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727600.0
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2022-10-06 00:00:00 UTC
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Consumer Sector Update for 10/06/2022: DEO, IGT, STZ, XLP, XLY
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DEO
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https://www.nasdaq.com/articles/consumer-sector-update-for-10-06-2022%3A-deo-igt-stz-xlp-xly
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nan
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nan
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Consumer stocks were declining premarket Thursday. The Consumer Staples Select Sector SPDR Fund (XLP) was 0.09% lower and the Consumer Discretionary Select Sector SPDR Fund (XLY) was declining by 0.5% recently.
Diageo (DEO) said it remains "well-positioned" to meet its medium-term outlook, despite expectations for the operating environment to remain challenging. Diageo shares were over 1% lower recently.
International Game Technology (IGT) said its IGT Global Solutions subsidiary has signed a new 10-year contract to print lottery tickets for the Texas Lottery Commission, extending its work with the state agency through August 2034. International Game Technology was declining 0.06% in recent market activity.
Constellation Brands (STZ) reported fiscal Q2 non-GAAP earnings of $3.17 per diluted share, up from $2.38 a year ago. Analysts polled by Capital IQ estimated $2.81. Constellation Brands was 0.4% lower in recent premarket activity.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Diageo (DEO) said it remains "well-positioned" to meet its medium-term outlook, despite expectations for the operating environment to remain challenging. The Consumer Staples Select Sector SPDR Fund (XLP) was 0.09% lower and the Consumer Discretionary Select Sector SPDR Fund (XLY) was declining by 0.5% recently. International Game Technology (IGT) said its IGT Global Solutions subsidiary has signed a new 10-year contract to print lottery tickets for the Texas Lottery Commission, extending its work with the state agency through August 2034. International Game Technology was declining 0.06% in recent market activity.
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Diageo (DEO) said it remains "well-positioned" to meet its medium-term outlook, despite expectations for the operating environment to remain challenging. The Consumer Staples Select Sector SPDR Fund (XLP) was 0.09% lower and the Consumer Discretionary Select Sector SPDR Fund (XLY) was declining by 0.5% recently. International Game Technology (IGT) said its IGT Global Solutions subsidiary has signed a new 10-year contract to print lottery tickets for the Texas Lottery Commission, extending its work with the state agency through August 2034. International Game Technology was declining 0.06% in recent market activity.
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Diageo (DEO) said it remains "well-positioned" to meet its medium-term outlook, despite expectations for the operating environment to remain challenging. The Consumer Staples Select Sector SPDR Fund (XLP) was 0.09% lower and the Consumer Discretionary Select Sector SPDR Fund (XLY) was declining by 0.5% recently. International Game Technology (IGT) said its IGT Global Solutions subsidiary has signed a new 10-year contract to print lottery tickets for the Texas Lottery Commission, extending its work with the state agency through August 2034. International Game Technology was declining 0.06% in recent market activity.
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Diageo (DEO) said it remains "well-positioned" to meet its medium-term outlook, despite expectations for the operating environment to remain challenging. Consumer stocks were declining premarket Thursday. Diageo shares were over 1% lower recently.
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ab91974e-c71a-42cf-b47c-845a5a6cee44
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727601.0
|
2022-10-05 00:00:00 UTC
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Know the Diageo (DEO) Stock In and Out Before Investing
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DEO
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https://www.nasdaq.com/articles/know-the-diageo-deo-stock-in-and-out-before-investing
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nan
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nan
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Diageo plc DEO is well-poised for growth from effective marketing and exceptional commercial execution. Diageo expects to invest strongly in marketing and innovation, and leverage its revenue growth management capabilities, including strategic pricing actions. This is likely to support the company’s momentum in the near and long terms.
The company has been benefitting from a sustained recovery in the on-trade channel, strong consumer demand in the off-trade channel and market share gains.
Diageo is anticipated to retain the strong business momentum on continued premiumization efforts and favorable industry trends, particularly in the spirits category. DEO’s organic net sales were up 21.4% year over year in fiscal 2022. Recovery in the on-trade channel in North America and Europe, and the partial recovery in Travel Retail have been aiding the price/mix. The company’s positive mix also resulted from the robust performance of super-premium-plus brands, particularly scotch, tequila and Chinese white spirits.
DEO’s margin trends were favorable in fiscal 2022, owing to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. The company delivered £380 million of productivity savings in fiscal 2022, driven by COGS productivity and marketing effectiveness. The company’s operating profit improved 18.2% in fiscal 2022, driven by robust organic operating profit growth.
Although Diageo expects the operating environment to be challenging in fiscal 2023, it remains confident in the resilience of its business and its ability to navigate through the 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.
Diageo 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 rise of 6-9%.
For fiscal 2023, the company expects net sales growth across North America, Europe and the Asia Pacific. However, the growth rate is likely to moderate from the fiscal 2022 level due to the robust on-trade recovery witnessed in fiscal 2022. It anticipates continued organic operating margin growth in fiscal 2023, driven by strong premiumization trends and operating leverage despite continued investment in marketing. It expects an effective interest rate of 3.5% for fiscal 2023.
However, Diageo has been witnessing inflationary pressures, driven by higher commodity costs, particularly agave, energy expenses and supply disruptions. Higher commodity costs, particularly agave, energy expenses and supply disruptions, have been key headwinds. As a substantial portion of Diageo’s business comes from international operations, exchange rate fluctuations have been hampering its sales.
DEO also remains susceptible to adverse currency rates. While the weakening of sterling against the U.S. dollar and some impacts of emerging market currencies look favorable, Diageo expects adverse currency impacts of hyperinflationary economies, primarily Turkey.
Wrapping Up
Diageo, which shares space with Constellation Brands STZ, Coca-Cola Company KO and PepsiCo Inc. PEP, has been gaining strength from premiumization, innovation and digital initiatives.
A Synopsis of Other Stocks
Constellation Brands reported the third straight quarter of an earnings and sales beat in first-quarter fiscal 2023. Results benefited from strong consumer demand for its portfolio of premium, high-end products, and double-digit sales growth in the beer business.
Constellation Brands’ beer business depletion volume benefited from strength in Modelo Especial and resilient growth in Corona Extra. High-end Power Brands, including The Prisoner Brand Family, Kim Crawford and Meiomi, acted as key growth drivers for STZ. Management issued an upbeat fiscal 2023 view.
Coca-Cola’s top and bottom lines surpassed estimates for the sixth straight quarter. The company’s results reflect elasticity in the marketplace despite the ongoing global challenges. KO’s sales gained from revenue growth across its operating segments, aided by an improved price/mix and an increase in concentrate sales.
Coca-Cola benefited from underlying share gains in both at-home and away-from-home channels. It raised the organic revenues and comparable earnings per share growth guidance for 2022. KO is poised to gain from innovations and accelerating digital investments.
PepsiCo’s revenues and earnings beat the Zacks Consensus Estimate and improved year over year in the second quarter. This marked the 16th straight quarter of sales beat. PEP benefits from the resilience and strength of global beverage and convenient food businesses.
PepsiCo continues to benefit from investments in brands, go-to-market systems, supply chains, manufacturing capacity and digital capabilities to build competitive advantages. It also gained from the resilience and strength in the global beverage and convenient food businesses. It expects to benefit by delivering convenience, variety and value proposition to customers through its brands. PEP raised its revenue view for 2022.
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CocaCola Company The (KO): Free Stock Analysis Report
PepsiCo, Inc. (PEP): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
Constellation Brands Inc (STZ): 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.
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DEO’s margin trends were favorable in fiscal 2022, owing to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. Diageo plc DEO is well-poised for growth from effective marketing and exceptional commercial execution. DEO’s organic net sales were up 21.4% year over year in fiscal 2022.
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DEO’s margin trends were favorable in fiscal 2022, owing to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. Diageo plc DEO is well-poised for growth from effective marketing and exceptional commercial execution. DEO’s organic net sales were up 21.4% year over year in fiscal 2022.
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Diageo plc DEO is well-poised for growth from effective marketing and exceptional commercial execution. DEO’s organic net sales were up 21.4% year over year in fiscal 2022. DEO’s margin trends were favorable in fiscal 2022, owing to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation.
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Diageo plc DEO is well-poised for growth from effective marketing and exceptional commercial execution. DEO’s organic net sales were up 21.4% year over year in fiscal 2022. DEO’s margin trends were favorable in fiscal 2022, owing to its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation.
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3f1290b9-d6e1-4a85-882e-ee56d91c88ac
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727602.0
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2022-09-26 00:00:00 UTC
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Diageo plc - ADR Shares Near 52-Week Low - Market Mover
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DEO
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https://www.nasdaq.com/articles/diageo-plc-adr-shares-near-52-week-low-market-mover
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nan
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nan
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Diageo plc - ADR (DEO) shares closed today at 1.8% above its 52 week low of $164.19, giving the company a market cap of $95B. The stock is currently down 22.6% year-to-date, down 10.9% over the past 12 months, and up 43.4% over the past five years. This week, the Dow Jones Industrial Average fell 5.1%, and the S&P 500 fell 5.4%.
Trading Activity
Trading volume this week was 37.3% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.7.
Technical Indicators
The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought.
MACD, a trend-following momentum indicator, indicates a downward 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 , beats 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 , beats 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 172.0%
The company's stock price performance over the past 12 months lags the peer average by 235.1%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 113.5% higher 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.
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Diageo plc - ADR (DEO) shares closed today at 1.8% above its 52 week low of $164.19, giving the company a market cap of $95B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.7. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats 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 , beats 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 172.0% The company's stock price performance over the past 12 months lags the peer average by 235.1% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 113.5% higher than the average peer.
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Diageo plc - ADR (DEO) shares closed today at 1.8% above its 52 week low of $164.19, giving the company a market cap of $95B. This week, the Dow Jones Industrial Average fell 5.1%, and the S&P 500 fell 5.4%. Trading Activity Trading volume this week was 37.3% higher than the 20-day average.
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Diageo plc - ADR (DEO) shares closed today at 1.8% above its 52 week low of $164.19, giving the company a market cap of $95B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats 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 , beats 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 172.0% The company's stock price performance over the past 12 months lags the peer average by 235.1% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 113.5% higher than the average peer. This story was produced by the Kwhen Automated News Generator.
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Diageo plc - ADR (DEO) shares closed today at 1.8% above its 52 week low of $164.19, giving the company a market cap of $95B. This week, the Dow Jones Industrial Average fell 5.1%, and the S&P 500 fell 5.4%. Technical Indicators The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought.
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58087189-f41f-40a7-a93b-c74ddd5a14f1
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727603.0
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2022-09-26 00:00:00 UTC
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CABGY or DEO: Which Is the Better Value Stock Right Now?
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DEO
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https://www.nasdaq.com/articles/cabgy-or-deo%3A-which-is-the-better-value-stock-right-now
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nan
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nan
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Investors with an interest in Beverages - Alcohol stocks have likely encountered both Carlsberg AS (CABGY) 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.
Carlsberg AS has a Zacks Rank of #2 (Buy), while Diageo has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CABGY 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.
CABGY currently has a forward P/E ratio of 17.23, while DEO has a forward P/E of 20.35. We also note that CABGY has a PEG ratio of 1.89. 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 2.19.
Another notable valuation metric for CABGY is its P/B ratio of 2.26. 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 8.23.
These metrics, and several others, help CABGY earn a Value grade of B, while DEO has been given a Value grade of C.
CABGY 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 CABGY is likely 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.
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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.
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Investors with an interest in Beverages - Alcohol stocks have likely encountered both Carlsberg AS (CABGY) and Diageo (DEO). CABGY currently has a forward P/E ratio of 17.23, while DEO has a forward P/E of 20.35. DEO currently has a PEG ratio of 2.19.
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Diageo plc (DEO): Free Stock Analysis Report Investors with an interest in Beverages - Alcohol stocks have likely encountered both Carlsberg AS (CABGY) and Diageo (DEO). CABGY currently has a forward P/E ratio of 17.23, while DEO has a forward P/E of 20.35.
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Investors with an interest in Beverages - Alcohol stocks have likely encountered both Carlsberg AS (CABGY) and Diageo (DEO). These metrics, and several others, help CABGY earn a Value grade of B, while DEO has been given a Value grade of C. CABGY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. CABGY currently has a forward P/E ratio of 17.23, while DEO has a forward P/E of 20.35.
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DEO currently has a PEG ratio of 2.19. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Carlsberg AS (CABGY) and Diageo (DEO). CABGY currently has a forward P/E ratio of 17.23, while DEO has a forward P/E of 20.35.
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17b214c5-8901-4718-b5b7-a056e2fc82de
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727604.0
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2022-09-23 00:00:00 UTC
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Diageo is Now Oversold (DEO)
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DEO
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https://www.nasdaq.com/articles/diageo-is-now-oversold-deo-0
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nan
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nan
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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 Friday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 26.7, after changing hands as low as $165.50 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 29.8. A bullish investor could look at DEO's 26.7 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 $165.50 per share, with $223.14 as the 52 week high point — that compares with a last trade of $166.89.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 26.7, after changing hands as low as $165.50 per share. A bullish investor could look at DEO's 26.7 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 $165.50 per share, with $223.14 as the 52 week high point — that compares with a last trade of $166.89.
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A bullish investor could look at DEO's 26.7 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 $165.50 per share, with $223.14 as the 52 week high point — that compares with a last trade of $166.89. In trading on Friday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 26.7, after changing hands as low as $165.50 per share.
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In trading on Friday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 26.7, after changing hands as low as $165.50 per share. A bullish investor could look at DEO's 26.7 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 $165.50 per share, with $223.14 as the 52 week high point — that compares with a last trade of $166.89.
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In trading on Friday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 26.7, after changing hands as low as $165.50 per share. A bullish investor could look at DEO's 26.7 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 $165.50 per share, with $223.14 as the 52 week high point — that compares with a last trade of $166.89.
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7db4ed39-3dbe-4cbe-acec-8496ce7595bc
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727605.0
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2022-09-02 00:00:00 UTC
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4 Lucrative Alcohol Stocks to Watch as Industry Trends Recover
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DEO
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https://www.nasdaq.com/articles/4-lucrative-alcohol-stocks-to-watch-as-industry-trends-recover
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nan
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nan
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Players in the Zacks Beverages – Alcohol industry have been benefiting from the continued recovery in the on-premise channel, robust demand in the off-premise channel and the revival of Travel Retail. Continued online and e-commerce investments, as well as a focus on innovation and premiumization, have been drivers. 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).
However, supply-chain disruptions, which have led to product shortages due to port congestion-related supply delays, have been headwinds. Escalated input, freight and packaging costs, along with higher advertising expenses, may continue to be headwinds.
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 desire for refreshing and newer tastes. The companies in the industry have been focused on investing in crafting a diverse portfolio of global and specialty premium brands. The companies have been exploring opportunities beyond the traditional beer, whiskey, spirits and wine categories. Some popular variations that have gained traction include Ready to Drink (RTD) spirits like canned wine and canned cocktails, hard seltzers, cider, and flavored malt beverages. To capitalize on the consumer trends, companies have been resorting to innovative products. Notably, RTD has emerged as the fastest-growing alcohol segment since 2018. The same is expected to rise 29% over the next three years, per IWSR Drinks Market Analysis. Most companies in the industry have made collaborations to growth their shares in the fast-growing RTD category.
E-Commerce Development & Recovery Across Markets: Companies in the alcohol space have been gaining from the rise of e-commerce, a recovery in the on-premise channel, continued demand in off-premise, and the revival of tourism and the Travel Retail business. These have led to volume growth for beverage companies. Companies have been benefiting from price increases and supply productivity savings, which have been offsetting the effects of cost inflation. Effective marketing and exceptional commercial execution have been boosting the sale of alcohol companies. 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.
Supply-Chain Disruptions & Elevated Costs: Players in the alcohol industry have been witnessing pressures from the ongoing supply-chain constraints, and the impacts of the inflationary labor, transportation and commodity costs. The industry players are 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 are 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.
Players in the alcohol industry are also anticipated to witness higher advertising and promotional expenses, as well as SG&A costs, further threatening profitability. Rising brand investments 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.
Zacks Industry Rank Indicates Bright 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 #72. The rank places it at the top 29% 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 bright 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 top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining 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 lost 2.3%, the Zacks S&P 500 composite and the Zacks Consumer Staples sector have declined 14.1% and 6.4%, 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 23.23X compared with the S&P 500’s 17.07X and the sector’s 18.83X.
Over the last five years, the industry traded as high as 29.22X, as low as 18.78X and at the median of 24.02X, 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.
Diageo Plc: 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 the cost inflation. DEO is poised to benefit from continued investments in marketing and innovation to capture organic sales growth in its well-positioned premium brands’ portfolio.
Diageo has been relentlessly working to leverage its existing e-commerce capabilities and accelerate investments in the online platform. The company expects net sales growth across North America, Europe and the Asia Pacific in fiscal 2023, driven by continued premiumization efforts and favorable industry trends, particularly in the spirits category. DEO has declined 10.3% in the past year and currently carries a Zacks Rank #2. The Zacks Consensus Estimate for DEO’s fiscal 2023 sales and earnings suggests growth of 15.7% and 7.7%, respectively, from the year-ago period’s reported figures. The consensus estimate for current-year earnings has moved down 1% in the past seven 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 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, investment in its brands and accelerated digital transformation, have 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 recently 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 8.2% and 5.3%, respectively, from the year-ago period’s reported figures. The consensus mark for 2022 earnings has been unchanged in the past 30 days. BUD has declined 19.9% in the past year. It carries a Zacks Rank #3 at present.
Price and Consensus: BUD
Constellation Brands Inc: 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 0.2% in the past 30 days. The consensus estimate for fiscal 2023 sales and earnings suggests growth of 7.6% and 7.2%, respectively, from the year-ago period’s reported figures. The STZ stock has rallied 16.8% in the past year. It has a Zacks Rank #3 at present.
Price and Consensus: STZ
Brown-Forman: The Louisville, KY-based leading alcoholic beverages company has been benefiting from increased demand for its brands, mainly the 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, the Jack Daniel's Tennessee Whiskey has been the key contributor of 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 moved down 1% in the past seven days. The Zacks Consensus Estimate for fiscal 2023 sales and earnings suggests growth of 3.3% and 12.1% from the year-ago period’s reported figure. BF.B has risen 2.2% in the past year. It currently has a Zacks Rank #3.
Price and Consensus: BF.B
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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.
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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 brands’ portfolio. DEO has declined 10.3% in the past year and currently carries a Zacks Rank #2.
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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 brands’ portfolio. DEO has declined 10.3% in the past year and currently carries a Zacks Rank #2.
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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 brands’ portfolio. DEO has declined 10.3% in the past year and currently carries a Zacks Rank #2.
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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 brands’ portfolio. DEO has declined 10.3% in the past year and currently carries a Zacks Rank #2.
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2022-08-31 00:00:00 UTC
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KNBWY vs. DEO: Which Stock Is the Better Value Option?
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DEO
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https://www.nasdaq.com/articles/knbwy-vs.-deo%3A-which-stock-is-the-better-value-option
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Investors with an interest in Beverages - Alcohol stocks have likely encountered both Kirin Holdings Co. (KNBWY) 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.
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.
Kirin Holdings Co. and Diageo are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that KNBWY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
KNBWY currently has a forward P/E ratio of 9.50, while DEO has a forward P/E of 21.57. We also note that KNBWY has a PEG ratio of 0.33. 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 2.46.
Another notable valuation metric for KNBWY is its P/B ratio of 1.33. 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 8.82.
These metrics, and several others, help KNBWY earn a Value grade of A, while DEO has been given a Value grade of C.
KNBWY stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KNBWY is the superior value option right now.
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Kirin Holdings Co. (KNBWY): 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.
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Investors with an interest in Beverages - Alcohol stocks have likely encountered both Kirin Holdings Co. (KNBWY) and Diageo (DEO). KNBWY currently has a forward P/E ratio of 9.50, while DEO has a forward P/E of 21.57. DEO currently has a PEG ratio of 2.46.
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Diageo plc (DEO): Free Stock Analysis Report Investors with an interest in Beverages - Alcohol stocks have likely encountered both Kirin Holdings Co. (KNBWY) and Diageo (DEO). KNBWY currently has a forward P/E ratio of 9.50, while DEO has a forward P/E of 21.57.
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Investors with an interest in Beverages - Alcohol stocks have likely encountered both Kirin Holdings Co. (KNBWY) and Diageo (DEO). These metrics, and several others, help KNBWY earn a Value grade of A, while DEO has been given a Value grade of C. KNBWY stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KNBWY is the superior value option right now. KNBWY currently has a forward P/E ratio of 9.50, while DEO has a forward P/E of 21.57.
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Investors with an interest in Beverages - Alcohol stocks have likely encountered both Kirin Holdings Co. (KNBWY) and Diageo (DEO). These metrics, and several others, help KNBWY earn a Value grade of A, while DEO has been given a Value grade of C. KNBWY stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KNBWY is the superior value option right now. KNBWY currently has a forward P/E ratio of 9.50, while DEO has a forward P/E of 21.57.
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727607.0
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2022-08-31 00:00:00 UTC
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Brown-Forman (BF.B) Earnings & Sales Top Estimates in Q1
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DEO
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https://www.nasdaq.com/articles/brown-forman-bf.b-earnings-sales-top-estimates-in-q1
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Brown-Forman Corporation (BF.B) has reported robust first-quarter fiscal 2023 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Sales and earnings rose year over year, backed by increased demand for its brands, mainly the resurgence of Jack Daniel’s Tennessee Whiskey, and growth across all geographic clusters.
For the fiscal first quarter, earnings per share of 52 cents advanced 30% year over year and surpassed the Zacks Consensus Estimate of 48 cents. The rise can be attributed to the top-line improvement and robust operating margin growth, which offset the higher costs, and gains from a lower effective tax rate.
Net sales of $1,007 million beat the Zacks Consensus Estimate of $983.9 million. The top line increased 11% year over year on a reported basis. On an organic basis, net sales were up 17% from the prior-year level. Sales benefited from an increase in distributor inventories. All of the company’s geographic clusters and Travel Retail have reported robust sales growth, driven by a robust volume
BrownForman Corporation Price, Consensus and EPS Surprise
BrownForman Corporation price-consensus-eps-surprise-chart | BrownForman Corporation Quote
For first-quarter fiscal 2023, Brown-Forman’s gross profit amounted to $626 million, improving 13% year over year. On an organic basis, gross profit rose 21%. The gross margin expanded 80 basis points (bps) to 61.8%. The increase was mainly attributed to a favorable price/mix, and the removal of the EU and the U.K. tariffs on American whiskey. This was partly offset by higher costs due to the ongoing supply-chain headwinds and input cost inflation, as well as adverse currency impacts.
Selling, general and administrative (SG&A) expenses rose 4% year over year and 7% on an organic basis, mainly on higher compensation-related expenses. Advertising expenses increased 23% for the fiscal first quarter. On an organic basis, advertising expenses advanced 28%, driven by elevated marketing spends in the United States to back growth of Jack Daniel’s Tennessee Whiskey, Herradura, the launch of the Jack Daniel’s Bonded series and Woodford Reserve.
Operating income improved 19% year over year to $343 million on a reported basis. Organic operating income increased 32%. The operating margin expanded 210 bps to 34% in the fiscal first quarter.
Driven by the strong results, the company’s shares rose 1.5% in the pre-market trading session on Aug 31, 2022. The Zacks Rank #3 (Hold) company’s shares have gained 12.2% in the past three months compared with the industry’s growth of 1.5%.
Image Source: Zacks Investment Research
Category-Wise and Channel-Wise Performance
Net sales for the Jack Daniel’s family of brands were up 11% on a reported basis and 19% on an organic basis. The brand’s sales were driven by solid demand, and increased prices in emerging markets, developed international markets, and the Travel Retail channel. The upside was also driven by the resurgence of Jack Daniel’s Tennessee Whiskey, which has reported sales growth of 10% and organic growth of 21%. The estimated increase in distributor inventories also aided sales. Sales also benefited from the continued consumer interest in flavor, which boosted the performance of Jack Daniel’s Tennessee Honey, Jack Daniel’s RTDs, and Jack Daniel’s Tennessee Fire. Innovation contributed to sales growth through the launch of Jack Daniel’s Bonded series.
Premium bourbon brands have reported sales growth of 38% and organic sales growth of 39% in the fiscal first quarter, driven by growth in Woodford Reserve and Old Forester, supported by higher volume in the United States. An estimated rise in distributor inventories also boosted sales for Woodford Reserve and Old Forester.
The company’s Ready-to-Drink (RTD) category has reported sales growth of 11% and organic sales growth of 19%. This growth was mainly driven by Jack Daniel’s RTDs and New Mix. Jack Daniel’s RTDs/Ready-to-Pours benefited from increased consumer preference for convenience, resulting in year-over-year sales growth of 12% and 17% on an organic basis, led by gains in Australia and Germany. New Mix has reported sales growth of 44% and organic sales growth of 41%, driven by market share gains in the RTD category in Mexico.
Herradura witnessed a sales decline of 4% and an organic sales decline of 5%, owing to the cycling of significant growth in the prior-year period in the United States, as well as the impacts of supply-chain headwinds in the current fiscal quarter.
The company’s overall sales in the United States advanced 7% both on a reported and organic basis. The rise was driven by volume gains in Woodford Reserve, Jack Daniel’s Tennessee Honey, and Jack Daniel’s Tennessee Fire. This was partly negated by lower volumes for Jack Daniel’s Tennessee Whiskey and Korbel California Champagne.
Meanwhile, the developed international market has reported sales growth of 9%, with organic sales rising 19%. The improvement was driven by the continued recovery in the on-trade channel, and the revival of travel and tourism. Volume gains from Jack Daniel’s Tennessee Whiskey and Jack Daniel’s RTDs mainly aided the results. The emerging markets registered 17% net sales growth, whereas organic sales improved 34%. This was backed by growth of Jack Daniel’s Tennessee Whiskey in Sub-Saharan Africa, Brazil, and Chile, as well as New Mix in Mexico.
Net sales in the Travel Retail channel advanced 77% on a reported basis and 85% on an organic basis on the back of higher volumes for the majority of the portfolio, as travel trends continued to rebound.
Balance Sheet & Cash Flow
The company ended first-quarter fiscal 2023 with cash and cash equivalents of $899 million, and long-term debt of $1,998 million. Its total shareholders’ equity was $2,807 million. As of Jul 31, 2022, BF.B generated $173 million in cash from operating activities.
Outlook
Despite the ongoing macroeconomic and geopolitical challenges, management anticipates continued growth for fiscal 2023. The company expects the strength in its brands and strong consumer demand to continue aiding the top line. It anticipates organic sales growth in the mid-single digits for fiscal 2023. The company expects a slight gross margin expansion for fiscal 2023, owing to the effects of inflation, and the removal of EU and UK tariffs on American whiskey.
Based on the aforementioned assumptions, the company expects the organic operating margin to increase in the mid-single digits. The effective tax rate is expected to be 22-23% for fiscal 2023. Capital expenditure is anticipated to be $190-$210 million.
Stocks to Consider
We have highlighted three better-ranked stocks in the Consumer Staples sector, namely Fomento Economico Mexicano FMX, Diageo DEO and Carlsberg CABGY.
Fomento Economico Mexicano, alias FEMSA, has exposure in various industries, including beverage, beer and retail, which gives it an edge over its competitors. It currently has a Zacks Rank #2 (Buy). FMX has a trailing four-quarter earnings surprise of 18.9%, on average. Shares of FMX have lost 13.1% in the past three months.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FEMSA’s current financial-year sales suggests growth of 11.3% from the year-ago period's reported figures. FMX has an expected EPS growth rate of 11.4% for three-five years.
Diageo is involved in producing, distilling, brewing, bottling, packaging, and distributing spirits, wine and beer. It currently has a Zacks Rank #2. The company has an expected EPS growth rate of 8.8% for three-five years. Shares of DEO have declined 2.6% in the past three months.
The Zacks Consensus Estimate for Diageo's current financial-year sales and earnings per share suggests growth of 15.7% and 8.8%, respectively, from the year-ago period’s reported figures.
Carlsberg produces and sells beer and other beverage products in Denmark. It currently has a Zacks Rank #2. Shares of CABGY have gained 6.6% in the past three months.
The Zacks Consensus Estimate for Carlsberg’s current financial-year sales suggests growth of 8.8%, while the same for earnings per share indicates a decline of 9.8% from the year-ago period’s reported figures. CABGY has an expected EPS growth rate of 9.1% for three-five years.
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Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.
>>See Zacks’ Hottest IPOs 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
BrownForman Corporation (BF.B): Free Stock Analysis Report
Fomento Economico Mexicano S.A.B. de C.V. (FMX): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
Carlsberg AS (CABGY): 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.
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Stocks to Consider We have highlighted three better-ranked stocks in the Consumer Staples sector, namely Fomento Economico Mexicano FMX, Diageo DEO and Carlsberg CABGY. Shares of DEO have declined 2.6% in the past three months. Diageo plc (DEO): Free Stock Analysis Report
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Stocks to Consider We have highlighted three better-ranked stocks in the Consumer Staples sector, namely Fomento Economico Mexicano FMX, Diageo DEO and Carlsberg CABGY. Shares of DEO have declined 2.6% in the past three months. Diageo plc (DEO): Free Stock Analysis Report
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Stocks to Consider We have highlighted three better-ranked stocks in the Consumer Staples sector, namely Fomento Economico Mexicano FMX, Diageo DEO and Carlsberg CABGY. Shares of DEO have declined 2.6% in the past three months. Diageo plc (DEO): Free Stock Analysis Report
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Stocks to Consider We have highlighted three better-ranked stocks in the Consumer Staples sector, namely Fomento Economico Mexicano FMX, Diageo DEO and Carlsberg CABGY. Shares of DEO have declined 2.6% in the past three months. Diageo plc (DEO): Free Stock Analysis Report
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727608.0
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2022-08-30 00:00:00 UTC
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What's Happening With Diageo Stock?
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DEO
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https://www.nasdaq.com/articles/whats-happening-with-diageo-stock
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Diageo stock (NYSE: DEO) has fallen 6% in a month, while it’s down 18% year-to-date. The company recently paused some of the whiskey sales in a few states in India to push the price hikes. This move may result in a hit on the region’s volume growth in the near term. Late last month, the company reported its full-fiscal 2022 results (fiscal ends in June) with revenue growth of 20% y-o-y, led by both volume and price gains across geographies. However, a high inflationary environment and rising oil prices will likely weigh on consumer demand, impacting retail stocks. For instance, Diageo’s peer, Anheuser-Busch Inbev stock (NYSE; BUD), has also seen a 7% fall in a month.
Now that Diageo stock has seen a fall of 6% in a month, will it continue its downward trajectory, or is a rise imminent? Going by historical performance, there is a higher chance of an increase in DEO stock over the next month. Of 206 instances in the last ten years that DEO stock saw a twenty-one-day fall of 6% or more, 127 resulted in DEO stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 127 out of 206, or about a 62% chance of a rise in DEO stock over the next month. See our analysis of Diageo Stock Chance of Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using the last ten years’ data
After moving -5% or more over five days, the stock rose on 73% of the occasions in the next five days.
After moving -5% or more over ten days, the stock rose on 65% of the occasions in the next ten days.
After moving -6% or more over a twenty-one-day period, the stock rose on 62% 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 days, ten days, and the next month.
Diageo (DEO) Return (Recent) Comparison With Peers
Five-Day Return: STZ highest at 0.1%; SAM lowest at -5.6%
Ten-Day Return: STZ highest at 3.4%; BUD lowest at -9.5%
Twenty-One Day Return: STZ highest at 1.4%; SAM lowest at -7.8%
While DEO stock has room for growth, it is helpful to see how Diageo’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, 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 PepsiCo vs. Williams-Sonoma.
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 Aug 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
DEO Return -6% -18% 73%
S&P 500 Return -2% -15% 81%
Trefis Multi-Strategy Portfolio -2% -15% 239%
[1] Month-to-date and year-to-date as of 8/29/2022
[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.
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Diageo stock (NYSE: DEO) has fallen 6% in a month, while it’s down 18% year-to-date. Going by historical performance, there is a higher chance of an increase in DEO stock over the next month. Of 206 instances in the last ten years that DEO stock saw a twenty-one-day fall of 6% or more, 127 resulted in DEO stock rising over the subsequent one-month period (twenty-one trading days).
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Of 206 instances in the last ten years that DEO stock saw a twenty-one-day fall of 6% or more, 127 resulted in DEO stock rising over the subsequent one-month period (twenty-one trading days). Diageo (DEO) Return (Recent) Comparison With Peers Five-Day Return: STZ highest at 0.1%; SAM lowest at -5.6% Ten-Day Return: STZ highest at 3.4%; BUD lowest at -9.5% Twenty-One Day Return: STZ highest at 1.4%; SAM lowest at -7.8% While DEO stock has room for growth, it is helpful to see how Diageo’s Peers fare on metrics that matter. Total [2] DEO Return -6% -18% 73% S&P 500 Return -2% -15% 81% Trefis Multi-Strategy Portfolio -2% -15% 239% [1] Month-to-date and year-to-date as of 8/29/2022 [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.
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Of 206 instances in the last ten years that DEO stock saw a twenty-one-day fall of 6% or more, 127 resulted in DEO stock rising over the subsequent one-month period (twenty-one trading days). Diageo (DEO) Return (Recent) Comparison With Peers Five-Day Return: STZ highest at 0.1%; SAM lowest at -5.6% Ten-Day Return: STZ highest at 3.4%; BUD lowest at -9.5% Twenty-One Day Return: STZ highest at 1.4%; SAM lowest at -7.8% While DEO stock has room for growth, it is helpful to see how Diageo’s Peers fare on metrics that matter. Total [2] DEO Return -6% -18% 73% S&P 500 Return -2% -15% 81% Trefis Multi-Strategy Portfolio -2% -15% 239% [1] Month-to-date and year-to-date as of 8/29/2022 [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.
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This pattern suggests a higher chance of a rise in DEO stock over the next five days, ten days, and the next month. Diageo (DEO) Return (Recent) Comparison With Peers Five-Day Return: STZ highest at 0.1%; SAM lowest at -5.6% Ten-Day Return: STZ highest at 3.4%; BUD lowest at -9.5% Twenty-One Day Return: STZ highest at 1.4%; SAM lowest at -7.8% While DEO stock has room for growth, it is helpful to see how Diageo’s Peers fare on metrics that matter. Total [2] DEO Return -6% -18% 73% S&P 500 Return -2% -15% 81% Trefis Multi-Strategy Portfolio -2% -15% 239% [1] Month-to-date and year-to-date as of 8/29/2022 [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.
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2022-08-09 00:00:00 UTC
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Investors Like the News From These Companies
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https://www.nasdaq.com/articles/investors-like-the-news-from-these-companies
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In this podcast, Motley Fool senior analysts Andy Cross and Ron Gross discuss:
The Fed raising interest rates and GDP contracting.
Apple and Amazon surprising to the upside.
Microsoft's cloud division delivering again.
Shopify's relative attractiveness as a stock.
Meta Platforms warning investors.
Chipotle's impressive ability to raise prices.
McDonald's stock closing in on a new high.
The war on cash.
Diageo wrapping up a strong year.
The latest from Etsy and Roku.
Unilever shutting down the Choco Taco.
Two stocks on their radar: Masimo and NextEra Energy.
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.
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This video was recorded on July 29, 2022.
Chris Hill: We've got Big Tech, the Big Macro, and a whole lot more, Motley Fool Money starts now.
It's the Motley Fool Money radio show, I'm Chris Hill joining me in studio, Motley Fool senior analysts Andy Cross and Ron Gross. Good to be in the studio with the gents.
Ron Gross: How is you doing, Chris?
Andy Cross: Good to see you.
Chris Hill: It is Earnings-Palooza, we will dig into some of the biggest companies in the market, and as always, we've got a couple of stocks on our radar, but we begin with the Big Macro. On Thursday, the Bureau of Economic Analysis reported the US economy contracted for the second quarter in a row, which meets the classic definition of a recession. On Wednesday, the Federal Reserve hiked interest rates by three-quarters of a percent. Ron, Which one is the bigger deal for investors?
Ron Gross: Well, Chris, thanks for asking. The markets, I think reacted very favourably to the rate hike, and especially the comments by Fed Chairman Powell, that there will come a point when the Fed needs to slow the pace of increases. I think that's a rather obvious statement, but still, the market likes to hear it. He said on Wednesday, that he does not believe the US economy is in a recession. Fast-forward 18 hours, Chris, and as you correctly pointed out, data came in that the US economy did shrink for the second quarter in a row, and as you pointed out, common definition, but it's really the National Bureau of Economic Research that decides if a recession has occurred, and they take into account a number of factors, and actually they won't decide that for quite a while. We don't actually know for sure, but it is semantics in my opinion because we do have indications that the economy is slowing, which is actually a good thing because that's what the Fed is attempting to do.
The trick will be for the decline to not be so severe as to really throw us into a prolonged problem. Now, inflation is still very high, you saw during the week with lots of earnings reports, you saw at Friday with Exxon and Chevron actually benefiting from higher commodity prices, you also saw on Friday a report that the personal consumption expenditure, the price index rose 6.8 percent, the highest level since January 1982. The Fed still has some work to do into higher interest rates still have to flow through the system, but we will eventually be able to, I think, have a short and shallow recession, at least that's what I hope. Then will resume the business cycle with reasonable interest rates, slower but positive growth, and stock valuations that are once again attractive, and I think we can live with all three of those.
Andy Cross: I remember many moons ago during one of the other economic slowdowns, Ron Gross turned to me and said, this is before Jay Powell, Chris, there's a chance that Fed gets this all right, and right now there's a chance that yes, they were behind the curve that 75 basis points were baked in, so that was pretty much a done deal. Don't forget, a month ago we were talking one percent, so there's a lot of concerns that they're just slamming on the brakes and this economy too fast, now his comments said that, hey, maybe we won't have to raise quite as aggressively or some point we won't have to.
That's good news and yes, and maybe a little bit of ah-ha, moment, but it is baked now into the prices, so there's a chance that behind the curve, now they're on top of it, investors are expecting that we're certainly seeing the inflation and we'll talk about this today through so many earnings, we're seeing that impact the performance of our companies. Whether we're in a technical recession or not, doesn't frankly really matter, I don't think we're not going to find out for months anyway, but the fact that our companies are seeing in and making sure investors are understanding how it impacts the companies and their portfolios and obviously being invested in the best companies to sustain that new environment that Ron mentioned.
Chris Hill: Let's get to earnings and we're going to start with Big Tech. Apple's CEO Tim Cook admitted macroeconomic factors affected third-quarter results, but profits and revenue came in higher than expected, and shares up on Friday after the report. As you said, we're going to talk about a lot of companies on this show, not all of them are persevering in a tough environment. Looks like Apple is.
Andy Cross: Yeah. It was a pretty good quarter, Chris, topped rather muted expectations show continued strength, really an iPhone and Services earnings fell a little bit, revenues were up slightly, they have more now they have more than 860 million paid subscribers across their services as they get close to a billion at some point. They're looking for revenues, so accelerate a little bit less. The next quarter when iPhone 14 launched this quarter revenues were up two percent, they did have some foreign exchange challenges, we'll talk a lot about that today. iPhone, obviously the biggest part of their business, Chris, up 2.8 percent, that was a June record.
Wearables, Homes and Accessories were actually down eight percent, Mac was down 10 percent, iPad down two percent, services continued to be one of the bright spots for Apple up 12 percent to another June record, EPS was down about eight percent, but above expectations, the thing we continue to see with Apple as they continue to have one of the greatest brands out there. Very much loyal customers, satisfaction rates that are well above 90 percent, you continue to see them, continue to build out that ecosystem with their iPhone in their services.
I'm looking ahead for the year they expect year-over-year revenue growth to accelerate a little bit next quarter, they still expect those supply chain constraints, Chris, that you mentioned, still expecting the strong dollar and gross margin to be a little bit weaker than they were this quarter. But overall, you got to $2.5 trillion company selling at 25 times earnings. Earnings growth not going to be super high, probably in the high single digits, nice little dividend, Apple continues to be a winner in the markets.
Chris Hill: Shares of Amazon were up more than 10 percent on Friday after second-quarter revenue came in higher than expected. Guidance for Amazon's current quarter was upbeat, which is a pretty key run when you think about how important the second half of the calendar year is for this business.
Ron Gross: Very important to see a company like Amazon providing some upbeat guidance. The stock is still down 27 percent from its 52-week high, even after this week's pop, just to give an indication about how really weak stocks have been. In this particular report, investors are clearly focused on the Cloud segment, which grew faster than most were expecting. Amazon Web Services generated a 33 percent increase, that's pretty strong, continues to be strong as the Number 1 provider of Cloud services. Overall, net sales up seven percent that did beat estimates, surprisingly, ad revenue climbed 18 percent, and that's better than others in the space have fared, and I think we'll hear more about that later in the show. They are actually the standout with respect to ad revenue, so I thought that was interesting.
Not surprisingly, they're seeing continued inflationary pressure and fuel energy, transportation that cuts into margins, net loss was two billion dollars for the quarter, but that did include a loss of $3.9 billion from its wonderful investment in Rivian Automotive, [laughs] which has been a complete disaster, they're still working through there. Too rapid expansion during COVID left them with too much warehouse space, too many employees, they cut headcount by 99,000 people recently, but as you said, third-quarter guidance was solid, they're raising prices over in the UK, operating income guidance was pretty good at between zero and $3.5 billion, so all-in-all, a pretty solid report and the stock prices reflecting it.
Chris Hill: Microsoft's market cap is back up over the two trillion dollar mark, shares up more than six percent this week. After Microsoft's fourth-quarter results were highlighted, once again, Andy, by the Cloud Division.
Andy Cross: I was going to say it's very similar story. It wasn't a great quarter with the slowest earnings growth in two years, but Microsoft pretty much turned the markets around this week earlier when they announced this quarter, and especially on their guidance, I'll get to that in a little bit. I'm going forward with double-digit sales and operating income growth for the year going forward, but the Cloud continues to be the winner. When Satya Nadella talks about Bezos suite value and having every layer of the tech stack covered, Microsoft really does driven by the Cloud. Their TotalCloud business was up 28 percent to 25 billion, driven by their Azure business, which was up 40 percent.
Productivity and business processing was up 13 percent, that's driven by Office 365, Chris was a big driver. LinkedIn actually was a pretty good quarter, even though the advertising business was a little bit weak, so their ad market like Ron had mentioned on the advertising side a little bit on the weak side, the Dynamics analytics business up 19 percent. The big weakness Chris was in the personal computing that was up only two percent with Windows down two percent, search and advertising was lower than expected on that slower spend still up a little bit, but lower than expected, and gaming was down, that was a pretty big weak spot down seven percent.
Overall, their commercial Cloud business really doing well, their bookings are up 25 percent, so what they're going to hopefully get in later of the year, their remaining performance obligations up to 34 percent. Big deals, big clients signing on for more Cloud service, that's driving that. Instead, our guidance is for this double-digit growth and that got people excited about the tech spend again, that is not so dire that companies are looking to continue to spend and that really turned the markets around. Now you have that two trillion dollar company, earnings-per-share growth over the next couple of years, growing like in the mid-teens level, you're paying for 27 times your money, and Microsoft has syllabi.
Chris Hill: More Big Tech after the break, including Alphabet and Meta platforms, or as I like to call them, Google and Facebook. Stay right here, you're listening to Motley Fool Money.
Welcome back to Motley Fool Money. Chris Hill is here in the studio with Andy Cross and Ron Gross. Before we get back to Earnings-Palooza, I want to say a quick word about FoolFest. It is our annual investing conference. It's a two-day event on August 29th and 30th, featuring breakout sessions on different investing strategies. We got a great lineup of speakers, including Motley Fool Co-Founder David Gardner, Trex CEO Bryan Fairbanks, Venture Capitalists' Jenny Abramson, and just to name a few, FoolFest is free for members of Motley Fool services. If you're not yet a member, you can sign up for our Stock Advisor service. Get a complimentary digital pass to the event. Just go to fool.com/foolfest. For all the details, that's fool.com/foolfest. I'll be there. Ron, Andy they'll be there.
Ron Gross: Did you say free?
Chris Hill: Free for members of Motley Fool services. Under Earnings-Palooza, Alphabet's, second-quarter profits and revenue came in, lower than expected, but shares up a bit this week despite that. Ron, you look at the different divisions, YouTube, Google, etc. Not better than expected, but certainly better than feared.
Ron Gross: Yeah, that's exactly. Expectations were so low following snap and then Twitter's disappointing results, that we actually saw a bit of a relief rally with Alphabet or Google, as we like to say. Now, growth did slow pretty significantly from last year. Revenue is up 13 percent, compare that to 62 percent growth a year earlier, so 13 percent is the slowest rate of growth since the second quarter of 2020 when the pandemic took a whack at a demand if you'll recall, for advertising a lot of areas, especially travel. We're revisiting some of that slower growth. Currency fluctuations, as we'll see across global companies, also took about a four percent whack out of revenue growth.
Advertising revenue was up, but only 12 percent. YouTube advertising rose only five percent, and that's in comparison to 84 percent during the year earlier period, competition from TikTok, I think being one of the culprits here, Google Cloud fell short of expectations, lost $858 million. I think it's important to keep an eye on this segment. It's very important to future valuation when that flips and goes positive, I think that will be very important. Operating margins were down to 28 percent from 31 percent and earnings fell 11 percent. But as we said, expectations were so low that the stock has rallied on this news, the company is doing just fine and we're just seeing some slower growth.
Chris Hill: Shopify's second quarter results on Wednesday were overshadowed by the memo that's CEO Tobi Lütke sent to employees on Tuesday. In it Lütke said Shopify would be laying off 10 percent of the workforce, and he took responsibility for mistakes that he made in growth projections that fell short. Andy, for a stock that has fallen 75 percent year-to-date. This is still a $45 billion business.
Andy Cross: Well, and they have 10 percent of the e-commerce market. When you add up all of the merchants who are doing business across the Shopify platform. But clearly a lot of pain for Tobi who founded the business, is still one of the largest shareholders. He gave a very poignant letter outline and taking responsibility for the growth. As Harley Finkelstein, the president said on the call, in short we overshot our predictions and they did, so laying off 10 percent of their staff, mostly in recruiting support and sales. That's going to help manage their cost structure in the second half of the year. Now, this Shopify is a slowing growth story, so growing, but it's a slowing growth story, revenues were up 16 percent about in line with estimates.
Gross merchandise volume, Chris, so all the volumes sold across Shopify platform was up 11 percent to almost 47 billion. The offline business or tied to the offline point-of-sale business was up almost 50 percent. That was a records, that's a bright spot. But it's the big online business that continues to struggle a little bit. Their gross payment volume, so the payments across a platform that's very valuable to the stickiness, the Shopify is now 53 percent of all of the merchandise volume up versus 48 percent a year ago, that was up 23 percent. Payments is a big driver. But the big story for Shopify now is what happens now? A stock's down 75 percent selling less than eight times sales, so $45 billion company. When you look for, they're going to continue to see this market that will outperform the broader retail market, which is growing about seven percent right now, so they aren't going to grow a little bit faster than that.
Their merchant solutions, all those payments network fulfillment, that stuff will grow faster than the other business. That's a little lower margin. That will hurt the margin picture a little bit. They're going to expect further losses, though next quarter is going to be ugly because they're going to have all the charges from their layoffs and then that will slowly improve. They continue to make big investments in their fulfillment business. Bought a company that's going to help with that. They're making the investment, they still a very attractive balance sheet. They are losing money. Hopefully they can turn that around, and this is the start of that turn that gets Shopify a little bit of religion and it's better for shareholders looking ahead.
Chris Hill: Over the past year, we've talked about a number of former high fliers that have lost 50 percent or more of their value. When you look at the valuation, even if they've been cut in half, it's still an expensive stock. When you look at Shopify down 75 percent year-to-date, how expensive is it now?
Andy Cross: Well, it's much more in line reason, anything less than 10 times sales, I think as it gets to be much more normal realized for these high-growth stories. But they got to turn the growth and these innovations like their Twitter shopping channel, tap to pay on the iPhone, B2B functionality. Those are all big investments. They need to make to stay competitive to continue to grow their market share. They can do that. They may be able to turn it around.
Chris Hill: Shares of Meta platforms down a bit this week, after a disappointing second quarter report, highlighted by the amount of money the company is investing in the Metaverse. [laughs] Meanwhile, Ron, if the advertising businesses of Alphabet and Amazon are faring pretty well in this environment, it seems like Facebook is struggling.
Ron Gross: Things are not so rosy in the Metaverse, Chris. This is a week report, shares are down 60 percent from the 52-week high. Overall sales were actually down slightly. It's their first every year over year decline in revenue. Online ad business, as you said getting hit by a variety of factors, marketers are spending less obviously due to economic pressures. Apple's iOS privacy update has clearly hurt Facebook. Then again, there's competition, including from TikTok also having an impact. Facebook app had 1.97 billion average daily active users up three percent. Ad impressions across all the family of apps increased 15 percent, but the average price per ad decreased by 14 percent. Now the Reality Labs business unit, which is the whole Metaverse augmented reality, it brought in 452 million in sales.
But as you noted, investments there, they ended up recording $2.8 billion loss in the second quarter. That's a huge number and of course we're building for the future here, but it's hard to see that right now. We'll have to keep a really close eye on that. Operating margins pummeled 29 percent now versus 43 percent a year ago. Profit down 32 percent. Guidance was also weak, FTC trying to block and acquisition of within unlimited, which is the supernatural fitness app. A lot of things not so great right now, your morality, your love of Zuckerberg aside, only 18 times forward earnings. If they get their acts together, it's something you can keep on your watchlist and maybe take a nibble.
Chris Hill: Reasonable to expect though that the next quarter in terms of investment in the Metaverse is going to look like this last quarter.
Ron Gross: I've seen no lead up at this point, no, they will let up and things like employees and other expenses, but investments there will stay the same.
Chris Hill: Coming up after the break, we've got retail restaurants and a lot more, so stay right here. You're listening to Motley Fool Money. [MUSIC] Welcome back to Motley Fool Money. Chris Hill here in studio with Andy Cross and Ron Gross. Chipotle's continued ability to raise prices led to strong second-quarter profits and shares as Chipotle were up 15 percent this week. You got to be honest Andy, I did not think this would continue to be the story with Chipotle. I didn't think they could continue to raise prices the way they have and I was wrong.
Andy Cross: I don't think they're done with that either as a very impressive quarter, they ran into some headwinds on the sales side as comp growth slowed a little bit, still very attractive up 10.1 percent. Margins were solid with the in-store purchases coming back where people come in store and they are much more likely to buy a soda for example or a drink than they are when they order from home. Pricing definitely helping in showcasing that pricing power and the brand power that Chipotle has. They're doubling down on these investments Chris, to help push more and more people. They talked a lot about this on the conference call, doing a lot of investments very similar to what they did Brian Niccol did back in 2019 when they got all the troops together and really tried to help them understand what makes the best throughput to really improve the amount of customers they can serve in any 15 minutes span.
They want to get that up North of 30 and they're not there yet. Sales up 17 percent I mentioned comps up 10.1 percent. The trend through May was actually strong and then it weakened a little bit with the economy slowing down a little bit as we talked about and that hurt on the comp side but transactions up 3.5-4 percent, they opened 42 stores. The restaurant operating margin was up 70 basis points to 25.2. They didn't have as much delivery and that helped on the cost side. Overall these new initiatives that are doing for Chipotle, they continue to get it done. They do have some struggles as they work through this new environment with more people now coming back into the store. But overall you have a business that is $43 billion market cap, selling at 40-ish times forward earnings and growing and that 25, 30 percent per year. Still very attractive and opportunities as they continue to grow from 3,000 stores up to 7,000 stores.
Chris Hill: Again, against the backdrop of higher inflation, higher food costs and it's impressive to see them manage those food costs in such a way that they're not alienating customers.
Andy Cross: They are seeing higher-cost when it comes to avocado and chicken and steak and all their input costs, they continue to raise their prices. Their comp growth is going to slow a little bit. They think more in the mid to high single digits from 10 percent. They have some things to work through, but overall still more than the more impressive operating stories that they've been able to manufacturer during the COVID period.
Chris Hill: McDonald's is also raising prices for the first time in 14 years, the price of a McDonald's cheeseburger is going up. But strong second-quarter results push shares of the stock to within just a few bucks of an all-time high, Ron?
Ron Gross: Maybe fast food and fast casual is where the place to be during this year. Pretty impressive results. They solidly beat expectations, despite an actual three percent decrease in revenue. If you look at their systemwide sales now that's the sales generated by all the restaurants, which is different than the revenue McDonald's actually takes in. But it's an indication of the health of the business. Systemwide sales it was actually up four percent. US same-store sales up also almost four percent, global comps up almost 10 percent, as you say driven by higher prices and that value menu that is very attractive to folks looking to save some money. Sales of all types of meals, particularly breakfast or higher.
If you break it down to franchise and company-owned, franchise was the strength here up seven percent, company-owned stores were actually down 15 percent from a sales perspective. They're making a nice headway in digital sales exceeded six billion dollars that represents about one-third of total systemwide sales at this point. Operating income flat results include 1.2 billion of charges related to Russia and some other charges as well. If you adjust all of that out, EPS earnings per share was up about eight percent. They're being cautious, as you said raising prices, especially in the UK those cheeseburger prices are going up, sorry, UK. But there really are executing very well Chipotle at 40 times, McDonald's only 26 times.
Chris Hill: Signs of life from Etsy, second-quarter profits, and revenue came in higher than expected. Shares of Etsy up more than 35 percent over the past month, although that means it's still down only about 50 percent year to date, Andy. They did add six million buyers during the quarter.
Andy Cross: That was actually nice. It was the lowest they've seen in a couple of years though. Really since COVID started Chris, again in context and again the expectations are pretty muted. Their gross merchandise sales were actually flat a little bit, up a little bit if you bake in some of those foreign exchange and challenges with the strong dollar. They talked about how they are impacted by the macro headwinds, the reopenings, consumer discretionary. There's headwinds that Etsy is facing for those people who are using their platform, their advertising business. The ads on the platform that allows people to connect more to buyers and sellers is actually a pretty nice strength this quarter. They sell a lot of strength in that business. Overall, they're operating income, their EBITDA was up 16.7 percent with an adjusted margin of about 28 percent.
I'll get to that why that's important in a little bit later, you mentioned Chris. Added 6.4 million new buyers, revenues were up 10.6 percent. Their guidance looking forward and fellows was a little bit, I think maybe not so inspiring with merchandise sales of 2.8-3 billion, again versus three billion last quarter revenues, growth about five percent. A little slowdown from what this whole last quarter and a little tick down in the operating margin. While it was nice to see that rebound and what they're trying to do with their marketplace, they are in this new environment, wisdom, inflationary pressures with the cost they may call big acquisitions that they're bringing into the family. There are some struggles with Etsy, but you're paying 25 times forward earnings for some growth stories, I could probably grow long-term through the cycle more than 10 percent per year.
Chris Hill: They are still trying to manage that balance of how do we please customers? How do we please the sellers? Because in that sense, and this is a company with a market cap of $13 billion. They're essentially competing with Amazon, going to third-party sellers and saying we want you on our platform. We're going to treat you better than Amazon is going to treat you. You would think that would be easy in some ways. Not necessarily competing with Amazon, but making that case. It still seems like it's a bit of a challenge.
Andy Cross: Yeah, I think it is. They raised their transaction fee, they charged sellers at 6.5 percent versus five percent. That was that there was a lot of hullabaloo about than the cost. If you add up all the other cost and there's more cost into the whole Etsy story. That transaction fee increase was a big part of their revenue growth and their profit growth. Frankly, they won't have that going forward. They do have to manage that experience and the selling side and they have a lot of initiatives for that, Chris. This ad business is interesting because it does allow people to connect more closely with what they're looking for on Etsy. Hopefully, that will be able to drive some of that real connection with the sellers.
Chris Hill: Weak revenue and a big loss in the second quarter since shares of Roku down 25 percent on Friday, hitting its lowest point in more than three years. You tell me, Ron, how bad is it for Roku right now?
Ron Gross: It doesn't look good. Down 85 percent from its 52-week high, it's a real shame. It is a favorite of many investors at the Fool, I myself thought it looked really interesting the last time it got a whack taken out of the price. But shares are really being hurt by that slowed down in advertising spending, which we keep referencing, and weak guidance which we can get too. Total revenue was up 18 percent, but that was a significant miss versus what investors Wall Street was looking for. Now platforms segment revenue, that's the advertising business up 26 percent. That also was less than expected as marketers cut back or even paused advertising spend. We're not negative or anything, but we're just nowhere near where we need to be for a company that is still priced relatively high.
Player revenue which is the hardware and software business was actually down 19 percent. We're definitely seeing some softness there. They did add 1.8 million active users in the second quarter, that's 63.1 million total right now, average revenue per user rose 21 percent. Again below analysts' expectations, and they lost $112 million for the quarter now. But guidance is really what shook this stock. They expect revenue in the third quarter to only grow three percent. They expect anticipated EBITDA to be negative 75 million and they withdrew full-year guidance through dreaded withdrawing of full-year guidance. Investors, especially institutional investors, do not like to see that they will sell your stock off if they don't have any guidance to go buy.
Chris Hill: No one ever withdraws full-year guidance because everything's amazing, [laughs] that's why we're withdrawing the guidance. How much more of this can happen to Roku before they become a serious acquisition target? This is a company that is with this drop. It's an $8.5 billion market cap on Roku, but to your point, Ron, they've got people who are on the platform, tens of millions of people who are spending money. At some point, someone starts to kick the tires.
Ron Gross: Well, for sure there's a business here that's for sure. They need to rationalize their operating expenses which they're doing. They need to probably reduce their headcount, which they've indicated that they will do. But you still have a stock trading at 40 times EBITDA, 40 times cash flow, which most acquirers won't want to do in this environment until they get their ducks in a row. Advertising will come back for sure. I think Roku has a long life ahead of it. It's just a matter of what wouldn't acquire would be willing to pay.
Chris Hill: After the break, we've got the latest and the war on cash, plus we've got a couple of stocks on our radar. Stay right here. You're listening to Motley Fool Money. [MUSIC] As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy yourselves stocks based solely on what you hear. Welcome back to Motley Fool Money. Chris Hill here in studio with Andy Cross and Ron Gross. Visa and MasterCard both out with their latest quarterly results. Ron, the stock movements were a little different, but it looks like similar stories from Visa and MasterCard in terms of spending patterns and profits.
Ron Gross: Very, very similar. Both solid reports, but they were both overshadowed by a report that Senate lawmakers are preparing a bill aimed at reducing credit card fees. The legislation would give merchants the ability to route Visa and MasterCard credit card transactions over alternate networks. The goal to inject competition into the credit card market, that would be bad, Chris. That's important to keep an eye on here. But the quarter was strong and very similar, revenue up 20 percent basically for both companies. Cross-border spending up strong for both companies as border restrictions continued to be relaxed, travel picks up steam, payment volumes up for both companies as well. Guidance was also similar. Visa sees its revenue growth in the high teens to 20 percent range. MasterCard sees growth in the low 20 percent range. Interestingly, Visa's CFO said we're seeing no evidence of a pullback in consumer spending. Well, let's see how this quarter plays out to see if it follows through. But overall, very good quarters. But let's keep an eye on what the Senate has to say.
Chris Hill: Mixed fourth-quarter results from Diageo. Revenue for the alcohol company came in higher-than-expected while profits came in a bit late. Andy, Diageo has beer, wine, and spirits, and its portfolio looks like spirits. Did they heavy lifting this quarter?
Andy Cross: Absolutely, they're one of the largest spirits makers in the world. All their divisions were pretty much up. Beer actually was pretty good up 25 percent for the year, with Guinness up 32 percent. That maker of Guinness, scotch was up 29 percent. Not to be outdone.
Ron Gross: You're welcome.
Andy Cross: Johnnie Walker, Ron, was up 34 percent. Johnnie Walker Blue, fellows, was up 63 percent. Ron, there you go in sales, 25 percent in volumes. Overall, the whole year was pretty impressive. Sales up 21.4 percent, organic volume up 10 percent. They make these acquisitions organic because important, strong organic growth of double digits across all the regions. Very favorable trends for spirits. They're taking share across those areas on-premise as people go more back to restaurants and bars, Chris, is really having an impact to the operating profit up 18.2 percent and margin up 121 basis points. Overall, they continue to get it done. Spear paying 23 percent for times earnings, a little bit of a yield about two percent. It's not going to be the fastest-growing the world. I own Diageo I'm contented to just sit on it and own it here. Sales in the mid-single digits in profits, a little bit of profit margin growth there with some of their acquisitions too. Overall, a very nice year. Not going to have the same year again, like this.
Chris Hill: I don't mean to anchor to one data point, but the Johnnie Walker Blue number is pretty incredible when you consider that's really a premium brand.
Andy Cross: Those are in dollars and all of their premium brands really drove a lot of Diageo's growth and speaks to the brands and how they're managing and operating them.
Ron Gross: Could be an early indication of the bifurcation of the markets that we sometimes see in terms of spending patterns. We'll keep an eye on that for sure.
Andy Cross: But Tequila was up 55 percent.
Chris Hill: Unilever is the $120 billion consumer products company that is the parent of many brands, including Klondike frozen desserts. This week, Unilever announced it is discontinuing the Choco Taco. The company said in the statement, ''Over the past two years we have experienced an unprecedented spike in demand across our portfolio and have had to make very tough decisions to ensure availability of our full portfolio nationwide." What does that mean, Ron? It's like we're being punished because we ate too many Choco Tacos. That's what that sounds like to me. [laughs]
Ron Gross: I think we're eating more of the other Klondike products. Probably, I think a nice tie-in with Chipotle to increase their desert menu would be really interested. A nice Choco Taco, ice-cream taco sounds pretty nice to me. I will say real quick though. What upset me is they're also discontinuing the toasted almond bar, which is what my dad would always get when the ice cream man came around. That's a little nostalgic for me.
Andy Cross: Mr. Gross, sorry about that.
Chris Hill: Let's go to our man behind the glass, Dan Boyd. Dan, before we get to the radar stocks, any reaction to the Choco Taco news?
Dan Boyd: We get inflation, but we lose Choco Tacos. [laughs] Why can't we have nice things, Chris?
Chris Hill: [laughs] It's a mystery, Dan. It is a mystery.
Andy Cross: You want your Choco Taco and eat it too.
Chris Hill: Let's get to the stocks on our radar. Dan, we'll hit you with a question. Ron Gross, you're up first. What are you looking at this week?
Ron Gross: I'm going to circle back to NextEra Energy, NEE. Shares are down about 15 percent from the 52-week high, but it has rebounded nicely about 20 percent off its low reached in March. They operate the largest electric utility in Florida and they're also the largest wind and solar operator in the world. You get both the traditional electric utility and a nice play on renewables. They've grown adjusted earnings per share at above-average nine percent compound rate since 2005, raised their dividend every year since 1995, qualifying it as a dividend aristocrat. Board recently approved a dividend policy where we should roughly see 10 percent increases in the dividend through 2024, currently at two percent yield. Not so cheap for a utility at 30 times, but you get the renewable part of the business as well.
Chris Hill: Is now a dividend aristocrat?
Ron Gross: Twenty-six years.
Chris Hill: Dan, question about NextEra Energy?
Dan Boyd: Sure, Chris. Now, Ron, just how NextEra is NextEra Energy. [laughs] I'm serious here.
Ron Gross: Fairly.
Dan Boyd: Because how much of their portfolio is fossil fuels versus renewables?
Ron Gross: Oh, they are moving toward clean energy projects. They have investments to deliver battery storage, air, emerging emissions-free energy sources, hydrogen, pilot projects that are very green, water infrastructure projects. Yes, they are the largest in Florida from a traditionally utility perspective, but they are moving significantly into the greener area of the business.
Chris Hill: Andy Cross, what are you looking at this week?
Andy Cross: Dan and Chris, I'm looking at Masimo, MASI, a global medical company that designs a range of monitoring devices for pulse oximetry to measure our blood oxygen levels for more than 200 million patients. They also do other monitoring devices for brain monitoring, motion detection, cardiac monitoring. They do both wearables and stations in hospitals. They sell mostly to hospitals and doctors offices. But Dan, here's why this is interesting for those eight billion dollar company. Just this year they announced an acquisition of Sound United, which sells premium audio and home entertainment systems like Polk Audio and Bowers & Wilkins digital audio, bunch of other things.
They close a deal in just two months. The day the deal was announced, Chris, their stock fell 35 percent. Why is a medical company buying an audio company? It's very interesting. Joe Kiani owns seven percent of the business, founded the company back in the '80s. Owns more than $550 million worth of shares. It's very interesting how he couples these altogether, especially when it comes as Masimo pushes more toward wearables. They have a W1 watch and are selling other connected devices into the system. I'm very interested to see what Masimo does with this acquisition of Sound United.
Chris Hill: Dan, question about Masimo?
Dan Boyd: Now, Andy, you didn't explain why they bought Sound United. [laughs]
Andy Cross: That's the big question my friend. How they'd linked this altogether. They've talked about explaining this more and more over the months to come. We will have to see about this.
Dan Boyd: As an audio professional, I wonder what a medical company would want with speakers and TVs. But whatever.
Andy Cross: I think it's tied somehow to the wearables market.
Chris Hill: What do you want to add to your watch list, Dan?
Dan Boyd: I'm not really utility investor, I'm sorry Ron. But I'm intrigued by the medical technology company buying a sound speaker company.
Andy Cross: Yeah.
Dan Boyd: I'm going to go with Masimo. I don't know if it's going to work out, Chris, but we'll keep an eye on it.
Chris Hill: Guys, thanks so much for being here.
Ron Gross: Thanks, Chris.
Andy Cross: Thanks, Chris.
Chris Hill: That's going to do it for this week's Motley Fool Money radio show. I'm Chris Hill. We'll see you next time. [MUSIC]
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Andy Cross has positions in Alphabet (A shares), Chipotle Mexican Grill, Diageo, Etsy, Masimo, Mastercard, Meta Platforms, Inc., Microsoft, and Roku. Chris Hill has positions in Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Chipotle Mexican Grill, Etsy, ExxonMobil, Microsoft, NextEra Energy, Shopify, Trex, and Visa. Dan Boyd has positions in Amazon and Chipotle Mexican Grill. Ron Gross has positions in Amazon, Apple, ExxonMobil, Mastercard, Meta Platforms, Inc., and Microsoft. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Chipotle Mexican Grill, Etsy, Mastercard, Meta Platforms, Inc., Microsoft, NextEra Energy, Roku, Shopify, Trex, Twitter, and Visa. The Motley Fool recommends Diageo, Masimo, and Unilever and recommends the following options: long January 2023 $1,140 calls on Shopify, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, and short March 2023 $130 calls on Apple. 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.
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A full transcript follows the video. *Stock Advisor returns as of July 27, 2022 This video was recorded on July 29, 2022. Apple's CEO Tim Cook admitted macroeconomic factors affected third-quarter results, but profits and revenue came in higher than expected, and shares up on Friday after the report.
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A full transcript follows the video. *Stock Advisor returns as of July 27, 2022 This video was recorded on July 29, 2022. Chris Hill has positions in Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Chipotle Mexican Grill, Etsy, ExxonMobil, Microsoft, NextEra Energy, Shopify, Trex, and Visa.
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A full transcript follows the video. *Stock Advisor returns as of July 27, 2022 This video was recorded on July 29, 2022. Wearables, Homes and Accessories were actually down eight percent, Mac was down 10 percent, iPad down two percent, services continued to be one of the bright spots for Apple up 12 percent to another June record, EPS was down about eight percent, but above expectations, the thing we continue to see with Apple as they continue to have one of the greatest brands out there.
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A full transcript follows the video. *Stock Advisor returns as of July 27, 2022 This video was recorded on July 29, 2022. Operating margins were down to 28 percent from 31 percent and earnings fell 11 percent.
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727610.0
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2022-08-08 00:00:00 UTC
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Why Diageo is a Top 10 SAFE International Dividend Stock (DEO)
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DEO
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https://www.nasdaq.com/articles/why-diageo-is-a-top-10-safe-international-dividend-stock-deo
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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 2.4% 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 1.72% of the Powershares International Dividend Achievers ETF (PID), which holds $13,775,183 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 $4.56/share, currently paid in semi-annual installments, and its most recent dividend ex-date was on 08/25/2022. 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 Anheuser-Busch InBev SA/NV (BUD).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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 Anheuser-Busch InBev SA/NV (BUD). Diageo plc (Symbol: DEO) has been named to the Dividend Channel ''International S.A.F.E.
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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 1.72% of the Powershares International Dividend Achievers ETF (PID), which holds $13,775,183 worth of DEO shares.
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According to the ETF Finder at ETF Channel, Diageo plc is an underlying holding representing 1.72% of the Powershares International Dividend Achievers ETF (PID), which holds $13,775,183 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.
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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 1.72% of the Powershares International Dividend Achievers ETF (PID), which holds $13,775,183 worth of DEO shares.
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727611.0
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2022-07-29 00:00:00 UTC
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Strong Business Momentum Aids Diageo (DEO) in FY22 Earnings
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DEO
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https://www.nasdaq.com/articles/strong-business-momentum-aids-diageo-deo-in-fy22-earnings
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Diageo plc DEO reported preliminary fiscal 2022 results, ending Jun 30, 2022, wherein pre-exceptional earnings per share rose 29.3% year over year to 151.9 pence (in local currency). This was mainly driven by strong top-line growth, gross margin expansion and productivity savings. Effective marketing and exceptional commercial execution further aided the results.
Although the company predicts the operating environment to be challenging in fiscal 2023, it remains confident in 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%.
Diageo’s stock rose 2.6% yesterday, following the robust fiscal 2022 results and the upbeat view. Shares of the Zacks Rank #4 (Sell) company have lost 3.9% in the past year compared with the industry’s decline of 3.3%.
Image Source: Zacks Investment Research
Fiscal 2022 Highlights
On a reported basis, net sales increased 21.4%, driven by strong organic growth. Organic net sales were up 21.4% year over year. Diageo witnessed double-digit organic sales growth across all regions.
Organic sales benefited from the sustained recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains. The company’s top line also gained from continued premiumization efforts and favorable industry trends, particularly in the spirits category, which expanded the share of the total beverage alcohol space.
The company delivered a positive price mix of 11.1% in fiscal 2022. Price/mix benefited from a positive mix due to the robust performance of super-premium-plus brands, particularly scotch, tequila and Chinese white spirits. Recovery in the on-trade channel in North America and Europe, and the partial recovery in Travel Retail also aided the company’s mix. This was partly offset by a negative market mix due to a higher contribution to net sales from India. Moreover, price contributed to mid-single-digit growth due to pricing actions across all regions.
The organic gross margin expanded 112 basis points (bps) in fiscal 2022, driven by the positive mix due to premiumization, a recovery in the on-trade channel and improved fixed cost absorption due to volume growth. Price increases and supply productivity savings more than offset the impact of cost inflation in the fiscal year. The company delivered £380 million of productivity savings in fiscal 2022, driven by COGS productivity and marketing effectiveness.
The company’s operating profit improved 18.2% in fiscal 2022, driven by robust organic operating profit growth, offset by the negative impact of certain exception operating items, including a non-cash impairment in India and Russia businesses. Organic operating profit advanced 26.3% on growth across all regions. The company reported an organic operating profit growth rate ahead of organic sales growth.
The operating margin contracted 77 bps, while the organic operating margin increased 121 bps. The organic operating margin was aided by the strong recovery in the gross margin and leverage in operating costs despite a rise in marketing expenses. The company witnessed strong operating margin expansion in Latin America and the Caribbean, Europe, and Africa, which was partly negated by a decline in North America.
Financials
In fiscal 2022, Diageo delivered net cash from operating activities of £3.9 billion, marking a year-over-year increase of £0.3 billion. DEO reported a strong free cash flow of £2.8 million, down £0.3 billion from the last year’s level due to the lapping of strong working capital benefits in fiscal 2021.
Diageo remains committed to its disciplined approach to capital allocation primarily to enhance its shareholder value. DEO increased the final dividend 5% to 46.82 pence per share. This reflects its strong liquidity position and confidence in the long-term health of its business.
Additionally, Diageo completed £3.6 billion of share repurchases as part of the return of capital program of up to £4.5 billion. The company expects to complete the remaining £0.9 billion of buybacks under its return of capital program in fiscal 2023.
Stocks to Consider
We highlighted some better-ranked stocks from the broader Consumer Staples space, namely Fomento Economico Mexicano FMX, The Duckhorn Portfolio NAPA and Brown-Forman (BF.B).
Fomento Economico Mexicano, alias FEMSA, currently sports a Zacks Rank of 1 (Strong Buy). FMX has a trailing four-quarter earnings surprise of 3.9%, on average. It has a long-term earnings growth rate of 8.8%. The company has declined 28.4% 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 sales suggests growth of 11.3%, whereas earnings estimates indicate a decline of 3.8% from the prior-year reported number. The consensus mark for FMX’s earnings per share has moved up 3.6% in the past 30 days.
Duckhorn currently has a Zacks Rank #2 (Buy) and an expected long-term earnings growth rate of 12.2%. NAPA has a trailing four-quarter earnings surprise of 94.4%, on average. The company has declined 14.7% in the past year.
The Zacks Consensus Estimate for Duckhorn’s current financial-year sales and earnings per share suggests growth of 10.8% and 6.9%, respectively, from the year-ago reported numbers. The consensus mark for NAPA’s earnings per share has been unchanged in the past 30 days.
Brown-Forman currently carries a Zacks Rank #2. BF.B has a trailing four-quarter earnings surprise of 8.1%, on average. The company has risen 3.8% in the past year.
The Zacks Consensus Estimate for Brown-Forman’s current financial year’s sales and earnings per share suggests growth of 7.2% and 14.4%, respectively, from the year-ago reported numbers. The consensus mark for BF.B’s earnings per share has been unchanged in the past 30 days.
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
BrownForman Corporation (BF.B): Free Stock Analysis Report
Fomento Economico Mexicano S.A.B. de C.V. (FMX): Free Stock Analysis Report
Diageo plc (DEO): 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.
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Diageo plc DEO reported preliminary fiscal 2022 results, ending Jun 30, 2022, wherein pre-exceptional earnings per share rose 29.3% year over year to 151.9 pence (in local currency). DEO reported a strong free cash flow of £2.8 million, down £0.3 billion from the last year’s level due to the lapping of strong working capital benefits in fiscal 2021. DEO increased the final dividend 5% to 46.82 pence per share.
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Diageo plc DEO reported preliminary fiscal 2022 results, ending Jun 30, 2022, wherein pre-exceptional earnings per share rose 29.3% year over year to 151.9 pence (in local currency). DEO reported a strong free cash flow of £2.8 million, down £0.3 billion from the last year’s level due to the lapping of strong working capital benefits in fiscal 2021. DEO increased the final dividend 5% to 46.82 pence per share.
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Diageo plc DEO reported preliminary fiscal 2022 results, ending Jun 30, 2022, wherein pre-exceptional earnings per share rose 29.3% year over year to 151.9 pence (in local currency). DEO reported a strong free cash flow of £2.8 million, down £0.3 billion from the last year’s level due to the lapping of strong working capital benefits in fiscal 2021. DEO increased the final dividend 5% to 46.82 pence per share.
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Diageo plc (DEO): Free Stock Analysis Report Diageo plc DEO reported preliminary fiscal 2022 results, ending Jun 30, 2022, wherein pre-exceptional earnings per share rose 29.3% year over year to 151.9 pence (in local currency). DEO reported a strong free cash flow of £2.8 million, down £0.3 billion from the last year’s level due to the lapping of strong working capital benefits in fiscal 2021.
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727612.0
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2022-07-25 00:00:00 UTC
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Here's How Diageo (DEO) is Placed Just Ahead of FY22 Earnings
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https://www.nasdaq.com/articles/heres-how-diageo-deo-is-placed-just-ahead-of-fy22-earnings
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Diageo Plc DEO is scheduled to release preliminary results for fiscal 2022 on Jul 28. The company has been benefiting from the recovery in the on-trade channel, strong consumer demand in the off-trade channel and market share gains. However, continued inflationary pressures and currency headwinds have been hurting the Zacks Rank #3 (Hold) company’s performance.
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 2022. It recorded pre-exceptional earnings per share growth of 22.5% (in local currency) in the first half of fiscal 2022, with 15.8% sales growth.
Key Factors to Note
Strong consumer demand in the off-trade channel and recovery of the on-trade channel in key markets are likely to have aided Diageo’s top and bottom lines in fiscal 2022. Improved market share has been supported by favorable industry trends, with expanding market share of spirits and continued premiumization efforts. Driven by these and robust organic sales growth trends, Diageo is anticipated to have retained its strong performance in fiscal 2022. Organic sales in fiscal 2022 are expected to have benefited from robust growth across all regions, backed by effective marketing and exceptional commercial execution.
Strong recovery in the gross margin and operating cost leverage, along with higher marketing investments, are likely to have aided organic operating margin growth in fiscal 2022. Supply productivity savings and price increases, which have been offsetting higher cost inflation, are also expected to have boosted margins.
The company has also been gaining from consumer-led marketing and innovation. Its fiscal 2022 performance is expected to have benefited from efforts to leverage its existing e-commerce capabilities and accelerate investments in the online platform to cater to online demand.
On its lastearnings call the company expected organic sales momentum to continue in the second half of fiscal 2022. Although management anticipated near-term volatility to continue, it hinted at efficiently navigating through the supply-chain disruptions in fiscal 2022. The company also expected to gain from the resilience in off-trade and the continued recovery in the on-trade channel.
For fiscal 2022, DEO expected consumer demand to be resilient in North America, driving net sales growth. Continued innovation and effective marketing are also anticipated to have underpinned growth in North America. In Europe, the company is expected to have benefitted from the continued on-trade recovery and resilient off-trade channel. In the Asia Pacific, Africa, and Latin America and the Caribbean, it anticipated building on the momentum witnessed in the first half, with expectations of disruptions from COVID-19 to persist in these markets.
The company predicted organic operating profit to increase more than organic net sales in the second half of fiscal 2022. The operating margin is expected to have improved in the second half of fiscal 2022, driven by growth in sales volumes, positive channel mix and premiumization trends. It expected the focus on everyday efficiencies and revenue growth management to offset the impacts of the inflationary cost pressures. The interest expense rate is anticipated to be 2.7-3% for fiscal 2022.
However, Diageo has been witnessing inflationary pressures, driven by higher commodity costs, particularly agave, energy expenses and supply disruptions.
On its lastearnings call the company anticipated continued near-term volatility in some markets. The company expected to invest continually in marketing and commercial capabilities in fiscal 2022, particularly in North America and China. It expected the continued impacts of rising inflationary pressures to partly hurt margins.
The company also anticipated negative impacts of foreign exchange to hurt net sales and the operating profit in the second half of fiscal 2022. Nonetheless, it expected the adverse currency impacts to be significantly lower than that witnessed in the first half of fiscal 2022.
Looking for Lucrative Picks? Check These
Here are some companies you may want to consider this earnings season.
Lamb Weston LW has an Earnings ESP of +0.99% and currently sports a Zacks Rank of 1 (Strong Buy). The company is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2022 earnings. The consensus mark for LW’s quarterly revenues is pegged at $1.07 billion, which suggests 6.03% growth from the figure reported in the prior-year quarter.
The consensus mark for Lamb Weston’s quarterly earnings has moved up by a penny in the past 30 days to 51 cents per share. The consensus estimate for LW’s fiscal fourth-quarter earnings suggests growth of 15.9% from the year-ago quarter’s reported figure.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Archer Daniels Midland ADM currently has an Earnings ESP of +1.56% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports second-quarter 2022 numbers. The consensus mark for ADM’s quarterly earnings has moved up 3.6% in the past 30 days to $1.75 per share. The consensus estimate suggests growth of 31.6% from the year-ago quarter’s reported number.
Archer Daniels’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $25.3 billion, which suggests a rise of 10.2% from the figure reported in the prior-year quarter.
Chipotle Mexican Grill CMG currently has an Earnings ESP of +0.51% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports second-quarter 2022 results. The consensus mark for CMG’s quarterly revenues is pegged at $2.24 billion, which suggests a rise of 18.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Chipotle’s second-quarter earnings has moved down 0.2% to $9.02 per share in the past 30 days. The consensus estimate for CMG indicates 20.9% growth from $7.46 reported in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report
Archer Daniels Midland Company (ADM): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
Lamb Weston (LW): 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.
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Diageo Plc DEO is scheduled to release preliminary results for fiscal 2022 on Jul 28. For fiscal 2022, DEO expected consumer demand to be resilient in North America, driving net sales growth. Diageo plc (DEO): Free Stock Analysis Report
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For fiscal 2022, DEO expected consumer demand to be resilient in North America, driving net sales growth. Diageo Plc DEO is scheduled to release preliminary results for fiscal 2022 on Jul 28. Diageo plc (DEO): Free Stock Analysis Report
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Diageo Plc DEO is scheduled to release preliminary results for fiscal 2022 on Jul 28. For fiscal 2022, DEO expected consumer demand to be resilient in North America, driving net sales growth. Diageo plc (DEO): Free Stock Analysis Report
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Diageo Plc DEO is scheduled to release preliminary results for fiscal 2022 on Jul 28. For fiscal 2022, DEO expected consumer demand to be resilient in North America, driving net sales growth. Diageo plc (DEO): Free Stock Analysis Report
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2022-07-14 00:00:00 UTC
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7 Stocks Trading at a 52-Week Low Worth Buying Now
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https://www.nasdaq.com/articles/7-stocks-trading-at-a-52-week-low-worth-buying-now
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The stock market started off July with a bit of a rally. Many stocks have advanced smartly from their recent lows, though the last few days have been rough. That leaves investors wondering what absolute bargains are still out there in the market right now. And one way to answer that question is to look at stocks trading at a 52-week low.
These following seven stocks are still trading within 5% of their 52-week lows, based on their closing prices on July 13. For whatever reason, traders haven’t gravitated back into these stocks, and thus they can still be bought near their lowest points of the past year.
7 Cheap Semiconductor Stocks to Buy Now
From autos to spirits to airlines and more, there’s a lot of value in this list of stocks trading at a 52-week low. Let’s dig in.
TM Toyota $155.44
DIS The Walt Disney Company $92.94
MDT Medtronic $87.91
DEO Diageo $173.83
MMM 3M $128.37
DLR Digital Realty Trust $122.86
RYAAY Ryanair $67.93
Toyota Motor (TM)
Source: josefkubes / Shutterstock.com
Toyota Motor (NYSE:TM) is one of the largest companies in the world, and it’s also currently a stock trading at a 52-week low — just over 2% above that level.
It’s also one of the most promising stocks for a quick comeback.
That’s because much of Toyota’s decline is due to its geography rather than its own business. As Toyota is based out of Japan, it reports financial results in yen and is principally traded on the Japanese stock exchange. Japanese assets have been tumbling in large part thanks to the yen’s precipitous decline against the U.S. dollar since early 2021.
When the yen tanks, it makes the value of TM stock appear to be less, in dollars, than before. In actuality, however, Toyota will become more profitable with a weaker yen as its operating costs decline.
As it is, shares are already trading at around 10 times earnings as shares slide back to near pre-pandemic levels. With supply chain and semiconductor shortages now clearing up, however, the future should look brighter for Toyota going forward.
Walt Disney (DIS)
Source: nikkimeel / Shutterstock.com
The Walt Disney Company (NYSE:DIS) has suffered enough. I’ve been repeatedly negative on DIS stock in the past. But when the share price gets cut in half, that’s enough to change the outlook for Disney.
The problem has primarily been with the streaming business. Shares of streaming leader Netflix (NASDAQ:NFLX) have collapsed this year, as investors demand immediate profits rather than future growth. As I recently argued, investors are far too negative on NFLX stock now.
By extension, that excessive trading pessimism also applies to Disney. That’s because investors often value one company based on a comparable company; as Netflix’s valuation has plummeted, competitors like Disney have also gotten written down in sympathy.
But Disney is more than just streaming. The theme parks, for example, are enjoying record visitor numbers as travel comes roaring back from the pandemic shutdowns. In addition, Disney retains a far broader library of legacy content and intellectual property than rivals like Netflix.
7 Best Dow Stocks to Buy in July
There’s no denying that Disney still has some serious challenges to deal with in coming months. However, DIS stock now fully reflects these concerns.
Medtronic (MDT)
Source: JHVEPhoto / Shutterstock.com
Medtronic is one of the world’s largest medical device companies. The sector got hammered in the wake of the novel coronavirus, as hospitals delayed elective surgeries to save beds for emergencies. Additionally, patients were understandably nervous about being in hospitals and potentially being exposed to Covid-19 in the process.
The sector picked back up in 2021 as things started to normalize, but now supply chain issues and inflation have sent leading medical device companies back to their 52-week lows. This is nothing particular to Medtronic (NYSE:MDT) in particular, as many of its peers have followed a similar trajectory over the past 18 months.
In any case, MDT stock specifically is now offering a 3.1% dividend yield and sells for less than 16 times forward earnings. Both of those are attractive figures compared to Medtronic’s historical valuation ranges.
Diageo (DEO)
Source: IgorGolovniov / Shutterstock.com
Diageo (NYSE:DEO) is one of the world’s largest spirits companies. Its brands include but are hardly limited to Johnnie Walker, Tanqueray, Baileys, Don Julio, and Guinness beer.
The alcohol industry is a great one for several reasons. Profit margins are massive, as input costs are low. Competition tends to be manageable, as people gravitate to brands with a long and storied history. Finally, alcohol demand tends to be roughly the same, regardless of economic conditions.
Diageo, along with other spirits companies, have sold off recently on supply chain and inflation concerns. And sure, earnings may dip in 2022. Over the longer-term, however, alcohol companies can easily offset inflation with price hikes.
5 Best Stocks to Buy if You Have $250 to Spend
Meanwhile, Diageo should benefit as global travel picks back up leading to more on-premise consumption. The upcoming World Cup this fall will be another near-term driver for increased beverage consumption.
3M (MMM)
Source: Nor Gal / Shutterstock.com
3M (NYSE:MMM) is a large, diversified industrial company. It makes everything from its Post-It notes to safety helmets and dental equipment among its dozens of lines of business.
The company is also a superior growth and income play. It has increased its dividend an astounding 63 years in a row, and the current dividend yield is a juicy 4.6%.
Shares are currently depressed due to some product liability lawsuits, along with general recessionary fears. However, MMM stock is a bargain for those with patience to wait out the current economic unease.
The company raises its dividend year in and year out, regardless of broader economic concerns, and shares currently sell for less than 12 times forward earnings.
Digital Realty Trust (DLR)
Source: dotshock / Shutterstock
Digital Realty Trust (NYSE:DLR) is one of the world’s largest real estate investment trusts (REITs) that focuses on the digital infrastructure space.
It began primarily focused on providing generic wholesale data center capacity. This business grew tremendously but has seen margins compress in recent years as more competition has entered the arena. Digital Realty has astutely adjusted its portfolio to add more higher-value services, such as interconnection and colocation services for specific tenants.
DLR stock is now essentially flat since the start of the pandemic. That comes even as demand for internet bandwidth has grown substantially over the past two years. Like so many tech-related stocks, Digital Realty has gotten punished for being a perceived loser amid economic reopening.
7 Best Biotech Stocks to Buy in July 2022
The actual financial results, along with the company’s dividend, are as strong as ever, however, and shares are set to rebound.
Ryanair Holdings (RYAAY)
Source: Dmitry Birin/Shutterstock.com
It appears that the price of crude oil is finally rolling over. The benchmark West Texas Intermediate (WTI) crude price topped $125 per barrel following Russia’s invasion of Ukraine. Now, however, the price has slipped back to under $100. Meanwhile, jet fuel prices are also declining significantly as pressure is easing on the oil refining system.
All this is great news for the airlines, as jet fuel is one of their biggest input costs. That’s especially true for discount airlines, such as Europe’s giant Ryanair Holdings (NASDAQ:RYAAY). Since discount airlines have lower overhead costs for things such as airplane leases and staff, jet fuel is a proportionally bigger piece of their cost picture. So, the current drop in oil is a big relief.
Meanwhile, global travel demand has continued to surge back as economies reopen. In fact, demand has gotten so steep that many airports are struggling to cope with the flood of additional travelers. This is leading to short-term headaches, but is nothing but positive for airlines like Ryanair over the longer-term.
On the date of publication, Ian Bezek held a long position in DEO, MMM, and MDT stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Stocks Trading at a 52-Week Low Worth Buying 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.
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TM Toyota $155.44 DIS The Walt Disney Company $92.94 MDT Medtronic $87.91 DEO Diageo $173.83 Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo (NYSE:DEO) is one of the world’s largest spirits companies. On the date of publication, Ian Bezek held a long position in DEO, MMM, and MDT stock.
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TM Toyota $155.44 DIS The Walt Disney Company $92.94 MDT Medtronic $87.91 DEO Diageo $173.83 Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo (NYSE:DEO) is one of the world’s largest spirits companies. On the date of publication, Ian Bezek held a long position in DEO, MMM, and MDT stock.
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TM Toyota $155.44 DIS The Walt Disney Company $92.94 MDT Medtronic $87.91 DEO Diageo $173.83 Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo (NYSE:DEO) is one of the world’s largest spirits companies. On the date of publication, Ian Bezek held a long position in DEO, MMM, and MDT stock.
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TM Toyota $155.44 DIS The Walt Disney Company $92.94 MDT Medtronic $87.91 DEO Diageo $173.83 Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo (NYSE:DEO) is one of the world’s largest spirits companies. On the date of publication, Ian Bezek held a long position in DEO, MMM, and MDT stock.
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2022-07-14 00:00:00 UTC
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The Zacks Analyst Blog Highlights The Howard Hughes, Wyndham Hotels & Resorts, Greif, CVR Energy and Avis Budget Group
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DEO
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-the-howard-hughes-wyndham-hotels-resorts-greif-cvr-0
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For Immediate Release
Chicago, IL – July 14, 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: Pfizer Inc. PFE, Raytheon Technologies Corp. RTX, Diageo plc DEO, Infosys Ltd. INFY and Canadian Pacific Railway Ltd. CP.
Here are highlights from Wednesday’s Analyst Blog:
Top Analyst Reports for Pfizer, Raytheon 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 Pfizer Inc., Raytheon Technologies Corp., 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 >>>
Pfizer shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+34.7% vs. +17.6%). The company boasts a diversified portfolio of innovative drugs and vaccines including Ibrance and Prevnar. The zacks analyst believes that no company is as strongly placed in the COVID vaccines/treatment market as Pfizer right now.
Its COVID-19 vaccine has become a key contributor to the top line. The vaccine together with Pfizer's promising oral antiviral pill for COVID-19, Paxlovid is expected to generate a combined $54 billion in sales in 2022. Pfizer boasts a sustainable pipeline with multiple late-stage programs that can drive growth.
However, currency headwinds and pricing pressure are key top-line headwinds. Concerns remain about long-term growth drivers beyond its COVID-related products due to competitive pressure.
(You can read the full research report on Pfizer here >>>)
Raytheon Technologies shares have outperformed the Zacks Aerospace - Defense Equipment industry over the past year (+13.4% vs. -0.8%). The company continues to receive ample orders for its combat-proven defense products from the Pentagon. It expects both domestic and international program growth to boost its defense business.
Raytheon achieved $90 million of incremental merger synergies in the first quarter. Looking ahead, the company aims at achieving $335 million of incremental cost synergies during 2022. The stock holds a solid solvency position.
However, economic sanctions imposed by governments in response to Russia's invasion in Ukraine might hurt Raytheon. A comparative analysis of its trailing 12-month Price/Book ratio reflects a relatively gloomy picture. Purchase order declines, witnessed lately, with original equipment manufacturer customers delaying orders pose a risk to the stock.
(You can read the full research report on Raytheon Technologies here >>>)
Diageo shares have declined -9.6% over the past year against the Zacks Beverages - Alcohol industry's decline of -10.0%. The company is facing continued inflationary pressures and also currency headwinds are concerning. Nevertheless, margin growth was driven by supply productivity savings and price increases, which more than offset the higher cost inflation.
It provided a decent view for fiscal 2022, with organic sales momentum likely to continue in the second half of fiscal 2022. However, continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains, which also aided the company's first-half fiscal 2022 performance.
The company witnessed sales, operating margin and earnings growth in first-half fiscal 2021 driven by organic sales growth across all regions. Strong recovery in gross margin and operating cost leverage along with higher marketing investments aided organic operating margin growth.
(You can read the full research report on Diageo here >>>)
Other noteworthy reports we are featuring today include Infosys Ltd. and Canadian Pacific Railway Ltd.
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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
Pfizer Inc. (PFE): Free Stock Analysis Report
Infosys Limited (INFY): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
Canadian Pacific Railway Limited (CP): Free Stock Analysis Report
Raytheon Technologies Corporation (RTX): 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.
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Stocks recently featured in the blog include: Pfizer Inc. PFE, Raytheon Technologies Corp. RTX, Diageo plc DEO, Infosys Ltd. INFY and Canadian Pacific Railway Ltd. CP. Diageo plc (DEO): Free Stock Analysis Report (You can read the full research report on Pfizer here >>>) Raytheon Technologies shares have outperformed the Zacks Aerospace - Defense Equipment industry over the past year (+13.4% vs. -0.8%).
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Stocks recently featured in the blog include: Pfizer Inc. PFE, Raytheon Technologies Corp. RTX, Diageo plc DEO, Infosys Ltd. INFY and Canadian Pacific Railway Ltd. CP. Diageo plc (DEO): Free Stock Analysis Report Today's Research Daily features new research reports on 16 major stocks, including Pfizer Inc., Raytheon Technologies Corp., and Diageo plc.
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Stocks recently featured in the blog include: Pfizer Inc. PFE, Raytheon Technologies Corp. RTX, Diageo plc DEO, Infosys Ltd. INFY and Canadian Pacific Railway Ltd. CP. Diageo plc (DEO): Free Stock Analysis Report Here are highlights from Wednesday’s Analyst Blog: Top Analyst Reports for Pfizer, Raytheon and Diageo The Zacks Research Daily presents the best research output of our analyst team.
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Stocks recently featured in the blog include: Pfizer Inc. PFE, Raytheon Technologies Corp. RTX, Diageo plc DEO, Infosys Ltd. INFY and Canadian Pacific Railway Ltd. CP. Diageo plc (DEO): Free Stock Analysis Report However, continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains, which also aided the company's first-half fiscal 2022 performance.
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2022-07-13 00:00:00 UTC
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Top Analyst Reports for Pfizer, Raytheon Technologies & Diageo
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https://www.nasdaq.com/articles/top-analyst-reports-for-pfizer-raytheon-technologies-diageo
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Wednesday, July 13, 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 Pfizer Inc. (PFE), Raytheon Technologies Corp. (RTX), 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 >>>
Pfizer shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+34.7% vs. +17.6%). The company boasts a diversified portfolio of innovative drugs and vaccines including Ibrance and Prevnar. The zacks analyst believes that no company is as strongly placed in the COVID vaccines/treatment market as Pfizer right now.
Its COVID-19 vaccine has become a key contributor to the top line. The vaccine together with Pfizer’s promising oral antiviral pill for COVID-19, Paxlovid is expected to generate a combined $54 billion in sales in 2022. Pfizer boasts a sustainable pipeline with multiple late-stage programs that can drive growth.
However, currency headwinds and pricing pressure are key top-line headwinds. Concerns remain about long-term growth drivers beyond its COVID-related products due to competitive pressure.
(You can read the full research report on Pfizer here >>>)
Raytheon Technologies shares have outperformed the Zacks Aerospace - Defense Equipment industry over the past year (+13.4% vs. -0.8%). The company continues to receive ample orders for its combat-proven defense products from the Pentagon. It expects both domestic and international program growth to boost its defense business.
Raytheon achieved $90 million of incremental merger synergies in the first quarter. Looking ahead, the company aims at achieving $335 million of incremental cost synergies during 2022. The stock holds a solid solvency position.
However, economic sanctions imposed by governments in response to Russia’s invasion in Ukraine might hurt Raytheon. A comparative analysis of its trailing 12-month Price/Book ratio reflects a relatively gloomy picture. Purchase order declines, witnessed lately, with original equipment manufacturer customers delaying orders pose a risk to the stock.
(You can read the full research report on Raytheon Technologies here >>>)
Diageo shares have declined -9.6% over the past year against the Zacks Beverages - Alcohol industry’s decline of -10.0%. The company is facing continued inflationary pressures and also currency headwinds are concerning. Nevertheless, margin growth was driven by supply productivity savings and price increases, which more than offset the higher cost inflation.
It provided a decent view for fiscal 2022, with organic sales momentum likely to continue in the second half of fiscal 2022. However, continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains, which also aided the company’s first-half fiscal 2022 performance.
The company witnessed sales, operating margin and earnings growth in first-half fiscal 2021 driven by organic sales growth across all regions. Strong recovery in gross margin and operating cost leverage along with higher marketing investments aided organic operating margin growth.
(You can read the full research report on Diageo here >>>)
Other noteworthy reports we are featuring today include AbbVie Inc. (ABBV), Infosys Ltd. (INFY) and Canadian Pacific Railway Ltd. (CP).
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
Pfizer's (PFE) 2022 Sales to Ride on COVID Vaccine & Pill
Order Growth Aids Raytheon (RTX), Sanction Impacts Hit
Diageo's (DEO) Focus on Premium Brands to Boost Growth
Featured Reports
AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth
The Zacks analyst says that AbbVie (ABBV) has an impressive late-stage pipeline. It has several new drugs which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Digital Transformation, AI Proliferation Aid Infosys (INFY)
Per the Zacks analyst, Infosys is benefiting from large deal wins and higher investments by clients in digital transformation, artificial intelligence and automation.
Canadian Pacific (CP) Rides on Dividends Amid Rising Expenses
The Zacks analyst likes the shareholder-friendly measures adopted by Canadian Pacific. However, rising operating expenses are concerning as they are likely to keep the bottom line under pressure.
Permian Basin Focus, Cost Management Aid Occidental (OXY)
Per the Zacks analyst Occidental's acquisition of Anadarko expanded its operation in resource rich Permian Basin and efficient cost management will drive its performance over the long run.
Aspen (AZPN) to Gain From Product Portfolio & Acquisitions
Per the Zacks analyst, Aspen's diversified product portfolio is witnessing heathy momentum. The integration with Emerson???s OSI Inc and the Geological Simulation Software business also bodes well.
Solid BBD Portfolio Aids Highwoods (HIW) Amid Rate Hike Woes
Per the Zacks Analyst, Highwoods' assets in the best business districts (BBDs) will likely enjoy steady demand amid recovery in office market fundamentals. However, interest rate hike is a concern.
Teladoc (TDOC) Gains From Buyouts, Rise in Telehealth Visit
Per the Zacks analyst, Teladoc's strategic acquisitions are enhancing distribution capabilities and service offerings. Also, a surge in telehealth visits is stimulating membership growth.
New Upgrades
Cenovus (CVE) to Gain From Alberta Tucker Asset Divestment
The Zacks analyst is upbeat about Cenovus' divestment of the Tucker thermal asset in Alberta. The divestment will help reduce its debt burden and raise shareholder returns.
Strong Segmental Growth, Notable Buyouts Aid STERIS (STE)
The Zacks analyst is upbeat about STERIS' strong sales in the Healthcare, Applied Sterilization Technologies and Life Sciences arms. Cantel Medical and Synergy Health buyouts also aid sales growth.
New Customers, Robust Omnipod DASH Sales Aid Insulet (PODD)
The Zacks analyst is bullish about solid new customer gains and increasing volume growth through the U.S. pharmacy channel of Insulet. Also, the robust global uptake of Omnipod DASH seems encouraging.
New Downgrades
High Costs & Low Iron Ore Prices to Hurt BHP Group (BHP)
The Zacks Analyst is concerned lower iron ore prices amid persistent worries about weak demand in top consumer China as well as escalated input costs will impact BHP's results.
Escalated SG&A Costs Hurt Helen of Troy's (HELE) Profits
Per the Zacks analyst, Helen of Troy is seeing higher SG&A costs. In fiscal first-quarter consolidated SG&A ratio rose 6.1 percentage points due to higher personnel and marketing costs among others.
Rising Rates & Higher Costs Hurt D.R. Horton's (DHI) Prospects
Per the Zacks analyst, D.R. Horton may witness lower demand given rising interest rates, continued supply chain disruptions that are affecting affordability of the prospective buyers.
Zacks' Top Picks to Cash in on Electric Vehicles
Big money has already been made in the Electric Vehicle (EV) industry. But, the EV revolution has not hit full throttle yet. There is a lot of money to be made as the next push for future technologies ramps up. Zacks’ Special Report reveals 5 picks investors
See 5 EV Stocks With Extreme Upside Potential >>
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
Pfizer Inc. (PFE): Free Stock Analysis Report
Infosys Limited (INFY): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
Canadian Pacific Railway Limited (CP): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Raytheon Technologies Corporation (RTX): 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.
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Today's Research Daily features new research reports on 16 major stocks, including Pfizer Inc. (PFE), Raytheon Technologies Corp. (RTX), and Diageo plc (DEO). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Pfizer's (PFE) 2022 Sales to Ride on COVID Vaccine & Pill Order Growth Aids Raytheon (RTX), Sanction Impacts Hit Diageo's (DEO) Focus on Premium Brands to Boost Growth Featured Reports AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth The Zacks analyst says that AbbVie (ABBV) has an impressive late-stage pipeline. Diageo plc (DEO): Free Stock Analysis Report
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Today's Research Daily features new research reports on 16 major stocks, including Pfizer Inc. (PFE), Raytheon Technologies Corp. (RTX), and Diageo plc (DEO). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Pfizer's (PFE) 2022 Sales to Ride on COVID Vaccine & Pill Order Growth Aids Raytheon (RTX), Sanction Impacts Hit Diageo's (DEO) Focus on Premium Brands to Boost Growth Featured Reports AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth The Zacks analyst says that AbbVie (ABBV) has an impressive late-stage pipeline. Diageo plc (DEO): Free Stock Analysis Report
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Pfizer's (PFE) 2022 Sales to Ride on COVID Vaccine & Pill Order Growth Aids Raytheon (RTX), Sanction Impacts Hit Diageo's (DEO) Focus on Premium Brands to Boost Growth Featured Reports AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth The Zacks analyst says that AbbVie (ABBV) has an impressive late-stage pipeline. Today's Research Daily features new research reports on 16 major stocks, including Pfizer Inc. (PFE), Raytheon Technologies Corp. (RTX), and Diageo plc (DEO). Diageo plc (DEO): Free Stock Analysis Report
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Pfizer's (PFE) 2022 Sales to Ride on COVID Vaccine & Pill Order Growth Aids Raytheon (RTX), Sanction Impacts Hit Diageo's (DEO) Focus on Premium Brands to Boost Growth Featured Reports AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth The Zacks analyst says that AbbVie (ABBV) has an impressive late-stage pipeline. Today's Research Daily features new research reports on 16 major stocks, including Pfizer Inc. (PFE), Raytheon Technologies Corp. (RTX), and Diageo plc (DEO). Diageo plc (DEO): Free Stock Analysis Report
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2022-07-06 00:00:00 UTC
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Diageo (DEO) & Vita Coco to Launch Premium Canned Cocktails
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https://www.nasdaq.com/articles/diageo-deo-vita-coco-to-launch-premium-canned-cocktails
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Diageo DEO collaborated with The Vita Coco Company to launch a premium canned cocktail — Vita Coco Spiked with Captain Morgan. The new drink will be a mix of Captain Morgan Caribbean white rum and Vita Coco coconut water. Captain Morgan and Vita Coco coconut water are leading products in their respective categories.
The move is in sync with Diageo’s plans to expand its ready-to-drink (RTD) portfolio. It also reflects consumers’ growing preference for low- or no-alcohol drinks due to health consciousness. This has led to the rise in the popularity of bar-like ready-to-drink cocktails in canned packaging.
Notably, shares of DEO have lost 10.9% in the past year but came ahead of the industry’s decline of 11.4%.
Image Source: Zacks Investment Research
Most beverage companies are tapping into new categories like ready-to-drinkand alcoholic beverages to drive growth. These factors have led RTDs to become preferred alternatives for traditional alcoholic drinks. The RTD category is expected to rise 29% over the next three years, per IWSR Drinks Market Analysis.
With the partnership, DEO seeks to leverage the rising demand for rum-based cocktails. In the United States, the demand for such cocktails has been growing rapidly, outpacing the entire spirit-based ready-to-drink category.
The new product will come in three flavors — pina colada, daiquiri and mojito — for $14.99 per 4-pack. It is likely to be available in early 2023 across the United States. Diageo will produce, distribute and market the new cocktail.
Prior to this, Brown-Forman Corporation (BF.B) and Coca-Cola collaborated to introduce the iconic Jack & Coke cocktail. The new ready-to-drink pre-mixed cocktail will be made using Jack Daniel’s Tennessee Whiskey and Coca-Cola.
The companies intend to launch the cocktail initially in Mexico and make it available in markets worldwide from late 2022. BF.B also noted that a zero-sugar version of the beverage would be available.
Constellation Brands STZ has also partnered with Coca-Cola to launch another spirit-based drink, FRESCA Mixed cocktails, in collaboration with Corona brewer. As part of the deal, Constellation Brands will manufacture, market and distribute the new FRESCA Mixed cocktails in the United States.
Constellation Brands’ FRESCA Mixed cocktails are expected to be launched later this year in the United States. The drink will be a spirit-based, ready-to-drink cocktail, in sync with the emerging consumer trends.
Similarly, Boston Beer SAM collaborated with PepsiCo to launch alcoholic beverages under the Mountain Dew brand name in February. This new drink, Hard Mtn Dew, is sold and marketed by a new entity Blue Cloud created by PepsiCo.
The Hard Mtn Dew will be developed and produced by Boston Beer. The beverage will contain 5% alcohol by volume with zero sugar.
Coming back to DEO, we hope that the continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains, and expansion in the RTD category will aid this Zacks Rank #4 (Sell) company and help it get back on track.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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
BrownForman Corporation (BF.B): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
Constellation Brands Inc (STZ): Free Stock Analysis Report
The Boston Beer Company, Inc. (SAM): Free Stock Analysis Report
To read this article on Zacks.com 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.
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Diageo DEO collaborated with The Vita Coco Company to launch a premium canned cocktail — Vita Coco Spiked with Captain Morgan. Notably, shares of DEO have lost 10.9% in the past year but came ahead of the industry’s decline of 11.4%. With the partnership, DEO seeks to leverage the rising demand for rum-based cocktails.
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Diageo DEO collaborated with The Vita Coco Company to launch a premium canned cocktail — Vita Coco Spiked with Captain Morgan. Notably, shares of DEO have lost 10.9% in the past year but came ahead of the industry’s decline of 11.4%. With the partnership, DEO seeks to leverage the rising demand for rum-based cocktails.
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Diageo DEO collaborated with The Vita Coco Company to launch a premium canned cocktail — Vita Coco Spiked with Captain Morgan. Coming back to DEO, we hope that the continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains, and expansion in the RTD category will aid this Zacks Rank #4 (Sell) company and help it get back on track. Notably, shares of DEO have lost 10.9% in the past year but came ahead of the industry’s decline of 11.4%.
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Diageo DEO collaborated with The Vita Coco Company to launch a premium canned cocktail — Vita Coco Spiked with Captain Morgan. Notably, shares of DEO have lost 10.9% in the past year but came ahead of the industry’s decline of 11.4%. With the partnership, DEO seeks to leverage the rising demand for rum-based cocktails.
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dad6535f-1e8e-441f-b6b3-219ecabf35d3
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727617.0
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2022-06-28 00:00:00 UTC
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This Overlooked Stock Can Thrive in Any Economy
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DEO
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https://www.nasdaq.com/articles/this-overlooked-stock-can-thrive-in-any-economy
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nan
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nan
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Nobody likes a recession, but it happens, and one could be coming. The Federal Reserve is raising the federal funds rate to combat inflation and forecasting slowing economic growth and rising unemployment over the coming months.
Alcohol giant Diageo (NYSE: DEO) can be an excellent haven for investors looking for companies built to withstand tough times. Here is what makes Diageo such a durable business and what investors can expect from this overlooked giant moving forward.
A fully stocked bar
Diageo is a conglomerate, so consumers might not be familiar with the company. However, they likely know many of the 200 alcohol brands it owns, including Captain Morgan, Smirnoff, Johnnie Walker, Crown Royal, Guinness, Bailey's, and many others.
The company resides in London, England, another factor that makes it an overlooked gem among U.S. investors. Still it trades on the New York Stock Exchange as an American Depository Receipt (ADR), where banks buy shares on the foreign company's home exchange and sell certificates representing those shares to American investors.
Alcohol has been a part of cultures worldwide for thousands of years, and Diageo's roots trace back to the 1600s. Today, spirits are sold in stores and consumed in bars and restaurants everywhere. Diageo's revenue totaled more than 12 billion pound sterling ($15.6 billion) in its fiscal 2021.
Overflowing profits
Spirits are relatively simple products, consisting primarily of starches or grains, depending on the actual spirit. Diageo sells many premium brands, giving it a solid amount of pricing power. The company was hit hard during COVID-19 when social gathering venues were closed, but it is roaring back; revenue for the six months ended Dec. 31, 2021, grew 16% year over year to £8 billion.
Free cash flow was £1.6 billion for those six months, meaning that the business converted 20% of its revenue into cash profits for management to do as it wants.
That might mean acquiring up-and-coming brands to drive growth and preserve market share, like when it bought tequila maker 21Seeds earlier this year (for an undisclosed cash sum) or the share repurchases and dividends it funds each year.
DEO Dividend Yield data by YCharts
Investors can enjoy an almost 2.2% dividend yield, and the company's outstanding shares have fallen almost 10% over the past five years, helping grow earnings per share (EPS). A steadily growing, profitable business is one that investors can buy and hold for the long term and feel good about getting solid investment returns from without a ton of stress along the way.
Steady long-term growth ahead
Moreover, alcohol is a staple of society, whether people drink socially at bars and restaurants or buy spirits to drink at home. Diageo's leadership in such a timeless industry is arguably its most attractive feature to investors.
Diageo is one of the world's largest alcohol companies, yet the industry is so large and fragmented that it's poised to continue steadily growing for years. Management estimates it owns roughly 4% of the worldwide alcoholic beverage market, with a long-term goal to increase that 50% to a 6% share by 2030.
Analysts expect the company's 2022 EPS to come in at $7.20 and to grow by an average of 10% annually over the next three to five years. This matches the S&P 500's historical average growth rate, yet the stock trades at a premium to the index, commanding a price-to-earnings (P/E) ratio of 25 versus 20 for the S&P 500.
The stock has fallen nearly 20% from its high, and continued market volatility might push shares lower yet. However, the company could be seen by many as a defensive stock that might attract attention in a recession.
Investors who are on the fence about the numbers could always dollar-cost average to build a position slowly. Still, Diageo is poised to be around many years from now, making it a reliable investment if given enough time to do its thing.
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Justin Pope has no position in any of the stocks mentioned. 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.
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Alcohol giant Diageo (NYSE: DEO) can be an excellent haven for investors looking for companies built to withstand tough times. DEO Dividend Yield data by YCharts Investors can enjoy an almost 2.2% dividend yield, and the company's outstanding shares have fallen almost 10% over the past five years, helping grow earnings per share (EPS). However, they likely know many of the 200 alcohol brands it owns, including Captain Morgan, Smirnoff, Johnnie Walker, Crown Royal, Guinness, Bailey's, and many others.
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Alcohol giant Diageo (NYSE: DEO) can be an excellent haven for investors looking for companies built to withstand tough times. DEO Dividend Yield data by YCharts Investors can enjoy an almost 2.2% dividend yield, and the company's outstanding shares have fallen almost 10% over the past five years, helping grow earnings per share (EPS). Still it trades on the New York Stock Exchange as an American Depository Receipt (ADR), where banks buy shares on the foreign company's home exchange and sell certificates representing those shares to American investors.
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DEO Dividend Yield data by YCharts Investors can enjoy an almost 2.2% dividend yield, and the company's outstanding shares have fallen almost 10% over the past five years, helping grow earnings per share (EPS). Alcohol giant Diageo (NYSE: DEO) can be an excellent haven for investors looking for companies built to withstand tough times. Still it trades on the New York Stock Exchange as an American Depository Receipt (ADR), where banks buy shares on the foreign company's home exchange and sell certificates representing those shares to American investors.
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Alcohol giant Diageo (NYSE: DEO) can be an excellent haven for investors looking for companies built to withstand tough times. DEO Dividend Yield data by YCharts Investors can enjoy an almost 2.2% dividend yield, and the company's outstanding shares have fallen almost 10% over the past five years, helping grow earnings per share (EPS). Here is what makes Diageo such a durable business and what investors can expect from this overlooked giant moving forward.
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2f09fa91-0158-4b93-b23c-3785d3ad02e3
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727618.0
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2022-06-26 00:00:00 UTC
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Should You Buy, Sell, Or Hold Diageo Stock Around $175?
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DEO
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https://www.nasdaq.com/articles/should-you-buy-sell-or-hold-diageo-stock-around-%24175
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nan
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nan
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After a 21% fall year-to-date, at the current levels, we believe Diageo stock (NYSE: DEO) can see higher levels. DEO stock fell from $220 in early January to under $175 now. The YTD -21% move for DEO marks an in-line performance with -22% returns for the broader S&P500 index.
Looking at the longer term, DEO stock is up 23% from levels seen in late 2018. This marks an outperformance compared to some of its peers, with Anheuser-Busch InBev stock falling 21%, Molson Coors Beverage stock down 7%, but an underperformance compared to the broader markets, with the S&P 500 index rising 51% over the same period.
This rise over the last three years was driven by the company’s P/E ratio, which grew 36% to 28x currently from 21x in 2018. This is offset by its earnings, which fell 9% to $6.15 in 2021, compared to $6.76 in 2018, on a per-share basis. Earnings contraction was due to a 16% decline in net income margin, more than offsetting a low single-digit revenue growth over this period.
Diageo’s revenue rose 2% to $17.2 billion in 2021, compared to $16.9 billion in 2018. The revenue plunged to $14.8 billion in 2020 due to the impact of the pandemic. However, the demand over the last few quarters has recovered, with pubs and bars reopening after the easing of Covid-19 restrictions. An increase in the population of drinkers with higher disposable income, and rising penetration rates, especially in the emerging markets, are driving the company’s sales growth. However, more recently, rising interest rates, supply chain disruptions, and a high inflationary environment are expected to weigh on revenue growth for the company.
Diageo’s net income margin of 20.9% in 2021 reflects a 400 bps fall from 24.8% in 2018 due to higher costs. We expect the net income margin to improve to 22.2% in 2022, led by better pricing and cost efficiencies. Diageo has spent $7.4 billion in share repurchases between 2018 and 2021, resulting in the share count falling to 586 million in 2021 from 624 million, and this trend is expected to continue over the coming years.
We estimate Diageo’s valuation to be $225 per share, reflecting a 30% upside from its current market price of $173, implying that investors may be better off using the recent dip to enter DEO stock for gains in the long run. Our valuation represents a forward P/E ratio of 32x based on our earnings forecast of $7.10 on a per share and adjusted basis for full-fiscal 2022. This compares with an average of 34x seen over the last three 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 has now entered bear market territory with rising concerns of slowing economic growth given the high inflation, Fed action, and supply chain disruptions.
While DEO stock has room for growth, it is helpful to see how Diageo’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for PepsiCo vs. Williams-Sonoma.
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 Jun 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
DEO Return -7% -21% 68%
S&P 500 Return 0% -22% 84%
Trefis Multi-Strategy Portfolio -9% -26% 189%
[1] Month-to-date and year-to-date as of 6/22/2022
[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.
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We estimate Diageo’s valuation to be $225 per share, reflecting a 30% upside from its current market price of $173, implying that investors may be better off using the recent dip to enter DEO stock for gains in the long run. After a 21% fall year-to-date, at the current levels, we believe Diageo stock (NYSE: DEO) can see higher levels. DEO stock fell from $220 in early January to under $175 now.
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After a 21% fall year-to-date, at the current levels, we believe Diageo stock (NYSE: DEO) can see higher levels. Total [2] DEO Return -7% -21% 68% S&P 500 Return 0% -22% 84% Trefis Multi-Strategy Portfolio -9% -26% 189% [1] Month-to-date and year-to-date as of 6/22/2022 [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. DEO stock fell from $220 in early January to under $175 now.
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We estimate Diageo’s valuation to be $225 per share, reflecting a 30% upside from its current market price of $173, implying that investors may be better off using the recent dip to enter DEO stock for gains in the long run. Total [2] DEO Return -7% -21% 68% S&P 500 Return 0% -22% 84% Trefis Multi-Strategy Portfolio -9% -26% 189% [1] Month-to-date and year-to-date as of 6/22/2022 [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. After a 21% fall year-to-date, at the current levels, we believe Diageo stock (NYSE: DEO) can see higher levels.
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After a 21% fall year-to-date, at the current levels, we believe Diageo stock (NYSE: DEO) can see higher levels. DEO stock fell from $220 in early January to under $175 now. The YTD -21% move for DEO marks an in-line performance with -22% returns for the broader S&P500 index.
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99233615-6d81-4407-85f7-f7bd530603b3
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727619.0
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2022-06-21 00:00:00 UTC
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What's Next For Diageo Stock After A 10% Fall In A Month?
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DEO
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https://www.nasdaq.com/articles/whats-next-for-diageo-stock-after-a-10-fall-in-a-month
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nan
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nan
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Diageo stock (NYSE: DEO) has fallen 10% in a month, while it’s down 22% year-to-date. A high inflationary environment will likely weigh on consumer demand, impacting the retail stocks. The decline in DEO can largely be attributed to the weakness in the broader markets, owing to the rising interest rates, supply chain disruptions, and increasing costs.
Now that Diageo stock has seen a fall of 10% in a month, will it continue its downward trajectory, or is a rise imminent? Going by historical performance, there is a higher chance of a rise for DEO stock over the next month. Of 41 instances in the last ten years that DEO stock saw a twenty-one-day fall of 10% or more, 29 resulted in DEO stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 29 out of 41, or about a 71% chance of a rise in DEO stock over the next month. See our analysis of Diageo Stock Chance of Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using the last ten years’ data
After moving -6% or more over five days, the stock rose on 71% of the occasions in the next five days.
After moving -6% or more over ten days, the stock rose on 60% of the occasions in the next ten days.
After moving -10% or more over a twenty-one-day period, the stock rose on 71% 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 days, ten days, and the next month.
Return (Recent) Comparison With Peers
Five-Day Return: KDP highest at -3.3%; SAM lowest at -9.2%
Ten-Day Return: KDP highest at 0.6%; SAM lowest at -12.7%
Twenty-One Day Return: KDP highest at -5.8%; SAM lowest at -14.9%
may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you'll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While DEO stock may see higher levels, the Covid-19 crisis has created many pricing discontinuities, which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Keurig Dr. Pepper vs. ACM Research.
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 Jun 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
DEO Return -8% -22% 65%
S&P 500 Return 0% -21% 84%
Trefis Multi-Strategy Portfolio -7% -25% 194%
[1] Month-to-date and year-to-date as of 6/16/2022
[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.
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The decline in DEO can largely be attributed to the weakness in the broader markets, owing to the rising interest rates, supply chain disruptions, and increasing costs. Diageo stock (NYSE: DEO) has fallen 10% in a month, while it’s down 22% year-to-date. Going by historical performance, there is a higher chance of a rise for DEO stock over the next month.
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\n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While DEO stock may see higher levels, the Covid-19 crisis has created many pricing discontinuities, which can offer attractive trading opportunities. Total [2] DEO Return -8% -22% 65% S&P 500 Return 0% -21% 84% Trefis Multi-Strategy Portfolio -7% -25% 194% [1] Month-to-date and year-to-date as of 6/16/2022 [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 stock (NYSE: DEO) has fallen 10% in a month, while it’s down 22% year-to-date.
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Of 41 instances in the last ten years that DEO stock saw a twenty-one-day fall of 10% or more, 29 resulted in DEO stock rising over the subsequent one-month period (twenty-one trading days). Total [2] DEO Return -8% -22% 65% S&P 500 Return 0% -21% 84% Trefis Multi-Strategy Portfolio -7% -25% 194% [1] Month-to-date and year-to-date as of 6/16/2022 [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 stock (NYSE: DEO) has fallen 10% in a month, while it’s down 22% year-to-date.
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This pattern suggests a higher chance of a rise in DEO stock over the next five days, ten days, and the next month. Total [2] DEO Return -8% -22% 65% S&P 500 Return 0% -21% 84% Trefis Multi-Strategy Portfolio -7% -25% 194% [1] Month-to-date and year-to-date as of 6/16/2022 [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 stock (NYSE: DEO) has fallen 10% in a month, while it’s down 22% year-to-date.
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b44f5de9-736d-4608-9d11-b9ab901a5c37
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727620.0
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2022-06-17 00:00:00 UTC
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The Zacks Analyst Blog Highlights Procter & Gamble, Sony Group, Diageo, Toyota Motor and Intuitive Surgical
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DEO
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-procter-gamble-sony-group-diageo-toyota-motor-and
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nan
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nan
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For Immediate Release
Chicago, IL – June 17, 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 Procter & Gamble Co. PG, Sony Group Corp. SONY, Diageo plc DEO, Toyota Motor Corp. TM and Intuitive Surgical, Inc. ISRG.
Here are highlights from Thursday’s Analyst Blog:
Top Analyst Reports for Procter & Gamble, Sony 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 The Procter & Gamble Co., Sony Group Corp., 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 >>>
Procter & Gamble shares have outperformed the Zacks Soap and Cleaning Materials industry over the past year (+1.6% vs. -7.9%). The company reported earnings surprises for more than three years, and revenues beat estimates for the eighth straight time in the quarter.
Results were driven by improved productivity amid cost headwinds, along with the rising demand for cleaning products. Gains from cost productivity also aided results. Management lifted its fiscal 2022 view.
It witnessed SG&A expense leverage, owing to savings from overhead and marketing expenses, and cost leverage gains due to higher sales and real estate. However, unfavorable mix, commodity cost inflation, increase in freight costs, product and packaging investments and other impacts hurt margins. It expects higher commodity and freight costs to persist in fiscal 2022.
(You an read the full research report on Procter & Gamble here >>>)
Sony shares have declined -14.5% over the past year against the Zacks Audio Video Production industry's decline of -16.1%. The company expects operating margin for the fiscal year to be likely affected by decline in Pictures and G&NS segment operating incomes.
A stiff rivalry and high costs pose concerns. However, it remains focused on the premium segment of the branded products market to maximize growth. Its music experience, 360 Reality Audio, introduced to make listeners feel immersed in sound from all directions, bodes well.
Nevertheless, sales are expected to improve due to the higher G&NS and I&SS segments. The company is also benefiting from an increase in sales in the Music, Pictures, Imaging & Sensing Solutions and Financial Services units. Strategic acquisitions and joint ventures bode well in the long haul. The company now is working towards achieving carbon neutrality ten years earlier than the prior targeted deadline of 2050.
(You an read the full research report on Sony here >>>)
Diageo shares have declined -10.9% over the past year against the Zacks Beverages - Alcohol industry's decline of -13.7%. The company is witnessing continued inflationary pressures and currency headwinds which are concerning.
Moreover, margin growth was driven by supply productivity savings and price increases, which more than offset the higher cost inflation. It provided a decent view for fiscal 2022, with organic sales momentum likely to continue in the second half of fiscal 2022.
However, continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains, which also aided the company's first-half fiscal 2022 performance. The company witnessed sales, operating margin and earnings growth in first-half fiscal 2021 driven by organic sales growth across all regions. Strong recovery in gross margin and operating cost leverage along with higher marketing investments aided organic operating margin growth.
(You an read the full research report on Diageo here >>>)
Other noteworthy reports we are featuring today include Toyota Motor Corp. and Intuitive Surgical, Inc.
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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.
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Toyota Motor Corporation (TM): Free Stock Analysis Report
Procter & Gamble Company The (PG): Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG): 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.
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Stocks recently featured in the blog include: The Procter & Gamble Co. PG, Sony Group Corp. SONY, Diageo plc DEO, Toyota Motor Corp. TM and Intuitive Surgical, Inc. ISRG. (You an read the full research report on Procter & Gamble here >>>) Sony shares have declined -14.5% over the past year against the Zacks Audio Video Production industry's decline of -16.1%. Diageo plc (DEO): Free Stock Analysis Report
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Stocks recently featured in the blog include: The Procter & Gamble Co. PG, Sony Group Corp. SONY, Diageo plc DEO, Toyota Motor Corp. TM and Intuitive Surgical, Inc. ISRG. (You an read the full research report on Procter & Gamble here >>>) Sony shares have declined -14.5% over the past year against the Zacks Audio Video Production industry's decline of -16.1%. Diageo plc (DEO): Free Stock Analysis Report
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(You an read the full research report on Procter & Gamble here >>>) Sony shares have declined -14.5% over the past year against the Zacks Audio Video Production industry's decline of -16.1%. Stocks recently featured in the blog include: The Procter & Gamble Co. PG, Sony Group Corp. SONY, Diageo plc DEO, Toyota Motor Corp. TM and Intuitive Surgical, Inc. ISRG. Diageo plc (DEO): Free Stock Analysis Report
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Stocks recently featured in the blog include: The Procter & Gamble Co. PG, Sony Group Corp. SONY, Diageo plc DEO, Toyota Motor Corp. TM and Intuitive Surgical, Inc. ISRG. (You an read the full research report on Procter & Gamble here >>>) Sony shares have declined -14.5% over the past year against the Zacks Audio Video Production industry's decline of -16.1%. Diageo plc (DEO): Free Stock Analysis Report
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06c08ec2-1a4b-4b4a-a76b-e0fb6cfb024c
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727621.0
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2022-06-16 00:00:00 UTC
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Top Analyst Reports for Procter & Gamble, Sony & Diageo
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DEO
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https://www.nasdaq.com/articles/top-analyst-reports-for-procter-gamble-sony-diageo
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nan
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nan
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Thursday, June 16, 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 Procter & Gamble Co. (PG), Sony Group Corp. (SONY), 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 >>>
Procter & Gamble shares have outperformed the Zacks Soap and Cleaning Materials industry over the past year (+1.6% vs. -7.9%). The company reported earnings surprise for more than three years, and revenues beat estimates for the eighth straight time in the quarter.
Results were driven by improved productivity amid cost headwinds, along with the rising demand for cleaning products. Gains from cost productivity also aided results. Management lifted its fiscal 2022 view.
It witnessed SG&A expense leverage, owing to savings from overhead and marketing expenses, and cost leverage gains due to higher sales and real estate. However, unfavorable mix, commodity cost inflation, increase in freight costs, product and packaging investments and other impacts hurt margins. It expects higher commodity and freight costs to persist in fiscal 2022.
(You an read the full research report on Procter & Gamble here >>>)
Sony shares have declined -14.5% over the past year against the Zacks Audio Video Production industry’s decline of -16.1%. The company expects operating margin for the fiscal year to be likely affected by decline in Pictures and G&NS segment operating incomes.
A stiff rivalry and high costs pose as concerns. However, it remains focused on the premium segment of the branded products market to maximize growth. Its music experience, 360 Reality Audio, introduced to make listeners feel immersed in sound from all directions, bodes well.
Nevertheless, sales are expected to improve due to the higher G&NS and I&SS segments. The company is also benefiting from an increase in sales in the Music, Pictures, Imaging & Sensing Solutions and Financial Services units. Strategic acquisitions and joint ventures bode well in the long haul. The company now is working towards achieving carbon neutrality ten years earlier than prior targeted deadline of 2050.
(You an read the full research report on Sony here >>>)
Diageo shares have declined -10.9% over the past year against the Zacks Beverages - Alcohol industry’s decline of -13.7%. The company is witnessing continued inflationary pressures and currency headwinds which are concerning.
Moreover, margin growth was driven by supply productivity savings and price increases, which more than offset the higher cost inflation. It provided a decent view for fiscal 2022, with organic sales momentum likely to continue in the second half of fiscal 2022.
However, continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains, which also aided the company’s first-half fiscal 2022 performance. The company witnessed sales, operating margin and earnings growth in first-half fiscal 2021 driven by organic sales growth across all regions. Strong recovery in gross margin and operating cost leverage along with higher marketing investments aided organic operating margin growth.
(You an read the full research report on Diageo here >>>)
Other noteworthy reports we are featuring today include Toyota Motor Corp. (TM), Petroleo Brasileiro (PBR) and Intuitive Surgical, Inc. (ISRG).
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
High Demand & Productivity Plan Drives P&G's (PG) Growth
SONY to Gain from Brand Focus & Improving G&NS Segment Sales
Strength in North America to Drive Diageo's (DEO) Top Line
Featured Reports
EV Push & Product Growth to Aid Toyota (TM) Amid High Cost
Per the Zacks analyst, Toyota's top line will gain from an intensive electrification push and portfolio expansion. Yet, commodity cost inflation and soaring R&D costs are likely to dent profits.
Intuitive Surgical (ISRG) Rides on a Strong Robotics Suite
The Zacks analyst is upbeat about Intuitive Surgical's strength in robot-based da Vinci surgical system despite its operation in a highly competitive market.
Freight Revenues Bail out Canadian Pacific (CP), Costs Hurt
The Zacks analyst is impressed with the uptick in freight revenues. Escalated costs are, however, hurting the bottom line.
Robust Revenues Aid O'Reilly (ORLY), High Debt Hurts
Per the Zacks analyst, O'Reilly gains from strength in revenues year-over-year led by e-commerce and store expansion efforts. However, an elevated leverage of 95% is concerning
Electronic Arts (EA) Benefits From Solid Gaming Portfolio
Per the Zacks analyst, Electronic Arts' top line benefits from a burgeoning user base on the back of a sturdy gaming portfolio.
Improving Premiums Aid Arch Capital (ACGL), Cat loss Ail
Per the Zacks analyst, Arch Capital benefits from its diverse product and service portfolio that in turn has been fueling premiums. However, exposure to cat loss inducing underwriting volatility ails.
U.S. Budget to Aid TransDigm (TDG) Amid Weak Travel Demand
Per the Zacks analyst, expansionary budgetary policy adopted by the U.S. administration should benefit TransDigm. Yet poor demand for international travel might continue to hurt the stock.
New Upgrades
Petrobras (PBR) Aided by Brazil's Pre-Salt Oil Reserves
The Zacks analyst believes that Petrobras' stake in Brazil's huge pre-salt oil reserves puts it in an enviable position to maintain an impressive production growth profile for years to come.
Enterprise (EPD) Banks On Its $4.6B Key Midstream Projects
Per the Zacks analyst, Enterprise will generate additional fee-based revenues from its $4.6-billion key midstream projects under construction.
Signet (SIG) to Keep Gaining From Omni-Channel Capabilities
Per Zacks analyst, Signet is integrating physical stores with advanced virtual experiences through data-driven in-store consultations, and services like buy online pickup in-store and curbside options
New Downgrades
Dismal Traffic & High Costs Hurt Yum China's (YUMC) Prospects
Per the Zacks analyst, Yum China has been witnessing elevated costs owing to higher inflation in commodity, wage and delivery costs. Also, decline in traffic from pre-pandemic levels is a concern.
Soft Comps Performance to Hurt Five Below's (OLLI) Sales
Per the Zacks analyst, soft comparable sales performance may hurt Five Below's top line. The metric slid 3.6% in the first quarter. Management expects 2-5% decline in second-quarter comparable sales.
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
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Toyota Motor Corporation (TM): Free Stock Analysis Report
Petroleo Brasileiro S.A. Petrobras (PBR): Free Stock Analysis Report
Procter & Gamble Company The (PG): Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG): 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read High Demand & Productivity Plan Drives P&G's (PG) Growth SONY to Gain from Brand Focus & Improving G&NS Segment Sales Strength in North America to Drive Diageo's (DEO) Top Line Featured Reports EV Push & Product Growth to Aid Toyota (TM) Amid High Cost Per the Zacks analyst, Toyota's top line will gain from an intensive electrification push and portfolio expansion. Today's Research Daily features new research reports on 16 major stocks, including The Procter & Gamble Co. (PG), Sony Group Corp. (SONY), and Diageo plc (DEO). (You an read the full research report on Procter & Gamble here >>>) Sony shares have declined -14.5% over the past year against the Zacks Audio Video Production industry’s decline of -16.1%.
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Today's Research Daily features new research reports on 16 major stocks, including The Procter & Gamble Co. (PG), Sony Group Corp. (SONY), and Diageo plc (DEO). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read High Demand & Productivity Plan Drives P&G's (PG) Growth SONY to Gain from Brand Focus & Improving G&NS Segment Sales Strength in North America to Drive Diageo's (DEO) Top Line Featured Reports EV Push & Product Growth to Aid Toyota (TM) Amid High Cost Per the Zacks analyst, Toyota's top line will gain from an intensive electrification push and portfolio expansion. (You an read the full research report on Procter & Gamble here >>>) Sony shares have declined -14.5% over the past year against the Zacks Audio Video Production industry’s decline of -16.1%.
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(You an read the full research report on Procter & Gamble here >>>) Sony shares have declined -14.5% over the past year against the Zacks Audio Video Production industry’s decline of -16.1%. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read High Demand & Productivity Plan Drives P&G's (PG) Growth SONY to Gain from Brand Focus & Improving G&NS Segment Sales Strength in North America to Drive Diageo's (DEO) Top Line Featured Reports EV Push & Product Growth to Aid Toyota (TM) Amid High Cost Per the Zacks analyst, Toyota's top line will gain from an intensive electrification push and portfolio expansion. Today's Research Daily features new research reports on 16 major stocks, including The Procter & Gamble Co. (PG), Sony Group Corp. (SONY), and Diageo plc (DEO).
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Today's Research Daily features new research reports on 16 major stocks, including The Procter & Gamble Co. (PG), Sony Group Corp. (SONY), and Diageo plc (DEO). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read High Demand & Productivity Plan Drives P&G's (PG) Growth SONY to Gain from Brand Focus & Improving G&NS Segment Sales Strength in North America to Drive Diageo's (DEO) Top Line Featured Reports EV Push & Product Growth to Aid Toyota (TM) Amid High Cost Per the Zacks analyst, Toyota's top line will gain from an intensive electrification push and portfolio expansion. (You an read the full research report on Procter & Gamble here >>>) Sony shares have declined -14.5% over the past year against the Zacks Audio Video Production industry’s decline of -16.1%.
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cfbcf6f6-7ded-4378-813c-274d7de16cf6
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727622.0
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2022-06-13 00:00:00 UTC
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Diageo Enters Oversold Territory (DEO)
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DEO
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https://www.nasdaq.com/articles/diageo-enters-oversold-territory-deo
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nan
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nan
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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 29.5, after changing hands as low as $171.21 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 33.9. A bullish investor could look at DEO's 29.5 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 $171.21 per share, with $223.14 as the 52 week high point — that compares with a last trade of $172.97.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 29.5, after changing hands as low as $171.21 per share. A bullish investor could look at DEO's 29.5 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 $171.21 per share, with $223.14 as the 52 week high point — that compares with a last trade of $172.97.
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A bullish investor could look at DEO's 29.5 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 $171.21 per share, with $223.14 as the 52 week high point — that compares with a last trade of $172.97. In trading on Monday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 29.5, after changing hands as low as $171.21 per share.
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In trading on Monday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 29.5, after changing hands as low as $171.21 per share. A bullish investor could look at DEO's 29.5 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 $171.21 per share, with $223.14 as the 52 week high point — that compares with a last trade of $172.97.
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In trading on Monday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 29.5, after changing hands as low as $171.21 per share. A bullish investor could look at DEO's 29.5 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 $171.21 per share, with $223.14 as the 52 week high point — that compares with a last trade of $172.97.
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f81a3526-d89f-49ec-bc32-54ebac562e51
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727623.0
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2022-06-09 00:00:00 UTC
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Diageo plc - ADR Shares Approach 52-Week Low - Market Mover
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DEO
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https://www.nasdaq.com/articles/diageo-plc-adr-shares-approach-52-week-low-market-mover
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nan
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nan
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Diageo plc - ADR (DEO) shares closed today at 1.0% above its 52 week low of $174.15, giving the company a market cap of $100B. The stock is currently down 19.4% year-to-date, down 7.8% over the past 12 months, and up 65.4% over the past five years. This week, the Dow Jones Industrial Average fell 4.5%, and the S&P 500 fell 5.1%.
Trading Activity
Trading volume this week was 39.5% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.7.
Technical Indicators
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Diageo plc - ADR (DEO) shares closed today at 1.0% above its 52 week low of $174.15, giving the company a market cap of $100B. This week, the Dow Jones Industrial Average fell 4.5%, and the S&P 500 fell 5.1%. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.7.
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Diageo plc - ADR (DEO) shares closed today at 1.0% above its 52 week low of $174.15, giving the company a market cap of $100B. This week, the Dow Jones Industrial Average fell 4.5%, and the S&P 500 fell 5.1%. Trading Activity Trading volume this week was 39.5% higher than the 20-day average.
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Diageo plc - ADR (DEO) shares closed today at 1.0% above its 52 week low of $174.15, giving the company a market cap of $100B. This week, the Dow Jones Industrial Average fell 4.5%, and the S&P 500 fell 5.1%. Trading Activity Trading volume this week was 39.5% higher than the 20-day average.
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Diageo plc - ADR (DEO) shares closed today at 1.0% above its 52 week low of $174.15, giving the company a market cap of $100B. The stock is currently down 19.4% year-to-date, down 7.8% over the past 12 months, and up 65.4% over the past five years. This week, the Dow Jones Industrial Average fell 4.5%, and the S&P 500 fell 5.1%.
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57292deb-773b-48da-b694-2651e2557ac6
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727624.0
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2022-06-07 00:00:00 UTC
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7 Safe Retirement Stocks to Buy So You Can Sleep at Night
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DEO
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https://www.nasdaq.com/articles/7-safe-retirement-stocks-to-buy-so-you-can-sleep-at-night
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When picking safe retirement stocks to buy, it’s important to prioritize a few traits. A company should have a strong balance sheet to keep it secure during economic downturns. It should pay a dividend, and have a history of raising it at least as quickly as the inflation rate so that your dividend income keeps up with expenses during retirement. Also, the company should have a strong competitive moat or other inherent advantages to ensure that it remains a dominant player in its industry for years to come.
The 7 Best Electric Vehicle Stocks to Buy in June
While smaller or more speculative companies may offer greater upside, an investor focused on retirement is generally seeking to make solid returns while avoiding significant drawdown risk. Once you have made enough to leave the workforce, a top priority is on making sure that the nest egg remains healthy while generating enough returns and income to support a fruitful retirement. These seven safe retirement stocks fit the bill today.
Ticker Company Current Price
DEO Diageo $187.53
MKC McCormick & Company $89.63
XOM Exxon Mobil $99.25
LMT Lockheed Martin $445.22
MDT Medtronic $95.79
NKE Nike $120.25
TXN Texas Instruments $170.27
Diageo (DEO)
Diageo (NYSE:DEO) is the world’s second-largest alcoholic spirits company. It is known for a wide variety of brands including Smirnoff, Johnnie Walker, Crown Royal, Captain Morgan, Baileys and Guinness beer.
Diageo has existed in its present form since the 1990s, when the Guinness beer business merged with the Grand Metropolitan spirits company. However, the underlying brands have existed far longer than that. Guinness, for example, was founded in 1759. That’s the sort of longevity that ensures that the company can keep your retirement dividends flowing.
Diageo is a great business because of its industry. Alcohol is a high profit margin product with steady consumption patterns regardless of political and economic developments. Diageo has raised its dividend each and every year dating back to when the company was formed. Shares have also dropped to below 25 times earnings with the recent selloff, making this a fine entry point.
McCormick & Company (MKC)
McCormick & Company (NYSE:MKC) is by far the world’s largest spice company, outselling its nearest rival at least fivefold on an annual basis. The company has a strong competitive advantage for its sheer size. Most grocery stores don’t want to carry many brands of products such as black pepper or oregano, giving McCormick a natural monopoly. McCormick is also the largest player in generic store brands of spices as well.
In addition to the core spice business, McCormick has moved heavily into salsas and hot sauces. Recent purchases such as Frank’s Red Hot and Cholula have supercharged McCormick’s growth trajectory. Consumers are increasingly looking for novel and diverse flavors, and McCormick is a major winner in that trend.
7 Popular Penny Stocks to Avoid at All Costs
MKC stock is generally not cheap, and that remains true now. People pay up for quality, after all. However, after a recent 10% decline in the stock price, shares are back under 30 times earnings. That’s a reasonable entry point historically for McCormick, given its solid growth rate and impeccable dividend history; the company has raised its dividend payout 36 years in a row.
Exxon Mobil (XOM)
The oil and gas industry is back. After many obituaries were written for the sector in 2020, it turns out that these reports were premature. The invasion of Ukraine has highlighted the precarious nature of the world’s energy supply. While renewables will eventually shoulder the load, they’re not yet there in terms of being able to supplant oil and gas.
With gasoline prices hitting record highs, oil majors are in a uniquely powerful position. Government regulations and environmental pressure have made it hard to drill for oil or build new pipelines and refineries in recent years. This has created a massive structural deficit of energy infrastructure.
The owners of existing assets, thus, have a winning hand. Exxon Mobil (NYSE:XOM) is now producing record profits and cash flows. That has allowed it to resume boosting its already generous dividend; XOM stock currently yields 3.6%. While energy can be a boom and bust industry, Exxon Mobil’s diversified operations across oil production, transportation, refining and chemicals make it much more stable and reliable for retirees than the average energy outfit.
Lockheed Martin (LMT)
After the pullout from Afghanistan last year, some investors gave up on the defense stocks. It seemed like America might pull back a bit from international engagement. However, the invasion of Ukraine has highlighted the ongoing need for national defense capabilities. In addition to the U.S. buying more armaments, foreign powers such as Germany and Japan have sharply increased their military budgets.
This has led to an upturn in the stock prices for firms such as Lockheed Martin (NYSE:LMT). Lockheed, in particular, has inked several new contracts for fighter jets this spring. With LMT stock up 25% year-to-date, it might seem too late to buy. It’s not, though.
7 Best Tech Stocks to Buy Amid the Market Turmoil
In fact, shares are still selling for less than 17 times earnings. And defense contractor earnings are high quality, as they are backed by decades-long contracts paid for by government spending. This is the sort of stable reliable business that a retiree can count on.
Medtronic (MDT)
One of the biggest demographic trends in America is the aging of the population. And as retirees know, the cost of medical care constantly rises. The best way to play defense against these inexorable forces is to own stocks in the healthcare industry.
Medical device makers such as Medtronic (NYSE:MDT) are uniquely well-positioned to protect investors from rising healthcare costs. Medtronic is a large pureplay device maker focused on cardiac care, diabetes, neurological conditions and spinal disorders among other issues. As more of the population becomes elderly, demand for these sorts of life-enhancing products will increase.
MDT stock is near its 52-week lows at the moment. It was slowed down by a reduction in the tempo of elective surgeries with the pandemic. And now inflation and supply chain issues are running their course. Regardless, shares go for less than 18 times forward earnings and offer a near-3% dividend yield.
Nike (NKE)
For global consumer brand names, Nike (NYSE:NKE) is right up there. The company’s footwear and athletic apparel can be found on almost every corner of the planet. That has been something of a headwind in 2022. Nike is pulling out of the Russian market this year, and it also faces a potential sales slowdown in China as that country remains under more strict Covid-19 restrictions.
7 Cheap Growth Stocks That Won't Stay That Way for Long
Throw in global supply chain issues and inflation, and NKE stock has dropped 30% year-to-date. That’s an overreaction, however. Shares are now selling for less than 30 times forward earnings, and analysts see those earnings growing at 20% a year in 2023 and 2024 once the current headwinds let up. And while Nike only pays a 1% dividend today, it has grown that dividend at a double-digit compounded rate in recent years, making this a strong growth and income play.
Texas Instruments (TXN)
It can be hard to pick technology companies as part of a lower-risk income-generating portfolio. After all, technology changes quickly, and also many tech firms don’t pay dividends.
Texas Instruments (NASDAQ:TXN) is a great solution to these two issues, however. The semiconductor company makes thousands of different niche analog chips. These serve specialized functions such as converting real-world weather information into digital data that machines such as autonomous vehicles can use. These sorts of specialty chips have a much longer lifespan than, say, a semiconductor for the latest iPhone or gaming device.
By serving durable industrial markets, Texas Instruments faces much less competition than in consumer electronics. In addition, Texas Instruments’ management makes all its decisions with a focus on boosting is free cash flow. This cash generation, in turn, is shared with investors via aggressive dividend hikes. Shares currently yield 2.6% and, impressively, the company has grown its dividend at a 19% per year compounded rate over the past five years.
On the date of publication, Ian Bezek held a long position in DEO, MKC, TXN, XOM, LMT, MDT and NKE stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Safe Retirement Stocks to Buy So You Can Sleep at Night 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.
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On the date of publication, Ian Bezek held a long position in DEO, MKC, TXN, XOM, LMT, MDT and NKE stock. Ticker Company Current Price DEO Diageo $187.53 MKC McCormick & Company $89.63 XOM Exxon Mobil $99.25 LMT Lockheed Martin $445.22 MDT Medtronic $95.79 NKE Nike $120.25 TXN Texas Instruments $170.27 Diageo (DEO) Diageo (NYSE:DEO) is the world’s second-largest alcoholic spirits company. The 7 Best Electric Vehicle Stocks to Buy in June While smaller or more speculative companies may offer greater upside, an investor focused on retirement is generally seeking to make solid returns while avoiding significant drawdown risk.
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Ticker Company Current Price DEO Diageo $187.53 MKC McCormick & Company $89.63 XOM Exxon Mobil $99.25 LMT Lockheed Martin $445.22 MDT Medtronic $95.79 NKE Nike $120.25 TXN Texas Instruments $170.27 Diageo (DEO) Diageo (NYSE:DEO) is the world’s second-largest alcoholic spirits company. On the date of publication, Ian Bezek held a long position in DEO, MKC, TXN, XOM, LMT, MDT and NKE stock. And while Nike only pays a 1% dividend today, it has grown that dividend at a double-digit compounded rate in recent years, making this a strong growth and income play.
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Ticker Company Current Price DEO Diageo $187.53 MKC McCormick & Company $89.63 XOM Exxon Mobil $99.25 LMT Lockheed Martin $445.22 MDT Medtronic $95.79 NKE Nike $120.25 TXN Texas Instruments $170.27 Diageo (DEO) Diageo (NYSE:DEO) is the world’s second-largest alcoholic spirits company. On the date of publication, Ian Bezek held a long position in DEO, MKC, TXN, XOM, LMT, MDT and NKE stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips When picking safe retirement stocks to buy, it’s important to prioritize a few traits.
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Ticker Company Current Price DEO Diageo $187.53 MKC McCormick & Company $89.63 XOM Exxon Mobil $99.25 LMT Lockheed Martin $445.22 MDT Medtronic $95.79 NKE Nike $120.25 TXN Texas Instruments $170.27 Diageo (DEO) Diageo (NYSE:DEO) is the world’s second-largest alcoholic spirits company. On the date of publication, Ian Bezek held a long position in DEO, MKC, TXN, XOM, LMT, MDT and NKE stock. Exxon Mobil (XOM) The oil and gas industry is back.
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61eb5d4e-d4f2-4f0d-945c-2006f468abec
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727625.0
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2022-06-02 00:00:00 UTC
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3 Beer Stocks That Provide Shareholders With Recession-Proof Dividends
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DEO
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https://www.nasdaq.com/articles/3-beer-stocks-that-provide-shareholders-with-recession-proof-dividends
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
We believe that investors should strive to own the best names in a particular sector as these companies often have competitive advantageous that will allow it to outperform the competition.
One industry we find appealing is the beer industry, which tends to hold up well even during recessionary environments. Not all beer companies are created equal, so investors should identify the top names in the industry before making an investment decision.
This article will examine three of our favorite beer stocks.
Ticker Company Price
STZ Constellation Brands $243.70
DEO Diageo $187.37
TAP Molson Coors $53.59
Beer Stocks for Dividends: Constellation Brands (STZ)
Source: IgorGolovniov / Shutterstock
Our first pick among beer stocks is Constellation Brands, a leading international alcoholic beverage company. The company is valued at nearly $46 billion and has produced revenue of almost $9 billion over the last year.
Over time, Constellation Brands has become a dominant force in the beer industry. The company’s product portfolio includes Corona, Modelo Especial, Modelo Negra and Pacifico. These products, along with a craft beer lineup, have enabled Constellation Brands to become the third largest beer company in the U.S. and the largest seller of import beers in the country.
7 Stocks to Buy and Hold Forever in This Bear Market
In addition, Constellation Brands often attempts to expand its reach through product innovation, which includes products like Corona Refresca. Modelo Especial is the top grossing imported beer, so the company will launch several new additions to the Modelo lineup as it tries to capitalize on the strength of this brand. New beers to the lineup include Modelo Oro, a premium light beer, and Modelo Ranch Water, a spiked sparkling water.
Constellation Brands has a heavy presence in more than just beer. The company holds many leading wine and spirits brands as well. After selling off non-premium brands, Constellation Brands holds just premium brands names in its portfolio. This includes Robert Mondavi and Kim Crawford in wine and SVEDKA Vodka, Casa Noble Tequila, and High West Whiskey in spirits. The reconfiguration of the portfolio has the company well positioned to lead the premium industry in both wine and spirts.
The company is also looking beyond traditional alcoholic beverages to fuel growth. For example, Constellation Brands has a controlling stake in Canopy Growth Corporation (NASDAQ:CGC). While the future of cannabis infused beverages in the domestic market is murky, Constellation Brands’ stake in one of the top companies in the industry does provide yet another potential avenue for growth.
Business strength has led to excellent results in the business as revenue has nearly tripled over the last decade. Earnings-per-share have increased with a compound annual growth rate of nearly 19% for the last decade.
Despite this long-term success, we project that Constellation Brands can produce earnings growth of 5.5% per year for the next half-decade. This growth rate takes into account the quality of the firm’s product portfolio with the fact that earnings are starting from a high base.
Exceptional business performance has enabled Constellation Brands to increase its capital returns to its shareholders. A dividend was initiated in fiscal year 2016 and it has a CAGR of 9.7% over the last five years. Shares currently yield about 1.3%.
Diageo (DEO)
Source: IgorGolovniov / Shutterstock.com
Our next pick for beer stocks is Diageo, a company that can trace its roots back to 17th century and the oldest family of Scotch whisky distillers. The $107 billion company has generated $16 billion of revenue over the last year.
Diageo’s beer lineup includes Guinness, the top selling stout beer in the world and one of the most iconic brands in the alcohol space. The company has used the popularity of Guinness to bring additional products to market, including Guinness blonde.
Like Constellation Brands, Diageo has an envious portfolio of products aside from just beer. The company has some of the best-selling spirits brands in the world, including Baileys, Captain Morgan, Crown Royal, Johnnie Walker, Ketel One and Tanqueray.
The global alcoholic beverage market is highly fragmented, which could provide the company with ample opportunity to grow its business. Presently, Diageo has a 4% market share, but aims to increase its positioning to 6% by the end of the decade. The company is on track to meet this goal due to its brands.
Helping to achieve this market share target is Diageo’s business in emerging markets. Key markets for the company include China, India and Latin America. The company’s presence in emerging markets should provide tailwinds over time. For example, Diageo experienced organic sales growth of 45%, 23% and 13% in Latin America, Africa and Asia Pacific/China in the first half of 2022. This was ahead of its more developed markets.
Results for the U.K. based company will always be subject to currency exchange rates, but U.S. investors have still seen solid results. Though top-line results are minimal for Diageo over the last decade, revenue has compounded at a rate of 3% annually since 2017. Bottom-line growth has been slightly more robust over this period of time as earnings-per-share have a five- and 10-year CAGR of 7.2% and 4.2%, respectively.
We estimate that the company can grow earnings-per-share at a rate of 8% per year for the next five years given the popularity of its product lineup.
Diageo distributes dividends twice per year to shareholders. The company has raised its dividend for the past eight years in local currency. U.S. shareholders have seen an average increase of 4.2% annually since 2012. Diageo yields 2.2%.
Beer Stocks for Dividends: Molson Coors (TAP)
Source: OleksandrShnuryk / Shutterstock.com
Our final pick for beer stocks is Molson Coors, which has a market capitalization of $11.7 billion and generated revenue of $10.6 billion over the last 12 months.
Formerly known as Molson Coors Brewing Company, Molson Coors has a rich history that dates back almost 150 years. The company is one of the largest brewers in the country and includes leading brands such as Coors Light, Molson Canadian, Miller Lite, and Coors Banquet. These are some of the most popular beer names in the country, giving Molson Coors a significant competitive edge over peers.
7 Undervalued Large-Cap Stocks to Buy for June
Recently, however, the traditional beer industry has faced headwinds as younger consumers have trended toward craft beer. The industry giants were slow to react to these changing habits, but Molson Coors is taking steps to improve its standing in the craft beer business. For example, the company’s Blue Moon lineup has become very popular in North America, with the brand owning a high single-digit market share for the region.
Molson Coors also made several acquisitions over the past few years that have brought additional craft beers and ciders into the fold. The company added Aspall Brewing, a leading maker of premium ciders, in 2018. The company followed this acquisition up by buying Atwater Brewery, the largest craft brewery in Detroit, in 2020.
Molson Coors sales more than doubled over the last decade, though this is skewed by the addition of MillerCoors in 2016. The last five years saw revenue fall nearly 2% per year. Bottom-line performance was nearly as poor as earnings-per-share are up marginally since 2017.
However, the company has stopped making certain low-premium names, including High Life Light and Keystone Ice, that weren’t resonating with customers in an effort to focus on its core brands. This, combined with a heavier emphasis away from legacy beer names, should provide some lift to results going forward. We project that Molson Coors can grow earnings-per-share by 4% annually through 2027.
Molson Coors suspended its dividend in mid-2020 as the company faced the fallout from the Covid-19 pandemic. The company did reinstate in late-2021, albeit at a lower amount than its previous payment. Given its recent actions with regards to the dividend, investors might be wary of owning Molson Coors. The good news is that shareholders did receive a 10.5% increase in the payment earlier this year. Shares yield 1.9% at the moment.
Final Thoughts
The beer industry has undergone changes over the past few years, with new companies becoming leaders in the category. The business is fairly recession-resistant and has proven successful over the long-term.
Constellation Brands, Diageo and Molson Coors are three of our favorite names in the industry. The first two have captured significant market share and also offer products beyond just beer that are leaders in their own categories. Molson Coors continues to focus primarily on beer and has faced some challenges due to changing consumer tastes. That said, the company has made strides to catch up and its legacy beer business continues to hold a top spot.
All three names offer a dividend yield near or above the average yield of the S&P 500.
For investors looking for growth and income from the beer industry, any of these names could be a solid addition to their portfolio.
On the date of publication, Bob Ciura did not have (either directly or indirectly) positions in any of the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 3 Beer Stocks That Provide Shareholders With Recession-Proof Dividends 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.
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Ticker Company Price STZ Constellation Brands $243.70 DEO Diageo $187.37 TAP Molson Coors $53.59 Beer Stocks for Dividends: Constellation Brands (STZ) Source: IgorGolovniov / Shutterstock Our first pick among beer stocks is Constellation Brands, a leading international alcoholic beverage company. Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Our next pick for beer stocks is Diageo, a company that can trace its roots back to 17th century and the oldest family of Scotch whisky distillers. While the future of cannabis infused beverages in the domestic market is murky, Constellation Brands’ stake in one of the top companies in the industry does provide yet another potential avenue for growth.
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Ticker Company Price STZ Constellation Brands $243.70 DEO Diageo $187.37 TAP Molson Coors $53.59 Beer Stocks for Dividends: Constellation Brands (STZ) Source: IgorGolovniov / Shutterstock Our first pick among beer stocks is Constellation Brands, a leading international alcoholic beverage company. Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Our next pick for beer stocks is Diageo, a company that can trace its roots back to 17th century and the oldest family of Scotch whisky distillers. The company’s product portfolio includes Corona, Modelo Especial, Modelo Negra and Pacifico.
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Ticker Company Price STZ Constellation Brands $243.70 DEO Diageo $187.37 TAP Molson Coors $53.59 Beer Stocks for Dividends: Constellation Brands (STZ) Source: IgorGolovniov / Shutterstock Our first pick among beer stocks is Constellation Brands, a leading international alcoholic beverage company. Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Our next pick for beer stocks is Diageo, a company that can trace its roots back to 17th century and the oldest family of Scotch whisky distillers. These products, along with a craft beer lineup, have enabled Constellation Brands to become the third largest beer company in the U.S. and the largest seller of import beers in the country.
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Ticker Company Price STZ Constellation Brands $243.70 DEO Diageo $187.37 TAP Molson Coors $53.59 Beer Stocks for Dividends: Constellation Brands (STZ) Source: IgorGolovniov / Shutterstock Our first pick among beer stocks is Constellation Brands, a leading international alcoholic beverage company. Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Our next pick for beer stocks is Diageo, a company that can trace its roots back to 17th century and the oldest family of Scotch whisky distillers. Beer Stocks for Dividends: Molson Coors (TAP) Source: OleksandrShnuryk / Shutterstock.com Our final pick for beer stocks is Molson Coors, which has a market capitalization of $11.7 billion and generated revenue of $10.6 billion over the last 12 months.
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9dce6452-356a-4add-8492-286634dba990
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727626.0
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2022-05-31 00:00:00 UTC
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Top Research Reports for IBM, Goldman Sachs & Diageo
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DEO
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https://www.nasdaq.com/articles/top-research-reports-for-ibm-goldman-sachs-diageo
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nan
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Tuesday, May 31, 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 IBM (IBM), The Goldman Sachs Group, Inc. (GS) 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 >>>
IBM Shares have outperformed the Zacks Computer - Integrated Systems industry over the past year (+5.6% vs. -3.3%), with strong demand for hybrid cloud and AI, driving growth in Software and Consulting. Synergies from the Red Hat buyout are bolstering its competitive position in the hybrid cloud market.
It is likely to gain from the robust adoption and broad-based availability of IBM Blockchain World Wire — a blockchain-driven global payments network aimed at accelerating and optimizing cross-border payments. A combination of a better business mix, improving operating leverage and higher investments will likely drive future growth opportunities.
However, stiff competition in the cloud computing market from the likes of Amazon Web Services and Microsoft Azure remains an overhang. Higher debt levels amid extensive restructuring activities pose a concern. High integration risk from continuous acquisition spree is another headwind.
(You can read the full research report on International Business Machines here >>>)
Goldman Sachs shares have declined -13.2% over the past year against the Zacks Financial - Investment Bank industry’s decline of -14.1%. The Zacks analyst believes that any normalization of trading business is likely to hurt the Global Market segment’s revenues in the upcoming period. Goldman’s persistently rising expense base will hinder the bottom line. Also, legal hassles and higher dependence on overseas revenues are worrisome.
However, the company’s strength in wealth management and consumer banking businesses are tailwinds, As part of its inorganic moves, it will acquire robo-advisor NextCapital Group. Robust client engagement, solid position in announced and completed mergers and acquisitions (M&As) globally and investment banking (IB) backlog are likely to keep driving its IB revenues.
(You can read the full research report on Goldman Sachs here >>>)
Shares of Diageo have outperformed the Beverages - Alcohol industry over the past two years (+36.4% vs. +25.1%). The company’s continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains, which also aided the company’s first-half fiscal 2022 performance. The company witnessed sales, operating margin and earnings growth in first-half fiscal 2021 driven by organic sales growth across all regions. Strong recovery in gross margin and operating cost leverage along with higher marketing investments aided organic operating margin growth.
Moreover, margin growth was driven by supply productivity savings and price increases, which more than offset the higher cost inflation. It provided a decent view for fiscal 2022, with organic sales momentum likely to continue in the second half of fiscal 2022. However, continued inflationary pressures and currency headwinds are concerning.
(You can read the full research report on Diageo here >>>)
Other noteworthy reports we are featuring today include ServiceNow, Inc. (NOW), The Southern Company (SO), and The Progressive Corporation (PGR).
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
IBM Rides on Solid Hybrid Cloud, AI & Blockchain Adoption
Organic Growth Aids Goldman Sachs (GS), Cost Woes Prevail
Diageo's (DEO) Focus on Premium Brands to Boost Growth
Featured Reports
Unfavorable Forex & Stiff Competition Hurts ServiceNow (NOW)
Per the Zacks analyst, ServiceNow is suffering from inflation, unfavorable forex and challenging macro-economic environment. Stiff Competition is a headwind for the company???s prospects.
Southern Company (SO) Buoyed by Regulated Customer Growth
The Zacks analyst believes that an increase in Southern's regulated business customer base will support its revenue growth but is concerned over timing and cost overrun of the Vogtle project.
Progressive's (PGR) Solid Policies in Force Aid, Cat Loss Ail
Per the Zacks analyst, Progressive is set to grow on, solid policies in force, competitive rates and leadership position. However, cat loss exposure inducing underwriting volatility ails.
Recent Drug Approvals Aid Bayer (BAYRY), Stiff Rivalry a Woe
Per the Zacks analyst, Bayer has undertaken several initiatives to strengthen its portfolio. However, competition from generic threats remains a concern.
Order Growth Aids General Dynamics (GD), Sanction Impacts Hit
Per the Zacks Analyst, order flow for its products boost General Dynamics' revenue generation prospects. Yet, the Russia-Ukraine conflict and resultant global sanctions may hurt its growth prospects.
Cadence (CDNS) Benefits from Diversified Product Portfolio
Per the Zacks analyst, Cadence's performance is gaining from solid demand for the company's diversified product portfolio, Frequent new product launches will further drive the growth momentum.
U.S. Pharmaceutical Arm Aids McKesson (MCK), High Costs Ail
Per the Zacks analyst, solid prospects in the core U.S. Pharmaceutical and Specialty Solutions unit, fueled by market growth, continue to aid McKesson. But rise in corporate expenses raise concern.
New Upgrades
Callon Petroleum (CPE) Banks on Oil-Rich Midland Basin
According to the Zacks analyst, Callon Petroleum's strong footprint in oil-rich Midland and Delaware basins has brightened the firm's production outlook.
Green Dot (GDOT) Rides on BaaS Platform, Walmart Partnership
The Zacks Analyst likes Green Dot's strategy to expand its addressable market using banking-as-a-service account programs. Partnership with Walmart is a key driver of its operating revenues.
JAKKS Pacific (JAKK) Rides on Solid Digitization Efforts
Per the Zacks analyst, JAKKS Pacific's increased focus on online retailing bode well. To this end, the company continues to modify its sales and logistics capabilities in order to support the same.
New Downgrades
Nu Skin (NUS) Revenues Hurt by Volatile Currency Movements
Per the Zacks analyst, Nu Skin remains troubled by adverse currency movements. The company's first-quarter revenues were hurt by currency headwinds, and are likely to bear 3-4% adverse impact in 2022.
Relatively Low Rates, Elevated Costs Hurt State Street (STT)
Per the Zacks analyst, despite the rate hike expectations this year, relatively lower interest rates will likely hurt State Street's top line in the near term. Also, elevated costs might curb profits.
Strategic Education (STRA) Ails From Lower USHE Contribution
Per the Zacks analyst, lower contributions from the U.S. Higher Education segment due to tepid enrollments and revenues per student are hurting Strategic Education.
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 Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report
Southern Company The (SO): Free Stock Analysis Report
International Business Machines Corporation (IBM): Free Stock Analysis Report
The Progressive Corporation (PGR): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
ServiceNow, Inc. (NOW): 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.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read IBM Rides on Solid Hybrid Cloud, AI & Blockchain Adoption Organic Growth Aids Goldman Sachs (GS), Cost Woes Prevail Diageo's (DEO) Focus on Premium Brands to Boost Growth Featured Reports Unfavorable Forex & Stiff Competition Hurts ServiceNow (NOW) Per the Zacks analyst, ServiceNow is suffering from inflation, unfavorable forex and challenging macro-economic environment. Today's Research Daily features new research reports on 16 major stocks, including IBM (IBM), The Goldman Sachs Group, Inc. (GS) and Diageo plc (DEO). Diageo plc (DEO): Free Stock Analysis Report
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Today's Research Daily features new research reports on 16 major stocks, including IBM (IBM), The Goldman Sachs Group, Inc. (GS) and Diageo plc (DEO). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read IBM Rides on Solid Hybrid Cloud, AI & Blockchain Adoption Organic Growth Aids Goldman Sachs (GS), Cost Woes Prevail Diageo's (DEO) Focus on Premium Brands to Boost Growth Featured Reports Unfavorable Forex & Stiff Competition Hurts ServiceNow (NOW) Per the Zacks analyst, ServiceNow is suffering from inflation, unfavorable forex and challenging macro-economic environment. Diageo plc (DEO): Free Stock Analysis Report
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read IBM Rides on Solid Hybrid Cloud, AI & Blockchain Adoption Organic Growth Aids Goldman Sachs (GS), Cost Woes Prevail Diageo's (DEO) Focus on Premium Brands to Boost Growth Featured Reports Unfavorable Forex & Stiff Competition Hurts ServiceNow (NOW) Per the Zacks analyst, ServiceNow is suffering from inflation, unfavorable forex and challenging macro-economic environment. Today's Research Daily features new research reports on 16 major stocks, including IBM (IBM), The Goldman Sachs Group, Inc. (GS) and Diageo plc (DEO). Diageo plc (DEO): Free Stock Analysis Report
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Today's Research Daily features new research reports on 16 major stocks, including IBM (IBM), The Goldman Sachs Group, Inc. (GS) and Diageo plc (DEO). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read IBM Rides on Solid Hybrid Cloud, AI & Blockchain Adoption Organic Growth Aids Goldman Sachs (GS), Cost Woes Prevail Diageo's (DEO) Focus on Premium Brands to Boost Growth Featured Reports Unfavorable Forex & Stiff Competition Hurts ServiceNow (NOW) Per the Zacks analyst, ServiceNow is suffering from inflation, unfavorable forex and challenging macro-economic environment. Diageo plc (DEO): Free Stock Analysis Report
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58046221-50b3-4105-b387-f74cd5941ebc
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727627.0
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2022-05-10 00:00:00 UTC
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Diageo is Now Oversold (DEO)
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DEO
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https://www.nasdaq.com/articles/diageo-is-now-oversold-deo
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nan
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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 Tuesday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $183.19 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 29.8 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 $175.46 per share, with $223.14 as the 52 week high point — that compares with a last trade of $184.60.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $183.19 per share. A bullish investor could look at DEO's 29.8 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 $175.46 per share, with $223.14 as the 52 week high point — that compares with a last trade of $184.60.
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A bullish investor could look at DEO's 29.8 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 $175.46 per share, with $223.14 as the 52 week high point — that compares with a last trade of $184.60. In trading on Tuesday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $183.19 per share.
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In trading on Tuesday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $183.19 per share. A bullish investor could look at DEO's 29.8 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 $175.46 per share, with $223.14 as the 52 week high point — that compares with a last trade of $184.60.
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In trading on Tuesday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $183.19 per share. A bullish investor could look at DEO's 29.8 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 $175.46 per share, with $223.14 as the 52 week high point — that compares with a last trade of $184.60.
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d0139f26-7711-40b4-b434-63eb5d7bf7bc
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727628.0
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2022-04-27 00:00:00 UTC
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Diageo Breaks Below 200-Day Moving Average - Notable for DEO
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DEO
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https://www.nasdaq.com/articles/diageo-breaks-below-200-day-moving-average-notable-for-deo
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nan
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nan
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In trading on Wednesday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $200.59, changing hands as low as $197.61 per share. Diageo plc shares are currently trading down about 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 $175.46 per share, with $223.14 as the 52 week high point — that compares with a last trade of $199.32.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $200.59, changing hands as low as $197.61 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 $175.46 per share, with $223.14 as the 52 week high point — that compares with a last trade of $199.32. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $200.59, changing hands as low as $197.61 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 $175.46 per share, with $223.14 as the 52 week high point — that compares with a last trade of $199.32. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $200.59, changing hands as low as $197.61 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 $175.46 per share, with $223.14 as the 52 week high point — that compares with a last trade of $199.32. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $200.59, changing hands as low as $197.61 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 $175.46 per share, with $223.14 as the 52 week high point — that compares with a last trade of $199.32. Diageo plc shares are currently trading down about 1% on the day.
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727629.0
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2022-04-26 00:00:00 UTC
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3 Top Consumer Staples Stocks To Watch In The Stock Market Today
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DEO
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https://www.nasdaq.com/articles/3-top-consumer-staples-stocks-to-watch-in-the-stock-market-today
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nan
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Check Out These Consumer Staples Stocks Right Now
At times of uncertainty, investors would look for safer investment options. As such, consumer staples stocks are back in focus in the stock market lately. Consumer staples refer to products and services that are deemed as essentials among consumers. This includes food and beverages, household goods, hygiene products, and recreational products such as tobacco and alcohol. Not to mention, the industry is often non-cyclical, meaning they are always in demand regardless of how the economy is performing.
As compared to other high-growth industries, consumer staples typically do not provide the same level of excitement. However, it does not mean that companies within the sector are not constantly working on their crafts. On the contrary, many companies emphasize research and development for new products that would meet the needs of consumers. For instance, Archer-Daniels-Midland (NYSE: ADM) recently invested approximately $300 million to expand its alternative protein production in Decatur. This is in response to the growing demand for alternative sources of protein among consumers today.
Elsewhere, Diageo (NYSE: DEO) continues to add new innovations to its collection of proprietary blends. Earlier this month, the company introduced its Astral Tequila, a new super-premium tequila crafted with 100% Blue Weber agave. In addition, the company’s Orphan Barrel Whiskey Distilling Co also recently announced the Fable & Folly Finest Quality Whiskey Aged 14 Years. In conclusion, consumer staples could remain a safe bet amid the stock market volatility. With that said, here are some of the top consumer staples stocks in the stock market today.
Consumer Staples Stocks To Buy [Or Sell] Before May 2022
Coca-Cola Co (NYSE: KO)
Procter & Gamble Co (NYSE: PG)
Kraft Heinz Co (NASDAQ: KHC)
Coca-Cola
Coca-Cola is among the top names in the consumer staples industry. The company’s beverages can be found anywhere around the globe. It owns and markets various beverages, such as Coca-Cola, coffee and tea, nutrition, juice, dairy, and even plant-based beverages. Despite trading sideways over the past year, KO stock had a decent start to 2022. The stock has steadily climbed by about 11% since the start of the year.
Now, investors are turning their attention to the company again as it recently announced its first-quarter financials. Coca-Cola reported net revenue of $10.5 billion, representing an increase of 16% year-over-year. Meanwhile, its earnings per share improved to $0.64, up 23% compared to the prior year’s quarter. All in all, the company was able to surpass most analysts’ estimates for the quarter. That said, these improvements are largely due to inflation-fueled price increases.
In light of this, Coca-Cola remains confident in its full-year guidance and believes it can perform well in all types of environments. Even CNBC’s Jim Cramer believes that KO stock is a viable stock to buy right now. He said, “Coca-Cola put on a clinic, showing you how a seasoned management team can overcome just about any challenge you might throw at them. That’s long-lasting strength.” With that said, do you share the same sentiment on KO stock right now?
Source: TD Ameritrade TOS
[Read More] Stock Market Today: Dow Jones, S&P 500 Fall As China Covid Woes Persist; UPS In Focus On Earnings Beat
Procter & Gamble
Procter & Gamble is a company that focuses on providing branded consumer packaged goods to consumers across the world. It operates through five segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. It offers products under brands such as Head & Shoulders, Herbal Essences, SK-II, Oral-B, Downy, and many more. Thus, it should not be surprising that PG stock is always in consideration as a top consumer staples stock.
Last week, Procter & Gamble reported its fiscal third-quarter earnings report. The company posted a net sales of $19.4 billion, an increase of 7% year-over-year. Also, its diluted net earnings per share came in at $1.33, up 6% compared to the prior year’s quarter. Safe to say, this is yet another strong quarter from Procter & Gamble with strong sales across the board. The company remains focused on productivity while improving the culture of the company as a whole. What’s more, it raised its top-line growth outlook for the year and maintained its guidance range for its earnings per share.
On top of that, the company’s OLAY North America and Pantene North America recently entered into a partnership with Walmart. The companies came together to launch new Boosters for skin and hair to meet the evolving demand and needs of consumers. What makes it stand out is that the new product allows consumers to personalize their very own routine with products that fit their needs. After all, every consumer’s desire or needs are likely to be different. Given these positive developments, would you consider adding PG stock to your portfolio?
Source: TD Ameritrade TOS
[Read More] Top Stock Market News For Today April 26, 2022
Kraft Heinz
Last but not least, we will be looking at yet another global food and beverage company, Kraft Heinz. In detail, the company manufactures and markets products such as condiments and sauces, dairy, meals, meats, coffee, and other grocery products throughout the world. Similar to many top names in the industry, KHC stock is showing resilience in times of uncertainties in the stock market. The stock has risen by 19% since the start of the year.
April has been an eventful month for Kraft thus far. The company started the month by announcing the completion of its acquisition of a majority stake in Brazilian food company Companhia Hemmer Indústria e Comércio (“Hemmer”). This acquisition will expand Kraft’s International Taste Elevation platform with its focus on condiments and sauces. Also, it will support the company’s strategy to increase its presence in other emerging markets. On the flip side, Hemmer will also be able to utilize Kraft’s distribution network to grow its foodservice channel.
Furthermore, Kraft recently announced that it will be joining forces with Microsoft (NASDAQ: MSFT) to develop solutions that would accelerate its transformation. By leveraging the Microsoft Azure cloud platform, Kraft will migrate the majority of its data center assets to Azure and its enterprise resource planning software to SAP on Azure. As a result, Kraft can expect to reimagine its day-to-day operations and create a more resilient supply chain long-term. All things considered, would you consider buying KHC stock ahead of its earnings release on April 27?
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Elsewhere, Diageo (NYSE: DEO) continues to add new innovations to its collection of proprietary blends. For instance, Archer-Daniels-Midland (NYSE: ADM) recently invested approximately $300 million to expand its alternative protein production in Decatur. Source: TD Ameritrade TOS [Read More] Stock Market Today: Dow Jones, S&P 500 Fall As China Covid Woes Persist; UPS In Focus On Earnings Beat Procter & Gamble Procter & Gamble is a company that focuses on providing branded consumer packaged goods to consumers across the world.
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Elsewhere, Diageo (NYSE: DEO) continues to add new innovations to its collection of proprietary blends. Consumer Staples Stocks To Buy [Or Sell] Before May 2022 Coca-Cola Co (NYSE: KO) Procter & Gamble Co (NYSE: PG) Kraft Heinz Co (NASDAQ: KHC) Coca-Cola Coca-Cola is among the top names in the consumer staples industry. Source: TD Ameritrade TOS [Read More] Stock Market Today: Dow Jones, S&P 500 Fall As China Covid Woes Persist; UPS In Focus On Earnings Beat Procter & Gamble Procter & Gamble is a company that focuses on providing branded consumer packaged goods to consumers across the world.
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Elsewhere, Diageo (NYSE: DEO) continues to add new innovations to its collection of proprietary blends. Consumer Staples Stocks To Buy [Or Sell] Before May 2022 Coca-Cola Co (NYSE: KO) Procter & Gamble Co (NYSE: PG) Kraft Heinz Co (NASDAQ: KHC) Coca-Cola Coca-Cola is among the top names in the consumer staples industry. Source: TD Ameritrade TOS [Read More] Stock Market Today: Dow Jones, S&P 500 Fall As China Covid Woes Persist; UPS In Focus On Earnings Beat Procter & Gamble Procter & Gamble is a company that focuses on providing branded consumer packaged goods to consumers across the world.
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Elsewhere, Diageo (NYSE: DEO) continues to add new innovations to its collection of proprietary blends. With that said, here are some of the top consumer staples stocks in the stock market today. Consumer Staples Stocks To Buy [Or Sell] Before May 2022 Coca-Cola Co (NYSE: KO) Procter & Gamble Co (NYSE: PG) Kraft Heinz Co (NASDAQ: KHC) Coca-Cola Coca-Cola is among the top names in the consumer staples industry.
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727630.0
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2022-04-22 00:00:00 UTC
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ABEV or DEO: Which Is the Better Value Stock Right Now?
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https://www.nasdaq.com/articles/abev-or-deo%3A-which-is-the-better-value-stock-right-now-0
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Investors interested in Beverages - Alcohol stocks are likely familiar with 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Ambev has 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. But this is just one piece of the puzzle 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.
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 20.07, while DEO has a forward P/E of 27.42. We also note that ABEV has a PEG ratio of 2.55. 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 3.15.
Another notable valuation metric for ABEV is its P/B ratio of 3.14. 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 9.42.
These metrics, and several others, help ABEV earn a Value grade of B, while DEO has been given a Value grade of D.
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 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors interested in Beverages - Alcohol stocks are likely familiar with 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 20.07, while DEO has a forward P/E of 27.42.
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Diageo plc (DEO): Free Stock Analysis Report Investors interested in Beverages - Alcohol stocks are likely familiar with 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.
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Investors interested in Beverages - Alcohol stocks are likely familiar with Ambev (ABEV) and Diageo (DEO). These metrics, and several others, help ABEV earn a Value grade of B, while DEO has been given a Value grade of D. ABEV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. Investors should feel comfortable knowing that ABEV likely has seen a stronger improvement to its earnings outlook than DEO has recently.
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Investors interested in Beverages - Alcohol stocks are likely familiar with 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 20.07, while DEO has a forward P/E of 27.42.
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727631.0
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2022-04-22 00:00:00 UTC
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7 Bear Market Stocks to Buy if You’re Feeling Fearful
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DEO
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https://www.nasdaq.com/articles/7-bear-market-stocks-to-buy-if-youre-feeling-fearful
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Lockheed Martin (LMT): New defense supercycle makes companies like Lockheed-Martin safe haven assets.
Pinnacle West Capital (PNW): Utility stocks perform well in bear markets; Pinnacle West is a value compared to its sector.
Starbucks (SBUX): During downturns, people value their small daily pleasures. And Starbucks stock is cheap given its recent sell-off.
Unilever (UL): Consumer products company is going through a rough patch now but will shine bright during next economic downturn.
Kimberly-Clark (KMB): There’s little more essential than toiletries regardless of the status of the economy.
Essential Utilities (WTRG): People pay their water bills in all economic climates.
Diageo (DEO): Alcohol consumption tends to remain steady even in hard times, and Diageo is the world leader in spirits.
With the Federal Reserve embarking on a massive rate hiking campaign, analysts fear for the worst. That brings bear market stocks into the picture.
The stock market is still quite near its all-time highs, at least judged by the major market indexes. However, there’s trouble brewing under the surface. Certain speculative corners of the market such as technology stocks, SPACs, and cryptocurrencies have witnessed dramatic sell-offs in recent months.
People are starting to wonder if the economy will slide into a recession in 2023 as the central bank takes aggressive actions to curtail inflation. With stocks at elevated valuation levels, it’s a risky time to invest.
7 Top-Rated Biotech Stocks to Buy for Q2
But there’s good news. There are stocks that perform well even during economic downturns. These seven bear market stocks should stand out as portfolio bulwarks during the next big downturn.
Ticker Company Current Price
LMT Lockheed Martin Corporation $439.54
PNW Pinnacle West Capital Corporation $77.90
SBUX Starbucks Corporation $78.96
UL Unilever PLC $45.54
KMB Kimberly-Clark Corporation $128.10
WTRG Essential Utilities, Inc. $49.22
DEO Diageo plc $203.42
Bear Market Stocks to Buy: Lockheed Martin (LMT)
Source: Giannis Papanikos / Shutterstock.com
Going into 2022, defense contractors such as Lockheed Martin (NYSE:LMT) were trading at depressed valuations. At one point not too long ago, LMT stock was under 14x forward earnings. That was a pretty unbelievable price, given the high quality of the underlying business and the guaranteed long-term contracts that defense companies have with the federal government.
The slide in the sector was primarily linked to the Biden administration’s decision to leave Afghanistan. As you might expect, with the conflict in Ukraine this year, governments are now pushing through increases to their defense budgets. The austere positioning in the industry from last year has reverted to a more growth-focused outlook. It’s not just the U.S. either, countries like Japan and Germany have announced major increases to their defense budgets.
Some might argue that it’s too late to buy LMT stock, as it is up 23% year-to-date. Even so, it is still going for less than 18x forward earnings, which is hardly expensive. And given sharply rising geopolitical tensions overseas, look for the defense industry to be a major growth sector again going forward. In any case, regardless of economic conditions, governments still pay their bills and national defense is always a priority. That makes Lockheed Martin a top tier bear market stock to own.
Pinnacle West Capital (PNW)
Source: Shutterstock
Pinnacle West Capital (NYSE:PNW) is the parent company of Arizona electricity companies, including its primary holding, Arizona Public Service. Pinnacle West serves nearly 1.3 million customers in and around the fast-growing Phoenix, Arizona market. Demographics are a big driver of utility stock performance, as long-term earnings growth tends to be driven primarily by population and business growth in a region. Arizona scores well on that front thanks to its warm climate and favorable tax rates.
PNW stock has lagged the utility sector over the past year thanks to a dispute over regulated rates. That’s a reasonable explanation for the weakness compared with its peers. That short-term underperformance, however, offers opportunity. Even as most utility stocks have raced to new highs, PNW stock is still in at a more reasonable valuation, and currently offers a 4.4% dividend yield.
Starbucks (SBUX)
Source: Grand Warszawski / Shutterstock.com
Starbucks (NASDAQ:SBUX) shares have fallen 32% over the past year. This puts the world’s leading coffee chain back into a more attractive valuation range, with shares now under 25x forward earnings.
Sure, there are some issues now. The company is dealing with a major unionization effort at the moment. And its heavy bet on growth in the Chinese market is causing some anxiety as of late.
Getting past the headline news, however, Starbucks should be a solid bear market stock. During economic hard times, people value their little luxuries. An overseas vacation or luxury car purchase may be out of reach during a recession, but a nice coffee and pastry is still on the menu. We saw Starbucks’ sales hold up far better than might have reasonably been expected during the Covid-19 lockdowns, and Starbucks should enjoy similar resilience during the next economic downturn.
Bear Market Stocks to Buy: Unilever (UL)
Source: BYonkruud / Shutterstock.com
Unilever (NYSE:UL) is a consumer staples companies which makes a variety of food, cleaning, and personal care products. The company’s stock has been in a tailspin over the past year. That’s due to inflation, supply chain issues, and loss of revenues related to the conflict in Eastern Europe, among other matters.
However, at this valuation, Unilever is becoming quite the safe pick. Shares are selling for just 16x forward earnings and offer a 4.5% dividend yield. And while management has not run the company well in recent years, activists are now attempting to shake the company up.
One way or another, Unilever should return to better operating results going forward. In the meantime, it offers a most generous dividend.
Kimberly-Clark (KMB)
Source: Trong Nguyen / Shutterstock.com
Kimberly-Clark (NYSE:KMB) is a leader in toilet paper, soap, and other such cleaning essentials. This briefly made KMB stock a hot one in 2020 at the height of the pandemic. Since then, however, sales have reverted to normal and Kimberly-Clark shares have slumped.
Indeed, KMB stock is now selling below where it did when the pandemic started. That’s pretty amazing. And down at current levels, it’s once again a great bear market stock to buy. When times get rough again, as they always do sooner or later, people will still want to buy things such as soap.
Earnings are down this year due to supply chain and inflation issues. Once those get sorted out, however, analysts see the stock at 18x 2023 earnings, which is a fine price for a defensive blue chip such as this one. And with the latest sell-off, Kimberly-Clark’s dividend yield is up to an attractive 3.7%.
Essential Utilities (WTRG)
Source: Alina Kruk/Shutterstock.com
In some ways, water utilities are even safer than electricity and gas utilities. This is because there isn’t any generation risk with a water utility. You don’t have the price of natural gas soar, a nuclear plant run over budget or so on. Water is one of the most basic human needs, and water utilities have — not surprisingly — generated exceptionally stable and robust returns over the decades.
Essential Utilities (NYSE:WTGR) is a water company hailing from Pennsylvania. It has offered steady results and a reliable dividend in recent years. Shares have pulled back almost 10% off their recent highs, which is a fairly big move for a company with as little volatility as Essential. The stock is now at 27x forward earnings, which is down from the 30+ levels where it often trades. Analysts also see earnings growth in the 6% to 7% annual range over the next years, which is pretty good by water standards.
Essential Utilities won’t make anyone rich overnight, but it can play great defense during a bear market. That plus a dividend yield that’s above the S&P 500 make it an easy stock to hold during a downturn.
Bear Market Stocks to Buy: Diageo (DEO)
Source: IgorGolovniov / Shutterstock.com
Diageo (NYSE:DEO) is one of the world’s largest spirits companies. Its portfolio of brands includes leading marks such as Smirnoff, Johnnie Walker, Ciroc, Don Julio, and Guinness beer. The company has a No. 1 or No. 2 brand in almost all the major types of spirits, making it flexible regardless of changing consumer demand.
In recent years, Diageo has prospered from premiumization, that is to say, selling higher-end bottles of liquor to customers. Analysts expect that trend to continue, leading to further expansion of profit margins. However, in a down economy, alcohol sales tend to remain strong. People drink to celebrate the good times and to commiserate during the bad ones.
Diageo spreads that consistency with its shareholders, as it has increased its dividend annually dating back to the turn of the century.
On the date of publication, Ian Bezek held a long position in LMT, UL, PNW, DEO stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Bear Market Stocks to Buy if You’re Feeling Fearful 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.
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Diageo (DEO): Alcohol consumption tends to remain steady even in hard times, and Diageo is the world leader in spirits. Ticker Company Current Price LMT Lockheed Martin Corporation $439.54 PNW Pinnacle West Capital Corporation $77.90 SBUX Starbucks Corporation $78.96 UL Unilever PLC $45.54 KMB Kimberly-Clark Corporation $128.10 WTRG Essential Utilities, Inc. $49.22 DEO Diageo plc $203.42 Bear Market Stocks to Buy: Lockheed Martin (LMT) Source: Giannis Papanikos / Shutterstock.com Going into 2022, defense contractors such as Lockheed Martin (NYSE:LMT) were trading at depressed valuations. Bear Market Stocks to Buy: Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo (NYSE:DEO) is one of the world’s largest spirits companies.
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Ticker Company Current Price LMT Lockheed Martin Corporation $439.54 PNW Pinnacle West Capital Corporation $77.90 SBUX Starbucks Corporation $78.96 UL Unilever PLC $45.54 KMB Kimberly-Clark Corporation $128.10 WTRG Essential Utilities, Inc. $49.22 DEO Diageo plc $203.42 Bear Market Stocks to Buy: Lockheed Martin (LMT) Source: Giannis Papanikos / Shutterstock.com Going into 2022, defense contractors such as Lockheed Martin (NYSE:LMT) were trading at depressed valuations. Diageo (DEO): Alcohol consumption tends to remain steady even in hard times, and Diageo is the world leader in spirits. Bear Market Stocks to Buy: Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo (NYSE:DEO) is one of the world’s largest spirits companies.
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Ticker Company Current Price LMT Lockheed Martin Corporation $439.54 PNW Pinnacle West Capital Corporation $77.90 SBUX Starbucks Corporation $78.96 UL Unilever PLC $45.54 KMB Kimberly-Clark Corporation $128.10 WTRG Essential Utilities, Inc. $49.22 DEO Diageo plc $203.42 Bear Market Stocks to Buy: Lockheed Martin (LMT) Source: Giannis Papanikos / Shutterstock.com Going into 2022, defense contractors such as Lockheed Martin (NYSE:LMT) were trading at depressed valuations. Diageo (DEO): Alcohol consumption tends to remain steady even in hard times, and Diageo is the world leader in spirits. Bear Market Stocks to Buy: Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo (NYSE:DEO) is one of the world’s largest spirits companies.
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Diageo (DEO): Alcohol consumption tends to remain steady even in hard times, and Diageo is the world leader in spirits. Ticker Company Current Price LMT Lockheed Martin Corporation $439.54 PNW Pinnacle West Capital Corporation $77.90 SBUX Starbucks Corporation $78.96 UL Unilever PLC $45.54 KMB Kimberly-Clark Corporation $128.10 WTRG Essential Utilities, Inc. $49.22 DEO Diageo plc $203.42 Bear Market Stocks to Buy: Lockheed Martin (LMT) Source: Giannis Papanikos / Shutterstock.com Going into 2022, defense contractors such as Lockheed Martin (NYSE:LMT) were trading at depressed valuations. Bear Market Stocks to Buy: Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Diageo (NYSE:DEO) is one of the world’s largest spirits companies.
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2022-04-06 00:00:00 UTC
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ABEV vs. DEO: Which Stock Should Value Investors Buy Now?
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DEO
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https://www.nasdaq.com/articles/abev-vs.-deo%3A-which-stock-should-value-investors-buy-now
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nan
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Investors interested in Beverages - Alcohol stocks are likely familiar with 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.
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 has a Zacks Rank of #2 (Buy), while Diageo has a Zacks Rank of #4 (Sell) right now. This means that ABEV'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 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 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 22.07, while DEO has a forward P/E of 27.90. We also note that ABEV has a PEG ratio of 2.81. 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 3.39.
Another notable valuation metric for ABEV is its P/B ratio of 3.23. 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 9.64.
These are just a few of the metrics contributing to ABEV's Value grade of B and DEO's Value grade of D.
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 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors interested in Beverages - Alcohol stocks are likely familiar with Ambev (ABEV) and Diageo (DEO). ABEV currently has a forward P/E ratio of 22.07, while DEO has a forward P/E of 27.90. DEO currently has a PEG ratio of 3.39.
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Diageo plc (DEO): Free Stock Analysis Report Investors interested in Beverages - Alcohol stocks are likely familiar with Ambev (ABEV) and Diageo (DEO). ABEV currently has a forward P/E ratio of 22.07, while DEO has a forward P/E of 27.90.
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Investors interested in Beverages - Alcohol stocks are likely familiar with 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 D. ABEV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. ABEV currently has a forward P/E ratio of 22.07, while DEO has a forward P/E of 27.90.
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DEO currently has a PEG ratio of 3.39. Investors interested in Beverages - Alcohol stocks are likely familiar with Ambev (ABEV) and Diageo (DEO). ABEV currently has a forward P/E ratio of 22.07, while DEO has a forward P/E of 27.90.
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66d58a58-05cd-4749-8913-6f22b6ccb328
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727633.0
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2022-03-21 00:00:00 UTC
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ABEV or DEO: Which Is the Better Value Stock Right Now?
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DEO
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https://www.nasdaq.com/articles/abev-or-deo%3A-which-is-the-better-value-stock-right-now
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nan
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nan
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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 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.
Right now, Ambev is sporting 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 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.
ABEV currently has a forward P/E ratio of 19.59, while DEO has a forward P/E of 26.42. We also note that ABEV has a PEG ratio of 2.49. 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 2.86.
Another notable valuation metric for ABEV is its P/B ratio of 2.87. 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 9.18.
These metrics, and several others, help ABEV earn a Value grade of B, while DEO has been given 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.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.
See these 7 breakthrough stocks 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
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.
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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 19.59, while DEO has a forward P/E of 26.42. DEO currently has a PEG ratio of 2.86.
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Diageo plc (DEO): Free Stock Analysis Report 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 19.59, while DEO has a forward P/E of 26.42.
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These metrics, and several others, help ABEV earn a Value grade of B, while DEO has been given 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 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 19.59, while DEO has a forward P/E of 26.42.
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DEO currently has a PEG ratio of 2.86. These metrics, and several others, help ABEV earn a Value grade of B, while DEO has been given 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 looking for stocks in the Beverages - Alcohol sector might want to consider either Ambev (ABEV) or Diageo (DEO).
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e188f84b-41a2-43ee-8fbf-eddf09f7cae3
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727634.0
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2022-03-14 00:00:00 UTC
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Here's Why it is Appropriate to Own Diageo (DEO) Stock Now
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DEO
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https://www.nasdaq.com/articles/heres-why-it-is-appropriate-to-own-diageo-deo-stock-now
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nan
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Diageo plc DEO has been benefiting from the continued recovery in the on-trade channel, strong consumer demand in the off-trade channel and market share gains. These also aided the company’s performance in the first half of fiscal 2022. It witnessed sales, operating margin and earnings growth in the first half of fiscal 2021, driven by organic sales growth across all regions.
In the first half of fiscal 2022, net sales increased 15.8%, driven by strong organic growth, partly negated by adverse currency effects. Diageo witnessed double-digit organic sales growth across all five regions. Organic volume improved 9.3%. Price/mix grew 10.7%, contributing to more than half of net sales growth. Price/mix growth was driven by mix benefits stemming from strength in premium plus brands, recovery in the on-trade channel in North America and Europe, and a partial Travel Retail recovery. Price increases in Latin America and the Caribbean, Africa, and North America also aided the price/mix.
The Zacks Rank # 2 (Buy) stock has risen 4.8% in the past year against the industry’s decline of 5.3% and the Zacks Consumer Staples sector’s 4.7% fall.
The Zacks Consensus Estimate for its current financial year’s sales and earnings suggests growth of 32.1% and 15.9%, respectively, from the year-ago period’s reported numbers.
Image Source: Zacks Investment Research
Here's Why Diageo Should Retain the Momentum
Diageo is anticipated to retain its strong performance on robust organic sales growth trends. The company’s organic net sales were up 20% year over year in the first half of fiscal 2022. Organic sales in the first half benefited from robust double-digit growth across all regions, backed by effective marketing and exceptional commercial execution.
Organic sales were also aided by a sustained recovery in the on-trade channel, continued strong consumer demand in the off-trade channel and market share gains. Improved market share was supported by favorable industry trends, with expanding market share of spirits and continued premiumization efforts.
In North America, Diageo’s largest market, sales accelerated 13% in the first half of fiscal 2022 on recovery in on-trade, resilient consumer demand in off-trade and share gains. DEO witnessed sales growth of 27% in Europe, 13% in the Asia Pacific, 23% in Africa, and 45% in Latin America and the Caribbean. Strong growth in Greater China and India primarily aided sales growth in the Asia Pacific, while sales continued to recover across the rest of the region.
Growth across all markets, particularly in Nigeria and East Africa, aided sales growth in Africa. Diageo also reported substantial growth across most categories, with growth of 56% slated for tequila, 27% for scotch and 22% for beer. Gains in the beer business were driven by growth of Guinness in Ireland, Great Britain and Africa. DEO’s premium plus brands contributed 56% to reported net sales and 74% to organic net sales growth.
Strong recovery in the gross margin and operating cost leverage, along with higher marketing investments, aided organic operating margin growth. Organic operating margin growth was aided by a strong recovery in the gross margin and operating cost leverage, along with higher marketing investments. Moreover, margin growth was driven by supply productivity savings and price increases, which more than offset the higher cost inflation.
The company has been leveraging its existing e-commerce capabilities and accelerating investments in the online platform to cater to the pandemic-driven shift in consumer shopping behavior. As the online platform has become more relevant amid the pandemic, the company has diverted its efforts to connect with consumers and maintain brand relevance by responding to increased opportunities for at-home consumption occasions. This included new occasions like wanting to enjoy bar-quality drinks at home.
Diageo stated that it had a strong start to fiscal 2022. It expects the organic sales momentum to continue in the second half of fiscal 2022. Although the near-term volatility is likely to continue, it expects to navigate through the ongoing disruptions in the rest of fiscal 2022. The company believes that it is well-poised to gain from the resilience in off-trade and the continued recovery in the on-trade channel.
DEO expects consumer demand to be resilient in North America, driving net sales growth. Continued innovation and effective marketing are also anticipated to underpin growth in North America. In Europe, the company expects to benefit from the continued on-trade recovery and resilient off-trade channel. In the Asia Pacific, Africa, and Latin America and the Caribbean, it anticipates building on the momentum witnessed in the first half, with expectations of disruptions from COVID-19 to persist in these markets.
The company expects organic operating profit to increase more than organic net sales in the second half of fiscal 2022. The operating margin is expected to improve in the second half of fiscal 2022, driven by growth in sales volumes, positive channel mix and premiumization trends. It expects its focus on everyday efficiencies and revenue growth management to offset the impacts of the inflationary cost pressures. Interest expense rate is anticipated to be 2.7-3%. Between fiscal 2023 and fiscal 2025, the company expects to generate organic sales growth of 5-7%, with organic operating income growth of 6-9%.
Looking for Other Solid Stocks? Check These
We have highlighted three other top-ranked companies in the beverage industry, namely The Coca-Cola Company KO, Fomento Economico Mexicano FMX and The Duckhorn Portfolio NAPA.
Coca-Cola, the Atlanta, GA-based global beverage giant, presently carries a Zacks Rank #2. The KO stock has rallied 13.5% 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 Coca-Cola’s sales and EPS for the current financial year suggests growth of 8.8% and 6%, respectively, from the corresponding year-ago levels. KO has a trailing four-quarter earnings surprise of 13.5%, on average. It has an expected long-term earnings growth rate of 8%.
Fomento Economico Mexicano, alias FEMSA, has exposure in various industries, including beverage, beer and retail, which gives it an edge over its competitors. It presently has a Zacks Rank of 2. FEMSA has a trailing four-quarter earnings surprise of 33.6%, on average. Shares of FMX have increased 6.6% in the past year.
The Zacks Consensus Estimate for FEMSA’s sales for the current financial year suggests growth of 1.2% from the year-ago period’s reported figure. The same for earnings per share suggests a fall of 7.1%. FMX has an expected EPS growth rate of 14.8% for three to five years.
Duckhorn Portfolio currently has a Zacks Rank #2. The company has an expected long-term earnings growth rate of 10.9%. Shares of NAPA have gained 2.1% in the past year.
The Zacks Consensus Estimate for Duckhorn Portfolio's current financial year’s earnings per share has been unchanged in the past 30 days. Moreover, it is expected to be flat with the year-ago period's reported figure at 58 cents per share. NAPA has a trailing four-quarter earnings surprise of 122.4%, on average.
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CocaCola Company The (KO): Free Stock Analysis Report
Fomento Economico Mexicano S.A.B. de C.V. (FMX): Free Stock Analysis Report
Diageo plc (DEO): 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.
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Diageo plc DEO has been benefiting from the continued recovery in the on-trade channel, strong consumer demand in the off-trade channel and market share gains. DEO witnessed sales growth of 27% in Europe, 13% in the Asia Pacific, 23% in Africa, and 45% in Latin America and the Caribbean. DEO’s premium plus brands contributed 56% to reported net sales and 74% to organic net sales growth.
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Diageo plc DEO has been benefiting from the continued recovery in the on-trade channel, strong consumer demand in the off-trade channel and market share gains. DEO witnessed sales growth of 27% in Europe, 13% in the Asia Pacific, 23% in Africa, and 45% in Latin America and the Caribbean. DEO’s premium plus brands contributed 56% to reported net sales and 74% to organic net sales growth.
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Diageo plc DEO has been benefiting from the continued recovery in the on-trade channel, strong consumer demand in the off-trade channel and market share gains. DEO witnessed sales growth of 27% in Europe, 13% in the Asia Pacific, 23% in Africa, and 45% in Latin America and the Caribbean. DEO’s premium plus brands contributed 56% to reported net sales and 74% to organic net sales growth.
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Diageo plc DEO has been benefiting from the continued recovery in the on-trade channel, strong consumer demand in the off-trade channel and market share gains. DEO witnessed sales growth of 27% in Europe, 13% in the Asia Pacific, 23% in Africa, and 45% in Latin America and the Caribbean. DEO’s premium plus brands contributed 56% to reported net sales and 74% to organic net sales growth.
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f88de69b-8f5d-410e-84bf-7a6c3de227a9
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727635.0
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2022-03-04 00:00:00 UTC
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Analysts Anticipate FVD To Hit $46
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DEO
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https://www.nasdaq.com/articles/analysts-anticipate-fvd-to-hit-%2446
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nan
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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 $45.98 per unit.
With FVD trading at a recent price near $41.25 per unit, that means that analysts see 11.47% 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 Sanofi (Symbol: SNY), Canon Inc (Symbol: CAJ), and Diageo plc (Symbol: DEO). Although SNY has traded at a recent price of $50.18/share, the average analyst target is 27.87% higher at $64.17/share. Similarly, CAJ has 22.33% upside from the recent share price of $22.97 if the average analyst target price of $28.10/share is reached, and analysts on average are expecting DEO to reach a target price of $233.67/share, which is 21.44% above the recent price of $192.42. Below is a twelve month price history chart comparing the stock performance of SNY, CAJ, 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 $41.25 $45.98 11.47%
Sanofi SNY $50.18 $64.17 27.87%
Canon Inc CAJ $22.97 $28.10 22.33%
Diageo plc DEO $192.42 $233.67 21.44%
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 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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First Trust Value Line Dividend Index Fund ETF FVD $41.25 $45.98 11.47% Sanofi SNY $50.18 $64.17 27.87% Canon Inc CAJ $22.97 $28.10 22.33% Diageo plc DEO $192.42 $233.67 21.44% 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 Sanofi (Symbol: SNY), Canon Inc (Symbol: CAJ), and Diageo plc (Symbol: DEO). Similarly, CAJ has 22.33% upside from the recent share price of $22.97 if the average analyst target price of $28.10/share is reached, and analysts on average are expecting DEO to reach a target price of $233.67/share, which is 21.44% above the recent price of $192.42.
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Three of FVD's underlying holdings with notable upside to their analyst target prices are Sanofi (Symbol: SNY), Canon Inc (Symbol: CAJ), and Diageo plc (Symbol: DEO). Similarly, CAJ has 22.33% upside from the recent share price of $22.97 if the average analyst target price of $28.10/share is reached, and analysts on average are expecting DEO to reach a target price of $233.67/share, which is 21.44% above the recent price of $192.42. First Trust Value Line Dividend Index Fund ETF FVD $41.25 $45.98 11.47% Sanofi SNY $50.18 $64.17 27.87% Canon Inc CAJ $22.97 $28.10 22.33% Diageo plc DEO $192.42 $233.67 21.44% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, CAJ has 22.33% upside from the recent share price of $22.97 if the average analyst target price of $28.10/share is reached, and analysts on average are expecting DEO to reach a target price of $233.67/share, which is 21.44% above the recent price of $192.42. Three of FVD's underlying holdings with notable upside to their analyst target prices are Sanofi (Symbol: SNY), Canon Inc (Symbol: CAJ), and Diageo plc (Symbol: DEO). Below is a twelve month price history chart comparing the stock performance of SNY, CAJ, and DEO: Below is a summary table of the current analyst target prices discussed above:
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First Trust Value Line Dividend Index Fund ETF FVD $41.25 $45.98 11.47% Sanofi SNY $50.18 $64.17 27.87% Canon Inc CAJ $22.97 $28.10 22.33% Diageo plc DEO $192.42 $233.67 21.44% 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 Sanofi (Symbol: SNY), Canon Inc (Symbol: CAJ), and Diageo plc (Symbol: DEO). Similarly, CAJ has 22.33% upside from the recent share price of $22.97 if the average analyst target price of $28.10/share is reached, and analysts on average are expecting DEO to reach a target price of $233.67/share, which is 21.44% above the recent price of $192.42.
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e0c61221-0506-45e0-9d6a-db02323ad87b
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727636.0
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2022-03-03 00:00:00 UTC
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Brown-Forman (BF.B) Q3 Earnings & Sales Beat on Revived Trends
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DEO
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https://www.nasdaq.com/articles/brown-forman-bf.b-q3-earnings-sales-beat-on-revived-trends
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nan
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Brown-Forman Corporation (BF.B) has reported robust third-quarter fiscal 2022 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Sales and earnings increased year over year, backed by increased demand for its brands.
For the fiscal third quarter, earnings per share of 54 cents advanced 19% year over year and surpassed the Zacks Consensus Estimate of 48 cents. The rise can be attributed to robust operating margin growth, which offset higher costs.
Net sales of $1,037 million beat the Zacks Consensus Estimate of $1,005 million. The top line increased 14% year over year on a reported basis. On an organic basis, net sales were up 22% from the prior-year level.
BrownForman Corporation Price, Consensus and EPS Surprise
BrownForman Corporation price-consensus-eps-surprise-chart | BrownForman Corporation Quote
For third-quarter fiscal 2022, Brown-Forman’s gross profit amounted to $622 million, improving 13% year over year, and the gross margin contracted 40 basis points (bps) to 60%. Operating income improved 24% year over year to $347 million on a reported basis. O
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Brown-Forman Corporation (BF.B) has reported robust third-quarter fiscal 2022 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. The rise can be attributed to robust operating margin growth, which offset higher costs. BrownForman Corporation Price, Consensus and EPS Surprise BrownForman Corporation price-consensus-eps-surprise-chart | BrownForman Corporation Quote For third-quarter fiscal 2022, Brown-Forman’s gross profit amounted to $622 million, improving 13% year over year, and the gross margin contracted 40 basis points (bps) to 60%.
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Brown-Forman Corporation (BF.B) has reported robust third-quarter fiscal 2022 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Net sales of $1,037 million beat the Zacks Consensus Estimate of $1,005 million. BrownForman Corporation Price, Consensus and EPS Surprise BrownForman Corporation price-consensus-eps-surprise-chart | BrownForman Corporation Quote For third-quarter fiscal 2022, Brown-Forman’s gross profit amounted to $622 million, improving 13% year over year, and the gross margin contracted 40 basis points (bps) to 60%.
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For the fiscal third quarter, earnings per share of 54 cents advanced 19% year over year and surpassed the Zacks Consensus Estimate of 48 cents. BrownForman Corporation Price, Consensus and EPS Surprise BrownForman Corporation price-consensus-eps-surprise-chart | BrownForman Corporation Quote For third-quarter fiscal 2022, Brown-Forman’s gross profit amounted to $622 million, improving 13% year over year, and the gross margin contracted 40 basis points (bps) to 60%. Operating income improved 24% year over year to $347 million on a reported basis.
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Brown-Forman Corporation (BF.B) has reported robust third-quarter fiscal 2022 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Net sales of $1,037 million beat the Zacks Consensus Estimate of $1,005 million. Operating income improved 24% year over year to $347 million on a reported basis.
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38227e6a-9cbd-455d-b5ee-87615617ac80
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727637.0
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2022-03-01 00:00:00 UTC
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FEMSA (FMX) Misses on Q4 Earnings, Beats Revenues Estimates
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DEO
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https://www.nasdaq.com/articles/femsa-fmx-misses-on-q4-earnings-beats-revenues-estimates
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nan
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nan
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Fomento Economico Mexicano S.A.B. de C.V’s FMX, alias FEMSA, reported net majority earnings per ADS of 92 cents (Ps. 1.88 per FEMSA unit) in fourth-quarter 2021, missing the Zacks Consensus Estimate of $1.13. The company noted that trends across its business units and markets have been improving as the health situation continues to recover.
Net consolidated income for the largest franchise bottler for The Coca-Cola Company KO was Ps. 10,100 million (US$486.7 million), reflecting a significant improvement from Ps. 730 million (US$35.4 million) reported in the year-ago quarter. The improvement can primarily be attributed to robust income from operations, reduced interest expenses and increased participation in associates’ results, mainly Heineken’s.
Total revenues were $7,307 million (Ps. 151,542 million), which improved 16.3% year over year and 14.6% from fourth-quarter 2019 in the local currency. Revenues, in U.S. dollar, beat the Zacks Consensus Estimate of $7,032 million. Revenue growth was driven by gains across all business units, along with a favorable comparison with the year-ago quarter. On an organic basis, total revenues rose 12.9%.
Shares of the Zacks Rank #1 (Strong Buy) company have gained 14.3% in the past year compared with the industry’s growth of 21.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Image Source: Zacks Investment Research
FEMSA’s gross profit rose 15.2% year over year to Ps. 59,912 million (US$2,887.3 million). Consolidated gross margin contracted 40 basis points (bps) to 39.5%, owing to the gross margin contraction of 110 bps at FEMSA Comercio’s Fuel Division, partly offset by margin expansion of 150 bps at FEMSA Comercio’s Proximity Divisions and 30 bps at Coca-Cola FEMSA S.A.B. de C.V. KOF.
FEMSA’s operating income (income from operations) was up 18% to Ps. 15,509 million (US$747.4 million). On an organic basis, operating income improved 17%. Consolidated operating margin expanded 10 bps to 10.2%, driven by margin expansion at FEMSA Comercio’s Proximity and Health Divisions, partly negated by a decline at Coca-Cola FEMSA.
Fomento Economico Mexicano S.A.B. de C.V. Price, Consensus and EPS Surprise
Fomento Economico Mexicano S.A.B. de C.V. price-consensus-eps-surprise-chart | Fomento Economico Mexicano S.A.B. de C.V. Quote
Segmental Discussion
FEMSA Comercio — Proximity Division: Total revenues for the segment rose 14.4% year over year to Ps. 53,510 million (US$2,578.8 million). The increase can primarily be attributed to a 12.5% rise in same-store sales on 1.9% growth in store traffic and a 10.4% increase in average ticket. FEMSA Comercio’s Proximity division had 20,431 OXXO stores as of Dec 31, 2021. Operating income accelerated 12.6% year over year, while the operating margin expanded 210 bps to 12.6%, owing to higher operating leverage.
FEMSA Comercio — Health Division: The segment reported total revenues of Ps. 18,581 million (US$895.5 million), up 7.3% year over year. Revenues benefited from favorable trends in Mexico and Colombia operations as well as higher consumption in Chile. This was partly offset by negative currency translations. Same-store sales for drugstores increased 5.7%.
On a currency-neutral basis, total revenues increased 14.3%, while same-store sales increased 10.3%. The segment had 3,652 points of sales across all regions as of Dec 31, 2021. The operating income improved 10.1% year over year, while the operating margin rose 10 bps to 5%. The decline can be attributed to tight expense control and efficiency gains across its operations.
FEMSA Comercio — Fuel Division: Total revenues rose 30.2% to Ps. 11,065 million (US$533.3 million). Same-station sales improved 23.3%, driven by an 8.3% increase in the average volume and 13.8% growth in the average price per liter. The company had 567 OXXO GAS service stations as of Dec 31, reflecting the addition of one station in the reported quarter. Operating income advanced 31.4% and the operating margin was flat at 3.9%.
Logistics and Distribution: Total revenues for the segment were Ps. 14,603 million (US$703.8 million). Revenues reflected positive demand trends across Latin America as well as recovery in some end-user segments in the United States. The segment’s operating income was Ps. 578 million (US$27.9 million), with 4% of operating margin.
Coca-Cola FEMSA: Total revenues for the segment advanced 8.5% year over year to Ps. 53,273 million (US$2,567.4 million). Revenues were mainly aided by improved volume, pricing initiatives and favorable price-mix effects. On a comparable basis, revenues improved 10.5%. Coca-Cola FEMSA’s operating income increased 7.6% and comparable operating income rose 8%. Operating income growth resulted from favorable revenues, partly offset by the normalization of some operating expenses like marketing, labor and maintenance due to the reopening of operations and increased mobility in most markets. The segment’s operating margin contracted 10 bps to 14.6%.
Financial Position
FEMSA had cash and cash equivalents of Ps. 97,407 million (US$4,733.1 million) as of Dec 31, 2021. Long-term debt was Ps. 179,857 million (US$8,739.4 million). The company incurred a capital expenditure of Ps. 8,827 million (US$425.4 million) in the fourth quarter, reflecting higher investments in most businesses.
Other Developments
Beginning January 2022, FEMSA has realigned its business reporting for the FEMSA Comercio, with the segments now directly reporting to the company’s CEO. The company will now report under the following segments: FEMSA – Proximity Division, FEMSA – Health Division, FEMSA – Digital Division and FEMSA Negocios Estratégicos.
The FEMSA – Proximity Division will include OXXO and OXXO International operations, OXXO Gas, and other related retail operations, including Super Bara discount stores and Doña Tota quick-service restaurants. FEMSA – Health Division will comprise the drugstores and health-related operations in Mexico and South America. FEMSA – Digital Division will include the Spin by OXXO, OXXO Premia Loyalty program and other related initiatives. FEMSA Negocios Estratégicos will include the Logistics & Distribution business, which will continue to report directly to FEMSA’s CEO.
Concurrently, the company completed the acquisition of the previously announced OK Market. The small-format proximity store chain in Chile will add 134 locations to FEMSA’s proximity business. This will enhance FEMSA’s existing presence in this important market, reaching a total of 258 locations.
Stocks to Consider
We have highlighted two favorably-ranked stocks in the Consumer Staples sector, namely Coca-Cola and Diageo DEO.
Coca-Cola, which is a global beverage giant, currently has a Zacks Rank #2 (Buy). The company has an expected EPS growth rate of 8% for three-five years. Shares of KO have improved 24.2% in the past year.
The Zacks Consensus Estimate for Coca-Cola's current financial-year sales and earnings per share suggests growth of 8.8% and 6%, respectively, from the year-ago period. KO has a trailing four-quarter earnings surprise of 13.5%, on average.
Diageo, involved in producing, distilling, brewing, bottling, packaging and distributing spirits, wine and beer, currently has a Zacks Rank #2. Shares of DEO have rallied 24.2% in the past year.
The Zacks Consensus Estimate for Diageo’s current financial-year sales and earnings per share suggests growth of 32.1% and 15.9%, respectively, from the year-ago period’s reported figures. DEO has an expected EPS growth rate of 9.2% for three-five years.
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
Fomento Economico Mexicano S.A.B. de C.V. (FMX): 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
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.
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Stocks to Consider We have highlighted two favorably-ranked stocks in the Consumer Staples sector, namely Coca-Cola and Diageo DEO. Shares of DEO have rallied 24.2% in the past year. DEO has an expected EPS growth rate of 9.2% for three-five years.
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Stocks to Consider We have highlighted two favorably-ranked stocks in the Consumer Staples sector, namely Coca-Cola and Diageo DEO. Shares of DEO have rallied 24.2% in the past year. DEO has an expected EPS growth rate of 9.2% for three-five years.
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Stocks to Consider We have highlighted two favorably-ranked stocks in the Consumer Staples sector, namely Coca-Cola and Diageo DEO. Shares of DEO have rallied 24.2% in the past year. DEO has an expected EPS growth rate of 9.2% for three-five years.
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Stocks to Consider We have highlighted two favorably-ranked stocks in the Consumer Staples sector, namely Coca-Cola and Diageo DEO. Shares of DEO have rallied 24.2% in the past year. DEO has an expected EPS growth rate of 9.2% for three-five years.
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02a91b4e-b130-4dd4-b925-b59a38c51dd1
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727638.0
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2022-02-25 00:00:00 UTC
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Monster Beverage (MNST) Q4 Earnings in Line, Sales Surpass
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DEO
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https://www.nasdaq.com/articles/monster-beverage-mnst-q4-earnings-in-line-sales-surpass
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nan
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nan
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Monster Beverage Corporation MNST reported a better-than-expected top line in fourth-quarter 2021, while the bottom line was in line with the Zacks Consensus Estimate. Moreover, sales improved year over year, driven by continued strong demand for the energy drinks category. However, the ongoing supply-chain disruptions and elevated aluminum can costs hurt earnings.
Logistics issues, including shortages of shipping containers and global port congestions, higher input costs, and freight inefficiencies, hurt the gross and operating margins in the fourth quarter. The company could not fully meet the increasing consumer demand in the fourth quarter due to the shortages in aluminum cans and delays in procuring certain ingredients.
Shares of this Zacks Rank #3 (Hold) company have declined 6.8% in the past year against the industry’s 21% growth.
Image Source: Zacks Investment Research
Q4 Highlights
Monster Beverage’s earnings of 60 cents per share were in line with the Zacks Consensus Estimate but declined 3.2% year over year. The bottom line was impacted by inflationary operational costs for aluminum cans, shipping, freight and other inputs. The company is working to mitigate these costs through measures like reductions in promotions and other pricing actions.
Net sales of $1,425 million improved 19.1% year over year and surpassed the Zacks Consensus Estimate of $1,324 million. Unfavorable currency translations hurt net sales by $2.4 million in the reported quarter.
Net sales to customers outside the United States rose 32% to $508.1 million, representing about 36% of net sales.
Monster Beverage Corporation Price, Consensus and EPS Surprise
Monster Beverage Corporation price-consensus-eps-surprise-chart | Monster Beverage Corporation Quote
Segmental Performance
Monster Energy Drinks: The segment includes Monster Energy drinks, Reign Total Body Fuel high-performance energy drinks and True North Pure Energy Seltzers. The segment’s net sales increased 20.7% year over year to $1.35 billion. The segment’s sales included a negative impact of $2.7 million from adverse currency rates.
Strategic Brands: In addition to the affordable energy drink brands, the segment includes a range of energy drink brands acquired from The Coca-Cola Company KO. The segment’s net sales declined 3.5% year over year to $65.6 million in the fourth quarter. Shortages in NOS concentrate hurt the segment’s net sales for the fourth quarter. However, currency tailwinds aided the segment’s sales by $0.3 million.
Other: Net sales for the segment, which includes some products of American Fruits & Flavors sold to independent third-parties (AFF Third-Party Products), declined 10.4% year over year to $6 million.
Costs & Margins
The company’s fourth-quarter 2021 gross margin contracted 380 basis points (bps) to 53.9% because of elevated aluminum can costs due to higher aluminum commodity pricing, increased freight-in costs, adverse geographical and product sales mix, and production inefficiencies.
Monster Beverage procured additional quantities of aluminum cans from suppliers in the United States and abroad, owing to the rising consumer demand. However, it continued to witness shortages in its aluminum can requirements in the United States and EMEA in the fourth quarter. MNST also felt the pinch of higher aluminum can costs due to elevated aluminum commodity pricing and the costs of importing aluminum cans.
Apart from this, the company saw elevated ingredient and other input costs, including shipping and freight, labor, trucking, fuel, co-packing fees, secondary packaging materials, and increased outbound freight costs, which led to increased costs of sales and higher operating costs in the fourth quarter.
Monster Beverage also experienced incremental supply-chain challenges related to freight inefficiencies, trucking availability, shortages of shipping containers, port of entry congestion, insufficient co-packing capacity, and delays in receiving certain ingredients. This led to product shortages in these regions amid the strong demand.
Operating expenses grew 23% year over year to $354.7 million. The increase can be attributed to higher outbound freight and warehouse costs; elevated sponsorship and endorsement expenses; increased marketing expenses, including social media and digital marketing; and higher payroll costs.
As a percentage of sales, operating expenses increased 80 bps to 24.9%. Higher operating expense rates mainly resulted from increased selling and distribution expenses. Selling expenses, as a percentage of net sales, rose 10 bps to 9.8%. Distribution costs, as a percentage of net sales, increased 100 bps to 4.9%. However, general and administrative expenses, as a percentage of net sales, declined 30 bps year over year to 10.1%.
Operating income of $412.9 million grew 2.6% year over year. However, the operating margin contracted 460 bps to 29% for the reported quarter.
Other Financials
Monster Beverage ended 2021 with cash and cash equivalents of $1,326.5 million, and total stockholders' equity of $6,567 million. Short-term investments as of Dec 31, 2021, were $1,749.7 million, whereas long-term investments were $99.4 million.
In the reported quarter, the company did not buy back any shares. As of Feb 24, 2022, it had $441.5 million remaining under the previously authorized share repurchase plan.
Better-Ranked Stocks to Consider
We have highlighted three better-ranked stocks in the Consumer Staples sector, namely Fomento Economico Mexicano FMX, Coca-Cola and Diageo DEO.
Fomento Economico Mexicano, alias FEMSA, has exposure in various industries, including beverage, beer and retail, which gives it an edge over its competitors. It currently sports a Zacks Rank #1 (Strong Buy). FMX has a trailing four-quarter earnings surprise of 51.2%, on average. Shares of FMX have rallied 10.9% 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 sales suggests growth of 17.4% from the year-ago period's reported figures. FMX has an expected EPS growth rate of 14.8% for three-five years.
Coca-Cola, which is a global beverage giant, currently has a Zacks Rank #2 (Buy). The company has an expected EPS growth rate of 8% for three-five years. Shares of KO have improved 23.2% in the past year.
The Zacks Consensus Estimate for Coca-Cola's current financial-year sales and earnings per share suggests growth of 8.7% and 6%, respectively, from the year-ago period. KO has a trailing four-quarter earnings surprise of 13.5%, on average.
Diageo, involved in producing, distilling, brewing, bottling, packaging and distributing spirits, wine and beer, currently has a Zacks Rank #2. Shares of DEO have rallied 22.4% in the past year.
The Zacks Consensus Estimate for Diageo’s current financial-year sales and earnings per share suggests growth of 32.1% and 15.9%, respectively, from the year-ago period’s reported figures. DEO has an expected EPS growth rate of 9.2% for three-five years.
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CocaCola Company The (KO): Free Stock Analysis Report
Fomento Economico Mexicano S.A.B. de C.V. (FMX): Free Stock Analysis Report
Diageo plc (DEO): 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.
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Better-Ranked Stocks to Consider We have highlighted three better-ranked stocks in the Consumer Staples sector, namely Fomento Economico Mexicano FMX, Coca-Cola and Diageo DEO. Shares of DEO have rallied 22.4% in the past year. DEO has an expected EPS growth rate of 9.2% for three-five years.
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Better-Ranked Stocks to Consider We have highlighted three better-ranked stocks in the Consumer Staples sector, namely Fomento Economico Mexicano FMX, Coca-Cola and Diageo DEO. Shares of DEO have rallied 22.4% in the past year. DEO has an expected EPS growth rate of 9.2% for three-five years.
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Better-Ranked Stocks to Consider We have highlighted three better-ranked stocks in the Consumer Staples sector, namely Fomento Economico Mexicano FMX, Coca-Cola and Diageo DEO. Shares of DEO have rallied 22.4% in the past year. DEO has an expected EPS growth rate of 9.2% for three-five years.
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Better-Ranked Stocks to Consider We have highlighted three better-ranked stocks in the Consumer Staples sector, namely Fomento Economico Mexicano FMX, Coca-Cola and Diageo DEO. Shares of DEO have rallied 22.4% in the past year. DEO has an expected EPS growth rate of 9.2% for three-five years.
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8d2083fa-b6e9-4134-be59-ca39bdee8360
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727639.0
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2022-02-24 00:00:00 UTC
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RSI Alert: Diageo Now Oversold
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DEO
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https://www.nasdaq.com/articles/rsi-alert%3A-diageo-now-oversold
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nan
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nan
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The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Diageo plc (Symbol: DEO) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Diageo plc an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of DEO entered into oversold territory, changing hands as low as $189.145 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Diageo plc, the RSI reading has hit 24.8 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 37.3. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, DEO's recent annualized dividend of 3.14/share (currently paid in semi-annual installments) works out to an annual yield of 1.58% based upon the recent $199.21 share price.
A bullish investor could look at DEO's 24.8 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. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DEO is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A bullish investor could look at DEO's 24.8 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. Diageo plc (Symbol: DEO) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Diageo plc an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of DEO entered into oversold territory, changing hands as low as $189.145 per share.
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Indeed, DEO's recent annualized dividend of 3.14/share (currently paid in semi-annual installments) works out to an annual yield of 1.58% based upon the recent $199.21 share price. Diageo plc (Symbol: DEO) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Diageo plc an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of DEO entered into oversold territory, changing hands as low as $189.145 per share.
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Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DEO is its dividend history. Diageo plc (Symbol: DEO) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Diageo plc an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of DEO entered into oversold territory, changing hands as low as $189.145 per share.
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Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DEO is its dividend history. Diageo plc (Symbol: DEO) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Diageo plc an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of DEO entered into oversold territory, changing hands as low as $189.145 per share.
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13017cb0-091d-4af6-9dd7-46308daa13c9
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727640.0
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2022-02-21 00:00:00 UTC
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Diageo Commences Third Phase Of Return Of Capital Programme
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DEO
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https://www.nasdaq.com/articles/diageo-commences-third-phase-of-return-of-capital-programme
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nan
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nan
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(RTTNews) - Diageo plc (DGE.L, DEO), on Monday, announced the commencement of its the third phase of its previously announced return of capital or ROC programme of up to £4.5 billion to shareholders to be completed during fiscal 23.
Under the first two phases of the ROC programme, which were completed on 31 January 2020 and 11 February 2022 respectively, Diageo repurchased shares with an aggregate value of £2.25 billion.
Diageo said it has entered into a non-discretionary agreement with UBS AG London Branch to enable the company to buy back shares with an aggregate value of up to £1.7 billion, of which the repurchase of shares with an aggregate value of up to £1.4 billion will be completed by 30 June 2022.
In each case the aggregate value of shares repurchased would be net of any fees payable to or by UBS under the terms of the agreement. This agreement would commence on 21 February 2022 and will end no later than 5 October 2022. The purpose of the repurchases is to reduce the share capital of Diageo and all shares repurchased under this agreement will be cancelled, the company stated.
Further, the company noted that the third phase of the ROC programme, under which up to £1.7 billion of shares would be repurchased, would occur within the limitations of Diageo's existing general authority to repurchase up to 233,611,282 shares granted at its 2021 Annual General Meeting.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Diageo plc (DGE.L, DEO), on Monday, announced the commencement of its the third phase of its previously announced return of capital or ROC programme of up to £4.5 billion to shareholders to be completed during fiscal 23. Under the first two phases of the ROC programme, which were completed on 31 January 2020 and 11 February 2022 respectively, Diageo repurchased shares with an aggregate value of £2.25 billion. Diageo said it has entered into a non-discretionary agreement with UBS AG London Branch to enable the company to buy back shares with an aggregate value of up to £1.7 billion, of which the repurchase of shares with an aggregate value of up to £1.4 billion will be completed by 30 June 2022.
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(RTTNews) - Diageo plc (DGE.L, DEO), on Monday, announced the commencement of its the third phase of its previously announced return of capital or ROC programme of up to £4.5 billion to shareholders to be completed during fiscal 23. Under the first two phases of the ROC programme, which were completed on 31 January 2020 and 11 February 2022 respectively, Diageo repurchased shares with an aggregate value of £2.25 billion. The purpose of the repurchases is to reduce the share capital of Diageo and all shares repurchased under this agreement will be cancelled, the company stated.
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(RTTNews) - Diageo plc (DGE.L, DEO), on Monday, announced the commencement of its the third phase of its previously announced return of capital or ROC programme of up to £4.5 billion to shareholders to be completed during fiscal 23. Diageo said it has entered into a non-discretionary agreement with UBS AG London Branch to enable the company to buy back shares with an aggregate value of up to £1.7 billion, of which the repurchase of shares with an aggregate value of up to £1.4 billion will be completed by 30 June 2022. The purpose of the repurchases is to reduce the share capital of Diageo and all shares repurchased under this agreement will be cancelled, the company stated.
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(RTTNews) - Diageo plc (DGE.L, DEO), on Monday, announced the commencement of its the third phase of its previously announced return of capital or ROC programme of up to £4.5 billion to shareholders to be completed during fiscal 23. Under the first two phases of the ROC programme, which were completed on 31 January 2020 and 11 February 2022 respectively, Diageo repurchased shares with an aggregate value of £2.25 billion. Diageo said it has entered into a non-discretionary agreement with UBS AG London Branch to enable the company to buy back shares with an aggregate value of up to £1.7 billion, of which the repurchase of shares with an aggregate value of up to £1.4 billion will be completed by 30 June 2022.
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81da1167-a9a3-48f6-a3a0-df93a94fea34
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727641.0
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2022-02-17 00:00:00 UTC
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Boston Beer (SAM) Q4 Earnings & Revenues Miss on Soft Trends
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DEO
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https://www.nasdaq.com/articles/boston-beer-sam-q4-earnings-revenues-miss-on-soft-trends
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nan
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nan
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The Boston Beer Company, Inc. SAM reported an adjusted loss per share of 9 cents in fourth-quarter 2021, reflecting a significant decline from adjusted earnings of $6.78 per share reported in fourth-quarter 2020. The loss per share also significantly lagged the Zacks Consensus Estimate of earnings of $3.27. The dismal results were mainly due to the decrease in revenues due to lower shipment volumes, partly offset by lower operating expenses.
Net revenues declined 24.5% year over year to $348.1 million and missed the Zacks Consensus Estimate of $437.1 million. Excluding excise taxes, the top line fell 24.2% year over year to $373.7 million. The decline mainly stemmed from lower production and shipment volumes due to the slowdown in growth trends for the Hard Seltzer category. The Hard Seltzer category’s growth decelerated to 13% from 158% in 2020.
Shipment volume fell 24.5% to 1.5 million barrels in the fourth quarter, driven by declines in the Truly Hard Seltzer and Angry Orchard brands, partially offset by increases in Twisted Tea, Samuel Adams and Dogfish Head brands. The fourth-quarter shipment decrease also resulted from a more aggressive wholesaler inventory reduction than expected, primarily affecting Truly Hard Seltzer.
In the fourth quarter, the company recorded total indirect volume adjustment costs of $52 million, of which $9.2 million was accounted as a reduction in net revenues and $42.8-million as an increase in the cost of goods sold.
Depletions grew 15% on gains in the Twisted Tea, Samuel Adams, Truly Hard Seltzer, Angry Orchard and Dogfish Head brands. This marked the 14th successive quarter of double-digit growth in depletions. All of the company’s brands grew depletions in the fourth quarter, with Twisted Tea being the fastest-growing one of the top 25 brands in the fourth quarter. Truly generated 57% of all hard seltzer category growth in the quarter. Additionally, the Truly brand increased household penetration by 22%, making it the second-highest penetrated brand in all of beer.
Depletions for the year-to-date period (the seven weeks) ended Feb 12, 2022, have declined 26% from that witnessed in the year-ago period. For the same period, shipments have decreased 26%.
Shares of Boston Beer declined 7.1% in the after-hours trading session on Feb 17 on dismal earnings results, and the ongoing impacts of the slowdown in the hard seltzer business trends and supply-chain headwinds. The Zacks Rank #3 (Hold) stock has lost 13.6% in the past three months compared with the industry’s 2.4% decline.
Image Source: Zacks Investment Research
Costs & Margins
The gross profit declined 53.9% year over year to $99.8 million. The gross margin contracted 1,820 basis points to 28.7% from 46.9% in the year-ago quarter, owing to the aforementioned indirect volume adjustment costs as a result of the hard seltzer slowdown and higher materials costs, partly negated by price increases.
Advertising, promotional and selling expenses fell 2.6% in the reported quarter to $137.7 million. The decline was driven by lower brand investments, particularly in media and production, offset by higher investments in local marketing and increased freight to distributors, owing to higher freight rates.
General and administrative expenses increased 17.6% year over year to $36.7 million mainly due to a rise in external services costs, increased salaries and benefits costs.
Financials
As of Dec 25, 2021, Boston Beer had cash and cash equivalents of $26.9 million, and total stockholders’ equity of $983.4 million. The company currently has $150 million in its line of credit, which, along with its cash position, will be sufficient to meet cash requirements.
For 2022, capital spending is anticipated to be $140-$190 million, backed by the current spending and investment plans.
Outlook
For 2022, Boston Beer envisions adjusted earnings per share of $11.00-$16.00, excluding the impacts of ASU 2016-09. However, it expects the earnings guidance to be highly sensitive to changes in volume projections mainly due to the slowdown in the hard seltzer category and the supply-chain performance.
Depletions and shipments are predicted to increase 4-10%. The company expects distributors to keep inventory levels below 2021 levels in terms of weeks on hand, as the need for peak season inventory pre-builds is greatly reduced due to its increased production capacity. Consequently, it expects shipments to decline in the first quarter and return to growth in the second quarter. The company expects national price increases of 3-5%.
It anticipates a gross margin of 45-48%. Investments in advertising, promotional and selling expenses are expected to be $0-$20 million. The advertising, promotional and selling guidance does not assume any changes in freight costs for the shipment of products to its distributors. The non-GAAP effective tax rate is anticipated to be 26%, excluding the impacts of ASU 2016-09.
Stocks to Consider
We highlighted some better-ranked stocks from the broader Consumer Staples space, namely Diageo DEO, Brown-Forman (BF.B) and Coca-Cola KO.
Diageo currently has a Zacks Rank #2 (Buy) and an expected long-term earnings growth rate of 9.2%. The company has declined 5.4% in the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Diageo’s current financial-year sales and earnings per share suggests growth of 32.1% and 15.9%, respectively, from the corresponding year-ago reported numbers. The consensus mark for DEO’s earnings per share has moved up 1.5% in the past 30 days.
Brown-Forman currently has a Zacks Rank of 2. BF.B has a trailing four-quarter negative earnings surprise of 5.3%, on average. The company has declined 8.4% in the past three months.
The Zacks Consensus Estimate for Brown-Forman's current financial-year sales and earnings suggests growth of 8.1% and 3.7%, respectively, from the prior-year reported number. The consensus mark for BF.B’s earnings per share has moved up by a penny in the past 30 days.
Coca-Cola currently has a Zacks Rank #2. KO has a trailing four-quarter earnings surprise of 13.5%, on average. It has an expected long-term earnings growth rate of 8%. The company has increased 9.9% in the past three months.
The Zacks Consensus Estimate for Coca-Cola’s current financial-year sales and earnings per share suggests growth of 9% and 6%, respectively, from the corresponding year-ago reported numbers. The consensus mark for KO’s earnings per share has moved up 2.1% in the past seven days.
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BrownForman Corporation (BF.B): Free Stock Analysis Report
CocaCola Company The (KO): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
The Boston Beer Company, Inc. (SAM): 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.
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Stocks to Consider We highlighted some better-ranked stocks from the broader Consumer Staples space, namely Diageo DEO, Brown-Forman (BF.B) and Coca-Cola KO. The consensus mark for DEO’s earnings per share has moved up 1.5% in the past 30 days. Diageo plc (DEO): Free Stock Analysis Report
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Stocks to Consider We highlighted some better-ranked stocks from the broader Consumer Staples space, namely Diageo DEO, Brown-Forman (BF.B) and Coca-Cola KO. The consensus mark for DEO’s earnings per share has moved up 1.5% in the past 30 days. Diageo plc (DEO): Free Stock Analysis Report
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Stocks to Consider We highlighted some better-ranked stocks from the broader Consumer Staples space, namely Diageo DEO, Brown-Forman (BF.B) and Coca-Cola KO. The consensus mark for DEO’s earnings per share has moved up 1.5% in the past 30 days. Diageo plc (DEO): Free Stock Analysis Report
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The consensus mark for DEO’s earnings per share has moved up 1.5% in the past 30 days. Stocks to Consider We highlighted some better-ranked stocks from the broader Consumer Staples space, namely Diageo DEO, Brown-Forman (BF.B) and Coca-Cola KO. Diageo plc (DEO): Free Stock Analysis Report
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4ffd1fe5-8eee-461a-a34e-f0907010c675
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727642.0
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2022-02-15 00:00:00 UTC
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HEINY or DEO: Which Is the Better Value Stock Right Now?
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DEO
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https://www.nasdaq.com/articles/heiny-or-deo%3A-which-is-the-better-value-stock-right-now
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nan
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nan
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Investors with an interest in Beverages - Alcohol stocks have likely encountered both Heineken NV (HEINY) 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Heineken NV and Diageo are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have 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.
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 21, while DEO has a forward P/E of 26.18. We also note that HEINY has a PEG ratio of 0.84. 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 2.84.
Another notable valuation metric for HEINY is its P/B ratio of 3.25. 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 9.19.
These are just a few of the metrics contributing to HEINY's Value grade of B and DEO's Value grade of D.
Both HEINY and DEO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HEINY is the superior value option right now.
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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.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors with an interest in Beverages - Alcohol stocks have likely encountered both Heineken NV (HEINY) and Diageo (DEO). HEINY currently has a forward P/E ratio of 21, while DEO has a forward P/E of 26.18. DEO currently has a PEG ratio of 2.84.
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These are just a few of the metrics contributing to HEINY's Value grade of B and DEO's Value grade of D. Both HEINY and DEO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HEINY is the superior value option right now. Investors with an interest in Beverages - Alcohol stocks have likely encountered both Heineken NV (HEINY) and Diageo (DEO). HEINY currently has a forward P/E ratio of 21, while DEO has a forward P/E of 26.18.
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Investors with an interest in Beverages - Alcohol stocks have likely encountered both Heineken NV (HEINY) and Diageo (DEO). These are just a few of the metrics contributing to HEINY's Value grade of B and DEO's Value grade of D. Both HEINY and DEO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HEINY is the superior value option right now. HEINY currently has a forward P/E ratio of 21, while DEO has a forward P/E of 26.18.
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Investors with an interest in Beverages - Alcohol stocks have likely encountered both Heineken NV (HEINY) and Diageo (DEO). These are just a few of the metrics contributing to HEINY's Value grade of B and DEO's Value grade of D. Both HEINY and DEO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HEINY is the superior value option right now. HEINY currently has a forward P/E ratio of 21, while DEO has a forward P/E of 26.18.
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2022-02-14 00:00:00 UTC
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7 Food Stocks to Store Up On Amid Inflation Concerns
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DEO
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https://www.nasdaq.com/articles/7-food-stocks-to-store-up-on-amid-inflation-concerns
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you depend on the retail market, like most food stocks do, then you either need a strong niche or a powerful collection of brands. These stocks fit that bill.
As inflation continues to rise, the food business gets squeezed. The bigger brands can last longer in this environment because they have more pricing power and volume.
By that I mean they can control their costs of inputs better and they can be more flexible in the price increases they pass on. It’s a fine balance of increasing revenue and reducing their margin shrinkage.
But that’s where the brands come in. Consumers that are brand loyal will eat higher prices — up to a point — to stay within their consumer comfort zone. Walking away from a brand can be a psychological shift that changes consumers’ buying patterns significantly. Good companies can manage this.
7 Tech Stocks Set for Strong Gains in February
The food and drink stocks below are major brands that will do much better during high inflation than smaller competitors with less pricing latitude.
Diageo (NYSE:DEO)
Keurig Dr Pepper (NASDAQ:KDP)
Mondelez (NASDAQ:MDLZ)
PepsiCo (NASDAQ:PEP)
Hershey (NYSE:HSY)
JM Smucker (NYSE:SJM)
Tyson Foods (NYSE:TSN)
Food Stocks: Diageo (DEO)
Source: IgorGolovniov / Shutterstock.com
If you’re someone who enjoys an adult beverage now and again, or buys adult beverages for post-Covid gatherings, it’s likely that you’re a customer of a DEO brand or two.
DEO is the second-largest spirits company in the world and the largest retailer of Scotch whiskies. It has over 200 brands from beer to baijiu. It also owns a large share of luxury retailer LVMH’s (OTCMKTS:LVMUY) Moet Hennessy brands.
Its influence is significant. And while it does have some beer brands under its banner, its real power is in liquor brands. That’s a good thing, because at this point there is a definite trend that is bending toward liquor with younger generations.
Certainly there are new concoctions that beer companies are continually bringing to market to capture the zeitgeist, but the longer-term trend continues to bend toward liquor sales. And DEO is over 180 countries. The trend is its friend.
DEO stock has gained 18% in the past 12 months, and has only been hit by the recent selloff. That’s made it a bit more reasonably priced and well positioned for continued long-term growth. It has a nearly 2% dividend as well.
This stock has an “A” rating in my Portfolio Grader.
Keurig Dr Pepper (KDP)
Source: Shutterstock
While the original Green Mountain Coffee Roasters brand began 41 years ago in Vermont, it was the in the early 1990s that business really took off. That’s when Keurig was born.
KDP looked to change the way offices made coffee and began introducing its coffee and new single-cup coffee makers into offices. The rest is the story of expanding that brand to retail consumers and then adding new labels to complement its hot beverages.
In 2016, the company was bought by private equity firm JAB and in 2018 Dr. Pepper was acquired. It then changed its name and got a new ticker symbol. Since then, it has expanded its soft drinks line with a number of niche brands, both carbonated and non-carbonated. It’s now the third-largest beverage company in the U.S.
KDP stock has fared very well in this tumultuous market. It has gained 20% in the past 12 months and has gained 7% in the past three months. It also has a nearly 2% dividend.
7 Badly Bruised Stocks to Buy for the Tough-as-Nails Contrarian
This stock has an “A” rating in my Portfolio Grader.
Food Stocks: Mondelez (MDLZ)
Source: Shutterstock
When you’re a snack food and beverage company with a $92 billion market cap, you cover a lot of the shelves in the supermarket. What’s more, MDLZ also has an 11% stake in KDP to further diversify its interests.
Spun off from Kraft Foods in 2012, MDLZ has a host of familiar brands including Cadbury, Oreo, Ritz, Sour Patch, Triscuit, Toblerone and others. These are iconic brands that are well known around the world. In the U.S., they dominate grocery store shelves and, more importantly, consumers’ shopping carts. Many of the brands are unique, so they’re difficult to find substitutes for.
MDLZ stock has been another solid performer, gaining 22% in the past 12 months and more than 7% in the past three months. It also has a 2.1% dividend.
This stock has a “B” rating in my Portfolio Grader.
PepsiCo (PEP)
Source: FotograFFF / Shutterstock.com
PEP recently reported earnings and they were good. They beat expectations and revenue was up. The one warning sign was its decreasing margins. That indicates PEP is trying to manage higher prices of inputs while not passing all of them on to customers.
Food stocks are a low-margin business for the most part. And selling in large volumes helps when you have strong brands like PEP does. Remember it doesn’t only have its sodas and non-carbonated beverages, but it also owns Quaker Foods and Frito-Lay. All these brands are in markets around the globe.
Its $238 billion market cap reflects its influence, and this is the kind of stock that can navigate the current market turbulence and come out stronger. It has the cash to buy weakened rivals in strategic markets and also maximize its current product lines.
PEP stock has gained 26% in the past 12 months, and 4% in the past three months. It also has a 2.5% dividend.
7 Undervalued Stocks to Buy After the Sell-off
This stock has an “A” rating in my Portfolio Grader.
Food Stocks: Hershey (HSY)
Source: George Sheldon / Shutterstock.com
When you’re a confectioner with a $41 billion market cap, you’re in pretty rarified air. Most of its competition has been bought out and rolled into other big food stocks — some of which are in this article.
And the thing is, HSY has been focused on this work since 1894. What you should take from that is it’s very good at what it does. And it has been through far worse than the current market volatility.
Managing a business solely focused on one key input isn’t what they teach at business grad school, but HSY has made it work incredibly well. And in times like these, having HSY in your portfolio is a very good choice.
HSY stock has posted gains in the past 12 months (35%), three months (15%) and year-to-date (6%). That’s a lot better than the S&P 500. And it has a 1.8% dividend.
This stock has an “A” rating in my Portfolio Grader.
JM Smucker (SJM)
Source: JHVEPhoto / Shutterstock.com
SJM is another niche player that has been around since the late 19th Century. And while its signature product is its jams and jellies, it also has small line of products that have allowed to diversify over the years.
Today is also owns Crisco, Jif (to go with the jelly of course), Folger’s and Dunkin Donuts coffees, as well as a number of popular pet foods like Nature’s Recipe, MeowMix and Milk-Bone, among other brands.
It’s a boutique mix and SJM stock has a $14.5 billion market cap, so it’s a small, large cap, with strong market share in the sectors where it competes.
SJM stock is another proven veteran of the food stocks industry and has gained 21% in the past 12 months and 7% in the past three months, as other stocks have wilted. It also has a rock-solid dividend of nearly 3%.
7 Tech Stocks Set for Strong Gains in February
This stock has an “A” rating in my Portfolio Grader.
Food Stocks: Tyson Foods (TSN)
Source: Daniel J. Macy / Shutterstock.com
TSN is one of biggest chicken producers in the world. It operates in 10 countries on five different continents. It has an Asia division as well as a Europe division, but it also has a specific China/South Korea division as well as operations in North America.
That means it’s operating in the biggest markets in the world. That kind of global reach for its constantly in-demand products give it significant pricing power. What’s more, TSN is vertically integrated, so it’s able to control its costs better than smaller operations. And much of the risk in raising the chickens is on the shoulders of its contractors who raise the chickens until it time to process them.
And not to be outdone by near-meat competitors, TSN is also working on vegetarian chicken substitutes.
TSN stock is the top performer of the food stocks here, with a 12-month return nearing 50%, and a three-month return of 20%. What’s more, TSN is trading at a price-to-earnings ratio below 10x, and it still has a dividend of 1.9%.
This stock has an “A” rating in my Portfolio Grader.
On the date of publication, Louis Navellier has positions in MDLZ and PEP in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
The post 7 Food Stocks to Store Up On Amid Inflation Concerns 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.
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Diageo (NYSE:DEO) Keurig Dr Pepper (NASDAQ:KDP) Mondelez (NASDAQ:MDLZ) PepsiCo (NASDAQ:PEP) Hershey (NYSE:HSY) JM Smucker (NYSE:SJM) Tyson Foods (NYSE:TSN) Food Stocks: Diageo (DEO) Source: IgorGolovniov / Shutterstock.com If you’re someone who enjoys an adult beverage now and again, or buys adult beverages for post-Covid gatherings, it’s likely that you’re a customer of a DEO brand or two. DEO is the second-largest spirits company in the world and the largest retailer of Scotch whiskies. And DEO is over 180 countries.
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Diageo (NYSE:DEO) Keurig Dr Pepper (NASDAQ:KDP) Mondelez (NASDAQ:MDLZ) PepsiCo (NASDAQ:PEP) Hershey (NYSE:HSY) JM Smucker (NYSE:SJM) Tyson Foods (NYSE:TSN) Food Stocks: Diageo (DEO) Source: IgorGolovniov / Shutterstock.com If you’re someone who enjoys an adult beverage now and again, or buys adult beverages for post-Covid gatherings, it’s likely that you’re a customer of a DEO brand or two. DEO is the second-largest spirits company in the world and the largest retailer of Scotch whiskies. And DEO is over 180 countries.
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Diageo (NYSE:DEO) Keurig Dr Pepper (NASDAQ:KDP) Mondelez (NASDAQ:MDLZ) PepsiCo (NASDAQ:PEP) Hershey (NYSE:HSY) JM Smucker (NYSE:SJM) Tyson Foods (NYSE:TSN) Food Stocks: Diageo (DEO) Source: IgorGolovniov / Shutterstock.com If you’re someone who enjoys an adult beverage now and again, or buys adult beverages for post-Covid gatherings, it’s likely that you’re a customer of a DEO brand or two. DEO is the second-largest spirits company in the world and the largest retailer of Scotch whiskies. And DEO is over 180 countries.
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Diageo (NYSE:DEO) Keurig Dr Pepper (NASDAQ:KDP) Mondelez (NASDAQ:MDLZ) PepsiCo (NASDAQ:PEP) Hershey (NYSE:HSY) JM Smucker (NYSE:SJM) Tyson Foods (NYSE:TSN) Food Stocks: Diageo (DEO) Source: IgorGolovniov / Shutterstock.com If you’re someone who enjoys an adult beverage now and again, or buys adult beverages for post-Covid gatherings, it’s likely that you’re a customer of a DEO brand or two. DEO is the second-largest spirits company in the world and the largest retailer of Scotch whiskies. And DEO is over 180 countries.
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0776bbfa-3da6-4efd-bb47-18477f29d980
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727644.0
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2022-02-14 00:00:00 UTC
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DEO Crosses Below Key Moving Average Level
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DEO
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https://www.nasdaq.com/articles/deo-crosses-below-key-moving-average-level
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nan
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nan
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In trading on Monday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $198.61, changing hands as low as $198.23 per share. Diageo plc shares are currently trading off about 1.6% 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 $156.66 per share, with $223.14 as the 52 week high point — that compares with a last trade of $198.56.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $198.61, changing hands as low as $198.23 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 $156.66 per share, with $223.14 as the 52 week high point — that compares with a last trade of $198.56. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $198.61, changing hands as low as $198.23 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 $156.66 per share, with $223.14 as the 52 week high point — that compares with a last trade of $198.56. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $198.61, changing hands as low as $198.23 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 $156.66 per share, with $223.14 as the 52 week high point — that compares with a last trade of $198.56. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $198.61, changing hands as low as $198.23 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 $156.66 per share, with $223.14 as the 52 week high point — that compares with a last trade of $198.56. Diageo plc shares are currently trading off about 1.6% on the day.
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a4d25b7b-0dac-4052-8ab9-c1ee31995ef7
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727645.0
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2022-02-10 00:00:00 UTC
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PepsiCo (PEP) Q4 Earnings In Line, Revenues Beat Estimates
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DEO
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https://www.nasdaq.com/articles/pepsico-pep-q4-earnings-in-line-revenues-beat-estimates
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nan
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nan
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PepsiCo, Inc. PEP reported robust fourth-quarter 2021 results, wherein earnings were in line with estimates but revenues beat the same. Both the top and bottom lines improved year over year. The company continued to benefit from investments in brands, go-to-market systems, supply chains, manufacturing capacity and digital capabilities to build competitive advantages. It also gained from the resilience and strength of global beverage and convenient food businesses.
For full-year 2021, the company reported organic revenue growth of 9.5% and core constant-currency earnings per share (EPS) growth of 12%.
Shares of the Zacks Rank #4 (Sell) company have risen 27.4% in the past year compared with the industry’s 19.4% rally.
Image Source: Zacks Investment Research
Quarter in Detail
PepsiCo’s fourth-quarter core EPS of $1.53 was in line with the Zacks Consensus Estimate and increased 4.1% year over year. In constant currency, core earnings were up 4% from the year-ago period. The company’s reported EPS of 95 cents declined 28.6% year over year.
Net revenues of $25,248 million improved 12.4% year over year and surpassed the Zacks Consensus Estimate of $24,285 million. Revenues benefited from volume growth and robust price/mix in the reported quarter. Unit volume improved 4% and 7% year over year for convenient food and beverage businesses, respectively.
On an organic basis, revenues grew 11.9% year over year, driven by broad-based growth across categories and geographies. Consolidated organic volume was up 5% and price/mix improved 7% year over year for the fourth quarter. Pricing gains were driven by strong realized prices across all segments, except APAC.
PepsiCo, Inc. Price, Consensus and EPS Surprise
PepsiCo, Inc. price-consensus-eps-surprise-chart | PepsiCo, Inc. Quote
Revenues were aided by acceleration across both global beverage and convenient food businesses. On a year-over-year basis, organic revenues grew 11% for the beverage business and 13% for the convenient food business. Region-wise, organic revenues improved 12% for the North America business and 11% for the international business.
On a consolidated basis, the reported gross profit increased 9.1% year over year to $13,118 million. Core gross profit rose 10% year over year to $13,194 million. The reported gross margin contracted 161 basis points (bps) while core gross margin declined 122 bps.
The reported operating income of $2,562 million was down 9.3% year over year. Core operating income declined 3.8% year over year to $2,740 million and core constant-currency operating income fell 4%. The reported operating margin fell 244 bps while core operating margin declined 183 bps. The soft margin performance can be attributed to impacts of supply-chain disruptions and inflationary pressures from labor, transportation as well as commodity costs. Additionally, operating margin was impacted by double-digit growth in advertising and marketing expenses and other planned business investments.
Segment Details
On a segmental basis, the company witnessed revenue growth across all segments. Organic revenues also ascended for all segments. Revenues for the QFNA segment remained flat with the last year, on both reported and organic basis.
Revenues, on a reported basis, improved 13% in FLNA, 9% in QFNA, 13% in PBNA, 16% in Latin America, 8% in Europe, 13% in AMESA and 18% in APAC segments. Organic revenues increased 13% for FLNA, 9% for QFNA, 12% for PBNA, 17% for Latin America, 9% for Europe, 8% for AMESA and 13% for APAC segments.
Operating profit (on a reported basis) increased 10% for FLNA, 8% for QFNA and 21% for Latin America. Yet, it declined 10% for PBNA, 16% for Europe, 29% for AMESA and 25% for APAC.
Financials
The company ended 2021 with cash and cash equivalents of $5,596 million, long-term debt of $36,026 million, and shareholders’ equity (excluding non-controlling interest) of $16,043 million.
Net cash used in operating activities was $11,616 million as of Dec 25, 2021 compared with $10,613 million on Dec 26, 2020.
PEP announced a 7% increase in its annualized dividend to $4.60 per share from $4.30. The raised dividend will be paid out in June 2022. This marks PEP’s 50th consecutive dividend increase.
Outlook
Looking into 2022, PepsiCo expects to retain the strength and momentum witnessed in 2021. It expects to benefit from the continued shift of consumer preferences toward convenience, variety and portion control. The company expects its products and packages to benefit from this trend. Yet, it anticipates persistent headwinds from commodity, transportation and labor cost inflation. PEP anticipates mitigating these impacts from revenue management capabilities and productivity initiatives.
For 2022, PepsiCo anticipates organic revenue growth of 6%, which is at the high-end of its long-term target. This is likely to reflect significant growth in organic revenues on a two-year basis. Core constant-currency earnings per share are expected to increase 8% from a year ago. Consequently, it estimates core earnings per share of $6.67 for 2022, representing a 6.5% increase from $6.26 reported in 2021.
Core earnings per share are anticipated to reflect the impacts of inflationary costs across the value chain and planned investments in its business. PEP expects currency headwinds to hurt revenues and core earnings per share by 1.5 percentage points in 2022, based on the current rates. The company continues to expect a core effective tax rate of 20%.
PepsiCo remains committed to rewarding shareholders through dividends and share buybacks. The company anticipates total cash returns to shareholders of $7.7 million, including $6.2 million of cash dividends and $1.5 billion of share repurchases.
Don’t Miss These Better-Ranked Stocks
We have highlighted three better-ranked companies in the Beverages space, namely Brown-Forman (BF.B), Diageo DEO and Bespoke Capital Acquisition VWE.
Brown-Forman, based in Louisville, KY, manufactures, distills, bottles, imports, exports, markets and sells a wide variety of alcoholic beverages under recognized brands. The company presently flaunts a Zacks Rank #2 (Buy). BF.B has declined 11.1% 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 Brown-Forman’s sales and EPS for the current financial year suggests growth of 7.9% and 3.1%, respectively, from the year-ago reported levels. BF.B has a trailing four-quarter negative earnings surprise of 5.3%, on average.
Diageo, involved in producing, distilling, brewing, bottling, packaging as well as distributing spirits, wine, and beer, presently holds a Zacks Rank #2. Shares of DEO have risen 24.2% in the past year.
The Zacks Consensus Estimate for Diageo’s sales and EPS for the current financial year suggests respective growth of 32.1% and 15.9% from the year-ago reported figures. DEO has an expected EPS growth rate of 9.2% for three to five years.
Bespoke Capital, a producer and seller of wines and craft spirits in the United States, Canada, and internationally, presently carries a Zacks Rank #2. Shares of VWE have declined 17.1% in the past year.
The Zacks Consensus Estimate for Bespoke Capital’s sales and EPS for the current financial year suggests respective growth of 147.9% and 29.7% from the year-ago reported figures.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.
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BrownForman Corporation (BF.B): Free Stock Analysis Report
PepsiCo, Inc. (PEP): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
Vintage Wine Estates, Inc. (VWE): 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.
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Don’t Miss These Better-Ranked Stocks We have highlighted three better-ranked companies in the Beverages space, namely Brown-Forman (BF.B), Diageo DEO and Bespoke Capital Acquisition VWE. Shares of DEO have risen 24.2% in the past year. DEO has an expected EPS growth rate of 9.2% for three to five years.
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Don’t Miss These Better-Ranked Stocks We have highlighted three better-ranked companies in the Beverages space, namely Brown-Forman (BF.B), Diageo DEO and Bespoke Capital Acquisition VWE. Shares of DEO have risen 24.2% in the past year. DEO has an expected EPS growth rate of 9.2% for three to five years.
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Don’t Miss These Better-Ranked Stocks We have highlighted three better-ranked companies in the Beverages space, namely Brown-Forman (BF.B), Diageo DEO and Bespoke Capital Acquisition VWE. Shares of DEO have risen 24.2% in the past year. DEO has an expected EPS growth rate of 9.2% for three to five years.
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Don’t Miss These Better-Ranked Stocks We have highlighted three better-ranked companies in the Beverages space, namely Brown-Forman (BF.B), Diageo DEO and Bespoke Capital Acquisition VWE. Shares of DEO have risen 24.2% in the past year. DEO has an expected EPS growth rate of 9.2% for three to five years.
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727646.0
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2022-02-08 00:00:00 UTC
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7 Defensive Consumer Staples Stocks to Buy in a Falling Market
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DEO
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https://www.nasdaq.com/articles/7-defensive-consumer-staples-stocks-to-buy-in-a-falling-market
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Consumers tend to buy certain items regardless of economic conditions. These basic goods are essentially necessities, thus we refer to them as staple goods, or simply staples. They include food, beverages, personal hygiene products, household goods, and tobacco and alcohol. Since consumers buy these products regardless of economic cycles, consumer staple stocks perform in falling markets as well as rising markets.
That said, they tend to perform better than discretionary goods stocks in falling markets, but worse than discretionary goods stocks in rising markets.
The market has gone up and down in 2022. The Dow Jones Industrial Average is down more than 4% in that period, having slightly rebounded to begin February after sharply falling in January. That is causing some defensive behavior within the markets. That makes consumer staples, as defensive stocks, a group worth following.
We know that inflation numbers are worrisome. That should logically lead to weaker markets and stronger positions for consumer staple stocks. It won’t be as simple as that, though. We know supply chains remain disrupted. Other factors could hurt the sector as well.
7 Best Blue-Chip Stocks to Buy for Safety in This Volatile Market
But overall, that‘s why the group of stocks listed below have the right mix of factors to move upward in the coming weeks and months.
Costco (NASDAQ:COST)
BJ’s Wholesale Club (NYSE:BJ)
Walmart (NYSE:WMT)
Diageo (NYSE:DEO)
Celsius Holdings (NASDAQ:CELH)
PepsiCo (NASDAQ:PEP)
Procter & Gamble (NYSE:PG)
Consumer Staples Stocks: Costco (COST)
Source: ilzesgimene / Shutterstock.com
Costco is one of the most obvious stocks that comes to mind when thinking about staple goods and falling markets. Its business model is built on selling consumer goods in bulk. Few business models are better suited to our current economic environment.
People require staple goods at all times, Costco sells them in bulk, making the unit price cheaper. Want to hedge against rising grocery costs? Where do you go? The answer is often Costco.
Indeed, Costco has performed very well recently. The company reported $22.24 billion in net revenue in the month of December. That was a significantly higher figure than the $19.14 billion it reported in the same period a year earlier.
And it wasn’t simply a strong December. It was a very strong quarter leading into December. During the 18 week period leading up to the release of that report, Costco recorded $76.34 billion in net sales, up from $65.47 billion a year prior.
It seems that consumers had warmed to Costco’s business even prior to the recent inflation news that has triggered rising concerns.
BJ’s Wholesale Club (BJ)
Source: Helen89 / Shutterstock.com
BJ’s wholesale Club is smaller than the previous company listed in this article, Costco. It is the more regional of the two, catering to consumers primarily on the east coast of the U.S.
But BJ’s claim is the same: It consistently offers a 25% or greater discount on a representative basket of manufacturer-branded groceries compared to traditional supermarkets.
So, the logic for considering investing in BJ’s is similar. When we compare the metrics underpinning BJ’s, we see much of the same: Strong growth in uncertain times. The company’s third-quarter fiscal results, released in mid-November, show as much.
Sales increased 13.1% on a year-over-year basis, and 27.2% over the past two years. Its gasoline sales increased 24.2% over that period as well. And the company seems to be making strong progress in its bid to strengthen its ecommerce business. Digital sales grew 44% in Q3 alone.
7 Hot Stocks That Can Win in Either a Bull or Bear Market
The company also initiated a share repurchase program when Q3 earnings were released. It provides for the company to repurchase up to $500 million worth of shares through January 2025. All of these factors should keep BJ stock relatively healthy.
Consumer Staples Stocks: Walmart (WMT)
Source: Jonathan Weiss / Shutterstock.com
Consumers are becoming increasingly cost-conscious. Walmart is nearly synonymous with cost-conscious buyer behavior. It’s also the world’s largest retailer and boasts the greatest revenues of any company in the world.
Walmart is essentially growing in most ways imaginable. It operates in every state in the U.S. and 24 countries internationally. It seems investors really began to worry about inflation and the economy after the Federal Reserve released December inflation figures in January.
My guess is that Walmart’s numbers will improve because of that. Walmart released earnings in November which were strong. But I’d assert that upcoming numbers will be stronger because defensive behavior will rise on the part of consumers.
Those November numbers were strong. Q3 sales increased by 9.2% and were up 15.6% over the preceding two years. Ecommerce sales took off in 2020 and are up 87% since then. It wasn’t all good, though. International sales dropped 20.1%. However, wholesale revenue, from Sam’s Club, increased by 13.9% on a year-over-year basis. Sam’s Club could provide an extra boost to the company’s overall performance in the coming quarters for the same reasons Costco and BJ’s remain attractive.
Diageo (DEO)
Source: Shutterstock
Diageo is the parent company of many of the most ubiquitous alcohol brands. These include Johnnie Walker, Ketel One, Captain Morgan’s, Tanqueray, and Guinness to name a few. People tend to purchase and drink more alcohol during tough economic periods. So, the catalyst for DEO stock is fairly clear.
That has DEO stock worth considering. It’s a strong company with strong tailwinds. The company reported GBP 8 billion in revenue to end the second half of 2021. That led to GBP 2.7 billion in operating profits.
However, Diageo is in a bit of a bind. On the one hand, it recognized growth in tequila sales of 61% in the latter half of 2021. Its Don Julio tequila brand performed particularly well. However, tequila production is time intensive, requiring months or years of aging before it is ready to sell. High demand during the pandemic has depleted stocks.
7 Stocks to Buy as the Market Shakes Off Omicron Fears
So the question is how Diageo will balance the issue. It can raise prices to slow stock depletion. That could work. Or perhaps it finds a work around and replenishes inventory. It makes DEO stock intriguing in terms of price dynamics.
Consumer Staples Stocks: Celsius Holdings (CELH)
Source: Shutterstock
Before explaining Celsius Holdings’ business model, it’s important to know one thing: Analysts assume there’s a ton of upside priced into CELH stock. They’ve given it an average consensus target price of $110. It currently trades near $52.
The company sells sugar-free beverages marketed toward fitness-conscious consumers(1). They contain everything from caffeine, to BCAAs (branched-chain amino acid), to metabolism boosting supplements in both carbonated and non-carbonated drinks.
The reason investors should take notice is that Celsius Holdings is booming. At the end of Q3 ‘20 the firm recorded $36.8 million in revenues. A year later and that figure had risen to $94.9 million. That’s a growth rate of 157.6% over that period.
And that growth is primarily coming from North American markets which accounted for $84.5 million of that total $94.9 million of revenue. That growth is predicted to continue with consensus expectations that it will reach $491 million in 2022 revenues. It is expected that the company will hit approximately $302 million in 2021 revenues.
Celsius Holdings consumers are likely to splurge on its beverages whatever the economic climate, making it a solid choice.
PepsiCo (PEP)
Source: FotograFFF / Shutterstock.com
PepsiCo was already a stock to watch out for before the market took a turn to begin 2022. Revenues grew by 11.6% in Q3 and 13.2% YTD.
Those results filtered through to particularly strong EPS numbers, with CEO Ramon Laguarta noting:
“We are pleased with our results for the third quarter as we delivered very strong net revenue growth while carefully navigating a dynamic and volatile supply chain and cost environment. Given our year-to-date performance, we now expect our full-year organic revenue to increase approximately 8 percent and core constant currency earnings per share to increase at least 11 Percent.”
7 REITs With Major Upside Potential in 2022
The company has handled supply chain issues well. That is reflected in share prices which have increased from $140 to $175 over the past year. The company also pays a rock-solid $1.07 dividend that hasn’t been reduced since 1973. That’s another strong point of attraction in defensive times.
Consumer Staples Stocks: Procter & Gamble (PG)
Source: Jonathan Weiss / Shutterstock.com
Procter & Gamble released strong earnings on Jan. 19. The company outperformed expectations posting $21 billion in revenues and earnings per share of $1.66. Analysts had expected the consumer packaged goods giant to post $20.34 billions revenues and $1.65 EPS.
The company itself is predicting that rising consumer prices will continue to go up in 2022. It also expects that those continued rising prices will positively affect its share prices. The company expects higher profitability and increasing margins even in the face of rising rising prices and supply chain woes.
Procter & Gamble believes that consumer demand in clean home, health & hygiene sectors will protect it against broader economic issues. That held true in the last quarter, and PG stock is always a rock-solid choice in the consumer defensive sector.
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 Defensive Consumer Staples Stocks to Buy in a Falling Market 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.
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Costco (NASDAQ:COST) BJ’s Wholesale Club (NYSE:BJ) Walmart (NYSE:WMT) Diageo (NYSE:DEO) Celsius Holdings (NASDAQ:CELH) PepsiCo (NASDAQ:PEP) Procter & Gamble (NYSE:PG) Consumer Staples Stocks: Costco (COST) Source: ilzesgimene / Shutterstock.com Costco is one of the most obvious stocks that comes to mind when thinking about staple goods and falling markets. Diageo (DEO) Source: Shutterstock Diageo is the parent company of many of the most ubiquitous alcohol brands. So, the catalyst for DEO stock is fairly clear.
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Costco (NASDAQ:COST) BJ’s Wholesale Club (NYSE:BJ) Walmart (NYSE:WMT) Diageo (NYSE:DEO) Celsius Holdings (NASDAQ:CELH) PepsiCo (NASDAQ:PEP) Procter & Gamble (NYSE:PG) Consumer Staples Stocks: Costco (COST) Source: ilzesgimene / Shutterstock.com Costco is one of the most obvious stocks that comes to mind when thinking about staple goods and falling markets. Diageo (DEO) Source: Shutterstock Diageo is the parent company of many of the most ubiquitous alcohol brands. So, the catalyst for DEO stock is fairly clear.
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Costco (NASDAQ:COST) BJ’s Wholesale Club (NYSE:BJ) Walmart (NYSE:WMT) Diageo (NYSE:DEO) Celsius Holdings (NASDAQ:CELH) PepsiCo (NASDAQ:PEP) Procter & Gamble (NYSE:PG) Consumer Staples Stocks: Costco (COST) Source: ilzesgimene / Shutterstock.com Costco is one of the most obvious stocks that comes to mind when thinking about staple goods and falling markets. Diageo (DEO) Source: Shutterstock Diageo is the parent company of many of the most ubiquitous alcohol brands. So, the catalyst for DEO stock is fairly clear.
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Costco (NASDAQ:COST) BJ’s Wholesale Club (NYSE:BJ) Walmart (NYSE:WMT) Diageo (NYSE:DEO) Celsius Holdings (NASDAQ:CELH) PepsiCo (NASDAQ:PEP) Procter & Gamble (NYSE:PG) Consumer Staples Stocks: Costco (COST) Source: ilzesgimene / Shutterstock.com Costco is one of the most obvious stocks that comes to mind when thinking about staple goods and falling markets. Diageo (DEO) Source: Shutterstock Diageo is the parent company of many of the most ubiquitous alcohol brands. So, the catalyst for DEO stock is fairly clear.
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Diageo (DEO) 1H FY22 Earnings & Sales Improve on Robust Trends
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https://www.nasdaq.com/articles/diageo-deo-1h-fy22-earnings-sales-improve-on-robust-trends
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Diageo plc DEO reported interim results for the first half of fiscal 2022, ended Dec 31, 2021, wherein pre-exceptional earnings per share improved 22.5% year over year to 85.6 pence (in local currency). This was backed by robust sales growth, operating margin expansion and productivity savings, partially offset by higher taxation and adverse currency impact.
DEO’s stock rose 2.8% yesterday, driven by robust first-half fiscal 2022 results, reflecting continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains.
Shares of this currently Zacks Rank #3 (Hold) player have gained 25.3% in the past year compared with the industry’s growth of 6.9%.
Image Source: Zacks Investment Research
1H FY22 Highlights
On a reported basis, net sales increased 15.8%, driven by strong organic growth, partly negated by adverse currency effects. Organic net sales were up 20% year over year. Diageo witnessed double-digit organic sales growth across all five regions.
Organic sales in the first half of fiscal 2022 benefited from robust double-digit growth across all regions, backed by an effective marketing and exceptional commercial execution. Organic sales were also aided by a sustained recovery in the on-trade channel, continued strong consumer demand in the off-trade and market share gains. Improved market share was supported by favorable industry trends, with spirits expanding share of the total beverage alcohol and continued premiumization efforts.
Diageo plc Price and Consensus
Diageo plc price-consensus-chart | Diageo plc Quote
Organic volume improved 9%. Price/mix grew 11%, contributing to more than half of the net sales growth. Price/mix growth was driven by strength in premium plus brands, recovery in on-trade channel in North America and Europe, and a partial Travel Retail recovery.
In North America, Diageo’s largest market, sales accelerated 13% on recovery in on-trade, resilient consumer demand in the off-trade and share gains. Moreover, DEO witnessed sales growth of 27% in Europe, 13% in the Asia Pacific, 23% in Africa and 45% in Latin America and the Caribbean. Strong growth in Greater China and India primarily aided sales growth in the Asia Pacific, while sales continued to recover across the rest of the region. Growth across all markets, particularly in Nigeria and East Africa, aided sales growth in Africa.
Diageo also reported substantial growth across most categories, with growth of 56% slated for tequila, 27% for scotch and 22% for beer. Gains in the beer business were driven by growth of Guinness in Ireland, Great Britain and Africa. DEO’s premium plus brands contributed 56% to reported net sales and 74% to organic net sales growth.
Reported operating profit improved 22.5% owing to an improved organic operating profit. Reported operating margin expanded 190 basis points (bps). Organic operating profit rose 24.7% year over year, with organic operating margin expanding 131 bps. Organic operating profit gained from growth across all geographies. Organic operating margin growth was aided by a strong recovery in gross margin and operating cost leverage along with higher marketing investments. Moreover, growth was driven by supply productivity savings and price increases, which more than offset the higher cost inflation.
Financials
In the first half of fiscal 2022, Diageo delivered net cash from operating activities of £1.9 billion, marking a decline of £0.1 billion year over year. DEO reported strong free cash flow of £1.6 million, down £0.2 billion from the last-year level due to lapping of strong working capital benefits in the first half of fiscal 2021.
Diageo remains committed to its disciplined approach to capital allocation, primarily to enhance its shareholder value. DEO increased the interim dividend 5% to 29.36 pence per share. This reflects its strong liquidity position and confidence in the long-term health of its business.
Additionally, Diageo completed £0.5 billion of share repurchases as part of the return of capital program of up to £4.5 billion. As of December 2021, DEO completed £1.9 billion of its £4.5 billion program. DEO plans to accelerate the completion of its return of capital program, which is now expected to be concluded in fiscal 2023.
Looking for Solid Stocks? Check These
We highlighted three better-ranked companies in the Consumer Staples sector, namely United Natural Foods UNFI, Helen of Troy HELE and Medifast MED
United Natural, a leading distributor of natural, organic and specialty food and non-food products in the United States and Canada, presently flaunts a Zacks Rank #1 (Strong Buy). The UNFI stock has rallied 34% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for United Natural’s sales and EPS for the current financial year suggests growth of 5.1% and 8.8%, respectively, from the corresponding year-ago levels. UNFI has a trailing four-quarter earnings surprise of 35.4%, on average.
Helen of Troy, a leading consumer products player, presently sports a Zacks Rank of 1. HELE has a trailing four-quarter earnings surprise of 19.1%, on average. Shares of HELE have declined 15.7% in the past year.
The Zacks Consensus Estimate for Helen of Troy’s sales and EPS for the current financial year suggests respective growth of 0.8% and 0.6% from the corresponding year-ago period’s reported figures. HELE has an expected EPS growth rate of 8% for three to five years.
Medifast, a leading manufacturer and distributor of clinically-proven healthy living products and programs, presently has a Zacks Rank #2 (Buy). Shares of MED have declined 19.4% in the past year.
The Zacks Consensus Estimate for Medifast’s sales and EPS for the current financial year suggests respective growth of 63% and 49.3% from the corresponding year-ago period’s reported figures. FLO has a trailing four-quarter earnings surprise of 17.3%, on average.
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MEDIFAST INC (MED): 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.
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DEO’s stock rose 2.8% yesterday, driven by robust first-half fiscal 2022 results, reflecting continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains. Diageo plc DEO reported interim results for the first half of fiscal 2022, ended Dec 31, 2021, wherein pre-exceptional earnings per share improved 22.5% year over year to 85.6 pence (in local currency). Moreover, DEO witnessed sales growth of 27% in Europe, 13% in the Asia Pacific, 23% in Africa and 45% in Latin America and the Caribbean.
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DEO’s stock rose 2.8% yesterday, driven by robust first-half fiscal 2022 results, reflecting continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains. Diageo plc DEO reported interim results for the first half of fiscal 2022, ended Dec 31, 2021, wherein pre-exceptional earnings per share improved 22.5% year over year to 85.6 pence (in local currency). Moreover, DEO witnessed sales growth of 27% in Europe, 13% in the Asia Pacific, 23% in Africa and 45% in Latin America and the Caribbean.
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DEO’s premium plus brands contributed 56% to reported net sales and 74% to organic net sales growth. Diageo plc DEO reported interim results for the first half of fiscal 2022, ended Dec 31, 2021, wherein pre-exceptional earnings per share improved 22.5% year over year to 85.6 pence (in local currency). DEO’s stock rose 2.8% yesterday, driven by robust first-half fiscal 2022 results, reflecting continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains.
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Diageo plc DEO reported interim results for the first half of fiscal 2022, ended Dec 31, 2021, wherein pre-exceptional earnings per share improved 22.5% year over year to 85.6 pence (in local currency). DEO’s stock rose 2.8% yesterday, driven by robust first-half fiscal 2022 results, reflecting continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains. Moreover, DEO witnessed sales growth of 27% in Europe, 13% in the Asia Pacific, 23% in Africa and 45% in Latin America and the Caribbean.
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2022-01-28 00:00:00 UTC
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10 Best Stocks to Buy for Your Income-Generating Portfolio
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https://www.nasdaq.com/articles/10-best-stocks-to-buy-for-your-income-generating-portfolio
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With the Federal Reserve expected to start raising interest rates in March, some investors feel that this will make it more difficult to find winning stocks to buy. However, the idea that interest rates move markets is debatable.
As rates rise, it’s possible that income-concerned investors will be less incentivized to buy dividend-paying stocks, opting to put some funds in short-term fixed-income securities or even covered-call exchange-traded funds, such as the Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD), which writes call options on the Nasdaq-100 Index.
In March 2020, I put together a list of 10 stock recommendations for income-generating portfolios. Three months later, I did a revised version.
The stocks chosen were part of an income ladder, rising from a 1% yield (1.41%) for Brookfield Asset Management (NYSE:BAM) to a much-riskier 16.49% yield for Icahn Enterprises (NASDAQ:IEP), billionaire Carl Icahn’s holding company. Both have delivered decent gains over the past 19 months.
7 IT Stocks to Buy No Matter What Earnings Season Brings
I thought it might be time to repeat my exercise of selecting 10 stocks yielding at or around 1%, 2%, 3%, all the way to 10% or beyond.
American Express (NYSE:AXP)
Diageo (NYSE:DEO)
Pfizer (NYSE:PFE)
BP (NYSE:BP)
Store Capital (NYSE:STOR)
Camping World Holdings (NYSE:CWH)
British American Tobacco (NYSE:BTI)
Golub Capital BDC (NASDAQ:GBDC)
Rio Tinto (NYSE:RIO)
Artisan Partners Asset Management (NYSE:APAM)
The goal here is to generate a nice combination of income and capital gains from dividend-paying stocks over the long haul.
Stocks to Buy: American Express (AXP)
Market Capitalization: $135.8 billion
Dividend Yield: 1.2%
AXP) credit card sticking out of someone's pocket" width="300" height="169">
Source: Shutterstock
Financial services giant American Express reported Fourth-quarter results on Jan. 25. They were off-the-chart good with full-year revenue net of interest expense growing 17% year-over-year to $42.4 billion from $36.1 billion a year earlier. On the bottom line, net income jumped 161% higher to $8.1 billion versus $3.1 billion a year earlier.
The company sees revenue growth of 19% at the midpoint of its guidance in 2022, with earnings per share of $9.45. Longer-term, it expects to grow revenues and profits by 10% and 15%, respectively.
Most importantly, from an income perspective, AMEX will increase its quarterly dividend by 21% from 43 cents to 52 cents. The annual rate of $2.08 yields a reasonable 1.2%.
After the results were released, Bank of America analyst Mihir Bhatia upgraded AXP stock to “buy” from “neutral.” In a note to clients, the analyst wrote:
The investments AXP has been making through the pandemic, in both card-member retention and acquisitions, are starting to yield results that should drive faster top-line growth and operating leverage in the near-to-medium term, MarketWatch reported.
Diageo (DEO)
Market Capitalization: $113.4 billion
Dividend Yield: 2.0%
Source: IgorGolovniov / Shutterstock.com
Hot off the presses, Diageo reported its first-half sales on Jan. 27. Revenue rose 16% to GBP 8.0 billion ($10.7 billion) from GBP 6.9 billion ($9.2 billion) a year earlier. Further down the income statement, the liquor giant had an operating profit excluding exceptional items of GBP 2.74 billion ($3.66 billion), up 21.2% from GBP 2.26 billion ($3.02) a year earlier.
During the pandemic, the maker of Johnnie Walker scotch, Tanqueray gin, Captain Morgan rum and many other famous brands said consumers stocked up the home bar, leading to solid growth. Now that things are reopening, it’s time for bars and restaurants to step up their orders.
10 Stocks to Buy That Could Make You a Millionaire in 2022
The pandemic proved that in good times or bad, people are still going to have a drink. This makes Diageo not only a decent income generator but also a nice defensive stock in volatile times.
Stocks to Buy: Pfizer (PFE)
Market Capitalization: $297.5 billion
Dividend Yield: 3.0%
Source: photobyphm / Shutterstock.com
There is no question that Covid-19 has been a godsend for pharmaceutical giant Pfizer. The company expects to generate $36 billion in revenue in fiscal 2021. In the third quarter ended Oct. 3, 2021, its vaccine revenue accounted for 60% of its sales.
For all of 2021, vaccines will account for approximately 44% of its $81.5 billion in projected revenue. In 2022, vaccine revenue is expected to moderate, hitting $29 billion for the fiscal year. That’s still a significant sum.
In a rare disappointment, Pfizer’s treatment for pediatric growth hormone deficiency, developed in partnership with Opko Health (NASDAQ:OPK), was recently rejected by the U.S. Food and Drug Administration (FDA). Already approved in several countries, including Canada, the FDA’s rejection took the company by surprise. However, it is working with the agency to see how it can get the treatment’s ultimate approval.
If you think Pfizer is only a vaccine maker, think again. Scotia Wealth portfolio manager Stan Wong recently discussed the company’s strengths with the Cantech Letter. “I like Pfizer not because of the COVID-19 vaccines and antiviral drugs but their pipeline is really rapidly improving with several recent drug launches that have been very successful,” Cantech Letter reported. He said their cardiovascular drug seems to be very promising, expecting it to add to revenue and earnings going forward “in a major way.”
BP (BP)
Market Capitalization: $103.4 billion
Dividend Yield: 4.1%
Source: FotograFFF / Shutterstock.com
I’ve never been a fan of companies that peddle fossil fuels. I don’t like what they’re doing to the environment. However, until the world can fully transition to energy sources that don’t require fossil fuels, we are stuck with BP and its ilk.
Energy stocks haven’t done too well in recent years, another reason to avoid them, but there’s no question that they’re firing on all cylinders heading into 2022. Revenues are up. Profits are up. Life is good.
Of the big oil companies, I’m leaning toward BP stock because of the company’s realistic view of the energy sector’s future. It’s not in oil; let’s put it that way.
In September 2021, Reuters reported on BP CEO Bernard Looney’s plans to transition its business to renewable energy:
“He aims to slash BP’s output by 40%, or about 1 million barrels per day, an amount equal to the UK’s entire daily output in 2019. At the same time, BP would boost its capacity to generate electricity from renewable sources to 50 gigawatts, a 20-fold increase and equivalent to the power produced by 50 U.S. nuclear plants,” Reuters reported.
By investing in BP stock, you get to be on the right side of climate change, while making 4% on your money. What’s not to like?
Stocks to Buy: Store Capital (STOR)
Market Capitalization: $8.3 billion
Dividend Yield: 5.0%
Source: Shutterstock
This real estate investment trust (REIT) is probably best known because Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) is one of Store Capital’s largest shareholders at 9.04%. Only two other institutions own more. However, don’t get too excited. Warren Buffett’s stake in the REIT accounts for just 0.2% of the holding company’s $336 billion equity securities portfolio.
If you’re not familiar with Store Capital, it owns and manages single-tenant operational real estate. Its 2,788 properties are spread over 49 states, involving 538 companies. Its occupancy rate is a high 99.4%.
The REIT’s Q3 2021 presentation points out that its target market is almost 215,000 companies. It’s dealing with the cream of the crop. This allows it to be selective in who it does business with.
Camping World, one of the names on my list, is one of its top 10 customers. The top 10 accounts for 18.7% of the total base rent and 13.6% of the total properties.
Over the past six years, it’s grown its adjusted funds from operations by 5.1% per annum. That’s led to a 6.8% annual increase in its dividend.
STOR stock is not sexy but its business model works.
Camping World Holdings (CWH)
Market Capitalization: $2.8 billion
Dividend Yield: 6.1%
Source: IgorGolovniov / Shutterstock.com
On Jan. 24, Camping World announced an increase in its share repurchase program. The largest retailer of recreational vehicles (RVs) in the U.S. originally approved a $225 million buyback in October 2020.
It’s bought back approximately $177 million of that. The announcement provides an additional $152.7 million to its repurchase program. It now has roughly $200 million outstanding.
How’s it done repurchasing its shares? In the first nine months of 2021, it bought back $86.8 million of its stock at an average price of $39.30. Based on its current share price, it’s underwater by 17% on those purchases.
Typically, I’m against share repurchases because companies aren’t very good at knowing when their share prices are cheap. I believe that CWH stock is severely undervalued, so I’ll make an exception. It trades at 0.22x sales, the lowest multiple since 2018.
The company reported record revenue in the third quarter ended Sep. 30, 2021, up 14.2% to $2.97 billion. Its gross margin increased 431 basis points to 36.1%, and its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 32.7% to $288.0 million.
As a result, it upped its 2021 full-year adjusted EBITDA guidance to $922.5 million at the midpoint of its guidance, from $850 million previously.
I expect RVing to stay hot in 2022.
Stocks to Buy: British American Tobacco (BTI)
Market Capitalization: $97.6 billion
Dividend Yield: 7.0%
Source: DutchMen / Shutterstock.com
When you’re putting together one of these income ladders, it’s nice to know you’ve always got a tobacco company in your back pocket to score you some income. Companies like British American Tobacco are virtual printing presses, even today.
As its investor relations page states, the company is transforming its business, so the impact on society from its products is lower. That means new products that are healthier for consumers but still provide growth.
As part of its focus on reducing the harm it inflicts on customers with its cigarettes, in 2019, BAT moved to simplify its non-combustible products by creating three global brands: Vuse vapor products, Velo oral products, and Glo tobacco heating products.
BAT invested more than $4 billion in developing these products. Its goal is to generate GBP 5 billion ($6.7 billion) from its New Categories segment by 2025. Through the first nine months of 2021, it added 3.6 million consumers of its non-combustible products, more than in the entire 2020.
The plan is working.
Add in investments made by Btomorrow Ventures, the company’s venture capital arm, along with its 19.9% investment and partnership with Canada’s OrganiGram (NASDAQ:OGI), and you’ve got the makings of an entirely new business.
Golub Capital BDC (GBDC)
Market Capitalization: $2.6 billion
Dividend Yield: 7.7%
Source: shutterstock.com/CC7
Golub Capital BDC is a business development company. This means that it is required to distribute at least 90% of its profits to shareholders to remain in compliance with Section 54 of the Investment Company Act of 1940.
It lends its capital to middle-market businesses, defined as having $100 million in annual EBITDA or less. It usually invests between $10 million and $75 million per company. It can go beyond $75 million in certain circumstances.
It’s been a good year for Golub Capital. The BDC’s total investments at fair value increased by 15% to $4.9 billion. That’s due to record loan originations in three out of four quarters in 2021. Its top three industries by weight are software (22%), healthcare providers (11%), and a tie between IT services (6%) and specialty retail (6%).
The company increased its quarterly distribution by a penny, with the December 2021 payment to 30 cents. Its annual payment of $1.20 yields 7.7%.
Stocks to Buy: Rio Tinto (RIO)
Market Capitalization: $122.5 billion
Dividend Yield: 9.3%
Source: Shutterstock
Although Rio Tinto’s history dates back to 1873 when a British-European investor group bought the Rio Tinto mines in Spain, the modern-day company got rolling when it merged with Australia’s CRA Limited to form one of the world’s largest mining companies.
Rio Tinto mines and produces iron ore, aluminum, copper, lithium, diamonds, and more.
In November 2021, the company became the sole owner of the Diavik Diamond Mine in Canada’s Northwest Territories after buying the remaining 40% from Dominion Diamond Mines. The diamond mine 6.2 million carats of rough diamonds annually.
In the first six months of fiscal 2021, Rio Tinto had free cash flow of $10.2 billion, 262% higher than in the same period a year earlier. Its underlying earnings were $12.2 billion, 156% higher YOY.
Of interest to income investors, Rio Tinto paid out a $1.85 per share special dividend in 2021’s first six months. That payout amounted to $3 billion.
Currently, the company generates 75% of its EBITDA profits from iron ore. It’s looking to change that by acquiring the Rincon lithium project in Argentina for $825 million. With electric vehicle production on the rise, lithium will become a valuable commodity.
This alone makes RIO stock an interesting bet.
Artisan Partners Asset Management (APAM)
Market Capitalization: $3.3 billion
Dividend Yield: 10.3%
Source: Pavel Kapysh / Shutterstock.com
The Wisconsin-based asset manager made my October 2018 list of high-value, high-yield growth stocks to buy. It’s up about 50%, not including dividends. Last summer, its shares were flirting with $60, but have since fallen back considerably.
As I stated back in 2018, I liked the fact employees owned a majority of the business. At the time, it had assets under management of $117 billion. Today, they are $175 billion.
The company’s revenues through Q3 2021 were $912.2 million, 43% higher than a year earlier. Its operating income increased 65% to $402.7 million from $244.8 million a year earlier.
The key to its business model is that the investment teams are given free rein to implement their investment strategies, which include growth, value, emerging markets, and credit.
In the first nine months of 2021, it paid out $203.4 million in dividends from operating cash flow of $404.2 million. It’s got more than enough cash flow to keep paying out dividends.
In 2021, it paid out $3.92 in regular dividends and another 31 cents for a special dividend in February 2021. It pays out approximately 80% of the cash it generates each quarter. Special dividends are paid out when cash flow is more robust than usual.
If you don’t mind the ebb and flow of dividend payments, APAM remains an excellent buy for income-focused investors.
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 10 Best Stocks to Buy for Your Income-Generating Portfolio 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.
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American Express (NYSE:AXP) Diageo (NYSE:DEO) Pfizer (NYSE:PFE) Diageo (DEO) Market Capitalization: $113.4 billion Dividend Yield: 2.0% Source: IgorGolovniov / Shutterstock.com Hot off the presses, Diageo reported its first-half sales on Jan. 27. During the pandemic, the maker of Johnnie Walker scotch, Tanqueray gin, Captain Morgan rum and many other famous brands said consumers stocked up the home bar, leading to solid growth.
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American Express (NYSE:AXP) Diageo (NYSE:DEO) Pfizer (NYSE:PFE) Diageo (DEO) Market Capitalization: $113.4 billion Dividend Yield: 2.0% Source: IgorGolovniov / Shutterstock.com Hot off the presses, Diageo reported its first-half sales on Jan. 27. Store Capital (NYSE:STOR) Camping World Holdings (NYSE:CWH) British American Tobacco (NYSE:BTI) Golub Capital BDC (NASDAQ:GBDC) Rio Tinto (NYSE:RIO) Artisan Partners Asset Management (NYSE:APAM) The goal here is to generate a nice combination of income and capital gains from dividend-paying stocks over the long haul.
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American Express (NYSE:AXP) Diageo (NYSE:DEO) Pfizer (NYSE:PFE) Diageo (DEO) Market Capitalization: $113.4 billion Dividend Yield: 2.0% Source: IgorGolovniov / Shutterstock.com Hot off the presses, Diageo reported its first-half sales on Jan. 27. Stocks to Buy: Store Capital (STOR) Market Capitalization: $8.3 billion Dividend Yield: 5.0% Source: Shutterstock This real estate investment trust (REIT) is probably best known because Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) is one of Store Capital’s largest shareholders at 9.04%.
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American Express (NYSE:AXP) Diageo (NYSE:DEO) Pfizer (NYSE:PFE) Diageo (DEO) Market Capitalization: $113.4 billion Dividend Yield: 2.0% Source: IgorGolovniov / Shutterstock.com Hot off the presses, Diageo reported its first-half sales on Jan. 27. It usually invests between $10 million and $75 million per company.
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7dc2c65a-1269-414d-a4ac-b2bc6ccfb52e
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727649.0
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2022-01-21 00:00:00 UTC
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Factors Likely to Influence Diageo's (DEO) Earnings in 1H22
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DEO
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https://www.nasdaq.com/articles/factors-likely-to-influence-diageos-deo-earnings-in-1h22
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Diageo Plc DEO is scheduled to release interim results for the first half of fiscal 2022 on Jan 27. The company has been benefiting from the recovery in consumer demand across markets. However, continued disruptions in Travel Retail, continued inflationary pressures and currency headwinds have been hurting its performance.
Notably, the alcoholic beverage company, which reports on a half-yearly basis, posted robust sales, operating margin and earnings in fiscal 2021, driven by strong growth across all regions, led by gains in North America. It recorded pre-exceptional year-over-year earnings per share growth of 7.4% (in local currency) in fiscal 2021, with an 8.3% sales growth.
Key Factors to Note
Strong consumer demand in the off-trade channel and recovery of the on-trade channel in key markets are likely to have aided Diageo’s top and bottom lines in the first half of fiscal 2021. The company has been witnessing strong demand for its tequila brands and Johnnie Walker whisky, along with continued strength in off-premise sales for premium spirits like tequilas, liqueurs and bottles of Johnnie Walker scotch. The demand trends are likely to have boosted sales in the first half of the fiscal year.
In the fiscal 2021earnings call the company anticipated market growth in North America to return to historical levels of mid-single digits in fiscal 2022, indicating optimism for the first half’s performance. It expected growth to be driven by the benefits of lapping soft on-trade comparisons.
The company has also been gaining from consumer-led marketing and innovation. Its first half’s performance is expected to have benefited from efforts to leverage its existing e-commerce capabilities and accelerate investments in the online platform to cater to online demand.
On its lastearnings call the company expected organic sales momentum to continue throughout fiscal 2022. It anticipated growth to be driven by the resilience in the off-trade channel as well as the recovery in on-trade, offset by the potential impacts of future COVID-19 waves and continued disruption in Travel Retail. It predicted recovery in sales volumes, positive channel mix and premiumization trends to aid the operating margin.
However, on its lastearnings call the company anticipated continued near-term volatility in some markets. Driven by the continued international travel restrictions, the Travel Retail business is expected to have witnessed a soft performance in the fiscal first half. Although the Zacks Rank 3 (Hold) company anticipated further easing of on-trade restrictions in Europe and Turkey to aid the Guinness business, it expects continued disruption in Travel Retail for fiscal 2022. Moreover, it anticipates the continued impacts of rising inflationary pressures to partly hurt margins.
Looking for Lucrative Picks? Check These
Here are some companies you may want to consider in this earnings season.
Coca-Cola FEMSA KOF is expected to register top and bottom-line growth when it reports the fourth-quarter 2021 numbers. The Zacks Consensus Estimate for KOF’s quarterly revenues is pegged at $2.5 billion, which suggests growth of 3.2% from the prior-year quarter’s reported figure. The company currently has a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Coca-Cola FEMSA’s quarterly earnings has been unchanged in the past 30 days at 91 cents per share, suggesting 23% growth from the year-ago reported number. KOF has delivered an earnings beat of 9.7%, on average, in the trailing four quarters.
The Estee Lauder Companies EL is likely to register top and bottom-line growth when it reports the fourth-quarter 2021 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $5.5 billion, which suggests growth of 13.2% from that reported in the prior-year quarter. EL currently has a Zacks Rank #2.
The Zacks Consensus Estimate for Estee Lauder’s quarterly earnings has moved up by a penny in the past seven days to $2.64 per share, suggesting growth of 1.2% from the year-ago quarter’s reported number. EL has delivered an earnings beat of 37%, on average, in the trailing four quarters.
Coty Inc. COTY currently has a Zacks Rank #2. COTY is anticipated to register top line growth when it reports the fourth-quarter 2021 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.6 billion, indicating an improvement of 13.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Coty’s bottom line has moved up by a penny in the past seven days to 12 cents per share. However, the consensus estimate for COTY suggests growth of 29.4% from the year-ago quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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 7 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 Estee Lauder Companies Inc. (EL): 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
Coty (COTY): 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.
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Diageo Plc DEO is scheduled to release interim results for the first half of fiscal 2022 on Jan 27. Diageo plc (DEO): Free Stock Analysis Report Notably, the alcoholic beverage company, which reports on a half-yearly basis, posted robust sales, operating margin and earnings in fiscal 2021, driven by strong growth across all regions, led by gains in North America.
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Diageo Plc DEO is scheduled to release interim results for the first half of fiscal 2022 on Jan 27. Diageo plc (DEO): Free Stock Analysis Report The Zacks Consensus Estimate for KOF’s quarterly revenues is pegged at $2.5 billion, which suggests growth of 3.2% from the prior-year quarter’s reported figure.
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Diageo Plc DEO is scheduled to release interim results for the first half of fiscal 2022 on Jan 27. Diageo plc (DEO): Free Stock Analysis Report The Zacks Consensus Estimate for KOF’s quarterly revenues is pegged at $2.5 billion, which suggests growth of 3.2% from the prior-year quarter’s reported figure.
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Diageo Plc DEO is scheduled to release interim results for the first half of fiscal 2022 on Jan 27. Diageo plc (DEO): Free Stock Analysis Report The Zacks Consensus Estimate for Coca-Cola FEMSA’s quarterly earnings has been unchanged in the past 30 days at 91 cents per share, suggesting 23% growth from the year-ago reported number.
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17b6ec14-28c0-46a5-9f9a-221ab53b1bf9
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727650.0
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2022-01-14 00:00:00 UTC
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Boston Beer (SAM) Down Above 10% on Slashed 2021 Earnings View
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DEO
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https://www.nasdaq.com/articles/boston-beer-sam-down-above-10-on-slashed-2021-earnings-view
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nan
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Shares of The Boston Beer Company, Inc. SAM have plunged more than 10% in after-hours trading on Jan 13, after the company slashed its earnings view for 2021. Management cited that stronger-than-anticipated supply-chain expenses, including costs of additional damaged and expired inventory stemming from reduced shipment volumes are persistent headwinds. These factors are likely to lower gross margins for 2021.
Boston Beer now forecasts shipment growth for its products to be lower than its expectations. This is caused by a greater wholesaler inventory reduction, mainly hurting Truly. Nonetheless, consumer demand is robust and tracking at the upper end of management’s expectations. This has contributed to the depletion growth. SAM will report its 2021 results on Feb 16, 2022.
2021 Outlook
Management updated 2021 view in response to the aforesaid factors. Boston Beer estimates depletion growth of 21-22%, shipment increase of 15-16% and the national price rise of 2-3%. Gross margin is projected between 38% and 40%. SAM further predicts higher investments in advertising, promotional and selling expenses of $85-$95 million. This expense excludes freight costs changes for shipping products to the distributors.
Management had earlier predicted a depletion and shipment increase of 18-22%. SAM expected national price increase of 2-3% and a gross margin of 40-42%.
We note that the adjusted effective tax rate is envisioned to be 43%, while capital expenditure is expected at $145-150 million for 2021. Considering these, management now forecasts 2021 earnings per share between a loss of $1 and a profit of $1, excluding the impact of ASU 2016-09. The revised view shows a decline from the earlier earnings guidance between $2 and $6 per share.
Preliminary View for 2022
Boston Beer reaffirmed its preliminary expectations for 2022. SAM continues to expect depletions and shipments to increase between a mid-single-digit and a low-double-digit percentage range. National price increases are still anticipated to be 3-6%. Gross margin is anticipated to be 45-48%.
Management continues to estimate higher investments in advertising, promotional and selling expenses of $10-$30 million. The non-GAAP effective tax rate is likely to be 26%, excluding the impacts of ASU 2016-09. Boston Beer expects to incur capital expenditure of $140-$190 million for 2022.
Wrapping Up
A glance at this craft brewer’s price performance shows that it has declined 5.6% in the past three months against the industry’s 3.9% rise. Boston Beer witnesses a persistent slowdown in the hard seltzer category. The sluggish hard seltzer trends also hurt SAM’s bottom line in third-quarter 2021. Higher operating costs were added deterrents.
This presently Zacks Rank #2 (Buy) player’s robust brand portfolio and strategic initiatives appear encouraging. Boston Beer remains committed to the three-point growth plan focused on reviving its Samuel Adams and Angry Orchard brands, cost-saving initiatives and long-term innovation.
Other Key Picks in the Consumer Staples Space
We highlighted some other top-ranked stocks from the broader Consumer Staples space, namely Diageo DEO, The Duckhorn Portfolio NAPA and Hershey HSY.
Diageo currently has a Zacks Rank #1 (Strong Buy) and an expected long-term earnings growth rate of 8.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Diageo’s current financial-year sales and earnings per share suggests growth of 31.1% and 14.2%, respectively, from the corresponding year-ago reported numbers.
Duckhorn Portfolio currently has a Zacks Rank of 2. NAPA has an expected long-term earnings growth rate of 10.9%.
The Zacks Consensus Estimate for Duckhorn Portfolio's current financial-year sales suggests growth of 7.9% from the prior-year reported number. The consensus mark for NAPA’s earnings per share is flat with the year-ago reported figure.
Hershey is currently Zacks #2 Ranked. HSY has a trailing four-quarter earnings surprise of 4.4%, on average.
The Zacks Consensus Estimate for Hershey's current financial-year sales and earnings per share suggests growth of 8.9% and 12.7%, respectively, from the corresponding year-ago reported numbers. HSY has an expected long-term earnings growth rate of 7.7%.
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 7 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
Hershey Company The (HSY): 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.
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Other Key Picks in the Consumer Staples Space We highlighted some other top-ranked stocks from the broader Consumer Staples space, namely Diageo DEO, The Duckhorn Portfolio NAPA and Hershey HSY. Diageo plc (DEO): Free Stock Analysis Report Management cited that stronger-than-anticipated supply-chain expenses, including costs of additional damaged and expired inventory stemming from reduced shipment volumes are persistent headwinds.
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Other Key Picks in the Consumer Staples Space We highlighted some other top-ranked stocks from the broader Consumer Staples space, namely Diageo DEO, The Duckhorn Portfolio NAPA and Hershey HSY. Diageo plc (DEO): Free Stock Analysis Report The Zacks Consensus Estimate for Diageo’s current financial-year sales and earnings per share suggests growth of 31.1% and 14.2%, respectively, from the corresponding year-ago reported numbers.
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Other Key Picks in the Consumer Staples Space We highlighted some other top-ranked stocks from the broader Consumer Staples space, namely Diageo DEO, The Duckhorn Portfolio NAPA and Hershey HSY. Diageo plc (DEO): Free Stock Analysis Report The Zacks Consensus Estimate for Diageo’s current financial-year sales and earnings per share suggests growth of 31.1% and 14.2%, respectively, from the corresponding year-ago reported numbers.
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Other Key Picks in the Consumer Staples Space We highlighted some other top-ranked stocks from the broader Consumer Staples space, namely Diageo DEO, The Duckhorn Portfolio NAPA and Hershey HSY. Diageo plc (DEO): Free Stock Analysis Report Boston Beer now forecasts shipment growth for its products to be lower than its expectations.
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81fdc1f2-5f5f-44af-bb78-ec2b540b4cda
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727651.0
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2022-01-06 00:00:00 UTC
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Diageo plc - ADR Shares Approach 52-Week High - Market Mover
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DEO
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https://www.nasdaq.com/articles/diageo-plc-adr-shares-approach-52-week-high-market-mover
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Diageo plc - ADR (DEO) shares closed today at 1.7% below its 52 week high of $223.14, giving the company a market cap of $127B. The stock is currently down 0.3% year-to-date, up 39.8% over the past 12 months, and up 131.3% over the past five years. This week, the Dow Jones Industrial Average fell 0.2%, and the S&P 500 fell 1.9%.
Trading Activity
Trading volume this week was 16.5% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.7.
Technical Indicators
The Relative Strength Index (RSI) on the stock was between 30 and 70.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed above its Bollinger band, indicating it may be overbought.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
Per Group Comparative Performance
The company's stock price performance year-to-date lags the peer average by -135.2%
The company's stock price performance over the past 12 months beats the peer average by 384.4%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 21.1% higher 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.
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Diageo plc - ADR (DEO) shares closed today at 1.7% below its 52 week high of $223.14, giving the company a market cap of $127B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.7. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by -135.2% The company's stock price performance over the past 12 months beats the peer average by 384.4% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 21.1% higher than the average peer.
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Diageo plc - ADR (DEO) shares closed today at 1.7% below its 52 week high of $223.14, giving the company a market cap of $127B. This week, the Dow Jones Industrial Average fell 0.2%, and the S&P 500 fell 1.9%. Trading Activity Trading volume this week was 16.5% higher than the 20-day average.
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Diageo plc - ADR (DEO) shares closed today at 1.7% below its 52 week high of $223.14, giving the company a market cap of $127B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by -135.2% The company's stock price performance over the past 12 months beats the peer average by 384.4% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 21.1% higher than the average peer. This story was produced by the Kwhen Automated News Generator.
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Diageo plc - ADR (DEO) shares closed today at 1.7% below its 52 week high of $223.14, giving the company a market cap of $127B. This week, the Dow Jones Industrial Average fell 0.2%, and the S&P 500 fell 1.9%. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70.
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842a05ca-8af5-4102-8fed-e6c561df2cc4
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727652.0
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2021-12-30 00:00:00 UTC
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Diageo plc - ADR Shares Close in on 52-Week High - Market Mover
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DEO
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https://www.nasdaq.com/articles/diageo-plc-adr-shares-close-in-on-52-week-high-market-mover-0
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nan
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Diageo plc - ADR (DEO) shares closed today at 1.3% below its 52 week high of $222.08, giving the company a market cap of $129B. The stock is currently up 42.8% year-to-date, up 38.9% over the past 12 months, and up 141.5% over the past five years. This week, the Dow Jones Industrial Average rose 2.1%, and the S&P 500 rose 2.1%.
Trading Activity
Trading volume this week was 1.7% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.7.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
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 , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 436.0%
The company's stock price performance over the past 12 months beats the peer average by 447.2%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 21.7% higher 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.
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Diageo plc - ADR (DEO) shares closed today at 1.3% below its 52 week high of $222.08, giving the company a market cap of $129B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.7. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 436.0% The company's stock price performance over the past 12 months beats the peer average by 447.2% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 21.7% higher than the average peer.
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Diageo plc - ADR (DEO) shares closed today at 1.3% below its 52 week high of $222.08, giving the company a market cap of $129B. This week, the Dow Jones Industrial Average rose 2.1%, and the S&P 500 rose 2.1%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
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Diageo plc - ADR (DEO) shares closed today at 1.3% below its 52 week high of $222.08, giving the company a market cap of $129B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 436.0% The company's stock price performance over the past 12 months beats the peer average by 447.2% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 21.7% higher than the average peer. This story was produced by the Kwhen Automated News Generator.
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Diageo plc - ADR (DEO) shares closed today at 1.3% below its 52 week high of $222.08, giving the company a market cap of $129B. This week, the Dow Jones Industrial Average rose 2.1%, and the S&P 500 rose 2.1%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
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727653.0
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2021-12-29 00:00:00 UTC
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Diageo plc - ADR Shares Near 52-Week High - Market Mover
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DEO
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https://www.nasdaq.com/articles/diageo-plc-adr-shares-near-52-week-high-market-mover-2
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nan
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Diageo plc - ADR (DEO) shares closed today at 0.3% below its 52 week high of $220.30, giving the company a market cap of $127B. The stock is currently up 41.4% year-to-date, up 40.5% over the past 12 months, and up 140.7% over the past five years. This week, the Dow Jones Industrial Average rose 2.6%, and the S&P 500 rose 3.0%.
Trading Activity
Trading volume this week was 41.3% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.7.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
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 , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 481.8%
The company's stock price performance over the past 12 months beats the peer average by 511.3%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 20.9% higher 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.
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Diageo plc - ADR (DEO) shares closed today at 0.3% below its 52 week high of $220.30, giving the company a market cap of $127B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.7. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 481.8% The company's stock price performance over the past 12 months beats the peer average by 511.3% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 20.9% higher than the average peer.
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Diageo plc - ADR (DEO) shares closed today at 0.3% below its 52 week high of $220.30, giving the company a market cap of $127B. This week, the Dow Jones Industrial Average rose 2.6%, and the S&P 500 rose 3.0%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
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Diageo plc - ADR (DEO) shares closed today at 0.3% below its 52 week high of $220.30, giving the company a market cap of $127B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 481.8% The company's stock price performance over the past 12 months beats the peer average by 511.3% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 20.9% higher than the average peer. This story was produced by the Kwhen Automated News Generator.
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Diageo plc - ADR (DEO) shares closed today at 0.3% below its 52 week high of $220.30, giving the company a market cap of $127B. This week, the Dow Jones Industrial Average rose 2.6%, and the S&P 500 rose 3.0%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
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996c381e-5848-4aff-a561-96159d3afcfa
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727654.0
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2021-12-24 00:00:00 UTC
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Diageo plc - ADR Shares Near 52-Week High - Market Mover
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DEO
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https://www.nasdaq.com/articles/diageo-plc-adr-shares-near-52-week-high-market-mover-1
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nan
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nan
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Diageo plc - ADR (DEO) shares closed today at 0.4% below its 52 week high of $217.93, giving the company a market cap of $126B. The stock is currently up 39.7% year-to-date, up 39.9% over the past 12 months, and up 136.5% over the past five years. This week, the Dow Jones Industrial Average rose 0.2%, and the S&P 500 rose 1.2%.
Trading Activity
Trading volume this week was 2.3% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.7.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
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 , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 512.2%
The company's stock price performance over the past 12 months beats the peer average by 494.0%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 19.2% higher 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.
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Diageo plc - ADR (DEO) shares closed today at 0.4% below its 52 week high of $217.93, giving the company a market cap of $126B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.7. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 512.2% The company's stock price performance over the past 12 months beats the peer average by 494.0% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 19.2% higher than the average peer.
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Diageo plc - ADR (DEO) shares closed today at 0.4% below its 52 week high of $217.93, giving the company a market cap of $126B. This week, the Dow Jones Industrial Average rose 0.2%, and the S&P 500 rose 1.2%. Trading Activity Trading volume this week was 2.3% higher than the 20-day average.
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Diageo plc - ADR (DEO) shares closed today at 0.4% below its 52 week high of $217.93, giving the company a market cap of $126B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 512.2% The company's stock price performance over the past 12 months beats the peer average by 494.0% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 19.2% higher than the average peer. This story was produced by the Kwhen Automated News Generator.
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Diageo plc - ADR (DEO) shares closed today at 0.4% below its 52 week high of $217.93, giving the company a market cap of $126B. This week, the Dow Jones Industrial Average rose 0.2%, and the S&P 500 rose 1.2%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
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8be37a5b-7a99-4eb6-95aa-2792b6657338
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727655.0
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2021-12-23 00:00:00 UTC
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Diageo plc - ADR Shares Near 52-Week High - Market Mover
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DEO
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https://www.nasdaq.com/articles/diageo-plc-adr-shares-near-52-week-high-market-mover-0
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nan
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nan
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Diageo plc - ADR (DEO) shares closed today at just slightly below its 52 week high of $216.73, giving the company a market cap of $126B. The stock is currently up 39.5% year-to-date, up 40.2% over the past 12 months, and up 136.2% over the past five years. This week, the Dow Jones Industrial Average fell 0.5%, and the S&P 500 fell 0.3%.
Trading Activity
Trading volume this week was 2.8% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.7.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
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 , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 548.5%
The company's stock price performance over the past 12 months beats the peer average by 498.8%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 20.3% higher 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.
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Diageo plc - ADR (DEO) shares closed today at just slightly below its 52 week high of $216.73, giving the company a market cap of $126B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.7. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 548.5% The company's stock price performance over the past 12 months beats the peer average by 498.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 20.3% higher than the average peer.
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Diageo plc - ADR (DEO) shares closed today at just slightly below its 52 week high of $216.73, giving the company a market cap of $126B. This week, the Dow Jones Industrial Average fell 0.5%, and the S&P 500 fell 0.3%. Trading Activity Trading volume this week was 2.8% higher than the 20-day average.
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Diageo plc - ADR (DEO) shares closed today at just slightly below its 52 week high of $216.73, giving the company a market cap of $126B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 548.5% The company's stock price performance over the past 12 months beats the peer average by 498.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 20.3% higher than the average peer. This story was produced by the Kwhen Automated News Generator.
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Diageo plc - ADR (DEO) shares closed today at just slightly below its 52 week high of $216.73, giving the company a market cap of $126B. This week, the Dow Jones Industrial Average fell 0.5%, and the S&P 500 fell 0.3%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
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cf2c61d5-1ae7-4e78-9803-1a4df8f3532b
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727656.0
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2021-12-20 00:00:00 UTC
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Diageo plc - ADR Shares Close in on 52-Week High - Market Mover
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DEO
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https://www.nasdaq.com/articles/diageo-plc-adr-shares-close-in-on-52-week-high-market-mover
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nan
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nan
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Diageo plc - ADR (DEO) shares closed today at 0.7% below its 52 week high of $213.12, giving the company a market cap of $122B. The stock is currently up 35.7% year-to-date, up 34.8% over the past 12 months, and up 129.1% over the past five years. This week, the Dow Jones Industrial Average fell 1.7%, and the S&P 500 fell 2.0%.
Trading Activity
Trading volume this week was 120.5% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.7.
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 , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 480.2%
The company's stock price performance over the past 12 months beats the peer average by 548.7%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 18.3% higher 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.
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Diageo plc - ADR (DEO) shares closed today at 0.7% below its 52 week high of $213.12, giving the company a market cap of $122B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.7. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 480.2% The company's stock price performance over the past 12 months beats the peer average by 548.7% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 18.3% higher than the average peer.
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Diageo plc - ADR (DEO) shares closed today at 0.7% below its 52 week high of $213.12, giving the company a market cap of $122B. This week, the Dow Jones Industrial Average fell 1.7%, and the S&P 500 fell 2.0%. Trading Activity Trading volume this week was 120.5% higher than the 20-day average.
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Diageo plc - ADR (DEO) shares closed today at 0.7% below its 52 week high of $213.12, giving the company a market cap of $122B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 480.2% The company's stock price performance over the past 12 months beats the peer average by 548.7% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 18.3% higher than the average peer. This story was produced by the Kwhen Automated News Generator.
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Diageo plc - ADR (DEO) shares closed today at 0.7% below its 52 week high of $213.12, giving the company a market cap of $122B. This week, the Dow Jones Industrial Average fell 1.7%, and the S&P 500 fell 2.0%. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70.
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2b7c1f9e-8936-45d6-a014-76c235d990d2
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727657.0
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2021-11-24 00:00:00 UTC
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Diageo plc - ADR Shares Near 52-Week High - Market Mover
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DEO
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https://www.nasdaq.com/articles/diageo-plc-adr-shares-near-52-week-high-market-mover
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nan
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nan
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Diageo plc - ADR (DEO) shares closed today at 1.4% below its 52 week high of $210.15, giving the company a market cap of $121B. The stock is currently up 33.8% year-to-date, up 36.5% over the past 12 months, and up 132.6% over the past five years. This week, the Dow Jones Industrial Average fell 0.9%, and the S&P 500 fell 0.2%.
Trading Activity
Trading volume this week was 4.2% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.6.
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 , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 353.1%
The company's stock price performance over the past 12 months beats the peer average by 244.5%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 18.0% higher 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.
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Diageo plc - ADR (DEO) shares closed today at 1.4% below its 52 week high of $210.15, giving the company a market cap of $121B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.6. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 353.1% The company's stock price performance over the past 12 months beats the peer average by 244.5% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 18.0% higher than the average peer.
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Diageo plc - ADR (DEO) shares closed today at 1.4% below its 52 week high of $210.15, giving the company a market cap of $121B. This week, the Dow Jones Industrial Average fell 0.9%, and the S&P 500 fell 0.2%. Trading Activity Trading volume this week was 4.2% higher than the 20-day average.
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Diageo plc - ADR (DEO) shares closed today at 1.4% below its 52 week high of $210.15, giving the company a market cap of $121B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 353.1% The company's stock price performance over the past 12 months beats the peer average by 244.5% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 18.0% higher than the average peer. This story was produced by the Kwhen Automated News Generator.
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Diageo plc - ADR (DEO) shares closed today at 1.4% below its 52 week high of $210.15, giving the company a market cap of $121B. This week, the Dow Jones Industrial Average fell 0.9%, and the S&P 500 fell 0.2%. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70.
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9a0c8de8-9e03-4d39-b379-6eebaf6f248d
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727658.0
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2021-11-10 00:00:00 UTC
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What’s Behind Diageo Stock’s Recent Rise?
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DEO
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https://www.nasdaq.com/articles/whats-behind-diageo-stocks-recent-rise
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nan
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nan
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Diageo stock (NYSE: DEO) is up almost 6% in the last one month, underperforming the S&P 500 which increased 6.8% during this period. In the last one week the stock has managed to marginally outperform the broader market (2.5% vs 2%). The recent rise in stock price was driven mainly by two factors. Firstly, the company’s non-executive Chairman ought additional shares of DEO and increased his shareholding to 9.8%. Additionally, Diageo is investing $75 million into building its first whiskey distillery in China. The construction of the 66,000 meter facility is expected to be completed in 2023. The distillery will produce Diageo’s first Chinese-origin, single malt whiskey targeting the country’s premium drinkers. Thus, expansion in China and confidence exuded by insiders by buying more shares has enthused investors. Additionally, with pubs and restaurants operating at a near normal level, there is positive sentiment related to the stock.
Now, is DEO stock set to rise further or could we expect some correction? We believe that there is a 65% chance of a rise in DEO stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on DEO Stock Chance of Rise.
Twenty-One Day: DEO 5.9%, vs. S&P500 6.8%; Underperformed market
(10% likelihood event; 65% probability of rise over next 21 days)
DEO stock increased 5.9% the last twenty-one trading days (one month), compared to a broader market (S&P500) rise of 6.8%
A change of 5.9% or more over twenty-one trading days is a 10% likelihood event, which has occurred 263 times out of 2516 in the last 10 years
Of these 263 instances, the stock has seen a positive movement over the next twenty-one trading days on 170 occasions
This points to a 65% probability for the stock rising over the next twenty-one trading days
Ten Day: DEO 1.6%, vs. S&P500 3.4%; Underperformed market
(30% likelihood event; 52% probability of rise over next 10 days)
DEO stock increased 1.6% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 3.4%
A change of 1.6% or more over ten trading days is a 30% likelihood event, which has occurred 747 times out of 2516 in the last 10 years
Of these 747 instances, the stock has seen a positive movement over the next ten trading days on 388 occasions
This points to a 52% probability for the stock rising over the next ten trading days
Five Day: DEO 2.5%, vs. S&P500 2%; Outperformed market
(20% likelihood event; 53% probability of rise over next five days)
DEO stock increased 2.5% over a five-day trading period ending 11/05/2021, compared to the broader market (S&P500) rise of 2%
A change of 2.5% or more over five trading days (one week) is a 20% likelihood event, which has occurred 501 times out of 2516 in the last ten years
Of these 501 instances, the stock has seen a positive movement over the next five trading days on 265 occasions
This points to a 53% probability for the stock rising over the next five trading days
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since 2016.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Diageo stock (NYSE: DEO) is up almost 6% in the last one month, underperforming the S&P 500 which increased 6.8% during this period. Firstly, the company’s non-executive Chairman ought additional shares of DEO and increased his shareholding to 9.8%. Now, is DEO stock set to rise further or could we expect some correction?
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We believe that there is a 65% chance of a rise in DEO stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price over the last ten years. Twenty-One Day: DEO 5.9%, vs. S&P500 6.8%; Underperformed market (10% likelihood event; 65% probability of rise over next 21 days) DEO stock increased 5.9% the last twenty-one trading days (one month), compared to a broader market (S&P500) rise of 6.8% A change of 5.9% or more over twenty-one trading days is a 10% likelihood event, which has occurred 263 times out of 2516 in the last 10 years Of these 263 instances, the stock has seen a positive movement over the next twenty-one trading days on 170 occasions This points to a 65% probability for the stock rising over the next twenty-one trading days Ten Day: DEO 1.6%, vs. S&P500 3.4%; Underperformed market (30% likelihood event; 52% probability of rise over next 10 days) DEO stock increased 1.6% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 3.4% A change of 1.6% or more over ten trading days is a 30% likelihood event, which has occurred 747 times out of 2516 in the last 10 years Of these 747 instances, the stock has seen a positive movement over the next ten trading days on 388 occasions This points to a 52% probability for the stock rising over the next ten trading days Five Day: DEO 2.5%, vs. S&P500 2%; Outperformed market (20% likelihood event; 53% probability of rise over next five days) DEO stock increased 2.5% over a five-day trading period ending 11/05/2021, compared to the broader market (S&P500) rise of 2% A change of 2.5% or more over five trading days (one week) is a 20% likelihood event, which has occurred 501 times out of 2516 in the last ten years Of these 501 instances, the stock has seen a positive movement over the next five trading days on 265 occasions This points to a 53% probability for the stock rising over the next five trading days What if you’re looking for a more balanced portfolio instead? Diageo stock (NYSE: DEO) is up almost 6% in the last one month, underperforming the S&P 500 which increased 6.8% during this period.
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We believe that there is a 65% chance of a rise in DEO stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price over the last ten years. Twenty-One Day: DEO 5.9%, vs. S&P500 6.8%; Underperformed market (10% likelihood event; 65% probability of rise over next 21 days) DEO stock increased 5.9% the last twenty-one trading days (one month), compared to a broader market (S&P500) rise of 6.8% A change of 5.9% or more over twenty-one trading days is a 10% likelihood event, which has occurred 263 times out of 2516 in the last 10 years Of these 263 instances, the stock has seen a positive movement over the next twenty-one trading days on 170 occasions This points to a 65% probability for the stock rising over the next twenty-one trading days Ten Day: DEO 1.6%, vs. S&P500 3.4%; Underperformed market (30% likelihood event; 52% probability of rise over next 10 days) DEO stock increased 1.6% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 3.4% A change of 1.6% or more over ten trading days is a 30% likelihood event, which has occurred 747 times out of 2516 in the last 10 years Of these 747 instances, the stock has seen a positive movement over the next ten trading days on 388 occasions This points to a 52% probability for the stock rising over the next ten trading days Five Day: DEO 2.5%, vs. S&P500 2%; Outperformed market (20% likelihood event; 53% probability of rise over next five days) DEO stock increased 2.5% over a five-day trading period ending 11/05/2021, compared to the broader market (S&P500) rise of 2% A change of 2.5% or more over five trading days (one week) is a 20% likelihood event, which has occurred 501 times out of 2516 in the last ten years Of these 501 instances, the stock has seen a positive movement over the next five trading days on 265 occasions This points to a 53% probability for the stock rising over the next five trading days What if you’re looking for a more balanced portfolio instead? Diageo stock (NYSE: DEO) is up almost 6% in the last one month, underperforming the S&P 500 which increased 6.8% during this period.
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We believe that there is a 65% chance of a rise in DEO stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on DEO Stock Chance of Rise. Twenty-One Day: DEO 5.9%, vs. S&P500 6.8%; Underperformed market (10% likelihood event; 65% probability of rise over next 21 days) DEO stock increased 5.9% the last twenty-one trading days (one month), compared to a broader market (S&P500) rise of 6.8% A change of 5.9% or more over twenty-one trading days is a 10% likelihood event, which has occurred 263 times out of 2516 in the last 10 years Of these 263 instances, the stock has seen a positive movement over the next twenty-one trading days on 170 occasions This points to a 65% probability for the stock rising over the next twenty-one trading days Ten Day: DEO 1.6%, vs. S&P500 3.4%; Underperformed market (30% likelihood event; 52% probability of rise over next 10 days) DEO stock increased 1.6% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 3.4% A change of 1.6% or more over ten trading days is a 30% likelihood event, which has occurred 747 times out of 2516 in the last 10 years Of these 747 instances, the stock has seen a positive movement over the next ten trading days on 388 occasions This points to a 52% probability for the stock rising over the next ten trading days Five Day: DEO 2.5%, vs. S&P500 2%; Outperformed market (20% likelihood event; 53% probability of rise over next five days) DEO stock increased 2.5% over a five-day trading period ending 11/05/2021, compared to the broader market (S&P500) rise of 2% A change of 2.5% or more over five trading days (one week) is a 20% likelihood event, which has occurred 501 times out of 2516 in the last ten years Of these 501 instances, the stock has seen a positive movement over the next five trading days on 265 occasions This points to a 53% probability for the stock rising over the next five trading days What if you’re looking for a more balanced portfolio instead?
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5331afec-05e8-4003-af6a-ee42e745faa6
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727659.0
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2021-11-02 00:00:00 UTC
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Why Was Anheuser-Busch InBev Stock On A Roll This Week?
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DEO
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https://www.nasdaq.com/articles/why-was-anheuser-busch-inbev-stock-on-a-roll-this-week-2021-11-02
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nan
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nan
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Anheuser-Busch InBev stock (NYSE: BUD) has jumped 12% in just the last one week and has completely outperformed the S&P 500 which was up just 1%. If you look at the change over the last ten days and one month, the stock is up 11% and 8.7%, outperforming the broader market on both the occasions. Most of the rise has come on 28th October after the company announced its Q3 2021 performance. BUD beat analysts’ expectations by registering revenue of $14.27 billion in Q3 as against consensus estimate of $13.67 billion. Revenue growth was driven by both volume growth and price increases. The 8% organic growth will also help the company repay part of its debt load. The management has increased the lower end of the EBITDA guidance for the year. For 2021, EBITDA growth is expected to be in the range of 10%-12% as against the earlier projection of 8%-12%.
Another positive development that led to the stock price rise was the news related to the Altria Group’s investment. Altria owns approximately 10% of BUD from the merger with SAB Miller in 2016, and the bulk of its shares lost their lock-up restriction this month. Altria recorded impairment on the carrying value of those shares. But it has now announced that Altria currently plans to maintain its investment in BUD.
Now, is BUD stock set to rise further or could we expect some correction? We believe that there is a 68% chance of a rise in BUD stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on BUD Stock Chance of Rise.
Twenty-One Day: BUD 8.7%, vs. S&P500 5.5%; Outperformed market
(8% likelihood event; 68% probability of rise over next 21 days)
BUD stock increased 8.7% the last twenty-one trading days (one month), compared to a broader market (S&P500) rise of 5.5%
A change of 8.7% or more over twenty-one trading days is an 8% likelihood event, which has occurred 192 times out of 2516 in the last ten years
Of these 192 instances, the stock has seen a positive movement over the next twenty-one trading days on 131 occasions
This points to a 68% probability for the stock rising over the next twenty-one trading days
Ten Day: BUD 11%, vs. S&P500 3.6%; Outperformed market
(2% likelihood event; 41% probability of rise over next 10 days)
BUD stock increased 11% over the last ten trading days (two weeks), compared to a broader market (S&P500) rise of 3.6%
A change of 11% or more over ten trading days is a 2% likelihood event, which has occurred 46 times out of 2516 in the last ten years
Of these 46 instances, the stock has seen a positive movement over the next ten trading days on 19 occasions
This points to a 41% probability for the stock rising over the next ten trading days
Five Day: BUD 12%, vs. S&P500 1%; Outperformed market
(1% likelihood event; 40% probability of rise over next five days)
BUD stock increased 12% over a five-day trading period ending 10/28/2021, much higher compared to the broader market (S&P500) rise of 1%
A change of 12% or more over five trading days (one week) is an extremely rare (1% likelihood) event, which has occurred 20 times out of 2516 in the last ten years
Of these 20 instances, the stock has seen a positive movement over the next five trading days on 8 occasions
This points to a 40% probability for the stock rising over the next five trading days
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since 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.
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If you look at the change over the last ten days and one month, the stock is up 11% and 8.7%, outperforming the broader market on both the occasions. Another positive development that led to the stock price rise was the news related to the Altria Group’s investment. Altria owns approximately 10% of BUD from the merger with SAB Miller in 2016, and the bulk of its shares lost their lock-up restriction this month.
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We believe that there is a 68% chance of a rise in BUD stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price over the last ten years. Twenty-One Day: BUD 8.7%, vs. S&P500 5.5%; Outperformed market (8% likelihood event; 68% probability of rise over next 21 days) BUD stock increased 8.7% the last twenty-one trading days (one month), compared to a broader market (S&P500) rise of 5.5% A change of 8.7% or more over twenty-one trading days is an 8% likelihood event, which has occurred 192 times out of 2516 in the last ten years Of these 192 instances, the stock has seen a positive movement over the next twenty-one trading days on 131 occasions This points to a 68% probability for the stock rising over the next twenty-one trading days Ten Day: BUD 11%, vs. S&P500 3.6%; Outperformed market (2% likelihood event; 41% probability of rise over next 10 days) BUD stock increased 11% over the last ten trading days (two weeks), compared to a broader market (S&P500) rise of 3.6% A change of 11% or more over ten trading days is a 2% likelihood event, which has occurred 46 times out of 2516 in the last ten years Of these 46 instances, the stock has seen a positive movement over the next ten trading days on 19 occasions This points to a 41% probability for the stock rising over the next ten trading days Five Day: BUD 12%, vs. S&P500 1%; Outperformed market (1% likelihood event; 40% probability of rise over next five days) BUD stock increased 12% over a five-day trading period ending 10/28/2021, much higher compared to the broader market (S&P500) rise of 1% A change of 12% or more over five trading days (one week) is an extremely rare (1% likelihood) event, which has occurred 20 times out of 2516 in the last ten years Of these 20 instances, the stock has seen a positive movement over the next five trading days on 8 occasions This points to a 40% probability for the stock rising over the next five trading days What if you’re looking for a more balanced portfolio instead? 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.
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If you look at the change over the last ten days and one month, the stock is up 11% and 8.7%, outperforming the broader market on both the occasions. We believe that there is a 68% chance of a rise in BUD stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price over the last ten years. Twenty-One Day: BUD 8.7%, vs. S&P500 5.5%; Outperformed market (8% likelihood event; 68% probability of rise over next 21 days) BUD stock increased 8.7% the last twenty-one trading days (one month), compared to a broader market (S&P500) rise of 5.5% A change of 8.7% or more over twenty-one trading days is an 8% likelihood event, which has occurred 192 times out of 2516 in the last ten years Of these 192 instances, the stock has seen a positive movement over the next twenty-one trading days on 131 occasions This points to a 68% probability for the stock rising over the next twenty-one trading days Ten Day: BUD 11%, vs. S&P500 3.6%; Outperformed market (2% likelihood event; 41% probability of rise over next 10 days) BUD stock increased 11% over the last ten trading days (two weeks), compared to a broader market (S&P500) rise of 3.6% A change of 11% or more over ten trading days is a 2% likelihood event, which has occurred 46 times out of 2516 in the last ten years Of these 46 instances, the stock has seen a positive movement over the next ten trading days on 19 occasions This points to a 41% probability for the stock rising over the next ten trading days Five Day: BUD 12%, vs. S&P500 1%; Outperformed market (1% likelihood event; 40% probability of rise over next five days) BUD stock increased 12% over a five-day trading period ending 10/28/2021, much higher compared to the broader market (S&P500) rise of 1% A change of 12% or more over five trading days (one week) is an extremely rare (1% likelihood) event, which has occurred 20 times out of 2516 in the last ten years Of these 20 instances, the stock has seen a positive movement over the next five trading days on 8 occasions This points to a 40% probability for the stock rising over the next five trading days What if you’re looking for a more balanced portfolio instead?
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If you look at the change over the last ten days and one month, the stock is up 11% and 8.7%, outperforming the broader market on both the occasions. For 2021, EBITDA growth is expected to be in the range of 10%-12% as against the earlier projection of 8%-12%. Now, is BUD stock set to rise further or could we expect some correction?
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4b175259-b539-4695-ab71-0fc00db8999b
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727660.0
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2021-09-30 00:00:00 UTC
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Diageo Reports Organic Net Sales Momentum Across All Regions - Quick Facts
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DEO
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https://www.nasdaq.com/articles/diageo-reports-organic-net-sales-momentum-across-all-regions-quick-facts-2021-09-30
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nan
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nan
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(RTTNews) - Diageo PLC (DGE.L, DEO) said the Group has made a strong start to fiscal 2022, with organic net sales momentum across all regions. North American business is performing strongly, despite some supply chain constraints, reflecting resilient consumer demand, the Group said. The Group also noted that its businesses in Africa, Asia Pacific and Latin America and the Caribbean are performing well, although volatility in these markets is likely to persist.
Looking forward, the Group expects near-term volatility to remain, including the potential impact of any future waves of Covid-19.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Diageo PLC (DGE.L, DEO) said the Group has made a strong start to fiscal 2022, with organic net sales momentum across all regions. North American business is performing strongly, despite some supply chain constraints, reflecting resilient consumer demand, the Group said. The Group also noted that its businesses in Africa, Asia Pacific and Latin America and the Caribbean are performing well, although volatility in these markets is likely to persist.
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(RTTNews) - Diageo PLC (DGE.L, DEO) said the Group has made a strong start to fiscal 2022, with organic net sales momentum across all regions. North American business is performing strongly, despite some supply chain constraints, reflecting resilient consumer demand, the Group said. The Group also noted that its businesses in Africa, Asia Pacific and Latin America and the Caribbean are performing well, although volatility in these markets is likely to persist.
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(RTTNews) - Diageo PLC (DGE.L, DEO) said the Group has made a strong start to fiscal 2022, with organic net sales momentum across all regions. North American business is performing strongly, despite some supply chain constraints, reflecting resilient consumer demand, the Group said. The Group also noted that its businesses in Africa, Asia Pacific and Latin America and the Caribbean are performing well, although volatility in these markets is likely to persist.
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(RTTNews) - Diageo PLC (DGE.L, DEO) said the Group has made a strong start to fiscal 2022, with organic net sales momentum across all regions. North American business is performing strongly, despite some supply chain constraints, reflecting resilient consumer demand, the Group said. The Group also noted that its businesses in Africa, Asia Pacific and Latin America and the Caribbean are performing well, although volatility in these markets is likely to persist.
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ad5132ff-49c1-4419-9fa2-15588d59d70b
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727661.0
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2021-09-08 00:00:00 UTC
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3 International Stocks to Buy for Dividend Growth
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DEO
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https://www.nasdaq.com/articles/3-international-stocks-to-buy-for-dividend-growth-2021-09-08
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investors looking to build their wealth over the long term have countless options in the market today, including domestic and international stocks.
There are physical assets, such as real estate, in addition to the thousands of exchange-traded products available, and of course, thousands of individual stocks investors can buy.
Not all are created equal, of course, and one area that is often overlooked by U.S.-based investors is that of international dividend stocks. In general, international stocks tend to offer higher yields than their U.S.-based counterparts, and offer geographic diversification for an investor whose portfolio is U.S.-centric.
7 EV Charging Stocks to Buy for an Infrastructure Rally
In this article, we’ll take a look at three international dividend stocks that we think are great picks for those looking for blue-chip dividends outside the U.S. Our three stocks offer consistent dividend growth and current income to shareholders, and we think they are great additions for those looking to diversify outside of the U.S.
For these reasons, we find them to be attractive dividend stocks for U.S.-based investors.
Unilever (NYSE:UL)
Diageo (NYSE:DEO)
Novartis (NYSE:NVS)
International Stocks to Buy: Unilever (UL)
Source: BYonkruud / Shutterstock.com
Unilever is a consumer goods company that operates globally. Its products include beauty and personal care, foods and beverages, and home care. Through these segments, Unilever offers products such as deodorant, shampoo, ice cream, soup, seasoning, personal hygiene products, and more.
It was founded in 1894, is based in the U.K., generates about $60 billion in annual revenue, employs nearly 150,000 people, and trades with a market capitalization of $144 billion.
We see Unilever’s medium-term growth at 5% annually, which should be driven by its focus on less developed parts of the world, including Vietnam, Pakistan and Myanmar. The company has the ability to take advantage of rapidly expanding populations in these areas and others, and the burgeoning middle class that brings. As these higher-growth areas continue to see better market penetration, Unilever can boost the top and bottom lines more so than its developed markets such as Europe and the U.S.
We see Unilever’s competitive advantage as the strength of its global brands. The company’s century-plus long history of building market share across the world has led to Unilever owning some of the valuable consumer brands in the world. This affords its pricing power, which brings with it reliable earnings and cash flow. Unilever has used this to raise its dividend for a very impressive 40 consecutive years in its home currency.
Unilever’s dividend safety remains quite strong despite its four-decade streak of dividend increases, as we expect the payout ratio to come in right at two-thirds of earnings for the foreseeable future. Unilever’s payout has been in that area for many years and given its reliable free cash flow and earnings growth, we expect the company can continue to raise its payout for years to come without undue stress on the payout ratio. In short, Unilever’s dividend safety is excellent.
Diageo (DEO)
Source: JL Images / Shutterstock
Diageo is an alcoholic beverage manufacturer that produces, markets, and sells its beverages worldwide. Diageo produces a wide variety of scotch, whiskey, gin, vodka, rum, liqueur, wine, beer and more.
Diageo was founded in 1886 and is based in the U.K. It produces about $18 billion in revenue, employs 28,000 people and grades with a market capitalization of $112 billion.
Similar to Unilever, Diageo’s primary growth catalyst is emerging markets, not those that are already developed. For Diageo, Latin America, China and India are the primary growth drivers in the years to come, fueling our 8% annual earnings growth estimate.
Diageo has the opportunity to take advantage of growing middle classes, which will have higher amounts of discretionary income, helping Diageo to build out its next leg of growth. The company buys back a small of number of shares as well, but this is not going to be a primary driver of growth, in our view.
Diageo’s competitive advantage stems mostly from its world-class brands, which afford it name recognition for consumers, and help drive premium pricing for its products. The company’s global supply chain and thousands of global distribution points help reinforce this advantage over time, and even help it thrive during recessions.
Diageo’s payout ratio is under 70% for this year, so we see the dividend as quite safe, particularly given how quickly earnings are expected to grow. That said, we don’t expect massive amounts of dividend growth, but do see dividend growth matching earnings growth over time. Dividend safety, however, is still quite strong.
International Stocks to Buy: Novartis (NVS)
NVS) logo on a corporate building during daylight" width="300" height="169">
Source: Denis Linine / Shutterstock.com
Novartis is a healthcare company that operates globally. The company researches, develops, manufactures and markets its products through two operating segments. Novartis provides products such as treatments for ophthalmology, neuroscience, immunology, hepatology, dermatology, renal, cardiovascular and more.
The company was founded in 1996, is based in Switzerland, employs about 109,000 people, generates more than $50 billion in annual revenue, and trades with a market capitalization of $224 billion.
We see growth for Novartis at 4% annually in the coming years, driven by continued adoption of its wide variety of pharmaceuticals and other treatments. Novartis doesn’t focus on particular treatments, such as cancer, but rather built out a deep and wide portfolio of treatments that give it instant diversification, and recession resistance.
This is also the source of the company’s competitive advantage, given that it has four blockbuster products that are all producing at least $1 billion in annual revenue. The company also has over a dozen new drugs in the pipeline that should fuel the next leg of growth.
Novartis’ yield is outstanding at 3.5% currently, nearly three times that of the S&P 500. But even so, its payout ratio is just 55% based upon our current estimates for this year. The company has a quarter-century of local currency dividend increases, and we see Novartis’ dividend safety as very attractive, along with many more years of increases to come.
On the date of publication, Bob Ciura did not have (either directly or indirectly) positions in any of 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 International Stocks to Buy for Dividend Growth 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.
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Unilever (NYSE:UL) Diageo (NYSE:DEO) Novartis (NYSE:NVS) International Stocks to Buy: Unilever (UL) Source: BYonkruud / Shutterstock.com Unilever is a consumer goods company that operates globally. Through these segments, Unilever offers products such as deodorant, shampoo, ice cream, soup, seasoning, personal hygiene products, and more. Diageo (DEO) Source: JL Images / Shutterstock Diageo is an alcoholic beverage manufacturer that produces, markets, and sells its beverages worldwide.
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Unilever (NYSE:UL) Diageo (NYSE:DEO) Novartis (NYSE:NVS) International Stocks to Buy: Unilever (UL) Source: BYonkruud / Shutterstock.com Unilever is a consumer goods company that operates globally. Through these segments, Unilever offers products such as deodorant, shampoo, ice cream, soup, seasoning, personal hygiene products, and more. Diageo (DEO) Source: JL Images / Shutterstock Diageo is an alcoholic beverage manufacturer that produces, markets, and sells its beverages worldwide.
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Unilever (NYSE:UL) Diageo (NYSE:DEO) Novartis (NYSE:NVS) International Stocks to Buy: Unilever (UL) Source: BYonkruud / Shutterstock.com Unilever is a consumer goods company that operates globally. Through these segments, Unilever offers products such as deodorant, shampoo, ice cream, soup, seasoning, personal hygiene products, and more. Diageo (DEO) Source: JL Images / Shutterstock Diageo is an alcoholic beverage manufacturer that produces, markets, and sells its beverages worldwide.
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Unilever (NYSE:UL) Diageo (NYSE:DEO) Novartis (NYSE:NVS) International Stocks to Buy: Unilever (UL) Source: BYonkruud / Shutterstock.com Unilever is a consumer goods company that operates globally. Through these segments, Unilever offers products such as deodorant, shampoo, ice cream, soup, seasoning, personal hygiene products, and more. Diageo (DEO) Source: JL Images / Shutterstock Diageo is an alcoholic beverage manufacturer that produces, markets, and sells its beverages worldwide.
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2c78f144-c166-49ad-ba64-d0d9795de4ba
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727662.0
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2021-08-27 00:00:00 UTC
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11 Stocks for the Business of Weddings
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DEO
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https://www.nasdaq.com/articles/11-stocks-for-the-business-of-weddings-2021-08-28
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nan
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nan
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Will Amazon.com's (NASDAQ: AMZN) department stores be a hit with shoppers? Who is the next CEO to announce retirement? What's the next big trend in alcohol sales? In this episode of Motley Fool Money, Maria Gallagher and Jason Moser tackle those questions, as well as the latest earnings from Walmart (NYSE: WMT), Target (NYSE: TGT), Lowe's (NYSE: LOW), Home Depot (NYSE: HD), Foot Locker (NYSE: FL), Nvidia (NASDAQ: NVDA), Farfetch (NYSE: FTCH), and Robinhood (NASDAQ: HOOD). Plus, they discuss Chipotle's (NYSE: CMG) newest menu item, share 11 stock ideas for the return of weddings and two stocks on their radar: Roblox (NYSE: RBLX) and Elastic (NYSE: ESTC).
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.
10 stocks we like better than Microsoft
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This video was recorded on Aug. 20, 2021.
Chris Hill: We've got the latest headlines from Wall Street. We've got a round of Buy, Sell, and Hold, and as always, we've got a couple of stocks on our radar. But we begin this week with a wide range of retail. First up is Target. Second-quarter profits and revenue were higher than expected. Same-store sales rose nearly 9%, and Target raised full-year guidance, and despite all that goodness, Jason, shares of Target down about 3% this week.
Jason Moser: Yeah, down a little bit this week and maybe that's a little bit of a reflection of where the stock was valued going into the week and perhaps a little bit of uncertainty for the back half of the year just based on the current situation. But I wouldn't let that take away enthusiasm for what this company is doing. To me, this is one of the premier retailers in the world. I don't think that's hyperbole. They stuck with their plan and it is straight-up working. Omnichannel doesn't even really seem to do them full justice and the numbers really, I think, bear that out. In the second quarter, the comparable sales as comps were up 8.9%, and that was on top of 24.3% a year ago. Clearly, a year ago it accelerated a lot. It's a difficult comp going into this year, but revenue grew 9.5% from a year ago. As a result, when you look at total sales for the quarter, they've grown more than 36% over the last two years alone. That's, to me, it's very telling. It shows in both traffic and tickets. Traffic continues to impress me. Traffic grew 12.7% in the quarter, and now tickets did decline. The actual average ticket did decline by just slightly 3.4%. I think that's to be expected.
We're not seeing the same sense of urgency on shoppers as we did a year ago. There isn't the same level of pantry stuffing going on. But I think when you look at the companies from an inventory perspective, inventory's up 26% from a year ago, so they're in a really good position, I think here, for the back half of the year. But then going to that plan, going to that omnichannel plan, when you look at the comparable digital sales, those grew 10% for the quarter. Now, that's on top of 195% growth from a year ago. Again, I think a year ago isn't necessarily a fair comp, but I think it shows that they're continuing the trend of growing. But it's the same-day services, whether it's in-store pickup, the drive up, the shift acquisition is really proving to be a tremendous one. But drive up has really impressed me and to put it into dollar terms here. Over the last two years, the second quarter sales through drive up alone had increased by nearly $1.4 billion. All along the way they've built up this tremendous rewards program. They now have more than 100 million Target circled rewards members now. We know how powerful those loyalty and rewards programs could be. All things considered, I think Target continues to really execute on their plan that they've laid out here over the last several years.
Hill: Shares of Walmart were up a bit this week and close to an all-time high. Second-quarter revenue was just over $140 billion. Foot traffic is growing, and so are same-store sales in the U.S., Maria.
Maria Gallagher: Yeah, so Walmart had their highest quarterly revenue ever for a three-month period outside of the holiday season. Like you said, total revenue was about $140 billion up 2.4%. They grew market share in grocery. Their comparable transactions were up 6.1%, led by in-store grocery transactions. Their e-commerce sales were up 6% year over year and 103% if you look at a two-year comp, and they're expecting global e-commerce sales to reach $75 billion for the year. In addition, same-club sales were up about 7.7% and e-commerce there grew about 27%. In general, their same-store sales gained momentum each month throughout the quarter. Their CFO, Brett Biggs, said that customers flocked to stores for items like luggage, party supplies, apparel and they're coming as if they're coming out of hibernation. I think as we get back into school season, as we then get into Halloween, and then it's Thanksgiving and then it's Christmas -- August starts propelling into fall, and fall is a non-stop time to go shopping for fun things to decorate your house. I see that continuing in the next couple of quarters as well.
Hill: I'm glad you mentioned the school, because Target talked about this, and Walmart also said they're seeing good numbers already in their back-to-school sales, which is so important for any retailer.
Gallagher: Yeah, and I think that the beauty of places like Walmart and Target is that you go in for one thing and then you leave with 900 things you didn't want. I think you go in for a school backpack and then all of a sudden you have 30 candles and a whole new wardrobe, and that's the beauty of these big retailers.
Hill: From general retail to home improvement. Home Depot and Lowe's both out with second-quarter reports this week, both posting profits that were higher than expected. But while Home Depot did not offer guidance for the full fiscal year, Lowe's raised their guidance, and that may have been one of the reasons shares of Lowe's were up 6% this week. Home Depot down just a little bit, Jason.
Moser: Yeah. Well, Maria, I have that same problem of going in with the intention of buying one thing and walking out with 500 whenever I go to Home Depot or a Lowe's. I guess I'm a mark for these two stores. But it does feel like the underlying story for both businesses. I think both businesses recorded very good quarters. I think the underlying story really is about the pro customer. They did see some pullback in the do-it-yourself demographic there, but the pro customer really stepped up and helped bring the results for both companies. When you look at Home Depot, again, dealing with a difficult comp given last year, but still very respectable numbers. Their sales of $41.1 billion, that was up just over 8% from a year ago. Comp sales were up 4.5%. U.S. comps were up 3.4%. Now, when you look at where margins are going with these companies, there's still a little bit of a challenge on the gross margin side. They saw gross margin for Home Depot down 80 basis points, and that was based really on inflationary costs, things like lumber and whatnot. But operating expenses remain in check. They're actually doing a very good job of dealing with this new paradigm on the operating side, so January operating margin was up 20 basis points. That was thanks, I think, to those ticket and transaction numbers. The average ticket grew 11.3% in the face of declining transactions. Transactions actually fell 6%. Again, understandable. There's not that same feeling of haste or consumers rushing to get into those stores and buy the things that they need. But when you look at the big-ticket customers, again, the big-ticket customers continue to perform very well.
Those transactions over $1,000, that was up 24% compared to a year ago. For me, when you look at what Home Depot is doing, inventories remain in check. The pro customer continued to really bring results which again, those outpaced the do-it-yourself customers. But we see that ebb and flow with Home Depot quarter-in and quarter-out. It's not really a surprise. In regard to Lowe's again, good numbers. Sales of $27.6 billion, that was relatively flat from a year ago. During the quarter they saw those comps actually decline 1.6% total and 2.2% for the U.S. Those two-year numbers are obviously painting a little bit of a different picture, though, so that's encouraging. Again, I think for Lowe's, the pro customer really performed. They saw the average ticket grow also 11.3%. That offset a declining transaction count rate, declining traffic of 12.9%. A little bit more exaggerated there than what we saw with Home Depot. But gross margin, I think, is a good story there. Gross margin declined only 30 basis points and they saw operating margin, on the other hand, expand 80 basis points. These companies are doing a very good job of handling the cost structures they've been handed given the past couple of years. I think in Lowe's case, you look at CEO Marvin Ellison, it's just been basically three years since he took the helm there. Stocks up 120% and the numbers are really I think bearing at the stock's points. He's got to be feeling really good about what he's done.
Hill: Shares of Foot Locker up nearly 10% on Friday after second-quarter profits and revenue came in higher than expected. Wall Street was also expecting negative same-store sales. Comps were up nearly 7%, Maria.
Gallagher: First of all, did you know that Foot Locker has almost 3,000 stores? Which is just so many more than I realized they had. But their total sales were up 9.5% to $2.2 billion. Their comp-store sales were up about 7%. They had strong results in women's and kids' footwear business with broad demand for apparel and accessories and you see that trend continuing as people spend more on athletic footwear and apparel throughout the pandemic and beyond. They also announced a quarterly dividend of $0.30 a share, which is about a 50% increase, and they have two recent acquisitions which are fueling its growth in Asia with Atmos and in a non-mall presence with WSS but still within that same category of shoe sales. They've been capitalizing on that growth in athleisure and are attempting to continue that as things get more back to normal, as people have maybe started going back to Foot Locker. They are saying, well, keep coming back, keep coming back.
Hill: Well, it's interesting, you mentioned all the locations for the namesake brand, but those acquisitions that they made, they do seem smart in part because it's a way for Foot Locker to diversify away from malls.
Gallagher: Yeah, and growing that demographic, I know they said WSS is used by people in the Latina demographic, Atmos is in Asia and so they're trying to diversify their customer base as well.
Hill: What's better than a company announcing a new product? When they use the announcement as a way to take shots at other companies. Details after the brakes, so stay right here. This is Motley Fool Money.
Welcome back to Motley Fool Money. Chris Hill here with Jason Moser and Maria Gallagher. Nvidia's stock is closing in on a new all-time high after second quarter revenue came in higher than expected. Guidance for the current quarter looks good. The only downside this week came when Nvidia told The Financial Times they may not meet the regulatory deadline on last year's $40 billion acquisition of ARM. It's a big deal, Jason, and regulators appear to be taking a long, hard look.
Moser: Yeah. I know the big question for Nvidia will revolve around this R&D, and that does make sense. I would encourage investors to not lose sight of the fact that this is still a very strong business, performing quite well on its own. Into that point, revenue for the quarter $6.5 billion, up 68% from a year ago, they noted they set records for total revenue in their gaming datacenter segment and professional visualization segment, and so breaking that down, gaming revenue of $3.1 billion grew 85% from a year ago, up 11% sequentially. Benefiting from very strong laptop demand, which seems pretty reasonable given what we know. The datacenter business, which is another tremendous part of the story, revenue of $2.4 billion, that was up 35% from the year-ago quarter. It's important to note, Nvidia is a key part of the tech that's going into these big customers' Cloud offerings.
When we're talking about Microsoft and Google and Amazon, Nvidia is a lot of what's making that stuff work. There's some stickiness there, so I think that's really encouraging for investors. The pro visualization segment of the business, clearly the smaller of the three, but still revenue $519 million up 156% from a year ago, benefiting from the changing work landscape. I think a neat part of the story, lookout for Nvidia omniverse, this is an offering, a platform they had. This is going to be a big piece of the development of the metaverse. We're going to hear more and more about this metaverse here in the coming years from companies like Roblox and whatnot out there doing what they do. To me, I continue to invest in Nvidia inception, which is essentially their acceleration platform for AI start-ups. They've got funding of over $60 billion and members in 90 countries on this inception platform and that is really I think promoting strong continuing investments in AI, which is going to be a very big story here over the coming decade, and one, you continue to see more and more throughout the quarters with Nvidia.
Hill: Farfetch, the online luxury fashion platform grew revenue in the second quarter by more than 40%, but shares fell by more than 6% this week. Maria, they're growing their gross merchandise volume along with their revenue. Is the drop in Farfetch a buying opportunity?
Gallagher: I think it could be. I think it's really this leader and it carved itself out in this online luxury space, which is really a niche. It has 1,300 luxury sellers, three million active customers. Their GMV was up 40% over $1 billion as last quarter with that high take rate of 30%. That revenue increased about 43% to $523 million. They also launched some really cool things on their platform. They have an immersive 3D shopping experience. They have virtual try and capabilities. They launched a kids wear fashion, that's still very expensive, very luxury. I have a note here that says, "I found a candle I like, and it's only $120." It really has this niche in online commerce, but with retail, and when you have those brands, when you have cultivated relationships with those brands, I think that that's a pretty valuable, intangible growth driver for them.
Hill: Shares of Robinhood falling 15% this week. The trading apps' first report as a public company came with a warning that trading activity is slowing down. Recent trading is Robinhood's business. I get why the stock is down.
Moser: Yes. He said it. Maybe they need as many transactions as they can get their hands on. They say they want to become the most trusted and most culturally relevant money app worldwide, and I don't doubt that, but they are today catering to a market where they're going to be some big hurdles to clear. The word association. When you say Robinhood, the first couple of words coming in mind are stonks and crypto, and the like, memes. This is just not where you want to be, I think in your first reportable quarter year, but here's where we are. Crypto revenue grew to $233 million, up from just $5 million a year ago. Options are up 48% to $165 million. You can see, this is a platform that while it may be good at what they do, they are catering to a unique demographic and when you look at that actual demographic, net cumulative funded accounts reached 22.5 million, that's up 130% from a year-ago. Monthly active users, 21.3 million, that's up 109% assets under custody reached $102 billion, up 205%. That's all great. But what it all boils down to is you have an average $4,500 account there. These aren't big ticket customers and I would imagine the median is actually much lower than that average, this is just aren't high-value clients today. What's worse is they're trading a lot. That can be a recipe for very lumpy business. They're going to have to figure out a way to reconcile that, but all things considered. It certainly could have been worse.
Hill: On Thursday, Chipotle announced it's testing a plant-based Teresa alternative in Denver and Indianapolis. The company says this new product will come from, "Ingredients grown on a farm and not a lab." Maria, I like innovation, but I really like the shade that Chipotle is throwing at Beyond Meat and Impossible Foods.
Gallagher: Yeah. I think the actual even sassier part of the press release was made with ingredients you can pronounce and never frozen. You see both of those Impossible and Beyond in the frozen aisle, and I actually looked at the ingredients for both Beyond Meat and Impossible, and Beyond Meat only has one thing I can't pronounce, and the ingredients for Impossible Foods, there are a lot of words I can't pronounce in that ingredient list. I think that what they say that they are ingredients are going to be our Chili Chipotle peppers, tomato paste, crushed garlic, paprika, olive oil, and natural protein source from peas. I think it's just showing this shifting consumer demand where there are a lot more people who are interested in plant alternatives or they have friends who are vegetarians and they have to have options for friends when they go out to eat. I think that's just a continued shift in that consumer appetite for these types of foods.
Hill: Well it's their first plant-based protein new offering since 2014. Once again, Chipotle is taking their time with new offerings.
Gallagher: Yeah, it'll be interesting to see them testing it out in Denver and Indianapolis. I'd be interested to see how both of those markets react to it and see if they end up rolling it out throughout the country, and what that reception is.
Hill: Amazon has a surprising new business line and hard seltzer may have to make way for the newest trend in alcoholic beverages. Buy, Sell, or Hold is next. Stay right here. You're listening to Motley Fool Money.
Welcome back to Motley Fool Money, Chris Hill here with Maria Gallagher and Jason Moser. Time for a round of Buy, Sell, or Hold. I'll spot you up with an idea from the world of business and you tell me that if it were a stock, would you be buying, selling, or holding it? Jason, let's start with The Wall Street Journal reporting that Amazon is planning to open several large bricks-and-mortar retail locations this fall, starting in California and Ohio. Buy, sell or hold, Amazon department stores.
Moser: Well, Chris, I think I've been pretty clear through the years here that I like going to physical retail. I like that physical retail experience about as much as I like filing my taxes at the end of the year. It's just not something I'm gunning for as the consumer. To me, the advent of e-commerce and the convenience that it's offered has just been one of the most profound developments in my lifetime, particularly as a parent. I'm sure you feel the same way. My first inclination here is to say sell. I say this as an Amazon shareholder, and a very happy one at that. I've owned those shares for a long time and I don't have any reason to want to unload them. This isn't making me want to unload them, but I do have to ask the question, is this something that the world is really clamoring for? Is this something that people want? I'm not really sure that it is. Now that said, I could also see this as being perhaps some investment in fulfillment in disguise. Maybe this is just something where they're like, "Hey, you know what we're going to test and learn, and we're going to see if there's something there." Maybe it's not your traditional retail experience, maybe it serves some other purpose. We saw with the Fire Phone, it was pretty clear from the start, that wasn't to me, the greatest investment in the world, but they did learn from it. That's one thing that Amazon is really good at doing, is trying things and learning from them whether they succeed or fail. But I got to say sell here, man, I'm not feeling it.
Hill: Maria, what about you?
Gallagher: I'm going to with sell too. I think the best part about going to these big stores is browsing. I don't think that you want to go to Amazon to browse, because what you buy on Amazon are things you just need and you need them fast and you need them in the next hour today. I don't think you're going to walk into Amazon, a big warehouse and just browse and find the types of paper towels you want. I don't know how enjoyable of a store experience it will be. Also, I just find it ironic that they've put all of these places out of business to then create stores from their ashes.
Hill: I'm going to hold, but I will say it's very odd to say the phrase "Amazon department store" out loud. Last month, Disney's Black Widow took in $80 million in its opening weekend, making it No. 1 for the year so far. Maria, buy, sell or hold, that opening weekend record, standing for the rest of the year. I will just add that we've got a couple of more big Marvel movies coming later in the year, along with the next James Bond movie and the Top Gun sequel.
Gallagher: I'm going to say sell, I think that they have two new Marvels coming out; you have Spider-Man, you have Shang-Chi, you have a new Wes Anderson movie coming out that I didn't realize that has a pretty stacked cast, that has, like, Timothee Chalamet, Elisabeth Moss, Frances McDormand. There are kids movies coming out. I think that there's just bound to be another big blockbuster ahead.
Hill: Jason, what about you?
Moser: Yeah, that's a tremendous performance in a volatile time, I'm going to sell. I think when you look at the schedule of movies that are getting ready to come out, there are just too many opportunities to beat that number. A lot of good movies that you guys quoted there, the one that I think is actually going to really beat it though, and I don't know, this is just what I think, but Halloween Kills is coming out this year. People have been really looking forward to this sequel. Halloween, a very, very powerful franchise through the years. What the hell, Michael Myers can't die. These movies can go on forever. They tell an amazing story that sometimes borders on the absurd, but yet people just continue to flock to this movie story. To me, Halloween Kills is going to be the one that takes us over-the-top. If for some reason I'm wrong, which certainly could be the case, listen, Venom. Venom, Let There Be Carnage, just on the title alone. I'm not the biggest going-to-the-movie guy, I'm a little bit more of a let's-watch-it-in-the-living-room guy, but I could see Venom pulling that off as well. Then finally, I just can't wait for The Many Saints of Newark, I'm a tremendous Sopranos fan. I feel like it's one of the best shows ever made, but even I'm most likely going to stream that on video when it comes out.
Hill: Let me add a couple of more numbers for anyone wondering, how bad is it from movie theaters out there. Two years ago, obviously 2020 was a wash. But in 2019, the No. 1 opening weekend at the box office was Avengers: Endgame. $357 million, the $80 million opening weekend that Black Widow had this year, that would not have been in the top 10 opening weekend finishes in 2019. A rough road ahead from movie theaters. I'd say this is someone who enjoys going to the movies. Jason, one of the big headlines from the first half of this year was Jeff Bezos announcing his retirement as CEO of Amazon. Buy, sell or hold, another big name CEO announcing their retirement before the end of the year.
Moser: Well, I was going to go with Johnson & Johnson, Chris, that would seem like we can drive that one. That was news that came out after we had already started kicking around this idea, just the timing was amazing. Yes, I do want to sign up for your clairvoyant investing service by the way. I think I am going to go a little bit outside the top 20 largest companies, but I'm going to pull one that we're all very familiar with and I'm sorry, Matt Greer, this is not targeted at you. I think it's totally plausible that Craig Jelinek at Costco decides to go ahead and hang it up by the end of this year. It's not for anything other than the fact that he's been doing this for a long time and he's done a really good job. He's got nothing to prove. He's coming up on 70 years old, he's been with the company since 1984, he's been the CEO since 2012, he held the COO position, he has just such a tremendous track record with this business. It's not the most difficult business in the world to understand. It all boils down to just making sure that they take care of their members and that's what they've just done for so long so well. I think that Craig Jelinek could absolutely be on the table as one we will see hanging it up here by the end of the year.
Hill: Maria, what about you?
Gallagher: I think there is probably going to be another one. I would say maybe Jamie Dimon at JPMorgan. I think he's 65, he's been the CEO for over 15 years, he's had heart problems in the past, he's openly talked about his succession plan, so that would be my guess as I think that might happen before the end of the year.
Hill: That sounds like a couple of buys right there from both of you. It's interesting because those are two CEOs that if you're shareholders of those companies and you both touched on this, you can feel really good that the succession plan is in place. It's tough to plan and execute a really strong succession when it comes to CEOs, but Jim Sinegal did a brilliant job tapping Craig Jelinek, and I'm sure whenever Jelinek decides to step aside, he'll have his successor in place, Jamie Dimon, yeah. Jamie Dimon is the smartest guy on Wall Street, so yeah, he's got that plan.
Moser: I'd love to get your opinions on us too, because the wildcard that came to my head, this is probably going to get a couple of gripes here, don't at me, but Elon Musk. This is nothing against Musk, but I think he's publicly stated more than once that his goal isn't really to be CEO of Tesla or a company. He's got a lot going on. At some point or another, I think most of us are at least expecting him to go ahead and step down as that CEO of Tesla to go focus on other things. Maybe just really give his whole attention to SpaceX. But yeah, it makes me wonder if Musk isn't trying to set the stage for him to be able to saunter off and go do other things. I don't know, what do you guys see?
Gallagher: I think the stock movement announcing Elon Musk move would be much more dramatic than either a Costco or a JPMorgan change, just because so much of the hopes and dreams of Tesla is tied up in the hopes and dreams of what Elon Musk specifically can do. I think that that would lead to pretty volatile movements for Tesla if that happened.
Hill: I don't remember what happened to shares of Costco when Jim Sinegal announced that he was stepping down. But I do remember that, and this is typical with Jim Sinegal, that it was part of their earnings press release and it was not the headline. It was the 10th thing in the press release. It was like "Oh and by the way, the co-founder and long time CEO is stepping down." Last one, Maria. In the past eight years, exports of Japanese sake have nearly tripled and now Wink, which is the big online wine membership club, has started offering sake for the first time. Buy, sell or hold, sake becoming the new hard seltzer.
Gallagher: I'm going to hold because I don't think I have enough knowledge of what's sake tastes like to know how it can function within, I think the beauty of hard seltzers that it just doesn't taste like anything, which is why a lot of people like it and bringing it to picnics and bringing it to outings and stuff. But I do think it's pretty interesting so they are saying that the sake market's growing about 5% to reach $10.4 billion in 2026. In comparison, the whiskey market is about $57 billion and the beer market is about $600 billion. But beer is the most common consumed drink after tea and water. I think it'd be hard to ever compare it to beer. But I do think it's growing pretty quickly, quicker than I would have asked that.
Hill: I don't know Jason, it really seems like an opportunity for a business like Diageo or Constellation Brands to add a sake brand to their portfolio. What do you think? Is this a buy, sell or hold?
Moser: As far as it being the new hard seltzer, I'm going to sell that. I don't know that we have quite the same market opportunity in existence for sale. But I will say, as someone who has enjoyed the beverage before, it has a unique taste. It's not for everyone, it's not for every occasion. But to Maria's point, we have seen a lot of growth here recently and there are currently around 20 or so sake breweries around the country versus just I think around five, maybe a decade ago. It is starting to grow in popularity. What you're seeing now is brewers infusing sake with different fruit flavors, or even carbonating it or using hops in their brewing. I know that sounds crazy, but it is different. It's something that strikes me a little bit. It's a little bit Dogfish Head-esque. That's what Dogfish Head has always been known for. It's off-center and that's the whole point of their brews. You could certainly see these folks taking sake and experimenting with it and trying new things. I think that alone will peak a lot of folks' interest there. How sustainable it is, how sticky it is. I'm still on the fence about that one. As far as it being a seltzer though, I think I'd sell that concept.
Hill: I can't decide which I'm less interested in, carbonated sake or Maria's $120 candle.
Gallagher: The candle is cute. I'll send it to you and then you can decide.
Hill: Up next, we've got a couple of thoughts on the business of weddings and a couple of stocks on our radar. Stay right here. This is Motley Fool Money.
Welcome back to Motley Fool Money, Chris Hill here with Maria Gallagher and Jason Moser. Our email address is radio@fool.com. We got an email from Eric B. He writes, "I've been a fan of the show over the last few years and you've truly helped me become a better investor." Thanks, Eric. That's why we do what we do. He goes on to ask, "What is the best way to get exposure to the wedding market/industry. With so many weddings postponed last year due to the pandemic, I'd expect a surge in demand later this year assuming we get a hold of the Delta variant and can resume reopening the economy. Are there any ETFs or stocks that would be good exposure to that industry?" Great question, Eric. Maria, you were saying during our production meeting earlier today that you have a bunch of weddings coming up.
Gallagher: Yeah, I'm at the age where a lot of people I know are planning to get married, about to get married, getting married soon. I think I would think about it in a couple of different ways. First is, where are they planning? The natural place to start thinking about planning a wedding, especially as more and more of them are in 2022, 2023, because all of these venues are booked up as the place to go is Pinterest. There's over 38 million Pinterest boards specifically dedicated to weddings. Then you start thinking where are they registering places like Target and Wayfair for more affordable options, places like Restoration Hardware for more high-end stuff if they're furnishing an apartment. Then how are they budgeting? How are they styling their wedding? Is it low key? Is it DIY? That's a lot of people in my life. You're looking at Etsy for ideas of things like bachelorette party favors, or ways to ask for bridesmaids or ways to decorate your wedding and make it special but in a more of an affordable way. Then lastly, it's just where are you shopping? Where people buy dresses, where people buy suits to attend. Anthropologie's owned by Urban Outfitters. I just recently bought a maid of honor dress from Anthropologie. My sister bought her wedding dress from Anthropologie. I think that if you look at it from all of these different angles about how people spend their time going to weddings, where people are spending their money when you're thinking about weddings. That's how I start thinking about that.
Hill: Wow. That's a six-stock basket for the comeback in weddings. What do you think, Jason?
Moser: Well, you know what all of this involves, Chris? It involves spending money. Am I right?
Hill: Yes.
Moser: Of course I'm right. It involves spending money. How's that money being spent? Say it with me kids, war on cash. You have to love all of these companies in this new fintech space, whether it's PayPal or Square. Look at the stalwarts like Visa, Mastercard, American Express. However, this money is being spent, look toward those types of businesses as well because that money is moving from point A to point B. That always to me, represents a great way to capitalize on any long-term market opportunity.
Hill: Thanks again for the question, Eric, and keep emails coming into radio@fool.com. Let's get to the stocks on our radar. Our man behind the glass, Dan Boyd, is going to hit you with a question. Maria Gallagher, you're up first. What are you looking at this week?
Gallagher: This week is Roblox. They just recently announced earnings. Their revenue was up 127%; bookings were up 35%; their daily active users were up 29%. Their hours engaged were 9.7 billion, which is up about 13%. I think what is really interesting with Roblox is how many people are there, how are they expanding that demographic to that above 13, continuing to expand internationally, and how are people spending their money on that platform? Digging into those numbers a little bit and understanding how people are spending their time and their money on Roblox is going to be really interesting.
Hill: The ticker symbol?
Gallagher: RBLX.
Hill: Dan, question about Roblox?
Dan Boyd: You know what, Chris, we talk about Roblox so much on this show. I have a confession. I don't really know what this company does, and at this point, I'm a little afraid to ask.
Gallagher: They created the metaverse. It's like new Sims, but it's all online. You go in, you have an avatar, you interact with other avatars and you play games. It's like the Sims, but you don't have to buy their CDD.
Boyd: Does the Roblox metaverse have that funny language that Sims speak?
Gallagher: I don't have a Roblox metaverse, but I think maybe. You just spend more money on Roblox because it's all online as opposed to buying the Sims game.
Hill: Jason Moser, what are you looking at?
Moser: Taking a look at Elastic; ticker is ESTC. Elastic is a company that offers to customers the tools to perform search, analysis, and visualization of all of this data that is out there to help businesses achieve the best outcomes possible. They will be reporting earnings next Wednesday after the market closes. There's been just a mediocre year to date. The stock is up a little bit but when they just wrapped up their fiscal year here recently, they did so with over 15,000 total subscription customers and more than 730 clients with annual contract values above $100,000. Approximately 93% of Elastic's revenue was tied to subscriptions. As customers get larger, so does their relationship with Elastic. In fact, more than 45% of customers with at least $1 million in annual contract value subscribed to all three of the company's primary solutions. That tells us that maybe there's some network effects to play here. There's some switching costs and some stickiness there to the business. I'll be interested to see what they have to say on Wednesday.
Hill: Dan, question about Elastic?
Boyd: Yes. Jason, I've got to ding you here, because Elastic was brought to the table within, I want to say, the last month and a half. Aren't there other stocks we can talk about, Jason?
Moser: Dan.
Boyd: I know that you're always talking about the War on Cash. You're always talking about your different technology stocks. Come on, Jason. Let's get a new stock in here.
Moser: Listen, man, I'm not after hearts and minds here, Dan. I'm just trying to make people money, and that's what we're doing here with Elastic, so I encourage you to keep an eye on this report next Wednesday. We'll take it from there. How about we cover it in next Friday's show? We'll see how things look.
Hill: Interesting choice you got to make here, Dan. One you want to add to your watchlist?
Dan Boyd: I'm going to go with Roblox, but it's because when I was in high school, a friend of mine had the Sims, and he made a character for me in the Sims and then his dad in the Sims locked me in the bathroom and I died. So that was a somewhat formative experience for me, and I'm just going to go with Roblox.
Hill: What a dark way to end the show. We're out of time. Maria Gallagher, Jason Moser, thanks for being here. Thanks for listening, everyone. We'll see you next week.
American Express is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Chris Hill owns shares of Amazon, Chipotle Mexican Grill, Costco Wholesale, Etsy, Home Depot, JPMorgan Chase, Johnson & Johnson, Lowes, Microsoft, PayPal Holdings, Pinterest, and Visa. Jason Moser owns shares of Amazon, Chipotle Mexican Grill, Etsy, Mastercard, PayPal Holdings, Square, Visa, and Wayfair. Maria Gallagher owns shares of Elastic, Etsy, PayPal Holdings, Pinterest, Square, and Visa. The Motley Fool owns shares of and recommends Amazon, Beyond Meat, Chipotle Mexican Grill, Constellation Brands, Costco Wholesale, Elastic, Etsy, Farfetch Limited, Home Depot, Mastercard, Microsoft, Nvidia, PayPal Holdings, Pinterest, Roblox, Square, Tesla, and Visa. The Motley Fool recommends Diageo, Johnson & Johnson, Lowes, and Wayfair and recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2022 $75 calls on PayPal Holdings, and short January 2022 $1,940 calls on Amazon. 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.
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A full transcript follows the video. See the 10 stocks *Stock Advisor returns as of August 9, 2021 This video was recorded on Aug. 20, 2021. I feel like it's one of the best shows ever made, but even I'm most likely going to stream that on video when it comes out.
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A full transcript follows the video. See the 10 stocks *Stock Advisor returns as of August 9, 2021 This video was recorded on Aug. 20, 2021. I feel like it's one of the best shows ever made, but even I'm most likely going to stream that on video when it comes out.
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A full transcript follows the video. See the 10 stocks *Stock Advisor returns as of August 9, 2021 This video was recorded on Aug. 20, 2021. I feel like it's one of the best shows ever made, but even I'm most likely going to stream that on video when it comes out.
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Welcome back to Motley Fool Money, Chris Hill here with Maria Gallagher and Jason Moser. A full transcript follows the video. See the 10 stocks *Stock Advisor returns as of August 9, 2021 This video was recorded on Aug. 20, 2021.
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2021-08-20 00:00:00 UTC
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Diageo Stock At $200: More Gains Likely?
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DEO
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https://www.nasdaq.com/articles/diageo-stock-at-%24200%3A-more-gains-likely-2021-08-20
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nan
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nan
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Diageo stock (NYSE: DEO) has increased 6% in the last one month and currently trades close to $200 per share. Along with a successful vaccine rollout, lifting of lockdowns, reopening of restaurants/pubs, and improving consumer sentiment, company specific factors were also responsible for the recent rally. Additionally, strong and better-than-expected FY2021 (ending June 2021) results have also helped in the stock surging over the last one month. The company reported 16% y-o-y rise in FY2021, mainly propelled by its biggest market – the U.S., as reopening of bars and restaurants helped boost demand. The company has also invested resources to leverage its e-commerce capabilities over recent months. Also, Diageo announced plans to expand its manufacturing capability by installing two can lines at a new facility in Plainfield, IL. The facility is worth roughly $80 million, with the capacity to produce more than 25 million Ready-To-Drink cans.
But will Diageo’s stock continue its upward trajectory over the coming weeks, or is a correction in the stock more likely? According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock average more than 7% in the next six-month (126 trading days) period after experiencing a 6% rise over the previous one-month (21 trading days) period. There is a 68.5% probability that the stock would give positive returns over the next six months. But how would these numbers change if you are interested in holding DEO stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test DEO stock chances of a rise after a fall and vice versa. You can test the chance of recovery over different time intervals of a quarter, month, or even just one day!
MACHINE LEARNING ENGINE – try it yourself:
IF DEO stock moved by -5% over five trading days, THEN over the next 21 trading days, DEO stock moves an average of 3 percent, with a 72% probability of a positive return over the next month.
Some Fun Scenarios, FAQs & Making Sense of DEO Stock Movements:
Question 1: Is the average return for Diageo stock higher after a drop?
Answer:
Consider two situations,
Case 1: Diageo stock drops by -5% or more in a week
Case 2: Diageo stock rises by 5% or more in a week
Is the average return for Diageo stock higher over the subsequent month after Case 1 or Case 2?
DEO stock fares better after Case 1, with an average return of 3% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1.7% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how Diageo stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer:
If you buy and hold Diageo stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For DEO stock, the returns over the next N days after a -5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500:
Question 3: What about the average return after a rise if you wait for a while?
Answer:
The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks – although DEO stock appears to be an exception to this general observation.
DEO’s returns over the next N days after a 5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:
It’s pretty powerful to test the trend for yourself for Diageo stock by changing the inputs in the charts above.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market since 2016.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Diageo stock (NYSE: DEO) has increased 6% in the last one month and currently trades close to $200 per share. According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock average more than 7% in the next six-month (126 trading days) period after experiencing a 6% rise over the previous one-month (21 trading days) period. But how would these numbers change if you are interested in holding DEO stock for a shorter or a longer time period?
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock average more than 7% in the next six-month (126 trading days) period after experiencing a 6% rise over the previous one-month (21 trading days) period. You can test the answer and many other combinations on the Trefis Machine Learning Engine to test DEO stock chances of a rise after a fall and vice versa. Some Fun Scenarios, FAQs & Making Sense of DEO Stock Movements: Question 1: Is the average return for Diageo stock higher after a drop?
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock average more than 7% in the next six-month (126 trading days) period after experiencing a 6% rise over the previous one-month (21 trading days) period. DEO stock fares better after Case 1, with an average return of 3% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1.7% for Case 2. Diageo stock (NYSE: DEO) has increased 6% in the last one month and currently trades close to $200 per share.
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock average more than 7% in the next six-month (126 trading days) period after experiencing a 6% rise over the previous one-month (21 trading days) period. MACHINE LEARNING ENGINE – try it yourself: IF DEO stock moved by -5% over five trading days, THEN over the next 21 trading days, DEO stock moves an average of 3 percent, with a 72% probability of a positive return over the next month. For DEO stock, the returns over the next N days after a -5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500: Question 3: What about the average return after a rise if you wait for a while?
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e9a7b99b-fcc5-4ea5-b4c9-d1381409e047
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727664.0
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2021-07-27 00:00:00 UTC
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7 Stocks To Buy if the Economy Rolls Over on Recessionary Worries
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DEO
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https://www.nasdaq.com/articles/7-stocks-to-buy-if-the-economy-rolls-over-on-recessionary-worries-2021-07-27
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There’s currently little to suggest that the economy is in any immediate danger of tanking. Well, to be more accurate there are mixed signals in relation to a U.S. economic rebound. Back in June, the U.S. Bureau of Economic Analysis released data indicating that GDP growth reached 6.4% in the first quarter. That was almost inarguably a positive.
Yet, there are arguments and signals indicating that the economy may not be as strong as it may appear at first blush. By now, most people are aware that the U.S. inflation report for June was rather serious. Inflation increased 5.4% last month relative to the same period a year prior. The Fed is actively trying to characterize that figure as transitory. That alone is leading consumers to worry.
Economic stimulus programs and corresponding money printing figure largely into that aspect of the argument. Time will tell what the effects of such choices will be on the U.S. economy. Housing prices are hot, as are used car prices, and the end of rent moratoriums could spell trouble. None of this even mentions continued pandemic concerns and the threat of the delta Covid-19 variant.
7 Dividend Stocks To Buy as Treasury Yields Tumble
A bearish take on the economy is that it may indeed roll over. That would mean recessionary times could be on the horizon. In that case a shift toward defensive stocks would be in order.
In this theoretical scenario, these stocks make a lot of sense to buy.
Coca-Cola (NYSE:KO)
Philip Morris International (NYSE:PM)
Mondelez International (NASDAQ:MDLZ)
AGNC Investment (NASDAQ:AGNC)
Diageo (NYSE:DEO)
The AES Corporation (NYSE:AES)
UGI Corporation (NYSE:UGI)
Stocks to Buy: Coca-Cola (KO)
KO) bottles and cans. coke is a blue-chip stocks" width="300" height="169">
Source: Fotazdymak / Shutterstock.com
The idea here is that in the event that the economy flounders, defensive stocks are a smart choice. Coca-Cola has become almost synonymous with defensive stocks in general. It is noted as a strong, stable choice for investors in the best of times and in the worst of times.
Coca-Cola couldn’t avoid the precipitous price drop that affected the entire market when the pandemic began. But it has performed steadily since. KO stock prices only momentarily faltered for a few weeks at the absolute depths of the pandemic. By the beginning of April 2020 they were near $49.
Prices have marched steadily upward from there and currently sit above $57. That range is testament to the kind of steady, reliable investment that Coca-Cola represents.
Is KO stock one to buy for growth investors seeking rapid price appreciation? Absolutely not. But it is a stock to buy for those investors looking for a steady performer that offers a dividend. That dividend will almost certainly be 42 cents in the fourth quarter. It should rise to 43 cents per quarter next year following the same pattern of progression it has for years.
And Coca-Cola recently reported strong second quarter earnings on July 21. Net revenues grew by 42% in Q2, to hit $10.1 billion. Operating income increased by 52%. That’s why KO stock continues to make sense in just about any economy.
Philip Morris International (PM)
Source: vfhnb12 / Shutterstock.com
Like Coca-Cola, Philip Morris is another name that has become nearly synonymous with the defensive stock sector. It, too, was unable to escape the gravity of the pandemic onset on the stock market. The good news is that PM stock now sits above pre-pandemic prices which hovered near $87. Share prices are above $99. It does seem that not much can hold Philip Morris down for long.
Philip Morris released second quarter earnings on July 20. Share prices dropped from just under $98, to below $95 on news that “it now expects to earn between $5.76 and $5.86 a share, down from a prior range of $5.93 to $6.03.”
PM stock was already back above $98 a few short days later. The company blamed customs assessments in Saudi Arabia for the decrease in guidance. It had warned of the possibility before.
7 Cheap Value Stock Plays for August
The other truth that provides testament to Philip Morris’ resilience is the fact that it is transitioning away from smoked tobacco as regulations stiffen. Smoke-free products contributed 29% of revenue in the quarter. PM stock is characterized as a “sin stock” just about as often as it’s call a “defensive stock.” PM shares simply continue to remain steady despite the transition.
Whichever moniker is more apt is irrelevant, it performs and reliably provides a $1.20 dividend.
Mondelez International (MDLZ)
Source: Shutterstock
Mondelez International is a snack food and beverage giant. Investors who don’t recognize it based on its current name may know it through its previous incarnation as Kraft, now Kraft-Heinz (NASDAQ:KHC). The two companies split back in 2012. That corporate history lesson aside, MDLZ stock is a solid choice when the economy rolls over.
The company will release Q2 earnings later today. MDLZ stock should remain relatively steady no matter the outcome. Analysts are positive in any case. The 17 analysts who cover Mondelez expect that it should record $6.41 billion in revenue, up 8.5%. They project that the company should post 5.7% and 6.7% growth in the third and fourth quarters of 2021.
One of the few knocks on the consumer staples giant is that it does have a relatively modest 1.94% dividend yield. That equates to 31.5 cents for each share. Nevertheless, Wall Street is undeterred in recommending MDLZ as a buy.
AGNC Investment (AGNC)
Source: mTaira / Shutterstock.com
REITs, or real estate investment trusts, usually feature regularly on defensive stock lists. Part of the reason that these vehicles perform well as a defensive strategy is the role of real estate within the broader economy.
Generally speaking, rent is one of the least avoidable expenses consumers face. However, REITs come in several flavors but often focus on the residential market or the commercial market. The residential market is arguably the more important of the two as people need homes despite the economy.
That makes residential REITs, including AGNC stock, strong bets in tough times. The company faltered somewhat in early June which coincided with its announcement of a 12-cent dividend.
7 Dividend Stocks To Buy as Treasury Yields Tumble
There is little rhyme or reason as the dividend was very much in line with the previous monthly 12-cent payout that it had issued since April of 2020. Look for the company to approach pre-pandemic levels if Q2 earnings are positive.
Diageo (DEO)
Source: IgorGolovniov / Shutterstock.com
The so-called ‘sin stocks’ are often ‘defensive stocks’. And consumer demand for alcohol is generally considered recession proof. However, certain demand dynamics occur within the alcohol industry depending on the prevailing economic conditions. For example, in the 2008 recession beer sales declined but hard liquor sales shot way up.
In the event that a recession does occur, and it follows that same trend I just mentioned, Diageo will be a strong play. That’s because Diageo’s brands are almost entirely hard liquors. They include Johnny Walker, Crown Royal, Tanqueray, Smirnoff, and Bailey’s to name a few. The sole beer brand is Guinness.
Long story short: Hard liquor sales could soon spike, and DEO stock will be very profitable in that case.
Diageo will release earnings at the end of July, so we’ll have to wait a bit to see how that affects share prices. But if short interest is any indication of the direction DEO stock is headed, then it’s probably upward. Short interest sits at 0.11%, meaning almost no one is betting that share prices will go down soon.
The AES Corporation (AES)
Source: Shutterstock
The AES Corporation is an electric utilities company. Like all the other sectors represented on this list, utilities tend to do very well regardless of the economic climate. That doesn’t mean that all utilities are investment grade, but it does suggest the sector is worth consideration in tough times.
AES looks like it is among those strong performing utilities worthy of investment. According to the analysts covering AES stock there is growth in front of the Arlington, Virginia-based company. Those analysts anticipate that the power producer will see revenue growth of 2.8% throughout 2021. That figure should rise to 3.6% throughout 2022.
7 Cheap Value Stock Plays for August
Those growth figures may not seem exceptional. However, in a traditional and predictable sector like utilities that growth corresponds to steady increases in share prices. AES stock prices haven’t been steady this year but they are predicted to rise. The average target stock price for AES stock is $29.83, well above the $24 where it currently trades.
UGI Corporation (UGI)
Source: Shutterstock
UGI Corporation is an under-the-radar company that is far from a household name. But the gas utilities company is one worth considering if the economy tanks. Is the company sexy? Not at all. But it is reliable, and reliable is attractive to a certain subset of investors.
In fact, UGI Corp. is so reliable that it has paid a consecutive dividend for more than 134 years. UGI faltered in terms of share price at the onset of the pandemic. It has rebounded nicely and looks to have further to go.
The UGI stock price has increased from under $25 a share at the depth of the market crash to above $46 presently. Prices eclipsed $50 two years ago.
The company markets itself as a balanced growth and income investment. That’s exactly the kind of company that’s prepared to weather an economic downturn. The utilities sector is packed with such companies and UGI stock is a strong candidate among them.
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 Stocks To Buy if the Economy Rolls Over on Recessionary Worries 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.
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Coca-Cola (NYSE:KO) Philip Morris International (NYSE:PM) Mondelez International (NASDAQ:MDLZ) AGNC Investment (NASDAQ:AGNC) Diageo (NYSE:DEO) The AES Corporation (NYSE:AES) UGI Corporation (NYSE:UGI) Stocks to Buy: Coca-Cola (KO) KO) bottles and cans. Diageo (DEO) Source: IgorGolovniov / Shutterstock.com The so-called ‘sin stocks’ are often ‘defensive stocks’. Long story short: Hard liquor sales could soon spike, and DEO stock will be very profitable in that case.
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Coca-Cola (NYSE:KO) Philip Morris International (NYSE:PM) Mondelez International (NASDAQ:MDLZ) AGNC Investment (NASDAQ:AGNC) Diageo (NYSE:DEO) The AES Corporation (NYSE:AES) UGI Corporation (NYSE:UGI) Stocks to Buy: Coca-Cola (KO) KO) bottles and cans. Diageo (DEO) Source: IgorGolovniov / Shutterstock.com The so-called ‘sin stocks’ are often ‘defensive stocks’. Long story short: Hard liquor sales could soon spike, and DEO stock will be very profitable in that case.
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Coca-Cola (NYSE:KO) Philip Morris International (NYSE:PM) Mondelez International (NASDAQ:MDLZ) AGNC Investment (NASDAQ:AGNC) Diageo (NYSE:DEO) The AES Corporation (NYSE:AES) UGI Corporation (NYSE:UGI) Stocks to Buy: Coca-Cola (KO) KO) bottles and cans. Diageo (DEO) Source: IgorGolovniov / Shutterstock.com The so-called ‘sin stocks’ are often ‘defensive stocks’. Long story short: Hard liquor sales could soon spike, and DEO stock will be very profitable in that case.
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Coca-Cola (NYSE:KO) Philip Morris International (NYSE:PM) Mondelez International (NASDAQ:MDLZ) AGNC Investment (NASDAQ:AGNC) Diageo (NYSE:DEO) The AES Corporation (NYSE:AES) UGI Corporation (NYSE:UGI) Stocks to Buy: Coca-Cola (KO) KO) bottles and cans. Diageo (DEO) Source: IgorGolovniov / Shutterstock.com The so-called ‘sin stocks’ are often ‘defensive stocks’. Long story short: Hard liquor sales could soon spike, and DEO stock will be very profitable in that case.
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9e81c4dd-8660-410b-875c-5e371b9d415b
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727665.0
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2021-07-19 00:00:00 UTC
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Energy Sector Update for 07/19/2021: DUK,XOM,DEO,UAL,XRX,CGRN,FANG
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DEO
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https://www.nasdaq.com/articles/energy-sector-update-for-07-19-2021%3A-dukxomdeoualxrxcgrnfang-2021-07-19
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nan
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nan
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Energy stocks plunged in Monday trading amid a more than 7% decline in global oil prices, with the NYSE Energy Sector Index and the SPDR Energy Select Sector ETF shedding 4.2% each. The Philadelphia Oil-Service Sector index was posting a 4.6% decline and the Dow Jones US Utilities Index was down 2.4%.
Front-month West Texas Intermediate crude oil was $5.39 lower at $66.42 per barrel after the Organization of Petroleum Exporting Countries and allies agreed to increase production beginning next month. The global benchmark Brent crude contract also was declining $5.44 to $68.15 per barrel while Henry Hub natural gas futures rose $0.11 to $3.74 per 1 million BTU.
In company news, Duke Energy (DUK) declined 1.7%, giving back a narrow gain earlier Monday, after the electric utility pushed back against renewed efforts by activist investor Elliott Investment Management for operational improvements at the company as well as board-level reforms, saying the hedge fund "again failed to provide any concrete and specific ideas to increase shareholder value."
Exxon Mobil (XOM) fell 4.1%. Principal financial officer Andrew Swiger will retire after 43 years at the energy major and former Diageo (DEO), United Airlines (UAL) and Xerox (XRX) executive Kathryn Mikells will become chief financial officer on Aug. 9, the company said.
Diamondback Energy (FANG) dropped 7.5% after Morgan Stanley cut its price target for the oil and natural gas producer by $3 to $114 a share but also reiterated its overweight rating for the stock.
To the upside, Capstone Green Energy (CGRN) rose fractionally after saying it will be providing two C65 microturbines to Austria-based Innovametall Stahl- und Metallbau for use in an ultra-low emissions combined heat and power system.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Principal financial officer Andrew Swiger will retire after 43 years at the energy major and former Diageo (DEO), United Airlines (UAL) and Xerox (XRX) executive Kathryn Mikells will become chief financial officer on Aug. 9, the company said. Front-month West Texas Intermediate crude oil was $5.39 lower at $66.42 per barrel after the Organization of Petroleum Exporting Countries and allies agreed to increase production beginning next month. Diamondback Energy (FANG) dropped 7.5% after Morgan Stanley cut its price target for the oil and natural gas producer by $3 to $114 a share but also reiterated its overweight rating for the stock.
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Principal financial officer Andrew Swiger will retire after 43 years at the energy major and former Diageo (DEO), United Airlines (UAL) and Xerox (XRX) executive Kathryn Mikells will become chief financial officer on Aug. 9, the company said. Energy stocks plunged in Monday trading amid a more than 7% decline in global oil prices, with the NYSE Energy Sector Index and the SPDR Energy Select Sector ETF shedding 4.2% each. The Philadelphia Oil-Service Sector index was posting a 4.6% decline and the Dow Jones US Utilities Index was down 2.4%.
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Principal financial officer Andrew Swiger will retire after 43 years at the energy major and former Diageo (DEO), United Airlines (UAL) and Xerox (XRX) executive Kathryn Mikells will become chief financial officer on Aug. 9, the company said. Energy stocks plunged in Monday trading amid a more than 7% decline in global oil prices, with the NYSE Energy Sector Index and the SPDR Energy Select Sector ETF shedding 4.2% each. In company news, Duke Energy (DUK) declined 1.7%, giving back a narrow gain earlier Monday, after the electric utility pushed back against renewed efforts by activist investor Elliott Investment Management for operational improvements at the company as well as board-level reforms, saying the hedge fund "again failed to provide any concrete and specific ideas to increase shareholder value."
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Principal financial officer Andrew Swiger will retire after 43 years at the energy major and former Diageo (DEO), United Airlines (UAL) and Xerox (XRX) executive Kathryn Mikells will become chief financial officer on Aug. 9, the company said. Energy stocks plunged in Monday trading amid a more than 7% decline in global oil prices, with the NYSE Energy Sector Index and the SPDR Energy Select Sector ETF shedding 4.2% each. Front-month West Texas Intermediate crude oil was $5.39 lower at $66.42 per barrel after the Organization of Petroleum Exporting Countries and allies agreed to increase production beginning next month.
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ef75c3f8-b1ef-4802-bb46-208ea1148103
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727666.0
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2021-07-19 00:00:00 UTC
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Energy Sector Update for 07/19/2021: XOM, DEO, UAL, XRX, DUK, CGRN
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DEO
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https://www.nasdaq.com/articles/energy-sector-update-for-07-19-2021%3A-xom-deo-ual-xrx-duk-cgrn-2021-07-19
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nan
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nan
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Energy stocks were sharply lower this afternoon amid a nearly 7% decline in global oil prices, with the NYSE Energy Sector Index falling 4.1% while the SPDR Energy Select Sector ETF was down 4.4%.
Front-month West Texas Intermediate crude oil was sinking $4.84 to $66.97 per barrel after the Organization of Petroleum Exporting Countries and its allies agreed to increase production by 400,000 barrels per day beginning next month. The global benchmark Brent crude contract also was declining $4.43 to $69.16 per barrel while Henry Hub natural gas futures were $0.06 higher at $3.74 per 1 million BTU.
Among energy-related ETFs, the United States Oil Fund was dropping 6.1% while the United States Natural Gas Fund was adding 1.5%. The Philadelphia Oil-Service Sector index was posting a 4.4% decline and the Dow Jones US Utilities Index was sinking 2.3%.
In company news, Exxon Mobil (XOM) fell 4.5%. Principal financial officer Andrew Swiger will retire after 43 years at the energy major and former Diageo (DEO), United Airlines (UAL) and Xerox (XRX) executive Kathryn Mikells will become chief financial officer on Aug. 9, the company said.
Duke Energy (DUK) was 1.4% lower, giving back a small morning gain that followed activist investors Elliott Investment Management Monday renewing its call for operational improvements and board-level reforms at the utility company and chiding Duke management for its response to the group's May 17 letter.
Capstone Green Energy (CGRN) slipped 0.1% after Monday saying it will be providing two C65 microturbines to Austria-based Innovametall Stahl- und Metallbau for use in an ultra-low emissions combined heat and power system.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Principal financial officer Andrew Swiger will retire after 43 years at the energy major and former Diageo (DEO), United Airlines (UAL) and Xerox (XRX) executive Kathryn Mikells will become chief financial officer on Aug. 9, the company said. The global benchmark Brent crude contract also was declining $4.43 to $69.16 per barrel while Henry Hub natural gas futures were $0.06 higher at $3.74 per 1 million BTU. Duke Energy (DUK) was 1.4% lower, giving back a small morning gain that followed activist investors Elliott Investment Management Monday renewing its call for operational improvements and board-level reforms at the utility company and chiding Duke management for its response to the group's May 17 letter.
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Principal financial officer Andrew Swiger will retire after 43 years at the energy major and former Diageo (DEO), United Airlines (UAL) and Xerox (XRX) executive Kathryn Mikells will become chief financial officer on Aug. 9, the company said. Energy stocks were sharply lower this afternoon amid a nearly 7% decline in global oil prices, with the NYSE Energy Sector Index falling 4.1% while the SPDR Energy Select Sector ETF was down 4.4%. Among energy-related ETFs, the United States Oil Fund was dropping 6.1% while the United States Natural Gas Fund was adding 1.5%.
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Principal financial officer Andrew Swiger will retire after 43 years at the energy major and former Diageo (DEO), United Airlines (UAL) and Xerox (XRX) executive Kathryn Mikells will become chief financial officer on Aug. 9, the company said. Energy stocks were sharply lower this afternoon amid a nearly 7% decline in global oil prices, with the NYSE Energy Sector Index falling 4.1% while the SPDR Energy Select Sector ETF was down 4.4%. Duke Energy (DUK) was 1.4% lower, giving back a small morning gain that followed activist investors Elliott Investment Management Monday renewing its call for operational improvements and board-level reforms at the utility company and chiding Duke management for its response to the group's May 17 letter.
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Principal financial officer Andrew Swiger will retire after 43 years at the energy major and former Diageo (DEO), United Airlines (UAL) and Xerox (XRX) executive Kathryn Mikells will become chief financial officer on Aug. 9, the company said. Energy stocks were sharply lower this afternoon amid a nearly 7% decline in global oil prices, with the NYSE Energy Sector Index falling 4.1% while the SPDR Energy Select Sector ETF was down 4.4%. Front-month West Texas Intermediate crude oil was sinking $4.84 to $66.97 per barrel after the Organization of Petroleum Exporting Countries and its allies agreed to increase production by 400,000 barrels per day beginning next month.
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4a1f1365-7018-41b2-8002-d68deefccd9e
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727667.0
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2021-07-02 00:00:00 UTC
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What’s Behind The 20% Rally In Diageo Stock?
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DEO
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https://www.nasdaq.com/articles/whats-behind-the-20-rally-in-diageo-stock-2021-07-02
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nan
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nan
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Diageo stock (NYSE: DEO) has increased more than 21% in the last six months and now trades close to $193 per share. Along with a successful vaccine rollout, lifting of lockdowns, reopening of restaurants/pubs, and improving consumer sentiment, company specific factors were also responsible for the recent rally. The company has been lately witnessing robust trends in North America, its largest market. Sales in North America accelerated 12.3% in the first half of FY2021. Strong consumer demand, market share growth in the spirits category, positive category mix, and uninterrupted stock replenishments by distributors and retailers have been key drivers for the region’s growth. The momentum is expected to continue in the coming months. The company has also invested resources to leverage its e-commerce capabilities over recent months. Also, Diageo announced plans to expand its manufacturing capability by installing two can lines at a new facility in Plainfield, IL. The facility, which will be worth roughly $80 million, comes with the capacity to produce more than 25 million Ready-To-Drink cans and will be ready for commercial production by the summer of 2021.
But will Diageo’s stock continue its upward trajectory over the coming weeks, or is a correction in the stock more likely? According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock average more than 6% in the next six-month (126 trading days) period after experiencing a 21% rise over the previous six-month (126 trading days) period. What also comes out of the analysis is that patient investors will benefit, as the stock provides healthy double-digit returns to ones who wait it out for a year.
But how would these numbers change if you are interested in holding DEO stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning to test DEO stock chances of a rise after a fall and vice versa. You can test the chance of recovery over different time intervals of a quarter, month, or even just one day!
MACHINE LEARNING ENGINE – try it yourself:
IF DEO stock moved by -5% over five trading days, THEN over the next 21 trading days, DEO stock moves an average of 3 percent, with a 74% probability of a positive return over the next month.
Some Fun Scenarios, FAQs & Making Sense of DEO Stock Movements:
Question 1: Is the average return for Diageo stock higher after a drop?
Answer:
Consider two situations,
Case 1: Diageo stock drops by -5% or more in a week
Case 2: Diageo stock rises by 5% or more in a week
Is the average return for Diageo stock higher over the subsequent month after Case 1 or Case 2?
DEO stock fares better after Case 1, with an average return of 3.1% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1.6% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how Diageo stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer:
If you buy and hold Diageo stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For DEO stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:
Question 3: What about the average return after a rise if you wait for a while?
Answer:
The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks – although DEO stock appears to be an exception to this general observation.
DEO’s returns over the next N days after a 5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:
It’s pretty powerful to test the trend for yourself for Diageo stock by changing the inputs in the charts above.
E-commerce is eating into retail sales, but this might be an investment opportunity. See our theme on E-commerce Stocks for a diverse list of companies that stand to benefit from the big shift.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Diageo stock (NYSE: DEO) has increased more than 21% in the last six months and now trades close to $193 per share. According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock average more than 6% in the next six-month (126 trading days) period after experiencing a 21% rise over the previous six-month (126 trading days) period. But how would these numbers change if you are interested in holding DEO stock for a shorter or a longer time period?
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock average more than 6% in the next six-month (126 trading days) period after experiencing a 21% rise over the previous six-month (126 trading days) period. You can test the answer and many other combinations on the Trefis Machine Learning to test DEO stock chances of a rise after a fall and vice versa. Some Fun Scenarios, FAQs & Making Sense of DEO Stock Movements: Question 1: Is the average return for Diageo stock higher after a drop?
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock average more than 6% in the next six-month (126 trading days) period after experiencing a 21% rise over the previous six-month (126 trading days) period. DEO stock fares better after Case 1, with an average return of 3.1% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1.6% for Case 2. Diageo stock (NYSE: DEO) has increased more than 21% in the last six months and now trades close to $193 per share.
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock average more than 6% in the next six-month (126 trading days) period after experiencing a 21% rise over the previous six-month (126 trading days) period. For DEO stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500: Question 3: What about the average return after a rise if you wait for a while? Diageo stock (NYSE: DEO) has increased more than 21% in the last six months and now trades close to $193 per share.
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0978249a-2431-4969-a266-15b153be86a9
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727668.0
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2021-05-20 00:00:00 UTC
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Is Diageo Stock Fairly Valued At $190?
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DEO
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https://www.nasdaq.com/articles/is-diageo-stock-fairly-valued-at-%24190-2021-05-20
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nan
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nan
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After rising 21% in the last six months and more than 5% in the last one week, Diageo stock (NYSE: DEO), which now trades at $190, seems to have reached its near term potential. The successful rollout of the vaccination program and stimulus measures have led to expectations of faster economic recovery and a rise in consumer spending. This will benefit a beverage giant like Diageo to improve its sales and margins. The reopening of restaurants and retail chains with lockdowns being lifted gradually, along with the company’s focus on premiumization, is likely to provide a boost to its top and bottom line in the coming quarters. Though the recent spike in Covid positive cases was a sign of worry, the absence of strict lockdowns (like the ones seen in 2020) will not see any major hit to the company’s business. These factors led to the recent surge in DEO’s stock price to $190.
But will Diageo’s stock continue its upward trajectory over the coming weeks, or is a correction in the stock more likely? According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock average close to 2% in the next three-month (63 trading days) period after experiencing a 21% rise over the previous six-month (126 trading days) period. What also comes out of the analysis is that patient investors will benefit, as the stock provides healthy double-digit returns to ones who wait it out for a year.
But how would these numbers change if you are interested in holding DEO stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning to test DEO stock chances of a rise after a fall and vice versa. You can test the chance of recovery over different time intervals of a quarter, month, or even just one day!
MACHINE LEARNING ENGINE – try it yourself:
IF DEO stock moved by -5% over five trading days, THEN over the next 21 trading days, DEO stock moves an average of 3 percent, which implies a return which is 0.7% more than that of the S&P500.
More importantly, there is 74% probability of a positive return over the next 21 trading days and 54% probability of a positive excess return after a -5% change over five trading days.
Some Fun Scenarios, FAQs & Making Sense of DEO Stock Movements:
Question 1: Is the average return for Diageo stock higher after a drop?
Answer:
Consider two situations,
Case 1: Diageo stock drops by -5% or more in a week
Case 2: Diageo stock rises by 5% or more in a week
Is the average return for Diageo stock higher over the subsequent month after Case 1 or Case 2?
DEO stock fares better after Case 1, with an average return of 3.1% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1.6% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how Diageo stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer:
If you buy and hold Diageo stock, the expectation is over time the near term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For DEO stock, the returns over the next N days after a -5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500:
Question 3: What about the average return after a rise if you wait for a while?
Answer:
The average return after a rise is generally lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks.
DEO’s returns over the next N days after a 5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500:
It’s pretty powerful to test the trend for yourself for Diageo stock by changing the inputs in the charts above.
E-commerce is eating into retail sales, but this might be an investment opportunity. See our theme on E-commerce Stocks for a diverse list of companies that stand to benefit from the big shift.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After rising 21% in the last six months and more than 5% in the last one week, Diageo stock (NYSE: DEO), which now trades at $190, seems to have reached its near term potential. These factors led to the recent surge in DEO’s stock price to $190. According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock average close to 2% in the next three-month (63 trading days) period after experiencing a 21% rise over the previous six-month (126 trading days) period.
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock average close to 2% in the next three-month (63 trading days) period after experiencing a 21% rise over the previous six-month (126 trading days) period. You can test the answer and many other combinations on the Trefis Machine Learning to test DEO stock chances of a rise after a fall and vice versa. Some Fun Scenarios, FAQs & Making Sense of DEO Stock Movements: Question 1: Is the average return for Diageo stock higher after a drop?
|
According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock average close to 2% in the next three-month (63 trading days) period after experiencing a 21% rise over the previous six-month (126 trading days) period. DEO stock fares better after Case 1, with an average return of 3.1% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1.6% for Case 2. After rising 21% in the last six months and more than 5% in the last one week, Diageo stock (NYSE: DEO), which now trades at $190, seems to have reached its near term potential.
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock average close to 2% in the next three-month (63 trading days) period after experiencing a 21% rise over the previous six-month (126 trading days) period. For DEO stock, the returns over the next N days after a -5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500: Question 3: What about the average return after a rise if you wait for a while? After rising 21% in the last six months and more than 5% in the last one week, Diageo stock (NYSE: DEO), which now trades at $190, seems to have reached its near term potential.
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d1619cbd-df33-49c6-adf3-a1a916842a0c
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727669.0
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2021-05-10 00:00:00 UTC
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7 Fair Trade Stocks to Buy If You Want to #BuildBackFairer
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DEO
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https://www.nasdaq.com/articles/7-fair-trade-stocks-to-buy-if-you-want-to-buildbackfairer-2021-05-10
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The novel coronavirus pandemic has shaken the world. A lot of old economic and cultural practices seem increasingly difficult to defend after seeing the world in quarantine for a year. President Biden campaigned on the slogan “build back better” in regards to restoring and reshaping the economy going forward. Some social advocates put a clever spin on that idea and coined build back fairer instead. With that in mind, fair trade stocks may prosper in coming years as the world charts a new course in the 2020s.
So how should investors look at this trend? Fair trade stocks aren’t that well-defined yet. It’s still an emerging category within the investing framework. Until recently, many other metrics tended to top fairness in terms of investment analysis. For analyzing fair trade, there’s obviously the component of treating farmers and other such laborers well. Also, minimizing environmental harm through things such as green energy and water conservation should merit applause.
7 Small-Cap Stocks To Buy for Their Big Ambitions
With that in mind, an investor looking for fair trade stocks could go through the MSCI’s environmental, social and governance (ESG) database and find high-scoring stocks. To get started, here are seven such fair trade stocks that have high ESG scores. Each excels in ethical inventory sourcing, labor and environmental practices:
McCormick (NYSE:MKC)
Diageo (NYSE:DEO)
Starbucks (NASDAQ:SBUX)
Home Depot (NYSE:HD)
Hormel Foods (NYSE:HRL)
Nestle (OTCMKTS:NSRGY)
Xylem (NYSE:XYL)
Fair Trade Stocks: McCormick (MKC)
MKC) spices lined up on a grocery store shelf." width="300" height="169">
Source: Arne Beruldsen / Shutterstock.com
MSCI ESG Rating: A
McCormick is the global leader in spices and seasonings. It has also developed a leading flavor solutions division that provides sauces, condiments and flavor blends to many leading U.S. restaurants.
In the course of doing business, McCormick sources spices and raw materials from many remote corners of the world. The company, for example, saw a sharp decline in profitability many years ago due to an extreme shortage of vanilla beans due to political unrest in Madagascar, which is the leading grower of vanilla. Naturally, McCormick has had to cultivate stable mutually beneficial relationships with farmers and local governments to ensure steady access to its goods.
To that end, McCormick invests heavily in social development in numerous countries. The company has built schools in Madagascar, provides fresh drinking water in India and has nurtured new farming operations in Indonesia, among other efforts. More generally, McCormick offers bonuses directly to farmers for its Rainforest-Alliance certified products. This helps participants earn a livable wage while giving consumers the confidence in knowing the spices they buy don’t destroy pristine ecosystems.
Furthermore, MSCI judges these efforts to be a success. McCormick is ahead of its food peers in aggregate ESG rating. And MSCI particularly lauds McCormick for its efforts in sustainable and equitable raw material sourcing along with its exemplary supply chain labor standards.
Diageo (DEO)
Source: JL Images / Shutterstock
MSCI ESG Rating: AAA
That’s right, Diageo is one of the rare few companies with a perfect triple-AAA ESG rating. This might seem ironic at first glance. Diageo, after all produces beer and hard spirits. These can have negative social consequences when consumed in excess. And many socially conscious investors shun tobacco stocks altogether due to the societal ramifications.
Regardless, Diageo has made the best of its hand. While the company earns top marks across the board, it’s excellent in reducing water usage and its low-carbon footprint particularly stand out. A brewing company goes through a ton of water in the course of operations; however, Diageo has done its part to make this as ecologically sustainable as possible.
7 Cyclical Stocks To Consider if the Economic Recovery Story Pans Out
Diageo does all this while also treating its shareholders well. In fact, it has increased its annual dividend every year since it was formed in the late 1990s.
Fair Trade Stocks: Starbucks (SBUX)
SBUX) logo on a sign outside of a coffee shop" width="300" height="169">
Source: Grand Warszawski / Shutterstock.com
MSCI ESG Rating: BBB
Starbucks is not perfect on an ESG basis. In fact, MSCI has noted significant deficiencies with some areas of Starbucks’ operations. However, as far as fair trade stocks go, Starbucks is one of the pioneers. Long before fair trade became a household word, Starbucks had taken the initiative to set up programs to buy coffee directly from farmers in places such as Guatemala and Kenya.
Nowadays, Starbucks is on a mission, in partnership with Conservation International, to make coffee the first fully sustainable agricultural crop. As it stands today, Starbucks has helped better the lives of one million people in coffee-producing communities, along with investing more than $100 million in programs for farmers and coffee communities.
Starbucks’ critics love to blast the company for charging high prices. That’s not entirely unfounded, to be certain. However, Starbucks does make sure that some of that value ends up making it to the farmers and families that grow that coffee. Investors seeking to own fair trade stocks should definitely keep Starbucks in mind.
Home Depot (HD)
Source: Jonathan Weiss / Shutterstock.com
MSCI ESG Rating: AA
Unlike Starbucks, Home Depot has a nearly spotless ESG rating. It lagged only in labor relations, while leading in three categories. Of particular importance here, Home Depot leads the way in low carbon footprint.
A home supply company could easily cause a ton of emissions. The stores are huge, and most of the products are heavy. Keeping the stores warm or cold uses a ton of energy. Meanwhile, trucking around all the inventory could burn a ton of gasoline.
Fortunately, Home Depot has taken an active role in reducing its impact on nature. To that end, by the end of 2019, it had already built rooftop solar on 47 of its stores, with another 45 stores on the way. The company purchases wind power to operate many dozens of its stores. And it has installed fuel cells at hundreds more to reduce emissions compared to traditional power methods.
7 Warren Buffett Stocks to Buy for the Next Decade
In these sorts of ways, Home Depot is doing its part to allow consumers to build back better as the housing boom takes shape in 2021.
Fair Trade Stocks: Hormel Foods (HRL)
HRL)" width="300" height="169">
Source: calimedia / Shutterstock.com
MSCI ESG Rating: AA
Hormel joins Home Depot in the prestigious double-AA tier of ESG ratings. I say “joins” because Hormel is a new entrant. MSCI just upgraded the firm’s ESG rating from ‘A’ to ‘AA’ in March 2021.
It’d be easy to think of a pork-centered meat and packaged foods company as an environmental hazard. However, Hormel has actually invested a ton of money and effort in cleaning up its footprint. Its achievements are most notable in water usage, where it has reduced its consumption by hundreds of millions of gallons per year and exceeded its own long-term water usage reduction objectives by 82%.
At the same time, Hormel has quietly pivoted into much more health-conscious products. While the company is known for its namesake SPAM pork product, it is now the leader in organic and naturally raised meats, nut butter, plant-based meat products, guacamole and so on. These newer products help make more responsible and diverse food choices available to meet the sensibilities of millennials and other younger consumers.
Nestle (NSRGY)
NSRGY) logo near a corporate office entrance." width="300" height="169">
Source: Jer123 / Shutterstock.com
MSCI ESG Rating: AA
Nestle is a top-tier international producer of packaged foods, infant formula, bottled water and more. The company has taken some flack from environmentalists, particularly due to packaging for bottled water.
However, beyond the controversy, Nestle is actually one of the leaders in the consumer products space as far as social good goes. Nestle ranked first out of 22 food companies in the latest Access to Nutrition Index, while coming in second out of 40 in Ceres’ analysis of packaged food company’s water management policies.
The 8 ARKK Holdings Weighing Cathie Wood's Famed ARK ETF Down
Nestle does all that while also delivering compelling returns for its shareholders. It has long made a habit of increasing its dividend every year. Meanwhile, the share price has also grown six-fold over the past twenty years. That said, Nestle’s stock price has been flat since last summer, offering an opportunity to buy a quality company at a reasonable price in an otherwise frothy market.
Fair Trade Stocks: Xylem (XYL)
Source: IgorGolovniov / Shutterstock.com
MSCI ESG Rating: AAA
Xylem may not be a household name for most investors. However, it dominates its niche in water infrastructure. For things such as wastewater treatment, clean water delivery and industrial and agricultural water usage, Xylem makes the necessary products.
That in and of itself helps lead to a fairer and more equitable world. In particular, Xylem does business in more than 150 countries — that is to say, almost the entire planet. So Xylem is on the ground in many of the world’s most vulnerable locations, helping to finally make clean reliable water resources available. The company is an all-around good corporate citizen as well, thus securing a rare AAA ESG rating from MSCI.
Since Xylem was spun-off into an independent company in 2011, its shares have nearly quintupled. This once again shows that companies can do good and do good for shareholders at the same time.
On the date of publication, Ian Bezek held long positions in HRL, DEO and MKC stock.
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.
The post 7 Fair Trade Stocks to Buy If You Want to #BuildBackFairer 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.
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Each excels in ethical inventory sourcing, labor and environmental practices: McCormick (NYSE:MKC) Diageo (NYSE:DEO) Starbucks (NASDAQ:SBUX) Home Depot (NYSE:HD) Hormel Foods (NYSE:HRL) Nestle (OTCMKTS:NSRGY) Xylem (NYSE:XYL) Fair Trade Stocks: McCormick (MKC) MKC) spices lined up on a grocery store shelf." Diageo (DEO) Source: JL Images / Shutterstock MSCI ESG Rating: AAA That’s right, Diageo is one of the rare few companies with a perfect triple-AAA ESG rating. On the date of publication, Ian Bezek held long positions in HRL, DEO and MKC stock.
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Each excels in ethical inventory sourcing, labor and environmental practices: McCormick (NYSE:MKC) Diageo (NYSE:DEO) Starbucks (NASDAQ:SBUX) Home Depot (NYSE:HD) Hormel Foods (NYSE:HRL) Nestle (OTCMKTS:NSRGY) Xylem (NYSE:XYL) Fair Trade Stocks: McCormick (MKC) MKC) spices lined up on a grocery store shelf." Diageo (DEO) Source: JL Images / Shutterstock MSCI ESG Rating: AAA That’s right, Diageo is one of the rare few companies with a perfect triple-AAA ESG rating. On the date of publication, Ian Bezek held long positions in HRL, DEO and MKC stock.
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Each excels in ethical inventory sourcing, labor and environmental practices: McCormick (NYSE:MKC) Diageo (NYSE:DEO) Starbucks (NASDAQ:SBUX) Home Depot (NYSE:HD) Hormel Foods (NYSE:HRL) Nestle (OTCMKTS:NSRGY) Xylem (NYSE:XYL) Fair Trade Stocks: McCormick (MKC) MKC) spices lined up on a grocery store shelf." Diageo (DEO) Source: JL Images / Shutterstock MSCI ESG Rating: AAA That’s right, Diageo is one of the rare few companies with a perfect triple-AAA ESG rating. On the date of publication, Ian Bezek held long positions in HRL, DEO and MKC stock.
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Each excels in ethical inventory sourcing, labor and environmental practices: McCormick (NYSE:MKC) Diageo (NYSE:DEO) Starbucks (NASDAQ:SBUX) Home Depot (NYSE:HD) Hormel Foods (NYSE:HRL) Nestle (OTCMKTS:NSRGY) Xylem (NYSE:XYL) Fair Trade Stocks: McCormick (MKC) MKC) spices lined up on a grocery store shelf." Diageo (DEO) Source: JL Images / Shutterstock MSCI ESG Rating: AAA That’s right, Diageo is one of the rare few companies with a perfect triple-AAA ESG rating. On the date of publication, Ian Bezek held long positions in HRL, DEO and MKC stock.
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17bb8433-d1e2-4ac4-97e0-61d9f9687f75
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727670.0
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2021-04-22 00:00:00 UTC
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Anheuser-Busch InBev Stock Up 20%: Still A Good Bet?
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DEO
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https://www.nasdaq.com/articles/anheuser-busch-inbev-stock-up-20%3A-still-a-good-bet-2021-04-22
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nan
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nan
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Anheuser-Busch InBev stock (NYSE: BUD) saw an impressive rise of almost 21% in the last six months (126 trading days) and currently trades at $69. This rise was mainly due to expectations of higher volume in 2021 as the global lockdowns are gradually lifting, thus leading to easing of supply constraints. Demand for the company’s products mainly comes from restaurants, pubs, live events, etc. which have seen some reopening over the last few months. Though the recent spike in Covid cases is a concern, the successful vaccine rollout (which was not there during the first phase in 2020) has minimized the possibility of another strict global lockdown. The company’s revenues and earnings are expected to see significant improvement in the coming quarters. But will BUD’s stock continue its upward trajectory over the coming weeks, or is a correction in the stock more likely?
According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for BUD stock average close to 4% in the next three-month (63 trading days) period after experiencing a 21% rise over the previous six-month (126 trading days) period. Notably, though, the stock is likely to give returns in line with the S&P500 over the next three months.
But how would these numbers change if you are interested in holding BUD stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning to test BUD stock chances of a rise after a fall and vice versa. You can test the chance of recovery over different time intervals of a quarter, month, or even just one day!
MACHINE LEARNING ENGINE – try it yourself:
IF BUD stock moved by -5% over five trading days, THEN over the next 21 trading days, BUD stock moves an average of 2 percent, which implies a return which is similar to that of the S&P500.
More importantly, there is 58% probability of a positive return over the next 21 trading days and 52% probability of a positive excess return after a -5% change over five trading days.
Some Fun Scenarios, FAQs & Making Sense of BUD Stock Movements:
Question 1: Is the average return for Anheuser-Busch InBev NV stock higher after a drop?
Answer:
Consider two situations,
Case 1: Anheuser-Busch InBev NV stock drops by -5% or more in a week
Case 2: Anheuser-Busch InBev NV stock rises by 5% or more in a week
Is the average return for Anheuser-Busch InBev NV stock higher over the subsequent month after Case 1 or Case 2?
BUD stock fares better after Case 1, with an average return of 2% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 0% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how Anheuser-Busch InBev NV stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer:
If you buy and hold Anheuser-Busch InBev NV stock, the expectation is over time the near term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For BUD stock, the returns over the next N days after a -5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500:
Question 3: What about the average return after a rise if you wait for a while?
Answer:
The average return after a rise is generally lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks.
BUD’s returns over the next N days after a 5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500:
It’s pretty powerful to test the trend for yourself for Anheuser-Busch InBev NV stock by changing the inputs in the charts above.
While BUD stock may have moved a fair amount, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how the stock valuation for Coca-Cola vs Merck shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Though the recent spike in Covid cases is a concern, the successful vaccine rollout (which was not there during the first phase in 2020) has minimized the possibility of another strict global lockdown. Try the Trefis machine learning engine above to see for yourself how Anheuser-Busch InBev NV stock is likely to behave after any specific gain or loss over a period. Answer: If you buy and hold Anheuser-Busch InBev NV stock, the expectation is over time the near term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for BUD stock average close to 4% in the next three-month (63 trading days) period after experiencing a 21% rise over the previous six-month (126 trading days) period. Some Fun Scenarios, FAQs & Making Sense of BUD Stock Movements: Question 1: Is the average return for Anheuser-Busch InBev NV stock higher after a drop? Answer: Consider two situations, Case 1: Anheuser-Busch InBev NV stock drops by -5% or more in a week Case 2: Anheuser-Busch InBev NV stock rises by 5% or more in a week Is the average return for Anheuser-Busch InBev NV stock higher over the subsequent month after Case 1 or Case 2?
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for BUD stock average close to 4% in the next three-month (63 trading days) period after experiencing a 21% rise over the previous six-month (126 trading days) period. Answer: Consider two situations, Case 1: Anheuser-Busch InBev NV stock drops by -5% or more in a week Case 2: Anheuser-Busch InBev NV stock rises by 5% or more in a week Is the average return for Anheuser-Busch InBev NV stock higher over the subsequent month after Case 1 or Case 2? BUD stock fares better after Case 1, with an average return of 2% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 0% for Case 2.
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for BUD stock average close to 4% in the next three-month (63 trading days) period after experiencing a 21% rise over the previous six-month (126 trading days) period. Try the Trefis machine learning engine above to see for yourself how Anheuser-Busch InBev NV stock is likely to behave after any specific gain or loss over a period. BUD’s returns over the next N days after a 5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500: It’s pretty powerful to test the trend for yourself for Anheuser-Busch InBev NV stock by changing the inputs in the charts above.
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cc1010ca-5b35-49b3-b28c-8905fecea629
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727671.0
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2021-04-21 00:00:00 UTC
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Diageo Stock: A Good Pick For Long Term Investors
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DEO
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https://www.nasdaq.com/articles/diageo-stock%3A-a-good-pick-for-long-term-investors-2021-04-21
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nan
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nan
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Diageo stock (NYSE: DEO) has increased more than 30% in the last six months and 2% in the last one week. It now trades at $179 per share. The successful rollout of the vaccination program and stimulus measures set to be announced have led to expectations of faster economic recovery and rise in consumer spending. This will benefit a beverage giant like Diageo to improve its sales and margins. The reopening of restaurants and retail chains with lockdowns being lifted gradually, along with the company’s focus on premiumization is likely to provide a boost to its top and bottom line in the coming quarters. But will Diageo’s stock continue its upward trajectory over the coming weeks, or is a correction in the stock more likely? According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock remain negligible in the next one-month (21 trading days) period after experiencing a 2% rise over the previous week (five trading days) period. What also comes out of the analysis is that patient investors will benefit, as the stock provides healthy double-digit returns to ones who wait it out for a year.
But how would these numbers change if you are interested in holding DEO stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning to test DEO stock chances of a rise after a fall and vice versa. You can test the chance of recovery over different time intervals of a quarter, month, or even just one day!
MACHINE LEARNING ENGINE – try it yourself:
IF DEO stock moved by -5% over five trading days, THEN over the next 21 trading days, DEO stock moves an average of 3 percent, which implies a return which is 0.7% more than that of the S&P500.
More importantly, there is 74% probability of a positive return over the next 21 trading days and 54% probability of a positive excess return after a -5% change over five trading days.
Some Fun Scenarios, FAQs & Making Sense of DEO Stock Movements:
Question 1: Is the average return for Diageo stock higher after a drop?
Answer:
Consider two situations,
Case 1: Diageo stock drops by -5% or more in a week
Case 2: Diageo stock rises by 5% or more in a week
Is the average return for Diageo stock higher over the subsequent month after Case 1 or Case 2?
DEO stock fares better after Case 1, with an average return of 3.1% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1.6% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how Diageo stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer:
If you buy and hold Diageo stock, the expectation is over time the near term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis’ machine learning engine’s calculations, patience absolutely pays for most stocks!
For DEO stock, the returns over the next N days after a -5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500:
Question 3: What about the average return after a rise if you wait for a while?
Answer:
The average return after a rise is generally lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks.
DEO’s returns over the next N days after a 5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500:
It’s pretty powerful to test the trend for yourself for Diageo stock by changing the inputs in the charts above.
E-commerce is eating into retail sales, but this might be an investment opportunity. See our theme on E-commerce Stocks for a diverse list of companies that stand to benefit from the big shift.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Diageo stock (NYSE: DEO) has increased more than 30% in the last six months and 2% in the last one week. According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock remain negligible in the next one-month (21 trading days) period after experiencing a 2% rise over the previous week (five trading days) period. But how would these numbers change if you are interested in holding DEO stock for a shorter or a longer time period?
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock remain negligible in the next one-month (21 trading days) period after experiencing a 2% rise over the previous week (five trading days) period. You can test the answer and many other combinations on the Trefis Machine Learning to test DEO stock chances of a rise after a fall and vice versa. Some Fun Scenarios, FAQs & Making Sense of DEO Stock Movements: Question 1: Is the average return for Diageo stock higher after a drop?
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock remain negligible in the next one-month (21 trading days) period after experiencing a 2% rise over the previous week (five trading days) period. DEO stock fares better after Case 1, with an average return of 3.1% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1.6% for Case 2. Diageo stock (NYSE: DEO) has increased more than 30% in the last six months and 2% in the last one week.
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for DEO stock remain negligible in the next one-month (21 trading days) period after experiencing a 2% rise over the previous week (five trading days) period. MACHINE LEARNING ENGINE – try it yourself: IF DEO stock moved by -5% over five trading days, THEN over the next 21 trading days, DEO stock moves an average of 3 percent, which implies a return which is 0.7% more than that of the S&P500. For DEO stock, the returns over the next N days after a -5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500: Question 3: What about the average return after a rise if you wait for a while?
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18b34417-10df-43b1-887c-17e8a8860d13
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727672.0
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2021-03-30 00:00:00 UTC
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7 Sin Stocks With Tempting Dividends
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DEO
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https://www.nasdaq.com/articles/7-sin-stocks-with-tempting-dividends-2021-03-30
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Impact investing is a big trend right now. Investors want to both make money and make a difference in the world. That’s a noble attitude. However, the ethical lines can be complicated, and there are many disagreements over which businesses actually increase social good or not. Regardless, as investors flock to “good” companies, it creates opportunity at the other end of the spectrum: the sin stocks.
As Economics 101 dictates, when demand for something drops, you have to lower the price to find equilibrium. With investors wanting to do good, the stock prices of more sinful stocks have declined. Be it tobacco, alcohol or defense industries, for example, there are bargains throughout the vice stocks.
Not all sin stocks are inherently good investments. Sometimes a company can be both morally questionable and financially irresponsible as well. However, in general, a lot of vice industries have generated stock market-crushing returns. Tobacco companies, for example, were the single best performing U.S. stock sector between the 1930s and 2015. Coming in second were the beer, wine and liquor stocks.
8 Small-Cap Stocks With Plenty of Cred
With all that in mind, here are seven sin stocks paying generous dividends to put on your watchlist today:
Altria (NYSE:MO)
British American Tobacco (NYSE:BTI)
Innovative Industrial Properties (NYSE:IIPR)
Diageo (NYSE:DEO)
Corby Spirit and Wine (OTCMKTS:CBYDF)
Lockheed Martin (NYSE:LMT)
General Dynamics (NYSE:GD)
Sin Stocks: Altria (MO)
MO) logo" width="300" height="169">
Source: Kristi Blokhin / Shutterstock.com
Dividend Yield: 6.58%
Altria has enjoyed a stealth comeback over the past year. This time last year, MO stock was on the ropes. The company had infamously overpaid for its investment stake in vaping leader Juul. Vaping has run into regulatory problems, and Altria suffered a huge write-down on that investment. On top of that, investors worried that the novel coronavirus might cause a decline in smoking, particularly among vulnerable populations.
Fast forward, however, and the tide is turning. MO stock has jumped 27% in recent weeks and hit new 52-week highs. The old problems are still there, to an extent. It’s unclear what the future looks like for Juul, or how Altria will evolve as traditional cigarette sales continue to decline. Altria has made investments in other fields, such as cannabis, but none of those are looking like home runs just yet.
However, last year, MO stock was trading at 8x earnings and paying a 9% dividend yield. Pretty incredible for a blue-chip stock like this one with such consistent cash flows. Even after the recent rally, Altria is still going for just an 11x price-to-earnings (P/E) ratio (and earnings are growing) while paying a 6.58% dividend yield.
While Altria isn’t quite as cheap as it was, the stock still represents a fine income investment at this price.
British American Tobacco (BTI)
BTI) logo on a building" width="300" height="169">
Source: DutchMen / Shutterstock.com
Dividend Yield: 7.54%
Altria is hardly the only cheap tobacco stock out there. British American Tobacco is another fine choice at today’s prices.
Due to a combination of mergers and smart management choices, British American Tobacco has actually grown its business strongly in recent years, despite the drop in overall smoking rates worldwide. Yet, BTI stock is trading as if it’s potentially going out of business soon.
The company is expected to earn $4.50 per share in earnings this year, which would put the stock at less than 9x earnings. And then, in 2022, analysts see earnings jumping another 5%, putting the P/E closer to 8x. This is crazy pricing for a business that is flat, let alone growing slightly.
Yes, there are clear risks here. Overall, cigarette usage continues to decline internationally. And politicians can always hit the industry with more regulations and taxes. That said, the tobacco industry has endured a whirlwind of lawsuits, taxes and negative public relations campaigns over the past 25 years, and yet it still lives on.
8 Hot Stocks to Buy for Your Well-Diversified Portfolio
BTI stock has less growth prospects than most of the stocks on this list. However, with a 7.54% dividend yield and a 9x P/E ratio, the stock is priced for success regardless.
Innovative Industrial Properties (IIPR)
Source: Jetacom Autofocus / Shutterstock.com
Dividend Yield: 3.03%
I recently gave a full-length review of leading cannabis real estate investment trust (REIT) Innovative Industrial Properties. The quick summary is that the company is taking advantage of a clever gap in the cannabis market.
Because marijuana remains illegal federally, banks don’t want to risk lending to cannabis growers. So Innovative has stepped in. It buys land and greenhouses and then rents them out to marijuana companies at high prices. This effectively provides funding to marijuana growers (since the cultivators don’t have to put up the capital for greenhouses themselves) while avoiding any direct legal concerns.
IIPR stock has grown like a weed since its initial public offering (IPO). Shares are up more than 820%. And Innovative has offered a quickly increasing dividend as well. IIPR stock’s 3.03% dividend yield is solid on its own. It gets much better once you realize how fast it’s growing. The firm has raised its dividend more than once a year, as its cash flows have grown quickly. Over the past year, the dividend payout is up more than 30%.
The one main risk here is marijuana legalization on a federal level. If and when that happens, IIPR’s profit margins would likely slump. That’s because cannabis growers could get loans from banks directly instead of needing third-party financing arrangements. However, it appears that legalization isn’t in the cards just yet, and so IIPR stock could have many more good days ahead of it.
Diageo (DEO)
Source: JL Images / Shutterstock
Dividend Yield: 2.25%
Diageo is the worldwide leader in the production and sale of alcoholic spirits and liquors. It is most known for Scottish whiskey, though it also has big brands in vodka, tequila and other spirits. Outside of hard liquor, Diageo is also the owner of Guinness beer.
DEO stock initially slumped during the pandemic. Investors feared that the closure of restaurants and bars would hurt the company’s bottom line. And that affected results to an extent to be sure. However, it was more than compensated for by increased beverage sales at liquor stores and other such outlets. In the U.S., for example, liquor sales surged 8% in 2020 — that was the biggest jump in decades.
Going forward, earnings results may be mixed. Bar and restaurant sales will come back online, however consumption at home is likely to decline. Regardless, alcohol stocks have once again proven themselves to be resilient in the face of economic uncertainty.
7 Risky Stocks Ready to Roll on Reopening
Diageo, in particular, is compelling for dividend investors. While the starting yield admittedly isn’t the highest, Diageo has increased its dividend every year since the company’s official formation in 1997.
Corby Spirit & Wine (CBYDF)
Source: 8th.creator/Shutterstock.com
Dividend Yield: 4.76%
If you want a lot more yield out of the alcoholic beverages sector, look to the north. In Canada, you’ll find Corby Spirit & Wine. It produces and distributes hard liquors such as Wiser’s Whiskey and Lamb’s Rum. These may not be big names in most countries, but they have a stable, strong position in the Canadian market.
Corby has shown little growth in recent years, making it less attractive on that front than, say, Diageo. However, Corby trades at a compelling 16x earnings and pays out a large chunk of that with its dividend. You get the regular dividend yield, which is already compelling. On top of that, the company pays occasional special dividends as well. As Corby is focused on lower-cost spirits, it’s also quite immune to changes in economic conditions.
This isn’t one of the more exciting sin stocks out there, but with a nearly 5% dividend yield, it doesn’t need to be. Finally, it should be noted that while the American CBYDF stock listing is somewhat illiquid, shares are easy to trade on the Toronto stock exchange under the company’s “CSW-A” ticker.
Lockheed Martin (LMT)
Source: Ken Wolter / Shutterstock.com
Dividend Yield: 2.79%
To round out the list, we have two defense stocks. You can quibble over whether these are sin stocks in particular or not. Defense companies don’t harm an individual in the same way that excessive alcohol or drug use might. However, defense companies are certainly shunned by many on a societal level. Numerous environmental, social and governance (ESG) funds exclude defense firms from their portfolios because of this angle. As such, I’d argue they count as sin stocks.
Leading the pack, we have Lockheed Martin. The firm is known for its combat planes, such as the F-35. The company has multi-decade contracts for these aircraft, offering consistent long-term revenue as far as the eye can see.
On top of that, there’s an increasingly interesting space element to the story. Lockheed Martin is a leader in building satellites, and it’s now branching into more technologies that should help power humanity’s effort to explore the solar system and potentially colonize other planets in the future. Cathie Wood of Ark Investments has bought into LMT stock for the Ark Autonomous Technology and Robots ETF (BATS:ARKQ). Additionally, Ark’s new Ark Space Exploration ETF (NYSE:ARKX) includes LMT stock as well.
7 Value Stocks Everyone Is Ignoring
In any case, Lockheed Martin sits in a nice position. It’s cheap — selling for around 15x earnings — and pays a strong dividend. And at the same time, it offers exciting growth prospects that you don’t often see in this sort of blue-chip name. If you want income with an exciting technology angle as well, LMT stock fits the bill.
General Dynamics (GD)
Source: Casimiro PT / Shutterstock.com
Dividend Yield: 2.4%
General Dynamics is another blue-chip aerospace and defense company. Unlike Lockheed, it takes more to the seas than the skies; General Dynamics is most known for its submarines and other naval vessels. It also has a wide variety of other defense businesses, such as in munitions and tanks.
Like other defense companies, GD stock sold off hard over the past year. This was due to worries about the incoming administration under President Joe Biden, along with some pandemic issues. Social distancing requirements in particular complicated manufacturing efforts for the company.
However, the company is back on the upswing. It has near-record backlog, indicating that it has plenty of contractual work ahead of it. GD stock is going for just 16x earnings now. And analysts see it growing earnings per share (EPS) at 10% per year over the next two years, moving the P/E ratio to an even more favorable level.
Finally, the company is a Dividend Aristocrat, as it has hiked its dividend for 26 consecutive years. With that sort of history, a solid 2.4% starting yield and rapidly increasing earnings, there’s a lot to like about General Dynamics going forward.
On the date of publication, Ian Bezek held a long position in MO, DEO, LMT and GD stock.
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.
The post 7 Sin Stocks With Tempting Dividends 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.
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8 Small-Cap Stocks With Plenty of Cred With all that in mind, here are seven sin stocks paying generous dividends to put on your watchlist today: Altria (NYSE:MO) British American Tobacco (NYSE:BTI) Innovative Industrial Properties (NYSE:IIPR) Diageo (NYSE:DEO) Corby Spirit and Wine (OTCMKTS:CBYDF) Lockheed Martin (NYSE:LMT) General Dynamics (NYSE:GD) Sin Stocks: Altria (MO) MO) logo" width="300" height="169"> Source: Kristi Blokhin / Shutterstock.com Dividend Yield: 6.58% Altria has enjoyed a stealth comeback over the past year. Diageo (DEO) Source: JL Images / Shutterstock Dividend Yield: 2.25% Diageo is the worldwide leader in the production and sale of alcoholic spirits and liquors. DEO stock initially slumped during the pandemic.
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8 Small-Cap Stocks With Plenty of Cred With all that in mind, here are seven sin stocks paying generous dividends to put on your watchlist today: Altria (NYSE:MO) British American Tobacco (NYSE:BTI) Innovative Industrial Properties (NYSE:IIPR) Diageo (NYSE:DEO) Corby Spirit and Wine (OTCMKTS:CBYDF) Lockheed Martin (NYSE:LMT) General Dynamics (NYSE:GD) Sin Stocks: Altria (MO) MO) logo" width="300" height="169"> Source: Kristi Blokhin / Shutterstock.com Dividend Yield: 6.58% Altria has enjoyed a stealth comeback over the past year. Diageo (DEO) Source: JL Images / Shutterstock Dividend Yield: 2.25% Diageo is the worldwide leader in the production and sale of alcoholic spirits and liquors. DEO stock initially slumped during the pandemic.
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8 Small-Cap Stocks With Plenty of Cred With all that in mind, here are seven sin stocks paying generous dividends to put on your watchlist today: Altria (NYSE:MO) British American Tobacco (NYSE:BTI) Innovative Industrial Properties (NYSE:IIPR) Diageo (NYSE:DEO) Corby Spirit and Wine (OTCMKTS:CBYDF) Lockheed Martin (NYSE:LMT) General Dynamics (NYSE:GD) Sin Stocks: Altria (MO) MO) logo" width="300" height="169"> Source: Kristi Blokhin / Shutterstock.com Dividend Yield: 6.58% Altria has enjoyed a stealth comeback over the past year. Diageo (DEO) Source: JL Images / Shutterstock Dividend Yield: 2.25% Diageo is the worldwide leader in the production and sale of alcoholic spirits and liquors. DEO stock initially slumped during the pandemic.
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8 Small-Cap Stocks With Plenty of Cred With all that in mind, here are seven sin stocks paying generous dividends to put on your watchlist today: Altria (NYSE:MO) British American Tobacco (NYSE:BTI) Innovative Industrial Properties (NYSE:IIPR) Diageo (NYSE:DEO) Corby Spirit and Wine (OTCMKTS:CBYDF) Lockheed Martin (NYSE:LMT) General Dynamics (NYSE:GD) Sin Stocks: Altria (MO) MO) logo" width="300" height="169"> Source: Kristi Blokhin / Shutterstock.com Dividend Yield: 6.58% Altria has enjoyed a stealth comeback over the past year. Diageo (DEO) Source: JL Images / Shutterstock Dividend Yield: 2.25% Diageo is the worldwide leader in the production and sale of alcoholic spirits and liquors. DEO stock initially slumped during the pandemic.
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727673.0
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2021-03-16 00:00:00 UTC
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7 Alcohol Stocks To Buy for St. Patrick’s Day
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DEO
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https://www.nasdaq.com/articles/7-alcohol-stocks-to-buy-for-st.-patricks-day-2021-03-16
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With St. Patrick’s Day just around the corner, we wanted to take a look at some of the world’s celebrated alcohol stocks. While not for everybody, it’s hard to ignore the demand that these companies experience year in and year out.
The novel coronavirus sent a severe disruption throughout the world. It completely altered the way billions of people lived their lives. It completely shifted our norms and changed the way we dine, entertain and enjoy time with friends.
For beer, wine and spirits companies, it altered business too.
With all sorts of events being cancelled, bars and restaurants closing and lockdowns in place, social gatherings were put on hold. While consumers were flocking to grocery stores to load up on their favorite drinks, the commercial end of these businesses were suffering. It was a supply chain nightmare.
7 Triple-A-Rated Stocks to Buy Now
Some made it out better than others. Here are seven alcohol stocks that are worth taking a look at:
Diageo (NYSE:DEO)
Pernod Ricard (OTCMKTS:PDRDY)
Constellation Brands (NYSE:STZ)
Anheuser-Busch (NYSE:BUD)
Brown-Forman (NYSE:BF.A, NYSE:BF.B)
LVMH Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY)
Boston Beer Company (NYSE:SAM)
Alcohol Stocks: Diageo (DEO)
Source: JL Images / Shutterstock
We have to start this list with Diageo. Since it’s one of the largest alcohol companies in the world, it simply can’t be ignored. More than that though, Diageo owns Guinness and Smithwick’s — two very Irish beer companies.
Around St. Patrick’s Day, it’s hard to ignore brands like this.
For Diageo though, it goes beyond a few brews. The company’s portfolio spans from beer to spirits and includes brands like Johnnie Walker, Crown Royal, Smirnoff, Ketel One, Captain Morgan, Baileys, Tanqueray and more.
That’s a heavy-hitter lineup and offers something for everyone. It hits the high end and the low end of the liquor store, and has enough diversity to attract any kind of drinker.
Diageo’s products can be found in more than 180 countries, while the stock hovers near a 52-week high and sports a market capitalization of almost $100 billion.
Obviously, Covid-19 has disrupted the company’s business. But, the company is looking to get back on track this year and accelerate into 2022, as vaccines make trips to bars and restaurants more feasible.
Pernod Ricard (PDRDY)
PDRDY) grouped on a bar cart." width="300" height="169">
Source: Grzegorz Czapski / Shutterstock.com
A lot of investors may not be as familiar with Pernod Ricard, but like Diageo, the company sports an impressive portfolio.
Specifically relating to St. Patrick’s Day, the company owns the Jameson brand. It acquired the brand in 1988 when it purchased Irish Distillers.
However, its brands don’t start and end with Jameson. The French conglomerate also owns brands like Absolut Vodka, Chivas Regal, Glenlivet and Beefeater. It also owns several wine labels, as well as JP Wiser’s, Seagram’s and Kahlua, among others.
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While Pernod Ricard may not be one of the first alcohol stocks that comes to investors’ minds, it doesn’t mean it should be ignored.
Constellation Brands (STZ)
Source: ShinoStock / Shutterstock.com
Constellation Brands also has a wide array of offerings in its portfolio.
The company is surely best known for its Corona and Modelo brands. However, its beer offerings also include Pacifico and the company’s new Corona Seltzer drink.
Constellation Brands also offers wine products, such as Kim Crawford, The Velvet Devil, Cooper & Thief and Robert Mondavi, among others. Lastly on the alcohol front, there’s High West Distillery, Belle Meade, Svedka and Casa Noble.
Uniquely though, Constellation Brands is not limited to alcohol. The company has acquired a sizable stake in Canopy Growth (NYSE:CGC). Specifically, that stake sits at 38.6%.
As cannabis continues to gain traction on a state-by-state basis, there’s hope that it will also gain traction at the federal level. While not all cannabis companies will be successful, Canopy is considered a leader in the space, and with Constellation owning such a large stake, it has a big long-term opportunity if the trajectory in cannabis plays out.
Anheuser-Busch (BUD)
BUD) logo on it" width="300" height="169">
Source: legacy1995 / Shutterstock.com
Anheuser-Busch is certainly one of the alcohol stocks investors are familiar with. With brands like Budweiser and all of its offshoots, it’s a staple in American beer.
It also includes well-known brands like Michelob, Rolling Rock, Busch and Shock Top. Further, the company had a 31.2% stake in Craft Brew Alliance. However, in September 2020, the company closed on its acquisition for the rest of the company. By doing so, it added brands like Kona, Widmer, Redhook, Cisco brands and more.
Anheuser-Busch isn’t perfect, of course. The company took a big hit in 2020 due to Covid-19.
While grocery sales of alcohol saw a nice bump, commercial sales were decimated. Think about it. Concerts, sports games, events, restaurants and bars all took a huge hit. Many still aren’t back up and running yet. That crushed the beer industry.
7 OTC Stocks That Could Still Run with the Big Boys
Not only did revenue take a haircut, but it completely disrupted the companies’ operations and logistics. Anheuser-Busch took it hard. On the plus side, the rebound in the coming years should be a nice boost to the top and bottom line.
Brown-Forman (BF.A, BF.B)
Source: Shutterstock
Brown-Forman is probably best known for its flagship Jack Daniels brand. That alone commands this stock some clout. The company isn’t the biggest fish in the pond, but it’s not one to ignore either.
The company also has other well-known brands too, including Woodford Reserve and Old Forester. It also has tequila brands like Herradura and El Jimador, among a few other spirits.
Like Anheuser and others, Brown-Forman has been impacted by Covid-19, but to a differing degree. The company is almost done with its fiscal 2021 year, with just one quarter left to go. Consensus expectations call for 1.6% revenue growth.
While commercial sales have taken a hit, the consumer side of the business has done quite well. While commercial sales have taken a hit, the consumer side of the business has done quite well.
Looking ahead, analysts expect to see 7.4% sales growth and 10.6% earnings growth. Not bad, particularly for a stock that’s been trading sideways and is down 9.5% over the past six months.
LVMH Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY)
Source: 8th.creator/Shutterstock.com
For the investors who want to pop a nice bottle of bubbly, they shouldn’t forget about LVMH. Known for its high-end portfolio of various brands, the company is no stranger to alcohol.
How about these heavy hitters: Dom Perignon, Moet & Chandon, Hennessy and Veuve Clicquot.
Of course, there are other well-known brands in the lineup too. Ardbeg and Glenmorangie produce great whiskies, while LVMH has a handful of vineyards and wineries producing high-quality bottles.
The company is the epitome of luxury, with its other brands including Louis Vuitton, Fendi, Dior, Bvlgari, Tag Heuer, and after its latest acquisition, Tiffany & Co.
7 Stocks to Buy That Are Cheering for March Madness
LVMH has its hands in fashion, perfumes and alcohol, among other businesses. It’s a true conglomerate that continues to grow and hold its value. As the global economy looks to recovery, I expect this company will do very well. With its stock at all-time highs, the market must think so too. Plus, the wealthy didn’t suffer the pinch that many others did during Covid-19, so business did just fine.
Boston Beer Company (SAM)
Source: LunaseeStudios / Shutterstock.com
By far one of the hottest alcohol stocks has been Boston Beer Company. With its $13.57 billion market cap, it’s not that big compared to the conglomerates. However, the stock’s performance speaks for itself.
Up 27% in the past six months is pretty good, but it pales in comparison to the stock’s one-year return of 261%.
Helping guide the stock higher is Boston Beer’s strong growth. Analysts expect 40.6% revenue growth in 2021, followed by 24.1% growth in 2022. On the earnings front, those growth estimates swell to 49.7% and 26.5%, respectively.
I wouldn’t say Boston Beer stock is necessarily cheap. However, it’s the one with robust momentum at the moment, and it’s got solid growth to boot. Perhaps its lower market cap and strong growth will make it an M&A target for some of the larger conglomerates struggling with growth.
Either way, Boston Beer is one to know.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 7 Alcohol Stocks To Buy for St. Patrick’s Day 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.
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Here are seven alcohol stocks that are worth taking a look at: Diageo (NYSE:DEO) Pernod Ricard (OTCMKTS:PDRDY) Constellation Brands (NYSE:STZ) Anheuser-Busch (NYSE:BUD) Brown-Forman (NYSE:BF.A, NYSE:BF.B) LVMH Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY) Boston Beer Company (NYSE:SAM) Alcohol Stocks: Diageo (DEO) Source: JL Images / Shutterstock We have to start this list with Diageo. The company’s portfolio spans from beer to spirits and includes brands like Johnnie Walker, Crown Royal, Smirnoff, Ketel One, Captain Morgan, Baileys, Tanqueray and more. 7 OTC Stocks That Could Still Run with the Big Boys Not only did revenue take a haircut, but it completely disrupted the companies’ operations and logistics.
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Here are seven alcohol stocks that are worth taking a look at: Diageo (NYSE:DEO) Pernod Ricard (OTCMKTS:PDRDY) Constellation Brands (NYSE:STZ) Anheuser-Busch (NYSE:BUD) Brown-Forman (NYSE:BF.A, NYSE:BF.B) LVMH Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY) Boston Beer Company (NYSE:SAM) Alcohol Stocks: Diageo (DEO) Source: JL Images / Shutterstock We have to start this list with Diageo. Constellation Brands (STZ) Source: ShinoStock / Shutterstock.com Constellation Brands also has a wide array of offerings in its portfolio. LVMH Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY) Source: 8th.creator/Shutterstock.com For the investors who want to pop a nice bottle of bubbly, they shouldn’t forget about LVMH.
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Here are seven alcohol stocks that are worth taking a look at: Diageo (NYSE:DEO) Pernod Ricard (OTCMKTS:PDRDY) Constellation Brands (NYSE:STZ) Anheuser-Busch (NYSE:BUD) Brown-Forman (NYSE:BF.A, NYSE:BF.B) LVMH Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY) Boston Beer Company (NYSE:SAM) Alcohol Stocks: Diageo (DEO) Source: JL Images / Shutterstock We have to start this list with Diageo. The company is the epitome of luxury, with its other brands including Louis Vuitton, Fendi, Dior, Bvlgari, Tag Heuer, and after its latest acquisition, Tiffany & Co. 7 Stocks to Buy That Are Cheering for March Madness LVMH has its hands in fashion, perfumes and alcohol, among other businesses. Boston Beer Company (SAM) Source: LunaseeStudios / Shutterstock.com By far one of the hottest alcohol stocks has been Boston Beer Company.
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Here are seven alcohol stocks that are worth taking a look at: Diageo (NYSE:DEO) Pernod Ricard (OTCMKTS:PDRDY) Constellation Brands (NYSE:STZ) Anheuser-Busch (NYSE:BUD) Brown-Forman (NYSE:BF.A, NYSE:BF.B) LVMH Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY) Boston Beer Company (NYSE:SAM) Alcohol Stocks: Diageo (DEO) Source: JL Images / Shutterstock We have to start this list with Diageo. InvestorPlace - Stock Market News, Stock Advice & Trading Tips With St. Patrick’s Day just around the corner, we wanted to take a look at some of the world’s celebrated alcohol stocks. For beer, wine and spirits companies, it altered business too.
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a565b3d4-afec-4d9b-8eb2-c73637764bef
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727674.0
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2021-03-03 00:00:00 UTC
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Is Brown-Forman Stock a Buy?
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DEO
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https://www.nasdaq.com/articles/is-brown-forman-stock-a-buy-2021-03-03
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nan
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nan
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Brown-Forman (NYSE: BF.A)(NYSE: BF.B) managed to eke out a meager gain against the S&P 500 last year, even though out-of-home drinking opportunities were limited to non-existent. But over the first two months of 2021, the distiller trails well behind the market index despite an economy that's reopening.
Although alcohol stocks are supposed to be recession-resistant, Brown-Forman stock is down 10% so far this year. Let's take a closer look at whether that makes the maker of Jack Daniel's Tennessee Whiskey a buy.
Image source: Brown-Forman.
A world of trouble
Brown-Forman has been around for 150 years, which means it's been through more than a few global calamities in its time. It noted its 50th anniversary came about just as Prohibition began and its 75th started around the same time as World War II. Now, another 75 years later, it's dealing with the ravages of a worldwide pandemic.
The COVID-19 outbreak upended the liquor business. Restaurants, bars, cafes, and other venues where people traditionally gathered and drank alcohol were suddenly shuttered. In fact, while many establishments have been allowed to reopen (albeit with limited capacity), California remains the one state in the country that still does not have indoor dining.
While such places only account for about 20% of Brown-Forman's business, with travel and tourism still decimated, the actual impact is much higher. Business travel is depressed, down about 70% from what it was prior to the pandemic, global air travel remains off by about 60%, and cruise lines are virtually non-operational.
Fortunately, Brown-Forman's business was bolstered by the off-premise trade, with packaged goods stores flourishing. Spirits consumption is actually up despite bar and restaurant closures, and underlying net sales of the distiller's premium brand portfolio grew at double-digit rates helping to push year-to-date operating income 11% higher on an underlying basis.
With its earnings expected this week, we'll get to see how its business held up over the holidays, but there should be few headwinds to drain its progress.
Over a (whiskey) barrel
Having transitioned to focusing on premium, super-premium, and ultra-premium spirits, Brown-Forman remains highly profitable with increasing margins. It also has a broad-based geographically diverse footprint, which helps deliver solid operating cash flows.
However, it is highly dependent upon whiskey, especially the Jack Daniel's brand. The original No. 7 line is the company's flagship and last quarter's depletions, or sales to retailers and distributors -- an industry proxy for consumer demand -- fell 3%. While newer iterations such as Tennessee Apple and Tennessee Honey surged 143% and 10%, respectively, they're starting from a much smaller base. Other brand extensions, like Tennessee Honey, fell 1%.
Consumer tastes are always changing and certain trends come in and fall out of favor. Brown-Forman noted that on its 100th anniversary in 1970, bourbon began a period of decline, which caused the distiller to reinvent itself as a consumer products company that expanded beyond spirits.
But spirits are still its bread and butter, and the so-called "browns" of the spirit world -- whiskey and bourbon, as well as variations such as scotch, rye, Canadian whisky, and Irish whiskey (yes, they're spelled differently) -- are in the midst of a boom.
Who knows when or if it will change once again, but the advent of craft distillers driving innovation could have the industry in a secular growth period not unlike that which occurred with craft beer.
Worth the premium?
Competition is intense, not only from rival distillers like Beam Suntory, Constellation Brands (NYSE: STZ), Diageo (NYSE: DEO), Pernod Ricard, and Sazerac, but from other alcoholic beverage makers, including brewers switching to hard seltzer to draw in more drinkers.
But Brown-Forman recognized the premiumization trend (consumers' willingness to pay up for a particular beverage category) early on and it has been transitioning its portfolio to focus on that segment. That's allowed it to grow profits even if depletions falter at times.
Still, the market is asking you to pay a premium for Brown-Forman stock. It trades at 38 times next year's earnings estimates and 88 times the free cash flow it produces. Constellation Brands goes for 20 times estimates and 26 times free cash flow, while Diageo is valued at 22 times estimates and 88 times free cash flow.
That makes the distiller a solid business with a wonky valuation, suggesting investors should wait for Brown-Forman stock to offer a better deal before jumping in.
10 stocks we like better than Brown-Forman (B Shares)
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Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends 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.
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Competition is intense, not only from rival distillers like Beam Suntory, Constellation Brands (NYSE: STZ), Diageo (NYSE: DEO), Pernod Ricard, and Sazerac, but from other alcoholic beverage makers, including brewers switching to hard seltzer to draw in more drinkers. Over a (whiskey) barrel Having transitioned to focusing on premium, super-premium, and ultra-premium spirits, Brown-Forman remains highly profitable with increasing margins. Brown-Forman noted that on its 100th anniversary in 1970, bourbon began a period of decline, which caused the distiller to reinvent itself as a consumer products company that expanded beyond spirits.
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Competition is intense, not only from rival distillers like Beam Suntory, Constellation Brands (NYSE: STZ), Diageo (NYSE: DEO), Pernod Ricard, and Sazerac, but from other alcoholic beverage makers, including brewers switching to hard seltzer to draw in more drinkers. Over a (whiskey) barrel Having transitioned to focusing on premium, super-premium, and ultra-premium spirits, Brown-Forman remains highly profitable with increasing margins. It trades at 38 times next year's earnings estimates and 88 times the free cash flow it produces.
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Competition is intense, not only from rival distillers like Beam Suntory, Constellation Brands (NYSE: STZ), Diageo (NYSE: DEO), Pernod Ricard, and Sazerac, but from other alcoholic beverage makers, including brewers switching to hard seltzer to draw in more drinkers. Although alcohol stocks are supposed to be recession-resistant, Brown-Forman stock is down 10% so far this year. Constellation Brands goes for 20 times estimates and 26 times free cash flow, while Diageo is valued at 22 times estimates and 88 times free cash flow.
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Competition is intense, not only from rival distillers like Beam Suntory, Constellation Brands (NYSE: STZ), Diageo (NYSE: DEO), Pernod Ricard, and Sazerac, but from other alcoholic beverage makers, including brewers switching to hard seltzer to draw in more drinkers. Although alcohol stocks are supposed to be recession-resistant, Brown-Forman stock is down 10% so far this year. That's allowed it to grow profits even if depletions falter at times.
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0d06b25a-16db-4c21-8236-ae1a3ee8843e
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727675.0
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2021-02-24 00:00:00 UTC
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Up 60%, Diageo Stock Still Has Potential To Rise
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DEO
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https://www.nasdaq.com/articles/up-60-diageo-stock-still-has-potential-to-rise-2021-02-24
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nan
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nan
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Diageo stock (NYSE: DEO) has registered a formidable recovery of more than 60% from its March 2020 low. At the current price of $167, DEO stock still looks undervalued and is a decent bet for investors. DEO stock has rallied 62% from $103 (on 23rd March 2020) to $167 off its recent bottom, compared to the S&P 500 which has increased 75% from its recent lows. The recent rally was driven by the US government’s announcement of a string of measures to keep businesses afloat and expectations of a rise in consumer demand and reduction in supply bottlenecks as the global lockdowns are gradually lifted. Despite a healthy rise, the stock is still slightly below its June-2019 level. The recent spike in Covid-positive cases in Europe and some other economies has limited the stock rise over the last three months. However, now with the lockdowns being lifted and vaccine rollout leading to expectations of faster economic recovery, volume sold is expected to rise. Also, the reopening of restaurants and retail chains is likely to boost revenue and margins in FY 2021 and FY 2022. This provides a further modest growth potential of close to 10% for DEO’s stock. Our dashboard What Factors Drove 16% Change In Diageo Stock Between 2018 And Now? provides the key numbers behind our thinking.
Some of the stock price decline between June 2018 and June 2020 was justified by the 12.4% decrease in Diageo revenues from $16.9 billion in FY’18 to $14.8 billion in FY’20. This effect was further amplified by a sharp deterioration in profitability as net income margin halved from 25.8% in FY’18 to 12.4% in FY’20. On a per share basis, earnings declined 55% from $6.76 to $3.03 during this period. Lower revenue and margins were driven by the impact of the pandemic in the second half of FY2020, as the shutdown of pubs and restaurants took a toll on volume sold, while cost per unit increased, thus affecting margins.
Though EPS declined sharply, the fall in the stock price was not as severe, thus leading to a rise in the P/E multiple from 21x in 2018 to 44x in 2020. The stock price, in fact, recovered quickly after March 2020, leading to a faster rise in the P/E multiple by June 2020. As lockdowns continued to be lifted gradually, the multiple increased further post FY2020 and currently stands at 55x. We believe the multiple will drop to more realistic levels of close to 25x in the near term as the EPS recovers sharply with the stock price remaining elevated, as the market has accounted for a large part of the sharp recovery in top and bottom line expected in 2021 and 2022.
Outlook
The global spread of coronavirus led to lockdown in various cities across the globe, which affected industrial and economic activity. This took a toll on consumption and consumer spending, which was reflected in DEO’s H2 2020 results where its revenue declined by 25% y-o-y. The widespread closing of restaurants and bars, plus the cancellation of sporting events, concerts, and nearly every other form of public entertainment across key markets, led to a plunge in alcohol sales, thus affecting the stock price adversely.
However, there have been signs of lifting of the global lockdowns over recent months. As the global economy opens up and lockdowns are lifted in phases, consumer demand is slowly picking up. Any further recovery and its timing hinge on the broader containment of the coronavirus spread. Our dashboard Trends In U.S. Covid-19 Cases provides an overview of how the pandemic has been spreading in the U.S. and contrasts with trends in Brazil and Russia. With the lifting of lockdowns, reduction of supply bottlenecks is expected to help a company like Diageo, which has a global supply network, to increase its volume. This was partially reflected in the company’s H1 2021 results, where DEO’s revenues saw only a sequential rise (compared to H2 2020) of 57%, with absolute revenues going back close to the year-ago period.
With investors’ focus having shifted to 2021, the stock has seen healthy growth over recent months in anticipation of strong revenue and margin expansion. However, the recent surge in Covid positive cases in Europe and new virus strains coming into the picture could prove to be an impediment in this growth path. But in the absence of another full-fledged lockdown (which looks unlikely at the moment), the stock is likely to remain elevated. Also, the roll-out of the vaccines have enthused the markets, while reopening of restaurant and pubs along with restarting of live events is expected to lead to significant improvement in volume, revenue, and margins in 2021 and 2022. Projections of improving fundamentals provides a further upside of about 10% to the company’s stock.
While Diageo stock may have moved a fair amount, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how the stock valuation for Coca-Cola vs Merck shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Diageo stock (NYSE: DEO) has registered a formidable recovery of more than 60% from its March 2020 low. At the current price of $167, DEO stock still looks undervalued and is a decent bet for investors. DEO stock has rallied 62% from $103 (on 23rd March 2020) to $167 off its recent bottom, compared to the S&P 500 which has increased 75% from its recent lows.
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Diageo stock (NYSE: DEO) has registered a formidable recovery of more than 60% from its March 2020 low. At the current price of $167, DEO stock still looks undervalued and is a decent bet for investors. DEO stock has rallied 62% from $103 (on 23rd March 2020) to $167 off its recent bottom, compared to the S&P 500 which has increased 75% from its recent lows.
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Diageo stock (NYSE: DEO) has registered a formidable recovery of more than 60% from its March 2020 low. At the current price of $167, DEO stock still looks undervalued and is a decent bet for investors. DEO stock has rallied 62% from $103 (on 23rd March 2020) to $167 off its recent bottom, compared to the S&P 500 which has increased 75% from its recent lows.
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Diageo stock (NYSE: DEO) has registered a formidable recovery of more than 60% from its March 2020 low. At the current price of $167, DEO stock still looks undervalued and is a decent bet for investors. DEO stock has rallied 62% from $103 (on 23rd March 2020) to $167 off its recent bottom, compared to the S&P 500 which has increased 75% from its recent lows.
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4287cb10-3291-4fb9-b13c-40183ec61e20
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727676.0
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2021-01-28 00:00:00 UTC
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Consumer Sector Update for 01/28/2021: MCD, DEO, MKC, XLP, XLY
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DEO
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https://www.nasdaq.com/articles/consumer-sector-update-for-01-28-2021%3A-mcd-deo-mkc-xlp-xly-2021-01-28
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nan
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nan
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Consumer stocks were mixed in Thursday's pre-bell trading. Shares of staples companies in the S&P 500 (XLP) were advancing by 0.4% and consumer discretionary firms (XLY) were recently slipping by 0.3%.
McDonald's (MCD) was up 0.5% as it posted Q4 adjusted earnings of $1.70 per share, compared with $1.97 a year ago. Analysts polled by Capital IQ expected $1.77.
Diageo (DEO) was up more than 4.8% even after it reported a decline in net profit and sales in the first half of fiscal year 2021 as the pandemic continued to damp demand. The wine and spirits maker reported a net profit of GBP1.58 billion ($2.16 billion) in the six months through December, down from GBP1.87 billion a year ago. Net sales fell to GBP6.87 billion from GBP7.20 billion in the comparable period last year.
McCormick (MKC) was slipping past 2% as it reported fiscal Q4 adjusted EPS of $0.79, down from $0.81 a year earlier. The average estimate of analysts polled by Capital IQ had called for $0.89.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Diageo (DEO) was up more than 4.8% even after it reported a decline in net profit and sales in the first half of fiscal year 2021 as the pandemic continued to damp demand. Shares of staples companies in the S&P 500 (XLP) were advancing by 0.4% and consumer discretionary firms (XLY) were recently slipping by 0.3%. McCormick (MKC) was slipping past 2% as it reported fiscal Q4 adjusted EPS of $0.79, down from $0.81 a year earlier.
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Diageo (DEO) was up more than 4.8% even after it reported a decline in net profit and sales in the first half of fiscal year 2021 as the pandemic continued to damp demand. Analysts polled by Capital IQ expected $1.77. The wine and spirits maker reported a net profit of GBP1.58 billion ($2.16 billion) in the six months through December, down from GBP1.87 billion a year ago.
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Diageo (DEO) was up more than 4.8% even after it reported a decline in net profit and sales in the first half of fiscal year 2021 as the pandemic continued to damp demand. The wine and spirits maker reported a net profit of GBP1.58 billion ($2.16 billion) in the six months through December, down from GBP1.87 billion a year ago. Net sales fell to GBP6.87 billion from GBP7.20 billion in the comparable period last year.
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Diageo (DEO) was up more than 4.8% even after it reported a decline in net profit and sales in the first half of fiscal year 2021 as the pandemic continued to damp demand. Consumer stocks were mixed in Thursday's pre-bell trading. Net sales fell to GBP6.87 billion from GBP7.20 billion in the comparable period last year.
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acf0e862-7e08-4d67-817e-1a8fed6b5be4
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727677.0
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2021-01-28 00:00:00 UTC
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Diageo H1 Profit Down On Weak Volume; Sees Organic Profit Growth In H2 - Quick Facts
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DEO
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https://www.nasdaq.com/articles/diageo-h1-profit-down-on-weak-volume-sees-organic-profit-growth-in-h2-quick-facts-2021-01
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nan
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nan
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(RTTNews) - British alcoholic beverages company Diageo plc (DGE.L, DEO) reported Thursday that its first-half profit attributable to parent company's shareholders declined 15 percent to 1.58 billion pounds from last year's 1.87 billion pounds.
Basic earnings per share were 67.6 pence, down from 79.2 pence a year ago.
Adjusted earnings per share were 69.9 pence, down from 80.2 pence last year. Organic operating profit was down 3.4 percent.
Net sales dropped 5 percent to 6.87 billion pounds from prior year's 7.20 billion pounds. Organic net sales went up 1 percent, despite a significant impact from Travel Retail and on-trade restrictions. North America was up 12.3 percent, offsetting declines in other regions, except for Africa which was broadly flat.
Volume dropped 2 percent.
Further, the company announced that interim dividend increased 2 percent to 27.96 pence per share.
Looking ahead, the company said it is not providing specific guidance due to the ongoing volatility.
However, the company said it expects organic operating profit growth in the second half of fiscal 21 to be ahead of organic net sales growth in all regions due to the weak comparator period, except North America.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - British alcoholic beverages company Diageo plc (DGE.L, DEO) reported Thursday that its first-half profit attributable to parent company's shareholders declined 15 percent to 1.58 billion pounds from last year's 1.87 billion pounds. Organic net sales went up 1 percent, despite a significant impact from Travel Retail and on-trade restrictions. North America was up 12.3 percent, offsetting declines in other regions, except for Africa which was broadly flat.
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(RTTNews) - British alcoholic beverages company Diageo plc (DGE.L, DEO) reported Thursday that its first-half profit attributable to parent company's shareholders declined 15 percent to 1.58 billion pounds from last year's 1.87 billion pounds. Net sales dropped 5 percent to 6.87 billion pounds from prior year's 7.20 billion pounds. However, the company said it expects organic operating profit growth in the second half of fiscal 21 to be ahead of organic net sales growth in all regions due to the weak comparator period, except North America.
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(RTTNews) - British alcoholic beverages company Diageo plc (DGE.L, DEO) reported Thursday that its first-half profit attributable to parent company's shareholders declined 15 percent to 1.58 billion pounds from last year's 1.87 billion pounds. Net sales dropped 5 percent to 6.87 billion pounds from prior year's 7.20 billion pounds. However, the company said it expects organic operating profit growth in the second half of fiscal 21 to be ahead of organic net sales growth in all regions due to the weak comparator period, except North America.
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(RTTNews) - British alcoholic beverages company Diageo plc (DGE.L, DEO) reported Thursday that its first-half profit attributable to parent company's shareholders declined 15 percent to 1.58 billion pounds from last year's 1.87 billion pounds. Net sales dropped 5 percent to 6.87 billion pounds from prior year's 7.20 billion pounds. Organic net sales went up 1 percent, despite a significant impact from Travel Retail and on-trade restrictions.
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7ce11503-1f58-4451-befe-96d618d96e90
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727678.0
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2021-01-15 00:00:00 UTC
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Diageo Stock Increases 55% – What’s Next?
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DEO
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https://www.nasdaq.com/articles/diageo-stock-increases-55-whats-next-2021-01-15
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nan
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nan
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We believe Diageo stock (NYSE: DEO) may be an opportunity worth considering at the present time. DEO stock trades at close to $160 currently and is, in fact, still down 5% since the beginning of 2020 when it traded at around $168. The stock was at at $162 in February 2020 – just before the coronavirus pandemic hit the world – and is currently still 2% below that level as well. DEO stock has recovered over 55% of its value from its March level of $103, compared to the S&P 500 which gained over 70% from its March lows. However, with the lockdowns being gradually lifted and an expected turnaround in business prospects in FY2021, along with the company’s focus on premium brands, provides DEO stock with a 10% potential upside as it will likely surpass its early-2020 levels. Our conclusion is based on our comparative analysis of Diageo stock performance during the current financial crisis with that during the 2008 recession in our interactive dashboard.
2020 Coronavirus Crisis
Timeline of 2020 Crisis So Far:
12/12/2019: Coronavirus cases first reported in China
1/31/2020: WHO declares a global health emergency.
2/19/2020: Signs of effective containment in China and hopes of monetary easing by major central banks helps S&P 500 reach a record high
3/23/2020: S&P 500 drops 34% from the peak level seen on Feb 19, 2020, as COVID-19 cases accelerate outside China. Doesn’t help that oil prices crash in mid-March amid Saudi-led price war
Since 3/24/2020: S&P 500 recovers 70% from the lows seen on Mar 23, 2020, as the Fed’s multi-billion dollar stimulus package suppresses near-term survival anxiety and infuses liquidity into the system.
In contrast, here is how DEO stock and the broader market fared during the 2007-08 crisis
Timeline of 2007-08 Crisis
10/1/2007: Approximate pre-crisis peak in S&P 500 index
9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08)
3/1/2009: Approximate bottoming out of S&P 500 index
12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008)
DEO and S&P500 Performance Over 2007-08 Financial Crisis
DEO stock declined from levels of about $89 in September 2007 (pre-crisis peak) to levels of $46 in March 2009 (as the markets bottomed out), implying DEO stock lost 48% from its approximate pre-crisis peak. It recovered post the 2008 crisis, to levels of close to $69 in early 2010, rising by 49% between March 2009 and January 2010. In comparison, the S&P 500 Index saw a decline of 51% and recovered 48%.
DEO Fundamentals Over Recent Years
DEO revenues increased from $15.4 billion in FY2016 to $16.6 billion in FY2019. However, revenues dropped in FY2020 to $14.8 billion on the back of the pandemic. Along with higher revenues, margins increased with EPS increasing from $5.27 in FY2016 to $6.72 in FY2019. Earnings more than halved to $3.03 in FY 2020 due to lower revenues and higher operating expenses.
Does DEO Have Sufficient Cash Cushion To Meet Its Obligations Through The Coronavirus Crisis?
DEO’s total debt increased from $15 billion in FY2016 to $21 billion in FY2020, while its total cash went up from $872 million to $906 million over the same period. At the same time, the company’s cash from operations dropped sharply from $3.8 billion to $2.9 billion. Lower cash flow generation and high debt are risks that DEO could face while tiding over the current crisis.
Conclusion
Phases of Covid-19 Crisis:
Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally
Late-March 2020 onward: Social distancing measures + lockdowns
April 2020: Fed stimulus suppresses near-term survival anxiety
May-June 2020: Recovery of demand, with gradual lifting of lockdowns – no panic anymore despite a steady increase in the number of cases
Since late 2020: Weak quarterly results, but continued improvement in demand and progress with vaccine development buoy market sentiment
Diageo stock has recouped the losses it suffered last March, and currently trades around its February-2020 level. We believe that the stock is still undervalued and will rise beyond the levels seen in early 2020 with a focus on the sale of premium brands. Our dashboard Trends In U.S. Covid-19 Cases provides an overview of how the pandemic has been spreading in the U.S. and contrasts with trends in Brazil and Russia.
Based on Diageo valuation, Trefis has a price estimate of $175 per share for DEO’s stock.
What if you’re looking for a more balanced portfolio instead? Here’s a high quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, with the lockdowns being gradually lifted and an expected turnaround in business prospects in FY2021, along with the company’s focus on premium brands, provides DEO stock with a 10% potential upside as it will likely surpass its early-2020 levels. We believe Diageo stock (NYSE: DEO) may be an opportunity worth considering at the present time. DEO stock trades at close to $160 currently and is, in fact, still down 5% since the beginning of 2020 when it traded at around $168.
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In contrast, here is how DEO stock and the broader market fared during the 2007-08 crisis Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) DEO and S&P500 Performance Over 2007-08 Financial Crisis DEO stock declined from levels of about $89 in September 2007 (pre-crisis peak) to levels of $46 in March 2009 (as the markets bottomed out), implying DEO stock lost 48% from its approximate pre-crisis peak. We believe Diageo stock (NYSE: DEO) may be an opportunity worth considering at the present time. DEO stock trades at close to $160 currently and is, in fact, still down 5% since the beginning of 2020 when it traded at around $168.
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In contrast, here is how DEO stock and the broader market fared during the 2007-08 crisis Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) DEO and S&P500 Performance Over 2007-08 Financial Crisis DEO stock declined from levels of about $89 in September 2007 (pre-crisis peak) to levels of $46 in March 2009 (as the markets bottomed out), implying DEO stock lost 48% from its approximate pre-crisis peak. DEO Fundamentals Over Recent Years DEO revenues increased from $15.4 billion in FY2016 to $16.6 billion in FY2019. We believe Diageo stock (NYSE: DEO) may be an opportunity worth considering at the present time.
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Based on Diageo valuation, Trefis has a price estimate of $175 per share for DEO’s stock. We believe Diageo stock (NYSE: DEO) may be an opportunity worth considering at the present time. DEO stock trades at close to $160 currently and is, in fact, still down 5% since the beginning of 2020 when it traded at around $168.
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652b19a8-ee5c-4c8f-b73a-35a31d33ea0d
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727679.0
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2021-01-14 00:00:00 UTC
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Diageo CFO Kathryn Mikells To Step Down; Names Lavanya Chandrashekar CFO
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DEO
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https://www.nasdaq.com/articles/diageo-cfo-kathryn-mikells-to-step-down-names-lavanya-chandrashekar-cfo-2021-01-14
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nan
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nan
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(RTTNews) - Diageo plc (DGE.L, DEO) said that its Chief Financial Officer, Kathryn Mikells, will leave the company at the end of June 2021 and will return to the US after almost six years in role.
Diageo said it has appointed Lavanya Chandrashekar, who is Chief Financial Officer of Diageo North America and Global Head of Investor Relations, as its Chief Financial Officer, effective 1 July 2021.
Lavanya's appointment will be effective on 1 July 2021 and she will join the Diageo Executive Committee and Board. Lavanya joined Diageo in July 2018 as Chief Financial Officer, Diageo North America.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Diageo plc (DGE.L, DEO) said that its Chief Financial Officer, Kathryn Mikells, will leave the company at the end of June 2021 and will return to the US after almost six years in role. Diageo said it has appointed Lavanya Chandrashekar, who is Chief Financial Officer of Diageo North America and Global Head of Investor Relations, as its Chief Financial Officer, effective 1 July 2021. Lavanya's appointment will be effective on 1 July 2021 and she will join the Diageo Executive Committee and Board.
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(RTTNews) - Diageo plc (DGE.L, DEO) said that its Chief Financial Officer, Kathryn Mikells, will leave the company at the end of June 2021 and will return to the US after almost six years in role. Diageo said it has appointed Lavanya Chandrashekar, who is Chief Financial Officer of Diageo North America and Global Head of Investor Relations, as its Chief Financial Officer, effective 1 July 2021. Lavanya joined Diageo in July 2018 as Chief Financial Officer, Diageo North America.
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(RTTNews) - Diageo plc (DGE.L, DEO) said that its Chief Financial Officer, Kathryn Mikells, will leave the company at the end of June 2021 and will return to the US after almost six years in role. Diageo said it has appointed Lavanya Chandrashekar, who is Chief Financial Officer of Diageo North America and Global Head of Investor Relations, as its Chief Financial Officer, effective 1 July 2021. Lavanya joined Diageo in July 2018 as Chief Financial Officer, Diageo North America.
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(RTTNews) - Diageo plc (DGE.L, DEO) said that its Chief Financial Officer, Kathryn Mikells, will leave the company at the end of June 2021 and will return to the US after almost six years in role. Diageo said it has appointed Lavanya Chandrashekar, who is Chief Financial Officer of Diageo North America and Global Head of Investor Relations, as its Chief Financial Officer, effective 1 July 2021. Lavanya's appointment will be effective on 1 July 2021 and she will join the Diageo Executive Committee and Board.
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e8ed7ce6-74eb-4bea-b8ac-ac52e4efbab0
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727680.0
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2021-01-13 00:00:00 UTC
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Anheuser-Busch Stock Recovers 100% – What’s Changed?
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DEO
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https://www.nasdaq.com/articles/anheuser-busch-stock-recovers-100-whats-changed-2021-01-13
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nan
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nan
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After more than doubling since its March lows of 2020, at the current price of $71 per share, Anheuser-Busch InBev stock (NYSE: BUD) seems to have reached its near-term potential. BUD’s stock has rallied from $35 to over $70 off its recent bottom compared to the S&P 500 which increased over 70% from its recent lows. The stock was able to beat the broader market over the last few months, with the US government announcing a string of measures along with stimulus packages announced in other economies to keep businesses afloat. As the global economy opens up and supply constraints ease, volume sales are likely to rise in the coming quarters. Though the stock is still close to 15% below its December 2019 level, it is unlikely to see any major movement anytime soon due to slowdown in the beer segment even before the pandemic. Additionally, the new virus strain and lockdown in the UK will limit any major upside in the stock for now. BUD’s stock is expected to hover around its current level of $70 in the near-term. Our dashboard What Factors Drove -36% Change In Anheuser-Busch InBev Stock Between 2017 And Now? provides the key numbers behind our thinking.
Some of the drop in the stock price between 2017-2019 is justified by the 4.6% decline in revenues during this period. BUD’s revenues decreased from $54.9 billion in 2017 to $52.3 billion in 2019 mainly due to changing consumer preferences, as health conscious consumers are moving away from beer. Margins remained very volatile during those two years due to tax law impact and heavy derivative losses. But largely the margins improved in 2019 due to the company’s deleveraging program. On a per share basis, earnings increased from $3.98 in 2017 to $4.80 in 2019.
Though earnings went up, the steady drop in revenues over recent years led to a decline in the P/E multiple from 28x to 17x between 2017-2019. The multiple crashed to 7x in early 2020 following the outbreak of the coronavirus pandemic which led to shutting down of pubs and restaurants. However, it has recovered over the last few months after stimulus measures were announced and currently stands at about 15x, still lower than its 2019 level. We believe the multiple is likely to go up slightly as the global economy opens further.
Outlook?
The global spread of coronavirus led to lockdown in various cities across the globe, which affected industrial and economic activity. This took a toll on consumption and consumer spending, which was reflected in BUD’s Q2 2020 and Q3 2020 results where its revenue declined by 18% y-o-y. The widespread closing of restaurants and bars, plus the cancellation of sporting events, concerts, and nearly every other form of public entertainment across key markets led to a plunge in beer sales, thus affecting the stock price adversely.
However, there have been signs of lifting of the global lockdowns over recent months. As the global economy opens up and lockdowns are lifted in phases, consumer demand is slowly picking up. Any further recovery and its timing hinge on the broader containment of the coronavirus spread. Our dashboard Trends In U.S. Covid-19 Cases provides an overview of how the pandemic has been spreading in the U.S. and contrasts with trends in Brazil and Russia. With the lifting of lockdowns, reduction of supply bottlenecks is expected to help a company like BUD, which has a global supply network, to increase its volume. This was partially reflected in the company’s Q3 results, where BUD’s volume and organic revenues saw a y-o-y growth of 1.9% and 4%, respectively. The company is likely to see healthy revenue growth in FY2021 on a lower base of FY2020.
With investors’ focus having shifted to 2021, the stock has seen healthy growth over recent months in anticipation of strong revenue and margin growth. However, the recent surge in Covid positive cases, a new virus strain coming into the picture, and the re-imposition of lockdowns in the UK could prove to be an impediment in this growth path. If the rise in cases warrant a re-imposition of lockdowns in other major economies as well, then the stock could see a sharp drop. Even in the absence of another lockdown, a major rise in the stock is unlikely after having doubled over recent months. BUD’s stock is likely to remain around its current level in the near term. As per Trefis, BUD’s valuation works out to $70 per share.
What if you’re looking for a more balanced portfolio instead? Here’s a high quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After more than doubling since its March lows of 2020, at the current price of $71 per share, Anheuser-Busch InBev stock (NYSE: BUD) seems to have reached its near-term potential. The widespread closing of restaurants and bars, plus the cancellation of sporting events, concerts, and nearly every other form of public entertainment across key markets led to a plunge in beer sales, thus affecting the stock price adversely. However, the recent surge in Covid positive cases, a new virus strain coming into the picture, and the re-imposition of lockdowns in the UK could prove to be an impediment in this growth path.
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After more than doubling since its March lows of 2020, at the current price of $71 per share, Anheuser-Busch InBev stock (NYSE: BUD) seems to have reached its near-term potential. With investors’ focus having shifted to 2021, the stock has seen healthy growth over recent months in anticipation of strong revenue and margin growth. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
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The stock was able to beat the broader market over the last few months, with the US government announcing a string of measures along with stimulus packages announced in other economies to keep businesses afloat. With the lifting of lockdowns, reduction of supply bottlenecks is expected to help a company like BUD, which has a global supply network, to increase its volume. With investors’ focus having shifted to 2021, the stock has seen healthy growth over recent months in anticipation of strong revenue and margin growth.
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After more than doubling since its March lows of 2020, at the current price of $71 per share, Anheuser-Busch InBev stock (NYSE: BUD) seems to have reached its near-term potential. Though earnings went up, the steady drop in revenues over recent years led to a decline in the P/E multiple from 28x to 17x between 2017-2019. If the rise in cases warrant a re-imposition of lockdowns in other major economies as well, then the stock could see a sharp drop.
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e83fdfde-6d7b-4557-8d23-3b2f519e7d5f
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727681.0
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2021-01-07 00:00:00 UTC
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3 International Companies Whose Products You Probably Use Without Noticing
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DEO
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https://www.nasdaq.com/articles/3-international-companies-whose-products-you-probably-use-without-noticing-2021-01-07
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nan
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nan
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A 2017 study found that Americans were among the least likely people to travel beyond their own nation's borders. That could be due to lack of interest, the long distances involved in traversing oceans, or a number of other reasons. But it certainly doesn't stop what's produced by international companies from coming to the U.S.
Many Americans likely use these products and services without even realizing where they originated. But it's staying under the radar and making other brands successful that has helped Diageo (NYSE: DEO), Shopify (NYSE: SHOP), and ASML Holding (NASDAQ: ASML) all grow into respected businesses (at least by investors).
These three companies may not get a lot of public notice, but are they great investments today? Let's explore a bit more and try to find the answer.
Image source: Getty Images
1. Diageo
The U.K.-based spirits producer owns a wide portfolio of beverage brands including Guinness, Johnnie Walker, and Smirnoff, and those names are far better known than that of the company that produces them. Still, having a slew of popular alcohol brands can only help a company so much when the restaurants and bars that sell them are closed or operating at a reduced capacity. Diageo's sales declined 8.7% year over year to 11.75 billion pounds (about $14.6 billion) for the fiscal year that ended June 30. The company guided for lower year-over-year revenue for the first half of its fiscal 2021 (July through December) but it is seeing a sales resurgence, particularly in the U.S. U.S. competitor Brown-Forman (NYSE: BF.A)(NYSE: BF-B) confirmed the trend, reporting 9% year-over-year sales growth in the May to October period, led by strong demand for Jack Daniels in the U.S. Investors seem to expect Diageo's business to be back on track shortly, as the stock price sits almost exactly where it began 2020.
The company may have weathered the pandemic, but longer-term headwinds could prove more challenging. The percentage of college-age Americans who said they abstain from alcohol grew from 20% in 2002 to 28% in 2018. The trends are similar in the U.K. Of course, every generation has its vice, and a study of Americans ages 30 to 80 found they have been drinking 14% more often during the pandemic.
Also worth noting: Now that 15 states and the District of Columbia have legalized recreational marijuana, demand for alcoholic beverages could sink further. A 2017 county-level study found that following the legalization of cannabis for medical purposes in a locale, sales of alcohol were reduced by an average of 12%.
With dozens of brands, Diageo will be well-positioned to capitalize on whatever drinking trends emerge post-pandemic as consumer tastes invariably change, but it's a slow-growth company. With the stock currently trading at 31.5 times its pre-pandemic full-year earnings -- 30% higher than its five-year average -- investors may be better served to wait for a more opportune moment to buy shares of Diageo.
2. Shopify
This fast-growing Canadian software-as-a-service player provides merchants with an easy-to-use platform for launching and operating online storefronts. It offers an array of integrated tools for e-commerce, marketing, handling payments, and fulfilling orders. During a December virtual presentation, management described what it does as "arm[ing] the rebels." Unlike Amazon, which commoditizes its merchants into a list under a search box, Shopify has established an ecosystem that facilitates commerce without getting in between businesses and their customers. As a result, most customers will have no idea if an e-commerce site they are visiting is a Shopify client.
When brick-and-mortar businesses found themselves compelled to rapidly shift online to survive during the pandemic, many picked Shopify to assist them. Its revenue for the third quarter rose 96% year over year to $767.4 million. Similarly, gross merchandise value -- the value of all sales on the platform -- rose 109%. Those aren't the only numbers that indicate the platform is adding value for business owners. Merchants continued adopting the company's offerings -- like cash advances and loans from Shopify Capital, logistics from Shopify Shipping, and the checkout experience or installment plans from Shopify Pay -- at a higher rate in the third quarter. Also, the number of partners who made a referral was up 63% to 37,400 in the 12-month period ending Sept. 30.
The stock is currently trading at a premium, so investors may want to wait for a pullback before buying shares. Shopify stock is currently trading at 56 times sales, which is near its highest valuation ever -- and twice the peak of Amazon during the dot-com bubble.
3. ASML Holding
This Dutch maker of lithography systems used to create microchips calls itself "the most important tech company you've never heard of." It's hard to argue with that. Virtually every device that has a chip in it relies on ASML's technology. Its machines use light to print patterns on silicon wafers, but that doesn't begin to describe the complexity of the company's latest extreme ultraviolet (EUV) lithography machines. These utilize droplets of molten tin, vaporized by lasers into plasma, emitting radiation which is bounced off mirrors so smooth that if they were the size of Montana, no bump on them would be more than 1 millimeter high.
These chip-fabricating machines, which are the size of a double-decker bus, cost about $120 million apiece. And they're back-ordered for two years.
ASML has about a 62% share in the lithography market, but it's the only maker of cutting-edge EUV machines. Originally, EUV lithography technology was expected to be deployed commercially in 2007, but it wasn't until 2018 that the first customer was using it. Now that it's here, ASML's sales are taking off. For the past four reported quarters, the company's sales rose 26% year over year to 13.76 billion euros, and net income climbed by 49% to 3.34 billion euros. The company will need to keep growing at a similar pace if its shares are going to outperform from here. Based on the 9.55 euros per share that analysts estimate it will earn next year, its forward P/E ratio will be 20% above its five-year average. ASML is the kind of stock that investors can feel safe buying during a pullback, but it will take one to bring shares back in line with their historical valuations.
Find out why Shopify is one of the 10 best stocks to buy now
Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
Tom and David just revealed their ten top stock picks for investors to buy right now. Shopify is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of November 20, 2020
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jason Hawthorne has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon, ASML Holding, and Shopify. The Motley Fool recommends Diageo and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. 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.
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But it's staying under the radar and making other brands successful that has helped Diageo (NYSE: DEO), Shopify (NYSE: SHOP), and ASML Holding (NASDAQ: ASML) all grow into respected businesses (at least by investors). The company guided for lower year-over-year revenue for the first half of its fiscal 2021 (July through December) but it is seeing a sales resurgence, particularly in the U.S. U.S. competitor Brown-Forman (NYSE: BF.A)(NYSE: BF-B) confirmed the trend, reporting 9% year-over-year sales growth in the May to October period, led by strong demand for Jack Daniels in the U.S. Investors seem to expect Diageo's business to be back on track shortly, as the stock price sits almost exactly where it began 2020. With the stock currently trading at 31.5 times its pre-pandemic full-year earnings -- 30% higher than its five-year average -- investors may be better served to wait for a more opportune moment to buy shares of Diageo.
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But it's staying under the radar and making other brands successful that has helped Diageo (NYSE: DEO), Shopify (NYSE: SHOP), and ASML Holding (NASDAQ: ASML) all grow into respected businesses (at least by investors). For the past four reported quarters, the company's sales rose 26% year over year to 13.76 billion euros, and net income climbed by 49% to 3.34 billion euros. The Motley Fool owns shares of and recommends Amazon, ASML Holding, and Shopify.
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But it's staying under the radar and making other brands successful that has helped Diageo (NYSE: DEO), Shopify (NYSE: SHOP), and ASML Holding (NASDAQ: ASML) all grow into respected businesses (at least by investors). The company guided for lower year-over-year revenue for the first half of its fiscal 2021 (July through December) but it is seeing a sales resurgence, particularly in the U.S. U.S. competitor Brown-Forman (NYSE: BF.A)(NYSE: BF-B) confirmed the trend, reporting 9% year-over-year sales growth in the May to October period, led by strong demand for Jack Daniels in the U.S. Investors seem to expect Diageo's business to be back on track shortly, as the stock price sits almost exactly where it began 2020. Merchants continued adopting the company's offerings -- like cash advances and loans from Shopify Capital, logistics from Shopify Shipping, and the checkout experience or installment plans from Shopify Pay -- at a higher rate in the third quarter.
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But it's staying under the radar and making other brands successful that has helped Diageo (NYSE: DEO), Shopify (NYSE: SHOP), and ASML Holding (NASDAQ: ASML) all grow into respected businesses (at least by investors). The trends are similar in the U.K. Of course, every generation has its vice, and a study of Americans ages 30 to 80 found they have been drinking 14% more often during the pandemic. Find out why Shopify is one of the 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market.
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5ca1be9c-1d1b-4c33-abe6-1043d2adf32a
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727682.0
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2020-11-24 00:00:00 UTC
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3 Alcohol Stocks for Reliable Growth and Dividends
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DEO
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https://www.nasdaq.com/articles/3-alcohol-stocks-for-reliable-growth-and-dividends-2020-11-24
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Many economic sectors have seen revenue and profits collapse over the course of 2020, due to the coronavirus pandemic. Industries such as energy, restaurants and retailers are among the hardest-hit areas of the economy. But not all industries are struggling – alcohol stocks continue to generate strong profits and steady growth throughout the year.
The reason is because alcohol stocks have seen their demand remain intact (or even increase) as consumers spend more time at home. This has caused a pantry-stocking phenomenon, meaning alcohol stocks have been among the rare winners of the pandemic.
7 Value Stocks That May Come Back into Style After the Pandemic
The following alcohol stocks performed very well to start 2020, thanks to their strong brands and global competitive advantages. Investors were rewarded for their patience with strong stock price gains, as well as rising dividends from these three high-quality dividend stocks.
Diageo PLC (NYSE:DEO)
Constellation Brands (NYSE:STZ)
Brown-Forman (NYSE:BF.A, NYSE:BF.B)
Alcohol Stocks: Diageo PLC (DEO)
Source: IgorGolovniov / Shutterstock.com
Diageo is one of the largest beverage companies in the world, with a market capitalization near $100 billion. It is also one of the world’s oldest companies, tracing its history all the way back to the 1600s. Diageo is a true alcohol conglomerate, with a huge brand portfolio. Diageo owns 20 of the world’s top 100 spirits brands. A few of its core brands include Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray, Guinness, Crown Royal, and Ketel One.
Diageo was not immune to the coronavirus pandemic, and its financial results weakened in the most recent fiscal year. Global organic net sales declined 8% for fiscal 2020. But on the positive side, Diageo notched organic growth in North America for the fiscal year. This is important, as North America is the company’s biggest market at 39% of total revenue.
While the recently-concluded fiscal year was widely viewed as a disappointment for the company, Diageo has a bright long-term future, which puts it on this list of reliable alcohol stocks. One big reason is its entrenched position in under-developed nations around the world. The emerging markets are more important for Diageo, which is a headwind in the short-term, but is likely to be a long-term tailwind.
Emerging markets are among the fastest-growing economies in the world. For example, Africa, Latin America & the Caribbean, and Asia-Pacific represent nearly 40% of company revenue. When the global economy returns to normal, these markets should once again return to higher growth rates.
Diageo pays a semi-annual dividend, meaning two payments per year. It typically pays an interim dividend in April and a final dividend in October. The approximate split between the two payments is 40/60. For 2020, the annual dividend payout came to $3.55 in U.S. dollars, resulting in a dividend yield of 2.2%. The 2020 dividend was increased by approximately 3.5% from the 2019 payout, making Diageo stock a mix of dividend yield and growth.
Constellation Brands (STZ)
Source: ShinoStock / Shutterstock.com
Constellation Brands produces and distributes beer, wine, and spirits. It is a highly diversified company with more than 100 brands in its portfolio, including beer brands Corona, wine brands including Robert Mondavi and Clos du Bois, and liquor brands such as Svedka, Casa Noble and High West. Constellation Brands has also branched into marijuana, an adjacent category that could represent a major new growth avenue. It has invested $4 billion in Canadian marijuana producer Canopy Growth (NASDAQ:CGC) for a nearly 40% ownership stake.
Canopy Growth has held the company back in recent periods, although it could still represent a long-term growth catalyst. In the meantime, Constellation Brands continues to remain highly profitable, thanks to its core alcohol brands. In the most recent quarter, revenue of $2.26 billion represented a mild decline of 3.6% from the previous quarter. However, earnings-per-share totaled $2.76, a 1.5% increase from the same quarter last year. And, excluding a loss from Canopy Growth, EPS would have equaled $2.91 for the quarter for a 7% growth rate.
Constellation is expected to continue generating growth in the years ahead, largely due to its premiumization strategy. In the most recent quarter, Constellation Brands saw at least 16% dollar-sales growth from its higher-end beer, spirits, and wine, compared with much lower growth from its lower-end brands. It is also using acquisitions to boost its growth in craft beer, such as the acquisitions of Funky Buddha and Four Corners Brewing in recent years.
7 Value Stocks That May Come Back into Style After the Pandemic
Constellation Brands has a 1.5% dividend, along with a high dividend growth rate. In the past five years, the company’s compound annual dividend growth rate was 19%. This makes Constellation Brands an attractive pick for dividend growth investors and second on the list of alcohol stocks.
Brown-Forman (BF-B)
Brown-Forman has a long history of growth, thanks to its core brand Jack Daniel’s. The company has a broader spirits portfolio including other top-tier brands like Herradura, Woodford Reserve, El Jimador and Finlandia. Brown-Forman does not have quite as large a brand portfolio as Diageo and Constellation Brands. But this has not hurt the company; instead, it operates a leaner and more focused business, which has served the company well over the years.
Brown-Forman has the longest streak of annual dividend increases. The company recently declared a new quarterly dividend of 17.95 cents per share, a 3% increase from the prior quarterly dividend rate. This marks the 37th consecutive year of a dividend increase for Brown-Forman, which makes it a member of the dividend aristocrats list. The dividend aristocrats are a group of just 65 stocks in the S&P 500 Index that raised their dividends for 25-plus consecutive years. In all, Brown-Forman has paid dividends for the past 76 years.
Brown-Forman continues to perform well in 2020. In the most recent quarter, revenues of $750 million were down 2% year-over-year, but did beat analyst estimates by $62 million. However, excluding currency impacts, underlying organic sales increased 3%. Brown-Forman is seeing broad-based growth across its product line and geographic markets. Last quarter, currency-neutral sales in the United States and developed international markets grew by 9% and 12%, respectively.
The Jack Daniel’s family of brands grew underlying sales by 3%, while Brown-Forman realized even stronger growth from its premium brands. For example, premium bourbons grew underlying sales by 18% last quarter, driven by 14% growth for Woodford Reserve and continued high double-digit growth for Old Forester. Meanwhile, Brown-Forman is seeing strong growth in tequila as well, with 16% growth across the tequila portfolio driven by New Mix in Mexico and also from el Jimador.
Earnings-per-share totaled 67 cents for the first quarter, again beating consensus by 37 cents. The quarter’s profits were up 73%, although adjusted earnings-per-share were up only marginally from the same quarter last year. The company’s sustained growth and low payout ratio should lead to many more years of dividend growth. For the full fiscal year, Brown-Forman is expected to have a dividend payout ratio below 40%, indicating a highly secure dividend. The current dividend yield of 0.9% is a fairly low yield, but Brown-Forman is on this list of alcohol stocks since it makes up for the low yield with rapid dividend growth.
On the date of publication, Bob Ciura did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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 Alcohol Stocks for Reliable Growth and Dividends 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.
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Diageo PLC (NYSE:DEO) Constellation Brands (NYSE:STZ) Brown-Forman (NYSE:BF.A, NYSE:BF.B) Alcohol Stocks: Diageo PLC (DEO) Source: IgorGolovniov / Shutterstock.com Diageo is one of the largest beverage companies in the world, with a market capitalization near $100 billion. A few of its core brands include Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray, Guinness, Crown Royal, and Ketel One. While the recently-concluded fiscal year was widely viewed as a disappointment for the company, Diageo has a bright long-term future, which puts it on this list of reliable alcohol stocks.
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Diageo PLC (NYSE:DEO) Constellation Brands (NYSE:STZ) Brown-Forman (NYSE:BF.A, NYSE:BF.B) Alcohol Stocks: Diageo PLC (DEO) Source: IgorGolovniov / Shutterstock.com Diageo is one of the largest beverage companies in the world, with a market capitalization near $100 billion. Constellation Brands (STZ) Source: ShinoStock / Shutterstock.com Constellation Brands produces and distributes beer, wine, and spirits. For example, premium bourbons grew underlying sales by 18% last quarter, driven by 14% growth for Woodford Reserve and continued high double-digit growth for Old Forester.
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Diageo PLC (NYSE:DEO) Constellation Brands (NYSE:STZ) Brown-Forman (NYSE:BF.A, NYSE:BF.B) Alcohol Stocks: Diageo PLC (DEO) Source: IgorGolovniov / Shutterstock.com Diageo is one of the largest beverage companies in the world, with a market capitalization near $100 billion. 7 Value Stocks That May Come Back into Style After the Pandemic Constellation Brands has a 1.5% dividend, along with a high dividend growth rate. The current dividend yield of 0.9% is a fairly low yield, but Brown-Forman is on this list of alcohol stocks since it makes up for the low yield with rapid dividend growth.
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Diageo PLC (NYSE:DEO) Constellation Brands (NYSE:STZ) Brown-Forman (NYSE:BF.A, NYSE:BF.B) Alcohol Stocks: Diageo PLC (DEO) Source: IgorGolovniov / Shutterstock.com Diageo is one of the largest beverage companies in the world, with a market capitalization near $100 billion. The 2020 dividend was increased by approximately 3.5% from the 2019 payout, making Diageo stock a mix of dividend yield and growth. In the meantime, Constellation Brands continues to remain highly profitable, thanks to its core alcohol brands.
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511f3033-85a6-40f7-94bc-30197ccfb1b5
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727683.0
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2020-11-24 00:00:00 UTC
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3 International Companies Whose Products You'll Soon Use
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DEO
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https://www.nasdaq.com/articles/3-international-companies-whose-products-youll-soon-use-2020-11-24
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nan
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nan
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We live in an interconnected world. Chances are reasonably good that even if you're actively looking to buy American, part of what you're buying can trace at least some of its roots overseas. As a result, it makes sense to consider businesses headquartered outside the United States for at least a portion of your portfolio. After all, if their products and services are worthy of your cash, you may very well find their stocks to be a worthwhile use of your money as well.
The first step is recognizing those international companies and what they do and how their products may fit into your daily life. With that in mind, here are three international companies whose products your soon use.
Image source: Getty Images
No. 1: A global leader in regional airplanes
Brazil-based Embraer (NYSE: ERJ) is the third largest airplane manufacturer in the world and a leader in producing regional jets -- those smaller planes that take on less traveled routes. Although the curtailing of travel because of coronavirus pandemic in 2020 has been devastating to airlines, there's good reason to believe travel will return once it's safer.
On that front, Embraer's regional jets . If there has been a migration trend since the pandemic started, it's that people have moved out of big cities to find more space. As employers recognize that they can thrive with remote workforces, that outmigration from urban cores may very well become a longer-term trend.
If that's the case, air travel will need to adapt by recognizing that there will be a corresponding shift in how and where travelers fly. The farther away from big cities people are, the more attractive the smaller airports and shorter-haul flights become. That could mean a structural long-term shift toward the type of flights and planes that Embraer specializes in.
Even if that migration isn't permanent, chances are that air travel won't immediately bounce back to pre-pandemic levels. After all, companies that have adapted to remote work may decide they don't need or want to take the risk from as many face-to-face in-person meetings, thus slowing the return of business travel. Airlines may adapt to that trend by sending smaller planes along their routes -- again a potential win for Embraer and its regional jets.
No. 2: An international titan in adult beverages
Image source: Getty Images
UK-based Diageo (NYSE: DEO) is one of the largest alcoholic beverage businesses in the world. It owns some of the most iconic brands in the business, including Johnnie Walker, Guinness, Baileys, Smirnoff, and Crown Royal. Alcohol manufacturing tends to be a somewhat recession-resistant business. In good times, people may go out more, spending on quality alcohol at higher bar prices. During tough times, they may instead drown their sorrows at home, hurting the bars more than the alcohol makers.
With all the uncertainty in the world at the moment, having an investment that is less tethered to the overall economy can be a good thing. Of course, that means you can't really expect Diageo's investment performance to light the world on fire. Still, if you assume modest growth over time and add to it a dividend yield of around 2.3%, you might find Diageo to be a global titan with reasonable long term return potential.
No. 3: The maker of a reasonably effective COVID-19 vaccine candidate
UK-based pharmaceutical giant AstraZeneca (NASDAQ: AZN) recently announced that its COVID-19 vaccine candidate was found to be 70% effective in its phase 3 trials. Even more promising, a subset of the trial suggested that a combination approach of a found by other vaccine candidates.
Having multiple potentially successful vaccine candidates is a great thing for consumers in this pandemic. After all, competition tends to help lower prices for consumers. In addition, the different vaccines address the virus in different ways. That provides hope that people who may not respond to one vaccine may respond to a different one, helping improve the overall success rate and coverage rate from vaccinations.
Given the radical changes to all of our lives and work as a result of the COVID-19 pandemic, AstraZeneca's new vaccine may very well be an international product we'll all soon use. If not that particular vaccine, then likely another one of the promising ones in development.
Open your horizons with strong international companies
Although Embraer, Diageo, and AstraZeneca all operate in different business lines, what they all have in common is that they are international companies that do lots of business in America. Their operations are strong enough that you've likely heard of -- if not directly used -- their products. That strength and reach make them certainly worth considering as you look to broaden your investing horizons beyond the U.S. border.
10 stocks we like better than AstraZeneca PLC
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*Stock Advisor returns as of November 20, 2020
Chuck Saletta has no position in any of the stocks mentioned. 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.
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2: An international titan in adult beverages Image source: Getty Images UK-based Diageo (NYSE: DEO) is one of the largest alcoholic beverage businesses in the world. After all, companies that have adapted to remote work may decide they don't need or want to take the risk from as many face-to-face in-person meetings, thus slowing the return of business travel. It owns some of the most iconic brands in the business, including Johnnie Walker, Guinness, Baileys, Smirnoff, and Crown Royal.
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2: An international titan in adult beverages Image source: Getty Images UK-based Diageo (NYSE: DEO) is one of the largest alcoholic beverage businesses in the world. 3: The maker of a reasonably effective COVID-19 vaccine candidate UK-based pharmaceutical giant AstraZeneca (NASDAQ: AZN) recently announced that its COVID-19 vaccine candidate was found to be 70% effective in its phase 3 trials. Open your horizons with strong international companies Although Embraer, Diageo, and AstraZeneca all operate in different business lines, what they all have in common is that they are international companies that do lots of business in America.
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2: An international titan in adult beverages Image source: Getty Images UK-based Diageo (NYSE: DEO) is one of the largest alcoholic beverage businesses in the world. 1: A global leader in regional airplanes Brazil-based Embraer (NYSE: ERJ) is the third largest airplane manufacturer in the world and a leader in producing regional jets -- those smaller planes that take on less traveled routes. Open your horizons with strong international companies Although Embraer, Diageo, and AstraZeneca all operate in different business lines, what they all have in common is that they are international companies that do lots of business in America.
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2: An international titan in adult beverages Image source: Getty Images UK-based Diageo (NYSE: DEO) is one of the largest alcoholic beverage businesses in the world. Having multiple potentially successful vaccine candidates is a great thing for consumers in this pandemic. Given the radical changes to all of our lives and work as a result of the COVID-19 pandemic, AstraZeneca's new vaccine may very well be an international product we'll all soon use.
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3dbbb5a0-2732-47a0-a420-aaf7f502cd96
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727684.0
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2020-11-19 00:00:00 UTC
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Diageo Stock Up 50%, More Gains On The Way
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DEO
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https://www.nasdaq.com/articles/diageo-stock-up-50-more-gains-on-the-way-2020-11-19
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nan
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nan
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We believe that Diageo stock (NYSE: DEO) may be a decent opportunity at the present time. DEO stock trades at close to $155 currently and is, in fact, down 8% so far this year (from around $168 at the beginning of 2020). It traded at $162 in February 2020 – just before the coronavirus pandemic hit the world – and is currently still 4.4% below that level as well. DEO stock has recovered over 51% of its value from its March level of $103, compared to the S&P 500 which gained over 60% from its March lows. However, with the lockdowns being gradually lifted and an expected turnaround in business prospects in FY2021, DEO stock has a 7% potential upside as it will likely go back to its pre-Covid levels. Our conclusion is based on our comparative analysis of Diageo stock performance during the current financial crisis with that during the 2008 recession in our interactive dashboard.
2020 Coronavirus Crisis
Timeline of 2020 Crisis So Far:
12/12/2019: Coronavirus case
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We believe that Diageo stock (NYSE: DEO) may be a decent opportunity at the present time. However, with the lockdowns being gradually lifted and an expected turnaround in business prospects in FY2021, DEO stock has a 7% potential upside as it will likely go back to its pre-Covid levels. DEO stock trades at close to $155 currently and is, in fact, down 8% so far this year (from around $168 at the beginning of 2020).
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We believe that Diageo stock (NYSE: DEO) may be a decent opportunity at the present time. DEO stock trades at close to $155 currently and is, in fact, down 8% so far this year (from around $168 at the beginning of 2020). DEO stock has recovered over 51% of its value from its March level of $103, compared to the S&P 500 which gained over 60% from its March lows.
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DEO stock has recovered over 51% of its value from its March level of $103, compared to the S&P 500 which gained over 60% from its March lows. However, with the lockdowns being gradually lifted and an expected turnaround in business prospects in FY2021, DEO stock has a 7% potential upside as it will likely go back to its pre-Covid levels. We believe that Diageo stock (NYSE: DEO) may be a decent opportunity at the present time.
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We believe that Diageo stock (NYSE: DEO) may be a decent opportunity at the present time. DEO stock trades at close to $155 currently and is, in fact, down 8% so far this year (from around $168 at the beginning of 2020). DEO stock has recovered over 51% of its value from its March level of $103, compared to the S&P 500 which gained over 60% from its March lows.
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6b55dd4c-9859-41a6-a477-06697febdf17
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727685.0
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2020-11-16 00:00:00 UTC
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Anheuser-Busch InBev Stock Up 90%; What’s Next?
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DEO
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https://www.nasdaq.com/articles/anheuser-busch-inbev-stock-up-90-whats-next-2020-11-16
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nan
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nan
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After an impressive rise of 90% since its March lows of this year, at the current price of $67 per share, Anheuser-Busch InBev stock (NYSE: BUD) looks fairly valued. BUD’s stock has rallied from $35 to $67 off the recent bottom compared to the S&P 500 which increased 59% during the same period. The stock was able to beat the broader market over the last 8 months, with the US government announcing a string of measures along with stimulus packages announced in other economies to keep businesses afloat. As the global economy opens up and supply constraints ease, volume sales are likely to rise in the coming quarters. Though the stock is still close to 20% below its December 2019 level, it is unlikely to see any major movement anytime soon due to slowdown in the beer segment even before the pandemic. BUD’s stock is expected to hover around its current level of $67 in the near-term. Our dashboard What Factors Drove -40% Change In Anheuser-Busch InBev Stock Between 2017 And Now? provides the key numbers behind our thinking.
Some of the drop in stock price between 2017-2019 is justified by the 4.6% decline in revenues during this period. BUD’s revenues decreased from $54.9 billion in 2017 to $52.3 billion in 2019 mainly due to changing consumer preferences, as health conscious consumers are moving away from beer. Margins remained very volatile during those two years due to heavy derivative losses. As revenues declined, the P/S multiple dropped from 4x in 2017 to about 3x at the end of 2019. The multiple crashed to below 1.5x in early 2020 following the outbreak of the coronavirus pandemic which led to shutting down of pubs and restaurants. The P/S multiple recovered over the last few months after stimulus measures were announced and currently stands at about 2.6x, still lower than its 2019 level. We believe the multiple is likely to remain around the current level in the near-term.
Where is the stock headed?
The global spread of coronavirus led to lockdown in various cities across the globe, which affected industrial and economic activity. This took a toll on consumption and consumer spending, which was reflected in BUD’s Q2 2020 results where its revenue declined by 18% y-o-y. The widespread closing of restaurants and bars, plus the cancellation of sporting events, concerts, and nearly every other form of public entertainment across key markets led to a plunge in beer sales, thus affecting the stock price adversely.
However, there have been signs of lifting of the global lockdowns over recent months. As the global economy opens up and lockdowns are lifted in phases, consumer demand is slowly picking up. Any further recovery and its timing hinge on the broader containment of the coronavirus spread. Our dashboard Trends In U.S. Covid-19 Cases provides an overview of how the pandemic has been spreading in the U.S. and contrasts with trends in Brazil and Russia. With the lifting of lockdown, reduction of supply bottlenecks is expected to help a company like BUD which has a global supply network to increase its volume. This was partially reflected in the company’s Q3 results, where BUD’s volume and revenues saw a y-o-y increase by 1.9% and 4%, respectively. The company is likely to see healthy revenue growth in FY2021 on a lower base of FY2020.
With investors’ focus having shifted to 2021, the stock has seen healthy growth over recent months in anticipation of strong revenue and margin growth. However, the recent surge in Covid positive cases in the US and Europe could prove to be an impediment in this growth path. If the rise in cases warrant a re-imposition of lockdowns, then the stock could see a sharp drop. Even in the absence of another lockdown, a major rise in the stock is unlikely after having increased more than 90% over recent months. BUD’s stock is likely to remain around its current level in the near term.
What if you’re looking for a more balanced portfolio instead? Here’s a high quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
See all Trefis Price Estimates and Download Trefis Data here
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After an impressive rise of 90% since its March lows of this year, at the current price of $67 per share, Anheuser-Busch InBev stock (NYSE: BUD) looks fairly valued. Though the stock is still close to 20% below its December 2019 level, it is unlikely to see any major movement anytime soon due to slowdown in the beer segment even before the pandemic. The widespread closing of restaurants and bars, plus the cancellation of sporting events, concerts, and nearly every other form of public entertainment across key markets led to a plunge in beer sales, thus affecting the stock price adversely.
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After an impressive rise of 90% since its March lows of this year, at the current price of $67 per share, Anheuser-Busch InBev stock (NYSE: BUD) looks fairly valued. With investors’ focus having shifted to 2021, the stock has seen healthy growth over recent months in anticipation of strong revenue and margin growth. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
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After an impressive rise of 90% since its March lows of this year, at the current price of $67 per share, Anheuser-Busch InBev stock (NYSE: BUD) looks fairly valued. The widespread closing of restaurants and bars, plus the cancellation of sporting events, concerts, and nearly every other form of public entertainment across key markets led to a plunge in beer sales, thus affecting the stock price adversely. With investors’ focus having shifted to 2021, the stock has seen healthy growth over recent months in anticipation of strong revenue and margin growth.
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We believe the multiple is likely to remain around the current level in the near-term. With the lifting of lockdown, reduction of supply bottlenecks is expected to help a company like BUD which has a global supply network to increase its volume. Even in the absence of another lockdown, a major rise in the stock is unlikely after having increased more than 90% over recent months.
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517d6595-92c4-44b3-8929-91880c85f12d
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727686.0
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2020-11-05 00:00:00 UTC
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Bullish Two Hundred Day Moving Average Cross - DEO
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DEO
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https://www.nasdaq.com/articles/bullish-two-hundred-day-moving-average-cross-deo-2020-11-05
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nan
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nan
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In trading on Thursday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $139.18, changing hands as high as $140.35 per share. Diageo plc shares are currently trading up about 2.2% 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 $100.5179 per share, with $171.29 as the 52 week high point — that compares with a last trade of $139.71.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $139.18, changing hands as high as $140.35 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 $100.5179 per share, with $171.29 as the 52 week high point — that compares with a last trade of $139.71. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $139.18, changing hands as high as $140.35 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 $100.5179 per share, with $171.29 as the 52 week high point — that compares with a last trade of $139.71. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $139.18, changing hands as high as $140.35 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 $100.5179 per share, with $171.29 as the 52 week high point — that compares with a last trade of $139.71. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $139.18, changing hands as high as $140.35 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 $100.5179 per share, with $171.29 as the 52 week high point — that compares with a last trade of $139.71. Diageo plc shares are currently trading up about 2.2% on the day.
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25050d5d-261a-4dd4-bda3-adf826e1d315
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727687.0
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2020-10-27 00:00:00 UTC
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A Look at Intel, Netflix, Tesla, and More
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DEO
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https://www.nasdaq.com/articles/a-look-at-intel-netflix-tesla-and-more-2020-10-27
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nan
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nan
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In this episode of Motley Fool Money, Chris Hill chats with Motley Fool analysts Jason Moser and Ron Gross about the latest headlines and earning reports from Wall Street. They talk about dividends. They discuss why two big tech stocks are down, the slowdown in subscriber growth numbers at a popular streaming service, and the shutdown of Quibi. They also bring updates on automobile, airline, restaurant, consumer goods, and food and beverage stocks. They share some stocks to put on your watch list and much more.
Also, Chris chats with Nell Minow, a film critic known as The Movie Mom, about the state of the entertainment industry and updates on TV and movie production pipelines.
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.
10 stocks we like better than Intel
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Intel 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 20, 2020
This video was recorded on October 23, 2020.
Chris Hill: We begin with a couple big names in technology both down around 10% this week. Intel's (NASDAQ: INTC) data center business was weak in the third quarter and that brought the stock down on Friday. You tell me, Jason, how bad is this?
Jason Moser: Well, I mean, it could be worse, it's obviously not been a very good year to-date for Intel. Their transition from being a PC-based company to becoming a data-centric company is certainly presenting its fair share of challenges. Now with that said, as much pessimism that is out there right now, there could actually be a value play developing here for you value investors out there. So, Ron, take note.
Ron Gross: [laughs] I got my pen.
Moser: As you mentioned, Chris, data-centric revenue $8.5 billion; that was down 10% from a year ago. And they attributed a lot of that to COVID-related weaknesses. PC-centric revenue was basically flat; nothing really to write home about. But the thing is, if you go back just a quarter ago to July, they recorded 34% growth in the data-centric side of the business, PC-centric grew 7%. So, clearly, they're running into some headwinds there. They're seeing some weakness in the Internet of Things department there. Revenue fell 33%, operating income down 80%. Again, they're attributing all of this related to COVID-related demand. And there's something to that, but remember they also remain behind the pack on that 7nm chip, pushing that farther and farther out. And so, I think that you've got this sort of confluence of events here where there's potentially going to be more consolidation in the space. You've got Nvidia and Arm merging. Rumors floating around of a potential tie between AMD and Xilinx. They're going through a rough stretch, but again, I think this is temporary, it seems like a timing thing. It's a big company with a lot of capabilities, so they're down but I wouldn't count them out yet.
Hill: Shares of Netflix (NASDAQ: NFLX) are up more than 200% over the past year, but they gave some of that back this week. Third quarter profits came in lower than expected and subscriber growth for Netflix was the weakest in four years. Not great, Ron, but they seem like they're in better shape than Intel; and yes, I get that they're completely different businesses.
Gross: [laughs] Completely different. For Netflix, it's all about that ability to maintain growth, especially when you're trading at 55X earnings. So, they ended just 2.2 million new subscribers in the third quarter; that's down 80% from the second quarter. Now, I don't think people should be surprised, because they told investors that the COVID boost of the second quarter was not going to follow through. So, the fact that it was down is not surprising. Revenue is still up 23%. Earnings per share still up 18%. The company continues to do really well, both internationally and domestically. Restarting content production is going to kind of ramp up the cost, that's going to bite into cash flow, free cash flow could be negative actually, as things start to ramp up but it's essential to ramp those up, because they've got to continue to produce original pieces of content to keep people coming in the doors. Pricing power still remains, it's still a relatively good bargain in my opinion, but competition is severe as more and more streaming services continue to, kind of, gain share, including folks like Disney+.
So, I think Netflix is fine, I don't think it should have been a surprise that we saw subscriber growth come down. The stock is still up [laughs] 50% this year alone. So, I think everything remains on track.
Hill: I agree with you about their pricing power, but you don't think they're thinking about raising that subscription price anytime soon, do you?
Gross: I think that would be a mistake in this current environment, certainly there will be future price increases down the road. I wouldn't expect to see it, let's call it, within a year or even perhaps even longer. I think they'll sit at this price for now, but I do think, if they can continue to produce compelling content that folks really want to see, like, Stranger Things or whatever your favorite show is, that the pricing power does still exist.
Hill: For the fifth quarter in a row Tesla (NASDAQ: TSLA) reported a profit, third quarter revenue came in at $8.8 billion, higher than Wall Street was expecting. And Jason, once again, no real fireworks on the conference call from Elon Musk.
Moser: [laughs] No, but I'll tell you, Tesla and politics, man! This stuff, it gets people worked up, doesn't it? The core business of Tesla, they sell cars, it really is pretty simple, yet the drama really always takes center stage in regard to what Elon Musk may have said or promises [laughs] he may have made. I think the question for investors that comes out of this quarter, and I don't have a dog in this hunt, so to speak, but I think the question really, kind of, is revolving around regulatory credits and how important they are for this company. Because as they chalk up these profitable quarters, it's important to note that there is a regulatory credit aspect, the dynamic to that profitability, so that shouldn't be a surprise. I mean, that's how you incentivize the push, this big push toward electric vehicles, right? They're just playing with the rules that they've been given.
But if you look at the numbers, they've taken advantage of about $1.2 billion in credits this year versus about $460 million at the same time a year ago. Again, I don't hold that against them, it just is what it is, so to speak. But if you look at the numbers, they produced just over 145,000 vehicles, delivered nearly a 140,000. They remain steadfast in their belief they can hit that 500,000 vehicle target by the end of the year, delivering 500,000 vehicles by the end of the year, that's a stretch goal for sure. I mean, they're going to have to bring about 180,000 deliveries this quarter, this final quarter of the year. But we know that Musk likes to aim high, and I certainly don't fault him for that, they're in good shape from a capital position right now with that recent raise. Balance sheet now has $14.5 billion or so. So, I think all in all it's a company that just keeps on doing the right things and it's working out for them.
Hill: Shares of Southwest Airlines (NYSE: LUV) up this week, despite the fact that its loss in the third quarter was the biggest loss Southwest has ever posted. Ron, why the optimism? [laughs]
Gross: [laughs] You know, better than expected results, I would say, hopes for government stimulus, and perhaps some light at the end of the tunnel, if we look at maybe a year, [laughs] maybe even two years. But this quarter, obviously, it just remains brutal, kind of, across the whole sector. Revenue down 68%; operating revenue per average seat miles, [Revenue per Available Seat Mile] (sic) which is a common metric in the industry, RASM, often discussed, down 53%. So, you know, they lost over $1 billion, around $1.2 billion. Not much they really can do here, but they are taking some steps. They're seeing some modest improvement in leisure passenger traffic.
Business, I think, is going to take longer. We saw United, American make comments about how business travel is going to take longer to come back. Everything is going to come back rather slowly. CEO Gary Kelly of Southwest said that until there's a widely available vaccine, they expect passenger traffic and booking trends to "remain fragile." [laughs] So, there is an operating metric for you, remaining fragile.
They got their daily cash burn down to $12 million; I can't believe we're saying, you know, that's a pretty good situation, only burning $12 million a day. They expect that to continue into October. Listen, I think additional government stimulus would really help bridge the gap from here to where we hope they eventually will get. I assume we'll see something, timing, who knows. But you know, they're making moves, they're cutting costs, they're cutting, unfortunately, employees and furloughing folks when they need to. They're entering new markets. They entered nine new airports in recent months, including Miami, Chicago, O'Hare, Houston.
Balance sheet is fine, $15 billion-ish in cash, only $10 billion or $11 billion in debt. I'm not worried about them with respect to something like a Chapter 11, but it's going to take a while for business to come back for sure.
Hill: Well, and one more silver lining, not just for Southwest, but all the airlines is that, for all of the spread of the coronavirus that we've seen, the airlines have done well in that regard. We're seeing relatively few cases connected to air travel.
Gross: Agreed. The movement of the air, the filtration systems are quite good. The mandating of masks certainly helps. We see Southwest just announced that they will go back to selling middle seats starting on December 1st. I think that's largely a result of what you just said that it seems that air passenger travel is relatively safe and they feel comfortable that they can do that without harming passengers.
Hill: Shares of Chipotle (NYSE: CMG) went down this week, despite a third quarter that most restaurants would kill for. Profits and revenue came in higher than expected, digital sales tripled, Jason, come on!
Moser: This is a strong quarter. I mean, think about the story, though. This is a company, this is a restaurant that went from, they couldn't keep from getting people sick in the good times, to a restaurant that is really one of the best operators in the space during a pandemic. [laughs] It's been a phenomenal, phenomenal turn of events. So, hats off to CEO Brian Niccol, because I think he's really done a wonderful job with the business. I think the selling really comes on valuation more than anything else, and one of the concerns in regard to delivery.
The stock itself is trading over [laughs] 120X full-year earnings estimates. It's still a restaurant, they're just slinging burritos, Chris, it's not rocket science; we got to just keep that in mind. I'm a shareholder, so I'm happy about that.
You mentioned digital sales, revenue was up 14%; digital sales were up 202%, accounting for almost half of total sales for the quarter. They have 17 million loyalty program members now versus 7 million a year ago. And to that point on delivery, it is a really big part of this business now. They mentioned it 45 times on theearnings callthis week. And the problem is that it's the delivery service revenue in what they are collecting versus what they're having to shell out. And they mentioned it. They said the amount that we remit to our delivery partner for sales through our app and website is higher than what we collect from customers. So, it's good in that it's helping drive that topline growth and selling food, but it is coming in a little bit of a cost that's crimping margins.
With that said, remember that with 2021 just around the corner here, you're looking at around $10 in earnings estimates for this year, that number is projected to double for 2021. So, assuming we get through this pandemic and things look better in 2021, there could be some pent-up demand, there's some coiled-spring earnings power coming this way for Chipotle.
Gross: More importantly, have they gotten their queso act together yet finally, is the Queso Blanco here to stay?
Moser: [laughs] I can't say that I've never tried it, Ron, I'm sorry to admit, but the guacamole is just so good; I always have to get the guacamole.
Hill: Procter & Gamble (NYSE: PG) sales in the first quarter rose 9%. The company raised revenue guidance for the full fiscal year, and shares of the household goods giant hitting an all-time high this week, Ron.
Gross: Definitely one of those companies that have been the beneficiary of COVID. You know, it's hard to say that, [laughs] but you know, the stay at home, the be safe, all of us hunkering down, really, is just accruing to, both, their top- and bottom-line. As you said, sales are up 9%. That's pretty strong for a company like Procter & Gamble. Strong demand for home, health hygiene products, not surprising, that's where I would have expected it to come from. Homecare was their strongest segment, up 14%; that's a very big number. Baby and family care, I guess, people are neglecting their babies nowadays, that was the weakest segment, only up 3%, but still up. So, certainly no signs of actual weakness to any major extent.
Gross margins and operating margins both widened, so that really gives you a boost on the bottom-line. So, earnings per share were up 20%. Raised outlook. Sales growth expected to be 3% to 4%. Earnings growth of 4% to 9%. They returned $4 billion to shareholders; $2 billion of dividend payments, $2 billion in common stock repurchases. Things are going really well for Procter & Gamble. I don't think this continues into perpetuity, this is not a new Procter & Gamble, but they'll continue to benefit from the pandemic for a while.
Hill: Well, we were talking earlier in the show about Netflix having pricing power, and you know, Procter & Gamble, they sell basic household items, they've got pricing power too and it showed up in this quarter.
Gross: Yeah, for sure. Especially for things that people are clamoring for, which are those hygiene products, those household products, there is some room there to make a few more pennies here-and-there, and that's why you see the margins improve, which is profit that falls right down to the bottom-line.
Hill: Shares of Boston Beer (NYSE: SAM) also hitting a new all-time high this week. Strong third quarter results fueled, once again, Jason, by sales of hard seltzer. We've seen this for a while now, the beer sales, the Samuel Adams sales falling a little bit, but the hard seltzer really making up for it.
Gross: Yeah, you're right. I mean, talk about a business that's really flourishing during what's a tough time for a lot of other businesses. Boston Beer is really, really doing well here. And it's in the face of, as you noted, a beer business that's really continuing to suffer. And I actually don't know how relevant beer is going to be to this company five years from now, which is ironic given its name, of course, but I don't think that ultimately is really a problem. I mean, this is just turning into a beverage company at the end of the day.
Depletions up 36%. Remember that sales from distributors to retailers. You know, it wasn't all that long ago where depletions, we were talking about negative numbers. So, they really turned this thing around. And part of that is due to that Dogfish Head acquisition; that's helpful. A lot of it, though, has to do with, like you mentioned, the seltzer and the other beverages that they're rolling out. And talking about other beverages, they're bringing some new ideas to the table in 2021, things like Truly Iced Tea Hard Seltzer; Samuel Adams' Just The Haze, which is going to be a nonalcoholic beer; Dogfish Head's scratch-made canned cocktails; and Angry Orchard hard fruit cider. So, as you can see there, not a whole lot of beer, but a lot of other stuff, and it's really helping this business grow.
Now, I don't know that I'd put the stock at the top of my list given the valuation, it's still trading around 65X trailing earnings now, 72X full-year estimates, but it's a wonderful business. And for those who own the stock, I think it's a wonderful one to keep holding, probably not a buy at this price today, but a good business nonetheless.
Hill: Is there any risks there of expanding their brand portfolio too quickly?
Moser: Yeah, I think that definitely that risk definitely exists. I mean, you've always got to be aware of execution risk. And you've seen other larger players in the space, whether it's Diageo or Constellation, they get to a point where they get bloated and they start paring back that portfolio, selling off some brands, so there is something to be said for taking it slow in that regard.
Hill: Speaking of getting rid of brands, mixed results for Coca-Cola's (NYSE: KO) third quarter. Profits were higher than expected, but overall revenue dropped 9%. Ron, I feel like with the metrics that Coca-Cola is putting up, they're seeing improvement, but they're not out of the woods yet.
Gross: Perfectly stated. These are better than expected results, but they're still not great, the partial reopening of theaters and restaurants certainly has helped them, because that's a big part of their business. But net revenues are down 9%. Global unit case volume trends are improving as things start to open, but they are still down 4%, so still ways to go there. Elevated levels of sales in the at-home channel more than offset by the pressure in the away-from-home channels, as they call.
Coke generates about half of its revenue from selling its soft drinks at public venues, so when things are closed, there's nothing they can do about it except absorb the pain. They saw some margin improvement. They did a nice job controlling costs, which is definitely what you want to see when times are tough. So, adjusted earnings down only 2%, I say only still down, but not terrible. Management thinks increasing COVID cases, Winter months could actually lead to a further slowing, so we're not out of the woods, and in fact the woods may be getting a little darker again at some point.
Interestingly, as you said, they're going to cut a number of brands. They're going to cut their brands by half to about 200, so they're going to cut about 200, they'll be left with about 200. They're going to phase out some of your favorites, Jason, I know, Zico coconut water, and we talked about Tab last week. Diet Coke Feisty Cherry, how about that, I don't know, I'm not a fan of that, but I think that's smart; they got bloated, they have to rationalize their brands, definitely too many of them, focus on what's working and get rid of what's not.
Hill: All right. Ron Gross, Jason Moser, guys, we'll see you later in the show.
Nell Minow is the Vice Chair of ValueEdge Advisors, she's also the film critic known as The Movie Mom. She joins me now. Nell, thanks for being here.
Nell Minow: Always a pleasure.
Hill: I want to start with essentially the industry that is corporate governance, because during the pandemic, we've seen a lot of industries undergo a lot of change, some of it is good. Certainly, workplace collaboration businesses have been thriving during the pandemic. At the other end of the spectrum, the restaurant industry is really hurting. Has corporate governance improved during the pandemic, has it stayed the same, or has it gotten worse?
Minow: It's continues to be bad, but it's bad in slightly different ways than it had been. You know, when we had the big market correction in March, I started getting a flood of emails saying, you know, should we reprice options, what are we going to do to protect our executives? And of course, my view is, we're not in business to protect them, we're in business for them to have their interests aligned with those of investors. And that has not necessarily been the case. So, some companies have been responsive, but not very effectively.
Companies have tweeted, we talked about this before, they tweeted about how much they support Black Lives Matter, and people have tweeted back to them, could we see a picture of your Board of Directors? You know, what is actually behind that? While there are some business leaders that are calling for tying CEO pay to Paris Agreement climate goals or to diversity, I think you're going to hear a lot more discussion of that as we start to get, as I've said before, not back to normal, but back to better. So, you're going to see investors expecting a lot of changes.
And in the world of government regulation, corporate governance has gotten much, much worse with the shoving out the door of two rules at the SEC and two at the Labor Department that have been on the wish list of the Chamber of Commerce and the Business Roundtable for a long time, the shareholders are very unhappy about.
Hill: Let's move to the movie industry, and specifically, the movie theaters. We've seen, over the past six months, the biggest theater chains in the world, AMC (NYSE: AMC), Cineworld, Cinemark, all of their stocks are down big for all of the obvious reasons. How big is the threat right now to the movie theater industry?
Minow: It's a pretty existential threat. The best thing that I can say about the movie industry is that, while we certainly have enjoyed a [laughs] wonderful world of movies being streamed straight to us, most recently Pixar announced that their big new movie Soul is going to come straight to Disney+. The fact is that there is a very, very solid number of movie ticket buyers, primarily ages 15 to 30, who are going to continue to go to theaters, they're not going to be happy staying at home; it is a part of their social life. And so, I think that if the movie theaters can just hold on for a little bit longer, their ticket buyers will be back.
Hill: What should people who enjoy movies expect in terms of the next couple of years? I'm curious about the production pipeline, because a bunch of big action movies that were going to get released this year have been pushed into 2021. A lot of other movies have shut down production. Should we just gear ourselves for a lot of animated movies for the next couple of years, because you can actually produce those remotely?
Minow: ... But not quickly; [laughs] animated movies take a long time, so, no. What I can tell you is that my daughter is a costume designer in Hollywood. She is back in business. She looks like she's wearing a hazmat suit, because, you know, costume designers are very up close and personal with the stars, measuring them. And so, she's got a face shield and gloves. And that complicates her job very much. My future son-in-law is a screenwriter, his most recent film finished filming already and is coming to television. So, the industry is definitely continuing. You will not see the great, big action movies going into production for a little while and you won't see a lot of kissing scenes, but you will certainly continue to see movies.
Hill: [laughs] Wow! Romance is going to really take a hit over the next couple of years on the big screen.
Minow: Yeah. Did you hear that some of the soap operas are using mannequins? [laughs]
Hill: That's not true; is that true?
Minow: Yes, it is.
Hill: Argh! Speaking of action movies. I mean, to the extent that there is a silver lining of those movies being pushed into 2021, it could be that, as we see this time of year, the movies that are gunning for Oscars maybe get a little bit more attention, because they don't have to compete with the latest James Bond movie or the latest Marvel movie, is that going to be the case, and if so, what are a couple of movies we should be on the lookout for over the next two to three months?
Minow: You know, I'm a member of the Critics' Choice Association, and I'm not sure if it was the smartest idea in the world, but we announced this year we're creating a new category so that we can give an award, a special award to superhero movies, but we just won't have anything [laughs] to pick from this year. Well, I did mention Soul from Pixar, I think that's going to be very big. The movie that the inside buzz says is absolutely a lock for some nominations is Nomadland which has been at some festivals. And, of course, festivals are continuing, they're just virtual; I've been to several myself. So, Nomadland, directed by Chloe Zhao and starring Frances McDormand, who is currently the frontrunner for Best Actress.
The Trial of the Chicago 7, which I think is a great movie, is on Netflix. People are talking about Michelle Pfeiffer as a nominee for French Exit. And Viola Davis for Ma Rainey's Black Bottom. You might see Chadwick Boseman get a sentimental, and I'm sure very well deserved, because he's always wonderful, a nomination for that one as well. George Clooney has got a movie coming out called The Midnight Sky, he's always interesting as a director. And then Regina King, Oscar winning actress, her first movie as a director, One Night in Miami, is coming out.
So, personally, I would like to see the new David Copperfield get some awards, because I absolutely loved it, and I think they really blew it in the way that they released it, not putting it into streaming quickly enough.
Hill: More immediately, we've got Halloween coming around the corner. Any scary movie recommendations? You know, I don't even know if I know this about you, are you a fan of the horror genre?
Minow: [laughs] I'm not a fan of the horror genre. I'm such a sissy, I always think that Lassie is not going to get Timmy out of the well, but I do like some kinds of movies. I like psychological thrillers. And there's a small independent film that I always recommend, because I think it was very well -- if you like, sort of, Twilight Zone type scary, then I recommend it, it's called Coherence. My daughter, as I said, is a costume designer, and her most recent project is coming out next week. It is the remake/sequel to the legendary movie, The Craft, about the teenage girl witches. And that's got a female writer-director I like very much, so I'm looking forward to that.
And then there are a couple of good ones for kids that are new, A Babysitter's Guide to Monster Hunting on Netflix and The Witches remake on HBO Max, those are a lot of fun for kids.
Hill: Like you, I'm not a huge fan of the genre, although from a business standpoint, I think the horror movie industry is fascinating, in part because it is a profitable way to make movies, there are a lot of directors who get their first shot at making a movie by making a horror film, including, by the way, Steven Spielberg. So, it's one of those things that I find interesting from a business perspective, in part because these are -- look, every movie studio wants their movie to be a hit in whatever is the home country, but they want to be able to export it, and horror is one of those things that seems to travel pretty well.
Minow: Horror travels very, very well, humor does not, because that's very culturally based and with a lot of -- it's very specific cultural references to make something funny. So, action and horror travel extremely well. You do not need to speak English or understand, you know, the U.S. constitution to understand horror. And so, the ROI [Return on Investment] on horror movies is excellent. They don't cost much to make and they do make a lot of money.
Hill: One more reason to be on Twitter, so you can follow Nell Minow, get her thoughts on business, corporate governance, movies and a lot more.
Guys, a couple of more news items before we get to radar stocks. Microsoft, McDonald's, Lennar, Starbucks, and Conagra, are just a few of the companies that have increased their dividends recently. Ron, six months ago, we saw dividends being cut, being suspended, I don't want to get overly optimistic, but should we see this reversal of this trend as a good thing?
Gross: It's a good thing in selected areas. We're still seeing weakness in dividends, as you said, either suspensions or cuts in industries where that's appropriate. And then the airlines, for example, would be a good example, but there are companies that are doing quite well or they think they will be doing quite well this time next year, and they can, kind of, see that light at the end of the tunnel. So, even though business might be weak, like Starbucks isn't, you know, gangbusters right now, because not much is, they felt comfortable to raise the dividend. McDonald's feels comfortable, Microsoft feels comfortable. Some are 2% or 3%, some are 5%, 6%, 7%, 8%, which is an even bigger indication that things are going well.
I will point out that when things are tough, you kind of do want management to make those tough decisions and cut dividends and stop share buybacks, if it's necessary. You want to do what's necessary for the business, even though it's painful, especially if you're an investor who's looking for that income, but you do want management to make those really important capital allocation decisions. And then when things are better, we see the increases come back.
Hill: Quibi, the short-video streaming service that launched in April is being shut down. Quibi was started two years ago by Jeffrey Katzenberg and Meg Whitman. They raised $1.75 billion. And amazingly Jason, the money's all gone.
Moser: Chris, I mean, that was an amazing, amazing story from so many different angles. And it's ultimately a shame, I understand there are some people out of work for this. Yeah, I don't think it really comes as a surprise that this was something that didn't make it. I think it all really stemmed from the very beginning, I don't think anyone really knew what Quibi was supposed to be. It didn't have a firm identity really, it was either social, or it was streaming or social streaming, and it was really difficult to figure out what kind of void it was trying to fill. So, I think the lesson here, honestly is, when you're going to jump into a crowded space -- and let's be clear, video streaming is a [laughs] very, very crowded space -- it is imperative that you differentiate yourself, you innovate, you do something different. I mean, there is only so much room for imitators. And I think that this space is now so mature, anyone jumping in there and thinking that they're just going to do something similar to what everybody else is doing, it's going to be a very short-lived stretch for them in that space.
Hill: I really think this is going to be one of those things that gets studied in business schools. Just the amount of money they raised, the speed with which they burned through all of it, it's going to be a cautionary tale for a long time. [laughs]
Gross: I don't know if it's all gone, I think there might be $350 million left for them to play with, but you know, then you've got closing costs and liquidation costs and who knows what will happen. But I think investors will get a tiny bit of their money back, but it's a cautionary tale.
Moser: I stand by Quibi as a verb. I mean, I think we can use that going forward as like, you know, when you really just mess something up, like, you make a bad decision or you just really mess something up, oh, man! You really Quibied that one. I think that in certain situations it works.
Hill: Shares of fast food chain Jack in the Box (NASDAQ: JACK) up nearly 10% in the past month, and I think I know why, gents, enthusiasm for the latest promotional item from Jack in the Box, a fried chicken-scented facemask. This has been created to help promote a new plant-based chicken sandwich that the company is testing, not to be confused with the bacon-scented face mask that Hormel produced. Ron, I can't think of a Jack in the Box that's close by me, which is unfortunate, because I think I'd try this. [laughs]
Gross: This is the Jack in the Box in Belgium by any case. [laughs] Because Belgium is doing some wacky things lately. This is, I don't know, decline of Western civilization, even a bacon one, like you said, that Hormel has, would be good for like a minute, but I think it would get pretty exhausting after that, it just seems a little silly to me.
Hill: The one I'm hoping for, Cinnabon.
Moser: Oh! See, I'm right there. The one I'd like to see, if Starbucks could come out with one that smells like a freshly opened bag of coffee beans, I would be onboard with that.
Hill: Let's go to our man behind the glass, Dan Boyd. Dan, any of these masks of interest to you?
Dan Boyd: No, Chris. The only way I can see this happening at Jack in the Box is somebody got a bunch of masks and then, like, left them in the restaurant overnight or something, came back and put one on, it was like, oh! This mask smells like chicken. Wait, this is great, [laughs] this is a great idea, let me tell the boss. No, this is ridiculous. I'm sorry, I can't get behind this at all.
Gross: It's actually not the mask that smells, there's a little insert, I believe, that has the scent. So, if you want to remove the insert, you get yourself a Jack in the Box mask free of chicken.
Moser: But did you read at the bottom of that little review, there's the slight tinge of an alcohol smell to go with the chicken. I mean, it just sounds like a headache waiting to happen.
Gross: Oh, it's horrible.
Hill: Let's get to the stocks on our radar. Dan is going to hit you with a question. Jason, you're up first, what are you looking at?
Moser: Yeah, a company I've mentioned here before on the show. Ameris Bancorp (NASDAQ: ABCB), ticker ABCB. Earnings just came out. The company reported a very strong quarter. Adjusted earnings per share of $1.69, that was versus $0.98 a year ago. So, very healthy growth in the mortgage side of the business; no surprise there. Efficiency ratio below 50% now, just over 47%. Net interest margin pressure continues, but every bank is pretty much in the same boat where that's concerned. And they continue to maintain as healthy a number there as they can.
Total assets are now about $20 billion, deposits up now to $16 billion. They've really improved the deposit mix, non-interest bearing deposits now represent almost 37% of total deposits. That is up from 29%, 30% a year ago, which is just tremendous. I mean, that really is a good source of profitability for these banks, especially in difficult times, because they don't have to shell out as much for those deposits that they maintain.
So, the big question really remains on the acquisition front. They've talked about some pent-up activity they see coming in M&A here as the pandemic, you know, cycles through, so that'll be something to keep an eye on as far as the banking sector writ large, but another strong quarter from a bank that I enjoy following and still own shares in, personally.
Hill: Dan, question about Ameris Bancorp?
Boyd: Absolutely, Chris. Jason, with mortgages on the rise and housing supply, kind of, staying the same, are we going to run out of houses for banks like this to continue financing in the near future?
Moser: Well, we're not going to run out of houses, because thankfully, we have lots of homebuilders that'll help that. But you are right, the supply is getting a little bit crimped, we're seeing a lot of valuations go up because the demand is there, so it's a nice time to be a homeowner and a tricky time if you're in the market to buy a new house.
Hill: Ron Gross, what are you looking at?
Gross: Some interesting developments this week with CRISPR Therapeutics (NASDAQ: CRSP), CRSP, that sent the stock down rather sharply. One of the three or four early stage biotech companies focused on the CRISPR/Cas9 gene editing technology. The good news is that a treatment for a drug under development led to the complete remission for two out of the four patients who received it; this is for a cancer trial. The bad and very sad news is that one patient who received the highest dosage did die, and died from complications that are sometimes seen from cancer therapies. So, more investigation clearly needs to be done there. I don't think this throws off the thesis or puts the company in a bad light, I think things remain on track. But again, it's a very early stage company with some significant technology and very volatile, so buyer beware.
Hill: Dan?
Boyd: Ron, CRISPR gene editing, let's go, man! What genes are you editing first for yourself?
Gross: I would love some blue eyes if I could get those. [laughs]
Hill: What do you want to add to your watchlist, Dan?
Boyd: You know, Chris, I'm always up on medical technology, I think it's only going to get more and more important as time goes on. So, I'm with Ron this time around for CRISPR Therapeutics.
Hill: All right. Ron Gross, Jason Moser, guys, thanks for being here.
Gross: Thanks, Chris.
Moser: Thank you.
Hill: That's going to do it for this week's Motley Fool Money. The show is mixed by Dan Boyd, our Producer is Mac Greer, I'm Chris Hill, thanks for listening, we'll see you next time.
Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Chris Hill owns shares of Starbucks and Walt Disney. Jason Moser owns shares of Ameris Bancorp, Chipotle Mexican Grill, and Starbucks. Ron Gross owns shares of CRISPR Therapeutics, Microsoft, Starbucks, and Walt Disney. The Motley Fool owns shares of and recommends Boston Beer, Chipotle Mexican Grill, Constellation Brands, CRISPR Therapeutics, Microsoft, Netflix, NVIDIA, Starbucks, Tesla, Twitter, and Walt Disney. The Motley Fool recommends Ameris Bancorp, Diageo, Intel, and Southwest Airlines and recommends the following options: long January 2021 $60 calls on Walt Disney, short November 2020 $85 calls on Starbucks, short January 2021 $115 calls on Microsoft, and long January 2021 $85 calls on Microsoft. 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.
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A full transcript follows the video. See the 10 stocks *Stock Advisor returns as of October 20, 2020 This video was recorded on October 23, 2020. Hill: Quibi, the short-video streaming service that launched in April is being shut down.
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A full transcript follows the video. See the 10 stocks *Stock Advisor returns as of October 20, 2020 This video was recorded on October 23, 2020. Hill: Quibi, the short-video streaming service that launched in April is being shut down.
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A full transcript follows the video. See the 10 stocks *Stock Advisor returns as of October 20, 2020 This video was recorded on October 23, 2020. Hill: Quibi, the short-video streaming service that launched in April is being shut down.
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A full transcript follows the video. See the 10 stocks *Stock Advisor returns as of October 20, 2020 This video was recorded on October 23, 2020. Hill: Quibi, the short-video streaming service that launched in April is being shut down.
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0af42aab-986d-4a24-9904-a480c1d4bf71
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727688.0
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2020-10-15 00:00:00 UTC
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Is Brown-Forman Stock a Buy?
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DEO
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https://www.nasdaq.com/articles/is-brown-forman-stock-a-buy-2020-10-15
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nan
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nan
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Brown-Forman (NYSE: BF.A) (NYSE: BF.B), one of the largest spirit and wine makers in America, has been a resilient long-term investment. Its Class A shares are thinly traded and mainly owned by the Brown family, but its non-voting Class B shares have rallied more than 80% over the past five years as the S&P 500 rose 75%.
In fact, after factoring in reinvested dividends, Brown-Forman generated a total return of nearly 100%. The stock also easily weathered the COVID-19 crisis, rising about 15% this year against the S&P 500's 8% gain. Let's see why Brown-Forman continues to outperform the market, and whether or not the stock is still worth buying.
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In fact, after factoring in reinvested dividends, Brown-Forman generated a total return of nearly 100%. The stock also easily weathered the COVID-19 crisis, rising about 15% this year against the S&P 500's 8% gain. Let's see why Brown-Forman continues to outperform the market, and whether or not the stock is still worth buying.
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Brown-Forman (NYSE: BF.A) (NYSE: BF.B), one of the largest spirit and wine makers in America, has been a resilient long-term investment. Its Class A shares are thinly traded and mainly owned by the Brown family, but its non-voting Class B shares have rallied more than 80% over the past five years as the S&P 500 rose 75%. In fact, after factoring in reinvested dividends, Brown-Forman generated a total return of nearly 100%.
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Brown-Forman (NYSE: BF.A) (NYSE: BF.B), one of the largest spirit and wine makers in America, has been a resilient long-term investment. Its Class A shares are thinly traded and mainly owned by the Brown family, but its non-voting Class B shares have rallied more than 80% over the past five years as the S&P 500 rose 75%. Let's see why Brown-Forman continues to outperform the market, and whether or not the stock is still worth buying.
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Brown-Forman (NYSE: BF.A) (NYSE: BF.B), one of the largest spirit and wine makers in America, has been a resilient long-term investment. Its Class A shares are thinly traded and mainly owned by the Brown family, but its non-voting Class B shares have rallied more than 80% over the past five years as the S&P 500 rose 75%. In fact, after factoring in reinvested dividends, Brown-Forman generated a total return of nearly 100%.
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2ede6357-22d9-475b-9567-49d0e56cfef2
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727689.0
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2020-10-07 00:00:00 UTC
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7 Sin Stocks to Buy Today For Tempting Dividends
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DEO
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https://www.nasdaq.com/articles/7-sin-stocks-to-buy-today-for-tempting-dividends-2020-10-07
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Every investor has their own opinions when it comes to investing. While one investor may prefer socially responsible names, another might prefer tech or industrial stocks. And hey, some may even prefer sin stocks.
That’s what I love about the stock market: there are so many different ways to succeed. Growth investors can leverage up big wins, while dividend investors can DRIP their way to retirement. Successful traders can zig and zag throughout the market to make their coin, while long-term investors stay the course and reap the rewards.
As investors, we like to invest in what we know and understand. For better or for worse, often times we understand sin stocks.
Oftentimes, these businesses are like cash machines, pumping out their products and taking in a handsome profit. That cash gets paid out in the form of a dividend, which investors like even more.
The 7 Best New Stocks From 2020 to Buy Now
With that in mind, let’s look at 7 sin stocks to buy with tempting dividends:
Altria (NYSE:MO)
Philip Morris (NYSE:PM)
Diageo (NYSE:DEO)
Constellation Brands (NYSE:STZ)
Sturm, Ruger & Company (NYSE:RGR)
Starbucks (NASDAQ:SBUX)
McDonald’s (NYSE:MCD)
Sin stocks tend to be fairly reliable during periods of market uncertainty, adding extra appeal to our stock picks today.
7 Sin Stocks With Tempting Dividends: Altria (MO)
Source: Kristi Blokhin / Shutterstock.com
Can we even talk about sin stocks if we don’t start with big tobacco? The industry is full of sin stocks with lofty yields and at the top of the sector is Altria.
Altria dishes out a huge yield of 8.8%. For reference, compare that to the 10-year Treasury yield of just 0.65%. That’s right, the benchmark 10-year yield is notably below 1% on its payout.
That makes dividend stocks even more attractive. If Altria can avoid cutting its dividend, investors will realize a return of almost 9% as long as the stock simply avoids going down. If it rallies, then the return will be even better.
The company is forecast to grow both earnings and revenue this year and next year. Even better, the stock has a sub-10 price-to-earnings (P/E) ratio.
We have top- and bottom-line growth, a huge dividend and a low valuation. That’s a combination even non-sin stock investors can get behind. Lastly, while its investment in Cronos Group (NASDAQ:CRON) and Juul hasn’t worked out the way management had hoped, Altria now has exposure outside of its standard wheelhouse.
Philip Morris (PM)
Source: vfhnb12 / Shutterstock.com
When someone thinks of cigarettes, they often think of Marlboro. The brand is owned by Philip Morris, another well-known tobacco company.
From the company:
“PMI products are sold in over 180 markets. In many of these we hold the number-one or number-two position by market share. Six of the top 15 international brands in the world are ours.”
Interestingly, Philip Morris is actually a spinoff from Altria, which owned a vast number of brands and businesses at one point.
In any regard, Marlboro is by far the most favored cigarette brand in the U.S. In fact, on the list of most popular cigarette brands in the U.S., Marlboro sits at No. 1 and outsells the next seven competitors combined.
Faced with that fact, the company is still working hard at generating a smoke-less future. It continues to dump billions of R&D dollars into its futuristic smoke-free products. The company knows the direction the world is heading in and it won’t sit by idly while that happens.
The 7 Best New Stocks From 2020 to Buy Now
On the plus side, it continues to dump cash into its dividend too, which now yields 6.5%.
Diageo (DEO)
Source: IgorGolovniov / Shutterstock.com
Let’s pivot out of the tobacco world and take a look at Diageo.
This stock had been on fire, roasting higher for years before peaking in 2019. Shares almost tripled from 2009 to 2013 before cooling off for a few years. From its 2016 lows to the highs in 2019, Diageo stock roared higher by another 90%.
It looked like Diageo was ready to resume that uptrend in 2020 before the novel coronavirus hit. The stock has recovered about 50% of its losses from the selloff, which still gives long-term investors a great opportunity to accumulate the stock.
The company kicks out a 2.6% dividend yield, about four times the payout of the 10-year Treasury yield.
Diageo is responsible for some of the most well-known brands in the market too. It produces Johnny Walker, Crown Royal, Guinness, Bailey’s, Smirnoff and Tanqueray, among others.
Not only are investors buying into a portfolio of strong brands, they’re also buying into solid financials. Cash and equivalents of $3.4 billion easily outweighs current debt of $1.99 billion. Plus current assets are almost double current liabilities.
Finally, Diageo cleared $1.65 billion in cash flow in fiscal 2020, which ended June 30, 2020. I like that in a company.
Constellation Brands (STZ)
Source: ShinoStock / Shutterstock.com
Keeping with the boozy theme, Constellation Brands is another must-know name on the sin stocks list.
The company is best known for its U.S. distribution of Corona and Modelo. Don’t brush these brands off as minor, either. Modelo has quietly become the third most-popular beer in the U.S., while Constellation’s new Corona seltzer has become the No. 4 hard seltzer drink.
That’s all on top of the company’s long list of diversified brands, which has build out a portfolio of beer, wine and spirits. Pacifico joins the beer list, while Svedka vodka, High West whiskey and Casa Noble tequila round out the spirits. Constellation Brands also has a sizable wine business, ranging from low- to high-end offerings.
Finally, Constellation Brands also has a big stake in Canopy Growth (NYSE:CGC), to the tune of 38.6%. Canopy is largely considered the highest-quality name in the cannabis industry. If it succeeds — both in Canada and here in the U.S. — so too will Constellation Brands.
At just 1.6%, the dividend yield isn’t necessarily robust. But it comes after Constellation delivered an impressive quarter. Earnings beat even the highest estimate on Wall Street, while revenue topped expectations after slipping just 3.4% year-over-year in what will likely be the company’s most difficult quarter.
The 7 Best New Stocks From 2020 to Buy Now
Double-digit free cash flow growth really helps smooth things over, too.
Sturm Ruger & Company (RGR)
Source: Susan Law Cain / Shutterstock.com
Sturm Ruger & Company is an obvious candidate for any list of sin stocks. The company is a leading manufacturing of firearms, ranging from pistols to rifles. For some investors, that will make Ruger a no-touch. For others, that screams “buy, buy, buy!”
In any case, Ruger stock kicks out a 1.9% dividend yield and finds itself at an interesting crossroads.
Between the pandemic, the civil unrest and the presidential election, there have been plenty of catalysts for the stock. Interestingly though, the stock is down over 26% from its August highs.
That said, shares are still up 75% from the March lows. That’s after falling “just” 29.8% from the February highs to its coronavirus lows, while the overall market fell more than 35%.
In any regard, Ruger stock has rallied after both of its most recent earnings results. With the election coming up, it again may see more momentum in its business.
A Trump win likely keeps the firearms industry steady for the next four years. A Biden win could cause a flurry of buying between now and February. Even if the industry doesn’t see much change after that, the optics of the situation could drive sales.
Starbucks (SBUX)
Source: Grand Warszawski / Shutterstock.com
You probably didn’t expect Starbucks on a list of sin stocks. However, a common saying among coffee bulls is that caffeine is the most addictive, legal drug in the world. If that’s the case, we have to consider the industry leader, Starbucks.
The company is obviously having a tough year thanks to the novel coronavirus. Overall, revenue is forecast to fall 12% in 2020. Starbucks just wrapped up its fiscal year in September, and is set to report those results in October.
But before we concentrate on the negatives of 2020, why not focus on the positives?
After going public 1992, it only turned in negative growth once, in 2009 when revenue slipped 5.7%. That year — amidst the Great Recession — the company still reported positive earnings and operating cash flow.
In other words, Starbucks isn’t immune to these short-term swoons, but it has a track record for recovery. It boasts strong long-term growth and a powerful, global brand. Its balance sheet is solid too, ensuring investors that it can make it through the current global state.
Lastly in regards to the dividend, Starbucks stock pays out a 2.1% dividend yield. It’s not robust necessarily, but the growth of that dividend is what’s attractive. Even in hard times, Starbucks just gave us a 9.8% increase to the dividend on Sept. 30.
The 7 Best New Stocks From 2020 to Buy Now
While that is below the double-digit increases (oftentimes north of 20%) that investors have gotten used to over the years, the fact it is up at all, given the wider markets, is worth recognizing.
McDonald’s (MCD)
Source: 8th.creator / Shutterstock.com
I want to stick with the food stocks for a minute here, ending the list with McDonald’s. While this may not be a quintessential sin stock, some investors find fast food stocks move in a similar fasion. And if that’s the case, we owe it to our readers to cover them here as well.
McDonald’s is one the most storied brands in American history. It has built a tremendous franchise spanning the globe. Seemingly every town in America has a McDonald’s and while it may constitute as a “cheat day” for some customers, we all know what the company can provide: A quick bite to go.
In September 2019, McDonald’s hiked its dividend 7.8%, while investors are awaiting this year’s dividend hike. Should they get it, it will mark the company’s 44th consecutive annual dividend increase since the company started paying one in 1976.
Consider that for a moment. Despite all the tumultuous events over the past four decades, McDonald’s has not only maintained, but raised its annual dividend.
Whether you consider the company a sin stock or not hardly matters at this point. What matters is that that 2.25% yield is as dependable as finding a McDonald’s on a six-hour road trip.
On the date of publication, Bret Kenwell held a long position in SBUX.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
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The post 7 Sin Stocks to Buy Today For Tempting Dividends 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.
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The 7 Best New Stocks From 2020 to Buy Now With that in mind, let’s look at 7 sin stocks to buy with tempting dividends: Altria (NYSE:MO) Philip Morris (NYSE:PM) Diageo (NYSE:DEO) Constellation Brands (NYSE:STZ) Sturm, Ruger & Company (NYSE:RGR) Starbucks (NASDAQ:SBUX) McDonald’s (NYSE:MCD) Sin stocks tend to be fairly reliable during periods of market uncertainty, adding extra appeal to our stock picks today. Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Let’s pivot out of the tobacco world and take a look at Diageo. Lastly, while its investment in Cronos Group (NASDAQ:CRON) and Juul hasn’t worked out the way management had hoped, Altria now has exposure outside of its standard wheelhouse.
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The 7 Best New Stocks From 2020 to Buy Now With that in mind, let’s look at 7 sin stocks to buy with tempting dividends: Altria (NYSE:MO) Philip Morris (NYSE:PM) Diageo (NYSE:DEO) Constellation Brands (NYSE:STZ) Sturm, Ruger & Company (NYSE:RGR) Starbucks (NASDAQ:SBUX) McDonald’s (NYSE:MCD) Sin stocks tend to be fairly reliable during periods of market uncertainty, adding extra appeal to our stock picks today. Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Let’s pivot out of the tobacco world and take a look at Diageo. 7 Sin Stocks With Tempting Dividends: Altria (MO) Source: Kristi Blokhin / Shutterstock.com Can we even talk about sin stocks if we don’t start with big tobacco?
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The 7 Best New Stocks From 2020 to Buy Now With that in mind, let’s look at 7 sin stocks to buy with tempting dividends: Altria (NYSE:MO) Philip Morris (NYSE:PM) Diageo (NYSE:DEO) Constellation Brands (NYSE:STZ) Sturm, Ruger & Company (NYSE:RGR) Starbucks (NASDAQ:SBUX) McDonald’s (NYSE:MCD) Sin stocks tend to be fairly reliable during periods of market uncertainty, adding extra appeal to our stock picks today. Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Let’s pivot out of the tobacco world and take a look at Diageo. 7 Sin Stocks With Tempting Dividends: Altria (MO) Source: Kristi Blokhin / Shutterstock.com Can we even talk about sin stocks if we don’t start with big tobacco?
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The 7 Best New Stocks From 2020 to Buy Now With that in mind, let’s look at 7 sin stocks to buy with tempting dividends: Altria (NYSE:MO) Philip Morris (NYSE:PM) Diageo (NYSE:DEO) Constellation Brands (NYSE:STZ) Sturm, Ruger & Company (NYSE:RGR) Starbucks (NASDAQ:SBUX) McDonald’s (NYSE:MCD) Sin stocks tend to be fairly reliable during periods of market uncertainty, adding extra appeal to our stock picks today. Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Let’s pivot out of the tobacco world and take a look at Diageo. I like that in a company.
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0293f44c-26df-426f-993a-611e3bc7c71d
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727690.0
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2020-10-04 00:00:00 UTC
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Could a Cannabis Investment Be on Coke's Radar?
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DEO
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https://www.nasdaq.com/articles/could-a-cannabis-investment-be-on-cokes-radar-2020-10-04
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nan
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nan
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Coca-Cola (NYSE: KO) is a stable but evolving company that has adapted to changing consumer trends over the years. While its most popular products are its sugary drinks, its business is much more robust, with more than 500 brands around the world. In addition to soft drinks, the company also sells coffee, tea, juice, water, and plant-based drinks.
One offering that could soon be on the horizon for Coca-Cola is cannabis. Although it may seem like a risky move for a fairly conservative company like Coca-Cola, here's why a move into that industry may be inevitable.
The company is following the consumer
Coca-Cola made a big announcement this year: It's going to be offering its first alcoholic beverage in decades, a hard seltzer. Through its Topo Chico brand, it plans to launch the new products next year, and the reason is likely no mystery: During the coronavirus pandemic, hard seltzer has been selling incredibly well. Data from analytics company Nielsen shows that hard seltzer sales quadrupled over a 15-week period ending June 13. It's an incredible, and welcome, opportunity for Coca-Cola to continue growing its business. In 2019, the company reported revenue of $37.3 billion -- down 19% from five years ago, when it generated $46 billion.
Image source: Getty Images.
"We're going to follow the consumer," Coca-Cola CEO James Quincey told CNBC in a recent interview when discussing the move into hard seltzer. And if that's the motivation, it may only be a matter of time before cannabis ends up on the company's radar as another significant growth opportunity. According to data from Grand View Research, the market for cannabis beverages could reach $2.8 billion by 2025, growing at an annual rate of 17.8%.
There were rumors in the past of Coca-Cola partnering with Aurora Cannabis
In 2018, it appeared that a deal involving Coke and cannabis producer Aurora Cannabis (NYSE: ACB) was right around the corner, with the soft-drink giant looking to make cannabis beverages. Nothing ended up materializing from that, but multiple sources did report it, and it's possible Coca-Cola did do some kicking of the tires.
If so, it wouldn't have been the only beverage company to do so. Constellation Brands (NYSE: STZ) , the maker of Corona beer, Svedka vodka, and more, has jumped into the cannabis market with both feet, investing $4 billion in Canadian pot producer Canopy Growth since 2017. And management at Diageo, which makes Guinness, has also said in the past that they're keeping an eye on the cannabis industry.
Quincey downplayed this possibility in 2018, saying Coke had no plans to get into the cannabis market. But he didn't outright say that it would never happen. Whether it's with Aurora or another cannabis company, investors shouldn't rule out the possibility of something happening in the future involving Coca-Cola. That's especially true as consumer attitudes on cannabis continue to change; a total of 11 states have already legalized it for recreational use, and another four could do so this year, with New Jersey, Arizona, South Dakota, and Montana voters deciding on whether to permit adult-use pot in November.
What does this mean for investors?
It's only a matter of time before another big name like Coca-Cola or Diageo joins Constellation Brands with a foray into the cannabis industry. Businesses grow and thrive by evolving and keeping up with consumer trends, and cannabis is rising in popularity. This year's been a banner year for pot sales, with several states, including Illinois, California, Colorado, and Ohio, reporting record numbers.
As pressure mounts for Coca-Cola and other companies to expand their own sales, cannabis offers an opportunity to broaden product lines and reach more customers. And while the federally illegal status of cannabis in the U.S. could be a deterrent in the short term, the Canadian market is wide open and could serve as a great testing ground.
All that said, this doesn't mean you should immediately buy shares in Coca-Cola because sooner or later it might invest in the cannabis industry. Investing in pot stocks themselves may be a better strategy. A large company -- whether or not it's Coca-Cola specifically -- getting into cannabis could energize the entire industry. The Horizons Marijuana Life Sciences ETFÂ (OTC: HMLSF) has fallen 35% this year and is badly underperforming the S&P 500, which is up 4% over the same period. Even just one big name expressing interest in cannabis could get investors bullish on the industry again.
A pot stock like Aurora Cannabis that's fallen more than 80% in 2020 could potentially double, even triple, in value on news of a big company from another industry entering the market. Amid a pandemic, it may be awhile before that happens, but investing in pot stocks today could pay off in a few years, especially if marijuana legalization continues to progress in the U.S.
Here's The Marijuana Stock You've Been Waiting For
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
And make no mistake â it is coming.
Cannabis legalization is sweeping over North America â 11 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018.
And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution.
Because a game-changing deal just went down between the Ontario government and this powerhouse company...and you need to hear this story today if you have even considered investing in pot stocks.
Simply click here to get the full story now.
Learn more
David Jagielski has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends 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.
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Through its Topo Chico brand, it plans to launch the new products next year, and the reason is likely no mystery: During the coronavirus pandemic, hard seltzer has been selling incredibly well. Constellation Brands (NYSE: STZ) , the maker of Corona beer, Svedka vodka, and more, has jumped into the cannabis market with both feet, investing $4 billion in Canadian pot producer Canopy Growth since 2017. That's especially true as consumer attitudes on cannabis continue to change; a total of 11 states have already legalized it for recreational use, and another four could do so this year, with New Jersey, Arizona, South Dakota, and Montana voters deciding on whether to permit adult-use pot in November.
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According to data from Grand View Research, the market for cannabis beverages could reach $2.8 billion by 2025, growing at an annual rate of 17.8%. There were rumors in the past of Coca-Cola partnering with Aurora Cannabis In 2018, it appeared that a deal involving Coke and cannabis producer Aurora Cannabis (NYSE: ACB) was right around the corner, with the soft-drink giant looking to make cannabis beverages. Constellation Brands (NYSE: STZ) , the maker of Corona beer, Svedka vodka, and more, has jumped into the cannabis market with both feet, investing $4 billion in Canadian pot producer Canopy Growth since 2017.
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There were rumors in the past of Coca-Cola partnering with Aurora Cannabis In 2018, it appeared that a deal involving Coke and cannabis producer Aurora Cannabis (NYSE: ACB) was right around the corner, with the soft-drink giant looking to make cannabis beverages. Whether it's with Aurora or another cannabis company, investors shouldn't rule out the possibility of something happening in the future involving Coca-Cola. A pot stock like Aurora Cannabis that's fallen more than 80% in 2020 could potentially double, even triple, in value on news of a big company from another industry entering the market.
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Whether it's with Aurora or another cannabis company, investors shouldn't rule out the possibility of something happening in the future involving Coca-Cola. It's only a matter of time before another big name like Coca-Cola or Diageo joins Constellation Brands with a foray into the cannabis industry. Investing in pot stocks themselves may be a better strategy.
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727691.0
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2020-09-29 00:00:00 UTC
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Constellation Brands Could See Full Recovery To Pre-Covid Level
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DEO
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https://www.nasdaq.com/articles/constellation-brands-could-see-full-recovery-to-pre-covid-level-2020-09-29
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nan
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nan
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We believe there may be a decent opportunity with Constellation Brands stock (NYSE: STZ) at the present time. STZ trades at $182 currently and is in fact down 3% so far this year. It traded at a pre-Covid high of $205 in February, and it is still 11% below that level now. STZ stock has gained around 74% from the low of $105 seen in March 2020, more than the S&P 500 which is up 45%. STZ stock has outperformed the market following the US government announcing a string of measures along with stimulus packages announced in other economies to keep businesses afloat. That said, with the lifting of lockdowns gradually, the spirit demand in the traditional restaurants and pubs category is also expected to pick up in the coming months. This is likely to provide an uptick to the stock. In view of its rally since March and projections of a better top and bottom line in FY 2022 (year ending February 2022), STZ stock is likely to see a full recovery to pre-Covid levels in the near term, reflecting potential gains of close to 15%. Our conclusion is based on our detailed analysis of Constellation Brands stock performance during the current crisis with that during the 2008 recession in our interactive dashboard.
2020 Coronavirus Crisis
Timeline for 2020 Crisis So Far:
12/12/2019: Coronavirus cases first reported in China
1/31/2020: WHO declares a global health emergency.
2/19/2020: Signs of effective containment in China and hopes of monetary easing by major central banks helps S&P 500 reach a record high
3/23/2020: S&P 500 drops 34% from the peak level seen on Feb 19, as COVID-19 cases accelerate outside China. Doesnât help that oil prices crash in mid-March amid Saudi-led price war
Since 3/24/2020: S&P 500 recovers 45% from the lows seen on Mar 23, as the Fedâs multi-billion dollar stimulus package suppresses near-term survival anxiety and infuses liquidity into the system.
In contrast, here is how STZ and the broader market performed during the 2007-08 crisis.
Timeline for 2007-08 Crisis
10/1/2007: Approximate pre-crisis peak in S&P 500 index
9/1/2008 â 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08)
3/1/2009: Approximate bottoming out of S&P 500 index
1/1/2010: Initial recovery to levels before accelerated decline (around 9/1/2008)
STZ vs S&P 500 Performance Over 2007-08 Financial Crisis
STZ stock declined from levels of around $23 in September 2007 (pre-crisis peak) to levels of around $12 in March 2009 (as the markets bottomed out), implying STZ stock lost 48% from its approximate pre-crisis peak. It recovered post the 2008 crisis, to levels of over $15 in early 2010, rising by 22% between March 2009 and January 2010. In comparison, the S&P 500 Index saw a decline of 51% and recovered 48%.
STZ Fundamentals Over Recent Years Have Been Strong
STZ revenues grew from $7.3 billion in FY2017 to $8.3 billion in FY2020, due to beer volume growth and rising prices. Along with higher revenues, margins improved over recent years with EPS increasing from $7.76 in FY2017 to $18.24 in FY2019. However, earnings turned negative (-$0.07) in FY2020 due to large impairment charges and loss from equity affiliates. STZâs Q1 2021 (ending May 2020) revenues saw a 6.6% y-o-y decline. Earnings came in at -$0.94/share as against -$1.30/share in the year-ago period.
Does STZ Have A Sufficient Cash Cushion To Meet Its Obligations Through The Coronavirus Crisis?
STZâs total debt increased from $9.2 billion in FY2017 to $11.6 billion at the end of Q2 2020, while its total cash increased marginally from $0.2 billion to $0.3 billion over the same period. The company also generated $0.7 billion in cash from its operations in the first three months of FY2021. The companyâs balance sheet could prove to be the only impediment/risk in its ability to weather the current crisis.
Conclusion
Phases of Covid-19 Crisis:
Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally
Late-March 2020 onward: Social distancing measures + lockdowns
April 2020: Fed stimulus suppresses near-term survival anxiety
May-June 2020: Recovery of demand, with gradual lifting of lockdowns â no panic anymore despite a steady increase in the number of cases
July-September 2020: Poor Q2 results, but continued improvement in demand and a decline in the number of new cases and progress with vaccine development buoy expectations
Over the coming weeks, we expect continued improvement in demand and subdued growth in the number of new Covid-19 cases in the U.S. to buoy market expectations. As investors focus their attention on expected 2021 results (FY2022 numbers in case of STZ i.e. for the year ending in February 2022), we believe Constellation Brands stock has the potential for some gains once fears surrounding the Covid outbreak are put to rest. The stock is likely to rise to its pre-Covid level of over $205 in the near term. That said, high debt burden along with a modest cash position remains a risk factor to the realization of these gains.
For a better picture of the alcoholic beverage space, dive into our comparative analysis of Anheuser-Busch vs Diageo. Also, Compare Molson Coors with Anheuser-Busch InBev and you see that TAP is a better bet right now
What if youâre looking for a more balanced portfolio instead? Hereâs a high quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
Â
See all Trefis Price Estimates and Download Trefis Data here
Whatâs behind Trefis? See How Itâs Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In view of its rally since March and projections of a better top and bottom line in FY 2022 (year ending February 2022), STZ stock is likely to see a full recovery to pre-Covid levels in the near term, reflecting potential gains of close to 15%. Our conclusion is based on our detailed analysis of Constellation Brands stock performance during the current crisis with that during the 2008 recession in our interactive dashboard. As investors focus their attention on expected 2021 results (FY2022 numbers in case of STZ i.e. for the year ending in February 2022), we believe Constellation Brands stock has the potential for some gains once fears surrounding the Covid outbreak are put to rest.
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Timeline for 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 â 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 1/1/2010: Initial recovery to levels before accelerated decline (around 9/1/2008) STZ vs S&P 500 Performance Over 2007-08 Financial Crisis STZ stock declined from levels of around $23 in September 2007 (pre-crisis peak) to levels of around $12 in March 2009 (as the markets bottomed out), implying STZ stock lost 48% from its approximate pre-crisis peak. Conclusion Phases of Covid-19 Crisis: Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally Late-March 2020 onward: Social distancing measures + lockdowns April 2020: Fed stimulus suppresses near-term survival anxiety May-June 2020: Recovery of demand, with gradual lifting of lockdowns â no panic anymore despite a steady increase in the number of cases July-September 2020: Poor Q2 results, but continued improvement in demand and a decline in the number of new cases and progress with vaccine development buoy expectations Over the coming weeks, we expect continued improvement in demand and subdued growth in the number of new Covid-19 cases in the U.S. to buoy market expectations. As investors focus their attention on expected 2021 results (FY2022 numbers in case of STZ i.e. for the year ending in February 2022), we believe Constellation Brands stock has the potential for some gains once fears surrounding the Covid outbreak are put to rest.
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Timeline for 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 â 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 1/1/2010: Initial recovery to levels before accelerated decline (around 9/1/2008) STZ vs S&P 500 Performance Over 2007-08 Financial Crisis STZ stock declined from levels of around $23 in September 2007 (pre-crisis peak) to levels of around $12 in March 2009 (as the markets bottomed out), implying STZ stock lost 48% from its approximate pre-crisis peak. STZ Fundamentals Over Recent Years Have Been Strong STZ revenues grew from $7.3 billion in FY2017 to $8.3 billion in FY2020, due to beer volume growth and rising prices. Conclusion Phases of Covid-19 Crisis: Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally Late-March 2020 onward: Social distancing measures + lockdowns April 2020: Fed stimulus suppresses near-term survival anxiety May-June 2020: Recovery of demand, with gradual lifting of lockdowns â no panic anymore despite a steady increase in the number of cases July-September 2020: Poor Q2 results, but continued improvement in demand and a decline in the number of new cases and progress with vaccine development buoy expectations Over the coming weeks, we expect continued improvement in demand and subdued growth in the number of new Covid-19 cases in the U.S. to buoy market expectations.
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STZ stock has gained around 74% from the low of $105 seen in March 2020, more than the S&P 500 which is up 45%. Timeline for 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 â 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 1/1/2010: Initial recovery to levels before accelerated decline (around 9/1/2008) STZ vs S&P 500 Performance Over 2007-08 Financial Crisis STZ stock declined from levels of around $23 in September 2007 (pre-crisis peak) to levels of around $12 in March 2009 (as the markets bottomed out), implying STZ stock lost 48% from its approximate pre-crisis peak. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
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0f406397-baaa-41ea-a54c-21d8ccdc0b56
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727692.0
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2020-09-28 00:00:00 UTC
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Diageo Plc Issues Trading Statement - Quick Facts
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DEO
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https://www.nasdaq.com/articles/diageo-plc-issues-trading-statement-quick-facts-2020-09-28
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nan
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nan
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(RTTNews) - Diageo Plc (DGE.L, DEO) said it has made a good start to fiscal 2021, with sequential improvement in its performance across all regions. For the first half of fiscal 2021, the Group continues to expect sequential improvement in organic net sales and operating profit compared to the second half of fiscal 20. Compared to the first half of fiscal 2020, the Group still anticipates lower organic net sales and margin dilution.
"Our US business is performing strongly and ahead of our expectations, reflecting resilient consumer demand and the spirits category continuing to gain share within the total beverage alcohol market. Increased retailer confidence is resulting in some re-stocking in the off-trade channel. The on-trade channel is now open in all states, with some capacity restrictions," said Ivan Menezes, Chief Executive.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Diageo Plc (DGE.L, DEO) said it has made a good start to fiscal 2021, with sequential improvement in its performance across all regions. Compared to the first half of fiscal 2020, the Group still anticipates lower organic net sales and margin dilution. "Our US business is performing strongly and ahead of our expectations, reflecting resilient consumer demand and the spirits category continuing to gain share within the total beverage alcohol market.
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(RTTNews) - Diageo Plc (DGE.L, DEO) said it has made a good start to fiscal 2021, with sequential improvement in its performance across all regions. For the first half of fiscal 2021, the Group continues to expect sequential improvement in organic net sales and operating profit compared to the second half of fiscal 20. Compared to the first half of fiscal 2020, the Group still anticipates lower organic net sales and margin dilution.
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(RTTNews) - Diageo Plc (DGE.L, DEO) said it has made a good start to fiscal 2021, with sequential improvement in its performance across all regions. For the first half of fiscal 2021, the Group continues to expect sequential improvement in organic net sales and operating profit compared to the second half of fiscal 20. "Our US business is performing strongly and ahead of our expectations, reflecting resilient consumer demand and the spirits category continuing to gain share within the total beverage alcohol market.
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(RTTNews) - Diageo Plc (DGE.L, DEO) said it has made a good start to fiscal 2021, with sequential improvement in its performance across all regions. For the first half of fiscal 2021, the Group continues to expect sequential improvement in organic net sales and operating profit compared to the second half of fiscal 20. "Our US business is performing strongly and ahead of our expectations, reflecting resilient consumer demand and the spirits category continuing to gain share within the total beverage alcohol market.
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3add02a1-c1eb-499a-883d-4f5aff6397f0
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727693.0
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2020-09-14 00:00:00 UTC
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After 35% Rally, Diageo Stock Set To March Toward $150
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DEO
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https://www.nasdaq.com/articles/after-35-rally-diageo-stock-set-to-march-toward-%24150-2020-09-14
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nan
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nan
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Diageo stock (NYSE: DEO) has seen a considerable rise of close to 35% since late March (vs. more than 50% for the S&P 500) to its current level near $135. This is after falling to a low of $103 in late March as a rapid increase in the number of Covid-19 cases outside China spooked investors, and resulted in heightened fears of an imminent global economic downturn. Are the investors exuberant or are the gains warranted? With the stock being more than 15% below the $165 level it reached in February 2020, we believe the stock has still not reached its near-term potential. We could see a further rise of close to 10% from its current level. Our conclusion is based on our detailed comparison of Diageoâs stock performance during the current crisis with that during the 2008 recession in our dashboard analysis â Diageo Stock Recovery Far From Over.
How Did Diageo Fare During 2008 Downturn?
We see DEO stock declined from levels of around $89 in October 2007 (the pre-crisis peak) to roughly $45 in March 2009 (as the markets bottomed out) â implying that the stock lost as much as 50% of its value from its approximate pre-crisis peak. This marked a drop that was in line with the broader S&P, which fell by about 51%.
However, DEO recovered strongly post the 2008 crisis to about $69 in early 2010 â rising by 55% between March 2009 and January 2010, as against the S&P which bounced back by about 48% over the same period.
In comparison, DEO stock lost 37% of its value between 19th February and 23rd March 2020, and has already recovered 35% since then. During the same period, the S&P fell by about 34% and rebounded even stronger by about 52%.
Where Is The Stock Headed?
The rally across industries over recent weeks can primarily be attributed to the Fed stimulus which largely put investor concerns about the near-term survival of companies to rest. The flattening of Covid cases in the worst hit U.S. and European cities is also giving investors confidence that developed markets have put the worst of the pandemic behind them. Sure, the companyâs business has taken a significant hit as was evident in the recently released FY 2020 results (year ending June 2020). Diageoâs revenues declined by about 9% y-o-y for FY2020. However, after seeing growth in H1 2020, all of the decline came only in H2 because of the pandemic. Revenues declined 34% y-o-y in H2 2020. Though the recent spike in Covid positive cases could prove to be a concern if the lockdowns are re-imposed, however, such a situation looks unlikely at the moment.
With gradual lifting of lockdowns and easing of global supply chains, Diageoâs volume sales are set to increase in FY 2021. Gradual opening of restaurants and bars over the coming weeks will also aid in faster recovery in the top line. With the investorsâ focus having shifted to 2021 numbers, the stock price has remained elevated on expectations of faster recovery. Diageo recently announced that it is acquiring Aviation Gin, which is the USâ second largest brand in the super-premium gin segment. Acquisition of a fast-growing company (Aviation Ginâs sales increased 100% in 2019) bodes well for Diageo. Additionally, a y-o-y rise of 2% in dividends during FY2020 when most companies in the industry are finding it difficult to maintain shareholder return policies, has also helped investors stick with the stock. As per Diageoâs valuation by Trefis, we have a price estimate of $150 per share for the stock, reflecting a potential upside of close to 10% from the current level.
For a better picture of the alcoholic beverage space, dive into our comparative analysis of Anheuser-Busch vs Diageo.
What if instead you are looking for a more balanced portfolio? Hereâs a top-quality portfolio to outperform the market, with over 100% return since 2016, versus 55% for the S&P 500, Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk. It has outperformed the broader market year after year, consistently.
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See all Trefis Price Estimates and Download Trefis Data here
Whatâs behind Trefis? See How Itâs Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Diageo stock (NYSE: DEO) has seen a considerable rise of close to 35% since late March (vs. more than 50% for the S&P 500) to its current level near $135. We see DEO stock declined from levels of around $89 in October 2007 (the pre-crisis peak) to roughly $45 in March 2009 (as the markets bottomed out) â implying that the stock lost as much as 50% of its value from its approximate pre-crisis peak. However, DEO recovered strongly post the 2008 crisis to about $69 in early 2010 â rising by 55% between March 2009 and January 2010, as against the S&P which bounced back by about 48% over the same period.
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In comparison, DEO stock lost 37% of its value between 19th February and 23rd March 2020, and has already recovered 35% since then. Diageo stock (NYSE: DEO) has seen a considerable rise of close to 35% since late March (vs. more than 50% for the S&P 500) to its current level near $135. We see DEO stock declined from levels of around $89 in October 2007 (the pre-crisis peak) to roughly $45 in March 2009 (as the markets bottomed out) â implying that the stock lost as much as 50% of its value from its approximate pre-crisis peak.
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Diageo stock (NYSE: DEO) has seen a considerable rise of close to 35% since late March (vs. more than 50% for the S&P 500) to its current level near $135. We see DEO stock declined from levels of around $89 in October 2007 (the pre-crisis peak) to roughly $45 in March 2009 (as the markets bottomed out) â implying that the stock lost as much as 50% of its value from its approximate pre-crisis peak. However, DEO recovered strongly post the 2008 crisis to about $69 in early 2010 â rising by 55% between March 2009 and January 2010, as against the S&P which bounced back by about 48% over the same period.
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Diageo stock (NYSE: DEO) has seen a considerable rise of close to 35% since late March (vs. more than 50% for the S&P 500) to its current level near $135. We see DEO stock declined from levels of around $89 in October 2007 (the pre-crisis peak) to roughly $45 in March 2009 (as the markets bottomed out) â implying that the stock lost as much as 50% of its value from its approximate pre-crisis peak. However, DEO recovered strongly post the 2008 crisis to about $69 in early 2010 â rising by 55% between March 2009 and January 2010, as against the S&P which bounced back by about 48% over the same period.
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5a94b797-cc6c-403d-be35-e2c7dd0b6c9a
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727694.0
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2020-09-12 00:00:00 UTC
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Ryan Reynolds: "Deadpool" Actor, Super Investor
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DEO
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https://www.nasdaq.com/articles/ryan-reynolds%3A-deadpool-actor-super-investor-2020-09-12
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nan
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nan
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If you know of Ryan Reynolds, you probably know him best for playing the potty-mouthed Marvel superhero in Deadpool -- or the more PG-rated Detective Pikachu. But did you know that Ryan Reynolds is also one heck of an investor?
It's true.
Image source: Getty Images.
Ryan Reynolds' net worth starts high...
In 2018, CelebrityNetWorth.com placed Reynold's net worth at $75 million, mostly accumulated through his Hollywood paychecks. But not content with that chump change, in February of that year Reynolds laid out a to-date still-undisclosed sum to acquire a "significant" minority interest in premium alcohol maker Aviation Gin.
It's not known precisely how much he paid, but it's now a pretty sure bet that he got a good deal.
...and flies higher
As CNBC reported last month, Reynolds and his partners have agreed to sell Aviation Gin and its parent company, Davos Brands LLC, to drinks giant Diageo (NYSE: DEO). The total purchase price comes to $610 million, divided among one upfront payment of $335 million, and up to $275 million more that Diageo promises to pay as "earnouts" over the next 10 years, assuming Aviation Gin performs as expected.
Now, because Reynolds' initial investment in Aviation Gin was never disclosed, and because we likewise don't know what percentage of Aviation Gin he acquired for that investment, it's impossible to say precisely how much of the $610 million will be going into Reynolds' pocket. But even if he owned as little as 10% of the company (for example), $610 million divided by 10 would still be a lot of money -- certainly more money than the $2 million he was paid for starring in Deadpool.
And Reynolds didn't stop there.
From premium gin to plebeian phone service
Even before the Aviation Gin sale was announced -- perhaps even before negotiations had begun -- Reynolds was already working on a second major investment, and this one headed in an entirely different direction. In November last year, Reynolds revealed he had purchased a large interest (reportedly more than 25%) in discount prepaid cellphone service provider Mint Mobile.
Even Reynolds acknowledged that his move into wireless telephony is a bit "unconventional." So why make the switch from premium gin to prepaid cell service?
As Reynolds said in the company's announcement at the time, "the average American is paying 65 dollars a month" for telephone service that is "most essential." But by piggybacking aboard the cell network of T-Mobile US (NASDAQ: TMUS), and T-Mobile's infrastructure to carry Mint's service, Mint Mobile is able to provide "premium wireless" service to its customers for as little as $15 a month.
A rate that low could help Mint steal market share among budget-conscious consumers and outgrow bigger rivals such as AT&T, Verizon, and T-Mobile itself. If this is how things play out, Mint may become Reynolds' next winning investment.
What investors can learn from Ryan Reynolds
Granted, not everyone can make these kinds of investments. Both Aviation and Mint were, after all, private companies, and few ordinary investors have access to those kinds of opportunities. Moreover, Reynolds is able to leverage the star power of his name to grow the value of the brands he invests in. Aviation, for example, enjoyed better than 100% sales growth the year after Reynolds bought into it.
Almost certainly, part of that growth came from consumers intrigued by Reynolds' involvement in the project and willing to buy a bottle to see what all the fuss was about.
But even so, I think there are lessons investors can learn from Reynolds' investments. For example: What happens if a consumer doesn't buy a second bottle? What if instead of a bottle of Aviation, they go on to try the next novelty alcohol instead, and the 100% sales growth Aviation saw last year starts to slow?
Consumers can be fickle with their discretionary spending, after all. New brands come into favor, fall out of favor, and go bankrupt all the time. And that's why I think Reynolds made a smart move shifting from high-priced alcohol to low-priced prepaid cell service with his second investment. Assuming Mint provides even just adequate service, the $15-a-month price tag should suffice to secure consumer loyalty, even as advertising that low price helps to attract new consumers, growing the business, the revenue, and the profits at Mint Mobile.
In the long run, I suspect a cell service business with repeat customers and recurring revenue will perform even better for Reynolds than one that depends on novelty and one-off customers. That's how it works in the movie biz, after all (see Deadpool, Deadpool 2 -- and coming next year, Deadpool 3).
If I had to bet, that's how I think it will work with Mint Mobile as well.
10 stocks we like better than T-Mobile US
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and T-Mobile US 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 August 1, 2020
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Diageo and T-Mobile US. 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.
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...and flies higher As CNBC reported last month, Reynolds and his partners have agreed to sell Aviation Gin and its parent company, Davos Brands LLC, to drinks giant Diageo (NYSE: DEO). But not content with that chump change, in February of that year Reynolds laid out a to-date still-undisclosed sum to acquire a "significant" minority interest in premium alcohol maker Aviation Gin. In November last year, Reynolds revealed he had purchased a large interest (reportedly more than 25%) in discount prepaid cellphone service provider Mint Mobile.
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...and flies higher As CNBC reported last month, Reynolds and his partners have agreed to sell Aviation Gin and its parent company, Davos Brands LLC, to drinks giant Diageo (NYSE: DEO). Ryan Reynolds' net worth starts high... The total purchase price comes to $610 million, divided among one upfront payment of $335 million, and up to $275 million more that Diageo promises to pay as "earnouts" over the next 10 years, assuming Aviation Gin performs as expected.
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...and flies higher As CNBC reported last month, Reynolds and his partners have agreed to sell Aviation Gin and its parent company, Davos Brands LLC, to drinks giant Diageo (NYSE: DEO). Now, because Reynolds' initial investment in Aviation Gin was never disclosed, and because we likewise don't know what percentage of Aviation Gin he acquired for that investment, it's impossible to say precisely how much of the $610 million will be going into Reynolds' pocket. From premium gin to plebeian phone service Even before the Aviation Gin sale was announced -- perhaps even before negotiations had begun -- Reynolds was already working on a second major investment, and this one headed in an entirely different direction.
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...and flies higher As CNBC reported last month, Reynolds and his partners have agreed to sell Aviation Gin and its parent company, Davos Brands LLC, to drinks giant Diageo (NYSE: DEO). From premium gin to plebeian phone service Even before the Aviation Gin sale was announced -- perhaps even before negotiations had begun -- Reynolds was already working on a second major investment, and this one headed in an entirely different direction. Assuming Mint provides even just adequate service, the $15-a-month price tag should suffice to secure consumer loyalty, even as advertising that low price helps to attract new consumers, growing the business, the revenue, and the profits at Mint Mobile.
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45284185-5999-4b66-a755-f919f76e8c36
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727695.0
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2020-09-11 00:00:00 UTC
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Molson Coors Beverages: Drink This For 20% Gain
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DEO
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https://www.nasdaq.com/articles/molson-coors-beverages%3A-drink-this-for-20-gain-2020-09-11
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nan
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nan
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After falling to almost a decade-low of $33 in early July 2020, Molson Coors Beverage stock (NYSE: TAP) has recovered around 15%. At the current price of around $38 (as on 9th September 2020), we believe TAP’s stock is undervalued and has the potential to rise by about 20%. The stock price of Molson Coors – a company that manufactures, markets, and sells beer and other malt beverage products in the United States, Canada, Europe, and internationally – is still 35% lower than its February 2020 high, and has hardly seen any recovery compared to peers in the sector. In comparison, the S&P 500 has recovered almost 50% since its March lows.
TAP stock is currently 50% below the level at which it was at the end of 2017. We believe that the US government’s announcement of a string of measures to keep businesses afloat and expectations of a rise in consumer demand and reduction in supply bottlenecks as the global lockdowns are gradually lifted, provides a significant upside to the stock price. However, it is unlikely to go to its pre-crisis levels because it is beginning to lose market share in not just seltzers, wine, and spirits, but also within the beer industry even before the current pandemic. Our dashboard What Factors Drove -50% Change In Molson Coors Brewing Stock Between 2017 And Now? provides the key numbers behind our thinking.
The stock price decline during the 2017 to 2019 period is justified by over a 3% decrease in revenues as the demand for beer has been decreasing worldwide due to changing consumer preferences. This effect was magnified by sharp deterioration in profitability as net income margin went down from 12% in 2017 to 2% in 2019. On a per share basis, earnings dropped from $7.27 in 2017 to $1.12 in 2019.
However, the P/E multiple increased sharply from 10x at the end of 2017 to 48x at the end of 2019. The rise in P/E was because the decline in stock price was not as sharp as the drop in EPS. This was because profits decreased in 2019 mainly due to significant non-recurring impairment charges and not due to a considerable change in fundamentals. The multiple dropped in 2020 following the pandemic and currently stands below 35x. We expect the P/E multiple to decline in the near term with the company losing market share, and a rise in stock price is likely to be driven by an improvement in EPS compared to 2019.
Trigger for Upside?
The global spread of coronavirus has led to lockdown in various cities across the globe, which has affected industrial and economic activity. This is likely to adversely affect consumption and consumer spending. This was reflected in TAP’s Q2 2020 results where its revenue declined by 15% y-o-y. The widespread closing of restaurants and bars, plus the cancellation of sporting events, concerts, and nearly every other form of public entertainment across key markets like the U.S. and Canada, led to a plunge in beer sales, thus affecting the stock price adversely. An even more significant decline in sales was averted as the company has been focusing on off-premise sales (other than bars and restaurants).
However, there have been signs of lifting of the global lockdowns over recent weeks. As the global economy opens up and lockdowns are lifted in phases, consumer demand is expected to pick up. Also, reduction of supply bottlenecks is expected to help a company which has a global supply network (22% of the total revenues comes from non-US markets) to increase its volume. This could be reflected in the form of a pick up in revenue toward the end of 2020, followed by revenue growth in FY2021. Additionally, the company’s margins are also expected to improve in 2020 and 2021 (as the base 2019 was unusually low due to impairment). Rising demand and smoother supply is likely to help avoid a sharp drop in P/E multiple, which will likely remain above its 2017 and 2018 levels. This could drive the stock higher to about $45, reflecting an opportunity for a potential 20% growth in investor wealth.
Compare Molson Coors with Anheuser-Busch InBev and you see that TAP is a better bet right now. For a better picture of the alcoholic beverage space, dive into our comparative analysis of Anheuser-Busch vs Diageo.
What if you’re looking for a more balanced portfolio instead? Here’s a top-quality portfolio to outperform the market, with over 100% return since 2016, versus 55% for the S&P 500, Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk. It has outperformed the broader market year after year, consistently.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The stock price of Molson Coors – a company that manufactures, markets, and sells beer and other malt beverage products in the United States, Canada, Europe, and internationally – is still 35% lower than its February 2020 high, and has hardly seen any recovery compared to peers in the sector. We believe that the US government’s announcement of a string of measures to keep businesses afloat and expectations of a rise in consumer demand and reduction in supply bottlenecks as the global lockdowns are gradually lifted, provides a significant upside to the stock price. The widespread closing of restaurants and bars, plus the cancellation of sporting events, concerts, and nearly every other form of public entertainment across key markets like the U.S. and Canada, led to a plunge in beer sales, thus affecting the stock price adversely.
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After falling to almost a decade-low of $33 in early July 2020, Molson Coors Beverage stock (NYSE: TAP) has recovered around 15%. We believe that the US government’s announcement of a string of measures to keep businesses afloat and expectations of a rise in consumer demand and reduction in supply bottlenecks as the global lockdowns are gradually lifted, provides a significant upside to the stock price. We expect the P/E multiple to decline in the near term with the company losing market share, and a rise in stock price is likely to be driven by an improvement in EPS compared to 2019.
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The stock price of Molson Coors – a company that manufactures, markets, and sells beer and other malt beverage products in the United States, Canada, Europe, and internationally – is still 35% lower than its February 2020 high, and has hardly seen any recovery compared to peers in the sector. We believe that the US government’s announcement of a string of measures to keep businesses afloat and expectations of a rise in consumer demand and reduction in supply bottlenecks as the global lockdowns are gradually lifted, provides a significant upside to the stock price. We expect the P/E multiple to decline in the near term with the company losing market share, and a rise in stock price is likely to be driven by an improvement in EPS compared to 2019.
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We believe that the US government’s announcement of a string of measures to keep businesses afloat and expectations of a rise in consumer demand and reduction in supply bottlenecks as the global lockdowns are gradually lifted, provides a significant upside to the stock price. The widespread closing of restaurants and bars, plus the cancellation of sporting events, concerts, and nearly every other form of public entertainment across key markets like the U.S. and Canada, led to a plunge in beer sales, thus affecting the stock price adversely. This could be reflected in the form of a pick up in revenue toward the end of 2020, followed by revenue growth in FY2021.
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deebbbfa-74ea-4740-810f-bdca440a64a1
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727696.0
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2020-08-19 00:00:00 UTC
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10 Buy-and-Hold Stocks to Own Forever
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DEO
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https://www.nasdaq.com/articles/10-buy-and-hold-stocks-to-own-forever-2020-08-19
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s note: “10 Buy-and-Hold Stocks to Own Forever” was previously published in May 2020. It has since been updated to include the most relevant information available.
Investing to “buy and hold” is trickier than it looks. The increasing pace of technological change means even the most successful, dominant companies have to continually adapt to keep up. Industries like energy, real estate and even consumer products are facing potentially significant long-term changes going forward.
In any era, amassing a collection of retirement stocks simply by buying the best companies and holding them for years can be a risky endeavor.
General Motors (NYSE:GM) was a classic “widows and orphans” stock until the last decade when GM wound up going bankrupt. United States Steel (NYSE:X) once was a pillar of corporate America and a buy-and-hold stock. Polaroid and Eastman Kodak were once blue-chip stocks. Both went bankrupt as cameras changed from film to digital.
9 Companies to Invest In as U.S.-China Relations Deteriorate
But there still are stocks to buy and hold out there that can last forever, while offering dividend income along the way.
Here are ten such retirement stocks to buy and hold forever.
Bank of America (BAC)
Source: Tero Vesalainen / Shutterstock.com
Dividend Yield: 2.82%
It might seem strange to open the list with Bank of America (NYSE:BAC). After all, we’re only a bit more than a decade on from the financial crisis.
During that crisis, BofA acquisition Countrywide Financial blew up in spectacular fashion, after pioneering many of the risky tactics that led to the bubble and subsequent bust.
But this is a different BofA.
Net consumer charge-offs hit a decade-long low last year. Its performance on credit metrics is strong. Government regulations have been criticized as slowing growth — but they’ve undoubtedly lowered risk as well, even if observers might argue that a better balance is needed.
No less than Warren Buffett is now BofA’s largest shareholder, through his Berkshire Hathaway Inc. (NYSE:BRK.A, NYSE:BRK.B). And the Oracle of Omaha is fond of saying that his favorite holding period is “forever.”
That seems likely true for BAC stock as well.
Diageo (DEO)
Source: IgorGolovniov / Shutterstock.com
Change has come to the alcohol industry, with the number of breweries exploding worldwide and new distilleries popping up as well.
The brands owned by Diageo (NYSE:DEO) are well-positioned to adapt to shifting tastes.
Diageo owns classic brands like Johnnie Walker whisky, Tanqueray gin, Smirnoff vodka, and Harp and Guinness beer, among many others. What most have in common is a timeless quality and worldwide brand recognition.
As a result, while beverage giants like Coca-Cola (NYSE:KO) and Anheuser Busch InBev (NYSE:BUD) have struggled with profit growth, Diageo grew operating profits by 5.8% in fiscal 2019 and expects consistent growth going forward.
8 Dividend Stocks That Look Too Generous
Yet with a trailing multiple of 22.1 and a dividend yield of more than 2%, Diageo stock isn’t all that dearly valued. Long-term investors would do well to own DEO and perhaps use the dividends to buy a bottle or two of fine whisky.
Medtronic (MDT)
Source: JHVEPhoto / Shutterstock.com
Dividend Yield: 2.28%
In this day and age, the U.S. healthcare market, in particular, seems potentially volatile.
Concerns about increased spending and political battles over the Affordable Care Act create more questions than answers.
But even with that uncertainty, Medtronic (NYSE:MDT) isn’t going anywhere. The company’s devices are an integral part of modern medicine, ranging from pacemakers to stents to bone grafts to imaging systems.
Even the risks involved in the sector look priced into MDT. Medtronic’s days of double-digit annual growth may well be behind it, but it’s not finished increasing earnings or dividends. MDT stock likely isn’t finished rising, either.
NextEra Energy (NEE)
Source: Shutterstock
Dividend Yield: 1.98%
Utility stocks are among the most common safe, buy-and-hold stocks. NextEra Energy (NYSE:NEE) is now the largest electric utility in the U.S. by market capitalization. That might actually be the only problem with NEE stock.
After cratering in March, NextEra shares have rebounded quite well, given how tough it has been for other energy companies. Potential valuation concerns aside, NextEra looks like a winner. It serves customers in the southern Florida region, still one of the nation’s fastest-growing areas.
A 39 P/E multiple is high for the space but not outlandishly so. And a nearly 2% dividend yield provides income along the way.
The 6 Best Solar Stocks to Buy Right Now
Investors looking for value in the space might look for a smaller play like cheaper Dominion Energy (NYSE:D). But it’s usually worth paying for quality, and NextEra Energy looks like one of the best utility stocks out there.
McCormick & Company (MKC)
Source: Shutterstock
Dividend Yield: 1.22%
McCormick & Company (NYSE:MKC) is another quality company whose valuation might spook some investors. But MKC stock very rarely is offered cheaply.
The company’s market leadership in spices and seasonings provides both an impressive moat and protection against economic downturns. MKC stock did dip after the company acquired French’s mustard and Frank’s RedHot sauce from Reckitt Benckiser (OTCMKTS:RBGLY) at a price that looked a bit high to many investors. But MKC has recovered those gains and then some.
Top-line growth for McCormick likely isn’t going to be explosive, but it will be steady. The same has been true of MKC stock, which has returned an average of 13% a year over the past decade, including dividends.
With continuous cost-cutting initiatives, the contribution from the acquired brands and organic growth (and growth in organic products), MKC still should be able to provide double-digit annual returns going forward as well.
Allstate (ALL)
Source: Shutterstock
Dividend Yield: 2.28%
Allstate Corp (NYSE:ALL) long has used the tagline, “You’re in good hands,” and it’s true for Allstate investors as well.
ALL stock has almost quadrupled from late-2011 lows. And there could be more upside to come. After all, Allstate isn’t particularly expensive, trading at a 7 P/E.
Once any short-term worries subside, ALL should resume its march upward.
International Flavors & Fragrances (IFF)
Source: Shutterstock
Dividend Yield: 2.51%
International Flavors & Fragrances (NYSE:IFF) is a company most consumers encounter every day without knowing it and many investors aren’t exactly hip to it, either.
As its name suggests, the company develops flavors & fragrances across 13 categories, including cosmetics, perfumes, beverages and sweet flavors.
Sales and earnings have increased consistently and so has IFF’s share price. At a 20.75 P/E, IFF does look a bit pricey. But, as with McCormick and other stocks on this list, investors should pay for quality.
8 Cheap Stocks to Keep on Your Short List
IFF’s hidden, but key role, in so many industries, gives it a great deal of protection against both competition and macro factors. Acquisitions and a growing cosmetic additive business both provide room for growth.
Consumers may not know IFF, but investors should.
Lamb Weston (LW)
Source: Shutterstock
Dividend Yield: 1.45%
Lamb Weston (NYSE:LW) was spun off from Conagra Brands (NYSE:CAG) last year. Lamb Weston is the No. 1 potato producer in the United States. In fact, it manufactures the well-known fries at McDonald’s (NYSE:MCD), among other restaurant chains.
Lamb Weston also has a consumer business (including a small segment that manufactures frozen vegetables), while serving restaurants of all sizes. Health concerns might seem a long-term headwind against the business, but growth has been steady for years, and margins continue to improve.
LW is targeting international markets for growth, as French fries have much more limited penetration, while international audiences generally are intrigued by Americanized products.
Despite growth and leading market share, LW stock looks a lot cheaper than it has in awhile, trading at about 17 times next year’s earnings. The company did pick up a fair amount of debt in the CAG spinoff. But it’s paying that debt down, which should lower interest expense and boost cash flow going forward.
With many similar stocks trading at much higher multiples, LW seems to have room for upside. And international growth should offset any health-related concerns in the U.S., should they arise. America’s love affair with French fries isn’t going to suddenly end, and that should ensure years of stability for Lamb Weston at least.
Fortune Brands (FBHS)
Source: Shutterstock
Dividend Yield: 1.14%
Investors are commonly advised to diversify their portfolio. Fortune Brands Home & Security (NYSE:FBHS) has done just that.
The company operates in four segments: Cabinets, Plumbing, Doors, and Security. Among its well-known brands are Moen in plumbing, and MasterLock in security.
FBHS is more of a cyclical stock than most on this list, and the company no doubt has benefited from the steady if slow, housing recovery in the U.S.
But the company’s products also generate relatively stable replacement demand, and the dividend provides modest, but growing, income.
7 Innovative Stocks to Buy That Are Pushing the Envelope
Fortune Brands has been an impressive company since its founding and a solid stock since its 2011 IPO. There may be a bit more volatility here, but that’s a worthwhile price to pay for long-term investors. There’s enough value in Fortune Brands to ride out any market jitters.
Republic Services (RSG)
Source: Shutterstock
Dividend Yield: 1.91%
Republic Services (NYSE:RSG) is a bit smaller and likely a lot less well-known than rival Waste Management (NYSE:WM). But in this case, that’s not necessarily a bad thing.
Republic Services has outgrown its larger competitor in both sales and earnings over the past five years. RSG stock has modestly outperformed WM over the same period as well. Investors appear to believe that will continue, as Republic Services is valued a bit higher than Waste Management, at least based on forward-earnings multiples.
Both RSG and WM are solid long-term plays. Contracted revenue and steady demand should support both companies for years to come. There’s room for further acquisitions in a relatively fragmented space. Republic Services gets the nod here due to slightly better growth and more room for margin improvement.
But investors looking for safe, stable growth can’t go wrong with either RSG or WM.
As of this writing, Vince Martin was long MKC.
The post 10 Buy-and-Hold Stocks to Own Forever 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.
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Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Change has come to the alcohol industry, with the number of breweries exploding worldwide and new distilleries popping up as well. The brands owned by Diageo (NYSE:DEO) are well-positioned to adapt to shifting tastes. Long-term investors would do well to own DEO and perhaps use the dividends to buy a bottle or two of fine whisky.
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Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Change has come to the alcohol industry, with the number of breweries exploding worldwide and new distilleries popping up as well. The brands owned by Diageo (NYSE:DEO) are well-positioned to adapt to shifting tastes. Long-term investors would do well to own DEO and perhaps use the dividends to buy a bottle or two of fine whisky.
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Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Change has come to the alcohol industry, with the number of breweries exploding worldwide and new distilleries popping up as well. The brands owned by Diageo (NYSE:DEO) are well-positioned to adapt to shifting tastes. Long-term investors would do well to own DEO and perhaps use the dividends to buy a bottle or two of fine whisky.
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Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Change has come to the alcohol industry, with the number of breweries exploding worldwide and new distilleries popping up as well. The brands owned by Diageo (NYSE:DEO) are well-positioned to adapt to shifting tastes. Long-term investors would do well to own DEO and perhaps use the dividends to buy a bottle or two of fine whisky.
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727697.0
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2020-08-17 00:00:00 UTC
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Consumer Sector Update for 08/17/2020: DEO,OSTK,JD,CCL,CUK
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DEO
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https://www.nasdaq.com/articles/consumer-sector-update-for-08-17-2020%3A-deoostkjdcclcuk-2020-08-17
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nan
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nan
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Consumer stocks pared their prior advance in Monday trading, with the SPDR Consumer Staples Select Sector ETF climbing 0.6% while the SPDR Consumer Discretionary Select Sector ETF was posting a 1.3% gain.
In company news, Diageo (DEO) was hanging on to a 1.1% gain shortly before Monday's closing bell after announcing plans to buy Aviation Gin and its majority owner, Davos Brands, for up to $610 million. Under terms of the proposed transaction, Diageo will make a $335 million initial payment for the craft distillery company, which is also eligible for up to $275 million in additional payments based on its financial performance over the next 10 years.
Overstock.com (OSTK) surged over 27% to a new record high of $118.88 a share after Piper Sandler Monday began analyst coverage of the online retailer with an overweight stock rating and a $140 price target
JD.com (JD) rose 7.5% after the Chinese e-commerce company reported improved Q2 financial results compared with year-ago levels and also beating Wall Street estimates. Excluding one-time items, it earned RMB3.51 per American depositary share during the three months ended June 30, up from RMB2.30 per ADS during the same quarter last year and exceeding the Capital IQ consensus expecting RMB2.63 per ADS. Revenue increased 34% year-over-year to RMB201.1 billion, also topping the RMB190 billion analyst mean.
Carnival (CCL,CUK) fell almost 5% after the vacation cruise company late Friday priced a $900 million private placement of 9.875% second-priority senior secured notes due 2027. Net proceeds will be used for general corporate purposes, 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.
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In company news, Diageo (DEO) was hanging on to a 1.1% gain shortly before Monday's closing bell after announcing plans to buy Aviation Gin and its majority owner, Davos Brands, for up to $610 million. Overstock.com (OSTK) surged over 27% to a new record high of $118.88 a share after Piper Sandler Monday began analyst coverage of the online retailer with an overweight stock rating and a $140 price target JD.com (JD) rose 7.5% after the Chinese e-commerce company reported improved Q2 financial results compared with year-ago levels and also beating Wall Street estimates. Carnival (CCL,CUK) fell almost 5% after the vacation cruise company late Friday priced a $900 million private placement of 9.875% second-priority senior secured notes due 2027.
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In company news, Diageo (DEO) was hanging on to a 1.1% gain shortly before Monday's closing bell after announcing plans to buy Aviation Gin and its majority owner, Davos Brands, for up to $610 million. Consumer stocks pared their prior advance in Monday trading, with the SPDR Consumer Staples Select Sector ETF climbing 0.6% while the SPDR Consumer Discretionary Select Sector ETF was posting a 1.3% gain. Revenue increased 34% year-over-year to RMB201.1 billion, also topping the RMB190 billion analyst mean.
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In company news, Diageo (DEO) was hanging on to a 1.1% gain shortly before Monday's closing bell after announcing plans to buy Aviation Gin and its majority owner, Davos Brands, for up to $610 million. Consumer stocks pared their prior advance in Monday trading, with the SPDR Consumer Staples Select Sector ETF climbing 0.6% while the SPDR Consumer Discretionary Select Sector ETF was posting a 1.3% gain. Under terms of the proposed transaction, Diageo will make a $335 million initial payment for the craft distillery company, which is also eligible for up to $275 million in additional payments based on its financial performance over the next 10 years.
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In company news, Diageo (DEO) was hanging on to a 1.1% gain shortly before Monday's closing bell after announcing plans to buy Aviation Gin and its majority owner, Davos Brands, for up to $610 million. Consumer stocks pared their prior advance in Monday trading, with the SPDR Consumer Staples Select Sector ETF climbing 0.6% while the SPDR Consumer Discretionary Select Sector ETF was posting a 1.3% gain. Under terms of the proposed transaction, Diageo will make a $335 million initial payment for the craft distillery company, which is also eligible for up to $275 million in additional payments based on its financial performance over the next 10 years.
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b2badfe9-df78-487a-960f-0379f99f3b37
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727698.0
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2020-08-17 00:00:00 UTC
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Diageo Spends Up to $610 Million for Ryan Reynolds' Gin Company
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DEO
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https://www.nasdaq.com/articles/diageo-spends-up-to-%24610-million-for-ryan-reynolds-gin-company-2020-08-17
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The world's largest liquor maker, Diageo (NYSE: DEO), said it is buying Aviation American Gin through an acquisition of Aviation Gin and Davos Brands. Aviation American Gin is majority owned by Davos Brands and co-owned and promoted by Ryan Reynolds.
The deal includes an initial payment of $335 million, and a potential additional $275 million, based on the performance of Aviation American Gin over the next 10 years. Other brands in the Davos Brands portfolio included in the transaction are Astral Tequila, Sombra Mezcal, and TYKU Sake.
Image source: Diageo.
Diageo, which makes Johnnie Walker whisky, Gordon's and Tanqueray gin, and Guinness beer, recently reported a 23% sales drop in the half-year period ending June 30, 2020. North American sales performed better than every other geographic region, the company said. Diageo CEO Ivan Menezes believes this acquisition will continue driving that strength. "We are confident that Aviation American Gin will continue to shape and drive the growth of super premium gin in North America," he said in a statement.
Aviation American is a craft gin that Diageo says is the second-largest and one of the fastest-growing super premium gin brands in the U.S. It more than doubled its sales volume in 2019, and contributed 40% of the growth experienced by the super premium gin segment.
Reynolds said he became an owner of Aviation gin about two years ago because of his love of the product. It is described as an American-style gin that is "crafted with a blend of botanicals, with subtle juniper notes, delivering a smooth balanced flavor profile."
10 stocks we like better than Diageo
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Howard Smith has no position in any of the stocks mentioned. 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.
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The world's largest liquor maker, Diageo (NYSE: DEO), said it is buying Aviation American Gin through an acquisition of Aviation Gin and Davos Brands. Aviation American Gin is majority owned by Davos Brands and co-owned and promoted by Ryan Reynolds. Diageo, which makes Johnnie Walker whisky, Gordon's and Tanqueray gin, and Guinness beer, recently reported a 23% sales drop in the half-year period ending June 30, 2020.
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The world's largest liquor maker, Diageo (NYSE: DEO), said it is buying Aviation American Gin through an acquisition of Aviation Gin and Davos Brands. North American sales performed better than every other geographic region, the company said. "We are confident that Aviation American Gin will continue to shape and drive the growth of super premium gin in North America," he said in a statement.
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The world's largest liquor maker, Diageo (NYSE: DEO), said it is buying Aviation American Gin through an acquisition of Aviation Gin and Davos Brands. "We are confident that Aviation American Gin will continue to shape and drive the growth of super premium gin in North America," he said in a statement. Aviation American is a craft gin that Diageo says is the second-largest and one of the fastest-growing super premium gin brands in the U.S.
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The world's largest liquor maker, Diageo (NYSE: DEO), said it is buying Aviation American Gin through an acquisition of Aviation Gin and Davos Brands. "We are confident that Aviation American Gin will continue to shape and drive the growth of super premium gin in North America," he said in a statement. Aviation American is a craft gin that Diageo says is the second-largest and one of the fastest-growing super premium gin brands in the U.S.
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d1666441-1438-4f69-bd19-96f33aeeb3b8
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727699.0
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2020-08-11 00:00:00 UTC
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7 Super Stable Dividend Stocks to Buy Now
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DEO
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https://www.nasdaq.com/articles/7-super-stable-dividend-stocks-to-buy-now-2020-08-11
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
[Editor’s note: “7 Super Stable Dividend Stocks to Buy Now” was previously published in March 2020. It has since been updated to include the most relevant information available.]
It’s been a long few months for the market as COVID-19 worries have taken the main stage.
Before things tanked, the stock market, as measured by the S&P 500, was up 15% just since October. Some sectors of the economy, like software-as-a-service stocks, were up much more than that. However, those days are over and many investors are looking for a safe harbor.
Even as the markets make their way back, there are lots of people who are understandably gunshy.
10 Small-Cap Stocks Ready to Become Large Caps
One way to deal with this uncertainty is to move into safer dividend stocks. This way, you still have exposure to the stock market as prices begin to recover.
On the other hand, if the market takes another tumble, these defensive names should fall much less than the overall market. Regardless of whatever may come, they’ll kick out a steady income stream that helps buffer your portfolio from market volatility.
Walmart (WMT)
Source: Jonathan Weiss / Shutterstock.com
Dividend Yield: 1.64%
If you’re thinking of super safe dividend stocks, your mind may start out with the Dividend Aristocrats. These are in fact true royalty — the select few companies that have managed to increase their dividends annually for at least 25 years in a row. At present, there are around 55 American firms that qualify.
Of these, only two — yes, two — managed to generate a positive total return between October 2007, when the stock market peaked, and the March 2009 Financial Crisis bottom. Walmart (NYSE:WMT) was the winner of the bunch, with its stock actually going up 7% over that span. Needless to say, generating a positive return during a time when the stock market plunges 50% is a most remarkable feat.
Making it doubly-impressive, chief Walmart rival Target (NYSE:TGT) plummeted 61% over the same span. Walmart’s unique blend of lowest-cost supply chain and unrivaled focus on customer value delivered the goods during the economic downturn. Recently, investors have focused more on Walmart’s possibilities in the e-commerce space. But don’t forget that when it comes to delivering value, Walmart is still the proven king of retail during recessions.
Colgate (CL)
Source: Isabelle OHara/Shutterstock.com
Dividend Yield: 2.30%
Colgate (NYSE:CL) was another of the best-performing Dividend Aristocrats during the Financial Crisis.
It didn’t eke out a positive return over the stretch, but it only fell 20%. That’s exactly the sort of thing you want from super safe dividend stocks.
What makes Colgate so safe? To put it simply, the company has a ridiculously strong moat. It sells more than 40% of the world’s toothpaste and a third of its manual toothbrushes. Go to nearly every corner of the world, and you’ll find Colgate products. It’s one of the world’s most omnipresent American brands.
Combine that with a market that never changes — people need to clean their teeth regardless of what else happens in the world — and you have unmatched safety.
7 Travel Stocks to Buy Banking On Pent-Up Demand
Colgate stock used to be quite expensive. But after five years of the share price going nowhere, Colgate is more reasonably-valued now. It pays a 2.3% dividend and could offer surprisingly high growth in the coming years as emerging markets pick up steam.
It also has made a play in the more competitive though higher-growth pet food market, and success there could energize the stock. Even if that fails, however, the core toothpaste market will continue carrying the stock through any storms that may come.
Pepsico (PEP)
Source: FotograFFF / Shutterstock.com
Dividend Yield: 3.01%
Pepsico (NYSE:PEP) may not look like the cheapest dividend stock out there at first glance. Yes, it is selling for more than 25x earnings. And yes, it is also selling near its all-time high price. From a short-term trading perspective, this probably isn’t the best moment to get into Pepsico stock.
For longer-term investors, however, there’s still a lot to like. The company’s snack food division has given it more resilience and growth than its arch-rival beverages company.
Additionally, due to its heavy exposure to emerging markets, Pepsi has seen a major currency headwind in recent years. With the U.S. dollar near 20-year highs, this drag is likely to reverse at some point, leading to a significant earnings boost.
Then there’s the dividend yield. Pepsico has yielded between 2.5% and 3.2% for virtually all of the past decade. This means that while Pepsico’s stock price has appreciated dramatically, it is actually backed up by the rise in its earnings and dividends over the past 10 years. That’s definitely not the case for many other defensive slower-growing companies.
If you can get Pepsico on a pullback, all the better. But even at this price, it’s not a bad choice for investors seeking safe dividends.
Diageo (DEO)
Source: IgorGolovniov / Shutterstock.com
Dividend Yield: 2.64%
Moving to harder beverages, we have international spirits leader Diageo (NYSE:DEO). Even, or maybe especially, during hard times, DEO is one of the most reliavle dividend stocks to buy.
The maker of Johnnie Walker, Crown Royal, Smirnoff, and Guinness, among other brands, has gone back on sale. Diageo’s stock price has slipped in recent weeks.
This makes some sense; Diageo has built an increasing portion of its business in recent years selling to wealthy customers in leading Asian markets. Sales in places such as Hong Kong have plummeted due to the virus.
As is always the case for the alcohol industry, however, setbacks tend to not last long. Liquor consumption is not closely linked to the economy or political developments, thus making these the safest sorts of dividend stocks.
7 Sin Stocks Whose Profits Are Too Irresistible to Pass Up
Diageo has a track record of raising its dividend every year so far this century (as measured in its home currency of British pounds) making it a reliable choice for steadily increasing income. While Diageo may suffer a bad quarter or two thanks to the virus-driven sales slowdown, this will be a non-event in due time for the company’s loyal shareholders.
Enbridge (ENB)
Source: Shutterstock
Dividend Yield: 6.94%
Some investors have given up on oil stocks given the carnage in recent years. And that’s an understandable reaction. Truth be told, there are still super safe dividend stocks in the sector, namely in the pipeline space.
For example, look at Enbridge (NYSE:ENB). Enbridge and other Canadian energy giants have faced a longer downturn in their market conditions already than their U.S. peers have. This has led to more capital discipline, thus these firms are more likely to turn a corner first.
This improved capital position is leading to another great thing for income investors: dividend increases. In fact, this year, Enbridge announced a 10% dividend hike. That is, by the way, its third year in a row of double-digit dividend hikes despite the hard times for the energy industry in general.
Take one of the best companies in the industry, and then combine it with an upturn in the long-beleaguered oil and gas markets, and Enbridge stock could deliver a strong upside in addition to its fat yield.
Unilever (UL)
Source: JHVEPhoto/Shutterstock.com
Dividend Yield: 3.82%
Unilever (NYSE:UL) is one of the world’s largest consumer products companies. Selling everything from energy drinks to ice cream, soap, cleaning supplies, and more, the company almost undoubtedly has some products in your pantry or laundry room.
Companies like Unilever are known for their rock-solid dividend records. In fact, 2020 should mark the company’s 4oth consecutive year of increasing its dividend; that’s a generous offer in today’s market.
Sure, some folks will complain that Unilever hasn’t shown a lot of growth in recent years. And that’s a fair criticism. At 25x earnings, Unilever stock doesn’t look particularly cheap, either.
8 5G Stocks to Get Rich Off Our Information Addiction
If you’re just here for one of the safest blue-chip dividends around, however, it’s hard to go wrong with Unilever.
Compared to a Certificate of Deposit or government bond, Unilever’s 3.8% dividend with annual increases to that figure makes for a compelling alternative.
People’s United Financial (PBCT)
Source: Shutterstock
Dividend Yield: 6.23%
Remember how I said there were only two Dividend Aristocrats that made it through the Great Financial Crisis with a positive total return? The well-known one is Walmart, of course. But a plucky Connecticut bank, People’s United Financial (NASDAQ:PBCT), made it as well. PBCT stock managed a 2% positive return during that brutal span from late 2007 to the March 2009 low.
This is doubly amazing because People’s United is a bank, after all. Almost all the big banks were in desperate straits, if not outright bust at that point. But People’s United proved its mettle as a super-stable dividend company during the crisis.
Its banking market is the northeast, particularly in wealthy New York City and Boston suburbs. As a result, its well-off customers fared relatively well despite the crisis. And its lending book, largely vanilla home mortgages, was built to withstand a downturn.
People have the perception that banks are dangerous black boxes. That’s true of many too-big-to-fail banks. However, for People’s United, a crisis is actually an opportunity because they remain solvent and can absorb more business from their struggling peers.
In any case, they kept their now-27 year annual dividend hike streak alive during 2008 and 2009. PBCT stock now yields 6.23% and comes with an annual, if modest, increase. The knock on the bank now is that it is too conservative and doesn’t grow quickly enough. But as 2008 proved, that “weakness” is in fact the bank’s true strength.
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. At the time of this writing, he owned ENB, PBCT, UL, and DEO stock.
The post 7 Super Stable Dividend 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.
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Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Dividend Yield: 2.64% Moving to harder beverages, we have international spirits leader Diageo (NYSE:DEO). Even, or maybe especially, during hard times, DEO is one of the most reliavle dividend stocks to buy. At the time of this writing, he owned ENB, PBCT, UL, and DEO stock.
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Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Dividend Yield: 2.64% Moving to harder beverages, we have international spirits leader Diageo (NYSE:DEO). Even, or maybe especially, during hard times, DEO is one of the most reliavle dividend stocks to buy. At the time of this writing, he owned ENB, PBCT, UL, and DEO stock.
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Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Dividend Yield: 2.64% Moving to harder beverages, we have international spirits leader Diageo (NYSE:DEO). Even, or maybe especially, during hard times, DEO is one of the most reliavle dividend stocks to buy. At the time of this writing, he owned ENB, PBCT, UL, and DEO stock.
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Diageo (DEO) Source: IgorGolovniov / Shutterstock.com Dividend Yield: 2.64% Moving to harder beverages, we have international spirits leader Diageo (NYSE:DEO). Even, or maybe especially, during hard times, DEO is one of the most reliavle dividend stocks to buy. At the time of this writing, he owned ENB, PBCT, UL, and DEO stock.
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