6%. This 61.6% 'blended' beats percentage compares to 57.4% in 2022 Q4, 54.5% in 2022 Q3, 57.1% in Q2, 63.9% in Q1 and the 5-year average of 59.4%.
Looking at 2023 Q1 as a whole, combining the actuals that have come out with estimates for the still-to-come companies, total S&P 500 earnings are now expected to be down -5.4% on +3.1% higher revenues.
Earnings for the current period (2023 Q2) are currently expected to be down -7.4% from the same period last year on -0.6% lower revenues. This is only modestly down from -7.2% and -0.5% expected at the end of March 2023.
For more details about the Q1 earnings season and evolving expectations for the coming periods, please check out our weekly Earnings Trends report here >>> 2023 Earnings: Good Enough, But Not Great
Featured Analyst Reports
Apple shares have been standout performers this year, with the stock gaining +29.4% vs. +20.3% gain for the Zacks Tech sector and +9% gain for the S&P 500 index. Ahead of the company's March-quarter earnings release after the market's close on Thursday (May 4th), the Zacks analyst sees Apple's revenues to grow year over year. Growing services subscriber base and a strong liquidity position are key catalysts for Apple’s prospects.
However, Apple expects the March quarter’s year-over-year revenue growth to be similar to that of the December quarter due to unfavorable forex. For iPhone, Apple expects the March quarter’s year-over-year revenue growth to accelerate relative to the December quarter’s year-over-year revenue growth.
For Mac and iPad, revenues are expected to decline in double digits on a year-over-year basis due to challenging comparison and macroeconomic headwinds. Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, as well as weakness in digital advertising and gaming.
(You can read the full research report on Apple here >>>)
Shares of Microsoft have outperformed the Zacks Computer - Software industry over the past six months (+43.4% vs. +37.9%). The company’s third-quarter fiscal 2023 results were driven by improvement in Intelligent Cloud and Productivity and Business Processes, offset in part by a decline in More Personal Computing. Intelligent Cloud revenues increased in the quarter, driven by Azure and other cloud services. Productivity and Business
Processes revenues increased due to the Office 365 Commercial. Continued momentum in the small and medium businesses and frontline worker offerings, as well as gain in revenue per user drove top-line growth. More Personal Computing revenues decreased due to Windows and Devices. Steady performance in Talent Solutions aided LinkedIn revenues.
However, declining gaming revenues and videogame sales were headwinds. Increasing spend on Azure enhancements amid stiff competition in the cloud space from Amazon is likely to dent margins.
(You can read the full research report on Microsoft here >>>)
Shares of Meta Platforms have outperformed the Zacks Internet - Software industry over the past year (+14.7% vs. -14.0%). The company is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp, Messenger, and Facebook has been a major growth driver. Its restructuring plan is expected to reduce expenses driving profitability.
However, challenging macroeconomic conditions is negatively impacting Meta’s advertising revenues. Unfavorable forex, targeting and measurement headwinds due to Apple’s iOS changes are headwinds. Its second-quarter guidance reflects macroeconomic and forex concerns.
The company continues to expect Reality Labs operating losses to increase year-over-year in 2023. Ongoing regulatory developments including upcoming IDPC decision on transatlantic data transfers is expected to weigh down its prospects.
(You can read the full research report on Meta Platforms here >>>)
Other noteworthy reports we are featuring today include Anheuser-Busch InBev SA/NV (BUD), Diageo plc (DEO) and 3M Company (MMM).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT)
User Growth, Instagram Strength Aids Meta Platforms (META)
Featured Reports
AB InBev's (BUD) Focus on Innovation to Boost Market Share
Per the Zacks analyst, AB InBev remains focused on solidifying market position by introducing near beer alternatives, along with no- and low-alcohol beers to resonate with the changing consumer demand
Premiumization & Pricing Plans Aid Diageo (DEO) Amid Inflation
Per the Zacks analyst, premiumization efforts, market recovery, pricing actions and supply productivity savings have boosted Diageo's performance. This has helped offset the ongoing cost inflation.
3M (MMM) Banks on Cost Controls Amid Demand Softness
Per the Zacks analyst, 3M's cost-control initiatives should help the company stay afloat as it grapples with lower disposable respirator demand and reduced consumer electronics demand.
Steady Investment & Renewable Focus Aid Eversource (ES)
Per the Zacks analyst, Eversource's investment of $21.5 billion within 2023-2027 time period will boost clean electricity generation, fortify its infrastructure and increase reliability of its service
Ovintiv (OVV) to Gain from Premium Asset Portfolio
The Zacks analyst likes Ovintiv's premium inventory of drilled uncompleted wells that can be quickly brought into production. However, the company's low current ratio signals financial difficulties.
Solid Growth in Exparel Sales Boost Pacira (PCRX)
Per the Zacks Analyst, Pacira's lead drug Exparel has been witnessing strong uptake and growth on the back of expanded indications. However, the lack of other candidates in the pipeline is a woe.
Robust Rayaldee Sales Continue to Aid OPKO Health (OPK)
The Zacks analyst is upbeat about OPKO Health's robust Rayaldee sales despite its operation in a highly competitive market.
New Upgrades
Digital Sales & Expansion Boosts Chipotle's (CMG) Prospects
Per the Zacks analyst, Chipotle is posied to benefit from strong digital sales, rise in prices and menu innovation. This and focus on new restaurant openings including a Chipotlane bode well.
PACCAR (PCAR) To be Aided by Improved Product Mix
PACCAR's next-gen models like Peterbilt 579EV, hydrogen fuel-cell Kenworth T680E and Peterbilt autonomous Model 579 are set to improve its product mix and bolster revenues, per the Zacks analyst.
Xerox (XRX) is Gaining From Cost and Productivity Initiatives
Per the Zacks Analyst, Xerox's cost control and productivity improvement initiative called "Project Own It," is fetching results in the form of strong margins.
New Downgrades
Weak Macro Environment, Integration Efforts Ail Aspen (AZPN)
Per the Zacks analyst, uncertain macro environment, ongoing integration and transformation efforts and cautious software spending in the chemical industry are weighing down on the Aspen's performance.
High Expenses, Leverage Concern First American (FAF)
Per the Zacks analyst, First American's increase in higher personnel costs, operating expenses induces higher expenses that weigh on margin expansion. High leverage induces rise in interest expense.
High Costs, Loan Concentration to Hurt Valley National (VLY)
Per the Zacks analyst, elevated expenses due to inorganic growth efforts will likely hurt Valley National's profits. A concentrated loan portfolio is another woe which makes us apprehensive.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT) User Growth, Instagram Strength Aids Meta Platforms (META) Featured Reports AB InBev's (BUD) Focus on Innovation to Boost Market Share Per the Zacks analyst, AB InBev remains focused on solidifying market position by introducing near beer alternatives, along with no- and low-alcohol beers to resonate with the changing consumer demand Premiumization & Pricing Plans Aid Diageo (DEO) Amid Inflation Per the Zacks analyst, premiumization efforts, market recovery, pricing actions and supply productivity savings have boosted Diageo's performance. However, declining gaming revenues and videogame sales were headwinds. Other noteworthy reports we are featuring today include Anheuser-Busch InBev SA/NV (BUD), Diageo plc (DEO) and 3M Company (MMM).
|
If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT) User Growth, Instagram Strength Aids Meta Platforms (META) Featured Reports AB InBev's (BUD) Focus on Innovation to Boost Market Share Per the Zacks analyst, AB InBev remains focused on solidifying market position by introducing near beer alternatives, along with no- and low-alcohol beers to resonate with the changing consumer demand Premiumization & Pricing Plans Aid Diageo (DEO) Amid Inflation Per the Zacks analyst, premiumization efforts, market recovery, pricing actions and supply productivity savings have boosted Diageo's performance. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. However, declining gaming revenues and videogame sales were headwinds.
|
If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT) User Growth, Instagram Strength Aids Meta Platforms (META) Featured Reports AB InBev's (BUD) Focus on Innovation to Boost Market Share Per the Zacks analyst, AB InBev remains focused on solidifying market position by introducing near beer alternatives, along with no- and low-alcohol beers to resonate with the changing consumer demand Premiumization & Pricing Plans Aid Diageo (DEO) Amid Inflation Per the Zacks analyst, premiumization efforts, market recovery, pricing actions and supply productivity savings have boosted Diageo's performance. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. However, declining gaming revenues and videogame sales were headwinds.
|
However, declining gaming revenues and videogame sales were headwinds. Other noteworthy reports we are featuring today include Anheuser-Busch InBev SA/NV (BUD), Diageo plc (DEO) and 3M Company (MMM). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT) User Growth, Instagram Strength Aids Meta Platforms (META) Featured Reports AB InBev's (BUD) Focus on Innovation to Boost Market Share Per the Zacks analyst, AB InBev remains focused on solidifying market position by introducing near beer alternatives, along with no- and low-alcohol beers to resonate with the changing consumer demand Premiumization & Pricing Plans Aid Diageo (DEO) Amid Inflation Per the Zacks analyst, premiumization efforts, market recovery, pricing actions and supply productivity savings have boosted Diageo's performance.
|
591c9089-5088-452e-af67-fc9dfcb6f689
|
727555.0
|
2023-04-27 00:00:00 UTC
|
HEINY or DEO: Which Is the Better Value Stock Right Now?
|
DEO
|
https://www.nasdaq.com/articles/heiny-or-deo%3A-which-is-the-better-value-stock-right-now-0
|
nan
|
nan
|
Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Heineken NV (HEINY) and Diageo (DEO). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Heineken NV has a Zacks Rank of #2 (Buy), while Diageo has a Zacks Rank of #4 (Sell). This means that HEINY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
HEINY currently has a forward P/E ratio of 20.15, while DEO has a forward P/E of 22.90. We also note that HEINY has a PEG ratio of 1.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DEO currently has a PEG ratio of 2.94.
Another notable valuation metric for HEINY is its P/B ratio of 2.86. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DEO has a P/B of 9.17.
Based on these metrics and many more, HEINY holds a Value grade of B, while DEO has a Value grade of D.
HEINY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HEINY is likely the superior value option right now.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Heineken NV (HEINY) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Heineken NV (HEINY) and Diageo (DEO). HEINY currently has a forward P/E ratio of 20.15, while DEO has a forward P/E of 22.90. DEO currently has a PEG ratio of 2.94.
|
Click to get this free report Heineken NV (HEINY) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Heineken NV (HEINY) and Diageo (DEO). HEINY currently has a forward P/E ratio of 20.15, while DEO has a forward P/E of 22.90.
|
Based on these metrics and many more, HEINY holds a Value grade of B, while DEO has a Value grade of D. HEINY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. Click to get this free report Heineken NV (HEINY) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Heineken NV (HEINY) and Diageo (DEO).
|
DEO currently has a PEG ratio of 2.94. Based on these metrics and many more, HEINY holds a Value grade of B, while DEO has a Value grade of D. HEINY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Heineken NV (HEINY) and Diageo (DEO).
|
8391df20-05c9-4016-bbd7-9ea8f2a7d947
|
727556.0
|
2023-04-13 00:00:00 UTC
|
Diageo To Seek Delistings Of Ordinary Shares From Euronext Paris, Dublin
|
DEO
|
https://www.nasdaq.com/articles/diageo-to-seek-delistings-of-ordinary-shares-from-euronext-paris-dublin
|
nan
|
nan
|
(RTTNews) - British alcoholic beverage firm Diageo Plc (DGE.L, DEO) announced Thursday that it intends to submit applications for the delisting of its ordinary shares from each of Euronext Paris and Euronext Dublin.
The decision was taken following a review of the trading volumes, costs and administrative requirements related to its listings in Paris and Dublin.
The company noted that the delisting of ordinary shares from Euronext Paris is subject to the approval of the board of directors of Euronext Paris. The delisting from Euronext Dublin is subject to the approval of Euronext Dublin. The delistings will not have any impact on Diageo's day-to-day operations in France or Ireland.
It is anticipated that the delisting from Euronext Paris will take effect on or around May 26, and from Euronext Dublin will take effect on or around May 30, subject to the approval of Euronext Paris and Euronext Dublin respectively.
The decision will not imact Diageo's listings on the London Stock Exchange and the New York Stock Exchange.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - British alcoholic beverage firm Diageo Plc (DGE.L, DEO) announced Thursday that it intends to submit applications for the delisting of its ordinary shares from each of Euronext Paris and Euronext Dublin. The decision was taken following a review of the trading volumes, costs and administrative requirements related to its listings in Paris and Dublin. The delistings will not have any impact on Diageo's day-to-day operations in France or Ireland.
|
(RTTNews) - British alcoholic beverage firm Diageo Plc (DGE.L, DEO) announced Thursday that it intends to submit applications for the delisting of its ordinary shares from each of Euronext Paris and Euronext Dublin. The company noted that the delisting of ordinary shares from Euronext Paris is subject to the approval of the board of directors of Euronext Paris. The delisting from Euronext Dublin is subject to the approval of Euronext Dublin.
|
(RTTNews) - British alcoholic beverage firm Diageo Plc (DGE.L, DEO) announced Thursday that it intends to submit applications for the delisting of its ordinary shares from each of Euronext Paris and Euronext Dublin. The company noted that the delisting of ordinary shares from Euronext Paris is subject to the approval of the board of directors of Euronext Paris. It is anticipated that the delisting from Euronext Paris will take effect on or around May 26, and from Euronext Dublin will take effect on or around May 30, subject to the approval of Euronext Paris and Euronext Dublin respectively.
|
(RTTNews) - British alcoholic beverage firm Diageo Plc (DGE.L, DEO) announced Thursday that it intends to submit applications for the delisting of its ordinary shares from each of Euronext Paris and Euronext Dublin. The decision was taken following a review of the trading volumes, costs and administrative requirements related to its listings in Paris and Dublin. The company noted that the delisting of ordinary shares from Euronext Paris is subject to the approval of the board of directors of Euronext Paris.
|
91cc2381-d73f-4dbb-8c85-bd859c770f98
|
727557.0
|
2023-04-11 00:00:00 UTC
|
CABGY or DEO: Which Is the Better Value Stock Right Now?
|
DEO
|
https://www.nasdaq.com/articles/cabgy-or-deo%3A-which-is-the-better-value-stock-right-now-0
|
nan
|
nan
|
Investors interested in Beverages - Alcohol stocks are likely familiar with Carlsberg AS (CABGY) and Diageo (DEO). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Carlsberg AS has a Zacks Rank of #2 (Buy), while Diageo has a Zacks Rank of #4 (Sell). This means that CABGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CABGY currently has a forward P/E ratio of 19.54, while DEO has a forward P/E of 22.37. We also note that CABGY has a PEG ratio of 2.76. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DEO currently has a PEG ratio of 2.88.
Another notable valuation metric for CABGY is its P/B ratio of 4.57. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DEO has a P/B of 9.04.
These metrics, and several others, help CABGY earn a Value grade of B, while DEO has been given a Value grade of D.
CABGY stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CABGY is the superior value option right now.
Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom
It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.
>>Show me how I could profit from the metaverse!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Carlsberg AS (CABGY) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors interested in Beverages - Alcohol stocks are likely familiar with Carlsberg AS (CABGY) and Diageo (DEO). CABGY currently has a forward P/E ratio of 19.54, while DEO has a forward P/E of 22.37. DEO currently has a PEG ratio of 2.88.
|
Click to get this free report Carlsberg AS (CABGY) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors interested in Beverages - Alcohol stocks are likely familiar with Carlsberg AS (CABGY) and Diageo (DEO). CABGY currently has a forward P/E ratio of 19.54, while DEO has a forward P/E of 22.37.
|
These metrics, and several others, help CABGY earn a Value grade of B, while DEO has been given a Value grade of D. CABGY stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CABGY is the superior value option right now. Click to get this free report Carlsberg AS (CABGY) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors interested in Beverages - Alcohol stocks are likely familiar with Carlsberg AS (CABGY) and Diageo (DEO).
|
Investors interested in Beverages - Alcohol stocks are likely familiar with Carlsberg AS (CABGY) and Diageo (DEO). CABGY currently has a forward P/E ratio of 19.54, while DEO has a forward P/E of 22.37. DEO currently has a PEG ratio of 2.88.
|
94b1cac8-ebb9-4844-92b8-4915aaaf2ec2
|
727558.0
|
2023-04-06 00:00:00 UTC
|
Constellation Brands (STZ) Q4 Earnings Beat, Sales Miss
|
DEO
|
https://www.nasdaq.com/articles/constellation-brands-stz-q4-earnings-beat-sales-miss
|
nan
|
nan
|
Constellation Brands, Inc. STZ has reported fourth-quarter fiscal 2023 results, wherein the bottom line beat the Zacks Consensus Estimate, while the top line lagged the same. However, the company’s fiscal fourth-quarter earnings and sales beat our estimates. Earnings and sales moved down year over year, driven by sales declines in the beer, and wine and spirits businesses as well as higher costs.
Comparable earnings of $1.98 per share for the fiscal fourth quarter declined 16% year over year. However, it surpassed the Zacks Consensus Estimate of $1.86 and our estimate of $1.89. On a reported basis, the company has recorded earnings of $1.21, down 42% from the year-ago quarter. Excluding the impacts of Canopy Growth, it has posted comparable earnings of $2.15 per share, down 16% from the year-ago period.
Net sales declined 5% year over year to $1,997.8 million and missed the Zacks Consensus Estimate of $2,030 million. However, it surpassed our estimate of $1,995.2 million. The net sales decline can be attributed to declines in the beer, and wine and spirits businesses.
Shares of the Zacks Rank #2 (Buy) company have risen 2.7% in the past three months compared with the industry’s growth of 3.7%.
Image Source: Zacks Investment Research
Q4 Details
The company’s sales declined 2% to 1,535.6 million in the beer business, driven by a 5.4% decrease in shipment volumes, offset by 6.3% depletion growth. Depletion volume benefited from the continued robust performance of Modelo Especial and Corona Extra, and newer brands — Pacifico and the Modelo Chelada.
Depletion volume increased 9% for Modelo Especial and about 45% for Modelo Chelada. Modelo Especial continued to be the No. 2 beer brand in the high-end category, strengthening its leadership position. It was also the largest share gainer in dollar sales in the U.S. beer category in IRI channels. Meanwhile, Modelo Chelada was the No. 1 brand in the U.S. beer market and held more than 60% share of the entire chelada category.
Additionally, depletion for Corona Extra improved 4%. The brand retained its position as the third share gainer in the U.S. beer category in IRI channels.
Sales in the wine and spirits segment declined 14% to $462.2 million in the fiscal fourth quarter. Sales were affected by lower shipments and depletions for the segment. Shipment volume in the wine and spirits business declined 22.1% year over year, whereas depletions dropped 4.9%. Organic sales for the segment declined 9%, including an 18.9% dip in organic shipments. However, depletions for the segment were partly aided by a high-single-digit rise in The Prisoner brand family, low-double-digit gains for High West Whiskey, and mid-single-digit growth in the Ignite portfolio. The company’s Aspira portfolio yielded double-digit shipment growth.
Constellation Brands Inc Price, Consensus and EPS Surprise
Constellation Brands Inc price-consensus-eps-surprise-chart | Constellation Brands Inc Quote
Margins
Constellation Brands' comparable operating income declined 10% to $591.8 million, whereas the comparable operating margin contracted 170 bps to 29.6%.
The operating margin in the beer segment contracted 510 bps to 34.1%. Higher COGS, driven by elevated raw material, packaging and logistics costs due to the persistent inflationary pressures, and higher SG&A expenses due to increased headcount hurt results. This was partly offset by improved pricing.
The wine and spirits segment’s operating margin expanded 500 bps to 27.7%, owing to strong performance across its Premium Wine, Fine Wine and Craft Spirits brands. Gains from favorable mix and optimization efforts resulted in lower grape costs. This was partly negated by lower volumes.
Financial Position
As of Feb 28, 2023, Constellation Brands’ cash and cash equivalents were $133.5 million, with long-term debt (excluding current maturities) of $11,286.5 million and total shareholders’ equity (excluding non-controlling interest) of $8,413.6 million. The company generated an operating cash flow of $2,756.9 million and an adjusted free cash flow of $1,721.5 million as of Feb 28.
On Apr 5, 2023, the company announced a quarterly dividend of 89 cents per share for Class A stock. The dividend is payable on May 18 to its shareholders of record as of May 4.
Outlook
Following the fiscal 2023 results, Constellation Brands has outlined its earnings view for fiscal 2024. The company expects comparable earnings of $11.70-$12 (excluding canopy growth impacts). It expects earnings of $11.60-$11.90 per share on a reported basis.
Notably, the company has reported comparable earnings of $10.65 per share and $11.40 (excluding canopy growth impacts) for fiscal 2023. On a reported basis, it has posted a loss of 11 cents for fiscal 2023.
Net sales are likely to increase 7.9% for the beer segment, with the operating income rising 5.7%. The company expects organic net sales for the wine and spirits business between down 0.5% and up 0.5%. The operating income for the segment is envisioned to grow 2-4%.
The company predicts interest expenses of $500 million for fiscal 2024, while corporate expenses are expected to be $270 million. It anticipates a reported and comparable tax rate of 19% for fiscal 2024.
Constellation Brands forecasts an operating cash flow of $2.4-$2.6 billion for fiscal 2024, whereas the free cash flow is estimated at $1.2-$1.3 billion. The company plans to incur a capital expenditure of $1.2-$1.3 billion in fiscal 2024.
The company outlined plans for incremental capacity expansion in Mexico to support growth in its high-end Mexican beer portfolio. It anticipates a total capital expenditure of $4-$4.5 billion for the beer business between fiscal 2024 and 2026. The latest expansion will support an addition of up to 30 million hectoliters of modular capacity and includes the construction of a brewery in Southeast Mexico’s Veracruz. It also targets continued expansion and the optimization of the existing Nava and Obregon breweries.
Other Stocks to Consider
We highlighted some other top-ranked stocks from the broader Consumer Staples space, namely Coca-Cola FEMSA KOF, The Duckhorn Portfolio NAPA and Diageo DEO.
Coca-Cola FEMSA, which produces, markets and distributes soft drinks throughout the metropolitan area of Mexico City, currently sports a Zacks Rank of 1 (Strong Buy). KOF has an expected long-term earnings growth rate of 12% for three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Coca-Cola FEMSA’s current financial year’s sales and EPS suggests growth of 13.4% and 7.8%, respectively, from the year-ago reported figures. KOF has delivered a trailing four-quarter earnings surprise of 36.5%, on average.
Duckhorn is the premier producer of wines, principally in North America. It currently carries a Zacks Rank #2. The company has an expected EPS growth rate of 6.6% for three to five years.
The Zacks Consensus Estimate for Duckhorn’s fiscal 2023 sales and earnings suggests growth of 8.4% and 1.6%, respectively, from the year-ago period’s reported figures. NAPA has a trailing four-quarter earnings surprise of 13.5%, on average.
Diageo is involved in producing, distilling, brewing, bottling, packaging and distributing spirits, wine and beer. It currently has a Zacks Rank #2. DEO has an expected EPS growth rate of 8.2% for three-five years.
The Zacks Consensus Estimate for Diageo’s fiscal 2023 sales and EPS suggests growth of 18% and 8.7%, respectively, from the year-ago period's reported figures.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Diageo plc (DEO) : Free Stock Analysis Report
Constellation Brands Inc (STZ) : Free Stock Analysis Report
Coca Cola Femsa S.A.B. de C.V. (KOF) : Free Stock Analysis Report
The Duckhorn Portfolio, Inc. (NAPA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Other Stocks to Consider We highlighted some other top-ranked stocks from the broader Consumer Staples space, namely Coca-Cola FEMSA KOF, The Duckhorn Portfolio NAPA and Diageo DEO. DEO has an expected EPS growth rate of 8.2% for three-five years. Click to get this free report Diageo plc (DEO) : Free Stock Analysis Report Constellation Brands Inc (STZ) : Free Stock Analysis Report Coca Cola Femsa S.A.B.
|
Click to get this free report Diageo plc (DEO) : Free Stock Analysis Report Constellation Brands Inc (STZ) : Free Stock Analysis Report Coca Cola Femsa S.A.B. Other Stocks to Consider We highlighted some other top-ranked stocks from the broader Consumer Staples space, namely Coca-Cola FEMSA KOF, The Duckhorn Portfolio NAPA and Diageo DEO. DEO has an expected EPS growth rate of 8.2% for three-five years.
|
Other Stocks to Consider We highlighted some other top-ranked stocks from the broader Consumer Staples space, namely Coca-Cola FEMSA KOF, The Duckhorn Portfolio NAPA and Diageo DEO. DEO has an expected EPS growth rate of 8.2% for three-five years. Click to get this free report Diageo plc (DEO) : Free Stock Analysis Report Constellation Brands Inc (STZ) : Free Stock Analysis Report Coca Cola Femsa S.A.B.
|
Other Stocks to Consider We highlighted some other top-ranked stocks from the broader Consumer Staples space, namely Coca-Cola FEMSA KOF, The Duckhorn Portfolio NAPA and Diageo DEO. DEO has an expected EPS growth rate of 8.2% for three-five years. Click to get this free report Diageo plc (DEO) : Free Stock Analysis Report Constellation Brands Inc (STZ) : Free Stock Analysis Report Coca Cola Femsa S.A.B.
|
d9bb5048-00b4-41c1-92b1-95c72bc14fa8
|
727559.0
|
2023-04-03 00:00:00 UTC
|
The Zacks Analyst Blog Highlights SAP, Elevance Health, Diageo, SLB and Charter Communications
|
DEO
|
https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-sap-elevance-health-diageo-slb-and-charter
|
nan
|
nan
|
For Immediate Release
Chicago, IL – April 3, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: SAP SE SAP, Elevance Health, Inc. ELV, Diageo plc DEO, SLB Ltd. SLB and Charter Communications, Inc. CHTR.
Here are highlights from Friday’s Analyst Blog:
Top Analyst Reports for SAP, Elevance Health and Diageo
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including SAP SE, Elevance Health, Inc. and Diageo plc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of SAP have outperformed the Zacks Computer - Software industry over the past year (+13.9% vs. -6.1%), reflecting momentum in its cloud business (especially the new Rise with SAP solution) across all regions.
Momentum in SAP’s business technology platform particularly the S/4HANA solutions augurs well. The company’s restructuring plan is expected to better align its operating models and go-to-market approach with its accelerated cloud transformation. Frequent product launches like SAP Build and strategic collaborations bodes well.
However, the company’s performance is affected due to continued softness in software licenses and support business segments coupled with supply chain constraints, global macroeconomic weakness and geopolitical instability. Also, increasing research & development and sales & marketing expenses coupled with stiff competition in the cloud space are concerns.
(You can read the full research report on SAP here >>>)
Shares of Elevance Health have declined -8.1% over the past year against the Zacks Medical Services industry’s decline of -29.7%.
While margins pressures and a relatively debt-heavy balance sheet are causes for concern, Elevance Health is benefiting from improving top line on the back of premium rate increases and higher memberships. Acquisitions, collaborations and product expansions have enabled the company to strengthen its business portfolio.
Its well-performing Medicare and Medicaid businesses, coupled with several contract wins, are expected to drive its membership going ahead. Growing premiums, stemming from rate increases are aiding the company's results. Elevance Health utilizes excess capital to boost shareholder value.
(You can read the full research report on Elevance Health here >>>)
Shares of Diageo have gained +6.8% over the past six months against the Zacks Beverages - Alcohol industry’s gain of +10.3%. The company’s robust sales growth, organic operating margin expansion, productivity savings and favorable currency impact aided first-half fiscal 2023 results. Effective marketing and exceptional commercial execution further aided the results.
Price/mix gained from a positive mix due to the robust growth in super-premium-plus brands, particularly scotch, tequila and Chinese white spirits. DEO’s margin trends were favorable in the first half, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation.
The company retained its optimistic view for the medium to long term. However, inflationary pressures from higher glass, ocean freight and other transportation costs, and currency headwinds are concerning.
(You can read the full research report on Diageo here >>>)
Other noteworthy reports we are featuring today include SLB Ltd. and Charter Communications, Inc.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schlumberger Limited (SLB) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
Charter Communications, Inc. (CHTR) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
DEO’s margin trends were favorable in the first half, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. Stocks recently featured in the blog include: SAP SE SAP, Elevance Health, Inc. ELV, Diageo plc DEO, SLB Ltd. SLB and Charter Communications, Inc. CHTR. Click to get this free report Schlumberger Limited (SLB) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report Charter Communications, Inc. (CHTR) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Stocks recently featured in the blog include: SAP SE SAP, Elevance Health, Inc. ELV, Diageo plc DEO, SLB Ltd. SLB and Charter Communications, Inc. CHTR. Click to get this free report Schlumberger Limited (SLB) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report Charter Communications, Inc. (CHTR) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. DEO’s margin trends were favorable in the first half, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation.
|
Click to get this free report Schlumberger Limited (SLB) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report Charter Communications, Inc. (CHTR) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: SAP SE SAP, Elevance Health, Inc. ELV, Diageo plc DEO, SLB Ltd. SLB and Charter Communications, Inc. CHTR. DEO’s margin trends were favorable in the first half, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation.
|
Stocks recently featured in the blog include: SAP SE SAP, Elevance Health, Inc. ELV, Diageo plc DEO, SLB Ltd. SLB and Charter Communications, Inc. CHTR. DEO’s margin trends were favorable in the first half, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. Click to get this free report Schlumberger Limited (SLB) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report Charter Communications, Inc. (CHTR) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
6f2f0425-0d4c-4564-850c-59d1ab3effa9
|
727560.0
|
2023-03-31 00:00:00 UTC
|
Top Analyst Reports for SAP, Elevance Health & Diageo
|
DEO
|
https://www.nasdaq.com/articles/top-analyst-reports-for-sap-elevance-health-diageo
|
nan
|
nan
|
Friday, March 31, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including SAP SE (SAP), Elevance Health, Inc. (ELV) and Diageo plc (DEO). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of SAP have outperformed the Zacks Computer - Software industry over the past year (+13.9% vs. -6.1%), reflecting momentum in its cloud business (especially the new Rise with SAP solution) across all regions.
Momentum in SAP’s business technology platform particularly the S/4HANA solutions augurs well. The company’s restructuring plan is expected to better align its operating models and go-to-market approach with its accelerated cloud transformation. Frequent product launches like SAP Build and strategic collaborations bodes well.
However, the company’s performance is affected due to continued softness in software licenses and support business segment coupled with supply chain constraints, global macroeconomic weakness and geopolitical instability. Also, increasing research & development and sales & marketing expenses coupled with stiff competition in the cloud space are concerns.
(You can read the full research report on SAP here >>>)
Shares of Elevance Health have declined -8.1% over the past year against the Zacks Medical Services industry’s decline of -29.7%.
While margins pressures and a relatively debt-heavy balance sheet are causes for concern, Elevance Health is benefiting from improving top line on the back of premium rate increases and higher memberships. Acquisitions, collaborations and product expansions have enabled the company to strengthen its business portfolio.
Its well-performing Medicare and Medicaid businesses, coupled with several contract wins, are expected to drive its membership going ahead. Growing premiums, stemming from rate increases are aiding the company's results. Elevance Health utilizes excess capital to boost shareholder value.
(You can read the full research report on Elevance Health here >>>)
Shares of Diageo have gained +6.8% over the past six months against the Zacks Beverages - Alcohol industry’s gain of +10.3%. The company’s robust sales growth, organic operating margin expansion, productivity savings and favorable currency impact aided first-half fiscal 2023 results. Effective marketing and exceptional commercial execution further aided the results.
Price/mix gained from a positive mix due to the robust growth in super-premium-plus brands, particularly scotch, tequila and Chinese white spirits. DEO’s margin trends were favorable in the first half, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation.
The company retained its optimistic view for the medium to long term. However, inflationary pressures from higher glass, ocean freight and other transportation costs, and currency headwinds are concerning.
(You can read the full research report on Diageo here >>>)
Other noteworthy reports we are featuring today include Schlumberger Limited (SLB), Petróleo Brasileiro S.A. - Petrobras (PBR) and Charter Communications, Inc. (CHTR).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
SAP To Benefit From Continued Momentum in Cloud Business
Strategic Buyouts Aid Elevance Health (ELV), Cost Woes Stay
Diageo's (DEO) Robust Pricing & Premiumization Aid Margins
Featured Reports
Schlumberger (SLB) to Gain on Rising Oilfield Service Demand
Per the Zacks analyst, Schlumberger is well-poised to capitalize on the rising oilfield service demand, as high oil prices have heightened drilling activities. Yet, its huge debt load is concerning.
Pre-Salt Reserves Boosts Petrobras (PBR), Debt Pile Hurts
Petrobras' stakes in Brazil's attractive pre-salt oil reservoirs should boost its earnings outlook. However, the Zacks analyst is concerned over the company's huge debt load of $41.5 billion.
Mobile & Internet Subscriber Gain Benefits Charter (CHTR)
Per the Zacks analyst, higher subscriber strength in residential and commercial internet services along with broadening Spectrum Mobile user base is driving Charter's top line.
U.S. Budget to Aid TransDigm (TDG) Amid Supply Chain Issue
Per the Zacks analyst, expansionary budgetary policy adopted by the U.S. administration should benefit TransDigm. Yet consistent supply chain challenges might hurt the stock.
Favorable GRC Lift Edison International (EIX), Wildfire Woe
Per the Zacks analyst, favorable outcomes from regulatory authorities on GRC (General rate Case) tend to boost Edison International growth. However wildfire risk in its service territories looms large
Product Vitality Aids Acuity Brands (AYI) Despite High Cost
Per the Zacks analyst, Acuity Brands benefits from product vitality, strategic business model and higher pricing. However, high costs and supply chain challenges hurt.
FDA Nod to Reata's (RETA) Rare Disease Drug Fuels Growth
The Zacks Analyst is encouraged by the FDA's recent approval to Reata Pharmaceuticals' Skyclarys for the treatment of Friedreich's ataxia. The drug is the first to be approved in this indication.
New Upgrades
Restructuring Efforts Aid Ameriprise's (AMP) Revenue Growth
Per the Zacks analyst, Ameriprise is well poised for top-line growth given its strategic restructuring efforts and a well-diversified portfolio. Its capital deployment activities also seem impressive.
Hologic (HOLX) Surgical Volume Grows, Product Launches Aid
The Zacks analyst is impressed with Hologic's Surgical business growth on procedural volumes return as well as acceleration from new business lines. New assays within molecular diagnostics aid growth.
Urban Outfitters' (URBN) FP Movement & Nuuly Brand Bodes Well
Per the Zacks analyst, Urban Outfitters' strategic growth initiative, FP Movement is encouraging and has been boosting the brand's revenues. Management is optimistic about the prospects of Nuuly.
New Downgrades
Cost Woes & High Debt Hurt Air Transport Services (ATSG)
The Zacks analyst is pessimistic by ATSG's escalating expenses on fuel due to the current oil price surge. Also, a high debt-to- equity ratio is worrisome.
Higher Input Costs, Weak Demand Ail Huntsman (HUN)
Per the Zacks analyst, higher raw material costs will weigh on margins in the company's Polyurethanes unit. Weaker demand in Europe and China will also hurt sales volumes.
High Input Costs Ail International Flavors' (IFF) Margins
The Zacks analyst is concerned that high costs for raw material, labor and shipping as well as supply chain issues will likely hurt International Flavor' results in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schlumberger Limited (SLB) : Free Stock Analysis Report
Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
Charter Communications, Inc. (CHTR) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read SAP To Benefit From Continued Momentum in Cloud Business Strategic Buyouts Aid Elevance Health (ELV), Cost Woes Stay Diageo's (DEO) Robust Pricing & Premiumization Aid Margins Featured Reports Schlumberger (SLB) to Gain on Rising Oilfield Service Demand Per the Zacks analyst, Schlumberger is well-poised to capitalize on the rising oilfield service demand, as high oil prices have heightened drilling activities. Today's Research Daily features new research reports on 16 major stocks, including SAP SE (SAP), Elevance Health, Inc. (ELV) and Diageo plc (DEO). DEO’s margin trends were favorable in the first half, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation.
|
Today's Research Daily features new research reports on 16 major stocks, including SAP SE (SAP), Elevance Health, Inc. (ELV) and Diageo plc (DEO). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read SAP To Benefit From Continued Momentum in Cloud Business Strategic Buyouts Aid Elevance Health (ELV), Cost Woes Stay Diageo's (DEO) Robust Pricing & Premiumization Aid Margins Featured Reports Schlumberger (SLB) to Gain on Rising Oilfield Service Demand Per the Zacks analyst, Schlumberger is well-poised to capitalize on the rising oilfield service demand, as high oil prices have heightened drilling activities. Click to get this free report Schlumberger Limited (SLB) : Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report Charter Communications, Inc. (CHTR) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read SAP To Benefit From Continued Momentum in Cloud Business Strategic Buyouts Aid Elevance Health (ELV), Cost Woes Stay Diageo's (DEO) Robust Pricing & Premiumization Aid Margins Featured Reports Schlumberger (SLB) to Gain on Rising Oilfield Service Demand Per the Zacks analyst, Schlumberger is well-poised to capitalize on the rising oilfield service demand, as high oil prices have heightened drilling activities. Click to get this free report Schlumberger Limited (SLB) : Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report Charter Communications, Inc. (CHTR) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including SAP SE (SAP), Elevance Health, Inc. (ELV) and Diageo plc (DEO).
|
If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read SAP To Benefit From Continued Momentum in Cloud Business Strategic Buyouts Aid Elevance Health (ELV), Cost Woes Stay Diageo's (DEO) Robust Pricing & Premiumization Aid Margins Featured Reports Schlumberger (SLB) to Gain on Rising Oilfield Service Demand Per the Zacks analyst, Schlumberger is well-poised to capitalize on the rising oilfield service demand, as high oil prices have heightened drilling activities. Today's Research Daily features new research reports on 16 major stocks, including SAP SE (SAP), Elevance Health, Inc. (ELV) and Diageo plc (DEO). DEO’s margin trends were favorable in the first half, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation.
|
4343a8b3-7df7-4a7c-8518-281cd333d950
|
727561.0
|
2023-03-29 00:00:00 UTC
|
Suntory’s New CEO Wants to Spend Over $5 Billion in M&A
|
DEO
|
https://www.nasdaq.com/articles/suntorys-new-ceo-wants-to-spend-over-%245-billion-in-ma
|
nan
|
nan
|
Suntory Beverage and Food Ltd’s (JP:2587, US:STBFY) new CEO, Makiko Ono, is set to lead the group on a new major M&A strategy worth more than $5 billion in value. Ono’s appointment as CEO is a historic move as she is Japan’s first female CEO of a listed company with a market cap of over 1 trillion yen ($7.58 billion).
On the job since March 24, she faces the tough task of creating shareholder value for a company that has had a stagnant share price for the most of the last 10 years.
The chart below from Fintel’s financial metrics and ratios page for Suntory shows the flat cash flow generation from operating activities over the last five years.
Overseas Experience
Ono's professional experience primarily involves spearheading overseas acquisitions, and she happens to be one of the rare female employees working in foreign territories for the company. She intends to apply her proficiency in this area to steer growth by adopting a comparable approach, capitalizing on alterations in consumer habits induced by the COVID-19 pandemic.
Regarding the new strategy, Suntory aims to pursue M&A opportunities worth as much as 700 billion yen over the next few years, with a focus on health-related drinks in markets where the company has little presence. In her overseas work, she led European deals including the acquisition of French fizzy-drinks brand Orangina, and the U.K.'s Lucozade and Ribena.
According to Ono, the impact of COVID-19 and remote work has led to more growth opportunities in products such as energy drinks, tea, and canned coffee. Consumers are becoming more health-conscious both mentally and physically, and Suntory sees potential in this trend.
While Suntory's acquisition strategy has yet to be finalized, the company is already eyeing potential in health-related drinks in the U.S., Asia and other regions.
Gender Boost
Ono's appointment, after 40 years with the same company, is seen as an encouraging sign of change by analysts, although Suntory Beverage and Food falls short of Japan's goal to have 30% of managerial positions filled by women. In lower manager roles, the group's gender diversity still falls short, with the proportion of female managers currently at 6.8% compared with 13% at the parent company, Bloomberg reported.
Ono attributes the gap in gender diversity to the challenges women face in working in factory roles at Suntory Beverage, which sometimes involve night shifts and make it difficult to balance work and family responsibilities. The appointment could be a harbinger of changes in the drinks industry. U.K. rival Diageo PLC (US:DEO) on Tuesday appointed its first female CEO, naming Debra Crew to succeed longtime chief Ivan Menezes.
With Ono's appointment as the new leader, Suntory aims to reinforce its current brands and hasten its expansion into foreign markets in light of Japan's aging population and escalating expenses.
Upside Questions
Ono's ambitious pursuit of mergers and acquisitions has the potential to disrupt the corporate landscape in Japan and assist Suntory in capturing opportunities for growth in novel markets.
Fintel’s consensus target price of 5,578 yen per share suggests the stock could rise 15% over the next year. The Tokyo-traded shares closed Wednesday at 4,920 yen.
Analysts at Nomura are cautious on the stock with a neutral call and 4,900 yen price target, expecting limited upside at current prices.
The firm highlighted in a recent report that it thinks Suntory needs to announce fresh price hikes soon to combat fierce cost inflation if it wants to implement them before the summer season.
Nomura also expects the incoming CEO to make use of the strong balance sheet likely with large-scale M&A.
Institutional Disinterest
Research from the Fintel platform highlighted that Suntory’s stock has been lacking investment from institutions. The Fintel Fund Sentiment Score of 33.13 is bearish on the company, ranking JP:2587 stock in the bottom 25% of the 36,370 globally screened companies for the highest levels of institutional buying activity.
Suntory has a total of 240 institutions on the register that collectively own a total of 11.96 million shares on the register.
The chart below illustrates the declining level of institutional ownership in the stock since the beginning of the pandemic.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
U.K. rival Diageo PLC (US:DEO) on Tuesday appointed its first female CEO, naming Debra Crew to succeed longtime chief Ivan Menezes. Gender Boost Ono's appointment, after 40 years with the same company, is seen as an encouraging sign of change by analysts, although Suntory Beverage and Food falls short of Japan's goal to have 30% of managerial positions filled by women. With Ono's appointment as the new leader, Suntory aims to reinforce its current brands and hasten its expansion into foreign markets in light of Japan's aging population and escalating expenses.
|
U.K. rival Diageo PLC (US:DEO) on Tuesday appointed its first female CEO, naming Debra Crew to succeed longtime chief Ivan Menezes. In lower manager roles, the group's gender diversity still falls short, with the proportion of female managers currently at 6.8% compared with 13% at the parent company, Bloomberg reported. Ono attributes the gap in gender diversity to the challenges women face in working in factory roles at Suntory Beverage, which sometimes involve night shifts and make it difficult to balance work and family responsibilities.
|
U.K. rival Diageo PLC (US:DEO) on Tuesday appointed its first female CEO, naming Debra Crew to succeed longtime chief Ivan Menezes. Ono’s appointment as CEO is a historic move as she is Japan’s first female CEO of a listed company with a market cap of over 1 trillion yen ($7.58 billion). Regarding the new strategy, Suntory aims to pursue M&A opportunities worth as much as 700 billion yen over the next few years, with a focus on health-related drinks in markets where the company has little presence.
|
U.K. rival Diageo PLC (US:DEO) on Tuesday appointed its first female CEO, naming Debra Crew to succeed longtime chief Ivan Menezes. Ono’s appointment as CEO is a historic move as she is Japan’s first female CEO of a listed company with a market cap of over 1 trillion yen ($7.58 billion). Regarding the new strategy, Suntory aims to pursue M&A opportunities worth as much as 700 billion yen over the next few years, with a focus on health-related drinks in markets where the company has little presence.
|
513183f8-ec9d-4b69-b965-b95f70da3b31
|
727562.0
|
2023-03-22 00:00:00 UTC
|
Diageo (DEO) Shares Cross Above 200 DMA
|
DEO
|
https://www.nasdaq.com/articles/diageo-deo-shares-cross-above-200-dma
|
nan
|
nan
|
In trading on Wednesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $177.00, changing hands as high as $178.68 per share. Diageo plc shares are currently trading up about 1.1% on the day. The chart below shows the one year performance of DEO shares, versus its 200 day moving average:
Looking at the chart above, DEO's low point in its 52 week range is $160.09 per share, with $212.33 as the 52 week high point — that compares with a last trade of $178.64.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
Also see:
Blue Chip Dividend Stocks Hedge Funds Are Buying
VOO Split History
TCBX shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Wednesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $177.00, changing hands as high as $178.68 per share. The chart below shows the one year performance of DEO shares, versus its 200 day moving average: Looking at the chart above, DEO's low point in its 52 week range is $160.09 per share, with $212.33 as the 52 week high point — that compares with a last trade of $178.64. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » Also see: Blue Chip Dividend Stocks Hedge Funds Are Buying VOO Split History TCBX shares outstanding history The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Wednesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $177.00, changing hands as high as $178.68 per share. The chart below shows the one year performance of DEO shares, versus its 200 day moving average: Looking at the chart above, DEO's low point in its 52 week range is $160.09 per share, with $212.33 as the 52 week high point — that compares with a last trade of $178.64. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » Also see: Blue Chip Dividend Stocks Hedge Funds Are Buying VOO Split History TCBX shares outstanding history The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Wednesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $177.00, changing hands as high as $178.68 per share. The chart below shows the one year performance of DEO shares, versus its 200 day moving average: Looking at the chart above, DEO's low point in its 52 week range is $160.09 per share, with $212.33 as the 52 week high point — that compares with a last trade of $178.64. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » Also see: Blue Chip Dividend Stocks Hedge Funds Are Buying VOO Split History TCBX shares outstanding history The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Wednesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $177.00, changing hands as high as $178.68 per share. The chart below shows the one year performance of DEO shares, versus its 200 day moving average: Looking at the chart above, DEO's low point in its 52 week range is $160.09 per share, with $212.33 as the 52 week high point — that compares with a last trade of $178.64. Diageo plc shares are currently trading up about 1.1% on the day.
|
208179f5-776d-46a1-90de-a6afab511c53
|
727563.0
|
2023-03-17 00:00:00 UTC
|
Raise a Toast to These 5 Stocks on St. Patrick's Day
|
DEO
|
https://www.nasdaq.com/articles/raise-a-toast-to-these-5-stocks-on-st.-patricks-day
|
nan
|
nan
|
A record number of Americans plan to celebrate the Irish festival of St. Patrick’s Day on Mar 17 this year and spend as much as $6.9 billion, per National Retail Federation. This will be the highest spending on record, up $1 billion from the last year. St. Patrick's Day has also become the largest beer-drinking holiday in the United States, with Irish beers like Guinness and Smithwick’s being the most popular brands.
That being said, let’s raise a toast to the stocks from the sectors most likely to benefit from the day and try to find some hidden luck on this Irish festival. These include Diageo plc DEO, Beyond Meat Inc. BYND, BJ's Restaurants BJRI, McDonald's Corporation MCD, and Sprouts Farmers Market Inc. SFM.
About 61% of Americans are expected to celebrate the festival this year, with average spending of $43.84. This is up from the last year record of 54% of Americans spending. Men tend to spend more than women, shelling out an average of $48.71 versus $39.15 for women.
Special Attractions
About 72% of the people celebrating the day are between the age group of 18 to 34 years, followed by 38% in the age group of 35-54 years and 45% for 55 years plus age. Americans plan to celebrate the holiday in a number of ways, with 80% wearing green, 31% planning a special dinner, 15% attending private parties, and 25% attending a party at a bar or a restaurant. Additionally, 15% plan to attend a St. Patrick’s Day parade.
Further, about 48% of Americans, including children will be spending on holiday-themed food, 43% on beverages, 36% on apparels, 35% on decoration, 25% on candy, 10% on greeting cards and 9% on gifts.
According to the Numerator data, more than one-third of the people celebrating St. Patrick’s Day expect to raise a glass this year. Of the total, 36% plan to purchase alcoholic beverages for the holiday, with beer being the most popular choice (70% of those planning to buy alcohol), followed by spirits (34%) and wine (29%). For those choosing beer, 50% plan to drink American lagers (Budweiser, Coors Original, Miller High Life), 31% are likely to opt for stouts (Guinness, Imperial), and the rest will choose international lagers like Corona Extra, Heineken and Red Stripe.
Thus, this festival, also called St. Paddy’s Day, leads to pots of gold for bars and restaurants. Many restaurants are offering specials and turning treats green, from Krispy Kreme doughnuts to McDonald's Shamrock Shake and Oreo Shamrock McFlurry.
In the United States, St. Patrick's Day is associated with the consumption of corned beef though it is not an Irish national dish. Corned beef is used as a substitute for bacon by Irish-American immigrants and many companies produce this product in various forms.
Stocks to Raise a Toast to
Diageo produces, markets, and sells alcoholic beverages. It offers scotch, whisky, gin, vodka, rum, ready-to-drink products, raki, liqueur, wine, tequila, Canadian whisky, American whiskey, cachaca, and brandy, as well as beer, including cider and non-alcoholic products. Diageo provides its products primarily under the Johnnie Walker, Guinness, Tanqueray, Baileys, Smirnoff, Captain Morgan, Crown Royal, Don Julio, Ciroc, Buchanan's, Casamigos, J&B, and Ketel One brands. The Diageo brand kicked off its biggest drinking campaign with the nonalcoholic product Guinness 0.0. It will distribute 50,000 free pints of zero-alcohol Guinness this weekend.
Diageo gained nearly 3% ahead of the Irish festival and has an estimated earnings growth rate of 8.7% for this fiscal year (ending June 2023). The stock has a Zacks Rank #3 (Hold) and a Growth Score of A.
Beyond Meat is a food company that manufactures, markets and sells plant-based meat products primarily in the United States and internationally. It sells its products under the Beyond Beef, Beyond Chicken, The Beyond Burger, Beyond Meat, Beyond Sausage, Eat What You Love and The Cookout Classic brand names.
Beyond Meat has an estimated earnings growth rate of 39.6% for this year and has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BJ’s Restaurants owns and operates a chain of high-end casual dining restaurants in the United States. The restaurants operate as BJ’s Restaurant & Brewery /BJ’s Restaurant & Brewhouse and/ or BJ’s Pizza & Grill and or BJ’s Grill. The menu offers a wide range of dining options, including everyday lunch and dinner, special occasions and late-night business. BJ’s Restaurant is celebrating the Irish festival with handcrafted beers like Green beer, Key Lime pie jello shots & more, and delicious menu creations.
BJ’s Restaurants also gained nearly 3% ahead of the Irish festival and has an estimated earnings growth rate of 270.6% for this year. The stock has a Zacks Rank #3 and a Growth Score of A.
McDonald's is a leading fast-food chain that currently operates more than 39,000 restaurants in above 100 countries. It mainly operates and franchises quick-service restaurants under the McDonald’s brand. McDonald’s is offering the Shamrock Shake and Oreo Shamrock McFlurry for a limited time.
McDonald's has an estimated earnings growth rate of 4.1% for this year and has a Zacks Rank #3.
Sprouts Farmers is a grocery store that provides fresh, natural, and organic food products in the United States. It has turned the treats green and named them as Roasted Green Cabbage with Green Tahini Sauce, Corned Beef Galette, Vegetable Irish Stew with Cabbage, St. Patrick’s Day Potato Bites and many more.
Sprouts Farmers has an estimated earnings growth rate of 5.4% for this year. It has a Zacks Rank #3 and a Momentum Score of A.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report
McDonald's Corporation (MCD) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
Beyond Meat, Inc. (BYND) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
These include Diageo plc DEO, Beyond Meat Inc. BYND, BJ's Restaurants BJRI, McDonald's Corporation MCD, and Sprouts Farmers Market Inc. SFM. Click to get this free report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report Beyond Meat, Inc. (BYND) : Free Stock Analysis Report To read this article on Zacks.com click here. A record number of Americans plan to celebrate the Irish festival of St. Patrick’s Day on Mar 17 this year and spend as much as $6.9 billion, per National Retail Federation.
|
These include Diageo plc DEO, Beyond Meat Inc. BYND, BJ's Restaurants BJRI, McDonald's Corporation MCD, and Sprouts Farmers Market Inc. SFM. Click to get this free report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report Beyond Meat, Inc. (BYND) : Free Stock Analysis Report To read this article on Zacks.com click here. A record number of Americans plan to celebrate the Irish festival of St. Patrick’s Day on Mar 17 this year and spend as much as $6.9 billion, per National Retail Federation.
|
Click to get this free report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report Beyond Meat, Inc. (BYND) : Free Stock Analysis Report To read this article on Zacks.com click here. These include Diageo plc DEO, Beyond Meat Inc. BYND, BJ's Restaurants BJRI, McDonald's Corporation MCD, and Sprouts Farmers Market Inc. SFM. A record number of Americans plan to celebrate the Irish festival of St. Patrick’s Day on Mar 17 this year and spend as much as $6.9 billion, per National Retail Federation.
|
These include Diageo plc DEO, Beyond Meat Inc. BYND, BJ's Restaurants BJRI, McDonald's Corporation MCD, and Sprouts Farmers Market Inc. SFM. Click to get this free report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report Beyond Meat, Inc. (BYND) : Free Stock Analysis Report To read this article on Zacks.com click here. A record number of Americans plan to celebrate the Irish festival of St. Patrick’s Day on Mar 17 this year and spend as much as $6.9 billion, per National Retail Federation.
|
43608945-26c6-45f8-80bc-c7c69dcd5e19
|
727564.0
|
2023-03-17 00:00:00 UTC
|
Should You Bring The Luck Of The Irish To Your Investmets?
|
DEO
|
https://www.nasdaq.com/articles/should-you-bring-the-luck-of-the-irish-to-your-investmets
|
nan
|
nan
|
For St. Patrick’s Day, you might crack open a Guinness brewed by Diageo PLC (NYSE: DEO). If that inspires you to investigate how Irish stocks may fit into your portfolio, you have quite a few to choose from.
We’ll review a few top performers listed on major U.S. exchanges.
While Guinness is one of the most prominent products of Ireland, there are several U.S.-listed Irish stocks worth celebrating as the world devotes a day to Irish culture. Diageo is based in the U.K., which is not always a selling point among true Ireland aficionados.
It’s possible to buy a basket of Irish stocks by using the iShares MSCI Ireland ETF (NYSEARCA: EIRL)
This ETF is pegged to an index of companies based in Ireland. Many of these stocks are only available in the U.S. over the counter, but a few are listed as American depositary receipts on major exchanges, such as the Nasdaq or NYSE.
The Irish stock index is outperforming the S&P 500, with a year-to-date gain of 12.22%, versus the S&P 500’s 2023 return of 1.79%.
Top holdings include:
CRH PLC (NYSE: CRH)
Flutter Entertainment PLC (OTCMKTS:PDYPY)
Glanbia PLC (OTCMKTS: GLAPF)
Kingspan Group PLC (OTCMKTS:KGSPF)
Kerry Group PLC (OTCMKTS:KRYAF)
Ryanair Holdings PLC ADR (NASDAQ:RYAAY)
Bank of Ireland Group PLC (OTCMKTS: BKRIY)
Icon PLC (NASDAQ: ICLR)
In general, it’s best to zero in on stocks available on the major exchanges, but in the list above, there may be a couple of cases where you may want to consider a stock available over the counter.
Flutter Entertainment
You’ve probably never heard of this over-the-counter-listed company, but you’re almost certainly familiar with one of its properties, FanDuel. Flutter operates a range of online and in-person sports books throughout the globe. In its most recent earnings report, the company cited growth in the U.S. as a key revenue driver.
Flutter is considering listing its stock on a major U.S. exchange, which would be a boon in terms of raising capital. Industry analysts say that would be a shakeup to the U.S. publicly traded gaming industry because it would mean the entry of a huge global player.
CRH
This is yet another unfamiliar name, but CRH is a prominent manufacturer of building materials, with locations throughout the globe, including the U.S.
The NYSE-listed stock has a market cap of $37.53 billion; if it were based in the U.S., it would be an S&P 500 component. Its chart looks good right now, as the stock is getting 50-day support after pulling back from a February breakout and subsequent rally.
Revenue and earnings have slowed recently, but Wall Street expects a 1% increase in profit this year, to $3.78 a share. Next year, that’s seen rising another 11%.
Ryanair
You could consider Ryanair the Southwest Airlines of Europe, although Southwest is more profitable due to U.S. pricing. Ryanair is known for efficiency and avoided holiday-season meltdowns like its U.S. counterpart.
Ryanair began forming a consolidation in February. It’s corrected 13% so far from peak to trough. Shares got slammed the week of March 13, along with the broader market, but the stock’s prognosis is good.
It’s currently outperforming all the major U.S. carriers when it comes to price appreciation.
MarketBeat analyst data show a “moderate-buy” rating, with a price target of $111, an upside of 25.44%.
Revenue growth has been slower in recent quarters, although in 2022, the comparisons over 2021 were easy. Wall Street expects Ryanair to earn $7.74 a share this year, up from a loss of $0.75 a share in 2022. Next year that’s seen rising by 1% to $7.79 a share.
Global Diversification
While it’s a great idea to diversify globally, be sure that your holdings have a specific role in your portfolio. At this juncture, the Irish EIRL ETF can potentially boost a return above what you see with the S&P 500. A big chunk of that is due to the strong performance of CRH, which comprises 15.5% of the ETF.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For St. Patrick’s Day, you might crack open a Guinness brewed by Diageo PLC (NYSE: DEO). Many of these stocks are only available in the U.S. over the counter, but a few are listed as American depositary receipts on major exchanges, such as the Nasdaq or NYSE. Revenue and earnings have slowed recently, but Wall Street expects a 1% increase in profit this year, to $3.78 a share.
|
For St. Patrick’s Day, you might crack open a Guinness brewed by Diageo PLC (NYSE: DEO). Flutter Entertainment PLC (OTCMKTS:PDYPY) Glanbia PLC (OTCMKTS: GLAPF) Kingspan Group PLC (OTCMKTS:KGSPF) Kerry Group PLC (OTCMKTS:KRYAF) Ryanair Holdings PLC ADR (NASDAQ:RYAAY) Bank of Ireland Group PLC (OTCMKTS: BKRIY) Icon PLC (NASDAQ: ICLR) In general, it’s best to zero in on stocks available on the major exchanges, but in the list above, there may be a couple of cases where you may want to consider a stock available over the counter. Revenue and earnings have slowed recently, but Wall Street expects a 1% increase in profit this year, to $3.78 a share.
|
For St. Patrick’s Day, you might crack open a Guinness brewed by Diageo PLC (NYSE: DEO). It’s possible to buy a basket of Irish stocks by using the iShares MSCI Ireland ETF (NYSEARCA: EIRL) This ETF is pegged to an index of companies based in Ireland. Flutter Entertainment PLC (OTCMKTS:PDYPY) Glanbia PLC (OTCMKTS: GLAPF) Kingspan Group PLC (OTCMKTS:KGSPF) Kerry Group PLC (OTCMKTS:KRYAF) Ryanair Holdings PLC ADR (NASDAQ:RYAAY) Bank of Ireland Group PLC (OTCMKTS: BKRIY) Icon PLC (NASDAQ: ICLR) In general, it’s best to zero in on stocks available on the major exchanges, but in the list above, there may be a couple of cases where you may want to consider a stock available over the counter.
|
For St. Patrick’s Day, you might crack open a Guinness brewed by Diageo PLC (NYSE: DEO). We’ll review a few top performers listed on major U.S. exchanges. While Guinness is one of the most prominent products of Ireland, there are several U.S.-listed Irish stocks worth celebrating as the world devotes a day to Irish culture.
|
b210542b-635b-4743-bf5f-5a17324c1207
|
727565.0
|
2023-03-12 00:00:00 UTC
|
Guru Fundamental Report for DEO
|
DEO
|
https://www.nasdaq.com/articles/guru-fundamental-report-for-deo
|
nan
|
nan
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
DIAGEO PLC (ADR) (DEO) is a large-cap growth stock in the Beverages (Alcoholic) industry. The rating using this strategy is 75% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: FAIL
Detailed Analysis of DIAGEO PLC (ADR)
DEO Guru Analysis
DEO Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
Additional Research Links
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO). Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. DIAGEO PLC (ADR) (DEO) is a large-cap growth stock in the Beverages (Alcoholic) industry.
|
Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO).
|
Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO).
|
Of the 22 guru strategies we follow, DEO rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of DIAGEO PLC (ADR) DEO Guru Analysis DEO Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for DIAGEO PLC (ADR) (DEO).
|
4ab4b7e1-738d-4718-be58-4a1078b801aa
|
727566.0
|
2023-03-06 00:00:00 UTC
|
BUD or DEO: Which Is the Better Value Stock Right Now?
|
DEO
|
https://www.nasdaq.com/articles/bud-or-deo%3A-which-is-the-better-value-stock-right-now-2
|
nan
|
nan
|
Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Anheuser-Busch Inbev (BUD) and Diageo (DEO). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Anheuser-Busch Inbev has a Zacks Rank of #2 (Buy), while Diageo has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BUD has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
BUD currently has a forward P/E ratio of 19.08, while DEO has a forward P/E of 21.16. We also note that BUD has a PEG ratio of 1.96. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DEO currently has a PEG ratio of 2.60.
Another notable valuation metric for BUD is its P/B ratio of 1.28. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DEO has a P/B of 8.58.
These metrics, and several others, help BUD earn a Value grade of A, while DEO has been given a Value grade of C.
BUD stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BUD is the superior value option right now.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Anheuser-Busch Inbev (BUD) and Diageo (DEO). BUD currently has a forward P/E ratio of 19.08, while DEO has a forward P/E of 21.16. DEO currently has a PEG ratio of 2.60.
|
Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Anheuser-Busch Inbev (BUD) and Diageo (DEO). Click to get this free report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. BUD currently has a forward P/E ratio of 19.08, while DEO has a forward P/E of 21.16.
|
These metrics, and several others, help BUD earn a Value grade of A, while DEO has been given a Value grade of C. BUD stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BUD is the superior value option right now. Click to get this free report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Anheuser-Busch Inbev (BUD) and Diageo (DEO).
|
These metrics, and several others, help BUD earn a Value grade of A, while DEO has been given a Value grade of C. BUD stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BUD is the superior value option right now. Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Anheuser-Busch Inbev (BUD) and Diageo (DEO). BUD currently has a forward P/E ratio of 19.08, while DEO has a forward P/E of 21.16.
|
3b6847ef-c0e9-4073-839b-ee733e33582e
|
727567.0
|
2023-02-16 00:00:00 UTC
|
BUD or DEO: Which Is the Better Value Stock Right Now?
|
DEO
|
https://www.nasdaq.com/articles/bud-or-deo%3A-which-is-the-better-value-stock-right-now-1
|
nan
|
nan
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Anheuser-Busch Inbev (BUD) and Diageo (DEO). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Anheuser-Busch Inbev and Diageo are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BUD is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
BUD currently has a forward P/E ratio of 18.25, while DEO has a forward P/E of 21.09. We also note that BUD has a PEG ratio of 1.88. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DEO currently has a PEG ratio of 2.59.
Another notable valuation metric for BUD is its P/B ratio of 1.42. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DEO has a P/B of 8.55.
These are just a few of the metrics contributing to BUD's Value grade of B and DEO's Value grade of C.
BUD stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BUD is the superior value option right now.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Anheuser-Busch Inbev (BUD) and Diageo (DEO). BUD currently has a forward P/E ratio of 18.25, while DEO has a forward P/E of 21.09. DEO currently has a PEG ratio of 2.59.
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Anheuser-Busch Inbev (BUD) and Diageo (DEO). Click to get this free report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. BUD currently has a forward P/E ratio of 18.25, while DEO has a forward P/E of 21.09.
|
These are just a few of the metrics contributing to BUD's Value grade of B and DEO's Value grade of C. BUD stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BUD is the superior value option right now. Click to get this free report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Anheuser-Busch Inbev (BUD) and Diageo (DEO).
|
These are just a few of the metrics contributing to BUD's Value grade of B and DEO's Value grade of C. BUD stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BUD is the superior value option right now. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Anheuser-Busch Inbev (BUD) and Diageo (DEO). BUD currently has a forward P/E ratio of 18.25, while DEO has a forward P/E of 21.09.
|
6c076f04-3af9-4b4a-8cd3-bc0e8dde8975
|
727568.0
|
2023-02-13 00:00:00 UTC
|
7 Blue-Chip Stocks to Buy for Safe and Steady Gains
|
DEO
|
https://www.nasdaq.com/articles/7-blue-chip-stocks-to-buy-for-safe-and-steady-gains
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Finding the right blue-chip stocks to buy is likely to be a challenging year again, given a myriad of headwinds. However, stock selection is the key, and multiple growth and blue-chip stocks are expected to outperform.
The robust performance of the top blue-chip stocks to buy will continue offering a buffer against the current macroeconomic backdrop, with their steady gains, healthy dividend yields, and reasonable valuations.
Investing in blue chips during a bear market can provide a win-win situation. For one, the underlying businesses of these stocks tend to be highly resilient, making them reliable and relatively stable during market volatility.
Furthermore, when the bull market eventually returns, what makes these the best blue-ship stocks to buy is that they are likely to not only perform better than other types of stocks due to their superior fundamentals they also have the potential to recover quicker and more sustainably.
CVX Chevron Corporation $171.97
GOLD Barrick Gold $17.93
UNH UnitedHealth $494.25
AAPL Apple $151.01
DEO Diageo’s $171.14
BTI British American Tobacco $36.85
CNSWF Constellation Software $1,789.23
Chevron Corporation (CVX)
Source: tishomir / Shutterstock.com
Chevron Corporation (NYSE:CVX) has had an incredible year, reaping the rewards of sustained global crude oil price growth.
Its floor-to-ceiling success is evident from its sharp increase in market capitalization, consistently posting record profits throughout last year. The markets have been singing praises for Chevron, marking it as a top investor pick, making it one of the best blue-chip stocks to buy right now.
Chevron Corporation recently reported a spectacular full-year result with adjusted earnings of $18.8 per share and sales of $246.3 billion, an impressive increase over the previous year’s earnings and sales of $8.13 and $162.5 million, respectively.
Fueled by record cash flows and earnings, they have successfully increased their investments significantly this year compared to 2022, while their one-year dividend growth rate stands at a dazzling 6%, higher than its 5-year average.
With these results, the CVX stock maintains an incredibly strong position in continuing to grow its top and bottom lines while rewarding its shareholders with dividends.
Barrick Gold (GOLD)
Source: Piotr Swat / Shutterstock.com
Barrick Gold (NYSE:GOLD) is in a strong position to continue producing steady cash flows for many years.
This is partly due to its impressive arsenal of gold mineral reserves, which clocks up to a whopping 69 million ounces. Additionally, the company has displayed astonishing replacement capability, replacing its depletion of gold mineral reserves by 150% compared to the last year alone.
It remains in an excellent position to grow its financial position, evidenced by the $2.7 billion operating cash flow it has produced this year.
GOLD is a great option for those looking to diversify their investment portfolio and benefit from strong dividend growth. Barrick’s impressive balance sheet and its robust cash position of $5.2 billion make it even more attractive, as it has the capabilities to carry out aggressive exploration activity that can further boost its proven reserves.
UnitedHealth (UNH)
Source: Ken Wolter / Shutterstock.com
UnitedHealth (NYSE:UNH) is at the forefront of healthcare, providing unmatched quality and value to its customers.
From health insurance plans to software and consultancy services, each product designed by them is tailored to an individual’s needs. UNH has been a high-quality stock with a robust return on investment over the past several years. The stock has gained over 700% in the past decade and held up remarkably well last year.
Analysts continue to call for the firm to grow its earnings by double-digit margins over the next couple of years. Additionally, another major sweetener for the firm is its stellar dividend profile.
The firm boasts a dividend yield of 1.3%, with dividend growth at over 13 consecutive years. Its payout ratio of 29% suggests it has enough wiggle room to expand its dividend payout making in one of the blue-chip stocks to buy with serious continued growth potential.
Also, its stock trades at just 1.2 times forward sales, 72.6% lower than its sector average.
Apple (AAPL)
Source: Moab Republic / Shutterstock
Apple (NASDAQ:AAPL) has made steady progress in efficiency and profitability over time, and that trend shows no signs of slowing down.
That success could be compounded by further growth in revenue from services, given its already high margins in those areas.
Despite potential risk factors like manufacturing dependence on China and reliance on iPhone sales for major portions of revenue, Apple’s commitment to innovation and customer service makes it well-positioned to continue on its upward trajectory.
It delivered a lackluster result in its first quarter, which was an incredibly challenging period for the tech industry at large. Nevertheless, the quarter had plenty of positives, with an all-time sales record of $20.8 billion in its Services business. Moreover, it generated $34 billion in operational cash flows, returning $25 billion to its shareholders during the quarter.
Diageo (DEO)
Source: IgorGolovniov / Shutterstock.com
Diageo’s (NYSE:DEO) performances last year have proven to be stellar over the past several years. Stout gains were made across their net sales, volume, and profits.
Compared to 2021, they saw a significant 21.4% increase in revenues, an eye-catching number that should boost investor confidence. This can be attributed to the performance of their strong portfolio of brands like Johnnie Walker, Tanqueray, and Guinness.
Diageo has seen rapid growth in the total beverage alcohol sector over the last decade and is already a leader in international spirits. This strong foundation demonstrates its commitment to success and stability for shareholders, with its dependable dividend increasing since 2001.
As its business moves forward, Diageo is aiming for sales growth of 5% to 7% over the next three years and continuing to grow its more profitable premium-tier spirits.
British American Tobacco (BTI)
Source: DutchMen / Shutterstock.com
British American Tobacco (NYSE:BTI) is seeing solid returns from its varied portfolio of brands and its wide reach across Europe and the Middle East.
It has established itself as a reliable dividend payer, with solid earnings resulting from good operating cash conversion. Moreover, BTI will likely experience its turn toward success thanks to its presence in the premium market and continued brand recognition.
British American Tobacco can be an attractive option to add to your portfolio. While it’s known for its traditional combustible products, the company is taking exciting steps toward the future.
BTI has shifted its focus to non-combustible products such as Vuse vapor products and Glo tobacco heating products, providing potential investors with a growth runway that its traditional offerings cannot match. Its Vuse product alone has managed to grab 40% of the U.S. vape market share.
Moreover, it has set an ambitious goal of having 50 million adults use its non-combustible products by 2030 and already has a user base of 21.5 million.
Constellation Software (CNSWF)
Source: Shutterstock
Constellation Software (OTCMKTS:CNSWF) has made a name for itself in the software industry by acquiring and managing vertical market software businesses across its home country of Canada, the U.S., the U.K., and Europe.
This company provides specialized and mission-critical software solutions tailored to specific industries and markets.
The company boasts an excellent track record of growing its top and bottom lines over the past several years. In the past five years, CNSWF stock has soared over 1,450% in the past decade. Additionally, the firm’s profitability, including its gross and net income margins, has grown over 37% and 19% over the past five years. Moreover, the company is looking to reinvest its cash flow into new businesses, which has effectively compounded its value over time.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
The post 7 Blue-Chip Stocks to Buy for Safe and Steady Gains appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
CVX Chevron Corporation $171.97 GOLD Barrick Gold $17.93 UNH UnitedHealth $494.25 AAPL Apple $151.01 DEO Diageo’s $171.14 BTI British American Tobacco $36.85 CNSWF Constellation Software $1,789.23 Chevron Corporation (CVX) Source: tishomir / Shutterstock.com Chevron Corporation (NYSE:CVX) has had an incredible year, reaping the rewards of sustained global crude oil price growth. Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo’s (NYSE:DEO) performances last year have proven to be stellar over the past several years. The robust performance of the top blue-chip stocks to buy will continue offering a buffer against the current macroeconomic backdrop, with their steady gains, healthy dividend yields, and reasonable valuations.
|
CVX Chevron Corporation $171.97 GOLD Barrick Gold $17.93 UNH UnitedHealth $494.25 AAPL Apple $151.01 DEO Diageo’s $171.14 BTI British American Tobacco $36.85 CNSWF Constellation Software $1,789.23 Chevron Corporation (CVX) Source: tishomir / Shutterstock.com Chevron Corporation (NYSE:CVX) has had an incredible year, reaping the rewards of sustained global crude oil price growth. Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo’s (NYSE:DEO) performances last year have proven to be stellar over the past several years. Barrick Gold (GOLD) Source: Piotr Swat / Shutterstock.com Barrick Gold (NYSE:GOLD) is in a strong position to continue producing steady cash flows for many years.
|
CVX Chevron Corporation $171.97 GOLD Barrick Gold $17.93 UNH UnitedHealth $494.25 AAPL Apple $151.01 DEO Diageo’s $171.14 BTI British American Tobacco $36.85 CNSWF Constellation Software $1,789.23 Chevron Corporation (CVX) Source: tishomir / Shutterstock.com Chevron Corporation (NYSE:CVX) has had an incredible year, reaping the rewards of sustained global crude oil price growth. Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo’s (NYSE:DEO) performances last year have proven to be stellar over the past several years. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Finding the right blue-chip stocks to buy is likely to be a challenging year again, given a myriad of headwinds.
|
CVX Chevron Corporation $171.97 GOLD Barrick Gold $17.93 UNH UnitedHealth $494.25 AAPL Apple $151.01 DEO Diageo’s $171.14 BTI British American Tobacco $36.85 CNSWF Constellation Software $1,789.23 Chevron Corporation (CVX) Source: tishomir / Shutterstock.com Chevron Corporation (NYSE:CVX) has had an incredible year, reaping the rewards of sustained global crude oil price growth. Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo’s (NYSE:DEO) performances last year have proven to be stellar over the past several years. UNH has been a high-quality stock with a robust return on investment over the past several years.
|
a982fa7c-28a0-473f-be70-bcb41c76cf28
|
727569.0
|
2023-02-10 00:00:00 UTC
|
The Zacks Analyst Blog Highlights Abbott Laboratories, Boeing, Diageo, Lam Research and Freeport-McMoRan
|
DEO
|
https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-abbott-laboratories-boeing-diageo-lam-research-and
|
nan
|
nan
|
For Immediate Release
Chicago, IL – February 10, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Abbott Laboratories ABT, The Boeing Company BA, Diageo plc DEO, Lam Research Corp. LRCX and Freeport-McMoRan Inc. FCX.
Here are highlights from Thursday’s Analyst Blog:
Top Analyst Reports for Abbott Labs, Boeing and Diageo
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Abbott Laboratories, The Boeing Company and Diageo plc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of Abbott Laboratories have declined -13.7% over the past year against the Zacks Medical - Products industry’s decline of -37.7%. The company’s numbers declined on a year-over-year basis in the latest quarterly release, with sales were negatively impacted by a decline in COVID testing-related sales. Moreover, the decline in U.S. infant formula sales due to manufacturing disruptions dented the quarter’s sales further.
However, Abbott exited the fourth quarter of 2022 with better-than-expected earnings and revenues. Excluding COVID testing sales, worldwide Diagnostics sales grew over 11% led by rapid diagnostics. Within EPD, sales increased 8% organically in the fourth quarter led by double-digit growth across several countries.
Meanwhile, the Diabetes Care business continued to benefit from the growing sales of its flagship, sensor-based continuous glucose monitoring system, FreeStyle Libre.
(You can read the full research report on Abbott Laboratories here >>>)
Shares of Boeing have declined -2.4% over the past year against the Zacks Aerospace - Defense industry’s decline of -7.4%. The company’s 737 MAX program remains a cause of concern in China, thus impacting its expectation of delivery timing and future gradual production rate increases.
Its arch-rival, Airbus, remained quite a step ahead in terms of commercial deliveries during the fourth quarter of 2022. The Russia-Ukraine crisis poses risk for Boeing. However, Boeing remains the largest aircraft manufacturer in the United States, in terms of revenue, orders and deliveries.
Lately, the company has been witnessing solid recovery in its commercial business. The outlook for its defense business also remains optimistic. It holds a strong solvency position in the near term.
(You can read the full research report on Boeing here >>>)
Diageo shares have underperformed the Zacks Beverages - Alcohol industry over the past year (-15.6% vs. -9.5%). The company is facing continued inflationary pressures from increased glass, ocean freight and other transportation costs, and currency headwinds are concerning.
Nevertheless, Diageo’s organic operating margin expansion, productivity savings and favorable currency impact aided Diageo’s first-half fiscal 2023 results. Effective marketing and exceptional commercial execution further aided the results. Price/mix gained from a positive mix due to the robust growth in super-premium-plus brands, particularly scotch, tequila and Chinese white spirits.
DEO’s margin trends were favorable in the first half, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. The company retained its optimistic view for the medium to long term.
(You can read the full research report on Diageo here >>>)
Other noteworthy reports we are featuring today include Lam Research Corp. and Freeport-McMoRan Inc.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Boeing Company (BA) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report
Lam Research Corporation (LRCX) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Stocks recently featured in the blog include: Abbott Laboratories ABT, The Boeing Company BA, Diageo plc DEO, Lam Research Corp. LRCX and Freeport-McMoRan Inc. FCX. DEO’s margin trends were favorable in the first half, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Stocks recently featured in the blog include: Abbott Laboratories ABT, The Boeing Company BA, Diageo plc DEO, Lam Research Corp. LRCX and Freeport-McMoRan Inc. FCX. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. DEO’s margin trends were favorable in the first half, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation.
|
Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Abbott Laboratories ABT, The Boeing Company BA, Diageo plc DEO, Lam Research Corp. LRCX and Freeport-McMoRan Inc. FCX. DEO’s margin trends were favorable in the first half, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation.
|
Stocks recently featured in the blog include: Abbott Laboratories ABT, The Boeing Company BA, Diageo plc DEO, Lam Research Corp. LRCX and Freeport-McMoRan Inc. FCX. DEO’s margin trends were favorable in the first half, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
87af6dbe-198a-4210-9564-af60549a27f5
|
727570.0
|
2023-02-08 00:00:00 UTC
|
Massachusetts Financial Services Cuts Stake in Diageo (DEO)
|
DEO
|
https://www.nasdaq.com/articles/massachusetts-financial-services-cuts-stake-in-diageo-deo
|
nan
|
nan
|
Fintel reports that Massachusetts Financial Services has filed a 13G/A form with the SEC disclosing ownership of 118.81MM shares of Diageo plc (DEO). This represents 5.2% of the company.
In their previous filing dated February 2, 2022 they reported 142.78MM shares and 6.10% of the company, a decrease in shares of 16.78% and a decrease in total ownership of 0.90% (calculated as current - previous percent ownership).
Analyst Price Forecast Suggests 20.71% Upside
As of February 7, 2023, the average one-year price target for Diageo is $208.74. The forecasts range from a low of $138.30 to a high of $261.93. The average price target represents an increase of 20.71% from its latest reported closing price of $172.92.
The projected annual revenue for Diageo is $17,677MM, an increase of 4.50%. The projected annual EPS is $1.78, an increase of 13.63%.
Fund Sentiment
There are 1695 funds or institutions reporting positions in Diageo. This is an increase of 4 owner(s) or 0.24%.
Average portfolio weight of all funds dedicated to US:DEO is 0.6174%, an increase of 2.6941%. Total shares owned by institutions decreased in the last three months by 2.46% to 301,379K shares.
What are large shareholders doing?
VGTSX - Vanguard Total International Stock Index Fund Investor Shares holds 30,066,659 shares representing 1.33% ownership of the company. In it's prior filing, the firm reported owning 29,656,267 shares, representing an increase of 1.36%. The firm decreased its portfolio allocation in DEO by 2.28% over the last quarter.
VDIGX - Vanguard Dividend Growth Fund Investor Shares holds 21,972,876 shares representing 0.97% ownership of the company. No change in the last quarter.
MEIAX - MFS Value Fund A holds 18,568,282 shares representing 0.82% ownership of the company. In it's prior filing, the firm reported owning 18,964,438 shares, representing a decrease of 2.13%. The firm decreased its portfolio allocation in DEO by 0.84% over the last quarter.
VTMGX - Vanguard Developed Markets Index Fund Admiral Shares holds 16,795,049 shares representing 0.74% ownership of the company. In it's prior filing, the firm reported owning 16,354,149 shares, representing an increase of 2.63%. The firm increased its portfolio allocation in DEO by 9.94% over the last quarter.
IEFA - iShares Core MSCI EAFE ETF holds 12,043,976 shares representing 0.53% ownership of the company. In it's prior filing, the firm reported owning 12,083,877 shares, representing a decrease of 0.33%. The firm decreased its portfolio allocation in DEO by 3.73% over the last quarter.
Diageo Background Information
(This description is provided by the company.)
Diageo plc is a multinational alcoholic beverage company, with its headquarters in London, England. It operates from 132 sites around the world. It was the worlds largest distiller before being overtaken by Kweichow Moutai of China in 2017. It is a major distributor of Scotch whisky and other sprits.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fintel reports that Massachusetts Financial Services has filed a 13G/A form with the SEC disclosing ownership of 118.81MM shares of Diageo plc (DEO). Average portfolio weight of all funds dedicated to US:DEO is 0.6174%, an increase of 2.6941%. The firm decreased its portfolio allocation in DEO by 2.28% over the last quarter.
|
Fintel reports that Massachusetts Financial Services has filed a 13G/A form with the SEC disclosing ownership of 118.81MM shares of Diageo plc (DEO). Average portfolio weight of all funds dedicated to US:DEO is 0.6174%, an increase of 2.6941%. The firm decreased its portfolio allocation in DEO by 2.28% over the last quarter.
|
Fintel reports that Massachusetts Financial Services has filed a 13G/A form with the SEC disclosing ownership of 118.81MM shares of Diageo plc (DEO). Average portfolio weight of all funds dedicated to US:DEO is 0.6174%, an increase of 2.6941%. The firm decreased its portfolio allocation in DEO by 2.28% over the last quarter.
|
Fintel reports that Massachusetts Financial Services has filed a 13G/A form with the SEC disclosing ownership of 118.81MM shares of Diageo plc (DEO). Average portfolio weight of all funds dedicated to US:DEO is 0.6174%, an increase of 2.6941%. The firm decreased its portfolio allocation in DEO by 2.28% over the last quarter.
|
07ef3949-1d11-439d-ac82-c00993f332df
|
727571.0
|
2023-02-06 00:00:00 UTC
|
Diageo Launches Partial Tender Offer To Increase Aggregate Equity Stake In East African Breweries
|
DEO
|
https://www.nasdaq.com/articles/diageo-launches-partial-tender-offer-to-increase-aggregate-equity-stake-in-east-african
|
nan
|
nan
|
(RTTNews) - Diageo (DGE.L, DEO), through its indirect subsidiary, Diageo Kenya, has launched a partial tender offer to increase its aggregate equity stake in East African Breweries PLC from its current 50.03% to a maximum of 65%. EABL is a regional leader in beverage alcohol. Although the business is concentrated on three core markets of Kenya, Uganda and Tanzania, its products are sold in more than 10 countries across Africa and beyond.
The tender offer price is Kenyan Shillings 192.00 per ordinary share and the maximum number of shares subject to the tender offer is 118,394,897. The tender offer period will run from 6 February 2023 to 17 March 2023.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - Diageo (DGE.L, DEO), through its indirect subsidiary, Diageo Kenya, has launched a partial tender offer to increase its aggregate equity stake in East African Breweries PLC from its current 50.03% to a maximum of 65%. Although the business is concentrated on three core markets of Kenya, Uganda and Tanzania, its products are sold in more than 10 countries across Africa and beyond. The tender offer period will run from 6 February 2023 to 17 March 2023.
|
(RTTNews) - Diageo (DGE.L, DEO), through its indirect subsidiary, Diageo Kenya, has launched a partial tender offer to increase its aggregate equity stake in East African Breweries PLC from its current 50.03% to a maximum of 65%. The tender offer price is Kenyan Shillings 192.00 per ordinary share and the maximum number of shares subject to the tender offer is 118,394,897. The tender offer period will run from 6 February 2023 to 17 March 2023.
|
(RTTNews) - Diageo (DGE.L, DEO), through its indirect subsidiary, Diageo Kenya, has launched a partial tender offer to increase its aggregate equity stake in East African Breweries PLC from its current 50.03% to a maximum of 65%. The tender offer price is Kenyan Shillings 192.00 per ordinary share and the maximum number of shares subject to the tender offer is 118,394,897. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - Diageo (DGE.L, DEO), through its indirect subsidiary, Diageo Kenya, has launched a partial tender offer to increase its aggregate equity stake in East African Breweries PLC from its current 50.03% to a maximum of 65%. EABL is a regional leader in beverage alcohol. Although the business is concentrated on three core markets of Kenya, Uganda and Tanzania, its products are sold in more than 10 countries across Africa and beyond.
|
05e76bd2-f5e0-409d-9c4f-82a3ad5bb5e5
|
727572.0
|
2023-01-31 00:00:00 UTC
|
BUD or DEO: Which Is the Better Value Stock Right Now?
|
DEO
|
https://www.nasdaq.com/articles/bud-or-deo%3A-which-is-the-better-value-stock-right-now-0
|
nan
|
nan
|
Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Anheuser-Busch Inbev (BUD) or Diageo (DEO). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Anheuser-Busch Inbev has a Zacks Rank of #2 (Buy), while Diageo has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BUD likely has seen a stronger improvement to its earnings outlook than DEO has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
BUD currently has a forward P/E ratio of 18.05, while DEO has a forward P/E of 20.67. We also note that BUD has a PEG ratio of 1.86. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DEO currently has a PEG ratio of 2.54.
Another notable valuation metric for BUD is its P/B ratio of 1.41. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DEO has a P/B of 8.41.
These metrics, and several others, help BUD earn a Value grade of B, while DEO has been given a Value grade of D.
BUD sticks out from DEO in both our Zacks Rank and Style Scores models, so value investors will likely feel that BUD is the better option right now.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Anheuser-Busch Inbev (BUD) or Diageo (DEO). Investors should feel comfortable knowing that BUD likely has seen a stronger improvement to its earnings outlook than DEO has recently. BUD currently has a forward P/E ratio of 18.05, while DEO has a forward P/E of 20.67.
|
These metrics, and several others, help BUD earn a Value grade of B, while DEO has been given a Value grade of D. BUD sticks out from DEO in both our Zacks Rank and Style Scores models, so value investors will likely feel that BUD is the better option right now. Click to get this free report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Anheuser-Busch Inbev (BUD) or Diageo (DEO).
|
These metrics, and several others, help BUD earn a Value grade of B, while DEO has been given a Value grade of D. BUD sticks out from DEO in both our Zacks Rank and Style Scores models, so value investors will likely feel that BUD is the better option right now. Click to get this free report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Anheuser-Busch Inbev (BUD) or Diageo (DEO).
|
DEO currently has a PEG ratio of 2.54. These metrics, and several others, help BUD earn a Value grade of B, while DEO has been given a Value grade of D. BUD sticks out from DEO in both our Zacks Rank and Style Scores models, so value investors will likely feel that BUD is the better option right now. Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Anheuser-Busch Inbev (BUD) or Diageo (DEO).
|
910f2cd5-321c-4c79-be31-64c3b7e47eba
|
727573.0
|
2023-01-27 00:00:00 UTC
|
Diageo (DEO) 1H FY23 Earnings & Sales Rise on Strong Demand
|
DEO
|
https://www.nasdaq.com/articles/diageo-deo-1h-fy23-earnings-sales-rise-on-strong-demand
|
nan
|
nan
|
Diageo plc DEO reported interim results for the first half of fiscal 2023, ended Dec 31, 2022, wherein pre-exceptional earnings per share improved 15.2% year over year to 98.6 pence (in local currency). This was backed by robust sales growth, organic operating margin expansion, productivity savings and favorable currency impact.
Although the company predicts a challenging operating environment for fiscal 2023, it remains confident of the resilience of its business and its ability to navigate through these headwinds. The company is confident about the long-term growth potential of the total beverage alcohol sector and expects to expand its value share by 50% in the sector to 6% by 2030.
The company notes that it is on track to deliver on its medium-term guidance for fiscal 2023-2025, wherein it targets organic sales growth of 5-7% and organic operating profit growth of 6-9%.
Shares of the Zacks Rank #3 (Hold) company have declined 13.8% in the past year compared with the industry’s fall of 4.6%.
Image Source: Zacks Investment Research
1H FY23 Highlights
On a reported basis, net sales increased 18.4% year over year, driven by strong organic growth and favorable currency effects. Organic net sales were up 9.4% year over year due to growth across all regions. The company’s diversified footprint, advantaged portfolio, strong brands and favorable industry trends of premiumization aided top-line growth.
Organic volume improved 1.8% year over year. Price/mix grew 7.6% year over year, reflecting a high-single-digit price contribution to net sales growth. The company’s premium plus brands contributed 57% to net sales growth and 65% to organic sales growth. Its super-premium-plus brands aided organic net sales by 12%.
In North America, Diageo’s largest market, sales accelerated 19% year over year on organic sales growth of 3% and strength across all markets. On a year-over year basis, DEO witnessed sales growth of 13% in Europe, 20% in the Asia Pacific, 9% in Africa and 34% in Latin America and the Caribbean.
Strong growth in Europe was driven by organic growth of 10% and the hyperinflation adjustments related to Turkey. Sales in the Asia-Pacific reflected gains from strength across most markets, notably South East Asia, Travel Retail Asia and the Middle East and India. Growth across all markets, supported by price increases, aided sales growth in Africa. Latin America and the Caribbean sales growth reflected gains in Brazil, Central America, and the Caribbean and Mexico, mainly on price increases and premiumization.
On a year-over year basis, Diageo also reported substantial growth across most categories, with growth of 28% slated for tequila, 19% for scotch, 10% for Spirits, 5% for Rum, 9% for beer and 8% for ready-to-drink. However, Vodka sales declined 2%. Gains in the beer business were driven by growth across all regions and double-digit growth of Guinness in Ireland, Great Britain and North America.
The reported operating profit improved 15.2% year over year due to an improved organic operating profit and the positive impact of currency rates. The reported operating margin declined 92 basis points (bps) as the aforementioned gains were more than offset by exceptional operating items, acquisitions and disposals and other items.
Organic operating profit rose 9.7% year over year, with the organic operating margin expanding 9 bps. Organic operating profit benefited from leverage in operating costs, driven by disciplined cost management, despite inflation. Moreover, growth was driven by supply productivity savings and price increases, which more than offset the higher cost inflation on the gross margin. Organic operating margin also reflected strong operating margin expansion in the Asia Pacific and Europe, partially offset by a decline in North America.
Financials
In the first half of fiscal 2023, Diageo delivered net cash from operating activities of £1,248 million, marking a decline of £699 million year over year. DEO reported strong free cash flow of £817 million, down £758 million from the last-year level due to strong working capital outflow, higher cash tax and interest, as well as increased capital investments.
Diageo is committed to its disciplined approach to capital allocation, primarily to enhance its shareholder value. DEO increased the interim dividend 5% to 30.83 pence per share. This reflects its strong liquidity position and confidence in the long-term health of its business.
Additionally, Diageo expects to complete the remaining £0.3 billion of share repurchases as part of the return of capital program of up to £4.5 billion in February 2023. Further, it expects incremental share buybacks of £0.5 billion in fiscal 2023.
For fiscal 2023, the company expects capital expenditure of £1-£1.2 billion. Moreover, it expects to report strong free cash flow in the second half of fiscal 2023 compared with the first half due to the lapping of more normalized working capital outflows witnessed in the second half of fiscal 2022.
Fiscal 2023 Outlook
In North America, the company expects organic net sales growth to normalize through the second half of fiscal 2023 compared to double-digit growth in the year-ago period. In Europe, organic net sales growth is likely to moderate in the second half of fiscal 2023 as the company’s laps the on-trade channel re-opening and recovery in the prior year. The company anticipates continued organic net sales growth for the Asia Pacific, Latin America and the Caribbean and Africa in the second half of fiscal 2023, although at a moderated pace relative to strong growth in fiscal 2022.
The company expects to continue its revenue management initiatives, including pricing actions, throughout fiscal 2023, to overcome the challenging inflationary environment. It expects marketing investment to increase more than sales growth in the second half of fiscal 2023. The company anticipates the organic operating margin to benefit from continued premiumization trends, everyday efficiencies and operating expense leverage, offset by strong investments in marketing.
The company estimates the tax rate before pre-exceptional items to be 22-24% in fiscal 2023. The effective interest rate is likely to be 4% in fiscal 2023.
Looking for Solid Stocks? Check These
We highlighted three better-ranked companies in the Consumer Staples sector, namely Anheuser-Busch InBev BUD, The Coca-Cola Company KO and Monster Beverage MNST.
Anheuser-Busch InBev, alias AB InBev, is a global brewing company with more than 500 iconic brands. It presently carries a Zacks Rank #2 (Buy). BUD has an expected EPS growth rate of 9.7% for three to five years. The BUD stock has declined 5.1% in the past year.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for AB InBev’s sales and EPS for the current financial year suggests growth of 7.3% and 2.8%, respectively, from the year-ago levels. BUD has a trailing four-quarter earnings surprise of 8.8%, on average.
Coca-Cola, a global beverage giant, presently has a Zacks Rank of 2. KO has a trailing four-quarter earnings surprise of 8.8%, on average. Shares of KO have declined 0.1% in the past year.
The Zacks Consensus Estimate for Coca-Cola’s sales and EPS for the current financial year suggests respective growth of 10.8% and 6.9% from the year-ago period’s reported figures. KO has an expected EPS growth rate of 6.2% for three to five years.
Monster Beverage, a marketer and distributor of energy drinks and alternative beverages, presently has a Zacks Rank #2. MNST has an expected EPS growth rate of 11.4% for three to five years. Shares of MNST have rallied 21.8% in the past year.
The Zacks Consensus Estimate for Monster Beverage’s sales for the current financial year suggests growth of 15.2% from the year-ago period’s reported figure. MNST has a negative earnings surprise of 7.5% in the trailing four quarters, on average.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CocaCola Company (The) (KO) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo plc DEO reported interim results for the first half of fiscal 2023, ended Dec 31, 2022, wherein pre-exceptional earnings per share improved 15.2% year over year to 98.6 pence (in local currency). On a year-over year basis, DEO witnessed sales growth of 13% in Europe, 20% in the Asia Pacific, 9% in Africa and 34% in Latin America and the Caribbean. DEO reported strong free cash flow of £817 million, down £758 million from the last-year level due to strong working capital outflow, higher cash tax and interest, as well as increased capital investments.
|
DEO reported strong free cash flow of £817 million, down £758 million from the last-year level due to strong working capital outflow, higher cash tax and interest, as well as increased capital investments. Click to get this free report CocaCola Company (The) (KO) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report Monster Beverage Corporation (MNST) : Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc DEO reported interim results for the first half of fiscal 2023, ended Dec 31, 2022, wherein pre-exceptional earnings per share improved 15.2% year over year to 98.6 pence (in local currency).
|
Click to get this free report CocaCola Company (The) (KO) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report Monster Beverage Corporation (MNST) : Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc DEO reported interim results for the first half of fiscal 2023, ended Dec 31, 2022, wherein pre-exceptional earnings per share improved 15.2% year over year to 98.6 pence (in local currency). On a year-over year basis, DEO witnessed sales growth of 13% in Europe, 20% in the Asia Pacific, 9% in Africa and 34% in Latin America and the Caribbean.
|
Diageo plc DEO reported interim results for the first half of fiscal 2023, ended Dec 31, 2022, wherein pre-exceptional earnings per share improved 15.2% year over year to 98.6 pence (in local currency). On a year-over year basis, DEO witnessed sales growth of 13% in Europe, 20% in the Asia Pacific, 9% in Africa and 34% in Latin America and the Caribbean. DEO reported strong free cash flow of £817 million, down £758 million from the last-year level due to strong working capital outflow, higher cash tax and interest, as well as increased capital investments.
|
48bf47a0-0576-493c-9193-04f722e11fad
|
727574.0
|
2023-01-26 00:00:00 UTC
|
Consumer Sector Update for 01/26/2023: DEO, LVS, MKC, XLP, XLY
|
DEO
|
https://www.nasdaq.com/articles/consumer-sector-update-for-01-26-2023%3A-deo-lvs-mkc-xlp-xly
|
nan
|
nan
|
Consumer stocks were edging higher premarket Thursday. The Consumer Staples Select Sector SPDR Fund (XLP) was unchanged and the Consumer Discretionary Select Sector SPDR Fund (XLY) was recently rising past 1%.
Diageo (DEO) reported earnings of about 1.01 British pounds ($1.25) per share for the fiscal H1, up from 84.3 pence a year earlier. Diageo was more than 3% lower recently.
Las Vegas Sands (LVS) was up more than 3%, a day after the company reported that its Q4 adjusted loss narrowed to $0.19 per diluted share from a loss of $0.22 a year earlier. Analysts polled by Capital IQ expected an adjusted loss of $0.09.
McCormick (MKC) was slipping past 2% after it reported fiscal Q4 adjusted earnings of $0.73 per diluted share, down from $0.84 a year earlier. Analysts polled by Capital IQ expected $0.87.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo (DEO) reported earnings of about 1.01 British pounds ($1.25) per share for the fiscal H1, up from 84.3 pence a year earlier. The Consumer Staples Select Sector SPDR Fund (XLP) was unchanged and the Consumer Discretionary Select Sector SPDR Fund (XLY) was recently rising past 1%. McCormick (MKC) was slipping past 2% after it reported fiscal Q4 adjusted earnings of $0.73 per diluted share, down from $0.84 a year earlier.
|
Diageo (DEO) reported earnings of about 1.01 British pounds ($1.25) per share for the fiscal H1, up from 84.3 pence a year earlier. The Consumer Staples Select Sector SPDR Fund (XLP) was unchanged and the Consumer Discretionary Select Sector SPDR Fund (XLY) was recently rising past 1%. Analysts polled by Capital IQ expected an adjusted loss of $0.09.
|
Diageo (DEO) reported earnings of about 1.01 British pounds ($1.25) per share for the fiscal H1, up from 84.3 pence a year earlier. The Consumer Staples Select Sector SPDR Fund (XLP) was unchanged and the Consumer Discretionary Select Sector SPDR Fund (XLY) was recently rising past 1%. Las Vegas Sands (LVS) was up more than 3%, a day after the company reported that its Q4 adjusted loss narrowed to $0.19 per diluted share from a loss of $0.22 a year earlier.
|
Diageo (DEO) reported earnings of about 1.01 British pounds ($1.25) per share for the fiscal H1, up from 84.3 pence a year earlier. Las Vegas Sands (LVS) was up more than 3%, a day after the company reported that its Q4 adjusted loss narrowed to $0.19 per diluted share from a loss of $0.22 a year earlier. Analysts polled by Capital IQ expected an adjusted loss of $0.09.
|
16c5693a-6e62-4018-b212-6efb373a3246
|
727575.0
|
2023-01-26 00:00:00 UTC
|
Diageo PLC H1 Profit Rises; Organic Net Sales Up 9.4%
|
DEO
|
https://www.nasdaq.com/articles/diageo-plc-h1-profit-rises-organic-net-sales-up-9.4
|
nan
|
nan
|
(RTTNews) - Diageo PLC (DGE.L, DEO) reported that its first-half profit attributable to parent shareholders was 2.29 billion pounds, an increase of 17% from last year. Earnings per share was 100.6 pence compared to 84.0 pence. Basic earnings per share before exceptional items was 98.6 pence compared to 85.6 pence.
Reported operating profit grew 15.2% to 3.2 billion pounds. Organic operating profit grew 9.7%, for the period.
Reported net sales were 9.4 billion pounds, up 18.4%, primarily reflecting strong organic net sales growth as well as favourable impacts from foreign exchange, mainly due to the strengthening of the US dollar. Organic net sales grew 9.4%, with growth in all regions.
For the medium-term, the Group continues to expect to deliver medium-term guidance of consistent organic net sales growth in the range of 5% to 7% and sustainable organic operating profit growth in the range of 6% to 9% for fiscal 2023 to fiscal 2025.
An interim dividend of 30.83 pence per share will be paid to holders of ordinary shares and US ADRs on register as of 3 March 2023. This represents an increase of 5% on last year's interim dividend.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - Diageo PLC (DGE.L, DEO) reported that its first-half profit attributable to parent shareholders was 2.29 billion pounds, an increase of 17% from last year. Reported net sales were 9.4 billion pounds, up 18.4%, primarily reflecting strong organic net sales growth as well as favourable impacts from foreign exchange, mainly due to the strengthening of the US dollar. For the medium-term, the Group continues to expect to deliver medium-term guidance of consistent organic net sales growth in the range of 5% to 7% and sustainable organic operating profit growth in the range of 6% to 9% for fiscal 2023 to fiscal 2025.
|
(RTTNews) - Diageo PLC (DGE.L, DEO) reported that its first-half profit attributable to parent shareholders was 2.29 billion pounds, an increase of 17% from last year. Reported operating profit grew 15.2% to 3.2 billion pounds. Reported net sales were 9.4 billion pounds, up 18.4%, primarily reflecting strong organic net sales growth as well as favourable impacts from foreign exchange, mainly due to the strengthening of the US dollar.
|
(RTTNews) - Diageo PLC (DGE.L, DEO) reported that its first-half profit attributable to parent shareholders was 2.29 billion pounds, an increase of 17% from last year. Basic earnings per share before exceptional items was 98.6 pence compared to 85.6 pence. Reported net sales were 9.4 billion pounds, up 18.4%, primarily reflecting strong organic net sales growth as well as favourable impacts from foreign exchange, mainly due to the strengthening of the US dollar.
|
(RTTNews) - Diageo PLC (DGE.L, DEO) reported that its first-half profit attributable to parent shareholders was 2.29 billion pounds, an increase of 17% from last year. Earnings per share was 100.6 pence compared to 84.0 pence. Reported operating profit grew 15.2% to 3.2 billion pounds.
|
d7229575-b5f5-475c-8021-621bf9af7308
|
727576.0
|
2023-01-26 00:00:00 UTC
|
7 Blue-Chip Stocks to Buy as a New Bull Market Emerges
|
DEO
|
https://www.nasdaq.com/articles/7-blue-chip-stocks-to-buy-as-a-new-bull-market-emerges
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Buying blue-chip stocks is generally a smart decision. They tend to be established, profitable, name-brand companies marked by reliable growth. All of these positive factors contribute to stable share prices that tend to trend upward over time.
Buying blue-chip stocks in an emerging bull market is even better. If the economy can avoid recession, then we are likely already in the early innings of a bull market. If we enter a recession, these stocks will still be valid choices because they are likely to rebound above current prices over the long-term.
The stocks listed below have generally favorable outlooks paired with dividends, making these stocks wise investments given their dominant market positions and strong fundamentals.
DEO Diageo $174.32
SON Sonoco Products $60.42
D Dominion Energy $62.49
SNY Sanofi $48.78
EPD Enterprise Products Partners $26.41
JD JD.com $62.98
PM Philip Morris $104.06
Diageo (DEO)
Source: IgorGolovniov / Shutterstock.com
Diageo’s (NYSE:DEO) 2022 annual report provides some compelling evidence in favor of buying the stock.
The alcoholic beverages giant increased its net sales, volume, profits, and several other metrics in 2022. Over the course of the year, the firm reported £15.45 million in revenues, a 21.4% increase on a year-over-year basis. These numbers highlight strength in certain segments, particularly with the company’s key brands such as Johnnie Walker, Tanqueray, and Guinness.
One advantage Diageo has is that it operates in a total beverage alcohol sector that has grown quickly over the last decade. Diageo is the leader in international spirits, which has grown faster than the total beverage alcohol sector. Diageo anticipates sales growth in the 7-9% range for the next three years.
The company will continue to grow its premium-tier spirits, which provide increasingly profitable growth, considering their higher margins. Diageo’s dividend which yields just under 2% is highly reliable and has increased every year since 2001.
Sonoco Products (SON)
Source: Pixel-Shot / Shutterstock.com
Sonoco Products (NYSE:SON) stock isn’t one that many investors talk about often, and may not necessarily be among the top blue-chip stocks on many investors’ minds. That said, the company is a leader in its field and a solid option for investors looking for stability.
The South Carolina company provides consumer packaging materials, industrial solutions like boxboard, retail packaging, and point-of-sale displays, among other offerings.
Sonoco Products has been in business for more than 120 years and recently received a Gold Medal rating from EcoVadis, a reviewer of supply chain eco-friendliness. That puts Sonoco Products in the top 5% of 100,000 firms reviewed worldwide.
Sonoco Products’ financial performance has also been stellar. The firm exceeded the high end of guidance with $1.89 billion in sales in Q3, up 34% yearly. Additionally, operating profit increased 67% to $225 million.
Dominion Energy (D)
Source: Felix Mizioznikov / Shutterstock.com
It is an opportune time to bet on Dominion Energy (NYSE:D) stock, a utility company providing electricity and natural gas to customers in 15 states.
In November, the company initiated a business review to identify ways to increase its flagging share price. Dominion will continue to operate as a state-regulated utility company, but also intends to pivot. The company is investing heavily in decarbonization ,which it expects to produce more robust returns, while maintaining its commitment to its dividend.
D stock slid during 2022 from $79 to $61. That kind of performance is more in line with the overall market, which was not expected from this utility company, considering investors expect utility plays to be more defensive in down markets.
Ironically, Dominion Energy saw revenues and income rise in Q3 and throughout 2022. However, the company has provided unsatisfactory returns for shareholders over the past few years. An investment in Dominion Energy today is one that could go either way. That said, I like the upside potential with such a bet at these levels.
Sanofi (SNY)
Source: nitpicker / Shutterstock.com
Sanofi’s (NASDAQ:SNY) stock is underpinned by excellent recent performance, strong long-term prospects, a dividend, and a robust therapeutics pipeline. It is among the leading global blue-chip pharmaceutical firms, and should continue to perform well over the long-term.
Analysts anticipate that Sanofi’s revenues will reach approximately $49 billion in 2023. When the company next releases earnings in February, analysts expect Sanofi will report 2022 revenue slightly below $46 billion. So, Sanofi investors can see that the company has some significant forward-looking growth expected ahead.
Sanofi performed very well in Q3, bringing in €12.48 million in revenues, up 19.7% YoY. On a constant currency basis, those revenues increased at a more modest 9% during the same period.
Sanofi’s Dupixent accounted for €2.314 million in revenue during Q3, representing a 44.6% increase, even considering exchange rates. Sanofi’s hemophilia drug, efansoctocog alfa, was designated as a breakthrough therapy by the FDA and is the first drug of its type to be given that designation in the treatment of hemophilia A.
Enterprise Products Partners (EPD)
Source: Casimiro PT / Shutterstock.com
Enterprise Products Partners (NYSE:EPD) is a somewhat risky pipeline transportation stock with a significant upside.
The midstream firm has a roughly 22% upside based on the spread between its target price and current price, at the time of writing. Adding in a dividend yielding 7.6% that hasn’t been reduced since 1998, and its appeal becomes apparent.
Let’s assume that the company continues to pay the same 49 cent dividend throughout 2023. That will equate to $1.96 of dividend payments in 2023. Let’s also assume that EPD stock reaches its target price this year. That would bring the total value of a share to $33.47, resulting in a return above 30%.
Enterprise Product Partners’ fundamentals improved in Q3 but weren’t exceptional. Its pipeline volumes increased by 6.7 million barrels per day in Q3. Operating income increased from $1.513 billion to $1.712 billion during the same period. Thus, the overarching narrative surrounding EPD stock remains tied to potential returns that depend upon volume and pricing combinations.
JD.com (JD)
Source: Sundry Photography / Shutterstock.com
Chinese E-Commerce firm JD.com (NASDAQ:JD) should fare well in 2023, as revenues continue to rebound after faltering in the middle of last year.
In Q2, JD.com posted 5.4% year-over-year growth based on sales registered in the Chinese Yuan. That was the slowest quarterly growth on record for the company. But in Q3, revenues jumped 11%, as some of the Covid restrictions choking economic activity were eased.
China has further lifted Covid restrictions, which should set the stage for resurgent economic activity across the populous nation, leading to rising revenues for JD.com. Analysts tracking the company believe that to be the case. They anticipate JD.com will record $177 billion in sales in 2023, up from an expected $155 billion in 2022.
JD stock has a roughly 33% upside based on the difference between its current price and target price. It retains an overwhelming ‘buy’ rating and somewhat surprisingly carries a beta of 0.43, meaning it moves with much lower price volatility than the markets.
Philip Morris (PM)
Source: vfhnb12 / Shutterstock.com
Investors could be forgiven for thinking Philip Morris (NYSE:PM) stock’s best days were behind. The company has primarily sold cigarettes, which have seen a steady sales decline over the past decade as smoking rates fall.
That said, the company is steadily divesting its cigarette holdings in favor of smokeless tobacco products. Philip Morris wants at least 50% of its sales to come from smoke-free products by 2025. It is currently on track to make that goal reality, as other traditional cigarette companies simply haven’t divested and pivoted as quickly. Other cigarette giants, including Altria (NYSE:MO) and British American Tobacco (NYSE:BTI) continue to depend on cigarettes for well above 80% of revenues.
Philip Morris controls 59% of the global smokeless tobacco market, putting it in a prime position to control the following stages of evolution in the industry. This positioning as the company with the dominant position in this highly-profitable and growing sector should provide solid returns for investors in PM stock over the long-term.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The post 7 Blue-Chip Stocks to Buy as a New Bull Market Emerges appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
DEO Diageo $174.32 SON Sonoco Products $60.42 D Dominion Energy $62.49 SNY Sanofi $48.78 EPD Enterprise Products Partners $26.41 JD JD.com $62.98 PM Philip Morris $104.06 Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo’s (NYSE:DEO) 2022 annual report provides some compelling evidence in favor of buying the stock. Sonoco Products has been in business for more than 120 years and recently received a Gold Medal rating from EcoVadis, a reviewer of supply chain eco-friendliness. China has further lifted Covid restrictions, which should set the stage for resurgent economic activity across the populous nation, leading to rising revenues for JD.com.
|
DEO Diageo $174.32 SON Sonoco Products $60.42 D Dominion Energy $62.49 SNY Sanofi $48.78 EPD Enterprise Products Partners $26.41 JD JD.com $62.98 PM Philip Morris $104.06 Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo’s (NYSE:DEO) 2022 annual report provides some compelling evidence in favor of buying the stock. Sonoco Products (SON) Source: Pixel-Shot / Shutterstock.com Sonoco Products (NYSE:SON) stock isn’t one that many investors talk about often, and may not necessarily be among the top blue-chip stocks on many investors’ minds. Enterprise Products Partners (EPD) Source: Casimiro PT / Shutterstock.com Enterprise Products Partners (NYSE:EPD) is a somewhat risky pipeline transportation stock with a significant upside.
|
DEO Diageo $174.32 SON Sonoco Products $60.42 D Dominion Energy $62.49 SNY Sanofi $48.78 EPD Enterprise Products Partners $26.41 JD JD.com $62.98 PM Philip Morris $104.06 Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo’s (NYSE:DEO) 2022 annual report provides some compelling evidence in favor of buying the stock. Sonoco Products (SON) Source: Pixel-Shot / Shutterstock.com Sonoco Products (NYSE:SON) stock isn’t one that many investors talk about often, and may not necessarily be among the top blue-chip stocks on many investors’ minds. Dominion Energy (D) Source: Felix Mizioznikov / Shutterstock.com It is an opportune time to bet on Dominion Energy (NYSE:D) stock, a utility company providing electricity and natural gas to customers in 15 states.
|
DEO Diageo $174.32 SON Sonoco Products $60.42 D Dominion Energy $62.49 SNY Sanofi $48.78 EPD Enterprise Products Partners $26.41 JD JD.com $62.98 PM Philip Morris $104.06 Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo’s (NYSE:DEO) 2022 annual report provides some compelling evidence in favor of buying the stock. Over the course of the year, the firm reported £15.45 million in revenues, a 21.4% increase on a year-over-year basis. Diageo’s dividend which yields just under 2% is highly reliable and has increased every year since 2001.
|
9d8bb05d-cf28-4af0-afc5-8f71d45f658f
|
727577.0
|
2023-01-17 00:00:00 UTC
|
Consumer Sector Update for 01/17/2023: WHR, EDU, DEO, XLP, XLY
|
DEO
|
https://www.nasdaq.com/articles/consumer-sector-update-for-01-17-2023%3A-whr-edu-deo-xlp-xly
|
nan
|
nan
|
Consumer stocks were mixed pre-bell Tuesday. The Consumer Staples Select Sector SPDR Fund (XLP) was 0.1% lower and the Consumer Discretionary Select Sector SPDR Fund (XLY) was up 0.1% recently.
Whirlpool (WHR) said it has concluded a strategic review of its business in Europe, the Middle East, and Africa with two agreements with Arcelik. Whirlpool was declining by more than 2% in recent premarket activity.
New Oriental Education & Technology Group (EDU) reported fiscal Q2 non-GAAP net income of $0.10 per diluted American depositary share, swinging from a non-GAAP net loss of $5.31 per ADS a year earlier. Four analysts polled by Capital IQ forecast normalized net income of $0.09. The company's stock was slipping past 3% recently.
Diageo (DEO) was up more than 1% after saying it agreed to acquire the Philippines dark rum brand Don Papa Rum for an upfront payment of 260 million euros ($281.4 million).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo (DEO) was up more than 1% after saying it agreed to acquire the Philippines dark rum brand Don Papa Rum for an upfront payment of 260 million euros ($281.4 million). Whirlpool (WHR) said it has concluded a strategic review of its business in Europe, the Middle East, and Africa with two agreements with Arcelik. New Oriental Education & Technology Group (EDU) reported fiscal Q2 non-GAAP net income of $0.10 per diluted American depositary share, swinging from a non-GAAP net loss of $5.31 per ADS a year earlier.
|
Diageo (DEO) was up more than 1% after saying it agreed to acquire the Philippines dark rum brand Don Papa Rum for an upfront payment of 260 million euros ($281.4 million). Consumer stocks were mixed pre-bell Tuesday. The Consumer Staples Select Sector SPDR Fund (XLP) was 0.1% lower and the Consumer Discretionary Select Sector SPDR Fund (XLY) was up 0.1% recently.
|
Diageo (DEO) was up more than 1% after saying it agreed to acquire the Philippines dark rum brand Don Papa Rum for an upfront payment of 260 million euros ($281.4 million). The Consumer Staples Select Sector SPDR Fund (XLP) was 0.1% lower and the Consumer Discretionary Select Sector SPDR Fund (XLY) was up 0.1% recently. New Oriental Education & Technology Group (EDU) reported fiscal Q2 non-GAAP net income of $0.10 per diluted American depositary share, swinging from a non-GAAP net loss of $5.31 per ADS a year earlier.
|
Diageo (DEO) was up more than 1% after saying it agreed to acquire the Philippines dark rum brand Don Papa Rum for an upfront payment of 260 million euros ($281.4 million). Consumer stocks were mixed pre-bell Tuesday. Whirlpool (WHR) said it has concluded a strategic review of its business in Europe, the Middle East, and Africa with two agreements with Arcelik.
|
c9b994f9-d1de-4511-9653-eb3c5bcc60fe
|
727578.0
|
2023-01-12 00:00:00 UTC
|
BUD or DEO: Which Is the Better Value Stock Right Now?
|
DEO
|
https://www.nasdaq.com/articles/bud-or-deo%3A-which-is-the-better-value-stock-right-now
|
nan
|
nan
|
Investors interested in Beverages - Alcohol stocks are likely familiar with Anheuser-Busch Inbev (BUD) and Diageo (DEO). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Anheuser-Busch Inbev and Diageo are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that BUD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
BUD currently has a forward P/E ratio of 19.28, while DEO has a forward P/E of 21.87. We also note that BUD has a PEG ratio of 2.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DEO currently has a PEG ratio of 2.54.
Another notable valuation metric for BUD is its P/B ratio of 1.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DEO has a P/B of 8.98.
Based on these metrics and many more, BUD holds a Value grade of B, while DEO has a Value grade of D.
BUD has seen stronger estimate revision activity and sports more attractive valuation metrics than DEO, so it seems like value investors will conclude that BUD is the superior option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AnheuserBusch InBev SANV (BUD) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors interested in Beverages - Alcohol stocks are likely familiar with Anheuser-Busch Inbev (BUD) and Diageo (DEO). BUD currently has a forward P/E ratio of 19.28, while DEO has a forward P/E of 21.87. DEO currently has a PEG ratio of 2.54.
|
Based on these metrics and many more, BUD holds a Value grade of B, while DEO has a Value grade of D. BUD has seen stronger estimate revision activity and sports more attractive valuation metrics than DEO, so it seems like value investors will conclude that BUD is the superior option right now. Click to get this free report AnheuserBusch InBev SANV (BUD) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors interested in Beverages - Alcohol stocks are likely familiar with Anheuser-Busch Inbev (BUD) and Diageo (DEO).
|
Based on these metrics and many more, BUD holds a Value grade of B, while DEO has a Value grade of D. BUD has seen stronger estimate revision activity and sports more attractive valuation metrics than DEO, so it seems like value investors will conclude that BUD is the superior option right now. Click to get this free report AnheuserBusch InBev SANV (BUD) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors interested in Beverages - Alcohol stocks are likely familiar with Anheuser-Busch Inbev (BUD) and Diageo (DEO).
|
DEO currently has a PEG ratio of 2.54. Based on these metrics and many more, BUD holds a Value grade of B, while DEO has a Value grade of D. BUD has seen stronger estimate revision activity and sports more attractive valuation metrics than DEO, so it seems like value investors will conclude that BUD is the superior option right now. Investors interested in Beverages - Alcohol stocks are likely familiar with Anheuser-Busch Inbev (BUD) and Diageo (DEO).
|
0bf2b9ae-fad8-4630-812d-371f6924053c
|
727579.0
|
2023-01-06 00:00:00 UTC
|
The Zacks Analyst Blog Highlights Alphabet, Adobe, TotalEnergies, Novo Nordisk and Diageo
|
DEO
|
https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-alphabet-adobe-totalenergies-novo-nordisk-and-diageo
|
nan
|
nan
|
For Immediate Release
Chicago, IL – January 6, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Alphabet Inc. GOOGL, Adobe Inc. ADBE, TotalEnergies SE TTE, Novo Nordisk A/S NVO and Diageo plc DEO.
Here are highlights from Thursday’s Analyst Blog:
Top Analyst Reports for Alphabet, Adobe and TotalEnergies
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc., Adobe Inc. and TotalEnergies SE. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of Alphabet have declined -37% over the past year against the Zacks Tech sector's decline of -33.1% and the S&P 500 index's -19.3% decline. The company is faced with a sluggish advertisement market as a result of macroeconomic forces beyond its control. Additionally, its growing litigation issues and increasing expenses are some of the other concerns.
However, Alphabet's strong cloud division is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space. Further, major updates in its search segment are enhancing the search results.
Also, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. The company’s deepening focus on wearables remains a tailwind. Also, Alphabet’s expanding presence in the autonomous driving space is contributing well.
(You can read the full research report on Alphabet here >>>)
Shares of Adobe have underperformed the Zacks Computer - Software industry over the past year (-35.7% vs. -26.9%) and the broader market's -19.3% decline. The weakening macroeconomic backdrop resulting from Fed tightening in the U.S. and uncertainty in Europe in the wake of the Ukraine war remain major headwinds for Adobe's Digital Media segment. The Zacks analyst also envisions margins pressures on account of elevated expenses.
However, Adobe is benefiting from strong demand for its creative products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth. Additionally, rising subscription revenues and solid momentum across the mobile apps remain major positives.
Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation and solid adoption of Creative Cloud.
(You can read the full research report on Adobe here >>>)
Shares of TotalEnergies have gained +16.9% over the past year against the Zacks Oil and Gas - Refining and Marketing industry’s gain of +24.4%. The company continues to gain from startups, well-spread LNG assets and an expanding upstream portfolio that has exposure to fast-growing hydrocarbon-producing regions.
TotalEnergies streamlines its portfolio through acquisitions, partnerships and divestitures. TotalEnergies is making regular investments to expand the renewable operation and aims to achieve net-zero emissions by 2050. Its production is impacted by the natural decline of oil and natural gas fields.
TotalEnergies remains exposed to acquisition-related risks as these assets contribute a sizable volume to production. TotalEnergies operates in some politically troubled regions, and the ongoing conflict between Russia and Ukraine might affect profitability.
(You can read the full research report on TotalEnergies here >>>)
Other noteworthy reports we are featuring today include Novo Nordisk A/S and Diageo plc.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Novo Nordisk AS (NVO) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Stocks recently featured in the blog include: Alphabet Inc. GOOGL, Adobe Inc. ADBE, TotalEnergies SE TTE, Novo Nordisk A/S NVO and Diageo plc DEO. Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds. Click to get this free report Novo Nordisk AS (NVO) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Stocks recently featured in the blog include: Alphabet Inc. GOOGL, Adobe Inc. ADBE, TotalEnergies SE TTE, Novo Nordisk A/S NVO and Diageo plc DEO. Click to get this free report Novo Nordisk AS (NVO) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report To read this article on Zacks.com click here. Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds.
|
Click to get this free report Novo Nordisk AS (NVO) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Alphabet Inc. GOOGL, Adobe Inc. ADBE, TotalEnergies SE TTE, Novo Nordisk A/S NVO and Diageo plc DEO. Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds.
|
Stocks recently featured in the blog include: Alphabet Inc. GOOGL, Adobe Inc. ADBE, TotalEnergies SE TTE, Novo Nordisk A/S NVO and Diageo plc DEO. Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds. Click to get this free report Novo Nordisk AS (NVO) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
7f80e80f-3c26-45b9-85dd-a9c38a5d1f9e
|
727580.0
|
2023-01-05 00:00:00 UTC
|
Top Analyst Reports for Alphabet, Novo Nordisk & TotalEnergies
|
DEO
|
https://www.nasdaq.com/articles/top-analyst-reports-for-alphabet-novo-nordisk-totalenergies
|
nan
|
nan
|
Thursday, January 5, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc. (GOOGL), Adobe Inc. (ADBE) and TotalEnergies SE (TTE). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of Alphabet have declined -37% over the past year against the Zacks Tech sector's decline of -33.1% and the S&P 500 index's -19.3% decline. The company is faced with a sluggish advertisement market as a result macroeconomic forces beyond its control. Additionally, its growing litigation issues and increasing expenses are are some of the other concerns.
However, Alphabet's strong cloud division is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space. Further, major updates in its search segment are enhancing the search results.
Also, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. The company’s deepening focus on wearables category remains a tailwind. Also, Alphabet’s expanding presence in the autonomous driving space is contributing well.
(You can read the full research report on Alphabet here >>>)
Shares of Adobe have underperformed the Zacks Computer - Software industry over the past year (-35.7% vs. -26.9%) and the broader market's -19.3% decline. The weakening macroeconomic backdrop resulting from Fed tightening in the U.S. and uncertainty in Europe in the wake of the Ukraine war remain major headwinds for Adobe's Digital Media segment. The Zacks analyst also envisions margins pressures on account of elevated expenses.
However, Adobe is benefiting from strong demand for its creative products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products is driving the top-line growth. Additionally, rising subscription revenues and solid momentum across the mobile apps remain major positives.
Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation and solid adoption of Creative Cloud.
(You can read the full research report on Adobe here >>>)
Shares of TotalEnergies have gained +16.9% over the past year against the Zacks Oil and Gas - Refining and Marketing industry’s gain of +24.4%. The company continues to gain from startups, well-spread LNG assets and an expanding upstream portfolio that has exposure to fast-growing hydrocarbon-producing regions.
TotalEnergies streamlines its portfolio through acquisitions, partnerships and divestitures. TotalEnergies is making regular investments to expand the renewable operation and aims to achieve net-zero emissions by 2050. Its production is impacted by the natural decline of oil and natural gas fields.
TotalEnergies remains exposed to acquisition-related risks as these assets contribute a sizable volume to production. TotalEnergies operates in some politically troubled regions, and the ongoing conflict between Russia and Ukraine might affect profitability.
(You can read the full research report on TotalEnergies here >>>)
Other noteworthy reports we are featuring today include Novo Nordisk A/S (NVO), ConocoPhillips (COP) and Diageo plc (DEO).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Alphabet (GOOGL) Benefits From Cloud & Search Initiatives
Adobe (ADBE) Rides on Growing Adoption of Cloud Applications
Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Featured Reports
ConocoPhillips (COP) Banks On Oil-Rich Bakken Shale Assets
The Zacks analyst is upbeat about 750 undrilled Bakken Shale play locations of ConocoPhillips, which will drive oil production growth. Yet, rising production and operating costs are concerning.
Diageo's (DEO) Robust Pricing & Premiumization Aid Margins
Per the Zacks analyst, Diageo has been witnessing robust margin trends driven by its premiumization efforts and pricing actions. It expects continued organic operating margin growth in FY23.
Dividends & Buyback Aid Canadian National (CNI), Expenses Ail
The Zacks analyst likes the shareholder-friendly measures adopted by Canadian National. However, rising operating expenses are concerning as they are likely to keep the bottom line under pressure.
5G Network Deployment Efforts to Aid Crown Castle (CCI)
Per the Zacks Analyst, Crown Castle is set to benefit from high network investments by wireless carriers to deploy 5G networks. However, customer concentration and rising interest rates are key woes.
Cost Efficiency Program Continues to Drive Ecolab (ECL)
The Zacks analyst is upbeat about Ecolab's cost efficiency program despite its operation in a tough competitive landscape.
Strength in Aviation & Outdoor Segments Aids Garmin (GRMN)
Per the Zacks analyst, growing demand for adventure watches is driving Garmin's outdoor segment. Solid momentum across the aftermarket category is contributing well to Aviation segment revenues.
Ubiquiti (UI) Rides on Proprietary Communication Platform
Per the Zacks analyst, Ubiquiti is likely to benefit from a proprietary network communication platform and an upgraded the UniFi ecosystem that is well equipped to meet end-market customer needs.
New Upgrades
Novo Nordisk (NVO) Rides High on Robust Diabetes Drugs Sales
Per the Zacks analyst, Novo Nordisk has a strong presence in the Diabetes Care market which is driving growth. Label expansion of existing drugs including Ozempic and Rybelsus is likely to boost sales
Growth Projects, Kirkland Buyout Aid Agnico Eagle (AEM)
Per the Zacks analyst, the company will benefit from investment in growth projects to expand output. The Kirkland Gold acquisition has also provided an extensive pipeline of exploration projects.
American Airlines (AAL) Rides on Improving Air-Travel Demand
The Zacks Analyst is impressed with the fact that increased air-travel demand is helping American Airlines carry more passengers and witness more revenues.
New Downgrades
High Input Costs, Supply Constraints to Hurt Astec (ASTE)
The Zacks analyst is concerned that elevated input costs and manufacturing challenges due to supply chain and logistic disruptions will continue to weigh on Astec's results.
Assurant (AIZ) Hurt by High Costs and Decreasing Premiums
Per the Zacks analyst, high cost due to higher administrative expenses weigh on margin expansion. Also, lower premiums from lender-placed insurance within Global Housing affect revenue growth.
Inflationary Pressures Hurt Cracker Barrel's (CBRL) Prospects
Per the Zacks analyst, Cracker Barrel's operations are likely to be affected by commodity and wage inflation and supply chain challenges. Also, decline in traffic from pre-pandemic levels is a concern
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ConocoPhillips (COP) : Free Stock Analysis Report
Novo Nordisk AS (NVO) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds. Other noteworthy reports we are featuring today include Novo Nordisk A/S (NVO), ConocoPhillips (COP) and Diageo plc (DEO). Diageo's (DEO) Robust Pricing & Premiumization Aid Margins Per the Zacks analyst, Diageo has been witnessing robust margin trends driven by its premiumization efforts and pricing actions.
|
Click to get this free report ConocoPhillips (COP) : Free Stock Analysis Report Novo Nordisk AS (NVO) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report To read this article on Zacks.com click here. Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds. Other noteworthy reports we are featuring today include Novo Nordisk A/S (NVO), ConocoPhillips (COP) and Diageo plc (DEO).
|
Click to get this free report ConocoPhillips (COP) : Free Stock Analysis Report Novo Nordisk AS (NVO) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report To read this article on Zacks.com click here. Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds. Other noteworthy reports we are featuring today include Novo Nordisk A/S (NVO), ConocoPhillips (COP) and Diageo plc (DEO).
|
Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds. Other noteworthy reports we are featuring today include Novo Nordisk A/S (NVO), ConocoPhillips (COP) and Diageo plc (DEO). Diageo's (DEO) Robust Pricing & Premiumization Aid Margins Per the Zacks analyst, Diageo has been witnessing robust margin trends driven by its premiumization efforts and pricing actions.
|
44941ee7-003e-4bc1-b232-6d75d0e44ff8
|
727581.0
|
2023-01-05 00:00:00 UTC
|
Analysts Predict 16% Upside For FTHI
|
DEO
|
https://www.nasdaq.com/articles/analysts-predict-16-upside-for-fthi
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust BuyWrite Income ETF (Symbol: FTHI), we found that the implied analyst target price for the ETF based upon its underlying holdings is $22.68 per unit.
With FTHI trading at a recent price near $19.47 per unit, that means that analysts see 16.49% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FTHI's underlying holdings with notable upside to their analyst target prices are Bausch Health Companies Inc (Symbol: BHC), Petroleo Brasileiro SA (Symbol: PBR), and Diageo plc (Symbol: DEO). Although BHC has traded at a recent price of $6.87/share, the average analyst target is 63.76% higher at $11.25/share. Similarly, PBR has 42.89% upside from the recent share price of $9.71 if the average analyst target price of $13.88/share is reached, and analysts on average are expecting DEO to reach a target price of $210.00/share, which is 16.82% above the recent price of $179.76. Below is a twelve month price history chart comparing the stock performance of BHC, PBR, and DEO:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
First Trust BuyWrite Income ETF FTHI $19.47 $22.68 16.49%
Bausch Health Companies Inc BHC $6.87 $11.25 63.76%
Petroleo Brasileiro SA PBR $9.71 $13.88 42.89%
Diageo plc DEO $179.76 $210.00 16.82%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
PE History
FFIC Options Chain
LKSD Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
First Trust BuyWrite Income ETF FTHI $19.47 $22.68 16.49% Bausch Health Companies Inc BHC $6.87 $11.25 63.76% Petroleo Brasileiro SA PBR $9.71 $13.88 42.89% Diageo plc DEO $179.76 $210.00 16.82% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FTHI's underlying holdings with notable upside to their analyst target prices are Bausch Health Companies Inc (Symbol: BHC), Petroleo Brasileiro SA (Symbol: PBR), and Diageo plc (Symbol: DEO). Similarly, PBR has 42.89% upside from the recent share price of $9.71 if the average analyst target price of $13.88/share is reached, and analysts on average are expecting DEO to reach a target price of $210.00/share, which is 16.82% above the recent price of $179.76.
|
Three of FTHI's underlying holdings with notable upside to their analyst target prices are Bausch Health Companies Inc (Symbol: BHC), Petroleo Brasileiro SA (Symbol: PBR), and Diageo plc (Symbol: DEO). Similarly, PBR has 42.89% upside from the recent share price of $9.71 if the average analyst target price of $13.88/share is reached, and analysts on average are expecting DEO to reach a target price of $210.00/share, which is 16.82% above the recent price of $179.76. First Trust BuyWrite Income ETF FTHI $19.47 $22.68 16.49% Bausch Health Companies Inc BHC $6.87 $11.25 63.76% Petroleo Brasileiro SA PBR $9.71 $13.88 42.89% Diageo plc DEO $179.76 $210.00 16.82% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
|
Similarly, PBR has 42.89% upside from the recent share price of $9.71 if the average analyst target price of $13.88/share is reached, and analysts on average are expecting DEO to reach a target price of $210.00/share, which is 16.82% above the recent price of $179.76. Three of FTHI's underlying holdings with notable upside to their analyst target prices are Bausch Health Companies Inc (Symbol: BHC), Petroleo Brasileiro SA (Symbol: PBR), and Diageo plc (Symbol: DEO). Below is a twelve month price history chart comparing the stock performance of BHC, PBR, and DEO: Below is a summary table of the current analyst target prices discussed above:
|
First Trust BuyWrite Income ETF FTHI $19.47 $22.68 16.49% Bausch Health Companies Inc BHC $6.87 $11.25 63.76% Petroleo Brasileiro SA PBR $9.71 $13.88 42.89% Diageo plc DEO $179.76 $210.00 16.82% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FTHI's underlying holdings with notable upside to their analyst target prices are Bausch Health Companies Inc (Symbol: BHC), Petroleo Brasileiro SA (Symbol: PBR), and Diageo plc (Symbol: DEO). Similarly, PBR has 42.89% upside from the recent share price of $9.71 if the average analyst target price of $13.88/share is reached, and analysts on average are expecting DEO to reach a target price of $210.00/share, which is 16.82% above the recent price of $179.76.
|
a0aec999-5a84-4964-a996-d036d902576a
|
727582.0
|
2023-01-04 00:00:00 UTC
|
20 Recession-Proof Stocks to Buy Now for 2023
|
DEO
|
https://www.nasdaq.com/articles/20-recession-proof-stocks-to-buy-now-for-2023
|
nan
|
nan
|
Today, I cover the 20 best recession-proof stocks to buy now for 2023. I discuss the industries and sectors that historically outperform during recessions, as well as 20 stock picks for you to explore.
*Stock prices used in the below video were during the trading day of Jan. 3, 2023. The video was published on Jan. 3, 2023.
10 stocks we like better than McDonald's
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and McDonald's wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 1, 2022
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Eric Cuka has positions in AbbVie, Bank of America, Broadcom, Costco Wholesale, Home Depot, and UnitedHealth Group. The Motley Fool has positions in and recommends Bank of America, Bristol-Myers Squibb, Costco Wholesale, Home Depot, NextEra Energy, Palo Alto Networks, and Walmart. The Motley Fool recommends Broadcom, Casey's General Stores, Diageo Plc, Lowe's Companies, UnitedHealth Group, and VMware and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy. Eric Cuka is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
*Stock prices used in the below video were during the trading day of Jan. 3, 2023. The video was published on Jan. 3, 2023. I discuss the industries and sectors that historically outperform during recessions, as well as 20 stock picks for you to explore.
|
*Stock prices used in the below video were during the trading day of Jan. 3, 2023. The video was published on Jan. 3, 2023. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
*Stock prices used in the below video were during the trading day of Jan. 3, 2023. The video was published on Jan. 3, 2023. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
*Stock prices used in the below video were during the trading day of Jan. 3, 2023. The video was published on Jan. 3, 2023. * They just revealed what they believe are the ten best stocks for investors to buy right now... and McDonald's wasn't one of them!
|
fece96c5-12e4-4545-91b2-31eca0813786
|
727583.0
|
2022-12-20 00:00:00 UTC
|
ABEV vs. DEO: Which Stock Is the Better Value Option?
|
DEO
|
https://www.nasdaq.com/articles/abev-vs.-deo%3A-which-stock-is-the-better-value-option-0
|
nan
|
nan
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Ambev (ABEV) and Diageo (DEO). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Ambev has a Zacks Rank of #2 (Buy), while Diageo has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ABEV is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ABEV currently has a forward P/E ratio of 18.39, while DEO has a forward P/E of 21.67. We also note that ABEV has a PEG ratio of 2.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DEO currently has a PEG ratio of 2.51.
Another notable valuation metric for ABEV is its P/B ratio of 2.57. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DEO has a P/B of 8.87.
These metrics, and several others, help ABEV earn a Value grade of B, while DEO has been given a Value grade of C.
ABEV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ABEV is likely the superior value option right now.
Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2023? From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%.
Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ambev S.A. (ABEV) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Ambev (ABEV) and Diageo (DEO). ABEV currently has a forward P/E ratio of 18.39, while DEO has a forward P/E of 21.67. DEO currently has a PEG ratio of 2.51.
|
Click to get this free report Ambev S.A. (ABEV) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Ambev (ABEV) and Diageo (DEO). ABEV currently has a forward P/E ratio of 18.39, while DEO has a forward P/E of 21.67.
|
These metrics, and several others, help ABEV earn a Value grade of B, while DEO has been given a Value grade of C. ABEV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. Click to get this free report Ambev S.A. (ABEV) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Ambev (ABEV) and Diageo (DEO).
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Ambev (ABEV) and Diageo (DEO). ABEV currently has a forward P/E ratio of 18.39, while DEO has a forward P/E of 21.67. DEO currently has a PEG ratio of 2.51.
|
fda3581c-a1a9-4855-8bcc-5c7cb8181e63
|
727584.0
|
2022-12-13 00:00:00 UTC
|
You'll Want to Own This Warren Buffett Stock When the Market Rebounds
|
DEO
|
https://www.nasdaq.com/articles/youll-want-to-own-this-warren-buffett-stock-when-the-market-rebounds
|
nan
|
nan
|
This has been a year many investors would like to forget. The S&P 500 index is down 17% since the start of the year, while the tech-heavy Nasdaq Composite is down more than 29%.
Although no one knows when the market will rebound, every bear market has eventually given way to a bull market. One way you can capitalize on the rebound in stocks is by investing in specialty insurer Markel (NYSE: MKL).
Markel writes insurance policies, but what I find most intriguing is its sizable investment portfolio. While most insurers invest conservatively in bonds, Markel takes a more aggressive approach by investing in stocks and private businesses to boost returns, earning it the nickname Baby Berkshire. Here's why the insurer deserves a spot in your portfolio.
Markel writes insurance policies on things others won't touch
Markel writes insurance policies for individuals and businesses, covering things traditional insurers won't touch. These policies are known as excess and surplus (E&S) because they are above and beyond standard insurance policies.
It offers policies covering small businesses, such as health and fitness centers, cattle farms and ranches, and medical services. Its policies for individuals range from bicycles, classic cars, and watercraft to wedding insurance.
Competition in E&S insurance is less about competing on price and more about using built-up knowledge to manage these unique risks. Markel has done a solid job of managing its risks and writing profitable insurance policies.
One measure of an insurer's profitability is its combined ratio, which is the ratio of claims and expenses divided by premiums collected. A ratio of less than 100% is good because it means a company is writing profitable policies. Over the last decade, Markel's combined ratio has averaged 95.5%.
It takes a more aggressive investment approach compared to peers
Markel does a fine job of writing policies on hard-to-place risk. However, its investment portfolio makes it stand out from other insurers.
Insurers collect premiums up front and don't need to pay out until customers make claims. In the meantime, insurers can put this cash (called the "float") to work in investments. When the policy period ends, the company keeps any funds not used to pay claims and is free to invest them as it sees fit.
Markel invests in high-quality government, municipal, and corporate bonds. And unlike most other insurers, Markel also invests significantly in equities and private companies -- 33% of its $21 billion investment portfolio is in equities. Some of Markel's largest investments include Berkshire Hathaway, Brookfield Asset Management, Alphabet, Home Depot, Deere & Co., Diageo, and Amazon.
The insurer also operates a Markel Venture segment, through which it owns a controlling interest in businesses outside of insurance. Some of its investments include luxury handbags, heavy construction machinery, homebuilders, and building supplies.
Its approach to investing in stocks and private companies is similar to that of Warren Buffett and Berkshire Hathaway: It seeks out high-quality, honest management teams, good capital discipline, and a reasonable acquisition price and intends to hold these investments for a long time.
Warren Buffett is already a huge fan of insurers because of the cash flow they generate. This, combined with Markel's similar investment principles, is likely why Berkshire Hathaway bought a stake in the specialty insurer for the first time this year, adding over 467,000 shares worth more than $600 million as of this writing.
Stellar cash flows from its insurance business will help grow its investment portfolio
Markel has done a stellar job of directing its investments in publicly and privately traded companies, but this year, those investments have struggled along with the rest of the market. Its investment losses through three-quarters of this year total $2.2 billion after posting gains of $1.1 billion in the same period last year.
Despite this, the stock is still up more than 4% this year as its insurance business keeps humming along. Its earned premiums are up 18% from the year before, driven by higher volumes, a favorable pricing environment, and expanded product offerings.
The company's free cash flow, or cash left over after paying for operations and capital expenditures, was $860 million in the third quarter. Markel can put this cash to work in more investments and take advantage of higher interest rates and discounted stock prices -- so when the market rebounds, this company will be in an excellent position to reap the rewards.
10 stocks we like better than Markel
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Markel wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 1, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Courtney Carlsen has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Berkshire Hathaway, Brookfield Asset Management, Home Depot, and Markel. The Motley Fool recommends Deere and Diageo Plc and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, short January 2023 $200 puts on Berkshire Hathaway, and short January 2023 $265 calls on Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Some of Markel's largest investments include Berkshire Hathaway, Brookfield Asset Management, Alphabet, Home Depot, Deere & Co., Diageo, and Amazon. This, combined with Markel's similar investment principles, is likely why Berkshire Hathaway bought a stake in the specialty insurer for the first time this year, adding over 467,000 shares worth more than $600 million as of this writing. Markel can put this cash to work in more investments and take advantage of higher interest rates and discounted stock prices -- so when the market rebounds, this company will be in an excellent position to reap the rewards.
|
Markel writes insurance policies on things others won't touch Markel writes insurance policies for individuals and businesses, covering things traditional insurers won't touch. Some of Markel's largest investments include Berkshire Hathaway, Brookfield Asset Management, Alphabet, Home Depot, Deere & Co., Diageo, and Amazon. The Motley Fool recommends Deere and Diageo Plc and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, short January 2023 $200 puts on Berkshire Hathaway, and short January 2023 $265 calls on Berkshire Hathaway.
|
While most insurers invest conservatively in bonds, Markel takes a more aggressive approach by investing in stocks and private businesses to boost returns, earning it the nickname Baby Berkshire. Markel writes insurance policies on things others won't touch Markel writes insurance policies for individuals and businesses, covering things traditional insurers won't touch. Stellar cash flows from its insurance business will help grow its investment portfolio Markel has done a stellar job of directing its investments in publicly and privately traded companies, but this year, those investments have struggled along with the rest of the market.
|
Markel writes insurance policies on things others won't touch Markel writes insurance policies for individuals and businesses, covering things traditional insurers won't touch. Its approach to investing in stocks and private companies is similar to that of Warren Buffett and Berkshire Hathaway: It seeks out high-quality, honest management teams, good capital discipline, and a reasonable acquisition price and intends to hold these investments for a long time. Despite this, the stock is still up more than 4% this year as its insurance business keeps humming along.
|
07f313af-32f5-49d1-882b-6149f0f983cf
|
727585.0
|
2022-12-11 00:00:00 UTC
|
3 Consumer Staples Stocks To Watch This Week
|
DEO
|
https://www.nasdaq.com/articles/3-consumer-staples-stocks-to-watch-this-week
|
nan
|
nan
|
Consumer staples stocks are companies that produce and sell products that have the label of essential or necessary for everyday life. These are products that people will continue to buy, even during difficult economic times, because they are considered essential for maintaining their daily routines. Examples of consumer staples products include food, beverages, household goods, personal care items, and other similar products.
Consumer staples stocks are generally considered to be a defensive investment because they are not as sensitive to economic downturns as other types of stocks. This makes them a popular choice for investors who are looking to protect their portfolios from market volatility. With this in mind, here are three consumer staples stocks to watch in the stock market this week.
Consumer Staples Stocks To Watch Now
Diageo plc (NYSE: DEO)
Colgate-Palmolive Company (NYSE: CL)
The Hershey Company (NYSE: HSY)
Diageo (DEO Stock)
Diageo (DEO) is a global leader in the premium drinks industry. The British-based multinational produces and distributes an impressive range of beer, wine, spirits, and ready-to-drink premixes for consumers worldwide. Diageo’s portfolio of products includes leading brands such as Smirnoff Vodka, Guinness Stout, Johnnie Walker whiskey, Baileys liqueur, and more.
In November, Diaego announced it will acquire Balcones Distilling. In detail, Balcones is a Texas craft distiller. As well as one of the leading producers of American Single Malt Whisky in the United States. What’s more, Claudia Schubert, President, of Diageo North America, said, “We are delighted to welcome Balcones Distilling into Diageo. The Balcones team are true innovators and pioneers in the emerging American Single Malt and Texas whisk(e)y movements, and their super premium plus whiskies are highly complementary to our whisk(e)y portfolio.“
So far in 2022, shares of DEO stock are down 16.18% year-to-date. However, in the last month of trading activity, DEO stock has recovered by 6.97%. As we head into Monday morning’s trading session, DEO stock will look to open at around 185.18 a share based on Friday’s close of after-hour trading.
Source: TD Ameritrade TOS
[Read More] What Happens To Stocks During A Recession?
Colgate-Palmolive (CL Stock)
Colgate-Palmolive is one of the world’s leading consumer product companies. With a portfolio of trusted brands that span oral care, personal care, home care, pet nutrition, and fabric care products, Colgate-Palmolive meets a wide variety of consumer needs. Moving along, at the end of October, the company announced its third-quarter 2022 financial results.
In the report, Colgate-Palmolive announced Q3 2022 earnings of $0.74 per share and revenue of $4.5 billion for Q3. This is versus consensus estimates, which were earnings of $0.74 per share, along with revenue of $4.5 billion. Additionally, Colgate-Palmolive also said it now estimates FY 2022 earnings in the range of $2.95 to $2.99 per share along with revenue of approximately $17.8 billion.
In 2022 so far, shares of CL stock are down 8.05%, though they are still outperforming the overall markets year-to-date. Meanwhile, in the last month of trading, CL stock has bounced by 4.30% as of Friday’s closing bell at $77.78 a share.
Source: TD Ameritrade TOS
[Read More] 3 Defense Stocks To Watch In The Stock Market Now
Hershey Company (HSY Stock)
Hershey Company (HSY) is a leading global confectionery and snacking company. In brief, the company creates some of the best-known and most beloved brands across the globe. Today, HSY shareholders enjoy an annual dividend yield of 1.75%.
Just last month, the company announced its third-quarter 2022 financial and operating results. Diving in, Hershey reported Q3 2022 earnings of $2.17 per share and revenue of $2.7 billion. For context, this is versus the street’s consensus estimates which were earnings of $2.07 per share, and revenue of $2.6 billion. Additionally, the company notched in a 15.6% increase in revenue versus the same period, in 2021. Moreover, Hershey said it now expects FY 2022 earnings of $8.20 to $8.27 per share and revenue estimates of $10.23 billion to $10.32 billion.
Aside from that, year-to-date shares of HSY stock have advanced by 22.55%, outperforming the broader markets so far in 2022. Over the last month of trading, HSY stock has increased another 8.55% as of Friday’s closing bell at $236.77 a share.
Source: TD Ameritrade TOS
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel.
CLICK HERE RIGHT NOW!!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Consumer Staples Stocks To Watch Now Diageo plc (NYSE: DEO) Colgate-Palmolive Company (NYSE: CL) The Hershey Company (NYSE: HSY) Diageo (DEO Stock) Diageo (DEO) is a global leader in the premium drinks industry. The Balcones team are true innovators and pioneers in the emerging American Single Malt and Texas whisk(e)y movements, and their super premium plus whiskies are highly complementary to our whisk(e)y portfolio.“ So far in 2022, shares of DEO stock are down 16.18% year-to-date. However, in the last month of trading activity, DEO stock has recovered by 6.97%.
|
Consumer Staples Stocks To Watch Now Diageo plc (NYSE: DEO) Colgate-Palmolive Company (NYSE: CL) The Hershey Company (NYSE: HSY) Diageo (DEO Stock) Diageo (DEO) is a global leader in the premium drinks industry. The Balcones team are true innovators and pioneers in the emerging American Single Malt and Texas whisk(e)y movements, and their super premium plus whiskies are highly complementary to our whisk(e)y portfolio.“ So far in 2022, shares of DEO stock are down 16.18% year-to-date. However, in the last month of trading activity, DEO stock has recovered by 6.97%.
|
Consumer Staples Stocks To Watch Now Diageo plc (NYSE: DEO) Colgate-Palmolive Company (NYSE: CL) The Hershey Company (NYSE: HSY) Diageo (DEO Stock) Diageo (DEO) is a global leader in the premium drinks industry. The Balcones team are true innovators and pioneers in the emerging American Single Malt and Texas whisk(e)y movements, and their super premium plus whiskies are highly complementary to our whisk(e)y portfolio.“ So far in 2022, shares of DEO stock are down 16.18% year-to-date. However, in the last month of trading activity, DEO stock has recovered by 6.97%.
|
Consumer Staples Stocks To Watch Now Diageo plc (NYSE: DEO) Colgate-Palmolive Company (NYSE: CL) The Hershey Company (NYSE: HSY) Diageo (DEO Stock) Diageo (DEO) is a global leader in the premium drinks industry. The Balcones team are true innovators and pioneers in the emerging American Single Malt and Texas whisk(e)y movements, and their super premium plus whiskies are highly complementary to our whisk(e)y portfolio.“ So far in 2022, shares of DEO stock are down 16.18% year-to-date. However, in the last month of trading activity, DEO stock has recovered by 6.97%.
|
8876b388-d613-49e7-b90b-a14ecc1e7186
|
727586.0
|
2022-12-09 00:00:00 UTC
|
The Zacks Analyst Blog Highlights The Home Depot, Diageo, Enbridge, eBay, and Laboratory Corporation of America
|
DEO
|
https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-the-home-depot-diageo-enbridge-ebay-and-laboratory
|
nan
|
nan
|
For Immediate Release
Chicago, IL – December 9, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: The Home Depot, Inc. HD, Diageo plc DEO, Enbridge Inc. ENB, eBay Inc. EBAY, and Laboratory Corp. of America Holdings LH.
Here are highlights from Thursday’s Analyst Blog:
Top Analyst Reports for Home Depot, Diageo and Enbridge
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including The Home Depot, Inc., Diageo plc and Enbridge Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of Home Depot have modestly lagged rival Lowe's (LOW) and the broader market this year (-22.9% vs. -20% for LOW and -18.7% for the S&P 500 index). The company reported soft gross margin in the fiscal third quarter driven by higher supply chain investments. Higher inventory levels and interest expense also remain concerning.
However, Home Depot reported its 10th straight quarter of earnings and sales beat in the fiscal third quarter. Results also outpaced our estimate in Q3. It continues to gain from strong demand for home-improvement projects, robust housing market trends and ongoing investments.
It also witnessed continued strength in both Pro and DIY categories, and digital momentum. Its interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters, aiding digital sales.
(You can read the full research report on Home Depot here >>>)
Shares of Diageo have underperformed the Zacks Beverages - Alcohol industry over the past year (-9.4% vs. -1.5%). The company is facing continued inflationary pressures and currency headwinds that are concerning. However, recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains aided Diageo’s fiscal 2022 results.
It witnessed sales, operating margin and earnings growth driven by organic sales growth across all regions. Price/mix gained from a positive mix due to the robust growth in super-premium-plus brands, particularly scotch, tequila and Chinese white spirits.
DEO’s margin trends were favorable in fiscal 2022, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. It provided a decent view for fiscal 2023, with net sales growth expected across North America, Europe and Asia-Pacific.
(You can read the full research report on Diageo here >>>)
Enbridge shares have gained +3.9% over the past year against the Zacks Oil and Gas - Production and Pipelines industry’s gain of +11.1%. The company has the longest and most sophisticated oil and liquids pipeline system in the world, which spreads across 17,809 miles. Hence, a significant portion of the midstream operator’s earnings is generated from transportation operations, driven by a string of long-term contracts.
Enbridge announced the increase of its annualized common share dividend to C$3.55 per share, thereby marking a dividend increase for 28 straight years. The company expects to put more than C$10 billion of growth projects into service in 2024 and beyond. This is expected to generate significant EBITDA growth in the coming years.
However, ENB has significant debt exposure since there has been a weakness in its operations. Also, Enbridge has mostly been yielding lower dividends than the industry over the past year. As such, the stock warrants a cautious stance.
(You can read the full research report on Enbridge here >>>)
Other noteworthy reports we are featuring today include eBay Inc., and Laboratory Corp. of America Holdings.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report
eBay Inc. (EBAY) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Enbridge Inc (ENB) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
DEO’s margin trends were favorable in fiscal 2022, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. Stocks recently featured in the blog include: The Home Depot, Inc. HD, Diageo plc DEO, Enbridge Inc. ENB, eBay Inc. EBAY, and Laboratory Corp. of America Holdings LH. Click to get this free report Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report eBay Inc. (EBAY) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Stocks recently featured in the blog include: The Home Depot, Inc. HD, Diageo plc DEO, Enbridge Inc. ENB, eBay Inc. EBAY, and Laboratory Corp. of America Holdings LH. Click to get this free report Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report eBay Inc. (EBAY) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. DEO’s margin trends were favorable in fiscal 2022, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation.
|
Click to get this free report Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report eBay Inc. (EBAY) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: The Home Depot, Inc. HD, Diageo plc DEO, Enbridge Inc. ENB, eBay Inc. EBAY, and Laboratory Corp. of America Holdings LH. DEO’s margin trends were favorable in fiscal 2022, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation.
|
Stocks recently featured in the blog include: The Home Depot, Inc. HD, Diageo plc DEO, Enbridge Inc. ENB, eBay Inc. EBAY, and Laboratory Corp. of America Holdings LH. DEO’s margin trends were favorable in fiscal 2022, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. Click to get this free report Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report eBay Inc. (EBAY) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
aac49ecc-3730-4d56-9723-6f58e5ddf600
|
727587.0
|
2022-12-08 00:00:00 UTC
|
Top Analyst Reports for Home Depot, Diageo & Enbridge
|
DEO
|
https://www.nasdaq.com/articles/top-analyst-reports-for-home-depot-diageo-enbridge
|
nan
|
nan
|
Thursday, December 8, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including The Home Depot, Inc. (HD), Diageo plc (DEO) and Enbridge Inc. (ENB). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of Home Depot have modestly lagged rival Lowe's (LOW) and the broader market this year (-22.9% vs. -20% for LOW and -18.7% for the S&P 500 index). The company reported soft gross margin in the fiscal third quarter driven by higher supply chain investments. Higher inventory levels and interest expense also remain concerning.
However, Home Depot reported 10th straight quarter of earnings and sales beat in the fiscal third quarter. Results also outpaced our estimate in Q3. It continues to gain from strong demand for home-improvement projects, robust housing market trends and ongoing investments.
It also witnessed continued strength in both Pro and DIY categories, and digital momentum. Its interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters, aiding digital sales.
(You can read the full research report on Home Depot here >>>)
Shares of Diageo have underperformed the Zacks Beverages - Alcohol industry over the past year (-9.4% vs. -1.5%). The company is facing continued inflationary pressures and currency headwinds are concerning. However, recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains aided Diageo’s fiscal 2022 results.
It witnessed sales, operating margin and earnings growth in driven by organic sales growth across all regions. Price/mix gained from a positive mix due to the robust growth in super-premium-plus brands, particularly scotch, tequila and Chinese white spirits.
DEO’s margin trends were favorable in fiscal 2022, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. It provided a decent view for fiscal 2023, with net sales growth expected across North America, Europe and Asia-Pacific.
(You can read the full research report on Diageo here >>>)
Enbridge shares have gained +3.9% over the past year against the Zacks Oil and Gas - Production and Pipelines industry’s gain of +11.1%. The company has the longest and most sophisticated oil and liquids pipeline system in the world, which spreads across 17,809 miles. Hence, a significant portion of the midstream operator’s earnings is generated from transportation operations, driven by a string of long-term contracts.
Enbridge announced the increase of its annualized common share dividend to C$3.55 per share, thereby marking a dividend increase for 28 straight years. The company expects to put more than C$10 billion of growth projects into service in 2024 and beyond. This is expected to generate significant EBITDA growth in the coming years.
However, ENB has significant debt exposure since there has been a weakness in its operations. Also, Enbridge has mostly been yielding lower dividend than the industry over the past year. As such, the stock warrants a cautious stance.
(You can read the full research report on Enbridge here >>>)
Other noteworthy reports we are featuring today include Marathon Petroleum Corporation (MPC), eBay Inc. (EBAY), and Laboratory Corporation of America Holdings (LH).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Focus on Pro Customers to Aid Home Depot's (HD) Top Line
Diageo's (DEO) Robust Pricing & Premiumization Aid Margins
Enbridge (ENB) to Gain From $8B Midstream Growth Projects
Featured Reports
Strength in Managed Payments Offerings Benefits eBay (EBAY)
Per the Zacks analyst, eBay is witnessing solid momentum among sellers on the back of its robust managed payments offerings.
LabCorp (LH) Gains from Innovation, Testing Demand Drop Ails
The Zacks analyst is impressed with LabCorp's continued spree of new product launches in high-growth areas. Yet, a major decrease in COVID-19 PCR and antibody testing sales is concerning.
Ryanair (RYAAY) Rides on Improved Traffic Amid Rising Costs
The Zacks Analyst is impressed with Ryanair's improved traffic growth, which implies increased passenger volume. High operating costs due to rising fuel expenses might hurt the bottom line.
Lamar (LAMR) to Ride the Growth Curve on Strategic Buyouts
Per the Zacks Analyst, Lamar's strategic acquisitions of outdoor advertising assets in its existing and new markets bodes well for growth. However, stiff competition from other forms of media is a woe
Improving Occupancy Aids Norwegian Cruise (NCLH), Costs High
Per the Zacks analyst, Norwegian Cruise is likely to benefit from improving occupancy, relaxation in COVID-related protocols and fleet expansion efforts. However, inflationary pressures pose concerns.
Prothena (PRTA) Candidates Promising, Competition a Concern
Per the Zacks analyst, Prothena's pipeline candidates promise potential and the pipeline progress has been encouraging. However, competition from bigwigs in targeted markets is stiff.
Semtech (SMTC) Rides on Growing Adoption of LoRa Solutions
Per the Zacks analyst, Semtech is benefiting from increasing demand for its LoRa devices and LoRaWAN standard owing to their various use cases in different industries.
New Upgrades
Marathon (MPC) Gains from Sale of Speedway Retail Unit
The Zacks analyst likes Marathon's sale of Speedway business, which provided a much-needed cash infusion and came with a supply agreement ensuring a steady revenue stream.
MRC Global (MRC) Rides on Strength in Gas Utility Sector
Per the Zacks analyst, MRC Global is poised to benefit from strength in its gas utilities sector due to distribution integrity upgrade programs and new home construction.
Signet's (SIG) Omni-Channel Initiatives Appear Encouraging
Per the Zacks analyst, Signet is integrating its physical stores with advanced virtual experiences through data-driven in-store consultations and services like buy online pickup in-store option.
New Downgrades
Rate Hikes & Subsidiary Dependence Ail Southwest Gas (SWX)
Per the Zacks analyst Southwest Gas's performance will get impacted as rising interest rates will surge borrowing cost. Lower than expected performance from subsidiaries could impact SWX's prospects.
Soft Product Shipment & Supply Chain Woes to Hurt Dolby (DLB)
Per the Zacks analyst, pandemic induced global supply chain troubles and higher product costs is a major concern for Dolby. Weakness in product shipment is an added concern
Lincoln National (LNC) Weak on High Costs, Mortality Claims
Per the Zacks Analyst, a high benefits expense level can dampen dent the company's margins. Continued incidence of COVID-related mortality remains a concern.
Just Released: Zacks Unveils the Top 5 EV Stocks for 2022
For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.
>>Send me my free report revealing the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report
eBay Inc. (EBAY) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Enbridge Inc (ENB) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
DEO’s margin trends were favorable in fiscal 2022, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. Today's Research Daily features new research reports on 16 major stocks, including The Home Depot, Inc. (HD), Diageo plc (DEO) and Enbridge Inc. (ENB). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Focus on Pro Customers to Aid Home Depot's (HD) Top Line Diageo's (DEO) Robust Pricing & Premiumization Aid Margins Enbridge (ENB) to Gain From $8B Midstream Growth Projects Featured Reports Strength in Managed Payments Offerings Benefits eBay (EBAY) Per the Zacks analyst, eBay is witnessing solid momentum among sellers on the back of its robust managed payments offerings.
|
Today's Research Daily features new research reports on 16 major stocks, including The Home Depot, Inc. (HD), Diageo plc (DEO) and Enbridge Inc. (ENB). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Focus on Pro Customers to Aid Home Depot's (HD) Top Line Diageo's (DEO) Robust Pricing & Premiumization Aid Margins Enbridge (ENB) to Gain From $8B Midstream Growth Projects Featured Reports Strength in Managed Payments Offerings Benefits eBay (EBAY) Per the Zacks analyst, eBay is witnessing solid momentum among sellers on the back of its robust managed payments offerings. Click to get this free report Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report eBay Inc. (EBAY) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Today's Research Daily features new research reports on 16 major stocks, including The Home Depot, Inc. (HD), Diageo plc (DEO) and Enbridge Inc. (ENB). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Focus on Pro Customers to Aid Home Depot's (HD) Top Line Diageo's (DEO) Robust Pricing & Premiumization Aid Margins Enbridge (ENB) to Gain From $8B Midstream Growth Projects Featured Reports Strength in Managed Payments Offerings Benefits eBay (EBAY) Per the Zacks analyst, eBay is witnessing solid momentum among sellers on the back of its robust managed payments offerings. Click to get this free report Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report eBay Inc. (EBAY) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Today's Research Daily features new research reports on 16 major stocks, including The Home Depot, Inc. (HD), Diageo plc (DEO) and Enbridge Inc. (ENB). DEO’s margin trends were favorable in fiscal 2022, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Focus on Pro Customers to Aid Home Depot's (HD) Top Line Diageo's (DEO) Robust Pricing & Premiumization Aid Margins Enbridge (ENB) to Gain From $8B Midstream Growth Projects Featured Reports Strength in Managed Payments Offerings Benefits eBay (EBAY) Per the Zacks analyst, eBay is witnessing solid momentum among sellers on the back of its robust managed payments offerings.
|
96c8db64-a76a-4a11-9b2b-b0a856ca6bb3
|
727588.0
|
2022-12-07 00:00:00 UTC
|
Up 16% In A Month, Will Diageo Stock See Higher Levels?
|
DEO
|
https://www.nasdaq.com/articles/up-16-in-a-month-will-diageo-stock-see-higher-levels
|
nan
|
nan
|
Diageo’s stock (NYSE: DEO) has seen a rise of 16% in a month, while it’s down 14% this year. This compares with 8% and -16% returns for the broader S&P500 index over the same periods, respectively. This outperformance can partly be attributed to strong consumer demand and premiumization, which has aided its sales growth in the recent past. The company has seen its operating margins expand in 2022, led by pricing actions, premiumization, and improved fixed cost absorption from volume growth. These trends are expected to continue in 2023, as well. Furthermore, the company should benefit from the strengthening dollar. It reports its numbers in GBP while it generates a third of its sales from the North American region.
But now that DEO stock has seen a 16% rise in a month, will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a higher chance of an increase in DEO stock over the next month. DEO stock has seen a move of 16% or more only 18 times in the last ten years. Of those, 12 resulted in DEO stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 12 out of 18, or a 67% chance of a rise in DEO stock over the coming month. See our analysis on Diageo Stock Chance of Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using the last ten years’ data
After moving 3.1% or more over five days, the stock rose on 52% of the occasions in the next five days.
After moving 6.1% or more over ten days, the stock rose in the next ten days on 50% of the occasions.
After moving 15.6% or more over a twenty-one-day period, the stock rose on 67% of the occasions in the next twenty-one days.
This pattern suggests a higher chance of a rise in DEO stock over the next five and twenty-one days.
Diageo (DEO) Stock Return (Recent) Comparison With Peers And S&P500
Five-Day Return: DEO highest at 3.1%; STZ lowest at -1.0%
Ten-Day Return: BUD highest at 7.1%; SAM lowest at 0.8%
Twenty-One Days Return: BUD highest at 20.9%; SAM lowest at 2.2%
The Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Starbucks vs. Commercial Metals.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Dec 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
DEO Return 1% -14% 81%
S&P 500 Return -2% -16% 79%
Trefis Multi-Strategy Portfolio -2% -19% 220%
[1] Month-to-date and year-to-date as of 12/6/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Of those, 12 resulted in DEO stock rising over the subsequent one-month period (twenty-one trading days). Diageo’s stock (NYSE: DEO) has seen a rise of 16% in a month, while it’s down 14% this year. But now that DEO stock has seen a 16% rise in a month, will it continue its upward trajectory, or is a fall imminent?
|
Of those, 12 resulted in DEO stock rising over the subsequent one-month period (twenty-one trading days). Diageo (DEO) Stock Return (Recent) Comparison With Peers And S&P500 Five-Day Return: DEO highest at 3.1%; STZ lowest at -1.0% Ten-Day Return: BUD highest at 7.1%; SAM lowest at 0.8% Twenty-One Days Return: BUD highest at 20.9%; SAM lowest at 2.2% The Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. Total [2] DEO Return 1% -14% 81% S&P 500 Return -2% -16% 79% Trefis Multi-Strategy Portfolio -2% -19% 220% [1] Month-to-date and year-to-date as of 12/6/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo (DEO) Stock Return (Recent) Comparison With Peers And S&P500 Five-Day Return: DEO highest at 3.1%; STZ lowest at -1.0% Ten-Day Return: BUD highest at 7.1%; SAM lowest at 0.8% Twenty-One Days Return: BUD highest at 20.9%; SAM lowest at 2.2% The Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. Total [2] DEO Return 1% -14% 81% S&P 500 Return -2% -16% 79% Trefis Multi-Strategy Portfolio -2% -19% 220% [1] Month-to-date and year-to-date as of 12/6/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Diageo’s stock (NYSE: DEO) has seen a rise of 16% in a month, while it’s down 14% this year.
|
Diageo’s stock (NYSE: DEO) has seen a rise of 16% in a month, while it’s down 14% this year. This pattern suggests a higher chance of a rise in DEO stock over the next five and twenty-one days. But now that DEO stock has seen a 16% rise in a month, will it continue its upward trajectory, or is a fall imminent?
|
a28b8bc7-5f34-4124-b504-027fdf8abc1e
|
727589.0
|
2022-12-07 00:00:00 UTC
|
Warren Buffett Owns 7 International Stocks: Here's the Best of the Bunch
|
DEO
|
https://www.nasdaq.com/articles/warren-buffett-owns-7-international-stocks%3A-heres-the-best-of-the-bunch
|
nan
|
nan
|
Where is the lion's share of the world's biggest companies headquartered? The United States, by far. U.S.-based companies make up nearly 70% of the total market cap of the largest 100 companies globally in 2022, based on a PwC report.
But that doesn't mean there aren't plenty of opportunities for investors outside of the country. Warren Buffett, one of the greatest investors ever, certainly realizes this. Buffett currently owns seven international stocks. And one stands out as the best of the bunch.
Image source: The Motley Fool.
More than meets the eye
His Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) 13F regulatory filings reveal only five stocks based outside of the U.S. Two of them are headquartered in Brazil but incorporated in the Cayman Islands -- digital banking provider Nu Holdings (NYSE: NU) and IT solutions provider StoneCo (NASDAQ: STNE).
Liberty Latin America (NASDAQ: LILA) (NASDAQ: LILA.K) isn't based in a Latin American country, as its name might suggest. The telecommunications company is instead headquartered in Bermuda, although it operates throughout the Caribbean and Latin America.
Diageo (NYSE: DEO) is the only European company in Berkshire's portfolio. The beverage alcohol giant is based in London, England. Buffett also recently made a $4 billion bet on Taiwan Semiconductor Manufacturing (NYSE: TSM), which unsurprisingly is based in Taiwan.
Buffett also owns shares of two other companies that don't trade on major U.S. stock exchanges and aren't included in Berkshire's 13F filings. He's owned a stake in Chinese electric vehicle maker BYD (OTC: BYDD.F) since 2008. Berkshire also owns 6.2% of Japanese trading company Itochu (OTC: ITOCF).
Logical elimination
Which of these international stocks owned by Buffett is the best? I think we can rule a few out by the process of logical elimination.
Three of the non-U.S. companies in which Buffett has invested haven't been consistently profitable over the past year. Nu Holdings posted positive earnings in the third quarter of 2022 but lost money in the previous quarters this year. It's the same story for StoneCo. Liberty Latin America has alternated between making money and losing money quarter by quarter.
BYD is consistently profitable. However, investing in stocks based on China could be very risky right now with the uncertainty in the country related to COVID-19 and the unrest about the government's handling of the healthcare crisis.
Best of the bunch
That leaves three stocks in consideration -- Diageo, Itochu, and Taiwan Semi. I can see why Buffett likes each of these international stocks. But I think we can use three criteria to determine the best of the bunch.
First, it's important to assess each company's growth prospects. My view is that Taiwan Semi wins on this front. For one thing, the semiconductor maker is already growing its revenue faster than either Diageo or Itochu.
Second, look at the valuations. All three of these stocks are relatively cheap right now. Itochu is the least expensive with shares trading at 7.4 times trailing-12-month earnings. However, Taiwan Semi has a reasonable forward price-to-earnings multiple of 13.7. The stock has also been clobbered the most of the three, with its share price down more than 30% year to date.
Third, apply the "Buffett test." Which of these stocks is Buffett most excited about right now? I think the answer to this question is clearly Taiwan Semi. The stock makes up 1.4% of Berkshire's total portfolio, making it the conglomerate's biggest stake in a company based outside the U.S. Buffett has also recently initiated this large position, indicating his bullishness about the company's prospects.
Several of Buffett's international stocks could be worthy of consideration by investors who aren't multibillionaires. But I think that Taiwan Semi stands out as the best of the bunch.
10 stocks we like better than Taiwan Semiconductor Manufacturing
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 1, 2022
Keith Speights has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway, Byd, StoneCo, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Diageo Plc and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, short January 2023 $200 puts on Berkshire Hathaway, and short January 2023 $265 calls on Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo (NYSE: DEO) is the only European company in Berkshire's portfolio. However, investing in stocks based on China could be very risky right now with the uncertainty in the country related to COVID-19 and the unrest about the government's handling of the healthcare crisis. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
Diageo (NYSE: DEO) is the only European company in Berkshire's portfolio. The stock makes up 1.4% of Berkshire's total portfolio, making it the conglomerate's biggest stake in a company based outside the U.S. Buffett has also recently initiated this large position, indicating his bullishness about the company's prospects. The Motley Fool has positions in and recommends Berkshire Hathaway, Byd, StoneCo, and Taiwan Semiconductor Manufacturing.
|
Diageo (NYSE: DEO) is the only European company in Berkshire's portfolio. More than meets the eye His Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) 13F regulatory filings reveal only five stocks based outside of the U.S. Two of them are headquartered in Brazil but incorporated in the Cayman Islands -- digital banking provider Nu Holdings (NYSE: NU) and IT solutions provider StoneCo (NASDAQ: STNE). Buffett also owns shares of two other companies that don't trade on major U.S. stock exchanges and aren't included in Berkshire's 13F filings.
|
Diageo (NYSE: DEO) is the only European company in Berkshire's portfolio. Best of the bunch That leaves three stocks in consideration -- Diageo, Itochu, and Taiwan Semi. The stock makes up 1.4% of Berkshire's total portfolio, making it the conglomerate's biggest stake in a company based outside the U.S. Buffett has also recently initiated this large position, indicating his bullishness about the company's prospects.
|
1b9c30ac-965d-4db1-a1d9-323751ad4c49
|
727590.0
|
2022-12-01 00:00:00 UTC
|
ABEV or DEO: Which Is the Better Value Stock Right Now?
|
DEO
|
https://www.nasdaq.com/articles/abev-or-deo%3A-which-is-the-better-value-stock-right-now-2
|
nan
|
nan
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Ambev (ABEV) and Diageo (DEO). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Ambev has a Zacks Rank of #2 (Buy), while Diageo has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ABEV has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ABEV currently has a forward P/E ratio of 19.68, while DEO has a forward P/E of 23.44. We also note that ABEV has a PEG ratio of 2.16. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DEO currently has a PEG ratio of 2.47.
Another notable valuation metric for ABEV is its P/B ratio of 2.75. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DEO has a P/B of 9.20.
These are just a few of the metrics contributing to ABEV's Value grade of B and DEO's Value grade of C.
ABEV has seen stronger estimate revision activity and sports more attractive valuation metrics than DEO, so it seems like value investors will conclude that ABEV is the superior option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ambev S.A. (ABEV) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Ambev (ABEV) and Diageo (DEO). ABEV currently has a forward P/E ratio of 19.68, while DEO has a forward P/E of 23.44. DEO currently has a PEG ratio of 2.47.
|
Click to get this free report Ambev S.A. (ABEV) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Ambev (ABEV) and Diageo (DEO). ABEV currently has a forward P/E ratio of 19.68, while DEO has a forward P/E of 23.44.
|
These are just a few of the metrics contributing to ABEV's Value grade of B and DEO's Value grade of C. ABEV has seen stronger estimate revision activity and sports more attractive valuation metrics than DEO, so it seems like value investors will conclude that ABEV is the superior option right now. Click to get this free report Ambev S.A. (ABEV) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Ambev (ABEV) and Diageo (DEO).
|
DEO currently has a PEG ratio of 2.47. These are just a few of the metrics contributing to ABEV's Value grade of B and DEO's Value grade of C. ABEV has seen stronger estimate revision activity and sports more attractive valuation metrics than DEO, so it seems like value investors will conclude that ABEV is the superior option right now. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Ambev (ABEV) and Diageo (DEO).
|
33ccacdb-9f45-4aac-a433-30d09ac4bdac
|
727591.0
|
2022-11-23 00:00:00 UTC
|
3 Stocks to Buy for a Happy Thanksgiving
|
DEO
|
https://www.nasdaq.com/articles/3-stocks-to-buy-for-a-happy-thanksgiving
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you’re looking for stocks to buy, you might want to consider how much Americans spend on Thanksgiving.
According to Statista, the average American spent $421 annually on the country’s favorite holiday over the past three years. Based on 332.4 million people, Americans will spend an estimated $140 billion to celebrate the holiday this year.
While there will be some penny-pinching in this inflationary environment, Americans will still spend their fair share on all the necessary trimmings to enjoy the holiday with family and friends.
So, it makes sense that investors at this time of year consider Thanksgiving stocks that will do well not only over the next week, but into 2023 and beyond.
Not surprisingly, my three picks revolve around food and drink, two favorite pastimes of Americans at Thanksgiving (besides football).
Each of these three Thanksgiving stocks will make you money over the long haul. Read on, and I’ll tell you why I think Diageo (NYSE:DEO) is the best of the bunch.
SEB Seaboard $3,954.59
CPB Campbell Soup Company $52.19
DEO Diageo $178.31
Seaboard (SEB)
Source: Sheila Fitzgerald / Shutterstock.com
My apologies to the vegans and vegetarians out there, but if you’re a meat eater, turkey is the entrée of choice for a majority of Americans on Thanksgiving. In fact, according to the National Turkey Federation (NTF), that is what 88% of Americans eat on this holiday. This year that works out to more than 293 million people.
More importantly, according to the NTF, Americans are expected to pay $1.1 billion for their turkeys this year. This is up 15.3% from 2021. The average cost of a turkey has been on the rise since 2018.
One of the problems this year is that an avian flu outbreak has killed at least 3.6% of the turkey population in the U.S., adding to the existing shortages. That means higher turkey prices.
Seaboard (NYSEMKT:SEB) happens to hold a 50% non-controlling interest in Butterball LLC, one of the largest producers of turkey products in the U.S. It produces more than one billion pounds of turkey products each year from six plants in North Carolina, Arkansas and Missouri.
In 2021, the company’s turkey segment had sales of $1.79 billion and an operating loss of $34 million. While not a big money-maker for Seaboard, in April it exercised the option to acquire an additional 5% of Butterball’s equity. It could do this at any time prior to Dec. 31, 2025.
Seaboard makes most of its profits from its Marine segment. This segment provides shipping services between North America, the Caribbean, Central and South America. It owns 25 vessels and 60,000 containers with shipping terminals in Houston and Miami. In the three months that ended Oct. 1, 2022, it had $525 million in sales and $155 million in operating income.
This stock has performed sporadically since 2014. You’ll want to pick your entry point under $3,500 if possible.
Campbell Soup Company (CPB)
Source: Sheila Fitzgerald / Shutterstock
What goes with turkey? Stuffing, of course. Now, many households will make it from scratch, but for those not so inclined, Pure Wow recently reviewed the 10 best boxed stuffing mixes. Getting the nod was the Pepperidge Farm Herb Seasoned Classic Stuffing.
The Campbell Soup Company (NYSE:CPB) owns Pepperidge Farm. In addition to its stuffing products, the division is best known for its Goldfish crackers. Campbell acquired Pepperidge Farm in 1961 when it had just $32 million in sales and 58 products. In 2011, when the company celebrated 50 years owning the brand, its sales were $1.3 billion.
In March 2018, the company acquired Snyder’s-Lance for $6.1 billion, including the assumption of debt. The acquisition combined Snyder’s-Lance with Pepperidge Farm to form Campbell Snacks.
In fiscal year 2022 (July 31 year-end), the snacks business accounted for 46% of the company’s $8.56 billion in sales and 37% of its operating profit. Campbell’s Meals & Beverages business is the more profitable of the two operating units with a 19% operating margin, 590 basis points higher than snacks.
Why buy CPB stock?
The products Campbell makes will always be in demand from consumers. They might not always be flying off the shelf, but you’ll make money over the long run. And the 2.84% dividend yield makes it easier to wait for that next growth spurt.
Diageo (DEO)
Source: Cabeca de Marmore/ShutterStock.com
The other thing that goes with Thanksgiving turkey besides stuffing is a nice cocktail, a bottle of wine or even a shot. Diageo’s got you covered for all three.
In the 2021 Thanksgiving stocking period — Nov. 23 to 25 — Diageo’s products accounted for five out of the top 10 selling liquor brands for Drizly, the liquor delivery service. The Diageo brands in the top 10 included Casamigos tequila (#2), Johnnie Walker Scotch (#3), Don Julio tequila (#4), Bulleit Bourbon (#5) and Smirnoff vodka (#10).
Many of the brands Diageo sells were acquisitions made over many years. It continues to make acquisitions to complement its existing roster of brands.
In March 2022, it acquired 21Seeds flavored tequila. On Nov. 2, it acquired Balcones Distilling, a Texas-based craft distiller of American Single Malt Whisky. In the years ahead, it will continue to add to and prune its roster to meet the needs of its customers.
On Nov. 1, Diageo announced the fourth and final phase of its return of capital program. It plans to buy back up to 640 million British pounds ($755.7 million) of its stock in fiscal year 2023 (June year-end). With the final tranche of shares, it will have repurchased 4.5 billion British pounds ($5.31 billion) of its stock since implementing the four-phase plan in January 2020.
Diageo’s revenue increased 21.4% in FY2022 to 15.5 billion British pounds ($18.3 billion) with strong growth across all of its operating regions. Its operating profit in 2022 grew 18.2% to 4.4 billion British pounds ($5.2 billion).
It expects FY2023 to be challenging. However, it continues to focus on growing organic net sales by 5-7% annually while growing operating profits by 6-9% each year.
Trading at 5.63x sales, its stock is cheaper than it’s been since 2017.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
The post 3 Stocks to Buy for a Happy Thanksgiving appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo (DEO) Source: Cabeca de Marmore/ShutterStock.com The other thing that goes with Thanksgiving turkey besides stuffing is a nice cocktail, a bottle of wine or even a shot. Read on, and I’ll tell you why I think Diageo (NYSE:DEO) is the best of the bunch. SEB Seaboard $3,954.59 CPB Campbell Soup Company $52.19 DEO Diageo $178.31 Seaboard (SEB) Source: Sheila Fitzgerald / Shutterstock.com My apologies to the vegans and vegetarians out there, but if you’re a meat eater, turkey is the entrée of choice for a majority of Americans on Thanksgiving.
|
SEB Seaboard $3,954.59 CPB Campbell Soup Company $52.19 DEO Diageo $178.31 Seaboard (SEB) Source: Sheila Fitzgerald / Shutterstock.com My apologies to the vegans and vegetarians out there, but if you’re a meat eater, turkey is the entrée of choice for a majority of Americans on Thanksgiving. Read on, and I’ll tell you why I think Diageo (NYSE:DEO) is the best of the bunch. Diageo (DEO) Source: Cabeca de Marmore/ShutterStock.com The other thing that goes with Thanksgiving turkey besides stuffing is a nice cocktail, a bottle of wine or even a shot.
|
SEB Seaboard $3,954.59 CPB Campbell Soup Company $52.19 DEO Diageo $178.31 Seaboard (SEB) Source: Sheila Fitzgerald / Shutterstock.com My apologies to the vegans and vegetarians out there, but if you’re a meat eater, turkey is the entrée of choice for a majority of Americans on Thanksgiving. Read on, and I’ll tell you why I think Diageo (NYSE:DEO) is the best of the bunch. Diageo (DEO) Source: Cabeca de Marmore/ShutterStock.com The other thing that goes with Thanksgiving turkey besides stuffing is a nice cocktail, a bottle of wine or even a shot.
|
Read on, and I’ll tell you why I think Diageo (NYSE:DEO) is the best of the bunch. SEB Seaboard $3,954.59 CPB Campbell Soup Company $52.19 DEO Diageo $178.31 Seaboard (SEB) Source: Sheila Fitzgerald / Shutterstock.com My apologies to the vegans and vegetarians out there, but if you’re a meat eater, turkey is the entrée of choice for a majority of Americans on Thanksgiving. Diageo (DEO) Source: Cabeca de Marmore/ShutterStock.com The other thing that goes with Thanksgiving turkey besides stuffing is a nice cocktail, a bottle of wine or even a shot.
|
4baefb83-f4fb-4342-b498-420ddbab9250
|
727592.0
|
2022-11-15 00:00:00 UTC
|
ABEV or DEO: Which Is the Better Value Stock Right Now?
|
DEO
|
https://www.nasdaq.com/articles/abev-or-deo%3A-which-is-the-better-value-stock-right-now-1
|
nan
|
nan
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Ambev (ABEV) and Diageo (DEO). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Ambev is sporting a Zacks Rank of #2 (Buy), while Diageo has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ABEV likely has seen a stronger improvement to its earnings outlook than DEO has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ABEV currently has a forward P/E ratio of 19.16, while DEO has a forward P/E of 21.49. We also note that ABEV has a PEG ratio of 2.11. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DEO currently has a PEG ratio of 2.27.
Another notable valuation metric for ABEV is its P/B ratio of 2.68. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DEO has a P/B of 8.54.
Based on these metrics and many more, ABEV holds a Value grade of B, while DEO has a Value grade of C.
ABEV stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ABEV is the superior value option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ambev S.A. (ABEV): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors should feel comfortable knowing that ABEV likely has seen a stronger improvement to its earnings outlook than DEO has recently. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Ambev (ABEV) and Diageo (DEO). ABEV currently has a forward P/E ratio of 19.16, while DEO has a forward P/E of 21.49.
|
Diageo plc (DEO): Free Stock Analysis Report Investors with an interest in Beverages - Alcohol stocks have likely encountered both Ambev (ABEV) and Diageo (DEO). Investors should feel comfortable knowing that ABEV likely has seen a stronger improvement to its earnings outlook than DEO has recently.
|
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Ambev (ABEV) and Diageo (DEO). Based on these metrics and many more, ABEV holds a Value grade of B, while DEO has a Value grade of C. ABEV stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ABEV is the superior value option right now. Investors should feel comfortable knowing that ABEV likely has seen a stronger improvement to its earnings outlook than DEO has recently.
|
DEO currently has a PEG ratio of 2.27. Based on these metrics and many more, ABEV holds a Value grade of B, while DEO has a Value grade of C. ABEV stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ABEV is the superior value option right now. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Ambev (ABEV) and Diageo (DEO).
|
ba3b52c6-69c9-4d0f-af69-d228bc4e4bc4
|
727593.0
|
2022-11-11 00:00:00 UTC
|
3 High-Yield Sin Stocks to Buy
|
DEO
|
https://www.nasdaq.com/articles/3-high-yield-sin-stocks-to-buy
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Environmental, social, governance (ESG) investing has been a major theme in recent years, as some investors seek exposure to stocks that are actively working on their environmental and social footprint. But it can make sense to look in the opposite direction, too. So-called sin stocks have often provided attractive returns. Sin stocks are a group of companies that produce and sell products that are deemed unhealthy, such as cigarettes and other tobacco products, alcohol and so on.
Many of these product categories are very resilient during recessions. Consumers still buy cigarettes, spirits and so on during economic downturns. On top of that, since some investors do not want to invest in sin stocks, their valuations are oftentimes lower than those of other consumer goods companies, which allows for higher entry dividend yields and makes buybacks more effective.
Last but not least, a lot of regulation in these product categories means that new market entrants have a hard time, which is why many sin stocks are operating in oligopolies that allow for high margins. The combination of these factors makes sin stocks worthy of research. These tailwinds can drive compelling total returns for those that invest in sin stocks. We will showcase three such sin stocks with attractive dividend yields here.
PM Philip Morris $93.92
TAP Molson Coors $51.43
DEO Diageo $173.53
Philip Morris (PM)
Source: Vytautas Kielaitis / Shutterstock
The first of these sin stocks to buy is tobacco company Philip Morris (NYSE:PM). Philip Morris sells its products in almost all countries around the world, with the U.S. being an important exception — there, Altria (NYSE:MO) owns the rights to Marlboro and the other brands that Philip Morris controls.
Smoking is not a growth market when it comes to sales volumes. However, tobacco companies have a history of increasing the price per pack over time. Despite volumes being flat or even down, tobacco companies have been able to generate solid revenue growth over time. At the same time, price increases allow Philip Morris to grow its margins over time, which is an additional tailwind for the company’s net profits.
Since cigarette sales volumes do not grow materially, there is no need to invest heavily in new production facilities or machinery. The vast majority of the operating cash flow that Philip Morris generates is thus available as free cash that can be used for dividends or share repurchases, which is why Philip Morris has been offering an attractive income yield for many years.
Thanks to the recession-resistant business model, Philip Morris has also been able to grow its dividend very reliably, as the company has increased its dividend every year since it was spun off from Altria 15 years ago. At current prices, Philip Morris offers a dividend yield of 5.5%, which is quite attractive.
Based on this year’s expected net profits, the payout ratio is relatively high, at 90%. However, Philip Morris has always operated with a high payout ratio, and it has not stopped the company from increasing its dividend each year. The strong U.S. dollar is a headwind for Philip Morris’ earnings this year, due to its large overseas exposure, but it is likely that the dollar will not continue to strengthen forever, which is why this headwind should wane eventually. This would allow for a lower payout ratio in the future.
Molson Coors Beverage Company (TAP)
Source: OleksandrShnuryk / Shutterstock.com
Molson Coors (NYSE:TAP) is a beer and malt beverage company that has a history dating back almost 250 years. Molson Coors owns brands such as Coors Light, Miller Light, Carling and so on. On top of the U.S., it is also active in a range of additional markets in South America, Europe, Asia and Africa. Molson Coors is not the largest beer company in the world, but it’s one with a long history and established brands.
Beer demand is not very cyclical, which is why Molson Coors has generally fared well in past recessions. During the first year of the pandemic, its EPS declined only slightly. This was a result of a decline in sales at restaurants, bars, sporting events, concerts and so on declined compared to previous years. In 2021, however, Molson Coors already saw its EPS expand again.
Based on annual dividends of $1.52, Molson Coors is currently offering a dividend yield of 3%. That’s close to twice as high as the broad market’s dividend yield. Based on the expected net profit for the current year, Molson Coors’ payout ratio is just 39%. This looks very sustainable, especially when we consider that the company does not need to invest a large amount of its cash flows for capital expenditures. Therefore, its free cash conversion is high.
Molson Coors reduced its dividend in 2020, and it remains below pre-pandemic levels for now. However, the low payout ratio should allow the company to get the dividend back up to the old $1.96-per-year level in the not-too-distant future.
Diageo (DEO)
Source: IgorGolovniov / Shutterstock.com
Diageo (NYSE:DEO) is an alcoholic beverage company as well, although it focuses on spirits primarily. Its brands include Jonnie Walker, Smirnoff and Tanqueray. Its history dates back more than 300 years. The company remains headquartered in the U.K., where it was founded in the 17th century.
Like Philip Morris and Molson Coors, Diageo has generally been resilient versus recessions and other macro shocks. Demand for alcoholic beverages is not very cyclical. In 2020, Diageo felt a small hit to its earnings, but the company has been hitting new record EPS levels in fiscal 2022 (it is currently in fiscal 2023, which is forecasted to be another record year).
The company pays out 47% of its profits, based on this year’s expected EPS and an annual dividend of $4 per share. That makes for a dividend yield of 2.2% at current prices, which is the lowest among these three companies but still easily higher than the yield one can get from the broad market today.
Diageo has a solid dividend-growth track record, having increased its dividend reliably in recent years. The dividend growth rate is in the mid-single digits, on average. At current prices, Diageo is trading for just below 20x this year’s expected net profit, which is a low-ish valuation relative to how Diageo was valued in the past. Diageo traded at earnings multiples of more than 20 over the last five years, suggesting right now might be a better-than-average time to enter or expand a position.
On the date of publication, Bob Ciura did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bob Ciura has worked at Sure Dividend since 2016. He oversees all content for Sure Dividend and its partner sites. Prior to joining Sure Dividend, Bob was an independent equity analyst. His articles have been published on major financial websites such as The Motley Fool, Seeking Alpha, Business Insider and more. Bob received a bachelor’s degree in Finance from DePaul University and an MBA with a concentration in investments from the University of Notre Dame.
The post 3 High-Yield Sin Stocks to Buy appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
PM Philip Morris $93.92 TAP Molson Coors $51.43 DEO Diageo $173.53 Philip Morris (PM) Source: Vytautas Kielaitis / Shutterstock The first of these sin stocks to buy is tobacco company Philip Morris (NYSE:PM). Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo (NYSE:DEO) is an alcoholic beverage company as well, although it focuses on spirits primarily. On top of that, since some investors do not want to invest in sin stocks, their valuations are oftentimes lower than those of other consumer goods companies, which allows for higher entry dividend yields and makes buybacks more effective.
|
PM Philip Morris $93.92 TAP Molson Coors $51.43 DEO Diageo $173.53 Philip Morris (PM) Source: Vytautas Kielaitis / Shutterstock The first of these sin stocks to buy is tobacco company Philip Morris (NYSE:PM). Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo (NYSE:DEO) is an alcoholic beverage company as well, although it focuses on spirits primarily. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Environmental, social, governance (ESG) investing has been a major theme in recent years, as some investors seek exposure to stocks that are actively working on their environmental and social footprint.
|
PM Philip Morris $93.92 TAP Molson Coors $51.43 DEO Diageo $173.53 Philip Morris (PM) Source: Vytautas Kielaitis / Shutterstock The first of these sin stocks to buy is tobacco company Philip Morris (NYSE:PM). Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo (NYSE:DEO) is an alcoholic beverage company as well, although it focuses on spirits primarily. Thanks to the recession-resistant business model, Philip Morris has also been able to grow its dividend very reliably, as the company has increased its dividend every year since it was spun off from Altria 15 years ago.
|
PM Philip Morris $93.92 TAP Molson Coors $51.43 DEO Diageo $173.53 Philip Morris (PM) Source: Vytautas Kielaitis / Shutterstock The first of these sin stocks to buy is tobacco company Philip Morris (NYSE:PM). Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo (NYSE:DEO) is an alcoholic beverage company as well, although it focuses on spirits primarily. At the same time, price increases allow Philip Morris to grow its margins over time, which is an additional tailwind for the company’s net profits.
|
55833f2b-aa8e-4dd0-a3c2-dbfabe1dc1b3
|
727594.0
|
2022-11-08 00:00:00 UTC
|
4 Stocks to Watch Despite the Hardships in the Alcohol Industry
|
DEO
|
https://www.nasdaq.com/articles/4-stocks-to-watch-despite-the-hardships-in-the-alcohol-industry
|
nan
|
nan
|
Players in the Zacks Beverages – Alcohol industry have been witnessing product shortages due to supply delays and other logistic issues. Escalated input, freight and packaging costs, along with higher advertising and marketing expenses, may continue to be headwinds for the industry participants.
However, companies in the alcohol space have been benefiting from the continued recovery across markets and channels, robust demand for premium and high-quality products, and a nag for innovative spirits. Companies are expected to benefit from the momentum in spirits and ready-to-drink (RTD) cocktails. Investments in product innovations, premiumization and technology platforms bode well for players like Diageo Plc DEO, AnheuserBusch InBev BUD, Constellation Brands Inc. STZ and Brown-Forman (BF.B).
About the Industry
The Zacks Beverages – Alcohol industry mainly comprises producers, importers, exporters, marketers and sellers of alcoholic beverages like beer, craft beer, ciders, wine, rum, whiskey, liqueurs, vodka, tequila, champagnes, brandy, amaretto, RTD cocktails and malt. However, some industry players also produce and sell non-alcoholic beverages like carbonated soft drinks, sparkling waters, bottled water, energy drinks, powdered and natural juices, and RTD teas. The companies sell products through wholesalers and retailers like supermarkets, warehouse clubs, grocery stores, convenience stores, package stores, drug stores and other retail outlets. The industry participants also sell beer directly to consumers in cans and bottles at restaurants, pubs, bars and liquor stores. Some brewers operate brewpubs or taste rooms at breweries, offering consumers the freshest beer.
What's Shaping the Future of Beverages - Alcohol Industry
Premiumization & Product Diversification: Premiumization has been a key growth driver for players in the alcohol space due to consumers’ continued desires for refreshing and newer tastes. Companies in the alcohol space have been witnessing robust demand trends for premium and high-end products. As a result, the companies focused on innovation and portfolio premiumization stand to gain from today’s market. The companies have been exploring opportunities beyond the traditional beer, whiskey, spirits and wine categories. Some popular variations that have gained traction include RTD spirits like canned wine and cocktails, hard seltzers, cider, and flavored malt beverages. To capitalize on the priority and consumer trends, companies have been resorting to innovative products. Notably, RTD has emerged as the fastest-growing alcohol segment since 2018. Most companies in the industry have collaborated to grow their shares in the fast-growing RTD category.
E-Commerce Development & Pricing Gains: Alcohol companies have been benefiting from the rise of e-commerce and recovery across markets and channels, boosting volume. Investments in online and e-commerce portals have gained prominence. Companies have been investing in the latest capabilities, and leveraging technology to better connect with customers and consumers. With a recovery in markets and channels, and the expansion of digital capabilities, players in the alcohol space look well-poised for growth. Additionally, companies have been benefiting from price increases and supply productivity savings, offsetting the effects of cost inflation. Effective marketing and exceptional commercial execution have been boosting the sale of alcohol companies.
Supply-Chain Disruptions & Higher Freight Costs: Players in the alcohol industry have been enduring pressures from the ongoing supply-chain constraints, and the impacts of inflationary labor, transportation and commodity costs. The industry players have been experiencing elevated ingredient and other input costs, including shipping and freight, labor, trucking, fuel, co-packing fees, secondary packaging materials, and increased outbound freight costs, leading to increased costs of sales and higher operating costs. These have been resulting in adverse gross and operating margins for beverage companies. Most companies and industry experts expect supply-chain issues to prevail in the near term.
Elevated Costs: Players in the alcohol industry are anticipated to witness higher advertising and promotional expenses, as well as SG&A costs, further threatening profitability. Rising brand investments, particularly in media, advertising, production and local marketing, and increased freight to distributors due to higher volumes are resulting in elevated advertising, promotional and selling expenses. Growing external costs, increased compensation expenses and higher discretionary spending are expected to drive SG&A deleverage. Most industry players expect the trend to continue in the near term, impacting profitability to some extent.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Beverages – Alcohol industry is an 18-stock group within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #140. The rank places it at the bottom 44% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms S&P 500
The Zacks Beverages – Alcohol industry has outperformed the S&P 500 and the broader sector in the past year.
While the stocks in the industry have collectively dipped 5.1%, the Zacks S&P 500 composite and the Zacks Consumer Staples sector have declined 21.2% and 6.7%, respectively.
One-Year Price Performance
Beverages - Alcohol Industry's Valuation
Based on the forward 12-month price-to-earnings (P/E) ratio, commonly used for valuing Consumer Staples stocks, the industry is currently trading at 23.55X compared with the S&P 500’s 16.62X and the sector’s 18.54X.
Over the last five years, the industry traded as high as 29.22X, as low as 18.78X and at the median of 23.63X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
4 Alcohol Beverages Stocks to Keep a Close Eye on
None of the stocks in the Zacks Beverages – Alcohol space currently sports a Zacks Rank #1 (Strong Buy) but we have highlighted one stock with a Zacks Rank #2 (Buy). Also, we have selected three Zacks Rank #3 (Hold) stocks to watch from the same industry. You can see the complete list of today’s Zacks #1 Rank stocks here.
Let’s have a look at the companies.
Constellation Brands: The Victor, NY-based third-largest beer company and a leading, high-end wine company in the United States has been benefiting from the constant focus on brand building and initiatives to include the latest products. STZ is poised to benefit from its premiumization strategy, driven by the continued strength in the Modelo and Corona Brand Family, as well as growth in the Power Brands. The beer segment has been gaining from premiumization, driven by growth in the traditional beer and flavors category, including seltzers, flavored beer, RTD spirits, and flavored malt beverages. The company has been making investments to fuel growth of its power brands through innovation, capitalizing on priority and consumer trends, with successful product introductions. STZ is also on track to invest in the next phase of capacity expansion in Mexico.
Constellation Brands has been benefiting from consumers’ shift to e-commerce for buying alcoholic beverages. Its digital business has been gaining share through platforms like Instacart, Drizly and other retailer online sites, as consumers look for the convenience offered by the channels, which is likely to continue. The Zacks Consensus Estimate for Constellation Brands’ fiscal 2023 earnings per share (EPS) has moved up 14.4% in the past 30 days. The consensus estimate for fiscal 2023 sales and earnings suggests growth of 8.2% and 8.7%, respectively, from the year-ago period’s reported figures. The STZ stock has risen 11.2% in the past year. It has a Zacks Rank #2 at present.
Price and Consensus: STZ
Diageo: The largest alcoholic beverage company based in London has been benefiting from the continued recovery in the on-trade channel, strong consumer demand in off-trade and market share gains. Robust growth in super-premium-plus brands, particularly scotch, tequila and Chinese white spirits, have been resulting in a positive price/mix. Growth is likely to be driven by its premiumization efforts, market recovery, pricing actions and supply productivity savings, which are likely to offset cost inflation. DEO is poised to benefit from continued investments in marketing and innovation to capture organic sales growth in its well-positioned premium brand portfolio.
Diageo has been relentlessly working to leverage its existing e-commerce capabilities and accelerate investments in the online platform. For fiscal 2023, the company expects net sales growth across North America, Europe and the Asia Pacific, driven by continued premiumization efforts and favorable industry trends, particularly in the spirits category. DEO has declined 16.9% in the past year and currently carries a Zacks Rank #3. The Zacks Consensus Estimate for DEO’s fiscal 2023 sales and earnings suggests growth of 11.6% and 5.6%, respectively, from the year-ago period’s reported figures. The consensus estimate for current-year earnings has moved down 1.6% in the past 30 days.
Price and Consensus: DEO
AnheuserBusch InBev: The company, also known as AB InBev, is a global brewing company with more than 500 iconic brands. It has been gaining from its leading position in the majority of the markets and a strong global footprint, which lend it the advantage of economies of scale and growing its multi-country brands globally. The company has been investing in developing a diverse portfolio of global, international, and crafts and specialty premium brands in its markets. The premiumization of the beer industry has been a key growth opportunity for AB InBev. Continued business momentum, owing to relentless execution, brand investments and accelerated digital transformation, has been the key to its growth story.
The Leuven, Belgium-based company is steadfastly growing its Beyond Beer portfolio, including RTD Beverages like Canned Wine and Canned Cocktails, Hard Seltzers, Cider, and Flavored Malt Beverages. The Beyond Beer trend has been gaining popularity due to the rise in demand for low-alcoholic or non-alcoholic drinks. The Zacks Consensus Estimate for AB InBev’s 2022 sales and earnings suggests growth of 7.7% and 1.8%, respectively, from the year-ago period’s reported figures. The consensus mark for the company’s 2022 earnings has moved up 0.7% in the past seven days. BUD has declined 12.2% in the past year. It carries a Zacks Rank #3 at present.
Price and Consensus: BUD
Brown-Forman: The Louisville, KY-based leading alcoholic beverages company has been benefiting from increased demand for its brands, mainly Jack Daniel’s Tennessee Whiskey, and growth across all regions and the Travel Retail channel. The company is focused on investing in the diversification of its brand portfolio to drive growth. For more than a decade, Jack Daniel's Tennessee Whiskey has been the key contributor to the company’s growth in the United States. The company is investing in organically accelerating growth of two fast-growing spirits categories, bourbon and tequila. The balanced portfolio investments are likely to support its record of consistent growth.
The consensus estimate for Brown-Forman’s fiscal 2023 EPS has been unchanged in the past 30 days. The Zacks Consensus Estimate for fiscal 2023 sales and earnings suggests growth of 1.8% and 12.1% from the year-ago period’s reported figure. BF.B has declined 7.5% in the past year. It currently has a Zacks Rank #3.
Price and Consensus: BF.B
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Diageo plc (DEO): Free Stock Analysis Report
BrownForman Corporation (BF.B): Free Stock Analysis Report
Constellation Brands Inc (STZ): Free Stock Analysis Report
AnheuserBusch InBev SANV (BUD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investments in product innovations, premiumization and technology platforms bode well for players like Diageo Plc DEO, AnheuserBusch InBev BUD, Constellation Brands Inc. STZ and Brown-Forman (BF.B). DEO is poised to benefit from continued investments in marketing and innovation to capture organic sales growth in its well-positioned premium brand portfolio. DEO has declined 16.9% in the past year and currently carries a Zacks Rank #3.
|
Investments in product innovations, premiumization and technology platforms bode well for players like Diageo Plc DEO, AnheuserBusch InBev BUD, Constellation Brands Inc. STZ and Brown-Forman (BF.B). DEO is poised to benefit from continued investments in marketing and innovation to capture organic sales growth in its well-positioned premium brand portfolio. DEO has declined 16.9% in the past year and currently carries a Zacks Rank #3.
|
Investments in product innovations, premiumization and technology platforms bode well for players like Diageo Plc DEO, AnheuserBusch InBev BUD, Constellation Brands Inc. STZ and Brown-Forman (BF.B). DEO is poised to benefit from continued investments in marketing and innovation to capture organic sales growth in its well-positioned premium brand portfolio. DEO has declined 16.9% in the past year and currently carries a Zacks Rank #3.
|
Investments in product innovations, premiumization and technology platforms bode well for players like Diageo Plc DEO, AnheuserBusch InBev BUD, Constellation Brands Inc. STZ and Brown-Forman (BF.B). DEO is poised to benefit from continued investments in marketing and innovation to capture organic sales growth in its well-positioned premium brand portfolio. DEO has declined 16.9% in the past year and currently carries a Zacks Rank #3.
|
71ca37d6-cd81-49d1-87f0-a94a64d05ac7
|
727595.0
|
2022-11-01 00:00:00 UTC
|
Diageo Commences Final Phase Of Return Of Capital Program Of Up To GBP 4.5 Bln
|
DEO
|
https://www.nasdaq.com/articles/diageo-commences-final-phase-of-return-of-capital-program-of-up-to-gbp-4.5-bln
|
nan
|
nan
|
(RTTNews) - Alcoholic beverage company Diageo plc. (DGE.L, DEO) said that it is commencing the fourth, and final, phase of its return of capital program of up to 4.5 billion pounds to shareholders to be completed during fiscal year 2023.
Under the first three phases of the return of capital program, which were completed on 31 January 2020, 11 February 2022 and 5 October 2022 respectively, Diageo repurchased shares with an aggregate value of about 3.86 billion pounds.
Diageo said Tuesday that it has entered into a non-discretionary agreement with Merrill Lynch International (MLI) to enable the company to buy back shares with an aggregate value of up to approximately 0.64 billion pounds. This agreement will commence on 1 November 2022 and will end no later than 24 February 2023.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(DGE.L, DEO) said that it is commencing the fourth, and final, phase of its return of capital program of up to 4.5 billion pounds to shareholders to be completed during fiscal year 2023. Under the first three phases of the return of capital program, which were completed on 31 January 2020, 11 February 2022 and 5 October 2022 respectively, Diageo repurchased shares with an aggregate value of about 3.86 billion pounds. Diageo said Tuesday that it has entered into a non-discretionary agreement with Merrill Lynch International (MLI) to enable the company to buy back shares with an aggregate value of up to approximately 0.64 billion pounds.
|
(DGE.L, DEO) said that it is commencing the fourth, and final, phase of its return of capital program of up to 4.5 billion pounds to shareholders to be completed during fiscal year 2023. (RTTNews) - Alcoholic beverage company Diageo plc. Under the first three phases of the return of capital program, which were completed on 31 January 2020, 11 February 2022 and 5 October 2022 respectively, Diageo repurchased shares with an aggregate value of about 3.86 billion pounds.
|
(DGE.L, DEO) said that it is commencing the fourth, and final, phase of its return of capital program of up to 4.5 billion pounds to shareholders to be completed during fiscal year 2023. Under the first three phases of the return of capital program, which were completed on 31 January 2020, 11 February 2022 and 5 October 2022 respectively, Diageo repurchased shares with an aggregate value of about 3.86 billion pounds. Diageo said Tuesday that it has entered into a non-discretionary agreement with Merrill Lynch International (MLI) to enable the company to buy back shares with an aggregate value of up to approximately 0.64 billion pounds.
|
(DGE.L, DEO) said that it is commencing the fourth, and final, phase of its return of capital program of up to 4.5 billion pounds to shareholders to be completed during fiscal year 2023. (RTTNews) - Alcoholic beverage company Diageo plc. Under the first three phases of the return of capital program, which were completed on 31 January 2020, 11 February 2022 and 5 October 2022 respectively, Diageo repurchased shares with an aggregate value of about 3.86 billion pounds.
|
dabe5acd-9ab6-41ab-ad83-c187b2b866a8
|
727596.0
|
2022-10-21 00:00:00 UTC
|
The Zacks Analyst Blog Highlights Intuit, Diageo, Sony Group, Southern, and Boston Scientific
|
DEO
|
https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-intuit-diageo-sony-group-southern-and-boston-scientific
|
nan
|
nan
|
For Immediate Release
Chicago, IL – October 21, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Intuit Inc. INTU, Diageo plc DEO, Sony Group Corp. SONY, The Southern Co. SO, and Boston Scientific Corp. BSX.
Here are highlights from Thursday’s Analyst Blog:
Top Research Reports for Intuit, Diageo and Sony
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Intuit, Diageo plc and Sony Group Corp. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Intuit shares have underperformed against the Zacks Computer – Software industry over the year-to-date period (-37.3% vs. -32.2%). The company is facing macroeconomic and geopolitical headwinds which might significantly hurt small businesses operations, thereby posing risks for Intuit’s top-line growth. Additionally, higher costs and expenses due to increased investments in marketing and engineering teams are likely to continue impacting bottom-line results in the near term.
However, Intuit is benefiting from strong momentum in online ecosystem revenues and solid professional tax revenues. The TurboTax Live offering is also driving growth in the Consumer tax business. Solid momentum in the company’s lending product, QuickBooks Capital, remains a positive.
Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate stable revenues over the long run. We expect Intuit’s revenues to grow at a CAGR of 14.66% through fiscal 2023-2025.
(You can read the full research report on Intuit here >>>)
Diageo's shares have underperformed against the Zacks Beverages - Alcohol industry over the past year (-17.8% vs. -7.1%). Continued inflationary pressures and currency headwinds are concerning for the company. Nevertheless, recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains aided Diageo’s fiscal 2022 results.
It witnessed sales, operating margin and earnings growth driven by organic sales growth across all regions. Price/mix gained from a positive mix due to the robust growth in super-premium-plus brands, particularly scotch, tequila and Chinese white spirits.
DEO’s margin trends were favorable in fiscal 2022, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. It provided a decent view for fiscal 2023, with net sales growth expected across North America, Europe and Asia-Pacific.
(You can read the full research report on Diageo here >>>)
Sony’s shares have declined -41.7% over the past year against the Zacks Audio Video Production industry’s decline of -42.3%. Due to weak macroeconomic conditions, the company trimmed its operating income guidance for fiscal 2022.
Operating income is now projected to decline 8% against earlier projected decline of 3.5%. The company expects operating margin to be likely affected by decline in Game & Network Services unit operating income. Stiff rivalry and high cost-of-goods-sold pose concerns.
However, Sony’s performance is gaining from continued strength in Music and Pictures’ segments. The company remains focused on the premium segment of the branded products market to maximize growth.
For fiscal 2022, the company now expects sales to improve 16% due to higher Music, Pictures and E&TS segment sales. Strategic acquisitions and joint ventures bode well in the long haul. The company continues to expect 18-million-unit sales for its PlayStation 5.
(You can read the full research report on Sony here >>>)
Other noteworthy reports we are featuring today include The Southern Co., and Boston Scientific Corp.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southern Company The (SO): Free Stock Analysis Report
Boston Scientific Corporation (BSX): Free Stock Analysis Report
Intuit Inc. (INTU): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
Sony Corporation (SONY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
DEO’s margin trends were favorable in fiscal 2022, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. Stocks recently featured in the blog include: Intuit Inc. INTU, Diageo plc DEO, Sony Group Corp. SONY, The Southern Co. (You can read the full research report on Diageo here >>>) Sony’s shares have declined -41.7% over the past year against the Zacks Audio Video Production industry’s decline of -42.3%.
|
Stocks recently featured in the blog include: Intuit Inc. INTU, Diageo plc DEO, Sony Group Corp. SONY, The Southern Co. DEO’s margin trends were favorable in fiscal 2022, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. (You can read the full research report on Diageo here >>>) Sony’s shares have declined -41.7% over the past year against the Zacks Audio Video Production industry’s decline of -42.3%.
|
Stocks recently featured in the blog include: Intuit Inc. INTU, Diageo plc DEO, Sony Group Corp. SONY, The Southern Co. DEO’s margin trends were favorable in fiscal 2022, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. (You can read the full research report on Diageo here >>>) Sony’s shares have declined -41.7% over the past year against the Zacks Audio Video Production industry’s decline of -42.3%.
|
Stocks recently featured in the blog include: Intuit Inc. INTU, Diageo plc DEO, Sony Group Corp. SONY, The Southern Co. DEO’s margin trends were favorable in fiscal 2022, thanks to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. (You can read the full research report on Diageo here >>>) Sony’s shares have declined -41.7% over the past year against the Zacks Audio Video Production industry’s decline of -42.3%.
|
4022b1d3-9448-4566-a7cb-29015a44b82d
|
727597.0
|
2022-10-20 00:00:00 UTC
|
Top Research Reports for Intuit, Diageo & Sony
|
DEO
|
https://www.nasdaq.com/articles/top-research-reports-for-intuit-diageo-sony
|
nan
|
nan
|
Thursday, October 20, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Intuit Inc. (INTU), Diageo plc (DEO) and Sony Group Corp. (SONY). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Intuit shares have underperformed against the Zacks Computer – Software industry over the year-to-date period (-37.3% vs. -32.2%). The company is facing macroeconomic and geopolitical headwinds which might significantly hurt small businesses operations, thereby posing risks for Intuit’s top-line growth. Additionally, higher costs and expenses due to increased investments in marketing and engineering teams are likely to continue impacting bottom-line results in the near term.
However, Intuit is benefiting from strong momentum in online ecosystem revenues and solid professional tax revenues. The TurboTax Live offering is also driving growth in the Consumer tax business. Solid momentum in the company’s lending product, QuickBooks Capital, remains a positive.
Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate stable revenues over the long run. We expect Intuit’s revenues to grow at a CAGR of 14.66% through fiscal 2023-2025.
(You can read the full research report on Intuit here >>>)
Diageo's shares have underperformed against the Zacks Beverages - Alcohol industry over the past year (-17.8% vs. -7.1%). Continued inflationary pressures and currency headwinds are concerning for the company. Nevertheless, recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains aided Diageo’s fiscal 2022 results.
It witnessed sales, operating margin and earnings growth in driven by organic sales growth across all regions. Price/mix gained from a positive mix due to the robust growth in super-premium-plus brands, particularly scotch, tequila and Chinese white spirits.
DEO’s margin trends were favorable in fiscal 2022, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. It provided a decent view for fiscal 2023, with net sales growth expected across North America, Europe and Asia-Pacific.
(You can read the full research report on Diageo here >>>)
Sony’s shares have declined -41.7% over the past year against the Zacks Audio Video Production industry’s decline of -42.3%. Due to weak macro-economic conditions, the company trimmed its operating income guidance for fiscal 2022.
Operating income is now projected to decline 8% against earlier projected decline of 3.5%. The company expects operating margin to be likely affected by decline in Game & Network Services unit operating income. Stiff rivalry and high cost-of-goods-sold pose concerns.
However, Sony’s performance is gaining from continued strength in Music and Pictures’ segments. The company remains focused on the premium segment of the branded products market to maximize growth.
For fiscal 2022, the company now expects sales to improve 16% due to higher Music, Pictures and E&TS segment sales. Strategic acquisitions and joint ventures bode well in the long haul. The company continues to expect 18-million-unit sales for its PlayStation 5
(You can read the full research report on Sony here >>>)
Other noteworthy reports we are featuring today include ServiceNow, Inc. (NOW), The Southern Co. (SO), and Boston Scientific Corp. (BSX).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Diageo's (DEO) Focus on Premium Brands to Boost Growth
Higher Music & Pictures Sales Benefit SONY Amid Rising Costs
Featured Reports
Growing Customer Base & Partnerships Aid ServiceNow (NOW)
Per the Zacks analyst, ServiceNow benefits from rising adoption of its workflows from companies undergoing digital transformation. Also, strategic alliances with the likes of Microsoft are a tailwind.
New Buyouts Aid Boston Scientific (BSX), Core CRM Grows
Per the Zacks analyst, Boston Scientific is gaining from its strategic buyouts of Preventice, Farapulse and Lumenis Surgical. In core Cardiac Rhythm Management (CRM), stronger S-ICD sales aid growth.
Arthur J. Gallagher (AJG) Buyouts Aid, Cost Woes Linger
Per the Zacks analyst, a number of acquisitions have helped Arthur J. Gallagher to enhance its capabilities and drive growth. However, elevated expenses remain an overhang.
Fastenal (FAST) Gains From E-Commerce, Inflation Hurts
Per the Zacks analyst, continued enhancement of daily sales through e-commerce will drive Fastenal's growth. However, inflationary pressures, tight supply chains and labor shortages are risks.
Steady Investment & Renewable Focus Aid Eversource (ES)
Per the Zacks analyst, Eversource's investment of $18.1 billion within 2022-2026 time period will boost clean electricity generation, fortify its infrastructure and increase reliability of its service
Customer Retention Aid Rollins (ROL), Rising Costs Ail
Per the Zacks analyst, Rollins' organic revenue growth rate is healthy driven by strong technician and customer retention. Rising expenses remain a concern.
Intra-Cellular (ICPT) Thrives on Caplyta, Overdependence a Concern
Per the Zacks analyst, Intra-Cellular's CNS disorder drug Caplyta is witnessing higher sales and a strong uptake since approval. However, sole dependence on Caplyta for revenues remains a headwind.
New Upgrades
Southern Company (SO) Buoyed by Regulated Customer Growth
The Zacks analyst believes that steady increase in Southern Company's regulated business customer base should support its revenue growth.n
Tapestry's (TPR) Strong Digital Endeavors to Boost Sales
Per the Zacks analyst, Tapestry has been directing resources toward expanding digital and data analytics capabilities. During the fourth quarter global digital sales increased in high-single digits.
Higher Rates, Loan Demand Support Washington Federal (WAFD)
Per the Zacks analyst, higher interest rates, steady growth in loan demand and a robust balance sheet and liquidity position will likely continue aiding Washington Federal's top line growth.
New Downgrades
SM Energy (SM) to Incur Potential Losses Through Hedging
Despite a strong hedging position, SM Energy is likely to incur massive hedging losses due to high commodity prices. This can affect its future cash flow generation, concerning the Zacks analyst.
Higher Costs, Weaker Demand Ail ArcelorMittal (MT)
Per the Zacks analyst, higher iron ore, coal and energy costs will weigh on the company's margins. The slowdown in steel demand globally in also a concern.
Supply Chain Constraints Hurt Philips' (PHG) Prospects
Per the Zacks analyst, global supply chain challenges, rising inflation and the Russia-Ukraine war have hurt Philip' high margin business segments, impacting growth prospects negatively.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southern Company The (SO): Free Stock Analysis Report
Boston Scientific Corporation (BSX): Free Stock Analysis Report
Intuit Inc. (INTU): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
ServiceNow, Inc. (NOW): Free Stock Analysis Report
Sony Corporation (SONY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
DEO’s margin trends were favorable in fiscal 2022, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Intuit (INTU) Rides on Product Refresh, Higher Subscriptions Diageo's (DEO) Focus on Premium Brands to Boost Growth Higher Music & Pictures Sales Benefit SONY Amid Rising Costs Featured Reports Growing Customer Base & Partnerships Aid ServiceNow (NOW) Per the Zacks analyst, ServiceNow benefits from rising adoption of its workflows from companies undergoing digital transformation. Today's Research Daily features new research reports on 12 major stocks, including Intuit Inc. (INTU), Diageo plc (DEO) and Sony Group Corp. (SONY).
|
If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Intuit (INTU) Rides on Product Refresh, Higher Subscriptions Diageo's (DEO) Focus on Premium Brands to Boost Growth Higher Music & Pictures Sales Benefit SONY Amid Rising Costs Featured Reports Growing Customer Base & Partnerships Aid ServiceNow (NOW) Per the Zacks analyst, ServiceNow benefits from rising adoption of its workflows from companies undergoing digital transformation. Today's Research Daily features new research reports on 12 major stocks, including Intuit Inc. (INTU), Diageo plc (DEO) and Sony Group Corp. (SONY). DEO’s margin trends were favorable in fiscal 2022, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation.
|
If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Intuit (INTU) Rides on Product Refresh, Higher Subscriptions Diageo's (DEO) Focus on Premium Brands to Boost Growth Higher Music & Pictures Sales Benefit SONY Amid Rising Costs Featured Reports Growing Customer Base & Partnerships Aid ServiceNow (NOW) Per the Zacks analyst, ServiceNow benefits from rising adoption of its workflows from companies undergoing digital transformation. Today's Research Daily features new research reports on 12 major stocks, including Intuit Inc. (INTU), Diageo plc (DEO) and Sony Group Corp. (SONY). DEO’s margin trends were favorable in fiscal 2022, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation.
|
If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Intuit (INTU) Rides on Product Refresh, Higher Subscriptions Diageo's (DEO) Focus on Premium Brands to Boost Growth Higher Music & Pictures Sales Benefit SONY Amid Rising Costs Featured Reports Growing Customer Base & Partnerships Aid ServiceNow (NOW) Per the Zacks analyst, ServiceNow benefits from rising adoption of its workflows from companies undergoing digital transformation. Today's Research Daily features new research reports on 12 major stocks, including Intuit Inc. (INTU), Diageo plc (DEO) and Sony Group Corp. (SONY). DEO’s margin trends were favorable in fiscal 2022, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation.
|
ca1bb31e-dd83-4f4c-b4fd-ad91eb9a27c0
|
727598.0
|
2022-10-12 00:00:00 UTC
|
Cheers! 2 Top Alcohol Stocks for Recession-Resistant Dividend Growth
|
DEO
|
https://www.nasdaq.com/articles/cheers-2-top-alcohol-stocks-for-recession-resistant-dividend-growth
|
nan
|
nan
|
Constellation Brands (NYSE: STZ) and U.K-based Diageo (NYSE: DEO)(GB: DGE) are two of the highest-quality stocks in the alcohol space. Their portfolio brands are the strongest in the industry.
Diageo owns the world's best-selling Scotch whisky brand, Johnny Walker, the world’s best-selling premium distilled vodka (Smirnoff), and the world-leading iconic stout (Guinness), among other world-leading brands. Constellation's brand portfolio is equally renowned, with names such as Corona, WOODBRIDGE, SVEDKA Vodka, and various prominent brands.
Additionally, both companies support strong dividend-growth prospects. However, as has historically been the case in the industry, both Constellation Brands and Diageo trade at rather elevated valuation multiples. Accordingly, I am neutral on both names.
Why Choose Alcohol Stocks in the Current Market Environment?
Alcohol stocks are generally viewed as ideal investments during economic downturns like the one we are currently experiencing. This is due to alcohol consumption being largely uncorrelated with the state of the economy.
In fact, during a recession, consumers are likely to increase alcohol consumption at home, while companies in the space retain fantastic pricing power during such periods. This makes alcohol companies particularly attractive during the current highly-inflationary environment as well.
Do DEO's & STZ's Earnings Growth Remain Strong?
Despite the underlying challenges currently impacting the overall economy, both Constellation Brands and Diageo are set to report record earnings this year.
Last week, Constellation Brands reported its Q2 Fiscal 2023 results, with net sales coming in at $2.66 billion, up 12% year-over-year. Operating cash flow amounted to $1.7 billion, while free cash flow reached $1.2 billion, an increase of 8% and 4%, respectively, highlighting the industry's high margins.
Management expects the company to achieve comparable adjusted earnings per share (excludes losses from Canopy) between $11.20 and $11.60. At the midpoint, it implies a 3.7% increase compared to Fiscal 2022's $10.99 and another earnings-per-share all-time high for the company.
In late July, Diageo reported its Fiscal 2022 results, with sales growth coming in at 21.4% and adjusted earnings-per-share growth coming in at 29.3% (in British pounds). Fiscal 2023 is also expected to be a fantastic year for Diego, with analysts expecting adjusted earnings per share to land at $8.38, implying growth of nearly 15% versus Fiscal 2022. Similar to Constellation brands, this will mark another record year of profitability for the company.
Earnings Growth to Drive Dividend Growth
Amid robust earnings growth, I expect both companies to continue to grow their dividends at satisfactory rates.
Diageo already features an exceptional dividend-growth track record. The company has increased its dividend annually for 24 consecutive years (in GBP). Its 10-year dividend-per-share CAGR stands at 5.76%. It's not a spectacular growth rate but quite a pleasant one considering the overall consistency in Diageo's track record.
Constellation Brands didn't start paying out dividends until late 2015, but they have since grown quite rapidly. The company's five-year dividend-per-share CAGR stands at 13.7% despite dividend growth slowing down over the past couple of years.
Based on the midpoint of Constellation Brands' guidance and Diageo's consensus earnings-per-share estimates, the two companies feature payout ratios of 28% and 45%, respectively. With earnings set to hit new records this year and both payout ratios appearing comfortable, dividend growth should remain at least in the mid-single digits, going forward.
Are STZ and DEO Shares Reasonably Valued?
High valuations are common among alcohol companies. Acquisitions in the space usually take place at elevated multiples, as the industry features resilient cash flows, strong brand power, and high margins. Accordingly, both Constellation Brands and Diageo have historically traded at a premium.
Both stocks currently trade at forward P/E ratios close to 21-22x. They're not crazy figures, but they're certainly quite high ones considering rising interest rates and the ongoing compression in multiples.
Combined with their nice but not great yields of 1.4% and 2.0%, I believe that both stocks offer an undersized margin of safety if their valuations were to actually undergo a compression. Both stocks appear modestly overvalued in the current environment.
What is the Price Target for STZ Stock?
Turning to Wall Street, Constellation Brands has a Strong Buy consensus rating based on eight Buys and two Holds assigned in the past three months. The average Constellation Brands price target of $276.50 suggests 24.9% upside potential.
What is the Price Target for DEO Stock?
Diageo also features similar upside potential, according to Wall Street. The stock has a Moderate Buy consensus rating based on two Buys assigned in the past three months.
The average Diageo price target of $207.50 suggests 26.5% upside potential.
Conclusion: Solid Companies at a Steep Price
Constellation Brands and Diageo enjoy recession and inflation-resistant business models. Alcohol consumption is quite resilient, and both companies are set for another year of record profits ahead.
Dividend growth investors are likely to appreciate both names, and especially Diageo, due to its prolonged dividend-growth record. Still, I find both stocks modestly undervalued in the face of rising rates. Thus, investors should be wary before allocating capital to Constellation Brands and Diageo and avoid overpaying, despite their qualities.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Constellation Brands (NYSE: STZ) and U.K-based Diageo (NYSE: DEO)(GB: DGE) are two of the highest-quality stocks in the alcohol space. Do DEO's & STZ's Earnings Growth Remain Strong? Are STZ and DEO Shares Reasonably Valued?
|
Constellation Brands (NYSE: STZ) and U.K-based Diageo (NYSE: DEO)(GB: DGE) are two of the highest-quality stocks in the alcohol space. Do DEO's & STZ's Earnings Growth Remain Strong? Are STZ and DEO Shares Reasonably Valued?
|
Constellation Brands (NYSE: STZ) and U.K-based Diageo (NYSE: DEO)(GB: DGE) are two of the highest-quality stocks in the alcohol space. Do DEO's & STZ's Earnings Growth Remain Strong? Are STZ and DEO Shares Reasonably Valued?
|
Constellation Brands (NYSE: STZ) and U.K-based Diageo (NYSE: DEO)(GB: DGE) are two of the highest-quality stocks in the alcohol space. Do DEO's & STZ's Earnings Growth Remain Strong? Are STZ and DEO Shares Reasonably Valued?
|
b10d8ca4-681c-4281-aa73-cde065a74300
|
727599.0
|
2022-10-06 00:00:00 UTC
|
Should You Buy Diageo Stock At $175?
|
DEO
|
https://www.nasdaq.com/articles/should-you-buy-diageo-stock-at-%24175
|
nan
|
nan
|
Diageo’s stock (NYSE: DEO) is down 20% this year, aligning with the 20% fall in the broader S&P 500 index. A high inflationary environment and slowing economic growth will likely affect consumer demand, impacting food and beverage stocks. Diageo’s peer, Anheuser-Busch Inbev stock (NYSE: BUD), has also seen a 21% fall this year. However, DEO stock looks like it has room for growth, in our view.
Diageo recently announced the acquisition of premium cold brew coffee liqueur – Mr Black – funded through the company’s existing cash resources. Mr Black is popular in the U.S., and this acquisition will bolster the region’s sales growth. Furthermore, the company should benefit from the strengthening dollar. It reports its numbers in GBP while it generates a third of its sales from the North America region. While GBP has lost around 20% of its value against the USD this year, there is likely to be some relief for the Sterling after the U.K. government decided not to proceed with the abolition of the 45% tax rate on higher income earners. Still, the USD will likely remain strong in the near term boding well for Diageo’s revenue growth. Diageo has also expanded its organic operating margins in fiscal 2022 driven by premiumization and improved fixed cost absorption from volume growth. Also, price increases helped negate the impact of cost inflation.
Looking at DEO stock, we estimate Diageo’s valuation to be $201 per share, reflecting an 14% upside from its current market price of $176, implying that there is more room for growth. Our valuation represents a forward P/E ratio of around 25x based on our earnings forecast of $8.20 on a per share and adjusted basis for full-fiscal 2023. This compares with an average of 26x seen over the last two years. That said, investors should take into account the near-term risks. DEO stock faces headwinds from the current weakness in broader markets. The S&P500 is in a bear market territory with rising concerns of a recession, given the high inflation, Fed action, and supply chain disruptions.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Oct 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
DEO Return 4% -20% 69%
S&P 500 Return 6% -20% 69%
Trefis Multi-Strategy Portfolio 8% -21% 214%
[1] Month-to-date and year-to-date as of 10/5/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at DEO stock, we estimate Diageo’s valuation to be $201 per share, reflecting an 14% upside from its current market price of $176, implying that there is more room for growth. Diageo’s stock (NYSE: DEO) is down 20% this year, aligning with the 20% fall in the broader S&P 500 index. However, DEO stock looks like it has room for growth, in our view.
|
Diageo’s stock (NYSE: DEO) is down 20% this year, aligning with the 20% fall in the broader S&P 500 index. Looking at DEO stock, we estimate Diageo’s valuation to be $201 per share, reflecting an 14% upside from its current market price of $176, implying that there is more room for growth. Total [2] DEO Return 4% -20% 69% S&P 500 Return 6% -20% 69% Trefis Multi-Strategy Portfolio 8% -21% 214% [1] Month-to-date and year-to-date as of 10/5/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo’s stock (NYSE: DEO) is down 20% this year, aligning with the 20% fall in the broader S&P 500 index. Looking at DEO stock, we estimate Diageo’s valuation to be $201 per share, reflecting an 14% upside from its current market price of $176, implying that there is more room for growth. Total [2] DEO Return 4% -20% 69% S&P 500 Return 6% -20% 69% Trefis Multi-Strategy Portfolio 8% -21% 214% [1] Month-to-date and year-to-date as of 10/5/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Diageo’s stock (NYSE: DEO) is down 20% this year, aligning with the 20% fall in the broader S&P 500 index. Looking at DEO stock, we estimate Diageo’s valuation to be $201 per share, reflecting an 14% upside from its current market price of $176, implying that there is more room for growth. Total [2] DEO Return 4% -20% 69% S&P 500 Return 6% -20% 69% Trefis Multi-Strategy Portfolio 8% -21% 214% [1] Month-to-date and year-to-date as of 10/5/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
5688233b-b883-4884-b9ac-3d2bc29d751f
|
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.