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2019-02-12 00:00:00 UTC
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Molson Coors (TAP) Q4 Earnings Beat, Soft Volume Hurts Sales
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DEO
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https://www.nasdaq.com/articles/molson-coors-tap-q4-earnings-beat-soft-volume-hurts-sales-2019-02-12
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Molson Coors Brewing CompanyTAP has reported fourth-quarter 2018 results, wherein the bottom line surpassed estimates while the top line lagged. This marked the company's third straight quarter of positive earnings surprise. Meanwhile, sales missed estimates after two consecutive beats. The top line was impacted by soft volume in the United States and Canada, which also led to a decline in global brand volume.
Consequently, shares of Molson Coors declined nearly 5.1% in the pre-market trading session. However, shares of this Zacks Rank #3 (Hold) company have gained 1.3% in the past three months against the industry 's 3.9% decline.
Delving Deeper
Molson Coors' underlying adjusted earnings of 84 cents per share rose about 35.5% year over year and surpassed the Zacks Consensus Estimate of 78 cents. The increase was attributed to positive global net pricing, increase in brand volume and base business performance in Europe and International, optimization of global market ing, lower G&A expenses, cost savings, lower interest expenses and reduced income tax expenses. This was partly negated by soft volume and cost inflation in the United States and Canada.
Molson Coors Brewing Company Price, Consensus and EPS Surprise
Molson Coors Brewing Company Price, Consensus and EPS Surprise | Molson Coors Brewing Company Quote
The aforementioned factors, except for lower interest expenses and reduced income tax expenses, also drove the company's underlying EBITDA. Underlying EBITDA was $487.7 million, reflecting an increase of 1.4% from the year-ago period. Further, underlying EBITDA rose 3.9% in constant currency.
Net sales declined 6.2% to $2,418.7 million, missing the Zacks Consensus Estimate of $2,530 million. The top-line miss can be attributed to lower volume in the United States and Canada, partly negated by higher pricing. On a constant-currency basis, net sales grew 5%.
Notably, net sales per hectoliter inched up 0.3% on a reported financial-volume basis. However, net sales per hectoliter on brand-volume basis declined 0.4% in constant currency, owing to unfavorable sales mix across segments. This was partly offset by increased pricing. Excluding the impact of the new revenue recognition accounting standard, net sales per hectoliter (brand-volume basis) was down 0.3%.
Molson Coors' worldwide brand volume declined 1.5% to 22 million hectoliters due to soft volume in the United States and Canada, offset by the strength in Europe and International businesses. Global priority brand volume dipped 1.7% while financial volume declined 6.5% to 21.6 million hectoliters. Financial volume was hurt by volume decline in the United States due to the timing of wholesaler inventories, alongside soft volume in Canada and International. This was partly compensated by volume growth in Europe.
Segmental Details
The company operates through the following geographical segments.
Canada: Molson Coors' Canada net sales dipped 8.8% to $322 million. Net sales per hectoliter (brand-volume basis) slipped 0.7% in local currency due to the adoption of the new revenue accounting standard. Further, Canada brand volume fell 2% on account of volume constraints in the West and Ontario, offset by growth in Quebec. Meanwhile, financial volume decreased 5.7%, owing to soft contract manufacturing and brand volume as well as distributor inventory reductions. Underlying EBITDA declined 12% to $64.7 million.
United States: Molson Coors now has complete ownership rights to all the brands in the MillerCoors portfolio for the U.S. market. Net sales for the segment decreased 7% to $1,603.8 million. Domestic net sales per hectoliter (on a brand-volume basis), which excludes contract brewing and company-owned-distributor sales, improved 2.7%.
Excluding the new revenue accounting standard, net sales per hectoliter (on brand volume) increased 2.1%. The upside stemmed from favorable pricing, which was partly countered by a negative mix.
However, U.S. brand volume decreased 5.1%, accountable to soft premium light and economy segment volumes. Sales-to-wholesalers volumes (STWs), excluding contract brewing, declined 8.9% on account of lower brand volume and quarterly timing of wholesaler inventories. Nonetheless, the segment's underlying EBITDA grew 6.4% to $370.1 million.
Europe: The segmen t report ed net sales decline of 1.9% to $464.3 million. Europe net sales per hectoliter (brand-volume basis) fell 2.5% in local currency due to negative pricing, resulting from the adoption of the new excise-tax guidelines in one of the company's European markets and higher investment in First Choice Agenda this year.
Europe brand volume rose 3.3%, courtesy of growth in above-premium and core brands. Financial volume increased 3%. Underlying EBITDA declined 7.8% year over year to $80.7 million.
International: Net sales for the segment declined 19.2% to $57.7 million. Net sales per hectoliter, on a brand-volume basis, declined 20.2%, owing to unfavorable sales mix and shifting to local production in Mexico. This was partly negated by positive pricing. Further, International brand volume inched up 1.1%, backed by organic growth in focus markets. The segment's underlying EBITDA was $2.8 million versus $0.4 million in the year-ago period.
Other Financial Updates
Molson Coors ended the year with cash and cash equivalents of $1,058 million and total debt of $10,488 million. This resulted in net debt of $9,430 million as of Dec 31, 2018.
Net cash from operating activities for 2018 was $2.3 billion, which marks a significant improvement from the year-ago period. The company generated underlying free cash flow of $1.4 billion.
In 2018, the company generated $240 million of cost savings, bringing the total cost savings under the current program to $495 million.
Outlook
Management outlined the guidance for 2019. Molson Coors anticipates generating cost savings of roughly $205 million in 2019, remaining on track with the target of generating total cost savings of $700 million for the 2017-2019 period. In 2019, the company expects to deliver underlying free cash flow of around $1.4 billion (plus or minus 10%).
Capital spending is expected to be roughly $670 million (plus or minus 10%). Underlying tax rate for the year is likely to be 18-22%. Additionally, net interest expenses are projected to be $300 million (plus or minus 5%).
Further, the company estimates double-digit percentage increase for underlying EBITDA in constant currency for the International business.
It plans to reinstitute a dividend payout target of 20-25% of annual trailing underlying EBITDA upon achieving 3.75x leverage, which is likely to occur by the middle of 2019.
Don't Miss These Better-Ranked Beverage Stocks
Diageo plc DEO , with long-term earnings per share growth rate of 8.4%, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Carlsberg AS CABGY , with long-term earnings per share growth rate of 5%, presently carries a Zacks Rank #2.
Monster Beverage Corporation MNST , with long-term earnings per share growth rate of 16%, currently carries a Zacks Rank #2.
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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.
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 Beverage Stocks Diageo plc DEO , with long-term earnings per share growth rate of 8.4%, currently carries a Zacks Rank #2 (Buy). Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Carlsberg AS (CABGY): Free Stock Analysis Report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Monster Beverage Corporation (MNST): Get Free Report To read this article on Zacks.com click here. Europe net sales per hectoliter (brand-volume basis) fell 2.5% in local currency due to negative pricing, resulting from the adoption of the new excise-tax guidelines in one of the company's European markets and higher investment in First Choice Agenda this year.
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Carlsberg AS (CABGY): Free Stock Analysis Report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Monster Beverage Corporation (MNST): Get Free Report To read this article on Zacks.com click here. Don't Miss These Better-Ranked Beverage Stocks Diageo plc DEO , with long-term earnings per share growth rate of 8.4%, currently carries a Zacks Rank #2 (Buy). The increase was attributed to positive global net pricing, increase in brand volume and base business performance in Europe and International, optimization of global market ing, lower G&A expenses, cost savings, lower interest expenses and reduced income tax expenses.
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Carlsberg AS (CABGY): Free Stock Analysis Report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Monster Beverage Corporation (MNST): Get Free Report To read this article on Zacks.com click here. Don't Miss These Better-Ranked Beverage Stocks Diageo plc DEO , with long-term earnings per share growth rate of 8.4%, currently carries a Zacks Rank #2 (Buy). Molson Coors Brewing Company Price, Consensus and EPS Surprise Molson Coors Brewing Company Price, Consensus and EPS Surprise | Molson Coors Brewing Company Quote The aforementioned factors, except for lower interest expenses and reduced income tax expenses, also drove the company's underlying EBITDA.
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Don't Miss These Better-Ranked Beverage Stocks Diageo plc DEO , with long-term earnings per share growth rate of 8.4%, currently carries a Zacks Rank #2 (Buy). Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Carlsberg AS (CABGY): Free Stock Analysis Report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Monster Beverage Corporation (MNST): Get Free Report To read this article on Zacks.com click here. Net sales declined 6.2% to $2,418.7 million, missing the Zacks Consensus Estimate of $2,530 million.
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2019-02-08 00:00:00 UTC
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The 10 Best Consumer Stocks to Buy for 2019
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DEO
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https://www.nasdaq.com/articles/10-best-consumer-stocks-buy-2019-2019-02-08
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The rough end to 2018 put analysts on their toes as they looked ahead toward 2019. Some experts suggested that with U.S. GDP growth projected to slow, investors should rotate into more defensive sectors such as consumer staples and healthcare. However, others said the markets would surprise the pessimists with a robust recovery.
"Based on fundamentals, I don't think the pullback we had in this market was ever justified. Markets will do what they'll do. I think you have significant upside here," Jonathan Golub, chief U.S. equities strategist at Credit Suisse, told CNBC on Dec. 31. "Therefore, we would think that the bottom has been put in this market."
If you lean toward 2019 being a bounce-back year, consumer stocks are an excellent choice to ride the wave.
One metric that drives the share prices of consumer stocks is the strength of the job market. If Americans are employed and their wages are growing, that will help consumer spending. Well, the U.S. has trounced expectations in two nonfarm payrolls reports announced this year (December and January), which should go a long way toward strengthening consumer spending trends.
Here are 10 of the best consumer stocks to buy for 2019. Some of these stocks are more defensive in nature - better suited for a volatile year. A few others are more aggressive and could ride a bullish wave better than most.
SEE ALSO: 57 Dividend Stocks You Can Count On in 2019
Market value: $93.3 billion
Dividend yield: 1.9%
Forward P/E: 21.3
Analysts' opinion: 10 buy, 2 overweight, 9 hold, 2 underweight, 0 sell
When it comes to beer, wine and spirits companies, only a couple of companies are near the size and scale of Diageo ( DEO , $153.67) - the name behind Johnnie Walker scotch, Crown Royal Canadian whisky and Guinness beer.
However, regarding profitability, Diageo has it over the rest of the alcoholic-beverages industry. Its 31% operating margin is 500 basis points higher than Pernod Ricard ( PDRDY ), one of its peers in the spirits business, and a fraction higher than mega-brewer Anheuser-Busch InBev ( BUD ).
Diageo has plenty going for it at the moment. For one, it announced in December that it plans to build a new distillery in Kentucky to house additional production of hot-selling Bulleit bourbon. The $130 million facility should be up and running by 2021 and capable of producing 34 million liters of the American whiskey.
It also has a couple interesting "what-if" scenarios. Activist investor Elliott Management is going after Pernod Ricard at the moment, but Diageo could be the better target. Bernstein analyst estimates put Guinness' potential value at $10 billion as of 2015, and it likely could command more than that in a sale today. DEO also has been rumored to be looking for a partnership with a cannabis company similar to the ones Constellation Brands ( STZ ) and Molson Coors ( TAP ) entered. Nothing has materialized yet, but that may come in 2019.
Diageo boasts nearly two decades of uninterrupted dividend growth, making it a European Dividend Aristocrat . That makes DEO an excellent consumer stock for anyone seeking out stable income and reasonable capital appreciation.
SEE ALSO: 18 Dividend Aristocrats That Have Gone on Deep Discount
Market value: $55.5 billion
Dividend yield: 1.1%
Forward P/E: 28.5
Analysts' opinion: 14 buy, 3 overweight, 10 hold, 0 underweight, 1 sell
In good times and bad, people can't seem to go without their lipstick and cosmetics, which is excellent news if you're an Estee Lauder ( EL , $152.31) shareholder. 2018 wasn't a great year for the company's stock, which delivered a total return of just 3.4%, but that's far better than the 4.6% loss (including dividends) for the Standard & Poor's 500-stock index.
One area that should continue to drive Estee Lauder's growth in 2019 is travel retail, a segment of the retail industry that rarely gets any coverage, but one that continues to flourish. In December, the company opened a newly renovated 1,510-square-foot store at the Haitang Bay duty-free shopping complex in Sanya, China. It's Estee Lauder's largest travel retail location.
In addition to travel retail, the company continues to build an online presence both with its own e-commerce sites and through third-party sites which promote and sell its products. In more than 40 countries, customers can book appointments online to get makeup done in store, track company loyalty programs and use Estee Lauder's mobile sites to learn more about its products.
Estee Lauder typically provides ballast when the market is suffering, such as in 2008, when EL lost just 28% versus a 37% deficit for the S&P 500. But you can expect a much better year than that for EL in 2019.
SEE ALSO: 11 Great Stocks to Buy and Hold for the Next Decade
Market value: $33.0 billion
Dividend yield: 1.7%
Forward P/E: 18.1
Analysts' opinion: 18 buy, 3 overweight, 5 hold, 0 underweight, 0 sell
If investors were asked which non-cannabis company made the biggest splash in the cannabis industry in 2018, the top answer likely would be Constellation Brands ( STZ , $174.05).
STZ first jumped on the bandwagon in October 2017, taking a 9.9% stake in Canopy Growth ( CGC ) for $179 million. Then in August 2018, Constellation went from mildly interested in the cannabis space to completely sold on it, by acquiring an additional 104.5 million shares for $3.9 billion, raising its stake to 38%. It also was given an option to exercise 139.7 million warrants over the next three years that would give it majority control.
The deal was good for both companies.
Canopy got access to a world-class manufacturer and distributor of alcoholic beverages while Constellation obtained the cannabis company's expertise, which will come in handy for developing cannabis-infused drinks in time for Canadian legalization of edibles in October 2019.
"We're going to see this shift away from a culture which has had one legal psychoactive for social and leisure activities, being alcohol, to a culture where there's now a second psychoactive that's acceptable in those same situations," Dooma Wendschuh, co-founder and CEO of Toronto-based Province Brands, told Canada's National Post in December.
This will be an exciting year for the cannabis industry. Constellation Brands will benefit significantly by having a front-row seat.
SEE ALSO: The 25 Best S&P 500 Stocks of the Past 50 Years
Market value: $19.6 billion
Dividend yield: N/A
Forward P/E: 33.8
Analysts' opinion: 23 buy, 2 overweight, 10 hold, 0 underweight, 2 sell
Lululemon's ( LULU , $147.63) controversial founder, Chip Wilson, isn't involved with the business anymore, but remains its fourth-largest shareholder.
Where would Lululemon be with him still on board? "I think that the company would be a mindfulness company mostly that would be deep into yoga," Wilson told CNN Business recently. "I think it would be far more global than it is now. The company would have been worth 30, 40% more than it is now."
Wilson fails to mention that the athletic clothing company grew his wealth significantly since he stepped down from the company's board in 2015.
He also neglects to admit that the company's plan to hit $4 billion in annual revenue by the end of fiscal 2020 is ahead of schedule. In the fiscal year ended Feb. 3, LULU expects to generate annual revenue of $3.2 billion - 22% higher than a year earlier. Another year of 20% growth in fiscal 2019, and Lululemon will need just 4% growth in FY2020 to meet its ambitious target.
"We believe double-digit revenue growth can continue and see the 2020 objective $4 billion in revenue and implied earnings power of $5 as low hurdles," Stifel analyst Jim Duffy wrote in December. "With market tailwinds from growing global concern for health, fitness, and self-actualization, we believe Lululemon has a long runway for global growth and advocate owning shares as a core holding."
SEE ALSO: 20 Top Stock Picks the Analysts Love for 2019
Market value: $15.5 billion
Dividend yield: 1.5%
Forward P/E: 25.5
Analysts' opinion: 5 buy, 1 overweight, 13 hold, 1 underweight, 2 sell
Church & Dwight ( CHD , $62.58) - the consumer packaged goods company with brands such as Arm & Hammer baking soda, Oxi Clean stain remover and Trojan condoms - is the little engine that could. It delivered a total return of 32.8% in 2018, leaving most of Wall Street in its dust.
Longtime shareholders can attest to the stock's consistency. It hasn't had a negative year in the past decade, and it has generated a 10-year annualized total return of 17.7% - around 330 basis points clear of the index.
Why did Church & Dwight perform so well in 2018?
It continued to grow sales organically. In its fourth-quarter report, CHD said it grew organic sales by 4.3% in 2018, fueling overall revenue growth of 9.8%. The company sees organic sales continuing to increase by 3.5% in 2019. Conservative to a fault, Church & Dwight may just exceed this projection.
Internationally, business is even stronger, generating organic sales growth of 5% for the year. In August, Church & Dwight entered into a long-term cooperation agreement with Chinese consumer packaged goods company Shanghai Jahwa. It will be the company's omnichannel distributor for its baking soda, toothpaste, dry shampoo and feminine hygiene products for mainland China.
If you're looking to go defensive in 2019, you couldn't buy a better consumer stock.
SEE ALSO: 15 Consumer Stocks That Deliver Dividend Growth Like Clockwork
Market value: $6.5 billion
Dividend yield: N/A
Forward P/E: 15.9
Analysts' opinion: 7 buy, 0 overweight, 3 hold, 0 underweight, 0 sell
If there's a stock on this list that flies under the radar, St. Louis-based consumer packaged goods company Post Holdings ( POST , $96.63) would have to be it.
Post Holdings got its start in 2012 when it was spun off from its parent at the time, Ralcorp Holdings. However, the name Post has been around since the late 1890s, when C.W. Post introduced Grape-Nuts cereal.
The company finished its first fiscal year as an independent public company with $900 million in revenue. Six years and 15 acquisitions later, Post ended fiscal 2018 with more than $6 billion in revenue, operating several businesses in addition to its legacy Post-branded cereals.
Post Consumer Brands accounted for 29% of 2018's overall revenue, the largest segment of its business. In 2017, Post acquired Bob Evans Farms, a maker of vegetable-based side dishes and breakfast sausages, for $1.5 billion, adding a vital name to its refrigerated retail and foodservice business.
Although it did complete one acquisition in fiscal 2018, Post focused more of its attention on growing sales organically. It finished the fiscal year generating more than 50% of its EBITDA from businesses that are growing sales by more than 6% per year.
Post delivered a 12.5% total return for shareholders in 2018 - the third year of the past five in which it has produced double-digit gains.
SEE ALSO: 11 Stocks Warren Buffett Is Buying or Selling
Market value: $6.1 billion
Dividend yield: N/A
Forward P/E: 86.7
Analysts' opinion: 12 buy, 0 overweight, 4 hold, 0 underweight, 1 sell
If you're paying attention to the trade war between the U.S. and China, you're probably familiar with Canada Goose ( GOOS , $54.54), the Toronto-based maker of parkas and other clothing useful in cold weather. As the two countries continue their tit-for-tat fight over trade, Canada Goose's high-flying stock has gotten caught in the middle - despite rallying since the start of the year, GOOS still is off 20% from a high in early December.
Chinese consumers threatened to boycott the company's products after Huawei CFO Meng Wanzhou was arrested in Vancouver at the request of the U.S. judicial system, which is seeking the executive's extradition to face fraud charges.
Not to worry. When Canada Goose opened its first Mainland China store Dec. 28, Chinese consumers lined up to buy the company's $1,300 parkas, putting aside any concern the boycott was gaining traction. Also, China currently accounts for just 10% of the company's revenue, but that should increase as more stores open on the mainland.
As we head further into 2019, Canada Goose's business is operating at full speed, with wholesale, online and brick-and-mortar sales growing by double digits in its most recen t quarterly report . (I t report s again on Valentine's Day.)
Investors are starting to believe again in Canada Goose's upside and should take it out of bear-market territory sometime this year.
SEE ALSO: 101 Best Dividend Stocks to Buy for 2019 and Beyond
Market value: $2.9 billion
Dividend yield: N/A
Forward P/E: 14.2
Analysts' opinion: 4 buy, 1 overweight, 0 hold, 0 underweight, 0 sell
Investors might not be familiar with Helen of Troy ( HELE , $115.21) - a consumer products company that has quietly built a stable of brands through acquisitions and organic growth, and that successfully competes on the global stage. Helen's brands should be more familiar, though: OXO kitchen gadgets, Vicks humidifiers, Honeywell air purifiers, Braun thermometers, PUR water filtration systems and Revlon beauty products, among others.
Over the last four years, Helen of Troy has grown its revenues by 3.1% compounded annually, adjusted earnings by 12.6%, and free cash flow by 15.9%. That's a big reason its stock has generated an annual total return of 25.9%, more than double the S&P 500.
In 2019, the company is focusing on growing its seven leadership brands -- the five mentioned above plus, Hot Tools Professional (curling irons, hair dryers) and Hydro Flask (water bottles, etc.) -- while also working to reduce costs through shared services between its different businesses to generate additional cash flow. It will continue to make acquisitions that strengthen its market share in its three operating segments: housewares, health & home, and beauty.
As consumer products companies go, Helen of Troy is one to beat in 2019.
SEE ALSO: The Kiplinger Dividend 15: Our Favorite Dividend-Paying Stocks
Market value: $2.6 billion
Dividend yield: 1.0%
Forward P/E: 7.6
Analysts' opinion: 8 buy, 2 overweight, 2 hold, 0 underweight, 0 sell
BRP ( DOOO , $27.49) is the corporate name behind powersports brands Ski-Doo, Sea-Doo and CanAm. But while the company's seasonal products such as personal watercraft and snowmobiles continue to grow, it is the year-round ATVs and SSVs that are responsible for much of the stock's 36.0% annual total return over the past three years.
In BRPs most recent quarterly report ended Oct. 31, year-round-product revenues grew 21.1% year-over-year to C$562.4 million, accounting for 40% of its C$1.4 billion in overall sales. Seasonal products delivered 3.2% sales growth.
BRP also added a new operating segment in fiscal 2019, first acquiring Alumacraft Boat, a manufacturer of aluminum fishing boats, for C$85.4 million in June; it then paid C$97.4 million to buy Triton Industries, a manufacturer of pontoon boats under the Manitou brand. The creation of the Marine group provides BRP with a fourth revenue stream of growth in 2019.
Just one note of caution: While BRP's SSV business continues to outsell the competition -- between the three months of August to October, BRP grew SSVs in the mid-20s compared to mid-single digits for the industry as a whole -- it's starting to face increased competition from Honda ( HMC ) and others, making it more difficult to take market share.
Still, DOOO shares were particularly hard-hit in the back half of last year, losing more than half their value since Sept. 1. That has left BRP dirt-cheap, making it a strong potential rebound play in 2019.
SEE ALSO: 10 Stocks Warren Buffett Is Buying (And 6 He's Selling)
Market value: $51.5 billion
Dividend yield: N/A
Forward P/E: 49.0
Analysts' opinion: 8 buy, 1 overweight, 8 hold, 3 underweight, 8 sell
Tesla ( TSLA , $307.51) is the most speculative of the picks on this list. It's facing several headwinds, it has several self-inflicted injuries and it's not exactly an analyst favorite . But it managed a market-beating 7% return in 2018 while the S&P 500 was down despite a similar murderer's row of worries; it could surprise again.
Tesla announced Jan. 2 that it delivered 90,700 vehicles in the final quarter of 2018 - that's 8% better than the previous quarter, and a little more than triple the deliveries it made in Q4 2017.
Unfortunately, Tesla also revealed that it was lowering the price of all three of its models -- Model 3, Model S, and Model X -- by $2,000 to limit the impact as the federal government's tax credit starts to wind down. Tesla recently cut the price again to bring the Model 3 price down to $42,900.
But what really matters is the number of Model 3s that Tesla sells.
Tesla said more than 75% of its Model 3 orders in Q4 2018 were from new customers rather than existing reservation holders: a sign the carmaker is gaining traction with average car buyers, not just those who are tech-savvy.
While analysts were expecting 2,000 more vehicle deliveries in the fourth quarter, Tesla feels the Model 3 - including its expansion into China and Europe, lower-priced versions of the model, leasing options, and a right-hand drive option at some point in 2019 - have so far only scraped the surface of its opportunity.
This won't be an easy year - the company announced in late January that it lost its CFO, and tha t earnings fell short of expectations. But this exciting EV maker still should post plenty of growth in 2019.
SEE ALSO: 10 Small-Cap Stocks to Buy for 2019 and Beyond
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SEE ALSO: 57 Dividend Stocks You Can Count On in 2019 Market value: $93.3 billion Dividend yield: 1.9% Forward P/E: 21.3 Analysts' opinion: 10 buy, 2 overweight, 9 hold, 2 underweight, 0 sell When it comes to beer, wine and spirits companies, only a couple of companies are near the size and scale of Diageo ( DEO , $153.67) - the name behind Johnnie Walker scotch, Crown Royal Canadian whisky and Guinness beer. DEO also has been rumored to be looking for a partnership with a cannabis company similar to the ones Constellation Brands ( STZ ) and Molson Coors ( TAP ) entered. That makes DEO an excellent consumer stock for anyone seeking out stable income and reasonable capital appreciation.
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SEE ALSO: 57 Dividend Stocks You Can Count On in 2019 Market value: $93.3 billion Dividend yield: 1.9% Forward P/E: 21.3 Analysts' opinion: 10 buy, 2 overweight, 9 hold, 2 underweight, 0 sell When it comes to beer, wine and spirits companies, only a couple of companies are near the size and scale of Diageo ( DEO , $153.67) - the name behind Johnnie Walker scotch, Crown Royal Canadian whisky and Guinness beer. DEO also has been rumored to be looking for a partnership with a cannabis company similar to the ones Constellation Brands ( STZ ) and Molson Coors ( TAP ) entered. That makes DEO an excellent consumer stock for anyone seeking out stable income and reasonable capital appreciation.
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SEE ALSO: 57 Dividend Stocks You Can Count On in 2019 Market value: $93.3 billion Dividend yield: 1.9% Forward P/E: 21.3 Analysts' opinion: 10 buy, 2 overweight, 9 hold, 2 underweight, 0 sell When it comes to beer, wine and spirits companies, only a couple of companies are near the size and scale of Diageo ( DEO , $153.67) - the name behind Johnnie Walker scotch, Crown Royal Canadian whisky and Guinness beer. DEO also has been rumored to be looking for a partnership with a cannabis company similar to the ones Constellation Brands ( STZ ) and Molson Coors ( TAP ) entered. That makes DEO an excellent consumer stock for anyone seeking out stable income and reasonable capital appreciation.
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SEE ALSO: 57 Dividend Stocks You Can Count On in 2019 Market value: $93.3 billion Dividend yield: 1.9% Forward P/E: 21.3 Analysts' opinion: 10 buy, 2 overweight, 9 hold, 2 underweight, 0 sell When it comes to beer, wine and spirits companies, only a couple of companies are near the size and scale of Diageo ( DEO , $153.67) - the name behind Johnnie Walker scotch, Crown Royal Canadian whisky and Guinness beer. DEO also has been rumored to be looking for a partnership with a cannabis company similar to the ones Constellation Brands ( STZ ) and Molson Coors ( TAP ) entered. That makes DEO an excellent consumer stock for anyone seeking out stable income and reasonable capital appreciation.
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7cdd2c65-3761-4c87-be3a-06dbfa74170b
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727802.0
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2019-02-07 00:00:00 UTC
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Diageo In Deal With Citi To Execute Second Tranche Of Buyback Program
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DEO
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https://www.nasdaq.com/articles/diageo-deal-citi-execute-second-tranche-buyback-program-2019-02-07
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nan
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nan
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(RTTNews.com) - British alcoholic beverages company Diageo plc (DGE.L, DEO) Thursday announced that on order to execute the second tranche of its ongoing share buyback programme, it has entered into a non-discretionary agreement with Citigroup Global Markets Limited.
The agreement will commence on February 7 and is expected to end no later than June 30, 2019. During the second tranche, share repurchases of up to 1.7 billion pounds will be made.
It was on January 30 that the Board of Diageo approved an increase to the share buyback programme taking place during the financial year ending June 30, 2019. The F19 Programme will return up to 3.0 billion pounds to shareholders.
During the first tranche of the F19 Programme, which ended on January 31, 2019, Diageo repurchased 47.92 million shares worth 1.3 billion pounds.
Citi will make its trading decisions in relation to the company's securities independently of, and uninfluenced by, the company.
The purpose of the buyback programme is to reduce the share capital of Diageo. All shares repurchased will be cancelled.
Read the original article on RTTNews (https://www.rttnews.com/2977094/diageo-in-deal-with-citi-to-execute-second-tranche-of-buyback-program.aspx)
For comments and feedback: contact editorial@rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews.com) - British alcoholic beverages company Diageo plc (DGE.L, DEO) Thursday announced that on order to execute the second tranche of its ongoing share buyback programme, it has entered into a non-discretionary agreement with Citigroup Global Markets Limited. It was on January 30 that the Board of Diageo approved an increase to the share buyback programme taking place during the financial year ending June 30, 2019. During the first tranche of the F19 Programme, which ended on January 31, 2019, Diageo repurchased 47.92 million shares worth 1.3 billion pounds.
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(RTTNews.com) - British alcoholic beverages company Diageo plc (DGE.L, DEO) Thursday announced that on order to execute the second tranche of its ongoing share buyback programme, it has entered into a non-discretionary agreement with Citigroup Global Markets Limited. During the second tranche, share repurchases of up to 1.7 billion pounds will be made. It was on January 30 that the Board of Diageo approved an increase to the share buyback programme taking place during the financial year ending June 30, 2019.
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(RTTNews.com) - British alcoholic beverages company Diageo plc (DGE.L, DEO) Thursday announced that on order to execute the second tranche of its ongoing share buyback programme, it has entered into a non-discretionary agreement with Citigroup Global Markets Limited. It was on January 30 that the Board of Diageo approved an increase to the share buyback programme taking place during the financial year ending June 30, 2019. During the first tranche of the F19 Programme, which ended on January 31, 2019, Diageo repurchased 47.92 million shares worth 1.3 billion pounds.
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(RTTNews.com) - British alcoholic beverages company Diageo plc (DGE.L, DEO) Thursday announced that on order to execute the second tranche of its ongoing share buyback programme, it has entered into a non-discretionary agreement with Citigroup Global Markets Limited. During the second tranche, share repurchases of up to 1.7 billion pounds will be made. It was on January 30 that the Board of Diageo approved an increase to the share buyback programme taking place during the financial year ending June 30, 2019.
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a2cfa96f-b2e0-49a0-b5f3-1b99a35800aa
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727803.0
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2019-02-06 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Pepsico, Disney, Sanofi, Diageo and HCA
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DEO
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-pepsico-disney-sanofi-diageo-and-hca-2019-02-06
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nan
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nan
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For Immediate Release
Chicago, IL -February 6, 2019 - 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: PepsicoPEP , Walt Disney CompanyDIS , SanofiSNY , DiageoDEO and HCA HealthcareHCA .
Here are highlights from Tuesday's Analyst Blog:
Top Research Reports for PepsiCo, Disney and Sanofi
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 Pepsico, Walt Disney Company and Sanofi. 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 >>>
Pepsico 's shares have outperformed the Zacks Soft Drinks Beverages industry in the last six months (-3.6% vs. -6.5%). Earnings topped estimates in the last 11 quarters, while it delivered positive sales surprise in five of the last seven quarters. The improvement is mainly attributable to strong performances in international divisions, propelled by higher revenue growth in developing and emerging markets. Also, the company's solid snacks division is boosting the performance.
However, concerns regarding strained margins continue to linger, owing to operating and commodity cost inflation. Higher costs from transportation and stepped-up advertising expense are likely to continue going ahead, which should weigh on margins.
(You can read the full research report on Pepsico here >>> ).
Shares of Disney have gained 5.3% over the past year, outperforming the Zacks Media Conglomerates industry's gain of 3.1% during the same period. Additionally, the company's blockbuster performance at the box office bodes well.
Moreover, Disney's top line is expected to benefit from the solid line-up of big budget movies slated to be released over the next 18 months. Notably, estimates have been stable over the past seven days ahead of the company's Q1 earnings release. The company has positive record o f earnings surprise in the recent quarters.
However, Disney's ongoing investments in its technology platform are expected to keep margins under pressure. Additionally, higher programming costs at ESPN remains a concern. Moreover, weakness in the Consumer Products & Interactive Media segment is a headwind.
(You can read the full research report on Disney here >>> ).
Sanofi 's shares have gained 3.2% in the last six months, outperforming the Zacks Large Cap Pharmaceuticals industry's increase of 1%. It has several new products in its portfolio and candidates in its pipeline that can boost long-term growth. In fact, Sanofi's product launches are now delivering revenues greater than the loss of exclusivity impact.
Particularly, we are optimistic about Dupixent's sales prospects, which could prove to be an important growth driver. The performance of the Vaccines and Consumer Healthcare units has also improved lately. However, headwinds include a bleak outlook for the Diabetes franchise, generic competition for many drugs and slower-than-expected uptake of core products like Praluent.
(You can read the full research report on Sanofi here >>> ).
Other noteworthy reports we are featuring today include Diageo and HCA Healthcare.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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 Walt Disney Company (DIS): Free Stock Analysis Report
Sanofi (SNY): Get Free Report
Diageo plc (DEO): Free Stock Analysis Report
Pepsico, Inc. (PEP): Get Free Report
HCA Healthcare, Inc. (HCA): 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.
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: PepsicoPEP , Walt Disney CompanyDIS , SanofiSNY , DiageoDEO and HCA HealthcareHCA . Click to get this free report The Walt Disney Company (DIS): Free Stock Analysis Report Sanofi (SNY): Get Free Report Diageo plc (DEO): Free Stock Analysis Report Pepsico, Inc. (PEP): Get Free Report HCA Healthcare, Inc. (HCA): Free Stock Analysis Report To read this article on Zacks.com click here. However, headwinds include a bleak outlook for the Diabetes franchise, generic competition for many drugs and slower-than-expected uptake of core products like Praluent.
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Click to get this free report The Walt Disney Company (DIS): Free Stock Analysis Report Sanofi (SNY): Get Free Report Diageo plc (DEO): Free Stock Analysis Report Pepsico, Inc. (PEP): Get Free Report HCA Healthcare, Inc. (HCA): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: PepsicoPEP , Walt Disney CompanyDIS , SanofiSNY , DiageoDEO and HCA HealthcareHCA . Here are highlights from Tuesday's Analyst Blog: Top Research Reports for PepsiCo, Disney and Sanofi The Zacks Research Daily presents the best research output of our analyst team.
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Click to get this free report The Walt Disney Company (DIS): Free Stock Analysis Report Sanofi (SNY): Get Free Report Diageo plc (DEO): Free Stock Analysis Report Pepsico, Inc. (PEP): Get Free Report HCA Healthcare, Inc. (HCA): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: PepsicoPEP , Walt Disney CompanyDIS , SanofiSNY , DiageoDEO and HCA HealthcareHCA . Here are highlights from Tuesday's Analyst Blog: Top Research Reports for PepsiCo, Disney and Sanofi The Zacks Research Daily presents the best research output of our analyst team.
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Stocks recently featured in the blog include: PepsicoPEP , Walt Disney CompanyDIS , SanofiSNY , DiageoDEO and HCA HealthcareHCA . Click to get this free report The Walt Disney Company (DIS): Free Stock Analysis Report Sanofi (SNY): Get Free Report Diageo plc (DEO): Free Stock Analysis Report Pepsico, Inc. (PEP): Get Free Report HCA Healthcare, Inc. (HCA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks' Top 10 Stocks for 2019 In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
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9724e149-15c3-47e9-bc09-f2b4176bffdc
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727804.0
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2019-02-05 00:00:00 UTC
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Here's Why Momentum Investors Will Love Diageo (DEO)
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DEO
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https://www.nasdaq.com/articles/heres-why-momentum-investors-will-love-diageo-deo-2019-02-05
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nan
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nan
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Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores , helps address this issue for us.
Below, we take a look at Diageo (DEO) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Diageo currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
Let's discuss some of the components of the Momentum Style Score for DEO that show why this spirits and beer company shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For DEO, shares are up 6.3% over the past week while the Zacks Beverages - Alcohol industry is up 3.16% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 10.37% compares favorably with the industry's 4.57% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Diageo have increased 7.67% over the past quarter, and have gained 13.14% in the last year. In comparison, the S&P 500 has only moved 0.56% and 0.6%, respectively.
Investors should also take note of DEO's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, DEO is averaging 381,864 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note tha t earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with DEO.
Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. These revisions helped boost DEO's consensus estimate, increasing from $6.83 to $6.87 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Taking into account all of these elements, it should come as no surprise that DEO is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Diageo on your short list.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Diageo plc (DEO): Free Stock Analysis Report
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.
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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Bottom Line Taking into account all of these elements, it should come as no surprise that DEO is a #1 (Strong Buy) stock with a Momentum Score of A. Below, we take a look at Diageo (DEO) , a company that currently holds a Momentum Style Score of A. Let's discuss some of the components of the Momentum Style Score for DEO that show why this spirits and beer company shows promise as a solid momentum pick.
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Below, we take a look at Diageo (DEO) , a company that currently holds a Momentum Style Score of A. Let's discuss some of the components of the Momentum Style Score for DEO that show why this spirits and beer company shows promise as a solid momentum pick. For DEO, shares are up 6.3% over the past week while the Zacks Beverages - Alcohol industry is up 3.16% over the same time period.
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Below, we take a look at Diageo (DEO) , a company that currently holds a Momentum Style Score of A. Let's discuss some of the components of the Momentum Style Score for DEO that show why this spirits and beer company shows promise as a solid momentum pick. For DEO, shares are up 6.3% over the past week while the Zacks Beverages - Alcohol industry is up 3.16% over the same time period.
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Right now, DEO is averaging 381,864 shares for the last 20 days. Below, we take a look at Diageo (DEO) , a company that currently holds a Momentum Style Score of A. Let's discuss some of the components of the Momentum Style Score for DEO that show why this spirits and beer company shows promise as a solid momentum pick.
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87235a75-9788-4f40-ade8-506a10be6f4b
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727805.0
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2019-02-05 00:00:00 UTC
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Tequila and Gin Drive Great Results at Diageo
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DEO
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https://www.nasdaq.com/articles/tequila-and-gin-drive-great-results-diageo-2019-02-05
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nan
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nan
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Diageo (NYSE: DEO) is one of only a handful of companies that control most of the global spirits industry. That's given the company a lot of brand cachet and pricing power in a business that continues to steadily grow year after year.
In fiscal 2019, the company continues to bet on its biggest, most well-known brands to drive growth, and the strategy is succeeding. Here's what results looked like for the recently-reported first half of the year.
Diageo: The raw numbers
Data source: Diageo 1H 2019 earnings release. Chart by author.
What happened with Diageo this quarter?
The top-line numbers were great, and growth was broad-based, driven by gin and tequila. Here are the details behind the numbers:
Organic revenue grew 7.5%, with volume accounting for 3.5 percentage points of growth. Price increases and a favorable mix of products accounted for the rest of the gains. Organic operating profit rose 12.3%.
Net sales increased 8% in North America and Asia Pacific, the two largest regions for Diageo. Africa followed with 6% growth, Latin America notched a 4% gain, and Europe and Turkey reported 2% growth.
The popularity of different spirits changes from year to year. Right now, gin and tequila are hot. Tequila net sales were up 36% in the first half of the fiscal year, while gin was up 29%. Scotch, which has been strong for more than a decade, grew only 6%, and vodka sales inched up just 2%.
The decline in earnings was more than accounted for by what management called exceptional items, including legal charges, one-time taxes, and costs for asset sales. Without these items, earnings per share would have risen 13.6% to 0.77 pounds.
As the business continues to do well, management has focused on fewer brands and used cash flow to buy back stock. In December 2018, Diageo sold 19 brands to Sazerac, and in the first half of fiscal 2019, the company bought back 1.28 billion pounds of stock as part of a 3-billion-pound buyback program. Diageo is doubling down on its premium brands, and right now the strategy appears to be working.
What management had to say
As strong as the first half of the year was, CEO Ivan Menezes acknowledged that some of the sales gains were one-time in nature and didn't change the company's outlook. He stated, "This half has benefited from some one-time and phasing gains in both organic net sales and operating profit, and therefore we continue to expect to deliver mid-single digit organic net sales growth for the year and to expand operating margins in line with our previous guidance of 175 [basis points] for the three years ending 30 June 2019."
Growth drivers such as price increases aren't something a company like Diageo normally implements multiple times a year, so in the periods when price increases take hold, there is an outsized impact on growth, which is what we saw in the first half of fiscal 2019.
Looking forward
Diageo continues to ride its "global giants" brands to strong growth numbers, while the wide variety of spirits in its portfolio have helped soften the blow of changing global tastes. Management continues to see mid-single-digit growth and expanding margins for 2019, which is about the best investors could ask for from a mature spirits business.
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Travis Hoium 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.
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) is one of only a handful of companies that control most of the global spirits industry. The decline in earnings was more than accounted for by what management called exceptional items, including legal charges, one-time taxes, and costs for asset sales. In December 2018, Diageo sold 19 brands to Sazerac, and in the first half of fiscal 2019, the company bought back 1.28 billion pounds of stock as part of a 3-billion-pound buyback program.
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Diageo (NYSE: DEO) is one of only a handful of companies that control most of the global spirits industry. He stated, "This half has benefited from some one-time and phasing gains in both organic net sales and operating profit, and therefore we continue to expect to deliver mid-single digit organic net sales growth for the year and to expand operating margins in line with our previous guidance of 175 [basis points] for the three years ending 30 June 2019." Looking forward Diageo continues to ride its "global giants" brands to strong growth numbers, while the wide variety of spirits in its portfolio have helped soften the blow of changing global tastes.
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Diageo (NYSE: DEO) is one of only a handful of companies that control most of the global spirits industry. He stated, "This half has benefited from some one-time and phasing gains in both organic net sales and operating profit, and therefore we continue to expect to deliver mid-single digit organic net sales growth for the year and to expand operating margins in line with our previous guidance of 175 [basis points] for the three years ending 30 June 2019." Growth drivers such as price increases aren't something a company like Diageo normally implements multiple times a year, so in the periods when price increases take hold, there is an outsized impact on growth, which is what we saw in the first half of fiscal 2019.
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Diageo (NYSE: DEO) is one of only a handful of companies that control most of the global spirits industry. Tequila net sales were up 36% in the first half of the fiscal year, while gin was up 29%. Growth drivers such as price increases aren't something a company like Diageo normally implements multiple times a year, so in the periods when price increases take hold, there is an outsized impact on growth, which is what we saw in the first half of fiscal 2019.
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aa4ce015-95b7-4cd6-ab5b-d080d3d3b37e
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727806.0
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2019-02-01 00:00:00 UTC
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Diageo (DEO) Posts Strong 1H19 Earnings, Ups FY19 Sales View
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DEO
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https://www.nasdaq.com/articles/diageo-deo-posts-strong-1h19-earnings-ups-fy19-sales-view-2019-02-01
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nan
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nan
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Diageo plcDEO reported interim results for the first half of fiscal 2019, ended Dec 31, 2018 (first half of fiscal 2019), wherein pre-exceptional earnings per share improved 13.6% year over year to 77 pence (in local currency). This was backed by a higher organic operating profit and lower finance charges, which negated impacts of increased tax expenses and unfavorable currency.
Diageo's stock has surged nearly 5.6% yesterday. Moreover, shares of this Zacks Rank #3 (Hold) company rallied 7.7% in the past year against the industry 's decline of 22.4%. Clearly, this alcohol giant is riding on the focus on innovations, achieving growth through buyouts and penetration in emerging markets.
Highlights of First Half of Fiscal 2019
On a reported basis, net sales and operating profit moved up 5.8% and 11%, respectively, owing to organic growth, partly negated by unfavorable exchange rates. Top-line growth also included slight negative impacts of the sale of a portfolio of 19 brands to Sazerac in December 2018.
Organic sales increased 7.5%, benefiting from broad-based volume and sales growth across all regions, and categories. Notably, organic volume was up 3.5% and positive price mix grew 4%. Volume growth was mainly attributed to gains in India, which contributed about 60% of the total volume growth. Additionally, strong volume gains came from gin and scotch categories. Price/mix was positive across all regions, with particular growth coming from strength in U.S. spirits and scotch.
Gross margin expanded nearly 50 basis points (bps) during the first half as negative impacts of inflation in the cost of goods sold (COGS) were more than offset by favorable price/mix and productivity efficiencies. During the first half, the company witnessed inflationary pressures from commodity costs, including Agave, cereals, utilities and glass. Furthermore, higher transportation costs in the United States offset gross margin gains.
Improved price/mix and efficiencies from the productivity program aided organic operating profit, which grew 12.3%, higher than top-line growth. Notably, impacts of cost inflation and higher marketing expenses were fully offset by aforementioned positives. Further, organic operating margin expanded 152 bps, driven by phasing benefits.
Financials
Diageo continues to generate solid cash flows, with net cash from operating activities of £1.6 billion improving year over year. Furthermore, the company reported strong free cash flow of about £1.3 billion, up £317 million from the last year.
Diageo remains committed to its disciplined approach to capital allocation, primarily to enhance shareholder value. In sync with that, the company returned £1.3 billion to shareholders in the first half of fiscal 2019 through share repurchases.
Backed by strong free cash flow, the company approved additional share buybacks worth £660 million under its existing share-buyback program. As a result, it will now repurchase shares worth up to £3 billion for the year ending on 30 Jun, 2019. It also increased interim dividend by 5%.
Outlook
Diageo expects synergies from productivity initiatives to persist in fiscal 2019. The company anticipates net sales growth in the second half of fiscal 2019 to be lower than the first half. However, it now expects organic net sales for fiscal 2019 to be at the high-end of its prior guidance of mid-single-digit growth. Based on current rates, the company expects currency headwinds to significantly impact net sales by £80 million and operating profit by £10 million.
The company expects inflationary cost pressures from commodity and transportation to continue in the second half of fiscal 2019. This should continue to slightly weigh on the gross margin. Further, it expects operating margin growth to be muted in the second half, owing to the phasing of productivity costs and marketing expenses.
Nonetheless, the company expects to deliver on its targeted operating margin expansion of 175 bps for the three years ending on Jun 30, 2019.
Looking for Solid Stocks, Check These
Some better-ranked stocks in the consumer staples sector are Ambev S.A. ABEV , Coca-Cola European Partners PLC CCEP and Monster Beverage Corporation MNST , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Ambev has average long-term earnings growth rate of 10%. Moreover, the stock increased 7.8% in the last three months.
Coca-Cola European Partners has rallied 24.3% in the past year. The company has average long-term earnings growth rate of 8.7%.
Monster Beverage has average long-term earnings growth rate of 16%. Moreover, the stock surged 5.8% in the last three months.
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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
Ambev S.A. (ABEV): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
Monster Beverage Corporation (MNST): Get Free Report
Coca-Cola European Partners PLC (CCEP): Get Free 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.
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 plcDEO reported interim results for the first half of fiscal 2019, ended Dec 31, 2018 (first half of fiscal 2019), wherein pre-exceptional earnings per share improved 13.6% year over year to 77 pence (in local currency). Click to get this free report Ambev S.A. (ABEV): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Monster Beverage Corporation (MNST): Get Free Report Coca-Cola European Partners PLC (CCEP): Get Free Report To read this article on Zacks.com click here. Highlights of First Half of Fiscal 2019 On a reported basis, net sales and operating profit moved up 5.8% and 11%, respectively, owing to organic growth, partly negated by unfavorable exchange rates.
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Click to get this free report Ambev S.A. (ABEV): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Monster Beverage Corporation (MNST): Get Free Report Coca-Cola European Partners PLC (CCEP): Get Free Report To read this article on Zacks.com click here. Diageo plcDEO reported interim results for the first half of fiscal 2019, ended Dec 31, 2018 (first half of fiscal 2019), wherein pre-exceptional earnings per share improved 13.6% year over year to 77 pence (in local currency). Financials Diageo continues to generate solid cash flows, with net cash from operating activities of £1.6 billion improving year over year.
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Diageo plcDEO reported interim results for the first half of fiscal 2019, ended Dec 31, 2018 (first half of fiscal 2019), wherein pre-exceptional earnings per share improved 13.6% year over year to 77 pence (in local currency). Click to get this free report Ambev S.A. (ABEV): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Monster Beverage Corporation (MNST): Get Free Report Coca-Cola European Partners PLC (CCEP): Get Free Report To read this article on Zacks.com click here. Highlights of First Half of Fiscal 2019 On a reported basis, net sales and operating profit moved up 5.8% and 11%, respectively, owing to organic growth, partly negated by unfavorable exchange rates.
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Diageo plcDEO reported interim results for the first half of fiscal 2019, ended Dec 31, 2018 (first half of fiscal 2019), wherein pre-exceptional earnings per share improved 13.6% year over year to 77 pence (in local currency). Click to get this free report Ambev S.A. (ABEV): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Monster Beverage Corporation (MNST): Get Free Report Coca-Cola European Partners PLC (CCEP): Get Free Report To read this article on Zacks.com click here. Highlights of First Half of Fiscal 2019 On a reported basis, net sales and operating profit moved up 5.8% and 11%, respectively, owing to organic growth, partly negated by unfavorable exchange rates.
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88e68522-e044-4864-8259-2cfeaae8c3cd
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727807.0
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2019-01-31 00:00:00 UTC
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Consumer Sector Update for 01/31/2019: HSY, DEO, APTV, WMT, MCD, DIS, CVS, KO
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DEO
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https://www.nasdaq.com/articles/consumer-sector-update-01312019-hsy-deo-aptv-wmt-mcd-dis-cvs-ko-2019-01-31
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nan
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nan
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Top Consumer Stocks:
WMT: -0.21%
MCD: -0.37%
DIS: -0.12%
CVS: +0.36%
KO: Flat
Consumer stocks were mixed in pre-market trading Thursday.
Early movers include:
(+) Spirits maker Diageo ( DEO ) was more than 4% higher as it beefed up its multi-billion dollar share buyback program while lifting its dividend as i t report ed that its first-half operating profit jumped on the back of higher net sales.
(+) Aptiv ( APTV ) was advancing by more than 4% after posting Q4 adjusted earnings of $1.34 per share, up from $1.28 in the same period a year ago and topping the estimate of $1.21 from analysts polled by Capital IQ.
In other sector news:
(-) Hershey ( HSY ), which was declining by more than 2% after reporting adjusted earnings of $1.26 per share-diluted in Q4, an increase of 23.5% from $1.03 in the year-earlier period, and slightly below the $1.27 consensus EPS estimate from analysts polled by Capital IQ.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
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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Early movers include: (+) Spirits maker Diageo ( DEO ) was more than 4% higher as it beefed up its multi-billion dollar share buyback program while lifting its dividend as i t report ed that its first-half operating profit jumped on the back of higher net sales. (+) Aptiv ( APTV ) was advancing by more than 4% after posting Q4 adjusted earnings of $1.34 per share, up from $1.28 in the same period a year ago and topping the estimate of $1.21 from analysts polled by Capital IQ. In other sector news: (-) Hershey ( HSY ), which was declining by more than 2% after reporting adjusted earnings of $1.26 per share-diluted in Q4, an increase of 23.5% from $1.03 in the year-earlier period, and slightly below the $1.27 consensus EPS estimate from analysts polled by Capital IQ.
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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. Early movers include: (+) Spirits maker Diageo ( DEO ) was more than 4% higher as it beefed up its multi-billion dollar share buyback program while lifting its dividend as i t report ed that its first-half operating profit jumped on the back of higher net sales. (+) Aptiv ( APTV ) was advancing by more than 4% after posting Q4 adjusted earnings of $1.34 per share, up from $1.28 in the same period a year ago and topping the estimate of $1.21 from analysts polled by Capital IQ.
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Early movers include: (+) Spirits maker Diageo ( DEO ) was more than 4% higher as it beefed up its multi-billion dollar share buyback program while lifting its dividend as i t report ed that its first-half operating profit jumped on the back of higher net sales. (+) Aptiv ( APTV ) was advancing by more than 4% after posting Q4 adjusted earnings of $1.34 per share, up from $1.28 in the same period a year ago and topping the estimate of $1.21 from analysts polled by Capital IQ. In other sector news: (-) Hershey ( HSY ), which was declining by more than 2% after reporting adjusted earnings of $1.26 per share-diluted in Q4, an increase of 23.5% from $1.03 in the year-earlier period, and slightly below the $1.27 consensus EPS estimate from analysts polled by Capital IQ.
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Early movers include: (+) Spirits maker Diageo ( DEO ) was more than 4% higher as it beefed up its multi-billion dollar share buyback program while lifting its dividend as i t report ed that its first-half operating profit jumped on the back of higher net sales. Top Consumer Stocks: (+) Aptiv ( APTV ) was advancing by more than 4% after posting Q4 adjusted earnings of $1.34 per share, up from $1.28 in the same period a year ago and topping the estimate of $1.21 from analysts polled by Capital IQ.
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8c9582b0-4d92-497e-ad6d-eb88f6801ba9
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727808.0
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2019-01-31 00:00:00 UTC
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FTSE 100 Rises On Upbeat Earnings
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DEO
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https://www.nasdaq.com/articles/ftse-100-rises-upbeat-earnings-2019-01-31
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nan
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nan
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(RTTNews.com) - U.K. shares rose on Thursday, with a dovish turn in the Fed's policy statement, higher oil prices and encouraging earnings updates from the likes of Diageo and Royal Dutch Shell boosting sentiment.
The benchmark FTSE 100 was up 36 points or 0.52 percent at 6,978 in opening deals after rallying 1.6 percent on Wednesday.
Spirits maker Diageo jumped over 4 percent after it posted strong first-half results and unveiled a £660m share buyback.
Dairy company Dairy Crest Group rose 1.2 percent. The company posted good results in its third quarter and said the outlook for the full year remains in line with expectations.
Royal Dutch Shell rallied 3.4 percent after its full-year profit surged by more than a third to the highest since 2014.
Read the original article on RTTNews (http://www.rttnews.com/2974596/ftse-100-rises-on-upbeat-earnings.aspx)
For comments and feedback: contact editorial@rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews.com) - U.K. shares rose on Thursday, with a dovish turn in the Fed's policy statement, higher oil prices and encouraging earnings updates from the likes of Diageo and Royal Dutch Shell boosting sentiment. Spirits maker Diageo jumped over 4 percent after it posted strong first-half results and unveiled a £660m share buyback. The company posted good results in its third quarter and said the outlook for the full year remains in line with expectations.
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(RTTNews.com) - U.K. shares rose on Thursday, with a dovish turn in the Fed's policy statement, higher oil prices and encouraging earnings updates from the likes of Diageo and Royal Dutch Shell boosting sentiment. Dairy company Dairy Crest Group rose 1.2 percent. Royal Dutch Shell rallied 3.4 percent after its full-year profit surged by more than a third to the highest since 2014.
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(RTTNews.com) - U.K. shares rose on Thursday, with a dovish turn in the Fed's policy statement, higher oil prices and encouraging earnings updates from the likes of Diageo and Royal Dutch Shell boosting sentiment. The benchmark FTSE 100 was up 36 points or 0.52 percent at 6,978 in opening deals after rallying 1.6 percent on Wednesday. Spirits maker Diageo jumped over 4 percent after it posted strong first-half results and unveiled a £660m share buyback.
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(RTTNews.com) - U.K. shares rose on Thursday, with a dovish turn in the Fed's policy statement, higher oil prices and encouraging earnings updates from the likes of Diageo and Royal Dutch Shell boosting sentiment. The benchmark FTSE 100 was up 36 points or 0.52 percent at 6,978 in opening deals after rallying 1.6 percent on Wednesday. Spirits maker Diageo jumped over 4 percent after it posted strong first-half results and unveiled a £660m share buyback.
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6997407a-ecb2-42d8-ae86-e5581c27e3a3
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727809.0
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2019-01-31 00:00:00 UTC
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Consumer Sector Update for 01/31/2019: RACE,BC,DEO,HSY
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DEO
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https://www.nasdaq.com/articles/consumer-sector-update-01312019-racebcdeohsy-2019-01-31
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nan
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nan
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Top Consumer Stocks
WMT +1.77%
MCD -0.24%
DIS +0.78%
CVS +0.05%
KO +0.97%
Consumer stocks continued to post outsized gains Thursday afternoon, with shares of consumer staples companies in the S&P 500 climbing over 1.3% this afternoon while shares of consumer discretionary firms in the S&P 500 were ahead more than 0.8%.
Among consumer stocks moving on news:
(+) Ferrari NV ( RACE ) sped to 12% advance on Thursday after the specialty automaker reported a better-than-expected Q4 profit, earning EUR1.00 per share and beating the EUR0.81 per share Capital IQ consensus.
In other sector news:
(+) Diageo ( DEO ) popped its cork Thursday, rising over 5%, after the spirits seller increased its stock buyback program by another GBP660 million for a total of GBP3 billion for the 12 months ending June 30. The company also raised its interim dividend by 5% to GBP0.261 per ordinary share in addition to reporting improved first-half operating results.
(+) Hershey ( HSY ) was fractionally higher Thursday afternoon, after reporting a 23.5% increase in non-GAAP Q4 net income compared with the year-ago period to $1.26 per share but still falling short of the $1.27 per share analyst consensus for the candy company.
(-) Brunswick Corp ( BC ) declined Thursday, dropping 1%, after the sporting goods company forecast FY19 earnings trailing Wall Street estimates, projecting non-GAAP net income in range of $4.80 to $5.05 per share and lagging the Capital IQ consensus by at least $0.16 per share.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In other sector news: (+) Diageo ( DEO ) popped its cork Thursday, rising over 5%, after the spirits seller increased its stock buyback program by another GBP660 million for a total of GBP3 billion for the 12 months ending June 30. The company also raised its interim dividend by 5% to GBP0.261 per ordinary share in addition to reporting improved first-half operating results. (-) Brunswick Corp ( BC ) declined Thursday, dropping 1%, after the sporting goods company forecast FY19 earnings trailing Wall Street estimates, projecting non-GAAP net income in range of $4.80 to $5.05 per share and lagging the Capital IQ consensus by at least $0.16 per share.
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In other sector news: (+) Diageo ( DEO ) popped its cork Thursday, rising over 5%, after the spirits seller increased its stock buyback program by another GBP660 million for a total of GBP3 billion for the 12 months ending June 30. Among consumer stocks moving on news: (+) Ferrari NV ( RACE ) sped to 12% advance on Thursday after the specialty automaker reported a better-than-expected Q4 profit, earning EUR1.00 per share and beating the EUR0.81 per share Capital IQ consensus. (+) Hershey ( HSY ) was fractionally higher Thursday afternoon, after reporting a 23.5% increase in non-GAAP Q4 net income compared with the year-ago period to $1.26 per share but still falling short of the $1.27 per share analyst consensus for the candy company.
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In other sector news: (+) Diageo ( DEO ) popped its cork Thursday, rising over 5%, after the spirits seller increased its stock buyback program by another GBP660 million for a total of GBP3 billion for the 12 months ending June 30. Consumer stocks continued to post outsized gains Thursday afternoon, with shares of consumer staples companies in the S&P 500 climbing over 1.3% this afternoon while shares of consumer discretionary firms in the S&P 500 were ahead more than 0.8%. Among consumer stocks moving on news: (+) Ferrari NV ( RACE ) sped to 12% advance on Thursday after the specialty automaker reported a better-than-expected Q4 profit, earning EUR1.00 per share and beating the EUR0.81 per share Capital IQ consensus.
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In other sector news: (+) Diageo ( DEO ) popped its cork Thursday, rising over 5%, after the spirits seller increased its stock buyback program by another GBP660 million for a total of GBP3 billion for the 12 months ending June 30. Consumer stocks continued to post outsized gains Thursday afternoon, with shares of consumer staples companies in the S&P 500 climbing over 1.3% this afternoon while shares of consumer discretionary firms in the S&P 500 were ahead more than 0.8%. Among consumer stocks moving on news: (+) Ferrari NV ( RACE ) sped to 12% advance on Thursday after the specialty automaker reported a better-than-expected Q4 profit, earning EUR1.00 per share and beating the EUR0.81 per share Capital IQ consensus.
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230e8d02-999f-4525-95f5-efee5cfea783
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727810.0
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2019-01-31 00:00:00 UTC
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Diageo H1 Profit Declines; Board Approves Incremental Share Buyback
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DEO
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https://www.nasdaq.com/articles/diageo-h1-profit-declines-board-approves-incremental-share-buyback-2019-01-31
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nan
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nan
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(RTTNews.com) - Diageo plc (DGE.L, DEO) reported Thursday that its first-half profit attributable to the parent company's shareholders declined 4 percent to 1.98 billion pounds from last year's 2.06 billion pounds. Basic earnings per share decreased 2 percent to 80.9 pence from 82.2 pence last year.
However, earnings per share before exceptional items were 77.0 pence, compared to 67.8 pence a year ago, reflecting higher operating profit and lower finance charges that more than offset an increased tax charge.
Net sales for the half year increased 6 percent to 6.91 billion pounds from 6.53 billion pounds last year. On an organic basis, net sales increased 7 percent. The company noted that organic growth was partially offset by unfavorable exchange.
Volume rose 3 percent on a reported basis and also grew 4 percent organically. Further, the company announced that its interim dividend was increased by 5 percent to 26.1 pence per share.
On January 30, 2019, the company's board approved an incremental share buyback of 660 million pounds, bringing the total program up to 3.0 billion pounds for the year ending 30 June 2019.
Looking ahead, the company said it continues to expect to deliver mid-single digit organic net sales growth for fiscal 2019 and to expand operating margins in line with its previous guidance of 175 basis points for the three years ending 30 June 2019.
Read the original article on RTTNews (http://www.rttnews.com/2974524/diageo-h1-profit-declines-board-approves-incremental-share-buyback.aspx)
For comments and feedback: contact editorial@rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews.com) - Diageo plc (DGE.L, DEO) reported Thursday that its first-half profit attributable to the parent company's shareholders declined 4 percent to 1.98 billion pounds from last year's 2.06 billion pounds. However, earnings per share before exceptional items were 77.0 pence, compared to 67.8 pence a year ago, reflecting higher operating profit and lower finance charges that more than offset an increased tax charge. Further, the company announced that its interim dividend was increased by 5 percent to 26.1 pence per share.
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(RTTNews.com) - Diageo plc (DGE.L, DEO) reported Thursday that its first-half profit attributable to the parent company's shareholders declined 4 percent to 1.98 billion pounds from last year's 2.06 billion pounds. However, earnings per share before exceptional items were 77.0 pence, compared to 67.8 pence a year ago, reflecting higher operating profit and lower finance charges that more than offset an increased tax charge. Net sales for the half year increased 6 percent to 6.91 billion pounds from 6.53 billion pounds last year.
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(RTTNews.com) - Diageo plc (DGE.L, DEO) reported Thursday that its first-half profit attributable to the parent company's shareholders declined 4 percent to 1.98 billion pounds from last year's 2.06 billion pounds. However, earnings per share before exceptional items were 77.0 pence, compared to 67.8 pence a year ago, reflecting higher operating profit and lower finance charges that more than offset an increased tax charge. Net sales for the half year increased 6 percent to 6.91 billion pounds from 6.53 billion pounds last year.
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(RTTNews.com) - Diageo plc (DGE.L, DEO) reported Thursday that its first-half profit attributable to the parent company's shareholders declined 4 percent to 1.98 billion pounds from last year's 2.06 billion pounds. Net sales for the half year increased 6 percent to 6.91 billion pounds from 6.53 billion pounds last year. On an organic basis, net sales increased 7 percent.
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e3dd237c-ece0-4ae7-a7f8-95d7a5afd1b5
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727811.0
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2019-01-31 00:00:00 UTC
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Consumer Sector Update for 01/31/2019: BC,DEO,HSY
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DEO
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https://www.nasdaq.com/articles/consumer-sector-update-01312019-bcdeohsy-2019-01-31
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nan
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nan
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Top Consumer Stocks
WMT +1.77%
MCD -0.67%
DIS +0.90%
CVS +0.02%
KO +0.91%
Consumer stocks were posting big gains on Thursday, with shares of consumer staples companies in the S&P 500 climbing over 1.6% this afternoon while shares of consumer discretionary firms in the S&P 500 were ahead almost 1.2%.
Among consumer stocks moving on news:
(-) Brunswick Corp ( BC ) declined Thursday, dropping 1%, after the sporting goods company forecast FY19 earnings trailing Wall Street estimates, projecting non-GAAP net income in range of $4.80 to $5.05 per share and lagging the Capital IQ consensus by at least $0.16 per share.
In other sector news:
(+) Diageo ( DEO ) popped its cork Thursday, rising over 5%, after the spirits seller increased its stock buyback program by another GBP660 million for a total of GBP3 billion for the 12 months ending June 30. The company also raised its interim dividend by 5% to GBP0.261 per ordinary share in addition to reporting improved first-half operating results.
(+) Hershey ( HSY ) was fractionally higher Thursday afternoon, after reporting a 23.5% increase in non-GAAP Q4 net income compared with the year-ago period to $1.26 per share but still falling short of the $1.27 per share analyst consensus for the candy company.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In other sector news: (+) Diageo ( DEO ) popped its cork Thursday, rising over 5%, after the spirits seller increased its stock buyback program by another GBP660 million for a total of GBP3 billion for the 12 months ending June 30. Among consumer stocks moving on news: (-) Brunswick Corp ( BC ) declined Thursday, dropping 1%, after the sporting goods company forecast FY19 earnings trailing Wall Street estimates, projecting non-GAAP net income in range of $4.80 to $5.05 per share and lagging the Capital IQ consensus by at least $0.16 per share. The company also raised its interim dividend by 5% to GBP0.261 per ordinary share in addition to reporting improved first-half operating results.
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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. In other sector news: (+) Diageo ( DEO ) popped its cork Thursday, rising over 5%, after the spirits seller increased its stock buyback program by another GBP660 million for a total of GBP3 billion for the 12 months ending June 30. (+) Hershey ( HSY ) was fractionally higher Thursday afternoon, after reporting a 23.5% increase in non-GAAP Q4 net income compared with the year-ago period to $1.26 per share but still falling short of the $1.27 per share analyst consensus for the candy company.
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In other sector news: (+) Diageo ( DEO ) popped its cork Thursday, rising over 5%, after the spirits seller increased its stock buyback program by another GBP660 million for a total of GBP3 billion for the 12 months ending June 30. Consumer stocks were posting big gains on Thursday, with shares of consumer staples companies in the S&P 500 climbing over 1.6% this afternoon while shares of consumer discretionary firms in the S&P 500 were ahead almost 1.2%. Among consumer stocks moving on news: (-) Brunswick Corp ( BC ) declined Thursday, dropping 1%, after the sporting goods company forecast FY19 earnings trailing Wall Street estimates, projecting non-GAAP net income in range of $4.80 to $5.05 per share and lagging the Capital IQ consensus by at least $0.16 per share.
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In other sector news: (+) Diageo ( DEO ) popped its cork Thursday, rising over 5%, after the spirits seller increased its stock buyback program by another GBP660 million for a total of GBP3 billion for the 12 months ending June 30. Consumer stocks were posting big gains on Thursday, with shares of consumer staples companies in the S&P 500 climbing over 1.6% this afternoon while shares of consumer discretionary firms in the S&P 500 were ahead almost 1.2%. The company also raised its interim dividend by 5% to GBP0.261 per ordinary share in addition to reporting improved first-half operating results.
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2a28b42c-ead8-4bad-90aa-a8f8918b1e39
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727812.0
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2019-01-29 00:00:00 UTC
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DSW's Marijuana Tie-Up With Green Growth Brands Isn't a Surprise
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DEO
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https://www.nasdaq.com/articles/dsws-marijuana-tie-green-growth-brands-isnt-surprise-2019-01-29
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nan
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nan
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What a difference a year makes .
Although much progress was being made within the pot industry, recreational weed was illegal in Canada at this time last year, hemp was illegal in the United States, and the U.S. Food and Drug Administration (FDA) had never approved a cannabis-derived drug. Now, each and every one of those statements is false, with Canada legalizing adult-use marijuana in October, President Trump signing the Farm Bill into law in December, and the FDA approving cannabidiol (CBD)-based oral solution Epidiolex in June. CBD is the nonpsychoactive cannabinoid best known for its perceived medical benefits.
The validation that the marijuana industry has enjoyed has led to an abundance of dealmaking, some of which has come as a surprise.
A number of surprising deals take shape in the cannabis arena
For example, it was expected that brand-name beverage, tobacco, and pharmaceutical companies would be considering the legal cannabis industry for partnership or equity investment opportunities if Canada gave weed the green light. But what surprised a lot of folks was Molson Coors Brewing 's choice to form a joint venture with Quebec-based HEXO in August to develop a line of cannabis-infused beverages. Nothing against HEXO, but it wasn't exactly considered a prominent grower at the time the deal was announced. Even with 108,000 kilograms in peak annual production expected, HEXO may not even crack the top 10 in terms of the country's largest growers. HEXO landing a deal with Molson Coors was genuinely surprising.
Also a bit shocking was the December deal that saw Anheuser-Busch InBev and Tilray form a joint venture for cannabis-infused beverages. The deal, which'll see each party put $50 million toward the joint venture, isn't that out of the ordinary. What's surprising is how quickly Anheuser-Busch CEO Carlos Brito went from pumping the brakes to flooring the gas pedal on cannabis .
But of all the deals to really catch Wall Street off guard, it might be shoe retailer DSW 's (NYSE: DSW) recent announcement that it was partnering up with Green Growth Brands (NASDAQOTH: GGBXF) to sell CBD-rich topical creams , muscle balms, and body lotions. Green Growth Brands recently completed a reverse takeover of Xanthic Biopharma to become a public company.
The agreement will see Green Growth's Seventh Sense line of CBD topicals placed into 96 U.S.-based DSW stores. In total, it encompasses just shy of 55,000 units of CBD topicals. This deal comes after a pilot program saw 74% of Green Growth's products in 10 DSW stores sell in just a 10-week period, which was far and away beyond expectations for both companies. Said Green Growth Brands' CEO Peter Horvath, "[This] is the first step in our strategy to expand sales of personal care CBD products through external partnerships, in mall kiosks, and through a growing number of stores and online."
Here's why DSW's foray into cannabis isn't all that shocking
While it might sound weird for designer shoe retailer DSW to be breaking into the cannabis area, a deeper dive reveals that this move is less than shocking.
Cannabis companies, with increasing frequency, have been turning to former executives from the retail and beverage industries to validate their business models and provide guidance. These newly added chess pieces also happen to serve as links to their former industries, creating opportunities to push into new sales channels.
Suffice it to say, it's no secret that DSW and Green Growth Brands shook hands earlier this month. You see, Green Growth CEO Horvath was once the president of DSW, between January 2005 and June 2008. Though a "president" is responsible for all facets of a business, Horvath's background has always been in improving operations and merchandising. He knows DSW's successes and failures from a product perspective inside and out, and his 3.5-year tenure with the company provided the perfect link for Green Growth to snag a major supply deal with a brand-name company. Growing favorability toward cannabis in the U.S., coupled with high-margin complementary add-on products for both parties to benefit from, made this deal a shoo-in (pardon the pun).
More deals are coming, and you might be able to predict them
Of course, this is unlikely to be the last deal in which an executive's or advisor's previous work history creates an opportunity for the cannabis industry. For instance, embattled grower Aphria (NYSE: APHA) added Tom Looney to its board of directors late last year. Looney has been a fixture in the alcohol beverage industry for 30 years -- an industry that Aphria would love to penetrate by finding a partner.
More specifically, Looney had been the president of Diageo 's (NYSE: DEO) U.S. Spirits and Canada division. Interestingly enough, Diageo was a big name rumored to be looking for a cannabis partner last summer. Clearly there are obstacles, such as Aphria's foundation being rocked by a co-authored short-sellers report , but a bridge clearly exists between Diageo and Aphria that could be facilitated by Looney.
However, to be crystal clear, a possible deal doesn't mean there will be a deal. Nor does it mean you should invest in any marijuana stock solely on account of expecting a deal to be made. An equity investment, partnership, joint venture, or sales agreement is simply icing on the cake to a pot stock's longer-term strategy -- and don't forget it.
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of Molson Coors Brewing. The Motley Fool recommends Anheuser-Busch InBev NV, Diageo, and DSW. 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.
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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More specifically, Looney had been the president of Diageo 's (NYSE: DEO) U.S. Now, each and every one of those statements is false, with Canada legalizing adult-use marijuana in October, President Trump signing the Farm Bill into law in December, and the FDA approving cannabidiol (CBD)-based oral solution Epidiolex in June. But what surprised a lot of folks was Molson Coors Brewing 's choice to form a joint venture with Quebec-based HEXO in August to develop a line of cannabis-infused beverages.
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More specifically, Looney had been the president of Diageo 's (NYSE: DEO) U.S. A number of surprising deals take shape in the cannabis arena For example, it was expected that brand-name beverage, tobacco, and pharmaceutical companies would be considering the legal cannabis industry for partnership or equity investment opportunities if Canada gave weed the green light. But of all the deals to really catch Wall Street off guard, it might be shoe retailer DSW 's (NYSE: DSW) recent announcement that it was partnering up with Green Growth Brands (NASDAQOTH: GGBXF) to sell CBD-rich topical creams , muscle balms, and body lotions.
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More specifically, Looney had been the president of Diageo 's (NYSE: DEO) U.S. A number of surprising deals take shape in the cannabis arena For example, it was expected that brand-name beverage, tobacco, and pharmaceutical companies would be considering the legal cannabis industry for partnership or equity investment opportunities if Canada gave weed the green light. But of all the deals to really catch Wall Street off guard, it might be shoe retailer DSW 's (NYSE: DSW) recent announcement that it was partnering up with Green Growth Brands (NASDAQOTH: GGBXF) to sell CBD-rich topical creams , muscle balms, and body lotions.
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More specifically, Looney had been the president of Diageo 's (NYSE: DEO) U.S. This deal comes after a pilot program saw 74% of Green Growth's products in 10 DSW stores sell in just a 10-week period, which was far and away beyond expectations for both companies. You see, Green Growth CEO Horvath was once the president of DSW, between January 2005 and June 2008.
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9f224fdf-ed80-4dd9-add6-93a5541e6365
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727813.0
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2019-01-29 00:00:00 UTC
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What Makes Marijuana ETF the Best Performer in January?
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DEO
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https://www.nasdaq.com/articles/what-makes-marijuana-etf-best-performer-january-2019-01-29
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nan
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nan
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Marijuana stocks and the related ETF has have been on a high in 2018, courtesy of a massive rally in mid-2018 on Canada's pending legalization of recreational marijuana starting Oct 17.
However, after taking a beating in the final quarter of 2018, pot stocks made a comeback at the start of this year on positive industry-specific news and renewed risk appetite. The pure-play marijuana ETF ETFMG Alternative Harvest ETFMJ has gained 35.5% in the past month (as of Jan 28, 2019) (read: After a Landmark 2018, Will Pot ETF See Same High in 2019? ).
Inside the Driving Factors of 2019
First, the stock of pot-producer Tilray Inc.TLRY jumped in mid-January, after a private-equity firm, which is the company's controlling stockholder, affirmed that it won't sell shares when Tilray's IPO lockup expires on Jan 15. Also, several research houses have shown positive response in pot stocks of late (read: Why Marijuana ETF is on a High in 2019 ).
Also, there news that Canadian marijuana producer Aurora Cannabis Inc.ACB is acquiring British Columbia-based Whistler Medical Marijuana for about $132 million. Canopy Growth was also given New York State hemp license .
Notably, Cannabis is getting official approval from many U.S. states for recreational uses, apart from medical usage. Though pot remains entirely illegal at the federal level, Michigan approved a ballot measure in early November for recreational use of marijuana to become the 10 th such U.S. State while Missouri and Utah saw legalization of medical marijuana, taking the total number of U.S. states greenlighting medical pot to 32 .
If this was not enough, Chief Executive of Organigram Holdings Inc. indicated that he expects sales to double in the first full quarter of legal marijuana sales in Canada . The cannabis producer Organigram Holdings Inc. noted that net revenue in its latest quarter was $12.4 million, up from $2.4 million a year earlier on the launch of recreational pot sales in October.
Organigram's strong results acted as a cornerstone and boosted most of the key players of the cannabis industry. The fund MJ was up 5.6% on Jan 28, thanks to the news. Canopy Growth Corporation (CGC) added about 4.7%, Cronos Group Inc.CRON jumped 15.4%, Tilary rose 8.7% and Aurora Cannabis gained 5.7% on Jan 28.
Gains to Come From Medicine & Beverage Industry?
U.S. drug regulators approved the first marijuana-based pharmaceutical to treat kids with a form of epilepsy, while the markets have been eyed by beverage companies to produce cannabis-induced beverage.
There were tie-ups between Constellation Brands STZ and Canopy Growth, Canadian arm of Molson Coors and Quebec-based pot producer Hydropothecary Corp. to make such beverages. Diageo Plc (DEO) and Coca Cola (KO) have also been eyeing the industry. One industry analyst projects the cannabis beverage market to reach a worth of $600 million by 2022 (read: 4 Reasons Why Pot Stocks & ETF Could Be on a High in 2019 ).
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Constellation Brands Inc (STZ): Get Free Report
Diageo plc (DEO): Get Free Report
Coca-Cola Company (The) (KO): Free Stock Analysis Report
Cronos Group Inc. (CRON): Free Stock Analysis Report
Canopy Growth Corporation (CGC): Get Free Report
Tilray, Inc. (TLRY): Free Stock Analysis Report
Aurora Cannabis Inc. (ACB): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Diageo Plc (DEO) and Coca Cola (KO) have also been eyeing the industry. Click to get this free report Constellation Brands Inc (STZ): Get Free Report Diageo plc (DEO): Get Free Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report Canopy Growth Corporation (CGC): Get Free Report Tilray, Inc. (TLRY): Free Stock Analysis Report Aurora Cannabis Inc. (ACB): Get Free Report To read this article on Zacks.com click here. However, after taking a beating in the final quarter of 2018, pot stocks made a comeback at the start of this year on positive industry-specific news and renewed risk appetite.
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Click to get this free report Constellation Brands Inc (STZ): Get Free Report Diageo plc (DEO): Get Free Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report Canopy Growth Corporation (CGC): Get Free Report Tilray, Inc. (TLRY): Free Stock Analysis Report Aurora Cannabis Inc. (ACB): Get Free Report To read this article on Zacks.com click here. Diageo Plc (DEO) and Coca Cola (KO) have also been eyeing the industry. Canopy Growth Corporation (CGC) added about 4.7%, Cronos Group Inc.CRON jumped 15.4%, Tilary rose 8.7% and Aurora Cannabis gained 5.7% on Jan 28.
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Click to get this free report Constellation Brands Inc (STZ): Get Free Report Diageo plc (DEO): Get Free Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report Canopy Growth Corporation (CGC): Get Free Report Tilray, Inc. (TLRY): Free Stock Analysis Report Aurora Cannabis Inc. (ACB): Get Free Report To read this article on Zacks.com click here. Diageo Plc (DEO) and Coca Cola (KO) have also been eyeing the industry. Though pot remains entirely illegal at the federal level, Michigan approved a ballot measure in early November for recreational use of marijuana to become the 10 th such U.S. State while Missouri and Utah saw legalization of medical marijuana, taking the total number of U.S. states greenlighting medical pot to 32 .
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Click to get this free report Constellation Brands Inc (STZ): Get Free Report Diageo plc (DEO): Get Free Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report Canopy Growth Corporation (CGC): Get Free Report Tilray, Inc. (TLRY): Free Stock Analysis Report Aurora Cannabis Inc. (ACB): Get Free Report To read this article on Zacks.com click here. Diageo Plc (DEO) and Coca Cola (KO) have also been eyeing the industry. Also, several research houses have shown positive response in pot stocks of late (read: Why Marijuana ETF is on a High in 2019 ).
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f1d08f6f-10db-4fc0-a92a-8ff4c4337f52
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727814.0
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2019-01-24 00:00:00 UTC
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Expansion & Innovation to Aid Diageo's (DEO) 1H19 Earnings
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DEO
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https://www.nasdaq.com/articles/expansion-innovation-to-aid-diageos-deo-1h19-earnings-2019-01-24
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nan
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nan
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Diageo PlcDEO is scheduled to release interim results for the first half of fiscal 2019 on Jan 31. The company is witnessing momentum, owing to its strong fundamentals, continuous innovation and focus on expansion. These factors are likely to aid the company's earnings for the first half of fiscal 2019.
Notably, this alcoholic beverage company, which reports on a half-yearly basis, posted strong results for fiscal 2018. It recorded earnings growth of 9.3% in fiscal 2018, with 0.9% improvement in sales.
Innovation and Expansion to Aid Earnings
Diageo explores opportunities to expand geographically through acquisitions. This, along with innovation efforts, fueled Diageo's results in fiscal 2018, wherein both sales and earnings improved year over year. While the bottom line gained from higher organic operating profit and reduced finance costs, the top line was driven by broad-based growth across all regions and categories, except for vodka.
Moreover, the company is witnessing improved operating margins, thanks to increased productivity savings in overheads and lower related costs. It expects synergies from productivity initiatives to continue in fiscal 2019 as well. Driven by the company's productivity program, Diageo expects to deliver on its targeted operating margin expansion of 175 basis points for the three years ending Jun 30, 2019. Furthermore, it expects organic net sales growth in the mid-single-digit range for fiscal 2019.
Additionally, the company's strong results reflect its strategy of exploring opportunities to expand through acquisitions. It is focused on penetrating the emerging markets of Africa, Latin America and Asia, and bolstering presence by catering to the local tastes of these regions. This is significantly aiding volume growth for the company, resulting in the robust top line.
Backed by these positives, Diageo stock has outpaced the industry in the past three months. Notably, this Zacks Rank #3 (Hold) stock gained 4.6% against the industry 's decline of 2.2%.
However, exchange rate fluctuations remain a cause of concern for the company. Fluctuations in the U.S. Dollar, Turkish lira and other emerging market currencies mostly marred its sales and operating profit in fiscal 2018. Based on current rates, the company expects currency headwinds to impact net sales and operating profit in fiscal 2019 by nearly £70 million and £10 million, respectively.
Looking for Lucrative Picks? Check These
Some better-ranked stocks are Archer Daniels Midland Company ADM , currently sporting a Zacks Rank #1 (Strong Buy), and Ambev S.A. ABEV and Monster Beverage Corporation MNST , carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Archer Daniels delivered average positive earnings surprise of 26.9% in the trailing four quarters. Further, the stock has gained 1.9% in the past year.
Ambev has advanced 12.4% in the past three months. The stock has a long-term growth rate of 10%.
Monster Beverage, with long-term earnings per share growth rate of 16%, has rallied 15.1% in the past month.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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Diageo plc (DEO): Get Free Report
Ambev S.A. (ABEV): Get Free Report
Monster Beverage Corporation (MNST): Free Stock Analysis Report
Archer Daniels Midland Company (ADM): 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.
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 PlcDEO is scheduled to release interim results for the first half of fiscal 2019 on Jan 31. Click to get this free report Diageo plc (DEO): Get Free Report Ambev S.A. (ABEV): Get Free Report Monster Beverage Corporation (MNST): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report To read this article on Zacks.com click here. Driven by the company's productivity program, Diageo expects to deliver on its targeted operating margin expansion of 175 basis points for the three years ending Jun 30, 2019.
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Click to get this free report Diageo plc (DEO): Get Free Report Ambev S.A. (ABEV): Get Free Report Monster Beverage Corporation (MNST): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo PlcDEO is scheduled to release interim results for the first half of fiscal 2019 on Jan 31. Based on current rates, the company expects currency headwinds to impact net sales and operating profit in fiscal 2019 by nearly £70 million and £10 million, respectively.
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Click to get this free report Diageo plc (DEO): Get Free Report Ambev S.A. (ABEV): Get Free Report Monster Beverage Corporation (MNST): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo PlcDEO is scheduled to release interim results for the first half of fiscal 2019 on Jan 31. This, along with innovation efforts, fueled Diageo's results in fiscal 2018, wherein both sales and earnings improved year over year.
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Diageo PlcDEO is scheduled to release interim results for the first half of fiscal 2019 on Jan 31. Click to get this free report Diageo plc (DEO): Get Free Report Ambev S.A. (ABEV): Get Free Report Monster Beverage Corporation (MNST): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report To read this article on Zacks.com click here. This, along with innovation efforts, fueled Diageo's results in fiscal 2018, wherein both sales and earnings improved year over year.
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96668387-c1cd-4a80-bbd7-6aeaa6aee73e
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727815.0
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2019-01-10 00:00:00 UTC
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1.1 Million Reasons Why You Should Buy Constellation Stock
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DEO
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https://www.nasdaq.com/articles/11-million-reasons-why-you-should-buy-constellation-stock-2019-01-10
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Most stocks suffered last year. The S&P 500 was down for the first time since the 2008 recovery. But Constellation Brands (NYSE: STZ ) stock did much worse. The stock is down over 30% in the past 12 months, outstripping many others in the sector.
A lot of it came yesterday when management delivered a mediocre earnings report. Profits fell and they lowered forward guidance expectations. The stock plunged 12% on the headline.
STZ stock is now lagging far behind competitors like Molson Coors (NYSE: TAP ) and Diageo (NYSE: DEO ). But there is hope from several angles.
So today's trade is to go long the stock for the mid-term. This is a fundamental decision since it is now trading at 10 trailing price-to-earnings ratio. Owning it here is not likely to be a colossal financial mistake. There is much more upside potential than downside risk.
Now the Good News for STZ Stock…
Constellation management is proven and they are not afraid to make bold moves. This is evident from their $4 billion investment in Canopy Growth (NYSE: CGC ) a budding company (no pun intended) that competes in the cannabis sector. Clearly they are looking far out into the future. To that point, other experts agree as Goldman Sachs and Guggenheim upgraded the stock overnight.
Morgan Stanley: 7 Risky Stocks to Sell Now
In addition, a more encouraging tidbit of information came to light last night on CNBC . Rob Sands, who is the departing Constellation CEO, announced that he and his brother bought 1.1 million shares. So this is a huge bullish statement that the company is well on track. Else why risk $150 million?
Moreover, there is also technical hope. STZ stock has fallen into an abyss but this is also a potential area of support. Almost two years ago it broke out from these levels to start a 44% rally. It is now far below those highs but therein lies the opportunity.
These pivot zones usually create congestion because both bulls and bears will want to fight over them thereby creating the support. This combined with the facts that broke out yesterday from the departing CEO create the potential of a bottom.
The experts on Wall Street agree. Most analysts have at least a "buy" rating on it even though it is trading much lower than their lowest of price targets. Overnight we've seen two already defend the stock so there is clear value. I expect this to continue.
There are reasons to worry. First we still have macroeconomic headline risk from the tariff wars between the U.S. and China. Second, STZ has a small chance of catching a surprise downgrade. The longer the price is this far below target the higher the odds of analysts capitulating.
So I don't want to take any full-size position at this level so I will break the trade into two parts. First I buy the shares outright. Then to average down in a sense I will use options.
I sell the STZ Jul $115 put and collect $1.50 per contract. This is also a bullish trade which has a 90% theoretical chance of winning. If the price falls below $115 I have to own the shares and accrue losses below $113.50 per share. Long term, I am confident that I can make this position yield profit.
Click here and enjoy a free video and more of my market thesis and get an ongoing free copy of my weekly newsletters. Nicolas Chahine is the managing director of SellSpreads.com . As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits .
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The post 1.1 Million Reasons Why You Should Buy Constellation Stock 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.
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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STZ stock is now lagging far behind competitors like Molson Coors (NYSE: TAP ) and Diageo (NYSE: DEO ). Click here and enjoy a free video and more of my market thesis and get an ongoing free copy of my weekly newsletters. This is evident from their $4 billion investment in Canopy Growth (NYSE: CGC ) a budding company (no pun intended) that competes in the cannabis sector.
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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. STZ stock is now lagging far behind competitors like Molson Coors (NYSE: TAP ) and Diageo (NYSE: DEO ). Click here and enjoy a free video and more of my market thesis and get an ongoing free copy of my weekly newsletters.
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STZ stock is now lagging far behind competitors like Molson Coors (NYSE: TAP ) and Diageo (NYSE: DEO ). Click here and enjoy a free video and more of my market thesis and get an ongoing free copy of my weekly newsletters. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Most stocks suffered last year.
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STZ stock is now lagging far behind competitors like Molson Coors (NYSE: TAP ) and Diageo (NYSE: DEO ). Click here and enjoy a free video and more of my market thesis and get an ongoing free copy of my weekly newsletters. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Most stocks suffered last year.
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e538fc15-531c-45ae-95f5-b0b1e63303ed
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727816.0
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2019-01-07 00:00:00 UTC
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First Week of February 15th Options Trading For Diageo (DEO)
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DEO
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https://www.nasdaq.com/articles/first-week-february-15th-options-trading-diageo-deo-2019-01-07
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nan
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nan
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Investors in Diageo plc (Symbol: DEO) saw new options become available this week, for the February 15th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the DEO options chain for the new February 15th contracts and identified one put and one call contract of particular interest.
The put contract at the $135.00 strike price has a current bid of $1.90. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $135.00, but will also collect the premium, putting the cost basis of the shares at $133.10 (before broker commissions). To an investor already interested in purchasing shares of DEO, that could represent an attractive alternative to paying $139.06/share today.
Because the $135.00 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 73%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract . Should the contract expire worthless, the premium would represent a 1.41% return on the cash commitment, or 13.17% annualized - at Stock Options Channel we call this the YieldBoost .
Below is a chart showing the trailing twelve month trading history for Diageo plc, and highlighting in green where the $135.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $140.00 strike price has a current bid of $3.30. If an investor was to purchase shares of DEO stock at the current price level of $139.06/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $140.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.05% if the stock gets called away at the February 15th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DEO shares really soar, which is why looking at the trailing twelve month trading history for Diageo plc, as well as studying the business fundamentals becomes important. Below is a chart showing DEO's trailing twelve month trading history, with the $140.00 strike highlighted in red:
Considering the fact that the $140.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 54%. On our website under the contract detail page for this contract , Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.37% boost of extra return to the investor, or 22.21% annualized, which we refer to as the YieldBoost .
The implied volatility in the put contract example is 22%, while the implied volatility in the call contract example is 21%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $139.06) to be 16%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if DEO shares really soar, which is why looking at the trailing twelve month trading history for Diageo plc, as well as studying the business fundamentals becomes important. Below is a chart showing DEO's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Diageo plc (Symbol: DEO) saw new options become available this week, for the February 15th expiration.
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Below is a chart showing DEO's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Diageo plc (Symbol: DEO) saw new options become available this week, for the February 15th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the DEO options chain for the new February 15th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing DEO's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Diageo plc (Symbol: DEO) saw new options become available this week, for the February 15th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the DEO options chain for the new February 15th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel , our YieldBoost formula has looked up and down the DEO options chain for the new February 15th contracts and identified one put and one call contract of particular interest. Below is a chart showing DEO's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Diageo plc (Symbol: DEO) saw new options become available this week, for the February 15th expiration.
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5f3704c4-896e-479f-9a70-305cf8c6ec0d
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727817.0
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2019-01-03 00:00:00 UTC
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3 Dividend Stocks Ideal for Retirees
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DEO
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https://www.nasdaq.com/articles/3-dividend-stocks-ideal-retirees-2019-01-03
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nan
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nan
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Analysts say we can expect more market volatility this year and that we may be heading for a recession. Retirees and those about to retire are likely especially worried about what such a scenario would mean for their portfolios.
But because retirement is a time of limited ability to generate new income, having a portfolio of stocks that you can count on through good times and bad is particularly important. With this in mind, three Motley Fool contributors find Walt Disney (NYSE: DIS) , BP (NYSE: BP) , and Diageo (NYSE: DEO) ideal stocks for retirees.
This Mickey Mouse dividend is dead serious
Anders Bylund (Walt Disney): The House of Mouse deserves more respect from the dividend-investing community than it gets. With a modest 1.6% dividend yield, the stock is easily overlooked. A quirky semi-annual payout schedule instead of the more common quarterly payouts might also cloud the picture a bit. But Disney is pumping more than $2.5 billion into dividend payments each year and has grown those payouts five times larger over the last decade. And all of this shareholder-friendly goodness is powered by one of the most effective cash machines I know.
Put all of that together, and the forecast calls for stable and rising dividend payouts for the foreseeable future.
At first glance, the pending merger with Twenty-First Century Fox (NASDAQ: FOX) (NASDAQ: FOXA) looks like a threat to Disney's dividend growth, but the deal actually won't drain the company's cash coffers. Instead, Disney will swap out existing Fox shares for freshly printed Disney stubs . And Fox's own dividend policy comes with a billion-dollar annual budget of its own, arguably allowing Disney to make up for the dilutive effect of adding more shares by adding Fox's old dividend budget to the combined company's total payouts.
So we're looking at a peerless consumer brand with miles and miles of proven business muscle, paired with a generous and growing dividend policy. That's an income-generating machine for the long run, and you'll never lose a minute of sleep worrying about Disney's future. Sounds like a winning retirement strategy to me.
Income that keeps coming in
John Bromels (BP): The first thing many retirees will like about BP is its current dividend yield: At a mouth-watering 6.4%, it's one of the highest in its industry. But since most retirement portfolios need to last for decades, a stock's current yield isn't necessarily a good indication that it's right for retirees.
BP has also been posting stellar performance over the past year, thanks in large part to rising oil prices . On a trailing-12-month basis, for example, BP's net earnings have skyrocketed more than 150%. In its most recent quarter, Q3 2018 , revenue was up 32.9% and net earnings were up 93.2% over the prior year.
It's great that BP can perform well when times are good, but over the course of 30 (or, hopefully, more) years, a retiree's portfolio is going to encounter slow periods as well. Thankfully, BP and its dividend have a solid track record during turbulent times, too.
During the oil price slump of 2014-17, for example, when many smaller oil and gas companies were slashing dividends, BP held its payout steady. That was possible thanks in large part to its lucrative downstream (refining and marketing) arm, which isn't as dependent on oil prices as its upstream (exploration and production) arm.
In fact, BP has cut its dividend only once in the last 15 years: back in 2011, during the aftermath of the Deepwater Horizon oil spill in the Gulf of Mexico. Even that incident -- about as big a catastrophe as an oil company could ever expect to encounter -- didn't force BP to eliminate its dividend, although the company reduced it by 50%. That demonstrates BP's commitment to rewarding its shareholders and the reliability of its payout. Overall, BP is an excellent choice for a retiree's portfolio.
I'll drink to that
Rich Duprey(Diageo): Diageo is the world's largest distiller, and makes most of its money selling Johnnie Walker scotch whisky, the global leader in scotch, but also has some of the best-known spirits on the market too, including Smirnoff vodka, Captain Morgan spiced rum, and Bailey's cream liqueur.
The distiller is making a play to corner the premium-and-above category in spirits, and recently sold off most of its value brands . Diageo is looking to distinguish itself in the space as Nielsen data indicates ultra-premium spirits are the fastest-growing segment in spirits. High-end spirits account for 55% of total volume and 62% of dollar sales.
The moves to insulate itself from the vagaries of the lower end of the market make Diageo a good candidate for a retiree's portfolio; should the economy go into recession, the distiller will feel it less. Diageo's chairman seems to agree as he recently spent $1.3 million to buy a tranche of 35,000 shares of the company's stock.
The other benefit of Diageo stock for the retiree investor: It pays a dividend that yields 3% annually. The distiller's payout ratio of 77% means that although the dividend is covered, it's on the high side and investors may not see many increases. Analysts, though, are forecasting earnings to grow to $7.38 per share this year, which means the payout ratio will fall to around 56%. We'd like to see it go even lower, and as the company focuses on the premium-and-above category while eliminating its value spirits, the payout ratio should head even lower.
10 stocks we like better than BP
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and BP wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 14, 2018
Anders Bylund owns shares of Walt Disney. John Bromels owns shares of BP, Diageo, and Walt Disney. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Walt Disney. 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.
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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With this in mind, three Motley Fool contributors find Walt Disney (NYSE: DIS) , BP (NYSE: BP) , and Diageo (NYSE: DEO) ideal stocks for retirees. In fact, BP has cut its dividend only once in the last 15 years: back in 2011, during the aftermath of the Deepwater Horizon oil spill in the Gulf of Mexico. I'll drink to that Rich Duprey(Diageo): Diageo is the world's largest distiller, and makes most of its money selling Johnnie Walker scotch whisky, the global leader in scotch, but also has some of the best-known spirits on the market too, including Smirnoff vodka, Captain Morgan spiced rum, and Bailey's cream liqueur.
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With this in mind, three Motley Fool contributors find Walt Disney (NYSE: DIS) , BP (NYSE: BP) , and Diageo (NYSE: DEO) ideal stocks for retirees. And Fox's own dividend policy comes with a billion-dollar annual budget of its own, arguably allowing Disney to make up for the dilutive effect of adding more shares by adding Fox's old dividend budget to the combined company's total payouts. John Bromels owns shares of BP, Diageo, and Walt Disney.
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With this in mind, three Motley Fool contributors find Walt Disney (NYSE: DIS) , BP (NYSE: BP) , and Diageo (NYSE: DEO) ideal stocks for retirees. And Fox's own dividend policy comes with a billion-dollar annual budget of its own, arguably allowing Disney to make up for the dilutive effect of adding more shares by adding Fox's old dividend budget to the combined company's total payouts. Income that keeps coming in John Bromels (BP): The first thing many retirees will like about BP is its current dividend yield: At a mouth-watering 6.4%, it's one of the highest in its industry.
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With this in mind, three Motley Fool contributors find Walt Disney (NYSE: DIS) , BP (NYSE: BP) , and Diageo (NYSE: DEO) ideal stocks for retirees. But since most retirement portfolios need to last for decades, a stock's current yield isn't necessarily a good indication that it's right for retirees. In its most recent quarter, Q3 2018 , revenue was up 32.9% and net earnings were up 93.2% over the prior year.
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2018-12-26 00:00:00 UTC
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Diageo's Chairman Just Spent $1.2 Billion on Its Stock. Should You Buy, Too?
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DEO
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https://www.nasdaq.com/articles/diageos-chairman-just-spent-12-billion-its-stock-should-you-buy-too-2018-12-26
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nan
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Investing legend Peter Lynch once noted that executives can sell company stock for many reasons, but they typically buy it for only one: They think it is going up. Although there are a bunch of caveats to that truism, it is seen as a bullish signal.
Since the chairman of Diageo (NYSE: DEO) plunked down almost $1.3 million to buy the distiller's stock the other day, perhaps investors should take a look at whether they should follow his lead and buy in themselves.
Swinging for the fences
Chairman Javier Ferran has a history of buying big tranches of Diageo stock, purchasing tens of thousands of shares at a time. Because he came to the distiller with a distinguished pedigree in the spirits business, one can assume he has an intimate knowledge of he business toggle him insight.
Prior to becoming chairman of Diageo's board in January 2017, he served as managing director of vermouth maker Martini & Rossi, president and CEO of rum giant Bacardi, and also serving as a non-executive director at SABMiller before it was acquired by Anheuser-Busch InBev .
His stock purchases are made on London's FTSE exchange, so they're not completely analogous to how Diageo's U.S.-listed shares would perform, but below are the returns he would have generated based on the distiller's stock price on the NYSE.
Data source: Shares Magazine.
It's clear that Ferran has not been shy when betting on Diageo's future, and there are a number of other, smaller share amounts he's purchased along the way, too. These are just his biggest bets.
A premium point of view
Shares of Diageo are down almost 5% year to date, which would make Ferran's purchase timely, but simply because a stock is down doesn't make it a buy. The distiller's attempt to dominate the premium and above spirits category , though, just might.
Diageo owns the world's biggest scotch whiskey in Johnnie Walker, from which it makes most of its $16 billion in total annual sales, but it has recently heavily invested in tequila, including its purchase of actor George Clooney's Casamigos brand, as well as a number of premium vodka labels such as Ciroc and Smirnoff.
While vodka has been a weak category for the distiller, whiskey has never been more popular , and with its offshoot Jane Walker brand, Diageo is attempting to take a leadership position in the growing women demographic.
Diageo also just finished selling off its value brand of spirits to Sazerac, which may be best known for its cinnamon-flavored whiskey Fireball, but the divestiture gives Diageo greater focus on its top-shelf portfolio. Nielsen data shows that high-end spirits now account for 55% of total industry spirits volume and 62% of dollar sales, but it is the ultra-premium spirits segment that is growing the fastest.
Considering how the distiller is positioning itself in this lucrative market, and that its chairman is making another big buy bet on the company's stock, it might not be the worst investment to buy your own stake in Diageo.
Key investment takeaway
Insiders aren't always right on the direction their company's stock will take, but when one with specialized knowledge of his industry who has a pretty good track record of choosing his entry points drops over $1 million on its shares, it's definitely a noodle point that investors should consider.
10 stocks we like better than Diageo
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Diageo wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 14, 2018
Rich Duprey has no position in any of the stocks mentioned. The Motley Fool recommends Anheuser-Busch InBev NV and 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.
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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Since the chairman of Diageo (NYSE: DEO) plunked down almost $1.3 million to buy the distiller's stock the other day, perhaps investors should take a look at whether they should follow his lead and buy in themselves. Swinging for the fences Chairman Javier Ferran has a history of buying big tranches of Diageo stock, purchasing tens of thousands of shares at a time. Diageo owns the world's biggest scotch whiskey in Johnnie Walker, from which it makes most of its $16 billion in total annual sales, but it has recently heavily invested in tequila, including its purchase of actor George Clooney's Casamigos brand, as well as a number of premium vodka labels such as Ciroc and Smirnoff.
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Since the chairman of Diageo (NYSE: DEO) plunked down almost $1.3 million to buy the distiller's stock the other day, perhaps investors should take a look at whether they should follow his lead and buy in themselves. A premium point of view Shares of Diageo are down almost 5% year to date, which would make Ferran's purchase timely, but simply because a stock is down doesn't make it a buy. Considering how the distiller is positioning itself in this lucrative market, and that its chairman is making another big buy bet on the company's stock, it might not be the worst investment to buy your own stake in Diageo.
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Since the chairman of Diageo (NYSE: DEO) plunked down almost $1.3 million to buy the distiller's stock the other day, perhaps investors should take a look at whether they should follow his lead and buy in themselves. His stock purchases are made on London's FTSE exchange, so they're not completely analogous to how Diageo's U.S.-listed shares would perform, but below are the returns he would have generated based on the distiller's stock price on the NYSE. A premium point of view Shares of Diageo are down almost 5% year to date, which would make Ferran's purchase timely, but simply because a stock is down doesn't make it a buy.
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Since the chairman of Diageo (NYSE: DEO) plunked down almost $1.3 million to buy the distiller's stock the other day, perhaps investors should take a look at whether they should follow his lead and buy in themselves. A premium point of view Shares of Diageo are down almost 5% year to date, which would make Ferran's purchase timely, but simply because a stock is down doesn't make it a buy. Considering how the distiller is positioning itself in this lucrative market, and that its chairman is making another big buy bet on the company's stock, it might not be the worst investment to buy your own stake in Diageo.
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727819.0
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2018-12-24 00:00:00 UTC
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2 Top Alcohol Stocks to Buy in 2019
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DEO
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https://www.nasdaq.com/articles/2-top-alcohol-stocks-buy-2019-2018-12-24
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nan
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With few exceptions, 2018 was a terrible year for alcohol stocks. Booze consumption is on the rise, albeit at a slower rate than a few years ago, according to data researcher Nielsen. However, sales growth is being surpassed by expansion in new drink options -- driven by changing consumer trends, especially in the craft beer movement and other premium beverages. There have also been numerous shake-ups over the last few years, with brands changing hands and consolidating to fewer companies -- like Anheuser-Busch InBev 's takeover of SABMiller in 2016 and purchase of a handful of regional craft brewers.
While innovation and choice are great for the consumer, it hasn't worked out so well for alcohol stocks. Sales and profit margins are under pressure, sending stock prices spiraling lower (with the exception of Sam Adams beer maker Boston Beer Company (NYSE: SAM) , which rebounded from a terrible 2017). With many names beaten down and ignored by investors, some could be a real value as 2019 gets underway.
Data source: Yahoo! Finance and YCharts.
Stay away from beer, except for this one
Constellation Brands has done well the last few years. Since the start of 2016, revenues have increased 21% and free cash flow (money left over after basic operations are paid for) is up 138% -- bucking slow-growth trends in the industry overall. Much of the company's success has been from Corona and Modelo import beers, but Constellation is a multi-brand company that also owns names like Robert Mondavi wine and SVEDKA vodka.
2018 will go down as the year Constellation adds marijuana to its portfolio. The company was an early mover into the Canadian pot industry, placing a whopping $4 billion investment on Canopy Growth (NYSE: CGC) . To help pay for its new venture, the company is reportedly planning on selling part of its wine business for about $3 billion.
Since the announced investment, pot stocks have taken a huge step backwards. Canopy Growth's stock price has been cut in half from its all-time high reached over the fall months. Plus, Constellation hasn't been alone as other companies have followed its lead and made strategic investments in the marijuana industry. The market has taken note of the competitive landscape that is shaping up -- and the frothy valuation that Constellation made its bet -- and has punished Constellation shares, too.
However, after the drubbing, the multibrand adult beverage company looks like a real value. Shares trade at a mere 10.0 times the last year's worth of profits, even though total sales of beer were up 10.5% and wine and spirits up 9.3% in the company's second quarter of fiscal year 2019. Thus, this stock could be due for a bounce-back in the new year if that sales momentum continues.
Premium spirits, premium income stock?
Diageo is the world's largest distiller, with brands like Johnnie Walker, Crown Royal, Smirnoff, and Captain Morgan. It also plays in the beer industry with Irish brewer Guinness , though sales are a small fraction of the company's total.
Diageo has been in the process of whittling down its offerings to focus more exclusively on premium beverages. The company recently sold a handful of value brands to Sazerac and offloaded its small brewing operation in South Africa. Net proceeds are going toward share repurchases to aid in the return of capital to shareholders, and also help sharpen Diageo's focus on its fastest-growing and most profitable segment: premium spirits.
Distilling is a slow-growth endeavor, though, and Diageo's organic revenue growth has been in the low single digits (organic numbers exclude the effects of acquisitions and divestitures of brands) for years. Nevertheless, organic operating income is still on the rise (up 7.6% for the year ended June 30, 2018) and management introduced a new share buyback program totaling 2.0 billion euros over the summer. The dividend was also increased by 5% and is currently yielding 3% a year.
Though it's a boring stock, the slow-and-steady nature of Diageo's operations makes it worth keeping an eye on in an alcohol industry that has been marked by such great upheaval. Over the last trailing five-year stretch, share prices are up only 9.8% as of this writing, but total return with reinvested dividends has produced a 26% return. That's worth considering given how volatile other alcohol stocks have been lately.
Shifting consumer trends and growth in the number of beverage producers have made investing in alcohol a difficult endeavor over the last few years. 2018 will go down as one of the more forgettable stretches as the industry makes adjustments, but the pummeling many stocks have received could mean there's value to be had.
10 stocks we like better than Constellation Brands
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Constellation Brands wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 14, 2018
Nicholas Rossolillo and his clients have no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Boston Beer. The Motley Fool owns shares of Molson Coors Brewing. The Motley Fool recommends Anheuser-Busch InBev NV, Constellation Brands, and 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.
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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Net proceeds are going toward share repurchases to aid in the return of capital to shareholders, and also help sharpen Diageo's focus on its fastest-growing and most profitable segment: premium spirits. Nevertheless, organic operating income is still on the rise (up 7.6% for the year ended June 30, 2018) and management introduced a new share buyback program totaling 2.0 billion euros over the summer. Though it's a boring stock, the slow-and-steady nature of Diageo's operations makes it worth keeping an eye on in an alcohol industry that has been marked by such great upheaval.
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Sales and profit margins are under pressure, sending stock prices spiraling lower (with the exception of Sam Adams beer maker Boston Beer Company (NYSE: SAM) , which rebounded from a terrible 2017). Shifting consumer trends and growth in the number of beverage producers have made investing in alcohol a difficult endeavor over the last few years. The Motley Fool recommends Anheuser-Busch InBev NV, Constellation Brands, and Diageo.
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Sales and profit margins are under pressure, sending stock prices spiraling lower (with the exception of Sam Adams beer maker Boston Beer Company (NYSE: SAM) , which rebounded from a terrible 2017). Shares trade at a mere 10.0 times the last year's worth of profits, even though total sales of beer were up 10.5% and wine and spirits up 9.3% in the company's second quarter of fiscal year 2019. 10 stocks we like better than Constellation Brands When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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Stay away from beer, except for this one Constellation Brands has done well the last few years. Plus, Constellation hasn't been alone as other companies have followed its lead and made strategic investments in the marijuana industry. Shares trade at a mere 10.0 times the last year's worth of profits, even though total sales of beer were up 10.5% and wine and spirits up 9.3% in the company's second quarter of fiscal year 2019.
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2018-12-20 00:00:00 UTC
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7 Safe Dividend Stocks to Buy Now
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DEO
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https://www.nasdaq.com/articles/7-safe-dividend-stocks-to-buy-now-2018-12-20
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Most investors can accept that the market often tanks right around Halloween, but December is supposed to be a cheerful time of year! It doesn't appear we're getting a Santa Claus rally after all. Value, growth, dividend stocks - everything is on edge.
While the American economy remains robust, other headwinds are causing investors to panic. Causing perhaps the most concern , the new Federal Reserve Board Chair - Jerome Powell - seems inclined to keep hiking interest rates regardless of what markets do. That is in stark contrast to Ben Bernanke and Janet Yellen, who would always back off whenever markets showed weakness.
On top of that, trade war problems are continuing to mount. We're seeing increasing cost pressures in this earnings season.
Add it all up, and things are starting to get tense. That leaves investors wondering where they can go for safety.
5 Low-Priced Stocks Under $10 for the New Year
After years of tech outperforming everything, earnings misses from Alphabet (NASDAQ: GOOG , NASDAQ: GOOGL ), Amazon (NASDAQ: AMZN ) and numerous semiconductor companies have people bailing on growth as well. That leaves safe-haven dividend stocks as a more favorable alternative. Here are seven worth taking a look at today.
Diageo (DEO)
Source: Puamella via Flickr (Modified)
Dividend Yield: 3.92%
Rain or shine, good economy or bad, people like to drink alcohol. And for safe dividend seekers, that makes Diageo (NYSE: DEO ) an ideal play. While its name may not be familiar, its brands almost certainly are. Diageo owns and manufactures Guinness beer, Captain Morgan rum, Smirnoff vodka and Johnnie Walker whiskey, among many others.
DEO stock is a well-known safe haven for investors. The company is headquartered in the U.K., and was one of the very few stocks to go up the day after Brexit in that country as British investors sold risky stocks and moved to safety. Diageo will again serve as a safe haven whenever the next bear market/recession hits.
Diageo isn't just a great business, it's also a great dividend play. The company has continuously raised its dividend (as measured in its home currency of British Pounds) each of the past 20 years. Diageo pays a just over 3% dividend at present, and has increased that annually at a more than 7% clip over the past 10 years. Not bad for an ultra-recession-proof stock now selling at just 18x forward earnings.
Kraft Heinz (KHC)
Dividend Yield: 5.6%
Just as people keep drinking during hard times, they also keep eating affordable food. Enter the multinational food giant Kraft Heinz (NYSE: KHC ). While the 3G and Warren Buffett-led megamerger has yet to deliver big returns to shareholders, that creates an opportunity for us today. With KHC stock now at $53 - sharply down from $80 at the beginning of the year - the worst has already come and gone for Kraft Heinz.
At this price, the market is assuming that almost nothing good could happen for the company. That despite it owning Lunchables, Maxwell House, Philadelphia and a trove of other brands in addition to the namesakes Kraft, and Heinz. Given the recent decline in the share price, KHC stock is now selling at under 15x forward earnings and offers a 4.7% dividend yield.
10 Strong Buy Stocks Trading at Killer Entry Points
Detractors will say that Kraft Heinz is not managing to grow revenues at the moment, and that is true. However, it's dangerous to discount the management of business tycoons 3G, and don't forget that Warren Buffett is involved as well. While the company is facing short-term struggles, it should be able to turn the corner. And there's nothing like a market sell-off to make investors go looking for deep value in these safe dividend food plays.
Campbell Soup (CPB)
Source: Meal Makeover Moms via Flickr (Modified)
Dividend Yield: 3.7%
Speaking of safe food holdings, let's turn to Campbell Soup (NYSE: CPB ). This is another of the unloved packaged foods makers. It's not hard to see why, if you only think about the company's name. Canned soup certainly isn't trendy with younger consumers at this point. And there's a general nutritional wariness about heavily salted foods.
That said, there's much more to Campbell Soup than just the iconic red cans. The company is more and more a snack food play. As we know, while Americans profess an interest in healthier eating, they still love their junk food from time to time. Campbell's - owner of Hanover, Pop Secret, Goldfish and Pepperidge Farm - is in a great position to profit off of this.
Pepsico (NYSE: PEP ), the leader in snacks, consistently gets a high P/E ratio from the market, as investors acknowledge the stickiness of their brands with consumers. The market, however, is not appreciating Campbell Soup at all. Shares are down from $50 last year to $38 now. That has attracted activist investors, who got the CEO canned and are demanding more change. If shares stay down here, expect that a suitor will buy out the company at a nice premium. If not, enjoy the 3.7% dividend - the highest CPB stock has offered in at least 30 years.
PacWest Bancorp (PACW)
Source: Shutterstock
Dividend Yield: 7.4%
Investors have been dumping bank stocks over the past month. The regional and community banking ETFs are down close to 20% in recent weeks. That has created a lot of value in this generally overlooked sector of the market, where solid dividends abound.
That brings us to PacWest Bancorp (NASDAQ: PACW ), which offers a 5.7% dividend yield at the moment. Headquartered in Los Angeles, PacWest is a major player throughout the California market and currently sports a $5.2 billion market cap. That puts it in a sweet spot, size wise, where it may still be a buyout candidate, but it is large enough to manage the rising costs of regulation and banking technology costs.
10 Small-Cap Stocks That Look Like Bargains
Despite the horrid state of the California housing market in 2008, PacWest survived the crisis; in fact its shares never came close to zero during the panic. The bank has come out stronger, and is now generating record profits. Thanks to the corporate tax cuts in particular, PACW stock is now at a cheap P/E ratio of just 11x trailing and 10x forward earnings.
New York Community Bancorp (NYCB)
Source: Shutterstock
Dividend Yield: 7.6%
Despite its jawdropping yield, New York Community Bancorp (NASDAQ: NYCB ) is an even safer bank stock. NYCB stock currently yields 6.9%, and they earn more than enough to cover the dividend, with earnings coming in at 80 cents and dividends at 68 cents annually.
Why is NYCB stock down? Of course, the sector is down, as discussed above. On top of that, some investors hold a resentful view toward New York Community Bancorp due to a failed merger with Astoria Financial in late 2016. Due to Trump's unexpected win, bank stocks spiked, and the deal failed to close. Investors have had it out for NYCB's management ever since.
Regardless, the bank is one of the safest in the country. It lends primarily against multi-family homes in New York City - one of the lowest-risk lending markets out there. The bank's loans barely budged in performance even during 2008. With a strong dividend covered out of earnings and a safe loan book, investors can earn a large dividend income from a most conservative bank.
Southern Co (SO)
Source: Shutterstock
Dividend Yield: 5.3%
In the worst of times, people tend to still want to use electricity. Even a severe economic downturn tends to not impact utility stocks too dramatically. As such, it's a sound sector to buy when investors get panicky, such as what we're seeing with the market now.
Southern Co (NYSE: SO ), as one of the highest-yielding large power utilities, checks the boxes for safe dividend stocks here. SO stock is currently yielding 5.2%. Prior to 2018, the last time SO stock consistently yielded more than 5%, it was 2010.
This is in large part, it seems, due to interest rates going up. Many investors treat utility stocks as substitutes for bonds. As such, when interest rates go up, investors demand a higher yield from their utility stock as well. If interest rates were to keep surging for years to come, SO stock would likely underperform.
15 Stocks Facing Big Political Risk in 2019
However, it seems that the Fed will have to slow the pace of rate hikes, given the slowdown in some economies overseas along with the dramatic drop in equities as of late. Once interest rates start to stabilize, in a slowing economy, a stock like Southern Co should shine.
Exxon Mobil (XOM)
Source: Shutterstock
Expense Ratio: 4.8%
Speaking of things people use in good times and bad, gasoline ranks pretty highly on the list. Sure there is a minor dropoff in consumption during recessions, as people take fewer road trips, for example, but in general, oil and gas is a safe haven business. And Exxon Mobil (NYSE: XOM ) as the largest U.S. player is a true sleep-well-at-night stock.
The combination of a fortress balance sheet, diversified operations and a storied dividend make XOM stock an excellent place to endure market storms. It may seem strange to call Exxon diversified. But what many investors don't realize is that much of big oil has spun off the other segments of their businesses. We saw a ton of refining and pipelines subsidiaries moved out of the parent companies into MLPs and other corporate entities. That is all well and good as far as shareholder value maximization goes. But Exxon's more diversified approach ensures that it remains solidly profitable even when the price of oil plummets, as it did in recent years.
XOM stock is hardly the most exciting in a high growth market. But at 14x earnings and paying a slightly greater than 4% dividend yield, it is a fine option for defensive investors. And with the stock little changed year-to-date, buyers here are still getting a fair value.
At the time of this writing, Ian Bezek owned DEO, CPB, PACW, KHC, NYCB and XOM stock. You can reach him on Twitter at @irbezek.
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The post 7 Safe 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.
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: Puamella via Flickr (Modified) Dividend Yield: 3.92% Rain or shine, good economy or bad, people like to drink alcohol. And for safe dividend seekers, that makes Diageo (NYSE: DEO ) an ideal play. DEO stock is a well-known safe haven for investors.
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Diageo (DEO) Source: Puamella via Flickr (Modified) Dividend Yield: 3.92% Rain or shine, good economy or bad, people like to drink alcohol. And for safe dividend seekers, that makes Diageo (NYSE: DEO ) an ideal play. DEO stock is a well-known safe haven for investors.
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Diageo (DEO) Source: Puamella via Flickr (Modified) Dividend Yield: 3.92% Rain or shine, good economy or bad, people like to drink alcohol. And for safe dividend seekers, that makes Diageo (NYSE: DEO ) an ideal play. DEO stock is a well-known safe haven for investors.
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Diageo (DEO) Source: Puamella via Flickr (Modified) Dividend Yield: 3.92% Rain or shine, good economy or bad, people like to drink alcohol. And for safe dividend seekers, that makes Diageo (NYSE: DEO ) an ideal play. DEO stock is a well-known safe haven for investors.
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727821.0
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2018-12-16 00:00:00 UTC
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These Distillers Should Gain as Whiskey's Popularity Grows
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DEO
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https://www.nasdaq.com/articles/these-distillers-should-gain-whiskeys-popularity-grows-2018-12-16
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nan
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nan
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The popularity of Jack Daniel's whiskey is rising. According to new YouGov polling data , one-quarter of U.S. men have it on their consideration list for the next time they buy liquor. That puts it at the top of the heap.
That's not surprising, as the Brown-Forman (NYSE: BF-A) (NYSE: BF-B) Tennessee whiskey is by far the most popular spirit and whiskey on the market, but it is also a big leap from last year, when only 20% of men said they would consider buying a bottle.
Whiskey river
The whiskey market has seen eight straight years of market share gains and 2018 is likely to be the ninth consecutive year of growth. Beer may still be the all-around most popular alcoholic beverage, but the Distilled Spirits Council says whiskey, and in particular American whiskey like Jack Daniel's, has been enjoying some of the strongest growth rates of any spirit. Last year over 23 million 9-liter cases of American whiskey were sold in the U.S., generating some $3.4 billion in revenue for distillers.
Much of the growth has been fed by the premiumization trend, with high-end premium brands seeing 46% revenue growth over the past five years (through 2017) and super-premium brands witnessing a gain of 148%.
Brown-Forman reported its fiscal 2019 second-quarter earnings last week and noted that while the Jack Daniel's family of American whiskey grew underlying net sales by 5% globally for the period, its super-premium brands, including Jack Daniel's Single Barrel and Gentleman Jack, saw underlying net sales surge 19% from last year.
The YouGov survey also reported higher interest in Diageo 's (NYSE: DEO) blended Canadian whisky, Crown Royal, reporting that 19% of men were considering purchasing a bottle.
Diageo, the world's largest distiller, reported Crown Royal's organic net sales rose 5% in fiscal 2018, and in line with premiumization, its Bulleit bourbon continued to notch double-digit growth, with sales up 10% from the prior year.
Jim Beam bourbon is another American whiskey men are willing to consider this holiday season, as 14% of those surveyed by YouGov said it would be on their consideration list. It also happens to be the eighth-most-popular spirit and the third-most-popular whiskey behind Jack Daniel's and Crown Royal.
A feminine touch
Although the YouGov poll asked men what they thought, women are the fastest-growing demographic pushing whiskey sales higher. Earlier this year, Diageo launched its Jane Walker brand, an offshoot of the world's best-selling Johnnie Walker Scotch whisky. Beam Suntory has also prominently featured actress Mila Kunis in its Jim Beam advertising. Beer and wine might still be the preferred adult beverages for women, but whiskey was the drink of choice for more than a quarter of them.
This latest polling data suggest that distillers such as Brown-Forman and Diageo may be having an especially merry Christmas this year.
10 stocks we like better than Brown-Forman (B Shares)
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David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Brown-Forman (B Shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of November 14, 2018
Rich Duprey 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.
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 YouGov survey also reported higher interest in Diageo 's (NYSE: DEO) blended Canadian whisky, Crown Royal, reporting that 19% of men were considering purchasing a bottle. Jim Beam bourbon is another American whiskey men are willing to consider this holiday season, as 14% of those surveyed by YouGov said it would be on their consideration list. A feminine touch Although the YouGov poll asked men what they thought, women are the fastest-growing demographic pushing whiskey sales higher.
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The YouGov survey also reported higher interest in Diageo 's (NYSE: DEO) blended Canadian whisky, Crown Royal, reporting that 19% of men were considering purchasing a bottle. Brown-Forman reported its fiscal 2019 second-quarter earnings last week and noted that while the Jack Daniel's family of American whiskey grew underlying net sales by 5% globally for the period, its super-premium brands, including Jack Daniel's Single Barrel and Gentleman Jack, saw underlying net sales surge 19% from last year. Diageo, the world's largest distiller, reported Crown Royal's organic net sales rose 5% in fiscal 2018, and in line with premiumization, its Bulleit bourbon continued to notch double-digit growth, with sales up 10% from the prior year.
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The YouGov survey also reported higher interest in Diageo 's (NYSE: DEO) blended Canadian whisky, Crown Royal, reporting that 19% of men were considering purchasing a bottle. That's not surprising, as the Brown-Forman (NYSE: BF-A) (NYSE: BF-B) Tennessee whiskey is by far the most popular spirit and whiskey on the market, but it is also a big leap from last year, when only 20% of men said they would consider buying a bottle. Whiskey river The whiskey market has seen eight straight years of market share gains and 2018 is likely to be the ninth consecutive year of growth.
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The YouGov survey also reported higher interest in Diageo 's (NYSE: DEO) blended Canadian whisky, Crown Royal, reporting that 19% of men were considering purchasing a bottle. Beer may still be the all-around most popular alcoholic beverage, but the Distilled Spirits Council says whiskey, and in particular American whiskey like Jack Daniel's, has been enjoying some of the strongest growth rates of any spirit. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.
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827adaf4-09b5-4189-9a8b-d53bd30c9030
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727822.0
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2018-12-06 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-2018-12-06
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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 below their 200 day moving average of $141.59, changing hands as low as $140.88 per share. Diageo plc shares are currently trading down about 1.7% 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 $131.22 per share, with $151.305 as the 52 week high point - that compares with a last trade of $140.99.
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.
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 below their 200 day moving average of $141.59, changing hands as low as $140.88 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 $131.22 per share, with $151.305 as the 52 week high point - that compares with a last trade of $140.99. 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 Thursday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $141.59, changing hands as low as $140.88 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 $131.22 per share, with $151.305 as the 52 week high point - that compares with a last trade of $140.99. 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 Thursday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $141.59, changing hands as low as $140.88 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 $131.22 per share, with $151.305 as the 52 week high point - that compares with a last trade of $140.99. 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 Thursday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $141.59, changing hands as low as $140.88 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 $131.22 per share, with $151.305 as the 52 week high point - that compares with a last trade of $140.99. 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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81c308cb-9a43-4db8-9bf2-e11a4a745d1e
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727823.0
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2018-12-02 00:00:00 UTC
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Diageo Makes Its Move to Dominate Premium Spirits
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DEO
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https://www.nasdaq.com/articles/diageo-makes-its-move-dominate-premium-spirits-2018-12-02
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nan
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nan
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Offloading its portfolio of value spirits brands won't change much at Diageo (NYSE: DEO) , as the division represented just a small portion of the distiller's nearly $16 billion in total sales. The transaction, however, will transform Diageo into virtually an exclusive distiller of premium spirits.
As the world's largest distiller, the U.S. is Diageo's biggest, most important market, but it has lagged behind other countries so the transaction will allow the company to focus more intently on returning the region to growth.
Shedding its low-brow business
Diageo is selling 19 value brands to privately held Sazerac, best known for Fireball, its cinnamon-flavored whiskey, and Southern Comfort, the whiskey brand it acquired from Brown-Forman two years ago. Sazerac is paying $550 million cash for the portfolio that includes three expressions of its Seagrams Canadian whisky family -- VO, 83, and Five Star -- rum brands Myers and Parrot Bay, Romana Sambuca liqueur, Popov vodka, and Goldschlager schnapps.
Notably excluded from the sale, however, is Seagrams 7 Crown, an American blended whiskey, suggesting it doesn't want to totally abandon the U.S. value whiskey market, which is still growing, albeit at rates far less than those recorded in the premium and above markets.
Diageo also entered into a supply contract with Sazerac to manufacture five of the brands for 10 years. The others will transition over within a year of the deal's closing, which is expected early in 2019. The proceeds from the sale will be returned to shareholders through a share buyback when the deal is completed.
Looking for peak performance
The U.S. represents over a third of Diageo's net sales and almost half of its operating profits, but organic sales rose just 4% in the fiscal year that ended in June, some of the slowest growth recorded in any of its markets. That came mostly from its premium whiskey brands including Johnnie Walker, Crown Royal, and Buchanan's, as scotch whisky accounts for a quarter of Diageo's consolidated revenue.
Yet as much as Diageo leans on whiskey for growth, the distiller is also heavily invested in premium vodka under brands such as Ciroc, Ketel One, and Smirnoff, which it considers one of its global giants. Vodka, which accounts for 12% of sales, has been the primary drag on its performance and was the only segment not to record growth last year.
Coupled with the drag from the value portfolio, Diageo has seen its performance weaken, and its shares are up only 1% in 2018.
Yet it makes sense for Diageo to concentrate on the high end of the liquor trade. As the Distilled Spirits Council's chief economist, David Ozgo, noted, "Adult consumers, particularly millennials, continue to gravitate toward high-end and super premium spirits products." Revenue and volumes across both of those price points were strongest.
A rich palette
Over time, Diageo has concentrated its operations on the premium and above segments, which account for two-thirds of its revenue. It has sold off most of its wine portfolio; its stake in Desnoes & Geddes, the maker of Red Stripe beer; and its Gleneagles resort. At the same time, it has been acquiring premium and above brands such as De Leon, Don Julio, and Casamigos tequila; Ciroc vodka; and earlier this year, the premium aperitif Belsazar.
Today, Diageo's primary portfolio is represented by six global brands that account for 41% of total net sales; seven "local stars" that are popular in different markets, representing 20% of sales; and a dozen above-premium "reserve" brands that comprise another 16% of sales. Getting rid of the value end of its portfolio, which is only a fraction of total sales, makes sense.
Premiumization in spirits is a global trend and this sale cements Diageo's position at the top.
10 stocks we like better than Diageo
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Diageo wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 14, 2018
Rich Duprey 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.
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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Offloading its portfolio of value spirits brands won't change much at Diageo (NYSE: DEO) , as the division represented just a small portion of the distiller's nearly $16 billion in total sales. As the world's largest distiller, the U.S. is Diageo's biggest, most important market, but it has lagged behind other countries so the transaction will allow the company to focus more intently on returning the region to growth. Sazerac is paying $550 million cash for the portfolio that includes three expressions of its Seagrams Canadian whisky family -- VO, 83, and Five Star -- rum brands Myers and Parrot Bay, Romana Sambuca liqueur, Popov vodka, and Goldschlager schnapps.
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Offloading its portfolio of value spirits brands won't change much at Diageo (NYSE: DEO) , as the division represented just a small portion of the distiller's nearly $16 billion in total sales. Yet as much as Diageo leans on whiskey for growth, the distiller is also heavily invested in premium vodka under brands such as Ciroc, Ketel One, and Smirnoff, which it considers one of its global giants. Today, Diageo's primary portfolio is represented by six global brands that account for 41% of total net sales; seven "local stars" that are popular in different markets, representing 20% of sales; and a dozen above-premium "reserve" brands that comprise another 16% of sales.
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Offloading its portfolio of value spirits brands won't change much at Diageo (NYSE: DEO) , as the division represented just a small portion of the distiller's nearly $16 billion in total sales. Looking for peak performance The U.S. represents over a third of Diageo's net sales and almost half of its operating profits, but organic sales rose just 4% in the fiscal year that ended in June, some of the slowest growth recorded in any of its markets. Today, Diageo's primary portfolio is represented by six global brands that account for 41% of total net sales; seven "local stars" that are popular in different markets, representing 20% of sales; and a dozen above-premium "reserve" brands that comprise another 16% of sales.
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Offloading its portfolio of value spirits brands won't change much at Diageo (NYSE: DEO) , as the division represented just a small portion of the distiller's nearly $16 billion in total sales. The transaction, however, will transform Diageo into virtually an exclusive distiller of premium spirits. Shedding its low-brow business Diageo is selling 19 value brands to privately held Sazerac, best known for Fireball, its cinnamon-flavored whiskey, and Southern Comfort, the whiskey brand it acquired from Brown-Forman two years ago.
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89cc435e-e135-4347-a2e9-beca867e0031
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727824.0
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2018-11-28 00:00:00 UTC
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This Might Be the Most Anticipated Marijuana Deal of 2019
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DEO
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https://www.nasdaq.com/articles/might-be-most-anticipated-marijuana-deal-2019-2018-11-28
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nan
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nan
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The marijuana industry has put on a show for pot enthusiasts and investors this year. The highlight, as you can imagine, was the legalization of recreational cannabis on Oct. 17 in Canada. In a few years, after the industry has had time to expand its capacity and lay the foundation for its sales channels, $5 billion or more in added annual sales may be possible.
But for as impressive as the cannabis industry has been so far, all eyes are now turning to what 2019 might hold for pot stocks. While it's impossible to tell what'll happen with any certainty, investors will likely be waiting on the edge of their seats for one beverage giant to choose a cannabis partner.
Is 2019 the year this $88 billion beverage giant finds its weed partner?
For those who may not recall, August 2018 kicked off a monster rally in marijuana stocks. That was because two major beverage companies announced partnerships or investments with pot stocks in an effort to develop cannabis-infused beverages (and possibly other products).
It began on Aug. 1 when Molson Coors Brewing (NYSE: TAP) announced that it had formed a 57.5%-42.5% joint venture with Quebec-based grower HEXO . This was the first sizable partnership geared toward cannabis-infused beverage production. Mind you, Molson Coors and HEXO were looking quite a bit into the future when they made this deal. That's because only dried cannabis and oils are permitted for sale at the moment. Alternative cannabis products such as vapes, edibles, concentrates, and infused beverages will need to be reviewed and approved for consumption by Parliament. This is expected to happen by next summer .
Two weeks later, on Aug. 15, Constellation Brands (NYSE: STZ) announced what would be the biggest deal in marijuana history with Canopy Growth (NYSE: CGC) . By purchasing 104.5 million shares of Canopy's common stock, Constellation, the maker of the Corona and Modelo beer brands, lifted its stake in the company to 37% . It also lined Canopy's coffers with $4 billion in cash that it can use for acquisitions, capacity expansion, and improving its international sales channels. Constellation and Canopy are fully expected to work on infused beverages when they become legal, but with a 37% equity stake, it's pretty evident that Constellation has far greater ambitions for industry growth.
Just over a week later, rumors began to swirl about spirit and beer giant Diageo (NYSE: DEO) , which is probably best known for its Captain Morgan, Smirnoff, Johnnie Walker, and Guinness brands. Following initial reports from Bloomberg that Diageo was in active discussions with three unnamed marijuana companies, no deal was ever reached. However, that could all change next year.
Diageo may rightly be waiting to see how well (or poorly) growers respond to strong consumer demand for product in the early going. Additionally, since no alternative products beyond oils can be legally sold for the time being, the company may also prefer a wait-and-see approach until midyear, when it would be clearer if Parliament will indeed expand cannabis consumption options to include cannabis-infused beverages.
Diageo, which only reports its operating results every six months, announced in July that its fiscal 2018 net sales rose by a meager 0.9%. Although it generated considerably stronger profit growth, Diageo is looking for a top-line spark. Presumably, cannabis-infused beverages could be that answer.
Which pot stocks could be on Diageo's radar?
Assuming Diageo does indeed strike a partnership with a marijuana grower in 2019, the question then turns to which pot stock could be the prime beneficiary of such a deal. Keeping in mind that this is pure speculation on my part, these following three growers would make sense.
The first solid fit would be Aphria (NYSE: APHA) , which is already devoting 10% of its peak production to an extraction facility for cannabis concentrates. Aphria's management team has made a concerted effort to diversify the company's product line away from a reliance on dried cannabis, and a partnership with Diageo would further that strategy. Aphria is also on track to be the third-largest grower by peak production at an estimated 255,000 kilograms per year . With access to a dozen markets and an existing run rate of 35,000 kilograms a year, Aphria would appear to have a good shot at landing a partnership with Diageo.
A second candidate, which is a bit of a dark horse, is The Green Organic Dutchman . The Green Organic Dutchman, based on management's own peak production forecast of 195,000 kilograms, could be the nation's fourth- or fifth-largest producer. It's also devoting just over 20% of this production to edibles and infused beverages, which would seem to be a seamless invite to a larger player like Diageo. The downside is that The Green Organic Dutchman won't even recognize its first sale until the first half of next year and is therefore trailing its peers in production ramp-up .
Third and finally, Aurora Cannabis might be an option. Following its acquisition of ICC Labs in South America, Aurora is on track to produce an author-estimated 700,000 kilograms at peak capacity, if not more. As of November 2018, it already had an annual run rate of 70,000 kilograms of cannabis. Its access to 18 markets and output potential alone make Aurora Cannabis a viable candidate.
Only time will tell if Diageo takes the next step; but if it does, it'll potentially be the deal of the year.
10 stocks we like better than Diageo
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Diageo wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 14, 2018
Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of Molson Coors Brewing. The Motley Fool recommends Constellation Brands, Diageo, and Hexo. 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.
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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Just over a week later, rumors began to swirl about spirit and beer giant Diageo (NYSE: DEO) , which is probably best known for its Captain Morgan, Smirnoff, Johnnie Walker, and Guinness brands. Additionally, since no alternative products beyond oils can be legally sold for the time being, the company may also prefer a wait-and-see approach until midyear, when it would be clearer if Parliament will indeed expand cannabis consumption options to include cannabis-infused beverages. Aphria's management team has made a concerted effort to diversify the company's product line away from a reliance on dried cannabis, and a partnership with Diageo would further that strategy.
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Just over a week later, rumors began to swirl about spirit and beer giant Diageo (NYSE: DEO) , which is probably best known for its Captain Morgan, Smirnoff, Johnnie Walker, and Guinness brands. That was because two major beverage companies announced partnerships or investments with pot stocks in an effort to develop cannabis-infused beverages (and possibly other products). The Motley Fool owns shares of Molson Coors Brewing.
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Just over a week later, rumors began to swirl about spirit and beer giant Diageo (NYSE: DEO) , which is probably best known for its Captain Morgan, Smirnoff, Johnnie Walker, and Guinness brands. That was because two major beverage companies announced partnerships or investments with pot stocks in an effort to develop cannabis-infused beverages (and possibly other products). Assuming Diageo does indeed strike a partnership with a marijuana grower in 2019, the question then turns to which pot stock could be the prime beneficiary of such a deal.
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Just over a week later, rumors began to swirl about spirit and beer giant Diageo (NYSE: DEO) , which is probably best known for its Captain Morgan, Smirnoff, Johnnie Walker, and Guinness brands. In a few years, after the industry has had time to expand its capacity and lay the foundation for its sales channels, $5 billion or more in added annual sales may be possible. Additionally, since no alternative products beyond oils can be legally sold for the time being, the company may also prefer a wait-and-see approach until midyear, when it would be clearer if Parliament will indeed expand cannabis consumption options to include cannabis-infused beverages.
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63c6e580-0838-4f1c-ad66-afb3d653b617
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727825.0
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2018-11-13 00:00:00 UTC
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Stock Market News For Nov 13, 2018
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DEO
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https://www.nasdaq.com/articles/stock-market-news-for-nov-13-2018-2018-11-13
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nan
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nan
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U.S. stock markets plunged on Monday as record drop in shares of Apple and Goldman Sachs, and precipitous decline of crude oil prices ignificantly dented investor confidence. Moreover, Rising U.S. dollar index and lingering trade conflicts with China also weighed on investor sentiment. All three major stock indexes extended their losses after last Friday.
The Dow Jones Industrial Average (DJI) closed at 25,387.18, shedding 2.3% or 602.12 points. The S&P 500 Index (INX) declined 2% to close at 2,726.22. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 7,200.87, dropping 2.8% or 206.03 points. A total of 7.30 billion shares were traded on Monday, lower than the last 20-session average of 8.41 billion shares. Decliners outnumbered advancers on the NYSE by 2.80-to-1 ratio. On the Nasdaq, decliners had an edge over advancers by 3.64-to-1 ratio. The CBOE VIX increased 13.4% to close at 19.64.
How Did the Benchmarks Perform?
The Dow ended in negative territory for the second straight day. Notably, 26 components of the 30-stock blue-chip index closed in the red while the remaining 4 finished in the green. The tech-laden Nasdaq Composite closed in negative territory for third successive days, due to weak performance of chip makers.
Meanwhile, the S&P 500 also closed in the red for third consecutive days. Technology Select Sector SPDR (XLK) and Energy Select Sector SPDR (XLE) are major losers dropping 3.5% and 2.1%, respectively. Notably, ten out of total 11 sectors of the benchmark index closed in the red while one finished in the green.
U.S. Crude Oil Price Records Longest Decline
On Nov 12, U.S. benchmark West Texas Intermediate (WTI) crude oil future price for December delivery settled at $58.86 a barrel. This was the eleventh straight loss for WTI crude prices, the longest slide since March 1983. Moreover, for the first time since February, WTI crude oil price settled below the key psychological barrier of $60.
Recent nosedive of crude prices has raised eyebrows about an impending global economic slowdown. On Nov 8, WTI Crude oil entered into bear market as price tumbled more than 20% from its recent peak recorded at Oct 3.
Apple and Goldman Sachs Posts Record Decline
On Nov 12, shares of Apple Inc. AAPL declined 5% following the news that Lumentum Holdings Inc. LITE , a major component supplier of iPhones, lowered its guidance for fiscal second-quarter of 2019 due to a reduction in shipment to a major customer. Shares of Lumentum Holdings plummeted 33%.
Shares of The Goldman Sachs Group, Inc. GS plunged 7.5%, its highest drop in seven years following the news that Malaysia is seeking a full refund of the $600 million in fees from the company in a failed bond deal called 1MDB. The Goldman Sachs Group carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
US Dollar Index Hits 16-Month High
On Nov 13, the ICE U.S. Dollar Index, which measures the greenback's strength against a basket of six major currencies, touched 97.28, its highest level since Jun 23, 2017. Demand for the dollar intensified after the Fed hinted a possible rate hike in December and again in early 2019 last week.
Moreover, quandary regarding the acceptance of the Brexit deal by the UK parliament and a tussle between Italy and the European Union concerning fiscal discipline resulted in the decline of of Pound and Euro against the U.S. dollar. However, investors are concerned that a rising dollar will hurt sales of U.S. multinational companies as their products will be more expensive in international markets.
Battle of Tariffs Intensify
As per Axios report, President Donald Trump is mulling over levying heavy tariffs on overseas automakers. The report stated that Trump considered that a threat of hefty auto tariff was his weapon against Canada for bilateral deal. Now, he wants to sue this weapon against European Union.
Stocks That Made Headlines
Diageo to Offload 19 Brands to Sazerac, Can This Aid Growth?
Diageo plc DEO has agreed to sell a chunk of its brands portfolio, including Seagram's VO whiskey, to Sazerac - a privately-held American distiller - for $550 million. ( Read More )
Home Depot Gains on Q3 Earnings Beat, Raises FY18 View
The Home Depot, Inc. HD posted top- and bottom-line beat in third-quarter fiscal 2018.Notably, the company retained its five-year-long trend of beating earnings estimates. ( Read More )
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Diageo plc (DEO): Free Stock Analysis Report
The Home Depot, Inc. (HD): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report
Lumentum Holdings Inc. (LITE): 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.
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 agreed to sell a chunk of its brands portfolio, including Seagram's VO whiskey, to Sazerac - a privately-held American distiller - for $550 million. Click to get this free report Diageo plc (DEO): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report Lumentum Holdings Inc. (LITE): Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stock markets plunged on Monday as record drop in shares of Apple and Goldman Sachs, and precipitous decline of crude oil prices ignificantly dented investor confidence.
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report Lumentum Holdings Inc. (LITE): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc DEO has agreed to sell a chunk of its brands portfolio, including Seagram's VO whiskey, to Sazerac - a privately-held American distiller - for $550 million. U.S. Crude Oil Price Records Longest Decline On Nov 12, U.S. benchmark West Texas Intermediate (WTI) crude oil future price for December delivery settled at $58.86 a barrel.
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report Lumentum Holdings Inc. (LITE): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc DEO has agreed to sell a chunk of its brands portfolio, including Seagram's VO whiskey, to Sazerac - a privately-held American distiller - for $550 million. U.S. stock markets plunged on Monday as record drop in shares of Apple and Goldman Sachs, and precipitous decline of crude oil prices ignificantly dented investor confidence.
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Diageo plc DEO has agreed to sell a chunk of its brands portfolio, including Seagram's VO whiskey, to Sazerac - a privately-held American distiller - for $550 million. Click to get this free report Diageo plc (DEO): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report Lumentum Holdings Inc. (LITE): Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stock markets plunged on Monday as record drop in shares of Apple and Goldman Sachs, and precipitous decline of crude oil prices ignificantly dented investor confidence.
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3ffac251-9070-48e8-90d1-c86c2741d62a
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727826.0
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2018-11-12 00:00:00 UTC
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Consumer Sector Update for 11/12/2018: BZUN, DEO, BABA, WMT, MCD, DIS, CVS, KO
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DEO
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https://www.nasdaq.com/articles/consumer-sector-update-11122018-bzun-deo-baba-wmt-mcd-dis-cvs-ko-2018-11-12
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nan
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nan
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Top Consumer Stocks:
WMT: +0.18%
MCD: Flat
DIS: -0.19%
CVS: -0.16%
KO: -0.14%
Consumer stocks were narrowly mixed in Monday's pre-bell trade.
Early movers include:
(-) Baozun ( BZUN ), which received a total of RMB6.55 billion ($940.4 million) in new orders on Singles Day 2018. Baozun ADRs were down by more than 13%.
In other sector news:
(-) Diageo ( DEO ) was more than 1% lower after it unveiled an agreement to sell 19 spirits brands to US-based Sazerac for $550 million.
(-) Alibaba ( BABA ) was slightly lower as it said it generated more than $30 billion in sales during its annual shopping festival, which kicked off at midnight on Sunday Nov. 11 and lasted 24 hours, during which it registered more than one billion deliveries.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
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 other sector news: (-) Diageo ( DEO ) was more than 1% lower after it unveiled an agreement to sell 19 spirits brands to US-based Sazerac for $550 million. Early movers include: (-) Baozun ( BZUN ), which received a total of RMB6.55 billion ($940.4 million) in new orders on Singles Day 2018. (-) Alibaba ( BABA ) was slightly lower as it said it generated more than $30 billion in sales during its annual shopping festival, which kicked off at midnight on Sunday Nov. 11 and lasted 24 hours, during which it registered more than one billion deliveries.
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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. In other sector news: (-) Diageo ( DEO ) was more than 1% lower after it unveiled an agreement to sell 19 spirits brands to US-based Sazerac for $550 million. Top Consumer Stocks:
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In other sector news: (-) Diageo ( DEO ) was more than 1% lower after it unveiled an agreement to sell 19 spirits brands to US-based Sazerac for $550 million. Consumer stocks were narrowly mixed in Monday's pre-bell trade. Early movers include: (-) Baozun ( BZUN ), which received a total of RMB6.55 billion ($940.4 million) in new orders on Singles Day 2018.
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In other sector news: (-) Diageo ( DEO ) was more than 1% lower after it unveiled an agreement to sell 19 spirits brands to US-based Sazerac for $550 million. Top Consumer Stocks: MCD: Flat
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e3ec20a1-5e37-41ad-b045-cd150eb13c35
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727827.0
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2018-11-12 00:00:00 UTC
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Consumer Sector Update for 11/12/2018: GNC,VIAB,DEO,BABA
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DEO
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https://www.nasdaq.com/articles/consumer-sector-update-11122018-gncviabdeobaba-2018-11-12
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nan
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nan
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Top Consumer Stocks
WMT -1.36%
MCD -0.63%
DIS -0.69%
CVS +1.20%
KO +0.63%
Consumer stocks turned broadly lower today, with shares of consumer staples companies in the S&P 500 falling slightly more than 0.2% this afternoon, reversing a small, mid-day gain, while shares of consumer discretionary firms in the S&P 500 were dropping nearly 1.7%.
Among consumer stocks moving on news:
(-) GNC Holdings ( GNC ) fell as much as $4.22 per share on Monday after the health and wellness products retailer reported adjusted Q3 net income that was down compared with year-ago levels and also missed Wall Street forecasts. Excluding one-time items, the company earned $0.02 per share during the September quarter, down from $0.32 per share during the same quarter last year and trailing the Capital IQ consensus expecting $0.09 per share. Net sales declined to $580.2 million from $613.0 million last year but still matched the $580.5 million Street view.
In other sector news:
(+) Viacom ( VIAB ) climbed over 3% at one point on Monday after the television producer said its MTV cable channel has purchased the SnowGlobe Music Festival, one of the country's largest outdoor New Year's Eve music festivals. The annual, three-day event runs between Dec. 29 to Dec. 31 in South Lake Tahoe, Calif., and attracts more than 20,000 fans each day with a mix of musical performances, live action sports and interactive art exhibitions. Terms of the deal were not disclosed.
(-) Diageo ( DEO ) has been trading between 0.5% to just over 1% lower on Monday after unveiling an agreement to sell 19 of it spirits brands to U.S.-based Sazerac for $550 million. According to the British-based beverage company, Diageo is expecting the transaction to reduce its per-share earnings by about 1.9 pence per share during the first full fiscal year after the deal closes in early 2019. It is also expected to generate an one-time gain on disposal of around GBP110 million ($141 million). The brands being sold include Seagram's VO, 83 and Five Star, Myers' and Parrot Bay rums, Yukon Jack and Goldschlager.
(-) Alibaba ( BABA ) has been paring some of its earlier declines, falling less than 2% in recent trading after the Chinese language search engine and ecommerce platform said it generated RMB 213.5 billion, or about $30.8 billion, in sales during its annual Singles' Day shopping festival, which kicked off at midnight on Sunday, Nov. 11 and extending over the next 24 hours. The company logged $10 billion in sales after just one hour and 48 minutes and surpassed the sales figured reached at the 2015 annual shopping event after one hour, 16 minutes and 17 seconds.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
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 ) has been trading between 0.5% to just over 1% lower on Monday after unveiling an agreement to sell 19 of it spirits brands to U.S.-based Sazerac for $550 million. The annual, three-day event runs between Dec. 29 to Dec. 31 in South Lake Tahoe, Calif., and attracts more than 20,000 fans each day with a mix of musical performances, live action sports and interactive art exhibitions. According to the British-based beverage company, Diageo is expecting the transaction to reduce its per-share earnings by about 1.9 pence per share during the first full fiscal year after the deal closes in early 2019.
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(-) Diageo ( DEO ) has been trading between 0.5% to just over 1% lower on Monday after unveiling an agreement to sell 19 of it spirits brands to U.S.-based Sazerac for $550 million. Net sales declined to $580.2 million from $613.0 million last year but still matched the $580.5 million Street view. (-) Alibaba ( BABA ) has been paring some of its earlier declines, falling less than 2% in recent trading after the Chinese language search engine and ecommerce platform said it generated RMB 213.5 billion, or about $30.8 billion, in sales during its annual Singles' Day shopping festival, which kicked off at midnight on Sunday, Nov. 11 and extending over the next 24 hours.
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(-) Diageo ( DEO ) has been trading between 0.5% to just over 1% lower on Monday after unveiling an agreement to sell 19 of it spirits brands to U.S.-based Sazerac for $550 million. Consumer stocks turned broadly lower today, with shares of consumer staples companies in the S&P 500 falling slightly more than 0.2% this afternoon, reversing a small, mid-day gain, while shares of consumer discretionary firms in the S&P 500 were dropping nearly 1.7%. Excluding one-time items, the company earned $0.02 per share during the September quarter, down from $0.32 per share during the same quarter last year and trailing the Capital IQ consensus expecting $0.09 per share.
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(-) Diageo ( DEO ) has been trading between 0.5% to just over 1% lower on Monday after unveiling an agreement to sell 19 of it spirits brands to U.S.-based Sazerac for $550 million. Consumer stocks turned broadly lower today, with shares of consumer staples companies in the S&P 500 falling slightly more than 0.2% this afternoon, reversing a small, mid-day gain, while shares of consumer discretionary firms in the S&P 500 were dropping nearly 1.7%. Excluding one-time items, the company earned $0.02 per share during the September quarter, down from $0.32 per share during the same quarter last year and trailing the Capital IQ consensus expecting $0.09 per share.
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ac532627-63a3-480a-9919-0bcf1fef5a53
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727828.0
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2018-11-12 00:00:00 UTC
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Consumer Sector Update for 11/12/2018: VIAB,DEO,BABA
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DEO
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https://www.nasdaq.com/articles/consumer-sector-update-11122018-viabdeobaba-2018-11-12
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nan
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nan
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Top Consumer Stocks
WMT -1.03%
MCD -0.69%
DIS -0.66%
CVS +1.37%
KO +0.74%
Consumer stocks were lower, with shares of consumer staples companies in the S&P 500 falling 0.1% this afternoon, while shares of consumer discretionary firms in the S&P 500 were dropping more than 1.5%.
Among consumer stocks moving on news:
(+) Viacom ( VIAB ) climbed more than 3% at one point on Monday. The television producer said its MTV cable channel has acquired the SnowGlobe Music Festival, which takes place Dec. 29-31 in South Lake Tahoe, Calif.
In other sector news:
(-) Diageo ( DEO ) slipped 0.5% Monday after disclosing it was selling 19 of it spirits brands to U.S.-based Sazerac for $550 million.
(-) Alibaba ( BABA ) has been paring some of its earlier declines, falling less than 2% in recent trading after the Chinese language search engine and ecommerce platform said it generated RMB 213.5 billion, or about $30.8 billion, in sales during its annual Singles' Day shopping festival, which kicked off at midnight on Sunday, Nov. 11 and extending over the next 24 hours.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
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 other sector news: (-) Diageo ( DEO ) slipped 0.5% Monday after disclosing it was selling 19 of it spirits brands to U.S.-based Sazerac for $550 million. The television producer said its MTV cable channel has acquired the SnowGlobe Music Festival, which takes place Dec. 29-31 in South Lake Tahoe, Calif. (-) Alibaba ( BABA ) has been paring some of its earlier declines, falling less than 2% in recent trading after the Chinese language search engine and ecommerce platform said it generated RMB 213.5 billion, or about $30.8 billion, in sales during its annual Singles' Day shopping festival, which kicked off at midnight on Sunday, Nov. 11 and extending over the next 24 hours.
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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. In other sector news: (-) Diageo ( DEO ) slipped 0.5% Monday after disclosing it was selling 19 of it spirits brands to U.S.-based Sazerac for $550 million. Top Consumer Stocks
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In other sector news: (-) Diageo ( DEO ) slipped 0.5% Monday after disclosing it was selling 19 of it spirits brands to U.S.-based Sazerac for $550 million. Consumer stocks were lower, with shares of consumer staples companies in the S&P 500 falling 0.1% this afternoon, while shares of consumer discretionary firms in the S&P 500 were dropping more than 1.5%. (-) Alibaba ( BABA ) has been paring some of its earlier declines, falling less than 2% in recent trading after the Chinese language search engine and ecommerce platform said it generated RMB 213.5 billion, or about $30.8 billion, in sales during its annual Singles' Day shopping festival, which kicked off at midnight on Sunday, Nov. 11 and extending over the next 24 hours.
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In other sector news: (-) Diageo ( DEO ) slipped 0.5% Monday after disclosing it was selling 19 of it spirits brands to U.S.-based Sazerac for $550 million. Among consumer stocks moving on news: (+) Viacom ( VIAB ) climbed more than 3% at one point on Monday. The television producer said its MTV cable channel has acquired the SnowGlobe Music Festival, which takes place Dec. 29-31 in South Lake Tahoe, Calif.
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ce9b5552-44c7-42a3-b5d8-f839185a73bf
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727829.0
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2018-11-07 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-2018-11-07
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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 above their 200 day moving average of $141.26, changing hands as high as $142.23 per share. Diageo plc shares are currently trading up about 1.2% 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 $131.22 per share, with $151.305 as the 52 week high point - that compares with a last trade of $142.07.
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.
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 above their 200 day moving average of $141.26, changing hands as high as $142.23 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 $131.22 per share, with $151.305 as the 52 week high point - that compares with a last trade of $142.07. 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 Wednesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $141.26, changing hands as high as $142.23 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 $131.22 per share, with $151.305 as the 52 week high point - that compares with a last trade of $142.07. 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 Wednesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $141.26, changing hands as high as $142.23 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 $131.22 per share, with $151.305 as the 52 week high point - that compares with a last trade of $142.07. 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 Wednesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $141.26, changing hands as high as $142.23 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 $131.22 per share, with $151.305 as the 52 week high point - that compares with a last trade of $142.07. 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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4d6690b3-aa57-4190-a2c0-76d139cd2ee2
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727830.0
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2018-10-23 00:00:00 UTC
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Marijuana ETF Enters Bear Territory: What Lies Ahead?
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DEO
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https://www.nasdaq.com/articles/marijuana-etf-enters-bear-territory-what-lies-ahead-2018-10-23
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nan
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nan
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After an astounding surge over the past few months, marijuana ETF took a beating on Monday's trading session. This is especially true as ETFMG Alternative Harvest ETF MJ - the first and only pure ETF targeting the cannabis/marijuana industry - plunged 9.4%, marking its second-worst day ever. The decline came as investors are booking profits after marijuana become fully legal in Canada on Oct 17 (read: Canada Legalizes Marijuana: Stocks & ETF in Focus ).
In fact, marijuana ETF has declined 20% over the past week, indicating that it has entered the bear territory.
MJ in Focus
The fund tracks the Prime Alternative Harvest Index, designed to measure the performance of companies within the cannabis ecosystem, benefiting from global medicinal and recreational cannabis legalization initiatives. The fund holds 39 securities in its basket and Canadian firms make up for 64.9% of the portfolio, while American firms comprise just 18.8%. The ETF has AUM of $790.1 million and trades in a good volume of around 522,000 shares. It charges 75 bps in annual fees.
Stocks Led the Decline
Tilray Inc. TLRY stole the show, plunging more than 15.6% on the day. It occupies the second position with 9.5% share in the fund's portfolio. Shares of Aurora Cannabis, which officially trades in Toronto and is planning an IPO on a U.S. exchange, fell 12.8% at the close of day. Aurora Cannabis takes the top spot accounting for 10.2% of total assets. Canopy Growth CGC and Cronos Group CRON shed 11.2% and 12.3%, respectively. The stocks take the third and fourth positions in MJ, making up for 9.4% and 8.3%, respectively (read: Pot Stocks & ETF: Risks and Rewards ).
With the decline, these stocks have lost more than 20% in the past week, with Tilray and Aura losing more than 25% of its value in the past five days. CRON and CGC are also down at least 27% over the past week.
What Lies Ahead?
Despite the slide, the cannabis ETF is up more than 24% over the past three months and the outlook remains bright. This is because the pot industry has been emerging and is poised for rapid growth given its widespread legality. Though cannabis remains illegal at the federal level in the United States, nine states and the District of Columbia have legalized recreational marijuana while 30 states have legalized medical weed. Canada is now the second country in the world to legalize the drug for both medical and recreational use, trailing Uruguay and the first country among the G-7 nations (read: Top & Flop Zones of Q3 & Their ETFs ).
According to the Arcview Market Research, the U.S. legal cannabis market is projected to reach $11 billion in consumer spending this year and more than $23 billion by 2022. Per an analyst at Cowen, the U.S. legal cannabis industry is expected to reach $75 billion in sales by 2030, surpassing the carbonated soft drink market in 2017.
Growing legalization of recreational or medical marijuana has paved the way for a merger mania, spurring a large number of deal activities in the industry. A number of alcoholic beverage companies are investing or partnering with cannabis producers. Coca-Cola KO is reported to be in talks with Canada's Aurora Cannabis to develop cannabidiol-infused beverages, while Diageo DEO is also in talks with three Canadian pot producers for buying a stake or forming partnership to produce cannabis-infused beverages. Constellation Brands STZ recently invested $3.8 billion to increase its stake in Canopy Growth (read: ETFs & Stocks to Tap Marijuana Boom ).
Given the solid outlook but somewhat bearish near-term sentiments, investors may want to consider staying on the sidelines for the time being. However, risk-tolerant, long-term investors may want to consider this recent slump a buying opportunity, should they have the patience for extreme volatility.
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Diageo plc (DEO): Free Stock Analysis Report
Constellation Brands Inc (STZ): Free Stock Analysis Report
Coca-Cola Company (The) (KO): Free Stock Analysis Report
Tilray, Inc. (TLRY): Free Stock Analysis Report
Canopy Growth Corporation (CGC): Free Stock Analysis Report
Cronos Group Inc. (CRON): Free Stock Analysis Report
ETFMG-ALT HRVST (MJ): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Coca-Cola KO is reported to be in talks with Canada's Aurora Cannabis to develop cannabidiol-infused beverages, while Diageo DEO is also in talks with three Canadian pot producers for buying a stake or forming partnership to produce cannabis-infused beverages. Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Tilray, Inc. (TLRY): Free Stock Analysis Report Canopy Growth Corporation (CGC): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. Per an analyst at Cowen, the U.S. legal cannabis industry is expected to reach $75 billion in sales by 2030, surpassing the carbonated soft drink market in 2017.
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Coca-Cola KO is reported to be in talks with Canada's Aurora Cannabis to develop cannabidiol-infused beverages, while Diageo DEO is also in talks with three Canadian pot producers for buying a stake or forming partnership to produce cannabis-infused beverages. Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Tilray, Inc. (TLRY): Free Stock Analysis Report Canopy Growth Corporation (CGC): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. Constellation Brands STZ recently invested $3.8 billion to increase its stake in Canopy Growth (read: ETFs & Stocks to Tap Marijuana Boom ).
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Tilray, Inc. (TLRY): Free Stock Analysis Report Canopy Growth Corporation (CGC): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. Coca-Cola KO is reported to be in talks with Canada's Aurora Cannabis to develop cannabidiol-infused beverages, while Diageo DEO is also in talks with three Canadian pot producers for buying a stake or forming partnership to produce cannabis-infused beverages. The decline came as investors are booking profits after marijuana become fully legal in Canada on Oct 17 (read: Canada Legalizes Marijuana: Stocks & ETF in Focus ).
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Tilray, Inc. (TLRY): Free Stock Analysis Report Canopy Growth Corporation (CGC): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. Coca-Cola KO is reported to be in talks with Canada's Aurora Cannabis to develop cannabidiol-infused beverages, while Diageo DEO is also in talks with three Canadian pot producers for buying a stake or forming partnership to produce cannabis-infused beverages. The decline came as investors are booking profits after marijuana become fully legal in Canada on Oct 17 (read: Canada Legalizes Marijuana: Stocks & ETF in Focus ).
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8fe0257c-3384-40f3-90e9-b43cd2148279
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727831.0
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2018-10-15 00:00:00 UTC
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Moving Average Crossover Alert: Diageo (DEO)
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DEO
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https://www.nasdaq.com/articles/moving-average-crossover-alert%3A-diageo-deo-2018-10-15
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nan
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nan
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Diageo plc DEO could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for DEO broke out below the 200 Day Simple Moving Average, suggesting short-term bearishness.
This has already started to take place, as the stock has moved lower by 4% in the past four weeks. And with the recent moving average crossover, investors have to think that more unfavorable trading is ahead for DEO stock.
If that wasn't enough, Diageo isn't looking too great from an earnings estimate revision perspective either. It appears as though many analysts have been reducing their earnings expectations for the stock lately, which is usually not a good sign of things to come.
Consider that in the last 30 days, 1 estimate has been reduced, while none has moved higher. Add this into a similar move lower in the consensus estimate, and there is plenty of reason to be bearish here.
That is why we currently have a Zacks Rank #4 (Sell) on this stock and are looking for it to underperform in the weeks ahead. So either avoid this stock or consider jumping ship until the estimates and technical factors turn around for DEO. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Diageo plc (DEO): Free Stock Analysis Report
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.
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 could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front. And with the recent moving average crossover, investors have to think that more unfavorable trading is ahead for DEO stock. Recently, the 50 Day Moving Average for DEO broke out below the 200 Day Simple Moving Average, suggesting short-term bearishness.
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc DEO could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for DEO broke out below the 200 Day Simple Moving Average, suggesting short-term bearishness.
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Diageo plc DEO could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for DEO broke out below the 200 Day Simple Moving Average, suggesting short-term bearishness. Click to get this free report Diageo plc (DEO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Diageo plc DEO could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for DEO broke out below the 200 Day Simple Moving Average, suggesting short-term bearishness. And with the recent moving average crossover, investors have to think that more unfavorable trading is ahead for DEO stock.
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db4fb84a-ae06-49c9-8505-96a06223e795
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727832.0
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2018-10-14 00:00:00 UTC
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More Than a Cheap Buzz, Beer Can Defend Your Stock Portfolio
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DEO
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https://www.nasdaq.com/articles/more-cheap-buzz-beer-can-defend-your-stock-portfolio-2018-10-14
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nan
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nan
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Corporate beer has struggled for years, and rightfully so. The industry has consolidated into just a few massive companies that own large stables of brands, and consumers have responded by giving their support to upstart regional and local craft breweries. Since 2013, the number of U.S. brewers has more than doubled from 2,952 to 6,372 at the end of 2017, according to industry support group Brewers Association.
As the economy has recovered from the financial crisis, consumers have also been ponying up for more expensive alcohol like wine and spirits. That has also put a damper on the biggest beer companies' growth and profitability. However, signs are emerging that a pullback in consumer spending is right around the corner, and more affordable drinking options offered by the biggest beer makers could start getting some love again. Plus, valuations are cheap, and the dividend yields are attractive. That could make corporate beer a great way to play stock market defense .
When bigger is better
When it comes to beer stocks, it isn't hard to put together an exhaustive list -- even though there are more brand choices than ever. That's the result of years of acquisitions and mergers between brewers, leaving just a handful of publicly-traded names to choose from.
Data source: Yahoo! Finance.
The first two listings, Anheuser-Busch InBev and Molson Coors, control about three-quarters of the U.S. beer industry. They also happen to fetch the lowest valuations and have some of the highest dividend payouts. Diageo is better known for its spirits like Captain Morgan, Smirnoff, and Johnnie Walker, although it's included here because it makes Irish stout Guinness .
Not all beer makers are created equal, though, and some of the stocks above could go cyclical in an economic downturn. Craft names like Sam Adams maker Boston Beer Company and craft collective Craft Brew Alliance -- which owns names like Red Hook, Widmer Brothers, and Kona Brewing -- hang their hats on growth strategies rather than on value. Their valuations are thus also substantially higher than the industry average.
The same goes for Constellation Brands, a diversified owner of spirits, wine, and its flagship Corona and Modelo beers with several regional craft makers riding sidecar. The company has also been investing in cannabis-infused beverages through Canopy Growth Corporation . That's all fine and well, but the higher valuations for these companies could prove problematic for investors looking for stability if growth were to suddenly slow. For a defensive play, I like the hated corporate beer stocks.
Let me buy you a Bud, or a Coors
Both A-B InBev and Molson Coors continue to manage the resulting operations from the mega-merger that created them in their current forms. A-B InBev bought out SABMiller in 2016, a deal that was contingent on SABMiller's stake in joint venture MillerCoors being sold back to Molson Coors. Post deal, both companies have started to realize cost savings from their dividing of spoils, and sales have been shored up to weather the craft brew onslaught. Add in a couple of years of stock underperformance, and both now sport attractive valuations and dividend yields.
Growth outside of acquisitions has been modest, but it's there. A-B InBev reported organic growth of 0.7% through the first six months of 2018, which contributed to 4.7% more revenue and 8.3% more earnings than a year ago. As for Molson Coors, revenue over the same time period decreased 2.2%, but higher pricing and lower costs helped earnings increase 30.1%.
For investors who may be concerned that buying these stocks means a bet on subpar mass-produced beer, there's more going on in these mega-breweries than what's immediately apparent. Both have craft brewery subsidiaries that they own. Though A-B InBev is best known for Budweiser, it's also the home of craft brands like Goose Island and Elysian; and Molson Coors owns Blue Moon, Terrapin, and Revolver, among others. In following Constellation Brands' early move, Molson also recently started a joint venture in Canada to develop a cannabis-infused beverage.
Though big beer has been out of favor for some time now, attractive valuations, slow-and-steady diversified business models, and good dividend payments make these stocks worth a look for investors looking to play defense in a choppy market.
10 stocks we like better than Anheuser-Busch InBev NV
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Anheuser-Busch InBev NV wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Nicholas Rossolillo has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Anheuser-Busch InBev NV and Boston Beer. The Motley Fool owns shares of Molson Coors Brewing. 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.
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 industry has consolidated into just a few massive companies that own large stables of brands, and consumers have responded by giving their support to upstart regional and local craft breweries. However, signs are emerging that a pullback in consumer spending is right around the corner, and more affordable drinking options offered by the biggest beer makers could start getting some love again. Though big beer has been out of favor for some time now, attractive valuations, slow-and-steady diversified business models, and good dividend payments make these stocks worth a look for investors looking to play defense in a choppy market.
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Craft names like Sam Adams maker Boston Beer Company and craft collective Craft Brew Alliance -- which owns names like Red Hook, Widmer Brothers, and Kona Brewing -- hang their hats on growth strategies rather than on value. The Motley Fool owns shares of and recommends Anheuser-Busch InBev NV and Boston Beer. The Motley Fool owns shares of Molson Coors Brewing.
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Craft names like Sam Adams maker Boston Beer Company and craft collective Craft Brew Alliance -- which owns names like Red Hook, Widmer Brothers, and Kona Brewing -- hang their hats on growth strategies rather than on value. Though big beer has been out of favor for some time now, attractive valuations, slow-and-steady diversified business models, and good dividend payments make these stocks worth a look for investors looking to play defense in a choppy market. The Motley Fool owns shares of and recommends Anheuser-Busch InBev NV and Boston Beer.
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The first two listings, Anheuser-Busch InBev and Molson Coors, control about three-quarters of the U.S. beer industry. Craft names like Sam Adams maker Boston Beer Company and craft collective Craft Brew Alliance -- which owns names like Red Hook, Widmer Brothers, and Kona Brewing -- hang their hats on growth strategies rather than on value. The company has also been investing in cannabis-infused beverages through Canopy Growth Corporation .
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78ae5551-ceb1-4165-9736-a52607836507
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727833.0
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2018-10-13 00:00:00 UTC
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1 Reason the Marijuana Boom May Not Be a Bubble
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DEO
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https://www.nasdaq.com/articles/1-reason-marijuana-boom-may-not-be-bubble-2018-10-13
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nan
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nan
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It's high times for the marijuana industry.
Cannabis stocks have surged recently, flying higher starting Aug. 15, when Constellation Brands (NYSE: STZ) said it would invest $4 billion in Canadian marijuana grower Canopy GrowthCorporation (NYSE: CGC) . The move signaled that more such tie-ups could come, and as the chart below shows, cannabis stocks have been off to the races since then.
Data by YCharts .
Four of the five biggest marijuana stocks, including Canopy, Aurora Cannabis (NASDAQOTH: ACBFF) , and Aphria (NASDAQOTH: APHQF) , have all more than doubled, while shares of Tilray (NASDAQ: TLRY) have absolutely skyrocketed. Tilray's gains have come in part because of its unusually low float and heavy short interest -- and because the pot stock was the first to list directly on an American exchange when it had its IPO in July.
The sudden gains in Tilray and other cannabis stocks have caused some commentators to deem the marijuana sector a bubble. In fact, two of my colleagues have argued just that here and here . There's no doubt that the sudden rise and euphoria over marijuana stocks is reminiscent of past bubbles, like the one in cryptocurrencies last year. After all, marijuana valuations have become divorced from any trailing fundamentals as the sector is essentially being valued like an early-stage biotech, though that's likely to change once the recreational market in Canada opens on Oct. 17.
Whether or not marijuana stocks turn out to be a bubble depends on a number of factors, including if and when it becomes legal in the U.S., how it is embraced by the medical community, and if the industry consolidates. However, there's one big signal that's just emerged that indicates the marijuana boom may be sustainable. That is the attention and investment of consumer products giants.
A little history
Constellation Brands, which manufactures and markets beer, wine, and spirits, and is best known in the U.S. as the distributor of Corona, became the first major consumer-goods company to make a deal with a marijuana producer when it took a minority stake for about $200 million in Canopy Growth a year ago. At the time, Constellation said the two companies would exchange knowledge and expertise, and the company expressed interest in eventually making cannabis-based beverages.
In a clear signal that Constellation liked what it saw, the Corona-maker took a 38% stake in Canopy in August, investing $4 billion into the pot grower. Constellation CEO Rob Sands explained the move, saying:
In Constellation's recent earnings call, Sands further outlined the company's strategy with Canopy, saying he saw a market of hundreds of billions of dollars evolving over the next decade and that Canopy gave the company a single platform to tackle all global markets and formats.
Constellation isn't the only brewer to target marijuana. On Aug. 1, Molson Coors (NYSE: TAP) announced a joint venture between Molson Coors Canada and Canadian cannabis grower HEXO Corp. (NASDAQOTH: HYYDF) to "pursue opportunities to develop non-alcoholic, cannabis-infused beverages for the Canadian market following legalization." Molson Coors Canada will have a 57.5% share of the joint venture, and CEO Frederic Landtmeters said of the deal:
While there have yet to be any other tie-ups between global consumer product makers and marijuana growers, a number of big-brand companies have discussed teaming up with pot suppliers. In September, Coca-Cola (NYSE: KO) held talks with Aurora Cannabis, according to Bloomberg , and although the company didn't acknowledge any discussion, it did express interest in cannabis-based beverages. In a statement, the soda giant said, "We are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world."
Diageo (NYSE: DEO) , the global alcohol giant that owns Guinness beer and Smirnoff vodka, has held discussions with at least three marijuana growers, though it has yet to make a deal, and Heineken 's (NASDAQOTH: HEINY) Lagunitas brand launched a THC-infused beverage back in June, which is currently available in California dispensaries.
It's not just beverage companies that are getting into the mix. Tobacco giant Altria (NYSE: MO) was said to be in talks to acquire a stake in Aphria, according to Canada's Globe and Mail , and there are good reasons to believe that other tobacco companies could follow suit. Even Walmart 's Canadian division said it was exploring selling cannabis products.
Why it matters
Bubbles tend to be caused, above all, by speculators. The asset in consideration gains momentum as investors are attracted to an opportunity, but eventually, the valuation escapes underlying fundamentals due to speculators pushing up the price under the assumption that a buyer will always come along. For instance, day traders helped fuel the dot-com bubble; home flippers contributed to the housing bubble a decade ago; and the rise of Bitcoin and other cryptocurrencies just last year attracted plenty of speculators who spotted the sudden rise of the new asset.
While there are certainly some speculators and short-term-minded investors trading marijuana stocks, global companies like Constellation Brands, Molson Coors, and Coca-Cola are clearly not among them. They're investing in marijuana companies, or at least considering it, because they see a long-term opportunity in that market, and as more pot growers find a dance partner from big beer, soda, or tobacco, the likelihood of a "bubble" bursting is significantly diminished. Billion-dollar investments from Constellation and others give the industry credibility, access to cash for expansion, marketing and distribution acumen, and other advantages that make their long-term success more likely.
And clearly there's a real opportunity, here. Canadian legalization is expected to generate $5 billion to $7 billion in revenue over the coming year, and the opportunity should only grow from there.
Valuations are certainly steep, but the companies who know best are willing to pay up for them. That should offer some assurance to marijuana investors who may be worried that their shares will eventually go up in smoke.
10 stocks we like better than Constellation Brands
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Constellation Brands wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool owns shares of Molson Coors Brewing. 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.
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) , the global alcohol giant that owns Guinness beer and Smirnoff vodka, has held discussions with at least three marijuana growers, though it has yet to make a deal, and Heineken 's (NASDAQOTH: HEINY) Lagunitas brand launched a THC-infused beverage back in June, which is currently available in California dispensaries. A little history Constellation Brands, which manufactures and markets beer, wine, and spirits, and is best known in the U.S. as the distributor of Corona, became the first major consumer-goods company to make a deal with a marijuana producer when it took a minority stake for about $200 million in Canopy Growth a year ago. Molson Coors Canada will have a 57.5% share of the joint venture, and CEO Frederic Landtmeters said of the deal: While there have yet to be any other tie-ups between global consumer product makers and marijuana growers, a number of big-brand companies have discussed teaming up with pot suppliers.
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Diageo (NYSE: DEO) , the global alcohol giant that owns Guinness beer and Smirnoff vodka, has held discussions with at least three marijuana growers, though it has yet to make a deal, and Heineken 's (NASDAQOTH: HEINY) Lagunitas brand launched a THC-infused beverage back in June, which is currently available in California dispensaries. Four of the five biggest marijuana stocks, including Canopy, Aurora Cannabis (NASDAQOTH: ACBFF) , and Aphria (NASDAQOTH: APHQF) , have all more than doubled, while shares of Tilray (NASDAQ: TLRY) have absolutely skyrocketed. On Aug. 1, Molson Coors (NYSE: TAP) announced a joint venture between Molson Coors Canada and Canadian cannabis grower HEXO Corp. (NASDAQOTH: HYYDF) to "pursue opportunities to develop non-alcoholic, cannabis-infused beverages for the Canadian market following legalization."
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Diageo (NYSE: DEO) , the global alcohol giant that owns Guinness beer and Smirnoff vodka, has held discussions with at least three marijuana growers, though it has yet to make a deal, and Heineken 's (NASDAQOTH: HEINY) Lagunitas brand launched a THC-infused beverage back in June, which is currently available in California dispensaries. Cannabis stocks have surged recently, flying higher starting Aug. 15, when Constellation Brands (NYSE: STZ) said it would invest $4 billion in Canadian marijuana grower Canopy GrowthCorporation (NYSE: CGC) . Constellation CEO Rob Sands explained the move, saying: In Constellation's recent earnings call, Sands further outlined the company's strategy with Canopy, saying he saw a market of hundreds of billions of dollars evolving over the next decade and that Canopy gave the company a single platform to tackle all global markets and formats.
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Diageo (NYSE: DEO) , the global alcohol giant that owns Guinness beer and Smirnoff vodka, has held discussions with at least three marijuana growers, though it has yet to make a deal, and Heineken 's (NASDAQOTH: HEINY) Lagunitas brand launched a THC-infused beverage back in June, which is currently available in California dispensaries. The sudden gains in Tilray and other cannabis stocks have caused some commentators to deem the marijuana sector a bubble. In a clear signal that Constellation liked what it saw, the Corona-maker took a 38% stake in Canopy in August, investing $4 billion into the pot grower.
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6373d606-cbc2-4186-9943-b2339ac2bd47
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727834.0
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2018-10-11 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-now-oversold-deo-2018-10-11
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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 Thursday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $133.01 per share. By comparison, the current RSI reading of the S&P 500 ETF ( SPY ) is 17.5. A bullish investor could look at DEO's 28.3 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 $131.22 per share, with $151.305 as the 52 week high point - that compares with a last trad
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In trading on Thursday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $133.01 per share. A bullish investor could look at DEO's 28.3 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 $131.22 per share, with $151.305 as the 52 week high point - that compares with a last trad
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A bullish investor could look at DEO's 28.3 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 $131.22 per share, with $151.305 as the 52 week high point - that compares with a last trad In trading on Thursday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $133.01 per share.
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In trading on Thursday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $133.01 per share. A bullish investor could look at DEO's 28.3 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 $131.22 per share, with $151.305 as the 52 week high point - that compares with a last trad
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In trading on Thursday, shares of Diageo plc (Symbol: DEO) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $133.01 per share. A bullish investor could look at DEO's 28.3 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 $131.22 per share, with $151.305 as the 52 week high point - that compares with a last trad
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ecb6a0ec-0864-4924-89eb-4f0e32f9c2e2
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727835.0
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2018-09-26 00:00:00 UTC
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Diageo (DEO) Shares Cross Above 200 DMA
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DEO
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https://www.nasdaq.com/articles/diageo-deo-shares-cross-above-200-dma-2018-09-26
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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 above their 200 day moving average of $142.03, changing hands as high as $142.37 per share. Diageo plc shares are currently trading up about 0.9% 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 $129.99 per share, with $151.305 as the 52 week high point - that compares with a last trade of $142.28.
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.
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 above their 200 day moving average of $142.03, changing hands as high as $142.37 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 $129.99 per share, with $151.305 as the 52 week high point - that compares with a last trade of $142.28. 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 Wednesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $142.03, changing hands as high as $142.37 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 $129.99 per share, with $151.305 as the 52 week high point - that compares with a last trade of $142.28. 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 Wednesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $142.03, changing hands as high as $142.37 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 $129.99 per share, with $151.305 as the 52 week high point - that compares with a last trade of $142.28. 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 Wednesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $142.03, changing hands as high as $142.37 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 $129.99 per share, with $151.305 as the 52 week high point - that compares with a last trade of $142.28. 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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3469b7f1-5c18-4fe2-9e74-2c637b4aee40
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727836.0
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2018-09-22 00:00:00 UTC
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Don’t Get Too Excited About Coca-Cola’s “Cannabis Drink” Buzz
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DEO
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https://www.nasdaq.com/articles/dont-get-too-excited-about-coca-colas-cannabis-drink-buzz-2018-09-22
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nan
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nan
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Coca-Cola (NYSE: KO) could be interested in developing drinks infused with CBD, the non-psychoactive ingredient in marijuana that treats pain but doesn't get users high. The beverage maker is in talks with Canadian marijuana producer Aurora Cannabis (NASDAQOTH: ACBFF) to develop the drink, according to Bloomberg.
Shares of Aurora surged after the news, but Coca-Cola shares barely budged. That's because the development of a single new drink (even a cannabis-infused one) probably wouldn't move the needle for Coca-Cola, though it could significantly juice up Aurora's revenues.
In a statement to Bloomberg, Coca-Cola spokesman Kent Landers stated that the cannabis market was "evolving quickly" but that "no decisions" had been made about new products. Aurora stated that it occasionally engages in "exploratory discussions" with other companies, but hadn't established any beverage partnerships yet.
Therefore, it seems like that many headlines about Coca-Cola selling marijuana-infused drinks are premature and misleading. Let's take a look at why Coca-Cola and other companies would consider selling cannabis-based products, and why investors shouldn't get too excited about those developments yet.
Pivoting away from slow-growth markets
Coca-Cola's biggest long-term headwind is the decline of soda consumption rates across the world. Last year, Beverage Digest reported that soda consumption in the U.S. fell to its lowest point in more than three decades .
The same pattern can be seen in many countries, where health-conscious consumers are shunning sodas and other sugary drinks. That downturn was exacerbated by the introduction of soda taxes in a growing number of U.S. cities and overseas markets.
Coca-Cola's main strategy has been to diversify its beverage portfolio with bottled water, teas, fruit juices, energy drinks, and other beverages. That's why it bought a large stake in energy-drink maker Monster Beverage , agreed to acquire U.K. coffee chain Costa Coffee, and is reportedly mulling the purchase of GlaxoSmithKline 's malted milk brand, Horlicks. Coca-Cola also introduced new low-sugar and sugar-free versions of its flagship sodas.
It seems like a CBD-infused drink would complement those efforts and offset Coca-Cola's decelerating soda sales. However, it's unclear how legal these drinks would be, even after marijuana's psychoactive ingredient is removed.
Recreational marijuana use has only been fully legalized in three countries -- Canada, Georgia, and Uruguay -- along with nine U.S. states and Washington, DC. The laws in other markets are murkier and it's not legal at the federal level in the United States. So it's unclear how all the laws will apply to CBD-infused beverages. Until now, CBD-infused drinks were sold by smaller companies like Sprig and Dirty Lemon instead of major beverage makers.
Coca-Cola's not alone...
Coca-Cola's interest in marijuana might seem surprising, but plenty of other aging consumer staples companies facing decelerating sales are looking in the same direction.
Molson Coors Brewing (NYSE: TAP) recently agreed to launch a joint venture with Canadian cannabis company Hydropothecary Corp. to produce cannabis drinks in Canada. Diageo (NYSE: DEO) is also reportedly in talks with at least three Canadian cannabis companies to produce marijuana-based products. Both alcohol companies face slower sales of their traditional beer brands.
Altria (NYSE: MO) , the biggest tobacco maker in America, also recently stated that it was "exploring options" and "evaluating market opportunities" in cannabis. That comment sparked wild speculation that Altria could mass produce marijuana cigarettes to offset its slowing sales of traditional cigarettes.
Meanwhile, a recent study from Yahoo News and Marist College last year found that 22% of Americans are "current" marijuana users, defined as users who smoked marijuana at least once or twice over the past year -- compared to the U.S. adult smoking rate of 16%.
But mind the backlash
The cannabis market sounds like an interesting opportunity for Coca-Cola and other companies, but it could also be a PR and regulatory minefield. First, Coca-Cola's family-friendly image could be tarnished by headlines proclaiming that it sells marijuana sodas.
Meanwhile, the Trump administration is taking a tougher stance on Canada's legalization of marijuana. A top Trump border official recently stated that Canadians who work in or invest in the country's marijuana industry could face lifetime travel bans to the US. Many Canadian companies are also being directly targeted by the Trump administration's tariffs -- and those tariffs could spread to cannabis companies and their American partners.
That's why many companies are only taking baby steps into the market. And baby steps never move the needle for massive companies like Coca-Cola, so investors should focus on more meaningful developments (like its takeover of Costa) instead.
10 stocks we like better than Coca-Cola
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Coca-Cola wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Leo Sun owns shares of GlaxoSmithKline. The Motley Fool owns shares of and recommends Monster Beverage. The Motley Fool owns shares of Molson Coors Brewing. 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.
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) is also reportedly in talks with at least three Canadian cannabis companies to produce marijuana-based products. Coca-Cola (NYSE: KO) could be interested in developing drinks infused with CBD, the non-psychoactive ingredient in marijuana that treats pain but doesn't get users high. Altria (NYSE: MO) , the biggest tobacco maker in America, also recently stated that it was "exploring options" and "evaluating market opportunities" in cannabis.
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Diageo (NYSE: DEO) is also reportedly in talks with at least three Canadian cannabis companies to produce marijuana-based products. The beverage maker is in talks with Canadian marijuana producer Aurora Cannabis (NASDAQOTH: ACBFF) to develop the drink, according to Bloomberg. The Motley Fool owns shares of and recommends Monster Beverage.
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Diageo (NYSE: DEO) is also reportedly in talks with at least three Canadian cannabis companies to produce marijuana-based products. The beverage maker is in talks with Canadian marijuana producer Aurora Cannabis (NASDAQOTH: ACBFF) to develop the drink, according to Bloomberg. Coca-Cola's not alone... Coca-Cola's interest in marijuana might seem surprising, but plenty of other aging consumer staples companies facing decelerating sales are looking in the same direction.
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Diageo (NYSE: DEO) is also reportedly in talks with at least three Canadian cannabis companies to produce marijuana-based products. Let's take a look at why Coca-Cola and other companies would consider selling cannabis-based products, and why investors shouldn't get too excited about those developments yet. Coca-Cola's not alone... Coca-Cola's interest in marijuana might seem surprising, but plenty of other aging consumer staples companies facing decelerating sales are looking in the same direction.
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0ac65951-d5b5-4946-a6aa-a990366a7153
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727837.0
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2018-09-20 00:00:00 UTC
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3 Beverage Giants That Should Be Looking for a Cannabis Partner
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DEO
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https://www.nasdaq.com/articles/3-beverage-giants-should-be-looking-cannabis-partner-2018-09-20
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nan
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nan
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Whether you realize it or not, marijuana is big business. In our neighbor to the north, recreational weed is set to be legalized in 27 days . When the curtain is finally lifted, demand is expected to overwhelm the market, and in the process put loads of cash into the pockets of businesses up and down the cannabis supply chain.
But this growth isn't lost on companies outside the cannabis industry. The past two months have featured no shortage of deals in the marijuana arena between brand-name companies and the pot industry.
Dealmaking is all the buzz in the cannabis space
For example, at the beginning of August, Molson Coors Brewing Co.announced a joint venture with Quebec-based HEXO Corp. (previously Hydropothecary) to develop cannabis-infused beverages. Although infused beverages won't be legal come Oct. 17, new forms of consumption are expected to be discussed and approved by Parliament next year. This should allow Molson and HEXO a head start on much of their competition.
An even bigger statement was made by Modelo and Corona beer maker Constellation Brands (NYSE: STZ) when it announced its intent to take a $3.8 billion equity stake in Canopy Growth Corp. on Aug. 15, 2018. This actually marks the third such investment for Constellation into Canopy Growth, with the company acquiring a 9.9% stake in October 2017 for what was only $190 million at the time, and purchasing a third of a 600 million Canadian dollar convertible note offering in June. If Constellation Brands were to exercise the 139.7 million warrants that come with its latest investment, as well as convert its notes to shares of common stock, it could build its stake in Canopy Growth to north of 50%.
The big question is: Which brand-name beverage maker is next?
While we do have some clues, the following three brand-name drink makers appear the likeliest to step up and find a cannabis partner.
Diageo
One well-known beverage company that could follow in Constellation's and Molson's footsteps is U.K.-based Diageo (NYSE: DEO) , which is known for brands such as Captain Morgan, Smirnoff, Johnnie Walker, and Guinness, among others. According to preliminary annual results reported by the company in July, net sales grew by a microscopic 0.9% in its latest fiscal year. In short, the company needs a spark that cannabis-infused beverage may be able to provide.
In late August, rumors began to swirl that Diageo was in discussion with three leading marijuana companies, although no specific company names were divulged, nor was there any consensus from the unnamed sources as to when a deal might get done. Those rumors have since quelled a bit.
There are, however, three relatively large cannabis producers that could be ripe for a partnership, and may be among the names Diageo was considering:
Aphria: Aphria is expected to slide in as the third-largest producer by peak production at 255,000 kilograms. With a diverse product line, it'd make for a solid choice.
Aurora Cannabis ( NASDAQOTH: ACBFF ) : Aurora Cannabis is expected to be the largest producer when at full capacity (570,000 kilograms). Its sheer scale makes it a target for beverage companies.
Tilray: The newest hot pot stock, Tilray should be capable of more than 100,000 kilograms of annual production once it further expands capacity.
With sales stagnant and cost-cutting only driving profits so far, Diageo should be compelled to find a cannabis partner.
Coca-Cola
OK, so there's little guesswork needed with this one. Earlier this week, multiple news outlets reported that beverage giant Coca-Cola (NYSE: KO) is in serious talks with Aurora Cannabis to partner and produce cannabidiol (CBD)-infused beverages. CBD is the non-psychoactive component of the cannabis plant that's perhaps best known for its medical benefits. Though there's no guarantee a deal is reached, it clearly shows Coca-Cola's interest in finding a cannabis partner.
For Coke, pushing into beverages that would target medical marijuana users is a smart move for two reasons . One, though its top-line sales are rising, the only region that delivered negative organic growth during the second quarter was North America. This could be a way of genuinely moving the needle back in the right direction within the next couple of years.
Secondly, alternative cannabis products generally have a considerably higher margin than dried cannabis, which is prone to commoditization. The branding power of Coca-Cola combined with the niche aspect of the medical marijuana industry should allow such a product to be priced with a hefty premium and healthy margins.
As for Aurora Cannabis, its leading production capacity makes it a logical target for Coca-Cola. Aurora is primarily focused on the medical market, meaning a push into infused beverages would advance its existing game plan.
Keurig Dr. Pepper
Although absolutely no rumors have swirled around Keurig Dr. Pepper (NYSE: KDP) , which was formed earlier this year from the merger of Dr. Pepper Snapple Group and Keurig Green Mountain, the maker of single-serve K-cups, I believe it could be the perfect beverage maker to turn to the green rush.
The merger of these two companies is expected to result in cost synergies and improve branding power (and thus pricing power) by giving it more shelf-space clout. But Keurig Dr. Pepper's second-quarter operating results weren't all that impressive. Keurig's sales were essentially flat, while Dr. Pepper Snapple Group saw operating income fall 3.5% as a result of ongoing inflationary pressures. Like Diageo and Coca-Cola, its business needs a spark.
What would make a pairing between Keurig Dr. Pepper and a cannabis company so unique is the company's lead position in the single-serving K-cup space. Even with a number of smaller single-serve, cannabis-focused pod companies popping up in recent years, Keurig would be able to use its deeper pockets and brand name to essentially wipe them off the map.
Secondarily, Keurig Dr. Pepper could also turn to pairing CBD with its well-known sparkling beverage lineup of 7UP, A&W Root Beer, and, of course, Dr. Pepper.
It's certainly not the first name that jumps off the list of big-name beverage companies looking for a cannabis partner, but it may wind up being the most logical.
10 stocks we like better than Keurig Dr Pepper
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 quadrupled the market.*
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*Stock Advisor returns as of August 6, 2018
Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of Molson Coors Brewing. 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.
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 One well-known beverage company that could follow in Constellation's and Molson's footsteps is U.K.-based Diageo (NYSE: DEO) , which is known for brands such as Captain Morgan, Smirnoff, Johnnie Walker, and Guinness, among others. Dealmaking is all the buzz in the cannabis space For example, at the beginning of August, Molson Coors Brewing Co.announced a joint venture with Quebec-based HEXO Corp. (previously Hydropothecary) to develop cannabis-infused beverages. An even bigger statement was made by Modelo and Corona beer maker Constellation Brands (NYSE: STZ) when it announced its intent to take a $3.8 billion equity stake in Canopy Growth Corp. on Aug. 15, 2018.
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Diageo One well-known beverage company that could follow in Constellation's and Molson's footsteps is U.K.-based Diageo (NYSE: DEO) , which is known for brands such as Captain Morgan, Smirnoff, Johnnie Walker, and Guinness, among others. An even bigger statement was made by Modelo and Corona beer maker Constellation Brands (NYSE: STZ) when it announced its intent to take a $3.8 billion equity stake in Canopy Growth Corp. on Aug. 15, 2018. As for Aurora Cannabis, its leading production capacity makes it a logical target for Coca-Cola.
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Diageo One well-known beverage company that could follow in Constellation's and Molson's footsteps is U.K.-based Diageo (NYSE: DEO) , which is known for brands such as Captain Morgan, Smirnoff, Johnnie Walker, and Guinness, among others. Earlier this week, multiple news outlets reported that beverage giant Coca-Cola (NYSE: KO) is in serious talks with Aurora Cannabis to partner and produce cannabidiol (CBD)-infused beverages. Keurig Dr. Pepper Although absolutely no rumors have swirled around Keurig Dr. Pepper (NYSE: KDP) , which was formed earlier this year from the merger of Dr. Pepper Snapple Group and Keurig Green Mountain, the maker of single-serve K-cups, I believe it could be the perfect beverage maker to turn to the green rush.
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Diageo One well-known beverage company that could follow in Constellation's and Molson's footsteps is U.K.-based Diageo (NYSE: DEO) , which is known for brands such as Captain Morgan, Smirnoff, Johnnie Walker, and Guinness, among others. As for Aurora Cannabis, its leading production capacity makes it a logical target for Coca-Cola. Like Diageo and Coca-Cola, its business needs a spark.
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ebe657a9-bb16-4c50-9eca-eeb5b5a52a46
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727838.0
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2018-09-18 00:00:00 UTC
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Is Now a Good Time to Buy Tilray Inc.?
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DEO
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https://www.nasdaq.com/articles/now-good-time-buy-tilray-inc-2018-09-18
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nan
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nan
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Momentum is building for marijuana stocks ahead of the opening of Canada's recreational cannabis market in October, and Tilray Inc. (NASDAQ: TLRY) is among the industry's biggest recent winners. Tilray's shares have almost doubled this month because of growing optimism that it will be the next marijuana stock to strike a deal with a major consumer products company. Can this stock continue to climb?
Tilray's business
Tilray has four facilities with a combined 912,000 square feet of space that can be used to grow cannabis, extract chemical cannabinoids found in marijuana, and package cannabinoids for sale as medicine and as consumer products.
Unlike some marijuana growers, Tilray is less interested in profiting from pot itself and far more interested in making its name selling nutraceuticals (foods with medical benefits) to help patients with unmet medical needs.
It's trying to prove the value of marijuana as medicine (and drive demand for its marijuana products, including edibles). Tilray is studying cannabinoids' effectiveness in patients with severe epilepsy in Canada, and it's evaluating cannabinoids as a treatment for chemotherapy-induced nausea and vomiting in Australia.
It also supplies cannabis to pharmaceutical distributors in 12 countries, and it's working with Novartis ' (NYSE: NVS) generic drug arm, Sandoz Canada, to create medicinal marijuana products that can be sold in pharmacies and used in hospitals.
Why Tilray's shares are skyrocketing
Tilray began trading on the Nasdaq exchange in July, but its share price really began to take off in mid-August when CEO Brendan Kennedy said that top institutional investors were among those participating in its IPO, and the company announced a deal to supply marijuana products, including Marley Naturals (the official brand of legendary musician Bob Marley), to recreational marijuana customers in Ontario.
The Ontario distribution deal expands the reach of its consumer products beyond Quebec and Manitoba, where Tilray previously announced distribution agreements, and the institutional ownership helps validate marijuana's market potential.
Investor optimism has accelerated even more in September after the company reported that sales surged 95% year over year to $9.7 million in the second quarter and rumors began that beverage companies were approaching marijuana producers following Constellation Brands ' (NYSE: STZ) investment in Canopy Growth.
Tilray's annualized sales of $38.8 million exiting the second quarter is a big improvement over its sales of $20.5 million in 2017 and $12.6 million in 2016. And the potential to cozy up to a deep-pocketed partner could add billions of dollars in sales, plus crucial marketing and distribution experience. A deal with a partner hasn't been announced, but Bloomberg's report on Sept. 17 that Coca-Cola (NYSE: KO) is discussing a deal with Tilray competitor Aurora Cannabis (NASDAQOTH: ACBFF) further fueled investor hopes that companies are also knocking on Tilray's door.
Furthermore, Tilray shares got a boost yesterday when the U.S. Drug Enforcement Agency (DEA) cleared it to export capsules containing the cannabinoids THC and cannabidiol to the University of California San Diego Center for Medicinal Cannabis Research (CMCR) for use in a study of patients with essential tremor, a movement disorder common in people over age 65.
TLRY data by YCharts.
Is it a buy?
Tilray is in a very good position to capture sales when Canada's recreational market opens. That's great news, because Deloitte estimates Canada's adult recreational market could exceed 1.8 billion in Canadian dollars ($1.38 billion) in 2019.
It's also in a good position to benefit from the global rise in medical marijuana. Its existing pharmaceutical distribution network could help it in important markets, such as Germany, where medical marijuana was approved last year. Tilray's partnership with Noweda, one of Germany's biggest pharmaceutical distributors, might allow it to win a meaningful share of Germany's medical marijuana market. And since Germany's market is much bigger than Canada's, Germany could contribute meaningfully to Tilray's revenue in the future.
Overall, the global marijuana business, including the black market, is worth $150 billion, according to the United Nations. That alone makes Tilray an intriguing stock. But there are reasons to approach the company's shares cautiously.
Because of its skyrocketing share price, its $10.2 billion market cap is 263 times greater than its annualized second-quarter revenue. Also, 93% of Tilray's voting power is held by Privateer Holdings, the venture fund that created Tilray, and a lockup period that prohibits insiders from selling Tilray shares expires in January 2019. If insiders sell a lot of shares once the lockup expires, then it could pressure shares lower. It's also possible that Privateer Holdings' goals won't always align with those of individual investors.
Nevertheless, I think that if shares drop due to the lockup expiration or because of worries over valuation, then aggressive investors should consider buying some shares. The worldwide marijuana market opportunity is massive, which could eventually resolve any concerns over its valuation.
10 stocks we like better than Tilray, Inc.
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Tilray, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies 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.
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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Momentum is building for marijuana stocks ahead of the opening of Canada's recreational cannabis market in October, and Tilray Inc. (NASDAQ: TLRY) is among the industry's biggest recent winners. It also supplies cannabis to pharmaceutical distributors in 12 countries, and it's working with Novartis ' (NYSE: NVS) generic drug arm, Sandoz Canada, to create medicinal marijuana products that can be sold in pharmacies and used in hospitals. Furthermore, Tilray shares got a boost yesterday when the U.S. Drug Enforcement Agency (DEA) cleared it to export capsules containing the cannabinoids THC and cannabidiol to the University of California San Diego Center for Medicinal Cannabis Research (CMCR) for use in a study of patients with essential tremor, a movement disorder common in people over age 65.
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Momentum is building for marijuana stocks ahead of the opening of Canada's recreational cannabis market in October, and Tilray Inc. (NASDAQ: TLRY) is among the industry's biggest recent winners. Why Tilray's shares are skyrocketing Tilray began trading on the Nasdaq exchange in July, but its share price really began to take off in mid-August when CEO Brendan Kennedy said that top institutional investors were among those participating in its IPO, and the company announced a deal to supply marijuana products, including Marley Naturals (the official brand of legendary musician Bob Marley), to recreational marijuana customers in Ontario. Investor optimism has accelerated even more in September after the company reported that sales surged 95% year over year to $9.7 million in the second quarter and rumors began that beverage companies were approaching marijuana producers following Constellation Brands ' (NYSE: STZ) investment in Canopy Growth.
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Momentum is building for marijuana stocks ahead of the opening of Canada's recreational cannabis market in October, and Tilray Inc. (NASDAQ: TLRY) is among the industry's biggest recent winners. Why Tilray's shares are skyrocketing Tilray began trading on the Nasdaq exchange in July, but its share price really began to take off in mid-August when CEO Brendan Kennedy said that top institutional investors were among those participating in its IPO, and the company announced a deal to supply marijuana products, including Marley Naturals (the official brand of legendary musician Bob Marley), to recreational marijuana customers in Ontario. Also, 93% of Tilray's voting power is held by Privateer Holdings, the venture fund that created Tilray, and a lockup period that prohibits insiders from selling Tilray shares expires in January 2019.
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Nevertheless, I think that if shares drop due to the lockup expiration or because of worries over valuation, then aggressive investors should consider buying some shares. 10 stocks we like better than Tilray, Inc. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Tilray, Inc. wasn't one of them!
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1ec1fee1-6396-48ad-94fd-42bb88782cc0
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727839.0
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2018-09-15 00:00:00 UTC
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Is Diageo a Buy?
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DEO
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https://www.nasdaq.com/articles/diageo-buy-2018-09-15
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nan
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nan
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Buoyed by rising sales and stronger earnings, global distiller Diageo plc (NYSE: DEO) announced in July that it would be buying back $2.6 billion worth of stock. Coming as it does after a $1.5 billion stock repurchase in the current fiscal year, the new authorization amounts to a big return of capital to shareholders.
But investors seem less than thrilled with both the company's earnings report (covering the fiscal 2018 year ending on June 30) and the buyback plan, as Diageo's stock has fallen 8% since the announcement, and remains off 5% year to date. So let's see if the distiller's new lower price point is a reason to buy.
It's the world's leading spirits distributor
Regardless of category, Diageo owns some of the most distinctive brands, with top-shelf billing in markets around the globe. Johnnie Walker is the No. 1 Scotch whisky in the world, Smirnoff is the world's top-selling premium vodka, Captain Morgan is the second-best-selling rum worldwide, and Baileys is the world's leading liqueur.
But Diageo makes most of its money selling Scotch whisky, primarily under the Johnnie Walker label, which represents 25% of its near $16 billion in annual net sales. And while Scotch enjoyed a 2% gain in organic net sales in fiscal 2018, it was tequila and gin that helped fuel growth, rising 35% and 17%, respectively, though starting from much smaller bases. Together, the two only account for around 7% of total sales. No other spirits category saw double-digit increases.
It wants to buy the good stuff
The key to Diageo's success has more to do with the premium trend fully underway in alcohol than the kind of spirits being sold. When it comes to variety, the distiller wants to ensure it only has top-shelf offerings.
Diageo was recently said to be interested in dumping about $1 billion worth of brands from its portfolio because they didn't fit into the premium and super-premium categories it wants to focus on. Among these brands are Seagram's VO, Myers's rum, Goldschlager, and Popov vodka, all of which can be considered value brands. Data from Nielsen shows high-end spirits now account for 55% of total industry spirits volume and 62% of dollar sales, with ultra-premium spirits growing the fastest.
And over the past few years, Diageo has acquired some of the top spirits, such as Ciroc vodka, DeLeon tequila, and, more recently, actor George Clooney's Casamigos tequila, which it paid $1 billion for.
It dominates the most important markets
What many might find surprising is that India is the world's largest whisky market at roughly 1.5 billion liters annually, or about half the world's consumption. Through its ownership of United Spirits, Diageo has a 40% share of the Indian market by volume. A large, youthful population and a growing middle class give Diageo the potential to tap into the premium trend of foreign brands in this important market.
In the U.S., the world's biggest spirits market overall, Diageo delivered net sales growth of 4% in fiscal 2018, enjoying growth across all categories except vodka. The white spirit has been troubled for several years, but the browns continue their inexorable rise.
The Distilled Spirits Council says revenue for high-end premium bourbon and Tennessee whiskey was up 46% last year in the U.S., while super-premium revenue rose 148% for distillers.
Its valuation is compelling
At 25 times trailing earnings and 18 times next year's estimates, Diageo trades at a discount to rival Brown-Forman , which owns the Jack Daniel's brand, though it does trade above Constellation Brands , which owns Svedka vodka and Black Velvet Canadian whisky. But Constellation has delved deeply into the beer market, and much of its growth has been predicated on its acquisition of the Corona brand.
It's probable Diageo will also follow Constellation into what may become the newest trend for distillers: cannabis-infused beverages. Constellation has invested heavily in the space, and others are maneuvering for position, too, so it likely won't be long before Diageo stakes its claim.
Diageo remains the leading distiller, with opportunities in some of the world's biggest markets to capitalize on the premium-brand trend. Diageo also pays a dividend that yields a healthy 3% annually, so the beverage giant would be worth the price even if it was trading at a premium to other spirits companies. But as it trades at a discount, Diageo is definitely a buy.
10 stocks we like better than Diageo
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Diageo wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Rich Duprey 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.
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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Buoyed by rising sales and stronger earnings, global distiller Diageo plc (NYSE: DEO) announced in July that it would be buying back $2.6 billion worth of stock. And while Scotch enjoyed a 2% gain in organic net sales in fiscal 2018, it was tequila and gin that helped fuel growth, rising 35% and 17%, respectively, though starting from much smaller bases. A large, youthful population and a growing middle class give Diageo the potential to tap into the premium trend of foreign brands in this important market.
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Buoyed by rising sales and stronger earnings, global distiller Diageo plc (NYSE: DEO) announced in July that it would be buying back $2.6 billion worth of stock. It's the world's leading spirits distributor Regardless of category, Diageo owns some of the most distinctive brands, with top-shelf billing in markets around the globe. Data from Nielsen shows high-end spirits now account for 55% of total industry spirits volume and 62% of dollar sales, with ultra-premium spirits growing the fastest.
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Buoyed by rising sales and stronger earnings, global distiller Diageo plc (NYSE: DEO) announced in July that it would be buying back $2.6 billion worth of stock. It's the world's leading spirits distributor Regardless of category, Diageo owns some of the most distinctive brands, with top-shelf billing in markets around the globe. In the U.S., the world's biggest spirits market overall, Diageo delivered net sales growth of 4% in fiscal 2018, enjoying growth across all categories except vodka.
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Buoyed by rising sales and stronger earnings, global distiller Diageo plc (NYSE: DEO) announced in July that it would be buying back $2.6 billion worth of stock. It's the world's leading spirits distributor Regardless of category, Diageo owns some of the most distinctive brands, with top-shelf billing in markets around the globe. In the U.S., the world's biggest spirits market overall, Diageo delivered net sales growth of 4% in fiscal 2018, enjoying growth across all categories except vodka.
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9080fbb9-778d-407b-af00-351ec6a1f24b
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727840.0
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2018-09-14 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Diageo, Constellation Brands, Cara, Cronos and GW
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DEO
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-diageo-constellation-brands-cara-cronos-and-gw-2018-09
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nan
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nan
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For Immediate Release
Chicago, IL -September 14, 2018 - 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: DiageoDEO , Constellation BrandsSTZ , Cara Therapeutics Inc.CARA , Cronos Group Inc.CRON and GW PharmaceuticalsGWPH .
Here are highlights from Thursday's Analyst Blog:
Stocks to Tap the Marijuana Boom
Last year, bitcoin made investors go on a mad rush and this year, it's marijuana stocks' turn. This is especially true against the backdrop of more legalization of the plant for recreational use.
In the United States, nine states and Washington, D.C., have currently legalized recreational marijuana, while 29 states have legalized medical weed. Canadians will also be able to buy and consume cannabis legally, effective Oct 17. The move made Canada the second country in the world to legalize the drug for both medical and recreational use, trailing Uruguay, and the first country among G-7 nations (read: Canada Legalizes Marijuana: Two ETFs to Tap the Boom ).
Growing legalization of recreational or medical marijuana has paved the way for a merger mania, spurring a large number of deal activities in the industry. The most notable among this is the beer and spirits giant Diageo, which is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages. An international producer and beer marketer Constellation Brands invested $3.8 billion last month to increase its stake in Canopy Growth, the biggest marijuana industry deal so far. (read: Pot Stocks Are on a High: Play These Cannabis ETFs ).
According to the Arcview Market Research, the U.S. legal cannabis market is projected to reach $11 billion in consumer spending this year and more than $23 billion by 2022. Per an analyst at Cowen, the U.S. legal cannabis industry is expected to reach $75 billion in sales by 2030, surpassing the carbonated soft drink market in 2017.
How to Play?
Given this, investors seeking to ride the ongoing green rush may want to tap the space. For them, we have highlighted a few stocks that could be compelling picks.
Cara Therapeutics Inc.
This biopharmaceutical company is focused on developing and commercializing new chemical entities designed to alleviate pain. It has a market cap of $814.88 million and its earnings are expected to grow 1.39% next year. The stock has soared 70.3% in the year-to-date time frame and has a Zacks Rank #3 (Hold).
Cronos Group Inc.
This company is engaged in the investment in firms which are licensed to produce and sell medical marijuana. With a market cap of $2.12 billion, the stock has an estimated earnings growth of 750% for the next year. It has surged 22.9% so far this year and carries a Zacks Rank #3 (read: 5 Best Stocks of the Top ETF of August ).
GW Pharmaceuticals
This is a biopharmaceutical company focused on discovering, developing and commercializing therapeutics from its proprietary cannabinoid product platform in a broad range of disease areas. The company has an estimated earnings growth rate of 22.17% for the next fiscal (ending on September 2019). It has a market cap of $3.88 billion and has gained 6.7% so far this year. GW Pharmaceuticals currently has a Zacks Rank #3.
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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Diageo plc (DEO): Free Stock Analysis Report
GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report
Cara Therapeutics, Inc. (CARA): Free Stock Analysis Report
Cronos Group Inc. (CRON): 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.
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: DiageoDEO , Constellation BrandsSTZ , Cara Therapeutics Inc.CARA , Cronos Group Inc.CRON and GW PharmaceuticalsGWPH . Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Cara Therapeutics, Inc. (CARA): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report To read this article on Zacks.com click here. An international producer and beer marketer Constellation Brands invested $3.8 billion last month to increase its stake in Canopy Growth, the biggest marijuana industry deal so far.
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Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Cara Therapeutics, Inc. (CARA): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: DiageoDEO , Constellation BrandsSTZ , Cara Therapeutics Inc.CARA , Cronos Group Inc.CRON and GW PharmaceuticalsGWPH . Here are highlights from Thursday's Analyst Blog: Stocks to Tap the Marijuana Boom Last year, bitcoin made investors go on a mad rush and this year, it's marijuana stocks' turn.
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Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Cara Therapeutics, Inc. (CARA): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: DiageoDEO , Constellation BrandsSTZ , Cara Therapeutics Inc.CARA , Cronos Group Inc.CRON and GW PharmaceuticalsGWPH . Here are highlights from Thursday's Analyst Blog: Stocks to Tap the Marijuana Boom Last year, bitcoin made investors go on a mad rush and this year, it's marijuana stocks' turn.
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Stocks recently featured in the blog include: DiageoDEO , Constellation BrandsSTZ , Cara Therapeutics Inc.CARA , Cronos Group Inc.CRON and GW PharmaceuticalsGWPH . Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Cara Therapeutics, Inc. (CARA): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Thursday's Analyst Blog: Stocks to Tap the Marijuana Boom Last year, bitcoin made investors go on a mad rush and this year, it's marijuana stocks' turn.
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2018-09-13 00:00:00 UTC
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ETFs & Stocks to Tap Marijuana Boom
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https://www.nasdaq.com/articles/etfs-stocks-tap-marijuana-boom-2018-09-13
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Last year, bitcoin made investors go on a mad rush and this year, it's marijuana stocks' turn. This is especially true against the backdrop of more legalization of the plant for recreational use.
In the United States, nine states and Washington, D.C., have currently legalized recreational marijuana, while 29 states have legalized medical weed. Canadians will also be able to buy and consume cannabis legally, effective Oct 17. The move made Canada the second country in the world to legalize the drug for both medical and recreational use, trailing Uruguay, and the first country among G-7 nations (read: Canada Legalizes Marijuana: Two ETFs to Tap the Boom ).
Growing legalization of recreational or medical marijuana has paved the way for a merger mania, spurring a large number of deal activities in the industry. The most notable among this is the beer and spirits giant Diageo DEO , which is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages. An international producer and beer marketer Constellation Brands STZ invested $3.8 billion last month to increase its stake in Canopy Growth CGC , the biggest marijuana industry deal so far.
Molson Coors TAP) is also starting a joint venture with Hydropothecary to develop marijuana drinks in Canada while Heineken HEINY owned Lagunitas launched a THC-infused sparkling water in California dispensaries on Jul 30 (read: Pot Stocks Are on a High: Play These Cannabis ETFs ).
According to the Arcview Market Research, the U.S. legal cannabis market is projected to reach $11 billion in consumer spending this year and more than $23 billion by 2022. Per an analyst at Cowen, the U.S. legal cannabis industry is expected to reach $75 billion in sales by 2030, surpassing the carbonated soft drink market in 2017.
How to Play?
Given this, investors seeking to ride the ongoing green rush may want to tap the space. For them, we have highlighted a few ETFs and stocks that could be compelling picks.
ETFMG Alternative Harvest ETF MJ
This is the first and only pure ETF targeting the cannabis/marijuana industry. It tracks the Prime Alternative Harvest Index, designed to measure the performance of companies within the cannabis ecosystem, benefiting from global medicinal and recreational cannabis legalization initiatives. The fund holds 37 securities in its basket with double-digit concentration on the top two firms. Canadian firms make up 61% of the portfolio, while American firms comprise just 21%.
The ETF has AUM of $562.3 million and trades in a good volume of around 304,000 shares. It charges 75 bps in annual fees and has climbed 16.2% in the year-to-date timeframe (read: 4 Sector ETFs That Beat the Market in August ).
AdvisorShares VICE ETF ACT
Another way to play the upcoming boom in the marijuana industry is with ACT. It not only targets the cannabis industry but also offers concentrated exposure to "vices" including alcohol and tobacco. The fund invests in companies that derive at least 50% of their net revenues from the marijuana and hemp industry or have at least 50% of their company assets dedicated to lawful research and development of cannabis or cannabinoid-related products.
Specifically, the fund has 19% exposure to cannabis-related companies. It is an actively managed fund and has attracted $13.2 million in AUM since its debut in mid-December. The ETF has 0.75% in expense ratio and trades in lower average daily volume of nearly 5,000 shares. It is up 1% in the year-to-date timeframe.
Cara Therapeutics Inc. CARA
This biopharmaceutical company is focused on developing and commercializing new chemical entities designed to alleviate pain. It has a market cap of $814.88 million and its earnings are expected to grow 1.39% next year. The stock has soared 70.3% in the year-to-date time frame and has a Zacks Rank #3 (Hold).
Cronos Group Inc. CRON
This company is engaged in the investment in firms which are licensed to produce and sell medical marijuana. With a market cap of $2.12 billion, the stock has an estimated earnings growth of 750% for the next year. It has surged 22.9% so far this year and carries a Zacks Rank #3 (read: 5 Best Stocks of the Top ETF of August ).
GW Pharmaceuticals GWPH
This is a biopharmaceutical company focused on discovering, developing and commercializing therapeutics from its proprietary cannabinoid product platform in a broad range of disease areas. The company has an estimated earnings growth rate of 22.17% for the next fiscal (ending on September 2019). It has a market cap of $3.88 billion and has gained 6.7% so far this year. GW Pharmaceuticals currently has a Zacks Rank #3.
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Diageo plc (DEO): Free Stock Analysis Report
Constellation Brands Inc (STZ): Free Stock Analysis Report
Heineken NV (HEINY): Free Stock Analysis Report
GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report
Cara Therapeutics, Inc. (CARA): Free Stock Analysis Report
Canopy Growth Corporation (CGC): Free Stock Analysis Report
Cronos Group Inc. (CRON): Free Stock Analysis Report
ADVSR-VICE ETF (ACT): ETF Research Reports
ETFMG-ALT HRVST (MJ): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The most notable among this is the beer and spirits giant Diageo DEO , which is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages. Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Cara Therapeutics, Inc. (CARA): Free Stock Analysis Report Canopy Growth Corporation (CGC): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report ADVSR-VICE ETF (ACT): ETF Research Reports ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. An international producer and beer marketer Constellation Brands STZ invested $3.8 billion last month to increase its stake in Canopy Growth CGC , the biggest marijuana industry deal so far.
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Cara Therapeutics, Inc. (CARA): Free Stock Analysis Report Canopy Growth Corporation (CGC): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report ADVSR-VICE ETF (ACT): ETF Research Reports ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. The most notable among this is the beer and spirits giant Diageo DEO , which is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages. An international producer and beer marketer Constellation Brands STZ invested $3.8 billion last month to increase its stake in Canopy Growth CGC , the biggest marijuana industry deal so far.
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Cara Therapeutics, Inc. (CARA): Free Stock Analysis Report Canopy Growth Corporation (CGC): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report ADVSR-VICE ETF (ACT): ETF Research Reports ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. The most notable among this is the beer and spirits giant Diageo DEO , which is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages. The move made Canada the second country in the world to legalize the drug for both medical and recreational use, trailing Uruguay, and the first country among G-7 nations (read: Canada Legalizes Marijuana: Two ETFs to Tap the Boom ).
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The most notable among this is the beer and spirits giant Diageo DEO , which is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages. Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Cara Therapeutics, Inc. (CARA): Free Stock Analysis Report Canopy Growth Corporation (CGC): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report ADVSR-VICE ETF (ACT): ETF Research Reports ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. It has a market cap of $814.88 million and its earnings are expected to grow 1.39% next year.
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2018-09-10 00:00:00 UTC
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Tilray Stock Surges as Wall Street Embraces the Cannabis Craze
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https://www.nasdaq.com/articles/tilray-stock-surges-wall-street-embraces-cannabis-craze-2018-09-10
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Tilray (NASDAQ: TLRY ) has been on a tear recently. TLRY stock is up more than 200% this month alone! And it's not the only one. Marijuana stocks in general are fired up big time. Investors have poured an avalanche of money into the sector sparked by two events and hopes for a third.
First there was the massive $4 billion investment from Constellation Brands (NYSE: STZ ), the $40 billion wine, beer and liquor giant, in Canopy Growth (NYSE: CGC ), which increased its stake in the company from less than 10% to 38%. There are reports that other alcohol companies, like Diageo (NYSE: DEO ), are on the prowl for similar investments in marijuana stocks.
Second, we're seeing a lot of money coming out of cryptocurrencies and moving into other libertarian causes, with marijuana being the main beneficiary.
And third, there are hopes that Congress will return policy and the regulation of marijuana to the states. Right now, 31 states (and the District of Columbia) allow the use of cannabis for medicinal purposes and 9 (plus D.C.) have legalized it recreationally. If Congress returns oversight to the states, the adoption of recreational use could spread similar to the way the legalization of sports gambling is spreading state by state.
15 Tech Stocks to Buy Amid Fears of a Trade War With China
There's also a wildcard for the industry: Attorney General Jeff Sessions. I suspect the day he exits the Trump administration marijuana stocks will soar since there will likely be less opposition on a federal level. Eventually, the government will have to drop its legal opposition even if it's only on paper to allow for interstate banking.
The Cannabis Craze and TLRY Stock
The huge move into marijuana names has been especially good for Tilray stock, which is a global leader in medical cannabis research, cultivation, processing and distribution. TLRY stock has been on fire recently as Wall Street embraces the cannabis craze. Tilray stock soared as much as 300% (before settling to a still insane 240% gain) since August 1 .
I do see the stock going higher over time, but I am cautious here given its meteoric rise in the last month. In addition, the most recent quarterly earnings report showed revenue of $9.5 million, which is low to support a $8.1 billion valuation. And I am also not quite ready to recommend investing in the marijuana space yet, but you can be sure it's on my radar.
I wouldn't dissuade traders from TLRY, but it's hard to give it a firm price target right now.
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The post Tilray Stock Surges as Wall Street Embraces the Cannabis Craze 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.
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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There are reports that other alcohol companies, like Diageo (NYSE: DEO ), are on the prowl for similar investments in marijuana stocks. 15 Tech Stocks to Buy Amid Fears of a Trade War With China There's also a wildcard for the industry: Attorney General Jeff Sessions. In addition, the most recent quarterly earnings report showed revenue of $9.5 million, which is low to support a $8.1 billion valuation.
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There are reports that other alcohol companies, like Diageo (NYSE: DEO ), are on the prowl for similar investments in marijuana stocks. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tilray (NASDAQ: TLRY ) has been on a tear recently. TLRY stock has been on fire recently as Wall Street embraces the cannabis craze.
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There are reports that other alcohol companies, like Diageo (NYSE: DEO ), are on the prowl for similar investments in marijuana stocks. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tilray (NASDAQ: TLRY ) has been on a tear recently. The Cannabis Craze and TLRY Stock The huge move into marijuana names has been especially good for Tilray stock, which is a global leader in medical cannabis research, cultivation, processing and distribution.
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There are reports that other alcohol companies, like Diageo (NYSE: DEO ), are on the prowl for similar investments in marijuana stocks. TLRY stock is up more than 200% this month alone! TLRY stock has been on fire recently as Wall Street embraces the cannabis craze.
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2018-09-04 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Bristol-Myers Squibb, Qualcomm, Citigroup, Diageo and Anthem
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DEO
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-bristol-myers-squibb-qualcomm-citigroup-diageo-and
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For Immediate Release
Chicago, IL - September 4, 2018 - 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 Bristol-Myers Squibb BMY , Qualcomm QCOM , Citigroup C , Diageo DEO and Anthem ANTM .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday's Analyst Blog:
Top Stock Reports for Bristol-Myers, Qualcomm and Citigroup
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 Bristol-Myers Squibb, Qualcomm and Citigroup. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Shares of buy-rated Bristol-Myers have underperformed the Zacks Large Cap Pharmaceuticals industry in the last six months, losing -7.6% vs. a gain of -7.9%. However, Bristol-Myers' blockbuster immuno-oncology drug Opdivo continues to maintain momentum.
Opdivo's performance is being boosted by the uptake in new indications, first line renal cell and adjuvant melanoma. Several label expansion applications for Opdivo are under review in the United States and Europe. The drug was recently approved for small cell lung cancer in the United States and melanoma in Europe.
Potential approval in other indications will further boost the prospects of this blockbuster drug. Eliquis is expected to drive further growth in 2018 driven by increases in market share in the novel oral anticoagulant (NOAC) market.
The label expansion of other drugs like Sprycel and Empliciti also bode well for the company. However, pricing concerns, stiff competition in the immuno-oncology space are expected to remain an overhang.
(You can read the full research report on Bristol-Myers here >>> ).
Buy-rated Qualcomm 's shares have gained +30.9% over the past one year vs +23.8% for the Zacks Wireless Equipment industry as it remains focused on $1 billion cost-cut plan. Qualcomm has been trying to retain its leadership in 5G, chipset market and mobile connectivity with multiple technological achievements and innovative product launches.
The company's improved and upgraded technologies will likely enable various firms to build new and updated products and services across the wireless ecosystem to better serve customers. Qualcomm aborted the proposed acquisition of NXP Semiconductors as it failed to get the anti-trust approval from China, thereby eliminating the uncertainty with the deal stuck in red tape for 21 months.
This is likely to pave the path for focused organic growth of the company. However, regulatory disputes and aggressive competition in the mobile phone chipset market continue to hurt Qualcomm. Headwinds from weaker industry conditions have further dented margins.
(You can read the full research report on Qualcomm here >>> ).
Shares of Citigroup have underperformed the Zacks Banks - Major Regional industry over the last six months (-3% vs. 1.2%). Yet, the company possesses an impressive earnings surprise history, beating the Zacks Consensus Estimate in all the trailing four quarters.
The Zacks analyst believes the company's restructuring and streamlining efforts, strategic investments in core business, lower tax rate and expense management will likely support profitability. Recently, the capital plan approval reflects strong capital position.
Yet, several issues, including litigation burden, keep the analyst apprehensive. Also, despite rising rates, margin remains under pressure, due to persistent decline in the company's legacy holdings portfolio.
(You can read the full research report on Citigroup here >>> ).
Other noteworthy reports we are featuring today include Diageo and Anthem.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market.
Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Click to see them right now >>
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Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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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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Citigroup Inc. (C): Free Stock Analysis Report
Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report
QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
Anthem, Inc. (ANTM): 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.
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 Bristol-Myers Squibb BMY , Qualcomm QCOM , Citigroup C , Diageo DEO and Anthem ANTM . Click to get this free report Citigroup Inc. (C): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Anthem, Inc. (ANTM): Free Stock Analysis Report To read this article on Zacks.com click here. Buy-rated Qualcomm 's shares have gained +30.9% over the past one year vs +23.8% for the Zacks Wireless Equipment industry as it remains focused on $1 billion cost-cut plan.
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Stocks recently featured in the blog include Bristol-Myers Squibb BMY , Qualcomm QCOM , Citigroup C , Diageo DEO and Anthem ANTM . Click to get this free report Citigroup Inc. (C): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Anthem, Inc. (ANTM): Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Bristol-Myers Squibb, Qualcomm and Citigroup.
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Click to get this free report Citigroup Inc. (C): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Anthem, Inc. (ANTM): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Bristol-Myers Squibb BMY , Qualcomm QCOM , Citigroup C , Diageo DEO and Anthem ANTM . Here are highlights from Friday's Analyst Blog: Top Stock Reports for Bristol-Myers, Qualcomm and Citigroup The Zacks Research Daily presents the best research output of our analyst team.
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Click to get this free report Citigroup Inc. (C): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Anthem, Inc. (ANTM): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Bristol-Myers Squibb BMY , Qualcomm QCOM , Citigroup C , Diageo DEO and Anthem ANTM . Today's Research Daily features new research reports on 16 major stocks, including Bristol-Myers Squibb, Qualcomm and Citigroup.
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2018-09-04 00:00:00 UTC
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4 Sector ETFs That Beat the Market in August
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https://www.nasdaq.com/articles/4-sector-etfs-beat-market-august-2018-09-04-0
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The month of August was solid for Wall Street driven by the dual tailwinds of solid corporate earnings and a booming economy. The Dow Jones and the S&P 500 notched their best performances for the month since 2014, climbing 2.1% and 3%, respectively, while the Nasdaq Composite logged its best August since 2000, with gains of 5.7%. Notably, the S&P 500 topped a new milestone of 2,900.
The impressive gains came despite the emerging market meltdown due to troubles in Turkey and Argentina. Also, trade war fears between the United States and China remained an overhang as both implemented the second round of tariffs on $16 billion of each other's goods, effective Aug 23.
The rounds of upbeat data bolstered confidence in the economy leading to risk-on trade. This is especially true as America is witnessing the fastest pace of growth in nearly four years, with a nearly two-decade low unemployment rate of 3.9% and 18-year high consumer confidence. Historic tax cuts, higher government spending and deregulation are fueling growth.
Additionally, the Fed is on track for gradual rate hikes this year, citing that the economy is strong and can handle a tighter monetary policy. The central bank, which began to tighten monetary policy in 2015, has raised rates twice this year and is widely expected to do so again next month and in December.
Consumer Confidence Hits 18-Year High: 3 Fidelity Fund Picks
A rising rate scenario also signals a strengthening economy, which is spurring growth in the stock market. Further, optimism over trade negotiations as well as a solid rebound in broad-based technology and Internet stocks buoyed up sentiments.
That said, a few sectors easily crushed the market in August. Below we have highlighted four sector ETFs that witnessed handsome gains last month and could be better plays in the months ahead should the trends prevail.
Sector ETFs That Beat the Market in August: ETFMG Alternative Harvest ETF (MJ)
The Cannabis-related ETF Alternative Harvest ETF (NYSEARCA: MJ ) was on a tear last month driven by the surge in deal-making by marijuana stocks ahead of legalization of nationwide recreational use of cannabis in Canada on Oct 17.
A number of alcoholic beverage companies are showing interest in partnering with cannabis producers, with the latest being Diageo (DEO), which is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages.
As such, MJ emerged as the biggest winner in August, gaining 25.1%. This is the first and only ETF targeting the cannabis/marijuana industry. It tracks the Prime Alternative Harvest Index, designed to measure the performance of companies within the cannabis ecosystem, benefiting from global medicinal and recreational cannabis legalization initiatives.
5 Top Stocks That Flaunt Superb Earnings Acceleration
The fund holds 40 securities in its basket with higher concentration on the top firms. Canadian firms make up 61% of the portfolio, while American firms comprise just 21%. The ETF has AUM of $468.1 million and trades in a good volume of around 264,000 shares. It charges 75 bps in annual fees.
Sector ETFs That Beat the Market in August: ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB)
Master limited partnerships (MLPs) are rising on robust drilling activity, strong earnings, and the new FERC (Federal Energy Regulatory Commission) ruling related to the treatment of income taxes for interstate natural gas pipeline operators that has offered them some relaxation.
While most of the MLP products surged, the Alerian MLP Infrastructure Index ETN Series B (NYSEARCA: MLPB ) led the way higher, climbing 13.9%. It is an ETN option and tracks the performance of the Alerian MLP Infrastructure Index, which comprises 22 liquid, midstream energy infrastructure MLPs.
Top-Ranked Health Care Companies Delivering Steady Growth
The note is extremely illiquid and unpopular with AUM of just $9.8 million and average daily volume of 100 shares. It charges 85 in bps in annual fees.
Sector ETFs That Beat the Market in August: ARK Genomic Revolution Multi-Sector ETF (ARKG)
The ARK Genomic Revolution Multi-Sector ETF (NYSEARCA: ARKG ) is an actively managed ETF focusing on companies that are expected to benefit from extension and enhancement of the quality of human and other life by incorporating technological and scientific developments, improvements and advancements in genomics into their business.
The surge in demand for artificial intelligence in the advancement of diagnoses and treatment across the healthcare spectrum has been driving this ETFs higher. Per the fund's fact sheet, the cost of sequencing the DNA of a full human genome should drop below $100 by 2022.
The fund holds 37 stocks in its basket with higher concentration on the top four firms. About one-fourth of the portfolio is allotted to gene therapy, closely followed by targeted therapeutics (16%), instrumentation (15.5%), beyond DNA (14.8%) and bioinformatics (11.3%).
Nasdaq Crosses 8,000 Mark: Play 5 Top-Ranked Stocks
The product has accumulated $306.7 million in its asset base and trades in average daily volume of 114,000 shares. It has 0.75% in expense ratio.
Sector ETFs That Beat the Market in August: SPDR S&P Internet ETF (XWEB)
Renewed interest in the tech sector was fueled by the Mexico trade deal and talks with Canada. Additionally, improving economic growth is providing a solid boost to economically sensitive growth sectors like technology, which typically perform well in a maturing economic cycle.
The SPDR S&P Internet ETF (NYSEARCA: XWEB ) targets the Internet corner of the broad tech space. It tracks the S&P Internet Select Industry Index and holds 71 stocks in its basket with an equal-weight exposure of around 2%.
Top-Ranked Growth ETFs Hitting All-Time Highs
The fund has accumulated $53.8 million in its asset base and charges 35 bps in fees from investors. It trades in a light volume of around 10,000 shares a day on average and carries a Zacks ETF Rank #3 (Hold).
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The post 4 Sector ETFs That Beat the Market in August 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.
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 number of alcoholic beverage companies are showing interest in partnering with cannabis producers, with the latest being Diageo (DEO), which is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages. Consumer Confidence Hits 18-Year High: 3 Fidelity Fund Picks A rising rate scenario also signals a strengthening economy, which is spurring growth in the stock market. Sector ETFs That Beat the Market in August: ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB) Master limited partnerships (MLPs) are rising on robust drilling activity, strong earnings, and the new FERC (Federal Energy Regulatory Commission) ruling related to the treatment of income taxes for interstate natural gas pipeline operators that has offered them some relaxation.
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A number of alcoholic beverage companies are showing interest in partnering with cannabis producers, with the latest being Diageo (DEO), which is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages. Sector ETFs That Beat the Market in August: ETFMG Alternative Harvest ETF (MJ) The Cannabis-related ETF Alternative Harvest ETF (NYSEARCA: MJ ) was on a tear last month driven by the surge in deal-making by marijuana stocks ahead of legalization of nationwide recreational use of cannabis in Canada on Oct 17. Sector ETFs That Beat the Market in August: ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB) Master limited partnerships (MLPs) are rising on robust drilling activity, strong earnings, and the new FERC (Federal Energy Regulatory Commission) ruling related to the treatment of income taxes for interstate natural gas pipeline operators that has offered them some relaxation.
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A number of alcoholic beverage companies are showing interest in partnering with cannabis producers, with the latest being Diageo (DEO), which is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages. Sector ETFs That Beat the Market in August: ETFMG Alternative Harvest ETF (MJ) The Cannabis-related ETF Alternative Harvest ETF (NYSEARCA: MJ ) was on a tear last month driven by the surge in deal-making by marijuana stocks ahead of legalization of nationwide recreational use of cannabis in Canada on Oct 17. Sector ETFs That Beat the Market in August: ARK Genomic Revolution Multi-Sector ETF (ARKG) The ARK Genomic Revolution Multi-Sector ETF (NYSEARCA: ARKG ) is an actively managed ETF focusing on companies that are expected to benefit from extension and enhancement of the quality of human and other life by incorporating technological and scientific developments, improvements and advancements in genomics into their business.
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A number of alcoholic beverage companies are showing interest in partnering with cannabis producers, with the latest being Diageo (DEO), which is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages. Sector ETFs That Beat the Market in August: ETFMG Alternative Harvest ETF (MJ) The Cannabis-related ETF Alternative Harvest ETF (NYSEARCA: MJ ) was on a tear last month driven by the surge in deal-making by marijuana stocks ahead of legalization of nationwide recreational use of cannabis in Canada on Oct 17. It tracks the S&P Internet Select Industry Index and holds 71 stocks in its basket with an equal-weight exposure of around 2%.
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2018-09-03 00:00:00 UTC
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Why Cronos Group Inc. Stock Rose Higher in August
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DEO
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https://www.nasdaq.com/articles/why-cronos-group-inc-stock-rose-higher-august-2018-09-03
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What happened
Canadian pot grower Cronos Group (NASDAQ: CRON) (TSX: CRON) saw its shares gain a jaw-dropping 70% last month, according to data from S&P Global Market Intelligence . The catalyst?
The company's shares took flight primarily due to the multibillion-dollar commercial opportunity presented by the Canadian adult-use recreational marijuana market that's set to open up in October. Nearly every publicly traded Canadian pot producer experienced a sizable jump in its share price last month, after all.
However, Cronos' stock got another boost last month from the reported interest by British alcoholic beverage maker Diageo (NYSE: DEO) in jumping into the legal Canadian pot market through either an equity stake or a joint venture. Cronos is the country's seventh-largest pot company by production capacity, meaning that it might be an attractive partner for the likes of a Diageo or perhaps another interested party looking to get in on the so-called "green rush."
So what
Unfortunately, Cronos' winning streak came to an abrupt halt toward the end of the month, thanks to a report by Citron Research entitled Cronos: The Dark Side of the Cannabis Space. The report alleges, among other things, that Cronos Group's management hasn't been forthright with investors about the size of its supply agreements with Canadian provinces.
As a result, these supply agreements could turn out to be far smaller than some have been anticipating, dampening the possibility of a lucrative partnership with a major alcoholic beverage maker like Diageo.
Now what
Putting Citron's allegations aside for the moment, the more pressing matter is arguably that Cronos now sports the richest valuation among major Canadian pot growers. Put simply, Cronos' sky-high valuation seems to be already baking in a large partnership. But the chances of a deal getting done in the next few weeks -- or even months -- might not be all that great.
The company, after all, is facing stiff competition from several other Canadian growers looking to curry the favor of alcoholic beverage makers. Investors, therefore, might want to stick to the safety of the sidelines with this red-hot pot stock for now.
10 stocks we like better than Cronos Group Inc.
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Cronos Group Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
George Budwell has no position in any of the stocks mentioned. The Motley Fool recommends Diageo and 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.
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, Cronos' stock got another boost last month from the reported interest by British alcoholic beverage maker Diageo (NYSE: DEO) in jumping into the legal Canadian pot market through either an equity stake or a joint venture. The company's shares took flight primarily due to the multibillion-dollar commercial opportunity presented by the Canadian adult-use recreational marijuana market that's set to open up in October. Cronos is the country's seventh-largest pot company by production capacity, meaning that it might be an attractive partner for the likes of a Diageo or perhaps another interested party looking to get in on the so-called "green rush."
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However, Cronos' stock got another boost last month from the reported interest by British alcoholic beverage maker Diageo (NYSE: DEO) in jumping into the legal Canadian pot market through either an equity stake or a joint venture. What happened Canadian pot grower Cronos Group (NASDAQ: CRON) (TSX: CRON) saw its shares gain a jaw-dropping 70% last month, according to data from S&P Global Market Intelligence . Now what Putting Citron's allegations aside for the moment, the more pressing matter is arguably that Cronos now sports the richest valuation among major Canadian pot growers.
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However, Cronos' stock got another boost last month from the reported interest by British alcoholic beverage maker Diageo (NYSE: DEO) in jumping into the legal Canadian pot market through either an equity stake or a joint venture. What happened Canadian pot grower Cronos Group (NASDAQ: CRON) (TSX: CRON) saw its shares gain a jaw-dropping 70% last month, according to data from S&P Global Market Intelligence . * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Cronos Group Inc. wasn't one of them!
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However, Cronos' stock got another boost last month from the reported interest by British alcoholic beverage maker Diageo (NYSE: DEO) in jumping into the legal Canadian pot market through either an equity stake or a joint venture. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Cronos Group Inc. wasn't one of them! The Motley Fool recommends Diageo and Diageo.
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2018-08-31 00:00:00 UTC
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5 Best Stocks of the Top ETF of August
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https://www.nasdaq.com/articles/5-best-stocks-top-etf-august-2018-08-31
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The cannabis-related ETFMG Alternative Harvest ETF MJ topped the list of the best performing ETFs of August, with impressive returns of about 22.5%. It also attracted $22 million in capital, putting it on track for the largest monthly inflow since February.
The surge was primarily driven by the legalization of nationwide recreational use of cannabis in Canada effective Oct 17 that has paved the way for a merger mania, attracting a large number of deal activities (read: Canada Legalizes Marijuana: Two ETFs to Tap the Boom ).
The real craze came this month as a number of alcoholic beverage companies are showing interest in partnering with the cannabis producers. This is especially true as beer and spirits giant Diageo DEO is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages. An international producer and beer marketer Constellation Brands STZ invested $3.8 billion on Aug 15 to increase its stake in Canopy Growth (CGC), the biggest marijuana industry deal so far.
Molson Coors TAP is also starting a joint venture with Hydropothecary to develop marijuana drinks in Canada while Heineken (HEINY)-owned Lagunitas launched a THC-infused sparkling water in California dispensaries on July 30.
Given the surge in deal-making by marijuana stocks, worldwide spending on legal cannabis is expected to hit $57 billion by 2027 led by growth in North America and Europe, per the new report by Arcview Market Research and BDS Analytics. North America will continue to see maximum spending, rising from $9.2 billion in 2017 to $47.3 billion in 2027.
Let's take a closer look at the fundamentals of MJ.
MJ in Focus
This is the first and only ETF targeting the cannabis/marijuana industry. It tracks the Prime Alternative Harvest Index, designed to measure the performance of companies within the cannabis ecosystem, benefiting from global medicinal and recreational cannabis legalization initiatives. The fund holds 40 securities in its basket with higher concentration on the top firms. Canadian firms make up 61% of the portfolio, while American firms comprise just 21%.
The ETF has AUM of $468.1 million and trades in a good volume of around 264,000 shares. It charges 75 bps in annual fees (read: Follow Constellation Brands, Bet Big on Cannabis ETFs ).
Though most of the stocks in the fund's portfolio delivered strong returns, a few were the real stars, having gained more than 50%. Below we have highlighted those five best-performing stocks in the ETF with their respective positions in the fund's basket:
Best Performing Stocks of MJ
Tilray Inc. TLRY : This pharmaceutical company develops cannabis-based medicines, drugs, drops and oil products. The stock has surged about 167.3% this month. It currently carries a Zacks Rank #3 (Hold) and has a VGM Score of D. TLRY occupies the eleventh spot in the fund's basket with 2.9% of the total assets.
Canopy Growth CGC : This cannabis company offers dry cannabis and oil products primarily under the Tweed and Bedrocan brands. Canopy Growth takes the top position in the fund's basket with 10.6% allocation. It has also delivered incredible returns of 68.9% in August. The stock has a Zacks Rank #4 (Sell) and VGM Score of F (read: Pot Stocks Are on a High: Play These Cannabis ETFs ).
Insys Therapeutics Inc. INSY : This commercial-stage specialty pharmaceutical company is engaged in the development and commercialization of pharmaceutical products that target the unmet needs of cancer patients. The stock takes the #14 spot in the fund's basket with 2.2% of the assets. It has gained 60.2% in August and has a Zacks Rank #4. Insys Therapeutics has a VGM Score of F.
CannTrust Holdings Inc. CNTTF : This company produces and distributes pharmaceutical grade medical cannabis products in Canada. The stock has surged 51.2% this month.
Cronos Group Inc. CRON : This company is engaged in the investment in firms that are licensed to produce and sell medical marijuana. It has gained about 50.8% this month. Cronos Group currently has a Zacks Rank #3 (Hold) and a VGM Score of F. The stock occupies the third position in the fund's portfolio, making up for 8.4% share.
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Diageo plc (DEO): Free Stock Analysis Report
Constellation Brands Inc (STZ): Free Stock Analysis Report
Molson Coors Brewing Company (TAP): Free Stock Analysis Report
Insys Therapeutics, Inc. (INSY): Free Stock Analysis Report
Canopy Growth Corporation (CGC): Free Stock Analysis Report
Tilray, Inc. (TLRY): Free Stock Analysis Report
Cronos Group Inc. (CRON): Free Stock Analysis Report
ETFMG-ALT HRVST (MJ): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This is especially true as beer and spirits giant Diageo DEO is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages. Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Insys Therapeutics, Inc. (INSY): Free Stock Analysis Report Canopy Growth Corporation (CGC): Free Stock Analysis Report Tilray, Inc. (TLRY): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. An international producer and beer marketer Constellation Brands STZ invested $3.8 billion on Aug 15 to increase its stake in Canopy Growth (CGC), the biggest marijuana industry deal so far.
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Insys Therapeutics, Inc. (INSY): Free Stock Analysis Report Canopy Growth Corporation (CGC): Free Stock Analysis Report Tilray, Inc. (TLRY): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. This is especially true as beer and spirits giant Diageo DEO is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages. Below we have highlighted those five best-performing stocks in the ETF with their respective positions in the fund's basket: Best Performing Stocks of MJ Tilray Inc. TLRY : This pharmaceutical company develops cannabis-based medicines, drugs, drops and oil products.
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Insys Therapeutics, Inc. (INSY): Free Stock Analysis Report Canopy Growth Corporation (CGC): Free Stock Analysis Report Tilray, Inc. (TLRY): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. This is especially true as beer and spirits giant Diageo DEO is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages. Below we have highlighted those five best-performing stocks in the ETF with their respective positions in the fund's basket: Best Performing Stocks of MJ Tilray Inc. TLRY : This pharmaceutical company develops cannabis-based medicines, drugs, drops and oil products.
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This is especially true as beer and spirits giant Diageo DEO is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages. Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Insys Therapeutics, Inc. (INSY): Free Stock Analysis Report Canopy Growth Corporation (CGC): Free Stock Analysis Report Tilray, Inc. (TLRY): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. An international producer and beer marketer Constellation Brands STZ invested $3.8 billion on Aug 15 to increase its stake in Canopy Growth (CGC), the biggest marijuana industry deal so far.
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2018-08-31 00:00:00 UTC
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Is This Beaten-Down Pot Stock a Bargain?
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DEO
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https://www.nasdaq.com/articles/beaten-down-pot-stock-bargain-2018-08-31
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nan
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nan
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Yesterday, shares of the Canadian marijuana investment firm Cronos Group (NASDAQ: CRON) took an absolute beating. During normal trading hours, the company's stock fell by over 28%, and then it slipped another 6.9% in after-hours trading. What in the world happened?
Cronos' shares cratered yesterday for three separate reasons:
Citron Research's Andrew Left kicked off the downtrend by saying that Cronos is "deceiving the investing public" about its supply agreements with Canadian provinces and that its international footprint isn't as large as some of its chief competitors. As a result, the company might not be an ideal partner for U.K.-based beverage maker Diageo (NYSE: DEO) . Diageo has been rumored to be engaging in talks with a handful of Canadian pot companies regarding a possible equity stake, according to BNN Bloomberg.
News slipped out yesterday that President Trump has reportedly formed a secret committee to downplay the health benefits of marijuana. This unexpected development seems to pour cold water on the notion that Trump might move to legalize marijuana at the federal level or, at the very least, make it a states' rights issue as promised on multiple occasions.
Lastly, Cronos and nearly all of its large-cap marijuana peers have seen their shares prices tear higher over the last two weeks in anticipation of the upcoming legalization of recreational marijuana in Canada this October. In short, this widespread rally was probably ripe for a pullback.
With all of these headwinds, Cronos' stock might be set to take another leg lower in the coming days. However, investors with a long-term outlook for this high-growth industry might want to take advantage of this dip. Here's why.
Cronos will be a long-term winner
Admittedly, this surge in the share prices of the top Canadian marijuana companies like Cronos, Canopy Growth Corporation (NYSE: CGC) , and Tilray (NASDAQ: TLRY) is probably overdone at this point. After all, Canopy's shares are presently trading at a mind-numbing price-to-sales ratio of 147, and Tilray's stock is currently valued at something like 10 times the company's projected 2021 sales . Cronos, for its part, is arguably the worst of the bunch with its shares trading at a staggering P/S ratio of 231 -- even after yesterday's monstrous decline.
Still, investors may want to start buying Cronos' stock on this steep pullback for two reasons. First off, big beverage makers like Diageo are undeniably showing strong interest in this nascent industry. Consequently, more multibillion-dollar deals like the recent tie-up between Canopy Growth Corp. and Constellation Brands (NYSE: STZ) are probably close at hand.
Now, Cronos may not have the same level of international exposure as Canopy at the moment , but the company is reportedly in the process of expanding into Australia, Israel, Germany, and even Poland. This ongoing international ramp-up should prove to be a particularly attractive feature to the likes of, say, a Diageo or perhaps another big beverage maker looking to get in on the action.
Therefore, Citron's argument that Cronos isn't a prime partnering candidate due to its smaller international footprint comes across as a bit of a stretch, to put it mildly. Cronos and Tilray are, in fact, both probably going to strike deals with a large partner in the not-so-distant future, thanks to their positions as top dogs in the Canadian pot industry.
Secondly, the global pot industry is forecast to rise to a staggering $75 billion by 2030 and Cronos is primed to gobble up a healthy share of this massive pie. The underlying reason is that Cronos holds an important competitive advantage over the broader field by being among the first to be listed on a major U.S. exchange.
This top cannabis company will thus have access to capital on an "as-needed basis" going forward, which is especially important as it ramps up production to meet demand in both Canada and abroad. The same simply can't be said for the hundreds of smaller operations aiming to compete with Cronos.
Investing takeaway
Cronos' stock may have gotten a tad overheated in recent trading sessions, but that doesn't mean that the company's ginormous growth potential isn't real. The days of marijuana prohibition are coming to an end and well-capitalized companies like Cronos are poised to take advantage of this massive commercial opportunity. Therefore, investors willing to overlook some short-term volatility may want to start nibbling at this promising pot stock following this hefty single-day decline.
10 stocks we like better than Cronos Group Inc.
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Cronos Group Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
George Budwell 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.
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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As a result, the company might not be an ideal partner for U.K.-based beverage maker Diageo (NYSE: DEO) . This unexpected development seems to pour cold water on the notion that Trump might move to legalize marijuana at the federal level or, at the very least, make it a states' rights issue as promised on multiple occasions. Therefore, Citron's argument that Cronos isn't a prime partnering candidate due to its smaller international footprint comes across as a bit of a stretch, to put it mildly.
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As a result, the company might not be an ideal partner for U.K.-based beverage maker Diageo (NYSE: DEO) . Yesterday, shares of the Canadian marijuana investment firm Cronos Group (NASDAQ: CRON) took an absolute beating. Cronos will be a long-term winner Admittedly, this surge in the share prices of the top Canadian marijuana companies like Cronos, Canopy Growth Corporation (NYSE: CGC) , and Tilray (NASDAQ: TLRY) is probably overdone at this point.
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As a result, the company might not be an ideal partner for U.K.-based beverage maker Diageo (NYSE: DEO) . Cronos' shares cratered yesterday for three separate reasons: Citron Research's Andrew Left kicked off the downtrend by saying that Cronos is "deceiving the investing public" about its supply agreements with Canadian provinces and that its international footprint isn't as large as some of its chief competitors. Cronos will be a long-term winner Admittedly, this surge in the share prices of the top Canadian marijuana companies like Cronos, Canopy Growth Corporation (NYSE: CGC) , and Tilray (NASDAQ: TLRY) is probably overdone at this point.
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As a result, the company might not be an ideal partner for U.K.-based beverage maker Diageo (NYSE: DEO) . Cronos will be a long-term winner Admittedly, this surge in the share prices of the top Canadian marijuana companies like Cronos, Canopy Growth Corporation (NYSE: CGC) , and Tilray (NASDAQ: TLRY) is probably overdone at this point. Still, investors may want to start buying Cronos' stock on this steep pullback for two reasons.
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2018-08-31 00:00:00 UTC
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Top Stock Reports for Bristol-Myers, Qualcomm & Citigroup
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https://www.nasdaq.com/articles/top-stock-reports-bristol-myers-qualcomm-citigroup-2018-08-31
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Thursday, August 31, 2018
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 Bristol-Myers Squibb (BMY), Qualcomm (QCOM) and Citigroup (C). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Shares of buy-rated Bristol-Myers have underperformed the Zacks Large Cap Pharmaceuticals industry in the last six months, losing -7.6% vs. a gain of -7.9%. However, Bristol-Myers' blockbuster immuno-oncology drug Opdivo continues to maintain momentum.
Opdivo's performance is being boosted by the uptake in new indications, first line renal cell and adjuvant melanoma. Several label expansion applications for Opdivo are under review in the United States and Europe. The drug was recently approved for small cell lung cancer in the United States and melanoma in Europe.
Potential approval in other indications will further boost the prospects of this blockbuster drug. Eliquis is expected to drive further growth in 2018 driven by increases in market share in the novel oral anticoagulant (NOAC) market.
The label expansion of other drugs like Sprycel and Empliciti also bode well for the company. However, pricing concerns, stiff competition in the immuno-oncology space are expected to remain an overhang.
(You can read the full research report on Bristol-Myers here >>> ).
Buy-rated Qualcomm 's shares have gained +30.9% over the past one year vs +23.8% for the Zacks Wireless Equipment industry as it remains focused on $1 billion cost-cut plan. Qualcomm has been trying to retain its leadership in 5G, chipset market and mobile connectivity with multiple technological achievements and innovative product launches.
The company's improved and upgraded technologies will likely enable various firms to build new and updated products and services across the wireless ecosystem to better serve customers. Qualcomm aborted the proposed acquisition of NXP Semiconductors as it failed to get the anti-trust approval from China, thereby eliminating the uncertainty with the deal stuck in red tape for 21 months.
This is likely to pave the path for focused organic growth of the company. However, regulatory disputes and aggressive competition in the mobile phone chipset market continue to hurt Qualcomm. Headwinds from weaker industry conditions have further dented margins.
(You can read the full research report on Qualcomm here >>> ).
Shares of Citigroup have underperformed the Zacks Banks - Major Regional industry over the last six months (-3% vs. 1.2%). Yet, the company possesses an impressive earnings surprise history, beating the Zacks Consensus Estimate in all the trailing four quarters.
The Zacks analyst believes the company's restructuring and streamlining efforts, strategic investments in core business, lower tax rate and expense management will likely support profitability. Recently, the capital plan approval reflects strong capital position.
Yet, several issues, including litigation burden, keep the analyst apprehensive. Also, despite rising rates, margin remains under pressure, due to persistent decline in the company's legacy holdings portfolio.
(You can read the full research report on Citigroup here >>> ).
Other noteworthy reports we are featuring today include Phillips 66 (PSX), Diageo (DEO) and Anthem (ANTM).
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market.
Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Click to see them right now >>
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 Trendsand Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Opdivo, Eliquis Boost Bristol-Myers (BMY) Growth Prospects
Qualcomm (QCOM) Products Drive Wireless Ecosystem Innovation
Focus on Core Operations Aid Citigroup (C), Legal Woes Linger
Featured Reports
Cost Cuts, Dividends & Buybacks Buoy Norfolk Southern (NSC)
The Zacks analyst likes the company's efforts to reward shareholders through dividends and buybacks. Initiatives to check costs also raise optimism in the stock.
Self-pay Subscriber Growth Aids Sirius XM Holdings (SIRI)
Per the Zacks analyst, solid new car as well as used car conversion rates is significantly contributing to self-pay subscriber growth which is benefiting the company.
Strategic Buyouts and Collaborations Aid Anthem (ANTM)
Per the Zacks analyst, a number of acquisitions and active collaborations have helped Anthem expand its portfolio and boost its Medicare Advantage business.
Medical-Surgical Unit Aids McKesson (MCK), Competition Rife
McKesson has been riding on growth in the Medical-Surgical Solutions segment. However, the Zacks analyst is pessimistic about cutthroat competition in the MedTech space.
D.R. Horton's (DHI) Focus on Entry-Level Buyers Bodes Well
The Zacks analyst stresses, D.R. Horton's strategic shift toward more entry-level affordable homes is expected to yield higher absorptions.
New Project Wins to Support Praxair (PX) Amid Inflation
Per the Zacks Analyst, Praxair will gain from new orders for three onsite projects as well as CNOOC project. But, tight helium supply, rising freight and logistics costs will hurt margins.
Winnebago (WGO) Rides on Growing Motorhome Capacity & Demand
Per the Zacks analyst, Winnebago's motorhome capacity expansion supports production of Class A & Class C motorhomes. Also, growing consumer demand drives company's sales.
New Upgrades
Phillips 66 (PSX) Banks on Growing Midstream Business in US
The Zacks analyst appreciates Phillips 66's plan of capitalizing the growing demand for fresh midstream infrastructure in the prospective U.S. shale plays.
Europe & Asia Regions to Continue Driving Guess? (GES) Sales
Per the Zacks analyst, solid Europe and Asia sales have been long driving Guess? Management continues to invest in these regions that are expected to post double-digit sales growth this year.
National Fuel Gas (NFG) Gains from its Appalachian Presence
Per the Zacks analyst National Fuel Gas' high-quality acreage in Marcellus and Utica Shale is going to boost its natural gas production by 15% for next few years and drive its performance
New Downgrades
L Brands (LB) Hurt by Soft Victoria's Secret & Pink Brands
Per the Zacks analyst, L Brands Victoria's Secret brand is bearing the brunt of consumers' changing preferences and stiff competition. Moreover, softness in the Pink brand has also added to woes.
Currency Headwinds to Weigh on Diageo's (DEO) Profitability
Per the Zacks analyst, Diageo's significant international presence exposes it to major currency risks. Per current rates, currency headwinds are expected to hurt its operating profit in fiscal 2019.
Pressure Pumping Challenges Weigh on Patterson-UTI (PTEN)
Lower utilization, operational delays and weak market sentiment for Patterson-UTI's pressure pumping unit throughout 2018 have made the Zacks analyst turn bearish on the stock.
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
QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
Phillips 66 (PSX): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
Citigroup Inc. (C): Free Stock Analysis Report
Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report
Anthem, Inc. (ANTM): 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.
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 noteworthy reports we are featuring today include Phillips 66 (PSX), Diageo (DEO) and Anthem (ANTM). Currency Headwinds to Weigh on Diageo's (DEO) Profitability Per the Zacks analyst, Diageo's significant international presence exposes it to major currency risks. Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Phillips 66 (PSX): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Anthem, Inc. (ANTM): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Phillips 66 (PSX): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Anthem, Inc. (ANTM): Free Stock Analysis Report To read this article on Zacks.com click here. Other noteworthy reports we are featuring today include Phillips 66 (PSX), Diageo (DEO) and Anthem (ANTM). Currency Headwinds to Weigh on Diageo's (DEO) Profitability Per the Zacks analyst, Diageo's significant international presence exposes it to major currency risks.
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Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Phillips 66 (PSX): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Anthem, Inc. (ANTM): Free Stock Analysis Report To read this article on Zacks.com click here. Other noteworthy reports we are featuring today include Phillips 66 (PSX), Diageo (DEO) and Anthem (ANTM). Currency Headwinds to Weigh on Diageo's (DEO) Profitability Per the Zacks analyst, Diageo's significant international presence exposes it to major currency risks.
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Other noteworthy reports we are featuring today include Phillips 66 (PSX), Diageo (DEO) and Anthem (ANTM). Currency Headwinds to Weigh on Diageo's (DEO) Profitability Per the Zacks analyst, Diageo's significant international presence exposes it to major currency risks. Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Phillips 66 (PSX): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Anthem, Inc. (ANTM): Free Stock Analysis Report To read this article on Zacks.com click here.
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f5ce15b2-052c-4475-853a-e108419a36a7
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727849.0
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2018-08-30 00:00:00 UTC
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Why Cronos Group Shares Are Plunging Today
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DEO
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https://www.nasdaq.com/articles/why-cronos-group-shares-are-plunging-today-2018-08-30
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nan
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nan
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What happened
Shares of Cronos Group (NASDAQ: CRON) were down 29.8% as of 3:30 p.m. EDT on Thursday. The big decline came after noted short-seller Andrew Left's Citron Research warned about "hype vs. reality" with the marijuana stock.
Citron Research published an online report titled Cronos: The Dark Side of the Cannabis Space. It alleged that Cronos Group's management has been "deceiving the investing public" by not disclosing the size of its supply agreements with Canadian provinces.
The Citron report also criticized Cronos on several other fronts. It stated that Cronos underperformed all of its major rivals in revenue in its last quarter and spent little on research and development (R&D). Citron also pointed out the company's contamination issues in the past and raised doubts about Cronos' international strategy.
Because of these issues, Citron expressed skepticism that British alcoholic beverage maker Diageo (NYSE: DEO) would consider Cronos Group as a cannabis partner. Cronos stock has soared recently in part due to investors' anticipation that the company would be on Diageo's short list of prospective partners.
So what
Investors need to keep today's drop in perspective. Cronos Group stock is still up more than 40% in just the past month despite the fallout from the Citron Research report.
There is some truth to the points raised by Citron. Unlike several of its peers, Cronos Group has not disclosed the size of its supply agreements with Canadian provinces. However, referring to this omission as "deceiving the investing public" is a stretch.
Cronos did have some contamination issues with its cannabis products in 2017. But so did one other Canadian marijuana grower. The company appears to have resolved those issues.
Is Cronos Group's revenue less than several other Canadian marijuana growers? Yep. But it's also increasing it faster than many of them, too. And while the company isn't investing much in R&D, that's not exactly a major problem at this point.
There are two issues raised by Citron Research that I think are more relevant to Cronos Group's future. Questions about its international strategy and its likelihood of being selected as a partner by Diageo or another major company are valid, in my opinion.
Cronos claims a major partnership with German pharmaceutical distributor Pohl-Boskamp and a joint venture in Australia, and it recently teamed up with Delfarma to enter the medical cannabis market in Poland. Despite all of these efforts, I do think it's possible that Cronos could get left behind to some extent in the global cannabis market.
As for a Diageo partnership, my hunch is that there are candidates higher on the list for the big beverage company. With much of Cronos Group's recent gains fueled by speculation that it could be picked by Diageo, a sell-off is probably warranted.
Now what
Citron Research's track record is mixed at best. Investors shouldn't panic just because Citron raised issues about Cronos, none of which are secrets to anyone who follows the marijuana grower.
However, questioning whether or not a stock has shot up too much is a good thing to do. Cronos Group's market cap hinges on an extraordinary level of growth. It will no doubt see tremendous growth when Canada's recreational market opens in October. I'm not sure, though, that the growth will be enough to justify the stock's current valuation.
I don't think Cronos is, as Citron alleges, deceiving investors. But investors shouldn't deceive themselves that the path forward for Cronos Group will be easy and that the momentum from the last month is sustainable.
10 stocks we like better than Cronos Group Inc.
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Cronos Group Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Keith Speights 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.
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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Because of these issues, Citron expressed skepticism that British alcoholic beverage maker Diageo (NYSE: DEO) would consider Cronos Group as a cannabis partner. Cronos stock has soared recently in part due to investors' anticipation that the company would be on Diageo's short list of prospective partners. Cronos claims a major partnership with German pharmaceutical distributor Pohl-Boskamp and a joint venture in Australia, and it recently teamed up with Delfarma to enter the medical cannabis market in Poland.
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Because of these issues, Citron expressed skepticism that British alcoholic beverage maker Diageo (NYSE: DEO) would consider Cronos Group as a cannabis partner. It alleged that Cronos Group's management has been "deceiving the investing public" by not disclosing the size of its supply agreements with Canadian provinces. Citron also pointed out the company's contamination issues in the past and raised doubts about Cronos' international strategy.
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Because of these issues, Citron expressed skepticism that British alcoholic beverage maker Diageo (NYSE: DEO) would consider Cronos Group as a cannabis partner. Cronos Group stock is still up more than 40% in just the past month despite the fallout from the Citron Research report. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Cronos Group Inc. wasn't one of them!
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Because of these issues, Citron expressed skepticism that British alcoholic beverage maker Diageo (NYSE: DEO) would consider Cronos Group as a cannabis partner. And while the company isn't investing much in R&D, that's not exactly a major problem at this point. Questions about its international strategy and its likelihood of being selected as a partner by Diageo or another major company are valid, in my opinion.
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5dd604b4-168f-4dc9-8ca2-5c8e6771fedb
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727850.0
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2018-08-29 00:00:00 UTC
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Why Cronos Group Inc. Stock Is Jumping Again Today
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DEO
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https://www.nasdaq.com/articles/why-cronos-group-inc-stock-jumping-again-today-2018-08-29
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nan
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nan
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What happened
Shares of Cronos Group Inc. (NASDAQ: CRON) were up 12.5% as of 12:20 p.m. EDT on Wednesday. The Canadian marijuana grower announced earlier in the day that it was establishing a joint venture to enter the Latin American medical cannabis market.
Cronos stated in a press release that it had entered into an agreement with an affiliate of Agroidea SAS to form NatuEra, a 50/50 joint venture that will cultivate cannabis in Colombia. Agroidea is one of the top agricultural-services providers in Colombia. NatuEra will target the expanding medical cannabis markets in Latin America and potentially export to other global cannabis markets in the future.
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What happened Shares of Cronos Group Inc. (NASDAQ: CRON) were up 12.5% as of 12:20 p.m. EDT on Wednesday. The Canadian marijuana grower announced earlier in the day that it was establishing a joint venture to enter the Latin American medical cannabis market. Cronos stated in a press release that it had entered into an agreement with an affiliate of Agroidea SAS to form NatuEra, a 50/50 joint venture that will cultivate cannabis in Colombia.
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The Canadian marijuana grower announced earlier in the day that it was establishing a joint venture to enter the Latin American medical cannabis market. Cronos stated in a press release that it had entered into an agreement with an affiliate of Agroidea SAS to form NatuEra, a 50/50 joint venture that will cultivate cannabis in Colombia. NatuEra will target the expanding medical cannabis markets in Latin America and potentially export to other global cannabis markets in the future.
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The Canadian marijuana grower announced earlier in the day that it was establishing a joint venture to enter the Latin American medical cannabis market. Cronos stated in a press release that it had entered into an agreement with an affiliate of Agroidea SAS to form NatuEra, a 50/50 joint venture that will cultivate cannabis in Colombia. NatuEra will target the expanding medical cannabis markets in Latin America and potentially export to other global cannabis markets in the future.
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What happened Shares of Cronos Group Inc. (NASDAQ: CRON) were up 12.5% as of 12:20 p.m. EDT on Wednesday. The Canadian marijuana grower announced earlier in the day that it was establishing a joint venture to enter the Latin American medical cannabis market. Cronos stated in a press release that it had entered into an agreement with an affiliate of Agroidea SAS to form NatuEra, a 50/50 joint venture that will cultivate cannabis in Colombia.
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b36d3d46-71ae-43ce-bbcf-40cf3cf6d466
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727851.0
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2018-08-28 00:00:00 UTC
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Profit From Cronos Group Stock After Its Latest Reality Check
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DEO
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https://www.nasdaq.com/articles/profit-cronos-group-stock-after-its-latest-reality-check-2018-08-28
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Shares of cannabis company Cronos Group (NASDAQ: CRON ) have been on an absolute moonshot over the past two weeks. CRON stock has risen 113% in the past nine trading days since reporting earnings, or lack thereof, on Aug. 14.
The market cap for Cronos is now over $2 billion for a company that generated $3.4 million in revenues last quarter. Pricey is an understatement. Look for reality to set in and CRON to pullback over the coming weeks.
The major impetus behind the red-hot rally was news that Constellation Brands (NYSE: STZ ) had taken a 4 billion dollar stake in fellow cannabis competitor Canopy Growth (NYSE: CGC ). This news sent CGC and other marijuana stocks, including CRON, soaring. The latest rumors of Diageo (NYSE: DEO ) looking to enter the space only served to add fuel to the fire.
So while Canopy Growth has an actual deal on the table, CRON stock is trading like a deal is already done for them as well. CRON has traded stride for stride with CGC as the comparison chart shows. If no deal is announced for Cronos, look for shares to retrace much of the recent gains.
To say that CRON stock is getting overbought in an understatement. Its 9-day-RSI just breached the 90 level for just the second time ever. The first instance marked a significant short-term top in the stock.
5 Marijuana Stocks to Watch
Its MACD is at the highest readings ever, another sign of euphoria. Yesterday's price action, with CRON stock reversing after trading up to new all-time highs at $12.89, is further indication that the buyers may be getting exhausted. This type of parabolic price action never seems to end well.
Implied volatility in CRON options is at extremes as well, trading at the 100th percentile. This means option prices have never been more expensive, favoring incorporating option selling when structuring trades. So to position for a pullback in CRON stock, a put diagonal spread is an effective way to take a bearish stance with defined risk.
CRON Stock Trade Idea
Buy the CRON Oct $12.50 put and the sell CRON Sep $10 put for a $2.00 net debit
Maximum risk on the trade is $200-per-spread. Ideally, CRON stock closes near $10 on September expiration to realize the maximum potential gain. The spread is 16 deltas net short at inception, which equates to being short 16 shares of CRON stock.
Tim may hold some of the aforementioned securities in one or more of his newsletters. Anyone interested in finding out more about Tim and his option-based strategies can go to https://marketfy.com/item/options-and-volatility .
More From InvestorPlace
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5 Marijuana Stocks to Watch
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Compare Brokers
The post Profit From Cronos Group Stock After Its Latest Reality Check 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.
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 latest rumors of Diageo (NYSE: DEO ) looking to enter the space only served to add fuel to the fire. Yesterday's price action, with CRON stock reversing after trading up to new all-time highs at $12.89, is further indication that the buyers may be getting exhausted. So to position for a pullback in CRON stock, a put diagonal spread is an effective way to take a bearish stance with defined risk.
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The latest rumors of Diageo (NYSE: DEO ) looking to enter the space only served to add fuel to the fire. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of cannabis company Cronos Group (NASDAQ: CRON ) have been on an absolute moonshot over the past two weeks. CRON Stock Trade Idea Buy the CRON Oct $12.50 put and the sell CRON Sep $10 put for a $2.00 net debit Maximum risk on the trade is $200-per-spread.
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The latest rumors of Diageo (NYSE: DEO ) looking to enter the space only served to add fuel to the fire. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of cannabis company Cronos Group (NASDAQ: CRON ) have been on an absolute moonshot over the past two weeks. CRON Stock Trade Idea Buy the CRON Oct $12.50 put and the sell CRON Sep $10 put for a $2.00 net debit Maximum risk on the trade is $200-per-spread.
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The latest rumors of Diageo (NYSE: DEO ) looking to enter the space only served to add fuel to the fire. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of cannabis company Cronos Group (NASDAQ: CRON ) have been on an absolute moonshot over the past two weeks. The major impetus behind the red-hot rally was news that Constellation Brands (NYSE: STZ ) had taken a 4 billion dollar stake in fellow cannabis competitor Canopy Growth (NYSE: CGC ).
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74ec1037-9d5b-4a71-a97c-e6564ad61205
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727852.0
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2018-08-28 00:00:00 UTC
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Which Marijuana Partner Will Diageo Pick? Here Are 3 Top Candidates
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DEO
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https://www.nasdaq.com/articles/which-marijuana-partner-will-diageo-pick-here-are-3-top-candidates-2018-08-28
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nan
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nan
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Get ready for round three of the dating game. Constellation Brandschose Canopy Growth as its cannabis partner . Molson Coors Brewingselected The Hydropothecary . Now it looks like another major alcoholic beverage company is in search of a Canadian marijuana partner.
BNN Bloomberg reported late last week that U.K.-based beverage company Diageo plc (NYSE: DEO) , the maker of Guinness beer and Smirnoff vodka, has been in talks with at least three Canadian marijuana growers. No firm details are available at this point. However, several stocks of cannabis producers have soared on speculation that they could be the next to snag a deal.
Which marijuana partner will Diageo actually pick? There's no way to know for sure. My view, though, is that the top three candidates the company should be looking at closely are Aphria (NASDAQOTH: APHQF) , Tilray (NASDAQ: TLRY) , and Aurora Cannabis (NASDAQOTH: ACBFF) . Here's why.
1. Aphria
Over a week ago, I ranked Aphria as No. 3 on the list to follow in Canopy Growth's footsteps in partnering with a major alcoholic beverage maker. But I have Aphria at the top of the list now. What changed? For one thing, my previous ranking was based on market reaction. More importantly, though, we now know which beverage company is likely to be the next to make a deal.
There are two advantages that I think work in Aphria's favor. One is that Diageo would get a lot of bang for its buck by investing in the company. Aphria's market cap of $2.7 billion is well below the market caps of my other top three candidates. The company expects to have an annual production capacity of 225,000 kilograms by early 2019. Aphria claims a better price per kilogram of capacity than many of its peers.
The other advantage for Aphria is its connection with Diageo. Aphria chief commercial officer Jakob Ripshtein worked with Diageo for 10 years prior to joining Aphria earlier in 2018, serving as president of Diageo Canada for a couple of years prior to joining Aphria. You'd have to think that Ripshtein's relationship with the Diageo management team would help Aphria in partnership discussions.
2. Tilray
Investors have driven Tilray's stock up 84% following the announcement of the Constellation-Canopy deal. My view is that these gains are largely due to the expectation that Tilray will be a top contender for partnering with a beverage company.
Don't underestimate the importance of Tilray's listing on the Nasdaq stock exchange . I think Constellation's $4 billion investment in Canopy caused many U.S. investors who had been on the sidelines with cannabis stocks to pay attention. Other than Canopy, Tilray and Cronos Group (NASDAQ: CRON) are the only Canadian marijuana producers listed on U.S. stock exchanges. Tilray was a natural stock for U.S. investors to buy. Diageo's management could also prefer to invest in a partner that is already listed on a U.S. stock exchange.
With Tilray, Diageo would get a collaborator with a solid production capacity, who has recreational cannabis supply agreements lined up with several provinces and territories, and who boasts an established international presence -- including a production facility in Portugal.
3. Aurora Cannabis
Aurora Cannabis doesn't have the personal connection with Diageo that Aphria does. It's not listed on a U.S. stock exchange like Tilray is. So, why do I rank Aurora No. 3 on the list of potential partner candidates for Diageo? Capacity, global operations, and vision.
Aurora's total funded annual production capacity tops 570,000 kilograms. And that doesn't include anticipated additional capacity from its stake in The Green Organic Dutchman . Granted, Aurora won't have the full capacity until late 2019, but the company should be able to produce at least 175,000 kilograms per year at the beginning of next year -- a much higher number than most of its peers.
Like both Aphria and Tilray, Aurora claims a strong presence in global medical cannabis markets. The company's Pedanios subsidiary gives it a great foothold in Germany as well as a launching pad for other European markets. I also suspect that Aurora's vision of where the industry is going, especially with cannabis-infused beverages, could align well with what Diageo is looking for.
Other notable candidates
There are two other candidates for Diageo that I think are particularly noteworthy. Cronos Group's share price has soared more than others' since Constellation's investment in Canopy Growth was announced. Its market cap of around $2.1 billion would make a sizable investment more affordable than my top three candidates. However, Cronos' production capacity isn't as great as those of the others mentioned.
It's also possible that Diageo could emulate Molson Coors and go with a smaller partner with a less integrated relationship like the one between Constellation and Canopy. If that's the direction taken, I think Organigram Holdings (NASDAQOTH: OGRMF) could be a dark-horse candidate. Organigram's market cap is only around $560 million: not a bad price tag, relatively speaking, for a company with projected annual capacity of 113,000 kilograms by 2020.
Remember that, for now, we only have a rumor of a deal. Diageo could decide to do nothing. My hunch is that we will see an announcement in the not-too-distant future, though. I think there's a really good chance that Aphria, Tilray, or Aurora Cannabis could wind up as Diageo's cannabis partner. And I don't think this will be the last big agreement between an alcoholic beverage company and a Canadian cannabis producer.
10 stocks we like better than Diageo
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Diageo wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Keith Speights has no position in any of the stocks mentioned. The Motley Fool owns shares of Molson Coors Brewing. The Motley Fool recommends Diageo and Nasdaq. 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.
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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BNN Bloomberg reported late last week that U.K.-based beverage company Diageo plc (NYSE: DEO) , the maker of Guinness beer and Smirnoff vodka, has been in talks with at least three Canadian marijuana growers. Other than Canopy, Tilray and Cronos Group (NASDAQ: CRON) are the only Canadian marijuana producers listed on U.S. stock exchanges. Organigram's market cap is only around $560 million: not a bad price tag, relatively speaking, for a company with projected annual capacity of 113,000 kilograms by 2020.
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BNN Bloomberg reported late last week that U.K.-based beverage company Diageo plc (NYSE: DEO) , the maker of Guinness beer and Smirnoff vodka, has been in talks with at least three Canadian marijuana growers. My view, though, is that the top three candidates the company should be looking at closely are Aphria (NASDAQOTH: APHQF) , Tilray (NASDAQ: TLRY) , and Aurora Cannabis (NASDAQOTH: ACBFF) . Other than Canopy, Tilray and Cronos Group (NASDAQ: CRON) are the only Canadian marijuana producers listed on U.S. stock exchanges.
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BNN Bloomberg reported late last week that U.K.-based beverage company Diageo plc (NYSE: DEO) , the maker of Guinness beer and Smirnoff vodka, has been in talks with at least three Canadian marijuana growers. Aphria chief commercial officer Jakob Ripshtein worked with Diageo for 10 years prior to joining Aphria earlier in 2018, serving as president of Diageo Canada for a couple of years prior to joining Aphria. Aurora Cannabis Aurora Cannabis doesn't have the personal connection with Diageo that Aphria does.
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BNN Bloomberg reported late last week that U.K.-based beverage company Diageo plc (NYSE: DEO) , the maker of Guinness beer and Smirnoff vodka, has been in talks with at least three Canadian marijuana growers. My view, though, is that the top three candidates the company should be looking at closely are Aphria (NASDAQOTH: APHQF) , Tilray (NASDAQ: TLRY) , and Aurora Cannabis (NASDAQOTH: ACBFF) . Aphria's market cap of $2.7 billion is well below the market caps of my other top three candidates.
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16e4fc00-eaf8-47fd-98b7-5f5025d90ee1
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727853.0
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2018-08-27 00:00:00 UTC
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Pot Stocks Are on a High: Play These Cannabis ETFs
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DEO
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https://www.nasdaq.com/articles/pot-stocks-are-high-play-these-cannabis-etfs-2018-08-27
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nan
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nan
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After Constellation BrandsSTZ , it's Diageo plcDEO , which is taking keen interest in the Canadian cannabis industry. In mid-August, U.S.-based Constellation Brands - a leading producer and marketer of beverage alcohol brands - announced its decision to expand its stake in the biggest listed cannabis company Canopy Growth CorporationCGC to 38% from the initial 9.9% acquired in November 2017 (read: Follow Constellation Brands, Bet Big on Cannabis ETFs ).
A few days later, on Aug 24, there was news that the U.K.-based liquor maker Diageo Plc will indulge in discussion with at least three Canadian cannabis companies to buy a stake or form a partnership with one of them.
Investors should also note that earlier this month, the Canadian arm of Molson Coors Brewing Co. and Quebec-based pot producer Hydropothecary Corp. announced their plan to make non-alcoholic, cannabis-infused beverages, as beer sales slowed down in North America.
Canada's pending legalization of recreational marijuana from Oct 17, 2018 has fetched a great deal of interest from the alcoholic drinks' industry. The move made Canada the second country in the world to legalize the drug for both medical and recreational use, trailing Uruguay, and the first country among G-7 nations. However, edible pot products will remain illegal till 2019 at the earliest (read: Canada Legalizes Marijuana: Two ETFs to Tap the Boom ).
Such a binge in interests sent pot stocks on cloud nine of late. Canopy Growth added about 8.4% on Aug 24 and skyrocketed about 75% in the past month (as of Aug 24, 2018). Other companies in the industry like Aurora Cannabis Inc.ACBFF added 7.5% on Aug 24 and gained about 23.9% in a month. Aphria Inc.APHQF advanced about 23% on Aug 24 and shot up more than 34% in a month. Cronos Group Inc.CRON jumped 16.3% on Aug 24 and tacked on 58% gains in the past month.
Inside the Growing Potential of the Cannabis-Infused Beverage Industry
Cannabis is getting official approval from many U.S. states for recreational uses, on top of medical usage. Legal marijuana sales have probably surged 33% to $10 billion in 2017, after a 34% jump in 2016, according to cannabis research firm ArcView .
Per an article published on Bloomberg, marijuana and alcohol industries are gradually becoming a one-stop destination for recreation. Dan O'Neill, the former CEO of Molson Coors for nearly a decade, told Marijuana Business Daily last year that all alcohol companies will have to join in the cannabis industry one day. O'Neill who is in the board of CannaRoyalty, a North American cannabis consumer product company, believes that cannabis companies (once legalized fully in the United States) can see as huge growth as "alcohol after prohibition ended", per the source.
The growth of cannabis is apparently gaining attention worldwide. For example, Canopy's cannabis sales in Germany made up 14% of product revenue s in the first quarter of fiscal 2019 against 2% in the year-ago quarter. Per BDS Analytics and Arcview Market Research, total U.S. economic output from legal cannabis will surge 150 % from $16 billion in 2017 to $40 billion by 2021. Six of the U.S. states - California, Colorado, Massachusetts, Nevada, Oregon and Washington - will reap the maximum benefit (more than 60% in 2021) from the first-mover advantage of the legal adult-use enactment, per the market researchers.
ETFs to Tap
ETFMG Alternative Harvest ETF MJ
This is the first and only ETF targeting the cannabis/marijuana industry. It tracks the Prime Alternative Harvest Index, designed to measure the performance of companies within the cannabis ecosystem, benefiting from global medicinal and recreational cannabis legalization initiatives. The fund holds 38 securities in its basket, with each holding less than 10.94% share. Canopy Growth is the top stock of the fund, followed by Cronos Group and Aurora Cannabis. Canadian firms make up 61% of the portfolio, while American firms comprise just 21%. The ETF has amassed $425 million in its asset base so far and trades in a heavy volume of more than 1.5 million shares. It charges 75 bps in annual fees.
AdvisorShares VICE ETF ACT
Another way to play the upcoming boom in the marijuana industry is with ACT. It not only targets the cannabis industry but also offers concentrated exposure to "vices" including alcohol and tobacco. The fund invests in companies that derive at least 50% of their net revenues from the marijuana and hemp industry or have at least 50% of their company assets dedicated to lawful research and development of cannabis or cannabinoid-related products (read: 8 New ETFs of 2017 to Explode in 2018 ).
Specifically, the fund has 18% exposure to cannabis-related companies. It is an actively managed fund and has attracted $13 million in AUM since its debut in mid-December. The ETF has 0.75% in expense ratio.
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Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
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Constellation Brands Inc (STZ): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
Canopy Growth Corporation (CGC): Free Stock Analysis Report
Cronos Group Inc. (CRON): Free Stock Analysis Report
ADVSR-VICE ETF (ACT): ETF Research Reports
ETFMG-ALT HRVST (MJ): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After Constellation BrandsSTZ , it's Diageo plcDEO , which is taking keen interest in the Canadian cannabis industry. Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Canopy Growth Corporation (CGC): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report ADVSR-VICE ETF (ACT): ETF Research Reports ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. Investors should also note that earlier this month, the Canadian arm of Molson Coors Brewing Co. and Quebec-based pot producer Hydropothecary Corp. announced their plan to make non-alcoholic, cannabis-infused beverages, as beer sales slowed down in North America.
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Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Canopy Growth Corporation (CGC): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report ADVSR-VICE ETF (ACT): ETF Research Reports ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. After Constellation BrandsSTZ , it's Diageo plcDEO , which is taking keen interest in the Canadian cannabis industry. In mid-August, U.S.-based Constellation Brands - a leading producer and marketer of beverage alcohol brands - announced its decision to expand its stake in the biggest listed cannabis company Canopy Growth CorporationCGC to 38% from the initial 9.9% acquired in November 2017 (read: Follow Constellation Brands, Bet Big on Cannabis ETFs ).
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Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Canopy Growth Corporation (CGC): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report ADVSR-VICE ETF (ACT): ETF Research Reports ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. After Constellation BrandsSTZ , it's Diageo plcDEO , which is taking keen interest in the Canadian cannabis industry. In mid-August, U.S.-based Constellation Brands - a leading producer and marketer of beverage alcohol brands - announced its decision to expand its stake in the biggest listed cannabis company Canopy Growth CorporationCGC to 38% from the initial 9.9% acquired in November 2017 (read: Follow Constellation Brands, Bet Big on Cannabis ETFs ).
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After Constellation BrandsSTZ , it's Diageo plcDEO , which is taking keen interest in the Canadian cannabis industry. Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Canopy Growth Corporation (CGC): Free Stock Analysis Report Cronos Group Inc. (CRON): Free Stock Analysis Report ADVSR-VICE ETF (ACT): ETF Research Reports ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. ETFs to Tap ETFMG Alternative Harvest ETF MJ This is the first and only ETF targeting the cannabis/marijuana industry.
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148b1b6b-9c5b-4b9c-8ee7-162219e3ccba
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727854.0
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2018-08-27 00:00:00 UTC
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Why Marijuana Stocks Aphria, Cronos Group, and Tilray Are Surging Again Today
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DEO
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https://www.nasdaq.com/articles/why-marijuana-stocks-aphria-cronos-group-and-tilray-are-surging-again-today-2018-08-27
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nan
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nan
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What happened
Shares of Aphria (NASDAQOTH: APHQF) , Cronos Group (NASDAQ: CRON) , and Tilray (NASDAQ: TLRY) were up 13.7%, 20.3%, and 19.7%, respectively, as of 11:54 a.m. Monday. All three stocks received a boost as investors anticipated that they could be prime candidates for a deal with British alcoholic beverage maker Diageo (NYSE: DEO) , known for its products such as Crown Royal whisky and Guinness beer.
On Friday, BNN Bloomberg reported that Diageo was in discussions with at least three Canadian marijuana growers. Aphria, Cronos Group, and Tilray weren't specifically mentioned as candidates, but the stocks have been trending steadily upward since Canopy Growthannounced a $4 billion investment from Constellation Brands on Aug. 15, 2018.
So what
Rumors of potential deals come and go. However, it makes sense that Diageo would be seriously looking to team up with a major Canadian cannabis producer. The cannabis-infused beverage market could be a big opportunity, as evidenced by Constellation Brands's eagerness to fork over billions of dollars to Canopy Growth.
The problem for investors, though, is that it's impossible to know if a deal will happen, when a deal will happen, and (most important) with which company Diageo would partner. As for when an agreement could be finalized, BNN Bloomberg's report cited one source who said that it "may take months," while another stated that a deal could be more imminent. In other words, there's no clarity whatsoever.
Which Canadian marijuana grower is most likely to impress Diageo? Again, it's hard to say. Aphria's chief commercial officer, Jakob Ripshtein, worked with Diageo from 2011 through April 2018. Ripshtein served as CFO of Diageo North America and president of Diageo Canada. Perhaps his connections with his former employer give Aphria an edge.
Cronos Group and Tilray also have plenty to offer, though. All three companies are currently leaders in the Canadian medical cannabis market. They all have significant production capacity as well. Aphria, Cronos, and Tilray also are competitive in international medical cannabis markets, notably including Germany.
Of course, Diageo could also be eyeing other candidates. Aurora Cannabis , for example, currently ranks second to Canopy Growth in terms of market cap. The company has already stated that it plans to develop cannabis-infused beverages.
Now what
Assuming Diageo does actually choose a cannabis partner, the details of any agreement will be important. If the company follows in the footsteps of Constellation Brands with a significant strategic partnership, it should provide a big boost for the share price of the marijuana grower it selects.
In the meantime, though, investors can only guess what will happen. It's better to make any buy decisions on the fundamentals and likely growth prospects for the companies outside of any potential agreements with a large third party.
It's also important to keep in mind that the valuations of Aphria, Cronos Group, and Tilray already reflect tremendous growth expectations. Each of these three companies has made well below $30 million over the last 12 months, yet all of them currently claim market caps of at least $2 billion. Canada's opening of its recreational marijuana market in October should fuel growth for all three companies, but there's a long way to go to justify current valuations for these stocks.
10 stocks we like better than Aphria Inc.
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Aphria Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Keith Speights 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.
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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All three stocks received a boost as investors anticipated that they could be prime candidates for a deal with British alcoholic beverage maker Diageo (NYSE: DEO) , known for its products such as Crown Royal whisky and Guinness beer. Aphria, Cronos Group, and Tilray weren't specifically mentioned as candidates, but the stocks have been trending steadily upward since Canopy Growthannounced a $4 billion investment from Constellation Brands on Aug. 15, 2018. If the company follows in the footsteps of Constellation Brands with a significant strategic partnership, it should provide a big boost for the share price of the marijuana grower it selects.
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All three stocks received a boost as investors anticipated that they could be prime candidates for a deal with British alcoholic beverage maker Diageo (NYSE: DEO) , known for its products such as Crown Royal whisky and Guinness beer. What happened Shares of Aphria (NASDAQOTH: APHQF) , Cronos Group (NASDAQ: CRON) , and Tilray (NASDAQ: TLRY) were up 13.7%, 20.3%, and 19.7%, respectively, as of 11:54 a.m. Monday. Aphria, Cronos Group, and Tilray weren't specifically mentioned as candidates, but the stocks have been trending steadily upward since Canopy Growthannounced a $4 billion investment from Constellation Brands on Aug. 15, 2018.
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All three stocks received a boost as investors anticipated that they could be prime candidates for a deal with British alcoholic beverage maker Diageo (NYSE: DEO) , known for its products such as Crown Royal whisky and Guinness beer. Aphria, Cronos Group, and Tilray weren't specifically mentioned as candidates, but the stocks have been trending steadily upward since Canopy Growthannounced a $4 billion investment from Constellation Brands on Aug. 15, 2018. The problem for investors, though, is that it's impossible to know if a deal will happen, when a deal will happen, and (most important) with which company Diageo would partner.
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All three stocks received a boost as investors anticipated that they could be prime candidates for a deal with British alcoholic beverage maker Diageo (NYSE: DEO) , known for its products such as Crown Royal whisky and Guinness beer. What happened Shares of Aphria (NASDAQOTH: APHQF) , Cronos Group (NASDAQ: CRON) , and Tilray (NASDAQ: TLRY) were up 13.7%, 20.3%, and 19.7%, respectively, as of 11:54 a.m. Monday. Aphria, Cronos Group, and Tilray weren't specifically mentioned as candidates, but the stocks have been trending steadily upward since Canopy Growthannounced a $4 billion investment from Constellation Brands on Aug. 15, 2018.
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bd203c6e-7cf4-48c1-8fac-faca60c5a1a1
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727855.0
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2018-08-24 00:00:00 UTC
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Consumer Sector Update for 08/24/2018: CGC,DEO,AMMA,NWY,IFMK,TAP,STZ
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DEO
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https://www.nasdaq.com/articles/consumer-sector-update-08242018-cgcdeoammanwyifmktapstz-2018-08-24
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nan
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nan
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Top Consumer Stocks
WMT -0.02%
MCD +0.26%
DIS 0.00%
CVS +0.53%
KO -0.03%
Consumer stocks have turned mixed in late trade, with shares of consumer staples companies in the S&P 500 posting a 0.1% decline this afternoon, reversing a small gain earlier, while shares of consumer discretionary firms in the S&P 500 were climbing just more than 0.6%.
Among consumer stocks moving on news:
+ Canopy Growth Corp ( CGC ) jumped to a new record high on Friday, rising almost 11% to a best-ever $45.92 a share, after Diageo Plc ( DEO ) told BNN Blooberg it was holding "serious discussions" with at least three Canadian cannabis producers in a bid to add marijuana-infused beverages to its product portfolio. Along with Diageo - the world's largest alcohol company - several other beverage companies including Molson Coors Brewing ( TAP ) and Constellation Brands ( STZ ) have been similarly exploring potential deals with pot producer as part of efforts to bolster flat sales.
In other sector news:
+ Alliance MMA ( AMMA ) almost tripled in price on Friday, rising 189% and topping out at 58 cents apiece, after the mixed martial arts promotions company agreed to a reverse stock swap with privately held SCWorx, which will hold an 80% majority stake in the combined companies. SCWorx produces advanced software that helps health care providers manage their businesses.
+ New York & Company (NWY) was back near its session high Friday afternoon, retracing most of a 7% advance soon after the opening bell after the apparel retailer reported above-consensus GAAP and adjusted Q2 net income.
+ iFresh (IFMK) jumped to a nearly 14% gain soon after Friday's opening bell after the Asian-American supermarket chain said it was acquiring a 70% ownership stake in Vero Beach, Fla-based Dragon Seeds, a farm specializing in Mibao dragon fruit and majority owned by iFresh CEO and board chairman Long Deng. Final terms of the cash-and-stock transaction will require approval by the iFresh board audit committee and will be determined once due diligence is completed.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
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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Among consumer stocks moving on news: + Canopy Growth Corp ( CGC ) jumped to a new record high on Friday, rising almost 11% to a best-ever $45.92 a share, after Diageo Plc ( DEO ) told BNN Blooberg it was holding "serious discussions" with at least three Canadian cannabis producers in a bid to add marijuana-infused beverages to its product portfolio. + New York & Company (NWY) was back near its session high Friday afternoon, retracing most of a 7% advance soon after the opening bell after the apparel retailer reported above-consensus GAAP and adjusted Q2 net income. Final terms of the cash-and-stock transaction will require approval by the iFresh board audit committee and will be determined once due diligence is completed.
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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. Among consumer stocks moving on news: + Canopy Growth Corp ( CGC ) jumped to a new record high on Friday, rising almost 11% to a best-ever $45.92 a share, after Diageo Plc ( DEO ) told BNN Blooberg it was holding "serious discussions" with at least three Canadian cannabis producers in a bid to add marijuana-infused beverages to its product portfolio. Top Consumer Stocks
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Among consumer stocks moving on news: + Canopy Growth Corp ( CGC ) jumped to a new record high on Friday, rising almost 11% to a best-ever $45.92 a share, after Diageo Plc ( DEO ) told BNN Blooberg it was holding "serious discussions" with at least three Canadian cannabis producers in a bid to add marijuana-infused beverages to its product portfolio. Consumer stocks have turned mixed in late trade, with shares of consumer staples companies in the S&P 500 posting a 0.1% decline this afternoon, reversing a small gain earlier, while shares of consumer discretionary firms in the S&P 500 were climbing just more than 0.6%. In other sector news: + Alliance MMA ( AMMA ) almost tripled in price on Friday, rising 189% and topping out at 58 cents apiece, after the mixed martial arts promotions company agreed to a reverse stock swap with privately held SCWorx, which will hold an 80% majority stake in the combined companies.
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Among consumer stocks moving on news: + Canopy Growth Corp ( CGC ) jumped to a new record high on Friday, rising almost 11% to a best-ever $45.92 a share, after Diageo Plc ( DEO ) told BNN Blooberg it was holding "serious discussions" with at least three Canadian cannabis producers in a bid to add marijuana-infused beverages to its product portfolio. Top Consumer Stocks Along with Diageo - the world's largest alcohol company - several other beverage companies including Molson Coors Brewing ( TAP ) and Constellation Brands ( STZ ) have been similarly exploring potential deals with pot producer as part of efforts to bolster flat sales.
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1cc5c42d-dcb9-4aa1-972c-c692e1ddc6b4
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727856.0
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2018-08-15 00:00:00 UTC
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DEO Makes Notable Cross Below Critical Moving Average
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DEO
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https://www.nasdaq.com/articles/deo-makes-notable-cross-below-critical-moving-average-2018-08-15
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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 $141.60, changing hands as low as $139.73 per share. Diageo plc shares are currently trading off 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 $129.99 per share, with $151.305 as the 52 week high point - that compares with a last trade of $140.12.
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.
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 $141.60, changing hands as low as $139.73 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 $129.99 per share, with $151.305 as the 52 week high point - that compares with a last trade of $140.12. 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 $141.60, changing hands as low as $139.73 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 $129.99 per share, with $151.305 as the 52 week high point - that compares with a last trade of $140.12. 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 $141.60, changing hands as low as $139.73 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 $129.99 per share, with $151.305 as the 52 week high point - that compares with a last trade of $140.12. 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 $141.60, changing hands as low as $139.73 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 $129.99 per share, with $151.305 as the 52 week high point - that compares with a last trade of $140.12. 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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6d7d12f1-4843-49c6-82eb-fa4deba0872f
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727857.0
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2018-08-08 00:00:00 UTC
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Diageo plc (DEO) Ex-Dividend Date Scheduled for August 09, 2018
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DEO
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https://www.nasdaq.com/articles/diageo-plc-deo-ex-dividend-date-scheduled-august-09-2018-2018-08-08
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nan
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nan
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Diageo plc ( DEO ) will begin trading ex-dividend on August 09, 2018. A cash dividend payment of $2.12 per share is scheduled to be paid on October 10, 2018. Shareholders who purchased DEO prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 52.52% increase over prior dividend payment.
The previous trading day's last sale of DEO was $146.17, representing a -3.39% decrease from the 52 week high of $151.31 and a 13.48% increase over the 52 week low of $128.81.
DEO is a part of the Consumer Non-Durables sector, which includes companies such as Coca-Cola Company ( KO ) and Anheuser-Busch Inbev SA ( BUD ). Zacks Investment Research reports DEO's forecasted earnings growth in 2018 as 10.51%, compared to an industry average of 12.3%.
For more information on the declaration, record and payment dates, visit the DEO Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
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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Shareholders who purchased DEO prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports DEO's forecasted earnings growth in 2018 as 10.51%, compared to an industry average of 12.3%. For more information on the declaration, record and payment dates, visit the DEO Dividend History page.
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Shareholders who purchased DEO prior to the ex-dividend date are eligible for the cash dividend payment. Diageo plc ( DEO ) will begin trading ex-dividend on August 09, 2018. The previous trading day's last sale of DEO was $146.17, representing a -3.39% decrease from the 52 week high of $151.31 and a 13.48% increase over the 52 week low of $128.81.
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Shareholders who purchased DEO prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of DEO was $146.17, representing a -3.39% decrease from the 52 week high of $151.31 and a 13.48% increase over the 52 week low of $128.81. For more information on the declaration, record and payment dates, visit the DEO Dividend History page.
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Diageo plc ( DEO ) will begin trading ex-dividend on August 09, 2018. Shareholders who purchased DEO prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of DEO was $146.17, representing a -3.39% decrease from the 52 week high of $151.31 and a 13.48% increase over the 52 week low of $128.81.
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21230d35-fee0-461b-af5a-db23129fa50f
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727858.0
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2018-08-02 00:00:00 UTC
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Tequila Continues to Drive Diageo PLC's Growth
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DEO
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https://www.nasdaq.com/articles/tequila-continues-drive-diageo-plcs-growth-2018-08-02
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nan
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nan
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Diageo PLC (NYSE: DEO) continues to be one of the strongest spirits companies in the world, riding the wave of popular liquors all around the globe. For years, the company relied on scotch to drive sales increases, but in its recently completed fiscal 2018, it was gin and tequila that saw the growth.
Here's a look at the overall numbers and some detail on what drove Diageo's earnings growth over the past year.
Diageo PLC results: The raw numbers
Conversion rate of 1.30 GBP to 1.0 USD. Data source: Diageo PLC 2018 earnings release.
What happened with Diageo PLC this quarter?
The 1% sales growth figure doesn't tell the story of how strongly Diageo performed in 2018. Here's where volume and prices shined over the past year:
Organic net sales growth was 5%, but that was offset almost entirely by a negative exchange rate. The company said 2.5% of the organic growth was from volume and 2.5% was from price and mix improvement .
Operating margin increased from 29.5% to 30.3% in 2018 on the back of lower operating costs and lower costs from exchange rates (which has a positive impact on costs).
On an organic basis at Diageo, Latin America and the Caribbean had 5% volume growth and 7% net sales growth in 2018. Asia-Pacific volume increased 2%, but net sales jumped 9% during the year.
In North America -- Diageo's largest segment, with 34% of sales -- tequila continues to be a strength, with Don Julio organic volume up 36% and net sales soaring 30%. Vodka struggled during 2018, with Ciroc organic sales down 4% and Ketel One decreasing 2%.
Globally, tequila is the best spirit for Diageo, with 35% volume organic growth and a 56% increase in reported sales , including acquisitions . Gin was also strong, posting 17% organic volume growth and 14% reported sales growth. Scotch, which has led the company's growth for years, had just 3% volume growth and a 1% increase in reported sales.
Free cash flow for the year was GBP 2.52 billion ($3.29 billion), and GBP 1.51 billion ($1.97 billion) of that was returned to shareholders in the form of share buybacks and another GBP 1.58 billion ($2.06 billion) was paid as dividends.
What management had to say
Diageo has adjusted its portfolio to gain exposure to growing trends, like the popularity of tequila, as evidenced by its acquisition of Casamigos last year. You can see in the results that owning a broad number of spirits and brands has helped the business overall. CEO Ivan Menezes said this about how the company sees the future: "Our financial performance expectations are unchanged and we expect to continue to invest in the business to deliver our mid-term guidance of consistent mid-single digit organic net sales growth and 175bps of organic operating margin expansion for the three years ending 30 June 2019."
The margin expansion will leverage sales growth and is what's helping drive a double-digit increase on the bottom line.
Looking forward
Spirit preferences have clearly changed recently, but that hasn't hurt Diageo's results and that's a testament to the business and how it's built to strategically benefit from all major markets. Looking forward, investors should anticipate continued steady growth and, if management is right, margin expansion. What I would watch is if prices continue to rise as consumers trend away from high-end scotch to tequila and gin, which can be at a lower price point. For now, the shift doesn't appear to be harming the business one bit.
10 stocks we like better than Diageo
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Diageo wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of June 4, 2018
Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.
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) continues to be one of the strongest spirits companies in the world, riding the wave of popular liquors all around the globe. What management had to say Diageo has adjusted its portfolio to gain exposure to growing trends, like the popularity of tequila, as evidenced by its acquisition of Casamigos last year. Looking forward Spirit preferences have clearly changed recently, but that hasn't hurt Diageo's results and that's a testament to the business and how it's built to strategically benefit from all major markets.
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Diageo PLC (NYSE: DEO) continues to be one of the strongest spirits companies in the world, riding the wave of popular liquors all around the globe. Here's where volume and prices shined over the past year: Organic net sales growth was 5%, but that was offset almost entirely by a negative exchange rate. Gin was also strong, posting 17% organic volume growth and 14% reported sales growth.
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Diageo PLC (NYSE: DEO) continues to be one of the strongest spirits companies in the world, riding the wave of popular liquors all around the globe. On an organic basis at Diageo, Latin America and the Caribbean had 5% volume growth and 7% net sales growth in 2018. Globally, tequila is the best spirit for Diageo, with 35% volume organic growth and a 56% increase in reported sales , including acquisitions .
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Diageo PLC (NYSE: DEO) continues to be one of the strongest spirits companies in the world, riding the wave of popular liquors all around the globe. Diageo PLC results: The raw numbers Conversion rate of 1.30 GBP to 1.0 USD. Here's where volume and prices shined over the past year: Organic net sales growth was 5%, but that was offset almost entirely by a negative exchange rate.
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727859.0
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2018-07-31 00:00:00 UTC
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Strong Organic Growth Drives Diageo's Impressive Performance In FY 2018
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DEO
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https://www.nasdaq.com/articles/strong-organic-growth-drives-diageos-impressive-performance-fy-2018-2018-07-31
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nan
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nan
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Despite missing the consensus expectation on sales, Diageo ( DEO ) reported an impressive FY 2018 (year ended June 2018), driven by strong organic sales growth and margin improvement, offset by negative currency translations. The company's ambitious share repurchase program is another factor which resulted in the 9.3% growth in the adjusted EPS. DEO returned £1.5 billion to shareholders in FY 2018 through a share buyback, with its strong cash flow delivery enabling it to announce another share buyback program of up to £2 billion for FY 2019. The measures undertaken by Diageo, as well as the strong momentum it has built up, should ensure steady growth in FY 2019 as well.
We have a price estimate of $158 for Diageo , which is higher than the current market price. The charts have been made using our new, interactive platform. You can click here for our interactive dashboard on DEO's FY 2018 results to modify the various drivers, to analyze their impact on Diageo's revenues, earnings, and price estimate .
Factors That May Impact Future Performance
1. Productivity Initiatives: Diageo completed its second year of implementing Zero-Based Budgeting (ZBB), as part of its wider plan to be more 'cost conscious.' This means that the company's finance managers will have to plan the budget of various departments from scratch, rather than them being based on the previous year's spending, as is the case normally. This has helped in reducing the overheads as a percent of sales, which fell 110 basis points in the year, and this has been a big driver in the margin improvement posted by the company. During FY 2018, the company delivered an organic and reported operating margin expansion of 78 basis points and 151 basis points respectively, and is on track to deliver 175 basis points of margin expansion for the three years ended June 2019. Based on the impressive productivity savings already realized, the company had, last July, increased its savings goal to £700 million from £500 million estimated earlier, two-thirds of which will be reinvested in the business. According to our projections as well, the EBITDA and EBITDA margin growth is set to continue in the medium term.
2. U.S. Spirits Growth: Sales of U.S. Spirits increased 3.3% during the year, with the growth slowing as compared to the corresponding period in the prior year, as a result of a tough comparison. The company continued its focus on the recruiting of millennials and multi-cultural consumers, using a mix of traditional and digital channels for marketing. While all key brands were able to gain value share, vodka still remains a weakness. Excluding Cîroc and Ketel One vodka, net sales grew 4.5%. The company is undertaking a number of initiatives to return these brands to positive growth, such as focusing on the three core variants of Cîroc - Blue, Apple, and Peach - and the launch of the new flavor, French Vanilla, and highlighting the fact that Ketel One is 100% non-GMO. DEO is targeting the super-premium vodka segment to drive the U.S. spirits performance.
3. Return To Strong Growth In India: Net sales improved 9% in India, reflecting an acceleration in the second half of the year. The company's strategy in the country is to grow its Prestige and above brands, which now represent two-thirds of the company's portfolio in the country, and grew 12% in the year. Sales growth and accelerated productivity also helped to improve gross margins in the country by 300 basis points, notwithstanding the impact of inflation and the recently launched goods and service tax ( GST ).
4. Chinese Growth Trajectory Continues: The stellar performance of Chinese White Spirits, which grew a scarcely believable 63%, helped in the 25% sales growth reported in the Greater China region. The company had taken a hit in China a few years back as a result of the anti-extravagance drive in the country. However, Diageo has managed to strengthen the business, with improvements noted in the route to market, and the sales and distribution system. While the company cannot be expected to maintain this massive growth in the future, strong double-digit growth can be anticipated, driven by whiskey and its white spirits brands, Shui Jing Fang, in particular.
5. Attractive Opportunity In Africa: Despite macroeconomic pressure in the short term, the medium and long term opportunity in the region is massive given the fact that it has been forecast to be the fastest growing total beverage alcohol region over 2016-2021. This is expected to occur as a result of an increase in the LPA (Legal Purchase Age) population, higher incomes, current low per capita consumption, and consumers moving toward formal, safer drinks from the informal sector. Beer forms the largest portion of the total alcohol consumed, at almost 65%, and capturing this segment is essential as Africa is expected to be the fastest growing beer region in the world. Spirits, meanwhile, form 25% of the TBA (Total Beverage Alcohol) consumption, and present another key growth opportunity, as mainstream spirits growth is projected to outpace that of beer. Furthermore, given the low level of affordability, Diageo has ensured its brands are available at various price points, in both beer and spirits. This will enable Diageo to capture those consumers that are unable to afford its core products, as well as those wishing to trade up.
6. Increasing Marketing Expenditure: Diageo has raised the advertising and promotion expenditure as a percent of sales by 27 basis points this year, resulting in marketing expenditure increasing 7%, and expects this trend to continue. The company increased investment behind U.S. Spirits and scotch, as well as in India and in attractive growing categories such as gin in Europe and Chinese white spirits. Consequently, gin sales increased 13.5% in Europe, and double-digit growth reported in markets such as Brazil, Mexico, South Africa, and Australia, with Tanqueray being a significant driving force behind this growth.
7. Acquisitions In Key Areas To Drive Growth: Diageo has undertaken a number of acquisitions this year, in fast-growing segments such as Tequila. DEO completed the acquisition of Casamigos, the fastest growing super-premium tequila brand in the U.S. The company also acquired ultra premium mezcal Pierde Almas and premium aperitif Belsazar. Furthermore, DEO recently launched a partial tender offer to potentially increase its stake in Shui Jing Fang from just under 40% up to a maximum of 60%.
See Our Complete Analysis For Diageo 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.
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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Despite missing the consensus expectation on sales, Diageo ( DEO ) reported an impressive FY 2018 (year ended June 2018), driven by strong organic sales growth and margin improvement, offset by negative currency translations. DEO returned £1.5 billion to shareholders in FY 2018 through a share buyback, with its strong cash flow delivery enabling it to announce another share buyback program of up to £2 billion for FY 2019. You can click here for our interactive dashboard on DEO's FY 2018 results to modify the various drivers, to analyze their impact on Diageo's revenues, earnings, and price estimate .
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Despite missing the consensus expectation on sales, Diageo ( DEO ) reported an impressive FY 2018 (year ended June 2018), driven by strong organic sales growth and margin improvement, offset by negative currency translations. DEO returned £1.5 billion to shareholders in FY 2018 through a share buyback, with its strong cash flow delivery enabling it to announce another share buyback program of up to £2 billion for FY 2019. You can click here for our interactive dashboard on DEO's FY 2018 results to modify the various drivers, to analyze their impact on Diageo's revenues, earnings, and price estimate .
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Despite missing the consensus expectation on sales, Diageo ( DEO ) reported an impressive FY 2018 (year ended June 2018), driven by strong organic sales growth and margin improvement, offset by negative currency translations. DEO returned £1.5 billion to shareholders in FY 2018 through a share buyback, with its strong cash flow delivery enabling it to announce another share buyback program of up to £2 billion for FY 2019. You can click here for our interactive dashboard on DEO's FY 2018 results to modify the various drivers, to analyze their impact on Diageo's revenues, earnings, and price estimate .
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Despite missing the consensus expectation on sales, Diageo ( DEO ) reported an impressive FY 2018 (year ended June 2018), driven by strong organic sales growth and margin improvement, offset by negative currency translations. DEO returned £1.5 billion to shareholders in FY 2018 through a share buyback, with its strong cash flow delivery enabling it to announce another share buyback program of up to £2 billion for FY 2019. You can click here for our interactive dashboard on DEO's FY 2018 results to modify the various drivers, to analyze their impact on Diageo's revenues, earnings, and price estimate .
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b122d9c6-bfcb-420b-b60c-773d713093b3
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727860.0
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2018-07-31 00:00:00 UTC
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Validea Warren Buffett Strategy Daily Upgrade Report - 7/31/2018
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DEO
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https://www.nasdaq.com/articles/validea-warren-buffett-strategy-daily-upgrade-report-7312018-2018-07-31
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nan
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nan
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The following are today's upgrades for Validea's Patient Investor model based on the published strategy of Warren Buffett . This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
ROLLINS, INC. ( ROL ) is a large-cap growth stock in the Business Services industry. The rating according to our strategy based on Warren Buffett changed from 72% to 86% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Rollins, Inc. is a service company, which operates in pest and termite control business segment. The Company, through its subsidiaries, provides its services to both residential and commercial customers in North America, Australia, and Europe with international franchises in Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe, Africa, Canada, Australia, and Mexico. The Company's subsidiaries include Orkin LLC. (Orkin), Western Pest Services (Western), The Industrial Fumigant Company, LLC (IFC), HomeTeam Pest Defense (HomeTeam), Rollins Australia and Rollins Wildlife Services. Orkin either serves customers, directly or through franchises operations, in the United States, Canada, Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe, Africa and Mexico, providing pest control services and protection against termite damage, rodents and insects to homes and businesses, including hotels and food service establishments.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
CORVEL CORPORATION ( CRVL ) is a small-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on Warren Buffett changed from 72% to 79% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: CorVel Corporation (Corvel) is a provider of workers' compensation solutions for employers, third party administrators, insurance companies and government agencies. The Company offers its services as a bundled solution, which includes claims management, as a standalone service, or as add-on services to existing customers. The Company offers its services as a bundled solution, which includes claims management, as a standalone service, or as add-on services to existing customers. The Company's network solutions include bill review, preferred provider organization (PPO) management, professional review, provider reimbursement, pharmacy services, directed care services, medicare solutions and clearinghouse services. The Company's patient management services include claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, life care planning, disability management, liability claims management and auto claims management.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
DIAGEO PLC (ADR) ( DEO ) is a large-cap growth stock in the Beverages (Alcoholic) industry. The rating according to our strategy based on Warren Buffett changed from 75% to 82% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Diageo PLC is an alcoholic beverage company. The Company operates in various categories, including spirits and beer. Its geographic segments include North America; Europe, Russia and Turkey; Africa; Latin America and Caribbean, and Asia Pacific. Its principal products includes Scotch whisky, Gin, Vodka, Rum, Beer, Irish Cream Liqueur, Wine, Raki, Tequila, Canadian Whisky, American Whiskey, Progressive Adult Beverages, Cachaca, Brandy and Ready to Drink. The Company's brands includes Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray and Guinness. It manages its operations from various locations, including the United Kingdom; Ireland; Italy; Turkey; the United States; Canada; Brazil; Mexico; Australia; Singapore; India; Nigeria; South Africa; East Africa, and Africa Regional Markets. It also produces a range of ready to drink products mainly in the United Kingdom, Italy, South Africa, Australia, the United States and Canada.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
ACCENTURE PLC ( ACN ) is a large-cap growth stock in the Computer Services industry. The rating according to our strategy based on Warren Buffett changed from 77% to 85% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Accenture plc is a professional services company serving clients in various industries and in geographic regions, including North America, Europe and Growth Markets. The Company provides management and technology consulting services. Its segments include Communications, Media and Technology; Financial Services; Health and Public Service; Products, and Resources. The Communications, Media & Technology segment serves communications, electronics, technology, media and entertainment industries. The Financial Services segment serves banking, capital markets and insurance industries. The Health & Public service segment serves healthcare payers and providers, and government departments and agencies, public service organizations, educational institutions and non-profit organizations. The Products segment serves a set of interconnected consumer-relevant industries. The Resources segment serves chemicals, energy, forest products, metals and mining, utilities and related industries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Warren Buffett has returned 221.99% vs. 164.02% for the S&P 500. For more details on this strategy, click here
About Warren Buffett : Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
About Validea : Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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For a full detailed analysis using NASDAQ's Guru Analysis tool, click here DIAGEO PLC (ADR) ( DEO ) is a large-cap growth stock in the Beverages (Alcoholic) industry. Orkin either serves customers, directly or through franchises operations, in the United States, Canada, Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe, Africa and Mexico, providing pest control services and protection against termite damage, rodents and insects to homes and businesses, including hotels and food service establishments. The Resources segment serves chemicals, energy, forest products, metals and mining, utilities and related industries.
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For a full detailed analysis using NASDAQ's Guru Analysis tool, click here DIAGEO PLC (ADR) ( DEO ) is a large-cap growth stock in the Beverages (Alcoholic) industry. The Company, through its subsidiaries, provides its services to both residential and commercial customers in North America, Australia, and Europe with international franchises in Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe, Africa, Canada, Australia, and Mexico. Orkin either serves customers, directly or through franchises operations, in the United States, Canada, Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe, Africa and Mexico, providing pest control services and protection against termite damage, rodents and insects to homes and businesses, including hotels and food service establishments.
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The Company offers its services as a bundled solution, which includes claims management, as a standalone service, or as add-on services to existing customers. For a full detailed analysis using NASDAQ's Guru Analysis tool, click here DIAGEO PLC (ADR) ( DEO ) is a large-cap growth stock in the Beverages (Alcoholic) industry. The Company's patient management services include claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, life care planning, disability management, liability claims management and auto claims management.
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For a full detailed analysis using NASDAQ's Guru Analysis tool, click here DIAGEO PLC (ADR) ( DEO ) is a large-cap growth stock in the Beverages (Alcoholic) industry. Orkin either serves customers, directly or through franchises operations, in the United States, Canada, Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe, Africa and Mexico, providing pest control services and protection against termite damage, rodents and insects to homes and businesses, including hotels and food service establishments. Company Description: Accenture plc is a professional services company serving clients in various industries and in geographic regions, including North America, Europe and Growth Markets.
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13535739-8e81-4e64-9a84-e426a0a2ce4f
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727861.0
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2018-07-30 00:00:00 UTC
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10 Retirement Stocks to Buy and Hold for the Rest of Your Life
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DEO
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https://www.nasdaq.com/articles/10-retirement-stocks-to-buy-and-hold-for-the-rest-of-your-life-2018-07-30
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Buy-and-hold investing 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 buying the best companies and holding for years can be riskier than it seems.
General Motors (NYSE: GM ) was a classic "widows and orphans" stock … until last decade, when GM wound up going bankrupt. United States Steel (NYSE: X ) once was a pillar of corporate America. Its stock basically hasn't moved in a quarter of a century. Polaroid and Eastman Kodak (NYSE: KODK ) were once blue-chip stocks. Both went bankrupt as cameras changed from film to digital.
But there still are stocks to buy out there that can last for the rest of your life, while offering dividend income along the way.
10 Triple-F Stocks to Throw Away
Here are 10 such retirement stocks that you can hold on to in perpetuity.
Editor's Note: This article was originally republished on December 28, 2017. It has been updated to reflect changes in the market.
Retirement Stocks to Hold Forever: Bank of America (BAC)
Source: Shutterstock
Dividend Yield: 1.9%
It might seem strange to open the list with Bank of America (NYSE: BAC ). After all, we're less 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 in the company's second quarter. Performance on credit metrics continues to improve across the portfolio. The Merrill Lynch unit is posting record margins. 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.
Retirement Stocks to Hold Forever: Diageo (DEO)
Source: Mustafa Khayat Via Flickr
Dividend Yield: 3%
Change has come to the alcohol industry, with the number of breweries exploding worldwide and new distilleries popping up as well. But 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 sales growth, Diageo grew revenue 4.3% on an organic basis in its fiscal 2017 and expects even better growth going forward.
10 Super Safe Growth Stocks to Buy for Long-Lasting Dividends
Yet at a sub-20x forward multiple, and with a dividend yield over 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.
Retirement Stocks to Hold Forever: Medtronic (MDT)
Source: U.S. Embassy Kyiv Ukraine via Flickr (Modified)
Dividend Yield: 2.3%
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, which trades at just 16x fiscal 2018 EPS guidance of roughly $5. A 2.3% dividend yield comes courtesy of a 7% hike earlier this year.
Medtronic's days of double-digit annual growth may well be behind it. But it's not finished increasing earnings, or dividends. And MDT stock likely isn't finished rising, either.
Retirement Stocks to Hold Forever: NextEra Energy (NEE)
Source: Shutterstock
Dividend Yield: 2.7%
Utility stocks are among the most common safe, "buy and hold" issues. And 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. It has gained 30% year-to-date, and trades just off record highs. But potential valuation concerns aside, NextEra looks like a winner. It serves customer in the southern Florida region, still one of the nation's fastest-growing areas. A 21x forward P/E multiple is high for the space, but not outlandishly so. And a 2.7% dividend yield provides income along the way.
7 Rebounding Stocks That Are Coming Back From The Dead
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.
Retirement Stocks to Hold Forever: McCormick (MKC)
Source: Blue Genie via Flickr
Dividend Yield: 2%
McCormick & Company (NYSE: MKC ) is another quality company whose valuation might spook some investors. But MKC stock very rarely is offered cheap - and below $100, it still provides plenty of value for long-term investors.
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 ) this summer, at a price that looked a bit high to many investors. But MKC has recovered those gains - and looks set for more to come.
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.
Retirement Stocks to Hold Forever: Allstate (ALL)
Source: Shutterstock
Dividend Yield: 1.9%
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 less than 14x 2018 EPS estimates. Higher interest rates should come - eventually - and boost investment returns, helping future earnings growth as well.
ALL, along with other insurance stocks, has taken a hit recently due to fears of major expenses relating to Hurricane Harvey. But Allstate is diversified enough both geographically and across product lines to manage those costs.
7 Momentum Stocks for High-Risk Appetites
Once those short-term worries subside, ALL should resume its march upward.
Retirement Stocks to Hold Forever: International Flavors & Fragances (IFF)
Source: Shutterstock
Dividend Yield: 2.1%
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 29x earnings, IFF does look a bit pricey. But, as with McCormick and other stocks on this list, investors should pay for quality.
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. And a 2.1% dividend, raised by 8% earlier this year, offers income potential as well.
Consumers may not know IFF - but investors should.
Retirement Stocks to Hold Forever: Lamb Weston (LW)
Source: Shutterstock
Dividend Yield: 1.1%
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 French 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 isn't particularly cheap, trading at about 21x 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.
4 REIT Sectors, 4 REITs to Buy for Long-Term Growth
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.
Retirement Stocks to Hold Forever: Fortune Brands (FBHS)
Source: Shutterstock
Dividend Yield: 1.4%
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 a 1.4% dividend yield provides modest, but growing, income.
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.
Retirement Stocks to Hold Forever: Republic Services (RSG)
Source: Shutterstock
Dividend Yield: 2.1%
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.
10 Strong Buy Stocks From the Best Analysts on Wall Street
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.
"Financial Anomaly" to Trigger Windfall Profits
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The post 10 Retirement Stocks to Buy and Hold for the Rest of Your Life 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.
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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Retirement Stocks to Hold Forever: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 3% Change has come to the alcohol industry, with the number of breweries exploding worldwide and new distilleries popping up as well. But 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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Retirement Stocks to Hold Forever: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 3% Change has come to the alcohol industry, with the number of breweries exploding worldwide and new distilleries popping up as well. But 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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Retirement Stocks to Hold Forever: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 3% Change has come to the alcohol industry, with the number of breweries exploding worldwide and new distilleries popping up as well. But 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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Retirement Stocks to Hold Forever: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 3% Change has come to the alcohol industry, with the number of breweries exploding worldwide and new distilleries popping up as well. But 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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2018-07-28 00:00:00 UTC
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Diageo Lays Claim to the World's Fastest-Growing Tequila Brand
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https://www.nasdaq.com/articles/diageo-lays-claim-worlds-fastest-growing-tequila-brand-2018-07-28
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Diageo (NYSE: DEO) makes most of its money selling the world's No. 1 scotch whiskey, Johnnie Walker. However, it is the distiller's tequila brands that are recording the largest gains, with organic net sales growth outpacing all other spirits in the portfolio by nearly three to one.
That might not be so surprising, as Euromonitor International says tequila and the related mezcal market is the fastest-growing spirits category. The U.S. is the biggest market for both -- bigger even than Mexico, where it's made. Total volumes rose 5.1% last year to 33.6 million cases.
The biggest tequila brands
The Spirits Business ' 2018 Brand Champions report highlighted the six tequila brands that sold over 1 million 9-liter cases last year.
No one should be surprised that Becle 's Jose Cuervo was the biggest, selling 9.5 million cases, a 6.4% increase over 2016. It's had excellent marketing over the years and has been popularized in song and film. Jose Cuervo currently holds a 30% share of the world tequila market.
Japan's Beam Suntory was a distant second, with 2.8 million cases sold for its Sauza brand, up an anemic 0.3% over the year before. Patron came in third place at 2.6 million cases, rising 5.1% year over year.
Patron's finish was also notable in that rum maker Bacardi made a big splash earlier this year by acquiring Patron Spirits in a deal valued at $5.1 billion. That dwarfed the $1 billion Diageo spent to acquire the super premium tequila Casamigos from George Clooney in 2015. Both deals, however, show that the distillers appreciate the premiumization of spirits that is under way in the marketplace as consumers willingly spend up for liquor.
The Distilled Spirits Council defines premium tequila as one that costs between $90 and $160 per case, while high-end premium goes for $160 to $240 per case. Super premium, on the other hand, is tequila that costs more than $240 a case, or the equivalent of around $27 or more per bottle.
That top end includes Patron, Sauza's Tres Generaciones, Brown-Forman 's Herradura, and Diageo's Casamigos, as well as its more established Don Julio brand. It's that latter tequila that is making waves in the market.
The shining star
Acquired from Casa Cuervo in 2015, Don Julio has become a star performer for Diageo. Organic net sales surged 42% in the first six months of the 2018 fiscal year, with volumes rising 35%. The Spirits Business says Don Julio crossed over the million-case threshold for the first time in 2017, moving 1.3 million cases, which makes it the fourth-biggest seller. However, its 44.4% volume growth last year makes Don Julio the fastest-growing major tequila brand in the world.
Diageo CEO Ivan M. Menezes notes that both Don Julio and Casamigos are growing far faster than the tequila category itself, as well as the super premium category. In other words, they are gaining market share. While Bacardi's acquisition of Patron gives the rum maker a bigger presence in the U.S., Diageo's tequila portfolio is growing faster and shouldn't face any problems now that its rival has switched owners.
Scotch whiskey will continue to lead the way for Diageo as the spirit accounts for 27% of total sales. Still, as tequila's popularity continues to grow and as Don Julio maintains its rapid-fire growth trajectory, look for it to climb the ranks of brands in both size and importance.
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Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.
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) makes most of its money selling the world's No. That top end includes Patron, Sauza's Tres Generaciones, Brown-Forman 's Herradura, and Diageo's Casamigos, as well as its more established Don Julio brand. While Bacardi's acquisition of Patron gives the rum maker a bigger presence in the U.S., Diageo's tequila portfolio is growing faster and shouldn't face any problems now that its rival has switched owners.
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Diageo (NYSE: DEO) makes most of its money selling the world's No. The biggest tequila brands The Spirits Business ' 2018 Brand Champions report highlighted the six tequila brands that sold over 1 million 9-liter cases last year. However, its 44.4% volume growth last year makes Don Julio the fastest-growing major tequila brand in the world.
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Diageo (NYSE: DEO) makes most of its money selling the world's No. The biggest tequila brands The Spirits Business ' 2018 Brand Champions report highlighted the six tequila brands that sold over 1 million 9-liter cases last year. The Distilled Spirits Council defines premium tequila as one that costs between $90 and $160 per case, while high-end premium goes for $160 to $240 per case.
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Diageo (NYSE: DEO) makes most of its money selling the world's No. However, it is the distiller's tequila brands that are recording the largest gains, with organic net sales growth outpacing all other spirits in the portfolio by nearly three to one. However, its 44.4% volume growth last year makes Don Julio the fastest-growing major tequila brand in the world.
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727863.0
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2018-07-27 00:00:00 UTC
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Solid Organic Growth Aid Diageo's (DEO) Fiscal 2018 Earnings
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DEO
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https://www.nasdaq.com/articles/solid-organic-growth-aid-diageos-deo-fiscal-2018-earnings-2018-07-27
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Diageo plcDEO reported preliminary fiscal 2018 results, ending Jun 30, 2018, wherein earnings gained 9.3% (in local currency) year over year. This was backed by a higher organic operating profit and lower finance charges, offset by higher tax expenses and unfavorable currency.
While Diageo's stock declined nearly 2% yesterday, shares of this Zacks Rank #5 (Strong Sell) company have rallied 13.7% in the past year, outperforming the industry 's decline of 3.7%. Clearly, this alcohol behemoth is riding on its focus on innovations, achieving growth through buyouts and penetration in emerging markets.
Fiscal 2018 Highlights
On a reported basis, net sales and operating profits moved up 0.9% and 3.7%, respectively, owing to organic growth, partly negated by unfavorable exchange rates.
Diageo plc Price and Consensus
Diageo plc Price and Consensus | Diageo plc Quote
Organic sales increased 5%, gaining from broad-based growth across all regions and categories, except for vodka. This marked the second year where the company delivered on its organic sales guidance. Sales also benefited from organic volume growth of 2.5% as well as a positive price mix of 2.5%. Volumes improved primarily due to IMFL whiskies, scotch and gin. While pricing remained stable, mix gained from stronger growth of IMFL whiskies in Diageo India.
The progress in top line and productivity program aided organic operating profit, which grew 7.6%. Further, organic operating margin expanded 78 basis points (bps), driven by increased productivity savings in overheads and lower related costs.
Financials
The company continues to generate solid cash flows, which was in line with the last year. It marked the fourth straight year of strong cash performance. Furthermore, the company reported another year of strong free cash flows.
Backed by the strong cash and operating performance, Diageo remains committed to its disciplined approach to capital allocation, primarily to enhance shareholder value. In sync with that, the company returned £1.5 billion to shareholders in fiscal 2018 through share repurchases. It also authorized a new share buyback plan for fiscal 2019, worth up to £2 billion. The company also announced a 5% increase in final dividend.
Other Updates
The company acquired the fastest-growing premium tequila brand in the U.S., Casamigos. Along with the existing Don Julio brand, the buyout is expected to boost Diageo's market share in the tequila category. The deal is worth $1 billion, where the company is going to pay $700 million initially and $300 million after looking into the performance of the brand over the next decade.
The company also launched a partial tender offer for Shui Jing Fang, which is likely to expand the company's shareholding from approximately 40% up to 60%.
Outlook
Moving ahead, Diageo expects synergies from its productivity initiatives to persist in fiscal 2019. It continues to expect organic net sales to improve in the mid-single digit in fiscal 2019. Based on current rates, the company expects currency headwinds to significantly impact both net sales and operating profit.
Driven by its productivity program, the company expects to deliver on its targeted operating margin expansion of 175 bps for the three years, ending Jun 30, 2019.
Looking for Solid Stocks, Check These
Some better-ranked stocks in the consumer staples sector are The Boston Beer Company Inc. SAM , Darling Ingredients Inc. DAR and Turning Point Brands, Inc. TPB , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Boston Beer has long-term earnings growth rate of 9.5%. Moreover, the stock has increased 39.1% in the last three months.
Darling Ingredients has rallied 18% in the last three months. The company delivered an average positive earnings surprise of 106.1% in the last four quarters.
Turning Point has delivered positive earnings surprise of 16.7% in the last reported quarter. Moreover, the stock has rallied 55.5% in the last three months.
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Diageo plc (DEO): Free Stock Analysis Report
The Boston Beer Company, Inc. (SAM): Free Stock Analysis Report
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Darling Ingredients Inc. (DAR): 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.
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 plcDEO reported preliminary fiscal 2018 results, ending Jun 30, 2018, wherein earnings gained 9.3% (in local currency) year over year. Click to get this free report Diageo plc (DEO): Free Stock Analysis Report The Boston Beer Company, Inc. (SAM): Free Stock Analysis Report Turning Point Brands, Inc. (TPB): Free Stock Analysis Report Darling Ingredients Inc. (DAR): Free Stock Analysis Report To read this article on Zacks.com click here. Fiscal 2018 Highlights On a reported basis, net sales and operating profits moved up 0.9% and 3.7%, respectively, owing to organic growth, partly negated by unfavorable exchange rates.
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report The Boston Beer Company, Inc. (SAM): Free Stock Analysis Report Turning Point Brands, Inc. (TPB): Free Stock Analysis Report Darling Ingredients Inc. (DAR): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plcDEO reported preliminary fiscal 2018 results, ending Jun 30, 2018, wherein earnings gained 9.3% (in local currency) year over year. Diageo plc Price and Consensus Diageo plc Price and Consensus | Diageo plc Quote Organic sales increased 5%, gaining from broad-based growth across all regions and categories, except for vodka.
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report The Boston Beer Company, Inc. (SAM): Free Stock Analysis Report Turning Point Brands, Inc. (TPB): Free Stock Analysis Report Darling Ingredients Inc. (DAR): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plcDEO reported preliminary fiscal 2018 results, ending Jun 30, 2018, wherein earnings gained 9.3% (in local currency) year over year. Diageo plc Price and Consensus Diageo plc Price and Consensus | Diageo plc Quote Organic sales increased 5%, gaining from broad-based growth across all regions and categories, except for vodka.
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Diageo plcDEO reported preliminary fiscal 2018 results, ending Jun 30, 2018, wherein earnings gained 9.3% (in local currency) year over year. Click to get this free report Diageo plc (DEO): Free Stock Analysis Report The Boston Beer Company, Inc. (SAM): Free Stock Analysis Report Turning Point Brands, Inc. (TPB): Free Stock Analysis Report Darling Ingredients Inc. (DAR): Free Stock Analysis Report To read this article on Zacks.com click here. Fiscal 2018 Highlights On a reported basis, net sales and operating profits moved up 0.9% and 3.7%, respectively, owing to organic growth, partly negated by unfavorable exchange rates.
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2018-07-05 00:00:00 UTC
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The 3 Safest Dividend Stocks for International Exposure
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https://www.nasdaq.com/articles/the-3-safest-dividend-stocks-for-international-exposure-2018-07-05
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In any long-term diversified portfolio, international stocks not only have a place, they should be represented by as much as 10% to 15% of your investment.
The reason is not merely diversification, but because international stocks do not always correlate directly to the performance of the U.S. market. You want to have stocks that aren't correlated to smooth out volatility.
Investors can be afraid of international stocks, as if they aren't as safe from a political, reporting or regulatory perspective as they are here in the United States. Political risk can be very real with international stocks, and significant cultural differences can present an additional risk when trying to evaluate securities.
Look, I would be very cautious investing in China, Russia or Africa. As I've mentioned in many articles about Chinese stocks, China is opaque. And current headline risks can give investors pause.
7 High-Quality Dividends for 2018 and Beyond
Still, international exposure is necessary, and there are many international companies that you will find palatable because you know their products, and you know their name. Plus, they pay pretty good dividends to boot.
International Dividend Stocks to Buy: GlaxoSmithKline (GSK)
Source: Shutterstock
Dividend Yield: 5.4%
You certainly know the name GlaxoSmithKline (NYSE: GSK ). As investors, we aren't going to freak out about a U.K.-based company, right? We also know it is an $100 billion pharmaceutical company.
It has four divisions: Pharmaceuticals, Pharmaceuticals R&D, Vaccines and Consumer Healthcare. Besides its huge portfolio of proprietary pharma drugs, it has other products you certain know: Otrivin, Panadol, parodontax, Poligrip, Sensodyne, Theraflu and Voltaren.
It also has consumer products, such as drinks and foods, toothpastes, toothbrushes, mouth rinses, medicated mouthwashes, gels and sprays, denture adhesives, and denture cleansers.
GSK invented NicoDerm and has more than three dozen other products in development. It's no wonder GSK has billions of cash on the balance sheet, and more than enough cash flow to pay its dividend, presently at 5.4%.
International Dividend Stocks to Buy: Diageo (DEO)
Source: Mustafa Khayat Via Flickr
Dividend Yield: 2.4%
Do you like booze? Enjoy knocking back a few from time to time? Then hop on board Diageo (NYSE: DEO ). We know for a fact there will always be some baseline demand for alcohol. No matter how healthy people claim they want to be, they will always give in to alcohol.
You know many of Diageo's brands, including Johnnie Walker, Crown Royal, J&B, Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.
Why is alcohol a smart investment? Because it is a social product. When people get together, if one person buys, others tend to buy also. Marketing for alcohol centers around creating an experience, and creating and perpetuating social circles. In general, it is a good play because human social behavior is often centered around the consumption of alcohol.
5 Big Biotech Stocks to Buy Under $10
DEO stock is being pushed higher thanks to increased efforts in flavored alcohols. The company is consistent and reliable, and pumps out more than $3 billion annually in free cash flow, returning about half of that to shareholders in the form of its 2.4% yield.
International Dividend Stocks to Buy: Unilever (UL)
Source: Sean Biehle via Flickr
Dividend Yield: 3.2%
Unilever (NYSE: UL ) is a familiar, international presence with consumer products across the spectrum. You certainly know all of the following: Dove, Knorr, Axe, Magnum, Lipton, Surf, Becel, Lux, Metadent, Pepsodent, Country Crock, Persil, Popsicle, Ben & Jerry's, Breyer's Vaseline and many more.
Unilever makes a ton of money. The company reported good numbers in its fourth-quarter earnings, with sales up 3.5%, operating margins up 110bps, earnings up 11% and free cash flow of 5.4 billion euros.
UL is concentrating on new channels: health and beauty, direct to consumer, e-commerce, and "experience stores." By the way, UL is shoring up its pension, with a deficit of 3.2 billion euros now down to just 600 million. That means money to pay the dividend won't be diverted.
UL only has two years of consecutive increases under its belt, but it pays a 3.2% dividend, which you could do worse than.
Lawrence Meyers is the CEO of PDL Capital, a specialty lender focusing on consumer finance and is the Manager of The Liberty Portfolio at www.thelibertyportfolio.com. He does not own any stock mentioned. He has 23 years' experience in the stock market, and has written more than 2,000 articles on investing. Lawrence Meyers can be reached at TheLibertyPortfolio@gmail.com.
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The post The 3 Safest Dividend Stocks for International Exposure 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.
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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International Dividend Stocks to Buy: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.4% Do you like booze? Then hop on board Diageo (NYSE: DEO ). 5 Big Biotech Stocks to Buy Under $10 DEO stock is being pushed higher thanks to increased efforts in flavored alcohols.
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International Dividend Stocks to Buy: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.4% Do you like booze? Then hop on board Diageo (NYSE: DEO ). 5 Big Biotech Stocks to Buy Under $10 DEO stock is being pushed higher thanks to increased efforts in flavored alcohols.
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International Dividend Stocks to Buy: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.4% Do you like booze? Then hop on board Diageo (NYSE: DEO ). 5 Big Biotech Stocks to Buy Under $10 DEO stock is being pushed higher thanks to increased efforts in flavored alcohols.
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International Dividend Stocks to Buy: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.4% Do you like booze? Then hop on board Diageo (NYSE: DEO ). 5 Big Biotech Stocks to Buy Under $10 DEO stock is being pushed higher thanks to increased efforts in flavored alcohols.
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2018-06-27 00:00:00 UTC
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First Week of DEO August 17th Options Trading
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DEO
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https://www.nasdaq.com/articles/first-week-deo-august-17th-options-trading-2018-06-27
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Investors in Diageo plc (Symbol: DEO) saw new options begin trading this week, for the August 17th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the DEO options chain for the new August 17th contracts and identified one put and one call contract of particular interest.
The put contract at the $140.00 strike price has a current bid of $3.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $140.00, but will also collect the premium, putting the cost basis of the shares at $137.00 (before broker commissions). To an investor already interested in purchasing shares of DEO, that could represent an attractive alternative to paying $142.82/share today.
Because the $140.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 65%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract . Should the contract expire worthless, the premium would represent a 2.14% return on the cash commitment, or 15.34% annualized - at Stock Options Channel we call this the YieldBoost .
Below is a chart showing the trailing twelve month trading history for Diageo plc, and highlighting in green where the $140.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $145.00 strike price has a current bid of $2.25. If an investor was to purchase shares of DEO stock at the current price level of $142.82/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $145.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.10% if the stock gets called away at the August 17th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DEO shares really soar, which is why looking at the trailing twelve month trading history for Diageo plc, as well as studying the business fundamentals becomes important. Below is a chart showing DEO's trailing twelve month trading history, with the $145.00 strike highlighted in red:
Considering the fact that the $145.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 60%. On our website under the contract detail page for this contract , Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.58% boost of extra return to the investor, or 11.27% annualized, which we refer to as the YieldBoost .
The implied volatility in the put contract example is 24%, while the implied volatility in the call contract example is 16%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $142.82) to be 15%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if DEO shares really soar, which is why looking at the trailing twelve month trading history for Diageo plc, as well as studying the business fundamentals becomes important. Below is a chart showing DEO's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Diageo plc (Symbol: DEO) saw new options begin trading this week, for the August 17th expiration.
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Below is a chart showing DEO's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Diageo plc (Symbol: DEO) saw new options begin trading this week, for the August 17th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the DEO options chain for the new August 17th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing DEO's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Diageo plc (Symbol: DEO) saw new options begin trading this week, for the August 17th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the DEO options chain for the new August 17th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel , our YieldBoost formula has looked up and down the DEO options chain for the new August 17th contracts and identified one put and one call contract of particular interest. Below is a chart showing DEO's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Diageo plc (Symbol: DEO) saw new options begin trading this week, for the August 17th expiration.
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2018-06-26 00:00:00 UTC
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14 Top-Flight International Dividend Stocks to Buy
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DEO
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https://www.nasdaq.com/articles/14-top-flight-international-dividend-stocks-buy-2018-06-26
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Income investors can do well enough by staying domestic in their hunt for dividends. But they can add some oomph by branching out into international dividend stocks , which provide several benefits.
First, international stocks on average offer higher yields than their domestic counterparts. An index of international developed-market stocks - the MSCI EAFE - shows international stocks yielding roughly 2.6% right now, versus about 1.8% for the Standard & Poor's 500-stock index of U.S. large-cap companies. International companies also tend to pay out about 35% to 45% of their earnings in the form of dividends, versus 25% on average for U.S. stocks.
There are other perks, too. International dividend stocks diversify an equity portfolio so you're protected against weakness in the U.S. They also help protect against inflation. International stocks domiciled in "emerging" markets such as China and India may also offer better growth prospects than in a developed market such as the U.S. And lastly, with American stocks trading at high valuations, historically speaking, international stocks - particularly those in Europe - may offer better values at present.
Here are 10 international dividend stocks to consider buying today. Each of these offers an attractive blend of yield and/or dividend growth and stability - not to mention the benefits of geographic diversification.
SEE ALSO: 53 Best Dividend Stocks for 2018 and Beyond
Market value: $105.3 billion
Dividend yield: 1.7%
Country: Ireland
Accenture ( ACN , $156.16), formerly known as Anderson Consulting, is a worldwide consulting company that is shifting its business model to focus on helping businesses make the transition to digital.
Accenture's yield, which is slightly below the S&P 500, is atypical of this list. Still, shares are a good choice for global dividend investors. Wall Street analysts target high-single-digit revenue growth, with more than 60% of its sales coming from digitally related services, cloud services and network security. That, combined with ACN's strong cash flow, should result in ample dividend growth in the coming years. Indeed, management said it expects to hike its payout in line with earnings; if so, that would mean double-digit annual dividend growth, based on analysts' projections for the next five years of earnings.
Analysts at Wells Fargo laud Accenture's commitment to returning cash to shareholders via both share buybacks and dividend increases.
Also, a note about taxes: Different countries levy taxes on dividend income too. If you're in the U.S. but receiving dividends from a foreign stock, the broker will withhold the foreign country's tax and pay it to said country on your behalf. However, you'll receive a foreign dividend tax credit that can offset the amount dollar-for-dollar when paying dividend taxes to the U.S. In the case of Accenture, Ireland withholds at a 20% rate.
SEE ALSO: 25 Blue-Chip Stocks Mutual Fund Managers Love Most
Market value: $149.4 billion
Dividend yield: 5.4%
Country: England
BP plc ( BP , $44.24) is an integrated oil and gas company that acts as an example of an international blue-chip that offers more income than its U.S. counterparts. Shares of American energy titans Chevron ( CVX ) and Exxon Mobil ( XOM ) yield 3.6% and 3.9%.
While BP did suspend its dividend after the 2010 Deepwater Horizon oil spill, then brought it back at a reduced amount, the company has maintained and grown that payout even amid aggressive cost cutting. For instance, production costs ended 2017 down 17% year-over-year. The upside: BP's operating cash flow easily covered capital expenditures and dividend payments, even with Brent crude oil below $50. BP expects to further reduce its oil breakeven price to $35-$45 per barrel of Brent crude by 2021.
BP says that, excluding costs to replace equipment, the dividend is fully covered at a Brent crude price of $42 per barrel. Brent crude currently trades above $76, so the divided not only looks secure, but ripe for further increases. Better still, analysts at Bank of America/Merrill Lynch expect higher oil prices and less "uncertainty" surrounding oil-spill related litigation to make BP better able to cover its dividend.
Also, the company is based in the U.K., and thus investors face no foreign tax on dividends.
SEE ALSO: The "Sweet Spot": 15 Mid-Cap Dividend Stocks to Buy
Market value: $10.5 billion
Dividend yield: 4.8%
Country: Canada
Brookfield Infrastructure Partners ( BIP , $37.92) is based in Canada, but its variety of infrastructure businesses operate globally, including communications equipment in France, timberlands in North America, shipping terminals in Australia, toll roads in South America and transmission lines in Chile.
BIP's unique assets face few competitors (none at all, in some cases) and consistently generate substantial cash flow irrespective of the economy. Management reinvests a part of earnings in its businesses and pays the rest out as dividends.
Going forward, the company expects dividend payments to increase between 5% and 9% per year, and shares already yield close to 5%. Analysts at BMO Capital Markets expect Brookfield's strong cash flow to sustain dividend growth at the high end of management's 5%-9% target range. Canada's withholding tax for dividends is on the high side, at 25%.
SEE ALSO: 7 Latin American Stocks to Buy for the Long-Term
Market value: $88.1 billion
Dividend yield: 2.4%
Country: England
Diageo ( DEO , $142.94) is a highly profitable spirits company whose portfolio of alcoholic beverages include brand titans such as Johnnie Walker scotch, Smirnoff vodka, Captain Morgan rum, Tanqueray gin and Crown Royal Canadian whisky.
The stock's above-average yield, strong brands and solid growth potential make it an attractive international dividend stock. The company's presence in emerging markets has been and should continue to be an earnings-growth driver; its businesses in Africa, Asia and Latin America posted solid revenue growth in 2017. Analysts at Bank of America/Merrill Lynch were happy with Diageo's first quarter free cash flow of 1 billion euros and expect the company's FCF positions the company for buybacks and future dividend hikes.
Diageo currently pays an annual dividend of $3.46, up 8% from last year. The current yield of 2.4% may not appear very high, but the company consistently raises its dividend, including a 10% bump in FY 2017.
SEE ALSO: 10 Stock Picks for a Summer Rally
Market value: $99.4 billion
Dividend yield: 5.4%
GlaxoSmithKline ( GSK , $39.92) is an $88 billion pharmaceutical company. In addition to its many pharmaceutical products, the company sells consumer-health products such as Aquafresh and Sensodyne toothpaste, Poligrip denture adhesive, Theraflu medicine and Tums antacids. It also was GlaxoSmithKline's product pipeline that led to the invention of Nicoderm, the smoking cessation product.
Looking forward, GSK has some promising drugs, including shingles vaccine Shingrix and HIV pill Juluca, that received regulatory approval just last year. GlaxoSmithKline also will be working with Novartis' consumer healthcare unit, which it bought for $13 billion earlier this year.
Analysts at Bank of America/Merrill Lynch note that the company prefers to return cash to shareholders through dividends - made apparent by its 5%-plus yield at current prices.
SEE ALSO: The 18 Best Stocks to Buy for the Rest of 2018
Market value: $37.3 billion
Dividend Yield: 5.5%
Country: England
National Grid ( NGG , $55.60) isn't a pure international play, as it's an electric and natural gas utility with exposure to both the United Kingdom and in the United States. Still, it does offer some diversification, and it consistently generates dividends.
Electric and natural gas utilities are not the flashiest businesses, but they are nearly impossible for competitors to enter. National Grid owns and operates about 4,500 miles of power lines and about 4,800 miles of gas pipeline. For competitors to duplicate these networks of power lines and gas pipelines would be prohibitively expensive and difficult.
NGG shares are also dirt-cheap at the moment, trading at roughly 8 times trailing 12-month earnings.
National Grid typically pays dividends in January and August.
SEE ALSO: 5 Dividend Stocks to Buy for Quality and Safety
Market value: $233.0 billion
Dividend yield: 3.2%
Country: Switzerland
Nestle ( NSRGY , $75.66), with operations in 190 countries and more than 2,000 products offered, is the world's largest food and beverage company and is diversified across various consumer products and geographies. Its products include beverages, health and wellness items, milk and ice cream, pet care, prepared foods, sweets and bottled water.
Nestle's stock is trading near a 52-week low. However, a $7.15 billion deal with Starbucks ( SBUX ) that gives Nestle the rights to sell the coffeemaker's branded products around the world could inject some life into shares. The company also plans to emphasize growth areas such as pet care and infant nutrition going forward.
The larger environment is also conducive to success for the Swiss foods giant. Analysts at Bank of America/Merrill Lynch expect cyclical stocks like Nestle to benefit from an accelerating economy in 2018.
Just note that the Swiss government will withhold a hefty sum of 35% on Nestle's dividends.
SEE ALSO: 7 Stocks to Buy and Hold for the Next Decade
Market value: $172.1 billion
Dividend yield: 4.0%
Country: Switzerland
Novartis ( NVS , $74.03) is a Swiss-based pharmaceutical company whose top drugs include the likes of Gilenya for multiple sclerosis, Cosentyx for psoriasis and psoriatic arthritis, and leukemia/cancer treatment Gleevec.
The company did sell off its share of a joint consumer health-care unit with GlaxoSmithKline, but it has acquired AveXis, whose lead product candidate is a one-time gene replacement therapy for spinal muscular atrophy.
NVS stands to benefit from an aging population in the U.S., as well as higher demand in emerging markets as growing middle classes gain increasing access to medicine. The dole for 2018 came to $2.98 per share - a payout ratio of 87% compared to a 97% payout ratio for the year prior. Novartis is actually a serial dividend raiser, compiling a 21-year streak of consecutive payout hikes.
Analysts at Bank of America/Merrill Lynch are sanguine about cash flow from "profitable" investments, which bodes well for the payout going forward.
SEE ALSO: 10 Cheap Stocks to Buy With Only $10
Market value: $187.5 billion
Dividend yield: 4.0%
Country: Switzerland
Roche Holding ( RHHBY , $27.43) is another Swiss healthcare company that boasts a strong drug portfolio and industry-leading diagnostics products. As the world's largest biotech firm, as well as the world's largest diagnostic laboratory equipment company in the growing business of oncology (tumors), Roche leads the industry in providing more personalized products and increasing cost-effectiveness.
Roche also boasts a strong pharmaceutical business, anchored by Genentech, which it bought for $46.8 billion in 2009.
Analysts at Morningstar expect Roche's emphasis on biologics (drugs in extracted form) and strong pipeline to sustain its competitive advantage and enable growth over the next several years.
The company helped its own case in April when it beat earnings expectations and lifted its full-year forecast thanks to gains in new drugs for MS and hemophilia.
SEE ALSO: 5 Best Emerging-Markets Funds for the Long Haul
Market value: $299.3 billion
Dividend yield: 5.3%
Country: England/Netherlands
Royal Dutch Shell ( RDS.B , $70.67) has been operating as an integrated oil and gas company for more than 100 years and offers investors a reliable dividend above 5%. It also offers something of a tax headache, as its A shares fall under Dutch law (15% withholding tax), but its B shares fall under U.K. law (no withholding tax).
That headache will be going away in 2019, however, as a new policy in the Netherlands will abolish that tax.
Thanks to its operational efficiency, Shell's refining business generates earnings even during periods of weak oil prices. The recovery in oil, meanwhile, has helped its exploration and production business return to profitability after losses in 2016.
Shell projects an additional $10 billion in cash flow from current projects by the end of 2018; analysts at BofA/Merrill Lynch expect those projects to sustain the company's payout. That, as well as higher oil prices, should bode very well for Shell's cash situation. The company expects annual cash flow of $25 billion to $30 billion by 2020 based on oil prices of $60 per barrel, which is lower than where it has traded lately.
SEE ALSO: 5 "Strong Buy" Biotech Stocks to Buy Now
Market value: $65.2 billion
Dividend Yield: 2.8%
Country: Canada
Suncor Energy ( SU , $38.70), Canada's second largest oil producer, is an odd bird in that it produces synthetic crude oil from oil sands. It also is the world's top producer of bitumen, and also produces natural gas.
Suncor ended 2017 strong, generating an outstanding $9.1 billion in funds from operations, powered by a quarterly record $3 billion in quarterly funds from operations. Driving this strong performance were higher oil prices, record oil production and falling operating expenses, which as a percentage of sales fell to their lowest level in more than 10 years.
As a result, Suncor generated enough cash to fund its capital investments, retire debt, repurchase $1.1 billion of its shares in 2017 and hike its dividend by 12.5%.
Last year also was notable in that Suncor finished two important growth projects in the fourth quarter, positioning it to post a 9% compound annual growth rate (CAGR) in output over the next three years. That gave the company confidence to not only boost its dividend, but also to authorize another $1.6 billion in share repurchases.
SEE ALSO: 10 Safe Blue-Chip Stocks You Want to Own
Market value: $191.3 billion
Dividend yield: 3.1%
Country: Japan
Toyota ( TM , $128.57) is a Japanese automaker worthy of investors' consideration. Toyota manufactures and sells automobiles under both the Toyota brand and the Lexus luxury brand, and it's striving for the title of world's largest automaker - title currently held by Renault-Nissan-Mitsubishi.
Shares in many auto companies, domestic and international, are trading at P/Es in the low double digits and even high single digits. That said, there's still some exciting growth potential. While Tesla Motors ( TSLA ) gets most of the notice for driverless technologies and other advances, established manufacturers such as Toyota are churning ahead with similar technologies. Moreover, they already have manufacturing capabilities and dealer networks in place to get those cars to market better.
TM shares trade at about 8.6 times trailing earnings, which is at the end of their historic range. Analysts at Standard & Poor's think Toyota's consistently above-average earnings and financial strength warrant a more premium valuation.
Toyota manages its dividend conservatively, with a policy of paying out about 30% of its profits to shareholders. Nonetheless, the company has lifted its dividend - paid out twice a year, typically in December and June - by more than 50% since 2013. Dividend investors in Japan pay a dividend tax of either 15% or 20%.
SEE ALSO: How Well Do You Really Know Warren Buffett?
Market value: $151.8 billion
Dividend yield: 3.2%
Country: England/Netherlands
Unilever ( UN , $55.25), established in 1885, is a dividend stock in the consumer staples sector. It has 13 brands that generate more than $1 billion in annual revenue annually. Unilever's better-known brands include Axe and Dove body-care products, Hellman's mayo, Lipton teas and Knorr mixes.
The company's large size and geographically diverse businesses provide it a competitive advantage. Unilever has a significant presence in such emerging markets as Africa, China and India, entering them early than many American consumer companies and gaining a first-mover advantage.
Unilever's ambitious acquisitions plans will aid future growth. Management aims to acquire companies with the potential to upend existing product categories in the consumer products industry. Since 2015, it has made 18 acquisitions.
Unilever pays its dividend annually. Important to note is that the company is moving its headquarters to the Netherlands to simplify its business structure. Its UL shares are tethered to Britain, while its UN shares are tied to the Netherlands. The company will retain its UL shares once its headquarters move, but investors for now should focus on UN shares. Those are subject to a 15% dividend tax ... at least until 2019, when the dividend tax is abolished.
Analysts at Morningstar expect the company's recent 8% increase in the dividend and share buyback program to benefit shares further.
SEE ALSO: 8 Tech Stocks That Pay You to Own Them
Market value: $64.8 billion
Dividend yield: 7.3%
Country: England
Vodafone ( VOD , $24.54) is a telecommunications company that has more than 30 million fixed-line customers and 500 million-plus mobile customers. And while it does most of its business in Europe, it also has a substantial presence in emerging markets.
Looking ahead, Vodafone's growth prospects appear promising thanks in large part to its aggressive expansion in India. Last year, Vodafone India agreed to acquire Idea Cellular and become Vodafone Idea. The deal resulted in Vodafone becoming the market-share leader in India, which is among the most attractive emerging markets. India currently is a fragmented market, but its population of more than 1 billion and its rapidly growing economy mean there's plenty of wealth to share.
Analysts at Bank of America/Merrill Lynch expect the company's recent acquisition of Liberty Global's ( LBTYA ) European assets to increase cash flow and result in higher dividend coverage.
Vodafone pays dividends semi-annually.
SEE ALSO: 10 Workhorse Health-Care Stocks That Never Break a Sweat
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SEE ALSO: 7 Latin American Stocks to Buy for the Long-Term Market value: $88.1 billion Dividend yield: 2.4% Country: England Diageo ( DEO , $142.94) is a highly profitable spirits company whose portfolio of alcoholic beverages include brand titans such as Johnnie Walker scotch, Smirnoff vodka, Captain Morgan rum, Tanqueray gin and Crown Royal Canadian whisky. SEE ALSO: 7 Stocks to Buy and Hold for the Next Decade Market value: $172.1 billion Dividend yield: 4.0% Country: Switzerland Novartis ( NVS , $74.03) is a Swiss-based pharmaceutical company whose top drugs include the likes of Gilenya for multiple sclerosis, Cosentyx for psoriasis and psoriatic arthritis, and leukemia/cancer treatment Gleevec. SEE ALSO: 10 Cheap Stocks to Buy With Only $10 Market value: $187.5 billion Dividend yield: 4.0% Country: Switzerland Roche Holding ( RHHBY , $27.43) is another Swiss healthcare company that boasts a strong drug portfolio and industry-leading diagnostics products.
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SEE ALSO: 7 Latin American Stocks to Buy for the Long-Term Market value: $88.1 billion Dividend yield: 2.4% Country: England Diageo ( DEO , $142.94) is a highly profitable spirits company whose portfolio of alcoholic beverages include brand titans such as Johnnie Walker scotch, Smirnoff vodka, Captain Morgan rum, Tanqueray gin and Crown Royal Canadian whisky. SEE ALSO: 10 Cheap Stocks to Buy With Only $10 Market value: $187.5 billion Dividend yield: 4.0% Country: Switzerland Roche Holding ( RHHBY , $27.43) is another Swiss healthcare company that boasts a strong drug portfolio and industry-leading diagnostics products. SEE ALSO: 5 "Strong Buy" Biotech Stocks to Buy Now Market value: $65.2 billion Dividend Yield: 2.8% Country: Canada Suncor Energy ( SU , $38.70), Canada's second largest oil producer, is an odd bird in that it produces synthetic crude oil from oil sands.
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SEE ALSO: 7 Latin American Stocks to Buy for the Long-Term Market value: $88.1 billion Dividend yield: 2.4% Country: England Diageo ( DEO , $142.94) is a highly profitable spirits company whose portfolio of alcoholic beverages include brand titans such as Johnnie Walker scotch, Smirnoff vodka, Captain Morgan rum, Tanqueray gin and Crown Royal Canadian whisky. SEE ALSO: 53 Best Dividend Stocks for 2018 and Beyond Market value: $105.3 billion Dividend yield: 1.7% Country: Ireland Accenture ( ACN , $156.16), formerly known as Anderson Consulting, is a worldwide consulting company that is shifting its business model to focus on helping businesses make the transition to digital. SEE ALSO: 5 Dividend Stocks to Buy for Quality and Safety Market value: $233.0 billion Dividend yield: 3.2% Country: Switzerland Nestle ( NSRGY , $75.66), with operations in 190 countries and more than 2,000 products offered, is the world's largest food and beverage company and is diversified across various consumer products and geographies.
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SEE ALSO: 7 Latin American Stocks to Buy for the Long-Term Market value: $88.1 billion Dividend yield: 2.4% Country: England Diageo ( DEO , $142.94) is a highly profitable spirits company whose portfolio of alcoholic beverages include brand titans such as Johnnie Walker scotch, Smirnoff vodka, Captain Morgan rum, Tanqueray gin and Crown Royal Canadian whisky. Indeed, management said it expects to hike its payout in line with earnings; if so, that would mean double-digit annual dividend growth, based on analysts' projections for the next five years of earnings. SEE ALSO: 5 Dividend Stocks to Buy for Quality and Safety Market value: $233.0 billion Dividend yield: 3.2% Country: Switzerland Nestle ( NSRGY , $75.66), with operations in 190 countries and more than 2,000 products offered, is the world's largest food and beverage company and is diversified across various consumer products and geographies.
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727867.0
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2018-06-21 00:00:00 UTC
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Is Diageo Stock a Buy?
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DEO
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https://www.nasdaq.com/articles/diageo-stock-buy-2018-06-21
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nan
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nan
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One of the most consistent businesses is the sale of beer, wine, and spirits. These products sell well both good economies and bad. Tastes change over time, but long-term consumption of alcoholic beverages has provided stable growth worldwide.
One of the biggest players in the spirits business is Diageo (NYSE: DEO) , the company behind Johnnie Walker, Crown Royal, Ketel One, and Captain Morgan. The company has its hands in some of the most popular spirits brands in the world. But is it a buy for investors ?
Diageo is as steady as it gets
Diageo is a diverse business as far as spirits makers go, but it still relies on scotch for 27% of its revenue as of the six months ended on December 31, 2017. Beer makes up another 15% of sales, with vodka and North American whiskey making up 11% and 9%, respectively.
You can see that Diageo has had ups and downs over the past decade, but has been a steady profit machine. It won't provide investors much growth (which I'll get to below), but its slightly increased margins and revenue and earnings are going to be steady in the spirits business.
DEO Revenue (TTM) data by YCharts
However, while spirits will be a steady business, I find it hard to see Diageo as a big winner for investors long-term.
Why big gains are hard in spirits
Spirits consumption is growing slowly -- Diageo's volume was up 1.3% in 2016, 1.1% in 2017, and 1.8% in the first half of fiscal 2018 -- and there's no indication volume growth is going to be higher than low-single digits long-term. To grow earnings, the other option besides volume growth is raising prices in the hopes of raising revenue and expanding margins. But that may be hard to do without major consolidation, which seems unlikely.
The beer business could serve as a model for spirit consolidation. It's consolidated rapidly over the past decade, with Anheiser-Busch Inbev , Heineken , and Molson Coorsdominating the market in the U.S. and around the world . As consolidation has occurred, companies have slowly raised prices to improve margins without the threat of competitors undercutting them on price. That's how they're able to grow.
A similar "consolidate and increase prices" model hasn't taken hold in the spirits business, and even big names like Brown-Forman , Constellation Brands , and Stock Spirits are far from dominant in the market. One of the biggest reasons consolidation isn't as effective in spirits is because the manufacturing infrastructure is very different from that of beer. Beer brands can change flavors with the same brewing equipment, giving brewers with scale more power. In spirits, making tequila, scotch, and vodka can be entirely different processes and require different distilleries. Customers can replace one spirit with another if prices get too high or tastes change, something that happens regularly.
We saw this replacement risk in the most recent results from Diageo, which showed scotch only growing 3% organically while the smaller gin and tequila businesses grew 16% and 43%, respectively . As tastes ebb and flow, competitors like Diageo can gain or lose market share depending on when their products are in favor with consumers. That puts a cap on how much the company can raise prices to grow earnings.
Why Diageo's stock is tasting a little sour
As much as I like the stability of the spirits business long-term, I don't think it's worth paying a big premium for a company like Diageo. And with shares trading at 24 times earnings, the price for the stock is steep. The dividend of 2.4% is also not all that appealing compared to other stable value stocks.
I wouldn't short Diageo's shares because there's no fundamental flaw in the business, but to be a buyer I would need to see more value than shares are showing today, which will keep me out of the stock for now.
10 stocks we like better than Diageo
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Travis Hoium has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Anheuser-Busch InBev NV. The Motley Fool owns shares of Molson Coors Brewing. 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.
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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One of the biggest players in the spirits business is Diageo (NYSE: DEO) , the company behind Johnnie Walker, Crown Royal, Ketel One, and Captain Morgan. DEO Revenue (TTM) data by YCharts However, while spirits will be a steady business, I find it hard to see Diageo as a big winner for investors long-term. We saw this replacement risk in the most recent results from Diageo, which showed scotch only growing 3% organically while the smaller gin and tequila businesses grew 16% and 43%, respectively .
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One of the biggest players in the spirits business is Diageo (NYSE: DEO) , the company behind Johnnie Walker, Crown Royal, Ketel One, and Captain Morgan. DEO Revenue (TTM) data by YCharts However, while spirits will be a steady business, I find it hard to see Diageo as a big winner for investors long-term. Why big gains are hard in spirits Spirits consumption is growing slowly -- Diageo's volume was up 1.3% in 2016, 1.1% in 2017, and 1.8% in the first half of fiscal 2018 -- and there's no indication volume growth is going to be higher than low-single digits long-term.
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One of the biggest players in the spirits business is Diageo (NYSE: DEO) , the company behind Johnnie Walker, Crown Royal, Ketel One, and Captain Morgan. DEO Revenue (TTM) data by YCharts However, while spirits will be a steady business, I find it hard to see Diageo as a big winner for investors long-term. Why big gains are hard in spirits Spirits consumption is growing slowly -- Diageo's volume was up 1.3% in 2016, 1.1% in 2017, and 1.8% in the first half of fiscal 2018 -- and there's no indication volume growth is going to be higher than low-single digits long-term.
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DEO Revenue (TTM) data by YCharts However, while spirits will be a steady business, I find it hard to see Diageo as a big winner for investors long-term. One of the biggest players in the spirits business is Diageo (NYSE: DEO) , the company behind Johnnie Walker, Crown Royal, Ketel One, and Captain Morgan. Why Diageo's stock is tasting a little sour As much as I like the stability of the spirits business long-term, I don't think it's worth paying a big premium for a company like Diageo.
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727868.0
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2018-06-12 00:00:00 UTC
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Is Molson Coors Brewing Co Stock Set to Rebound 20%?
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DEO
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https://www.nasdaq.com/articles/molson-coors-brewing-co-stock-set-rebound-20-2018-06-12
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investors in Molson Coors Brewing Co (NYSE: TAP ) have to be disappointed so far this year. TAP stock is down more than 22% so far in 2018 and more than 27% over the past 12 months. This is compared to the 4.25% year-to-date gain in the SPDR S&P 500 ETF Trust (NYSEARCA: SPY ). While Molson now yields 2.6%, investors have to be asking themselves if it's time to pass on this brew and look for a more refreshing stock.
I certainly won't make the case that Molson Coors is the best stock in the world to own. That said, it's far from the worst stock too.
While a similar peer in Anheuser Busch Inbev NV (ADR) (NYSE: BUD ) has been struggling too, others have been thriving. After a big decline, Boston Beer Company Inc (NYSE: SAM ) has doubled from its summer 2017 lows. Constellation Brands, Inc. (NYSE: STZ ) is no longer churning out the big gains it once was, but it's still doing well too. Diageo plc (ADR) (NYSE: DEO ) shouldn't be left out of the winner's circle either.
The Top 20 Stocks of 2018
With that in mind, does it make sense to own TAP stock when we could own winners like this? For some, it may make sense to sell TAP and book their losses, only to roll into a similar name - avoiding the wash rule - and reap the benefits of an industry rebound. For others though, holding onto or buying Molson makes more sense. Let's look at TAP stock a little more closely.
Valuing Molson Coors Brewing Co
Analysts expect Molson Coors Brewing Co to earn $4.89 per share this year. That's up about 9.5% from the year prior and values TAP stock at 13 times this year's earnings. For 2019, analysts expect further earnings growth of 5.3%, despite essentially flat revenue growth this year and next.
Missing on earnings and revenue estimates last quarter marked another unimpressive three months of business. Management said there's "overall industry softness," an interesting remark given the success of some other companies. Admittedly, craft beers and Mexican cervezas are doing well, obviously at the expense of traditional pilsners.
That said, with a strong economy many consumers may feel more comfortable reaching for a bottle of Goose over Smirnoff or Johnny Walker over Jameson. In the same hand, perhaps picking up that 18-pack of Corona and grabbing a few limes is worth the extra few bucks vs. a case of Coors Light.
In any regard, there is some growth, however small it may be, and 13 times earnings isn't that expensive. But most investors would likely agree that the valuation isn't so low they feel they need to back up the truck. I believe the argument comes down to owning TAP stock or ABC - "ABC" being SAM, DEO, STZ or any other stock not currently stuck in a rut.
Right now, investors are clearly opting for "ABC" over TAP.
Trading TAP Stock
The fundamentals here are clearly mixed. Obviously Molson isn't going out of business tomorrow, but brand volume is on the decline and growth is simply mediocre. The one plus is that earnings are growing in spite of flat revenue growth, meaning its margins should expand in 2018 and 2019.
With that in mind, let's get a better look at the charts.
Click to Enlarge
There are a few takeaways when looking at the five-year weekly chart of TAP stock. First, TAP stock has been in a descending channel since the third quarter of 2016. In May, shares finally got out of the channel, but unfortunately, they broke below channel support.
In fact, it fell so far, Molson even broke below long-term support near $62, a level that I feel is the other important takeaway from the chart. TAP stock broke below this level and consolidated for a few weeks near $60. This week, bulls took charge and ran Molson Coors higher, a very constructive move.
Bulls now have a great risk/reward. By buying TAP stock here, they can use a stop-loss near $61 to $62. Investors who are comfortable with a higher risk tolerance can use this year's low as their stop-loss too. Look for resistance near $68, the backside of its previous channel support. It would be preferable to see TAP stock get back into its previous channel, and then back above the $72.50-ish level from there.
10 Stocks Hedge Fund Billionaires Are Bullish On
Overall, the average analyst price target sits near $75, roughly 20% above current levels.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.
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The post Is Molson Coors Brewing Co Stock Set to Rebound 20%? 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.
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) (NYSE: DEO ) shouldn't be left out of the winner's circle either. I believe the argument comes down to owning TAP stock or ABC - "ABC" being SAM, DEO, STZ or any other stock not currently stuck in a rut. For some, it may make sense to sell TAP and book their losses, only to roll into a similar name - avoiding the wash rule - and reap the benefits of an industry rebound.
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Diageo plc (ADR) (NYSE: DEO ) shouldn't be left out of the winner's circle either. I believe the argument comes down to owning TAP stock or ABC - "ABC" being SAM, DEO, STZ or any other stock not currently stuck in a rut. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investors in Molson Coors Brewing Co (NYSE: TAP ) have to be disappointed so far this year.
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Diageo plc (ADR) (NYSE: DEO ) shouldn't be left out of the winner's circle either. I believe the argument comes down to owning TAP stock or ABC - "ABC" being SAM, DEO, STZ or any other stock not currently stuck in a rut. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investors in Molson Coors Brewing Co (NYSE: TAP ) have to be disappointed so far this year.
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Diageo plc (ADR) (NYSE: DEO ) shouldn't be left out of the winner's circle either. I believe the argument comes down to owning TAP stock or ABC - "ABC" being SAM, DEO, STZ or any other stock not currently stuck in a rut. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investors in Molson Coors Brewing Co (NYSE: TAP ) have to be disappointed so far this year.
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727869.0
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2018-06-08 00:00:00 UTC
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Why Diageo Wants to Dump $1 Billion Worth of Spirits
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DEO
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https://www.nasdaq.com/articles/why-diageo-wants-dump-1-billion-worth-spirits-2018-06-08
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nan
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Global distillery Diageo (NYSE: DEO) isn't going around with guns a-blazing, but its reason for pursuing the premium and super-premium spirits market is the same as that offered by infamous outlaw Willie Sutton on why he robbed banks: "Because that's where the money is."
Diageo was recently reported to be interested in selling off about $1 billion worth of assets, including Canadian whisky Seagrams VO, Myer's rum, Goldschlager cinnamon schnapps, Popov vodka, and the licorice-flavored Romana Sambuca liqueur. The move would make the distiller even more focused on its high-end drinks business.
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Global distillery Diageo (NYSE: DEO) isn't going around with guns a-blazing, but its reason for pursuing the premium and super-premium spirits market is the same as that offered by infamous outlaw Willie Sutton on why he robbed banks: "Because that's where the money is." Diageo was recently reported to be interested in selling off about $1 billion worth of assets, including Canadian whisky Seagrams VO, Myer's rum, Goldschlager cinnamon schnapps, Popov vodka, and the licorice-flavored Romana Sambuca liqueur. The move would make the distiller even more focused on its high-end drinks business.
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Global distillery Diageo (NYSE: DEO) isn't going around with guns a-blazing, but its reason for pursuing the premium and super-premium spirits market is the same as that offered by infamous outlaw Willie Sutton on why he robbed banks: "Because that's where the money is." Diageo was recently reported to be interested in selling off about $1 billion worth of assets, including Canadian whisky Seagrams VO, Myer's rum, Goldschlager cinnamon schnapps, Popov vodka, and the licorice-flavored Romana Sambuca liqueur. The move would make the distiller even more focused on its high-end drinks business.
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Global distillery Diageo (NYSE: DEO) isn't going around with guns a-blazing, but its reason for pursuing the premium and super-premium spirits market is the same as that offered by infamous outlaw Willie Sutton on why he robbed banks: "Because that's where the money is." Diageo was recently reported to be interested in selling off about $1 billion worth of assets, including Canadian whisky Seagrams VO, Myer's rum, Goldschlager cinnamon schnapps, Popov vodka, and the licorice-flavored Romana Sambuca liqueur. The move would make the distiller even more focused on its high-end drinks business.
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Global distillery Diageo (NYSE: DEO) isn't going around with guns a-blazing, but its reason for pursuing the premium and super-premium spirits market is the same as that offered by infamous outlaw Willie Sutton on why he robbed banks: "Because that's where the money is." Diageo was recently reported to be interested in selling off about $1 billion worth of assets, including Canadian whisky Seagrams VO, Myer's rum, Goldschlager cinnamon schnapps, Popov vodka, and the licorice-flavored Romana Sambuca liqueur. The move would make the distiller even more focused on its high-end drinks business.
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2018-05-18 00:00:00 UTC
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3 Dividend Stocks That Could Be Perfect for Retirement
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https://www.nasdaq.com/articles/3-dividend-stocks-could-be-perfect-retirement-2018-05-18
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Whether you're already retired and looking to supplement your income, or still building your retirement nest egg, dividend stocks can be ideal investments. There's a lot of evidence that high-quality dividend stocks are market-beating investments, as long as you're willing and able to hold them for the long term, through thick and thin.
With an eye on helping retirement savers -- and retirees -- find the best dividend investments, three Motley Fool investors who know a thing or two about dividend stocks put together some of their best ideas. They came up with global infrastructure leader Brookfield Infrastructure Partners LP (NYSE: BIP) , distillery giant Diageo plc (ADR) (NYSE: DEO) , and renewable energy producer Pattern Energy Group Inc. (NASDAQ: PEGI) .
Keep reading to learn why they picked these three dividend stocks to help you reach your retirement goals.
A proven business model focused on dividends
Neha Chamaria(Brookfield Infrastructure Partners): Shares of Brookfield Infrastructure Partners are down almost 12% year to date and yield a solid 4.6% in dividends, as of this writing. That makes the stock a smart choice, for the simple reason that Brookfield offers both stable and steadily growing dividends -- prerequisites for retirees looking for additional income.
In its most recent quarter, Brookfield grew its funds from operations (FFO) by 27.6% year over year, thanks largely to recent acquisitions . As an infrastructure asset company, Brookfield acquires quality yet distressed assets like power transmission lines, railroads, toll roads, gas pipelines, and telecommunication towers, and then turns them around. Brookfield's capabilities are reflected in its operational performance history -- in just the past five years, the company's FFO has grown more than threefold.
Strong cash flows have supported Brookfield's dividend growth, with the latest increase coming in at 8%. In the long run, the company aims to increase its dividend annually by 5% to 9% and generate 12% to 15% returns on equity.
While the stock can be volatile, Brookfield holds significant growth potential, thanks to a business model where the bulk of its revenue comes from regulated or contracted sources, a strong liquidity position, and commitment to shareholders. Over the years, Brookfield's dividend growth and yield should prove to be a winning combination for retirees.
There is one caveat with Brookfield Infrastructure: As a master limited partnership (MLP), it's not an ideal investment to hold inside an IRA or 401(k) due to tax-law particulars . But if you're looking to invest in a taxable account -- for instance, with proceeds from a required minimum distribution that you plan to reinvest -- it can make for an excellent source of dependable income in retirement.
Distilling a leader down to its essence
Rich Duprey(Diageo): One of the world's largest distillers, Diageo is the leading maker of Scotch whisky, which represents more than a quarter of Diageo's $15.6 billion in annual sales. The top-selling Johnnie Walker brand has been most responsible for Diageo's growth, but previously it was helped by vodka sales from brands like Smirnoff, Ciroc, and Ketel One. Vodka, though, has fallen in recent years, and today represents 11% of Diageo's sales.
Because the "browns" of the spirits world -- whiskey, bourbon, rye -- are the hot drinks of the moment, particularly among women, Diageo has been able to ride that wave higher. It recently launched a " Jane Walker " label to capitalize on this trend. Recent studies suggest that women not only drink as much alcohol as men do, but also that younger women may possibly be consuming even more.
At 22 times trailing earnings and 19 times next year's estimates, Diageo is being discounted by the market compared to other distillers, despite its premier position in the industry. Almost all its brands can be found in the top spot or second place in markets around the globe. Other well-known brands it owns include Crown Royal whisky and Captain Morgan rum.
Its dividend of $3.46 per share currently yields a solid 2.4% annually, and with analysts expecting earnings to grow 12% this year, Diageo should be able to continue delivering sales, earnings, and dividend growth for years. That's a retirement portfolio mix worth toasting.
The headwinds are turning
Jason Hall (Pattern Energy): With a 9.3% yield at recent prices following the 31% decline in its stock price over the past year, independent renewable-energy producer Pattern Energy looks like a yield trap on the surface. And it seems blatantly obvious why investors have sold out of the stock recently, when you consider two factors. First, changes to tax equity investing rules in the U.S. have already started to hurt funding for new projects; second, rising interest rates could affect Pattern Energy's access to capital.
But my analysis leads me to a very different conclusion: Now is an excellent time to buy Pattern, and I think the company is going to be able to maintain its payout in the near term, and start increasing it again within a few years.
Pattern generates sufficient cash flow -- measured as cash available for distribution (CADF) -- to maintain its dividend. And it operates in Canada, Japan, and South America, as well as the U.S., dampening the impact of tax law changes.
Furthermore, CEO Mike Garland said Pattern "... is in an excellent position to make further acquisitions without raising any common equity, allowing us to grow our CAFD per share." With other sources of capital at its disposal, this alleviates one of the risks that would have led to a dividend cut: selling shares of its own stock.
Don't get me wrong. This isn't a zero-risk investment, and it shouldn't be counted on for income you can't live without. But if you can stomach a small amount of risk that the payout might be cut, the opportunity to capture a very high yield is worth it, in my book. Add in the long-term growth prospects as renewable energy takes more share from fossil fuels, and Pattern is an excellent investment for retirement savers.
10 stocks we like better than Pattern Energy Group
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Pattern Energy Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of May 8, 2018
Jason Hall owns shares of Brookfield Infrastructure Partners and Pattern Energy Group. Neha Chamaria has no position in any of the stocks mentioned. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners and 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.
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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They came up with global infrastructure leader Brookfield Infrastructure Partners LP (NYSE: BIP) , distillery giant Diageo plc (ADR) (NYSE: DEO) , and renewable energy producer Pattern Energy Group Inc. (NASDAQ: PEGI) . That makes the stock a smart choice, for the simple reason that Brookfield offers both stable and steadily growing dividends -- prerequisites for retirees looking for additional income. While the stock can be volatile, Brookfield holds significant growth potential, thanks to a business model where the bulk of its revenue comes from regulated or contracted sources, a strong liquidity position, and commitment to shareholders.
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They came up with global infrastructure leader Brookfield Infrastructure Partners LP (NYSE: BIP) , distillery giant Diageo plc (ADR) (NYSE: DEO) , and renewable energy producer Pattern Energy Group Inc. (NASDAQ: PEGI) . A proven business model focused on dividends Neha Chamaria(Brookfield Infrastructure Partners): Shares of Brookfield Infrastructure Partners are down almost 12% year to date and yield a solid 4.6% in dividends, as of this writing. *Stock Advisor returns as of May 8, 2018 Jason Hall owns shares of Brookfield Infrastructure Partners and Pattern Energy Group.
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They came up with global infrastructure leader Brookfield Infrastructure Partners LP (NYSE: BIP) , distillery giant Diageo plc (ADR) (NYSE: DEO) , and renewable energy producer Pattern Energy Group Inc. (NASDAQ: PEGI) . A proven business model focused on dividends Neha Chamaria(Brookfield Infrastructure Partners): Shares of Brookfield Infrastructure Partners are down almost 12% year to date and yield a solid 4.6% in dividends, as of this writing. Its dividend of $3.46 per share currently yields a solid 2.4% annually, and with analysts expecting earnings to grow 12% this year, Diageo should be able to continue delivering sales, earnings, and dividend growth for years.
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They came up with global infrastructure leader Brookfield Infrastructure Partners LP (NYSE: BIP) , distillery giant Diageo plc (ADR) (NYSE: DEO) , and renewable energy producer Pattern Energy Group Inc. (NASDAQ: PEGI) . Whether you're already retired and looking to supplement your income, or still building your retirement nest egg, dividend stocks can be ideal investments. In its most recent quarter, Brookfield grew its funds from operations (FFO) by 27.6% year over year, thanks largely to recent acquisitions .
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2018-04-28 00:00:00 UTC
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Retired? 3 Stocks You Should Consider Buying
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https://www.nasdaq.com/articles/retired-3-stocks-you-should-consider-buying-2018-04-28
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Because of the market's turbulence, many retirees avoid stocks. That could be a mistake . The average retirement lasts about two decades in the U.S. That's a long time to have to self-fund expenses, and stocks are hands down the best-returning asset class over time.
Reducing unnecessary volatility is nevertheless important, and owning steadily growing businesses that pay reliable dividends is a way to fight the ups and downs. For investors seeking new additions to their income-generating investments, Apple (NASDAQ: AAPL) , Texas Roadhouse (NASDAQ: TXRH) , and Diageo (NYSE: DEO) may fit the bill.
Payday from a tech giant
Dividends are rare in the fast-growing tech industry, but Apple stock is an exception. The current yield is only 1.4%, but that's not too shabby considering the payout was only initiated in 2012. It has been raised every year since, steadily climbing by more than 60%. Add to that a share repurchase program that has reduced share count by over 3% in the last year, and suddenly Apple looks a lot more lucrative to conservative investors.
The iPhone was a decade-long catalyst for growth, but that business has lately begun to slow down. However, there's no reason to believe Apple's days of expansion are over. The company has moved beyond smartphones, diversifying into smartwatches, home assistants, and cloud computing services like TV and music streaming. As a result, Apple stock has been able to keep steadily rising even though it's already worth over $840 billion. Revenue and profits grew 13% and 16%, respectively, last quarter. CEO Tim Cook and company see the top line again growing in the midteens in the quarter ahead.
America loves this casual restaurant chain
The restaurant industry has had it rough the last couple of years as overexpansion has led to lower foot traffic in many areas. Texas Roadhouse has bucked the trend, though, focusing on oft-ignored suburban America. The chain's combination of fun atmosphere and big portions at value prices has been winning with diners, supporting 65 new restaurant openings the last three years -- a 13% increase in locations -- and annual same-store sales increases of no less than 3.6% over that same period.
Like Apple, Roadhouse isn't going to win any awards for best dividend payer; the current yield is 1.7%. However, much like Apple, the dividend is on the rise. Management doled out a 19% raise last quarter. The chain is still expanding, too, with another 30 openings expected in 2018. Up to seven of those will be Bubba's 33, a sports bar the company has been testing, adding another layer to the business that could keep operations expanding in the years ahead.
The reliability of the alcohol industry
Maybe you haven't heard of Diageo, but it's likely you've heard of some of its brands. The global alcohol maker owns a diverse stable of names like Johnnie Walker, Smirnoff, Captain Morgan, Baileys, and Guinness, among others. It produces 6.5 billion liters of alcohol a year, making Diageo the world's largest distiller. With operations spanning 180 countries and production in spirits, beer, and wine, Diageo covers a lot of ground and has provided consistent returns over the years.
So, Diageo isn't going to blow anyone away with its growth numbers. Revenues are up only 9% in the last decade. However, sales are expected to accelerate in the current fiscal year with an expected rise in the mid-single digits, and a 9% year-to-date increase in earnings per share was reported. Diageo's dividend currently yields 2.4%.
Even retired investors should consider adding stocks to their investment mix. Given time, they can really pay off, even in the midst of economic turmoil like we've seen in the last decade.
Data by YCharts.
Stable business models are a good place to start, as the above total-return chart for Apple, Texas Roadhouse, and Diageo demonstrates. Add in some steady business expansion and dividend increases, and patient investors get rewards that sometimes equate to triple-digit percentage gains.
10 stocks we like better than Apple
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of April 2, 2018
Nicholas Rossolillo owns shares of Apple and Texas Roadhouse. The Motley Fool owns shares of and recommends Apple and Texas Roadhouse. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. 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.
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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For investors seeking new additions to their income-generating investments, Apple (NASDAQ: AAPL) , Texas Roadhouse (NASDAQ: TXRH) , and Diageo (NYSE: DEO) may fit the bill. Reducing unnecessary volatility is nevertheless important, and owning steadily growing businesses that pay reliable dividends is a way to fight the ups and downs. The global alcohol maker owns a diverse stable of names like Johnnie Walker, Smirnoff, Captain Morgan, Baileys, and Guinness, among others.
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For investors seeking new additions to their income-generating investments, Apple (NASDAQ: AAPL) , Texas Roadhouse (NASDAQ: TXRH) , and Diageo (NYSE: DEO) may fit the bill. Reducing unnecessary volatility is nevertheless important, and owning steadily growing businesses that pay reliable dividends is a way to fight the ups and downs. The Motley Fool owns shares of and recommends Apple and Texas Roadhouse.
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For investors seeking new additions to their income-generating investments, Apple (NASDAQ: AAPL) , Texas Roadhouse (NASDAQ: TXRH) , and Diageo (NYSE: DEO) may fit the bill. 10 stocks we like better than Apple When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. *Stock Advisor returns as of April 2, 2018 Nicholas Rossolillo owns shares of Apple and Texas Roadhouse.
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For investors seeking new additions to their income-generating investments, Apple (NASDAQ: AAPL) , Texas Roadhouse (NASDAQ: TXRH) , and Diageo (NYSE: DEO) may fit the bill. However, much like Apple, the dividend is on the rise. So, Diageo isn't going to blow anyone away with its growth numbers.
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2018-04-24 00:00:00 UTC
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The Zacks Analyst Blog Highlights: BlackRock, Charter Communications, Intuitive, Statoil and Diageo
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-blackrock-charter-communications-intuitive-statoil-and
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For Immediate Release
Chicago, IL - April 24, 2018 - 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 BlackRockBLK , Charter CommunicationsCHTR , Intuitive SurgicalISRG , StatoilSTO and DiageoDEO .
Here are highlights from Monday's Analyst Blog:
Top Stock Reports for BlackRock, Charter Communications and Intuitive Surgical
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 BlackRock, Charter Communications and Intuitive Surgical. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
BlackRock 's shares have outperformed the Zacks Investment Management industry in the last six months, (+10.7% vs. -1.5%). This performance was supported by impressive earnings surprise history as the company surpassed expectations in three of the trailing four quarters. Its first-quarter 2018 results were supported by higher revenues and growth in assets under management (AUM).
The company is undertaking initiatives to restructure its actively managed equities business and expand globally via acquisitions to further boost top-line growth. Also, its efficient capital deployment activities will continue to enhance shareholder value. However, mounting expenses, mainly due to continued rise in marketing costs, might hurt the bottom-line growth to some extent. The company's high dependence on overseas revenues remains a matter of concern.
Shares of Charter Communications have outperformed the Zacks Cable TV industry over the past three months (-17.4% vs. -18.1%). Charter's residential and commercial internet and voice customer growth continues to accelerate, which is evident from the revenue growth and subscriber gain. The Zacks analyst thinks the recently announced partnership with Comcast to develop back-end software to support services for Xfinity and Spectrum mobile offerings is significantly positive for the company's growth prospects.
The collaboration will help in saving costs for both the companies. However, the company continues to struggle due to sluggish growth in a saturated and competitive multi-channel U.S. video market. Charter also faces stiff competition from online TV streaming service providers. The company's high debt level and consolidation-related woes are other potential hazards.
Strong Buy-ranked Intuitive Surgical 's shares have outperformed the Zacks Medical Instruments industry over the last year, gaining +66.5% vs +1%. Intuitive Surgical ended the first quarter of 2018 on a solid note, with both earnings and revenues surpassing expectations. The company's flagship da Vinci procedures recorded solid growth and holds promise for the quarters ahead.
The company also saw solid expansion outside the United States in the recent past. A suite of regulatory approvals buoys optimism. Solid growth in prostatectomy procedure volumes lent Intuitive Surgical a competitive edge in the broader prostate surgery market. However, the company expects U.S. sales to decline in the quarters ahead, which raises concern.
Furthermore, looming foreign exchange volatility also adds to the woes. Intense competition in niche space and long sale and purchase order cycles of da Vinci unit has been currently plaguing the company.
Other noteworthy reports we are featuring today include Statoil and Diageo.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Zacks Investment Research
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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Diageo plc (DEO): Free Stock Analysis Report
Charter Communications, Inc. (CHTR): Free Stock Analysis Report
BlackRock, Inc. (BLK): Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
Statoil ASA (STO): 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.
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 BlackRockBLK , Charter CommunicationsCHTR , Intuitive SurgicalISRG , StatoilSTO and DiageoDEO . However, the company continues to struggle due to sluggish growth in a saturated and competitive multi-channel U.S. video market. Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Charter Communications, Inc. (CHTR): Free Stock Analysis Report BlackRock, Inc. (BLK): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report Statoil ASA (STO): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Charter Communications, Inc. (CHTR): Free Stock Analysis Report BlackRock, Inc. (BLK): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report Statoil ASA (STO): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include BlackRockBLK , Charter CommunicationsCHTR , Intuitive SurgicalISRG , StatoilSTO and DiageoDEO . However, the company continues to struggle due to sluggish growth in a saturated and competitive multi-channel U.S. video market.
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Charter Communications, Inc. (CHTR): Free Stock Analysis Report BlackRock, Inc. (BLK): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report Statoil ASA (STO): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include BlackRockBLK , Charter CommunicationsCHTR , Intuitive SurgicalISRG , StatoilSTO and DiageoDEO . However, the company continues to struggle due to sluggish growth in a saturated and competitive multi-channel U.S. video market.
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Stocks recently featured in the blog include BlackRockBLK , Charter CommunicationsCHTR , Intuitive SurgicalISRG , StatoilSTO and DiageoDEO . However, the company continues to struggle due to sluggish growth in a saturated and competitive multi-channel U.S. video market. Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Charter Communications, Inc. (CHTR): Free Stock Analysis Report BlackRock, Inc. (BLK): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report Statoil ASA (STO): Free Stock Analysis Report To read this article on Zacks.com click here.
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2018-04-23 00:00:00 UTC
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Top Stock Reports for BlackRock, Charter Communications & Intuitive Surgical
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https://www.nasdaq.com/articles/top-stock-reports-blackrock-charter-communications-intuitive-surgical-2018-04-23
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Monday, April 23, 2018
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 BlackRock (BLK), Charter Communications (CHTR) and Intuitive Surgical (ISRG). 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 >>>
BlackRock 's shares have outperformed the Zacks Investment Management industry in the last six months, (+10.7% vs. -1.5%). This performance was supported by impressive earnings surprise history as the company surpassed expectations in three of the trailing four quarters. Its first-quarter 2018 results were supported by higher revenues and growth in assets under management (AUM).
The company is undertaking initiatives to restructure its actively managed equities business and expand globally via acquisitions to further boost top-line growth. Also, its efficient capital deployment activities will continue to enhance shareholder value. However, mounting expenses, mainly due to continued rise in marketing costs, might hurt the bottom-line growth to some extent. The company's high dependence on overseas revenues remains a matter of concern.
(You can read the full research report on BlackRock here >>> ).
Shares of Charter Communications have outperformed the Zacks Cable TV industry over the past three months (-17.4% vs. -18.1%). Charter's residential and commercial internet and voice customer growth continues to accelerate, which is evident from the revenue growth and subscriber gain. The Zacks analyst thinks the recently announced partnership with Comcast to develop back-end software to support services for Xfinity and Spectrum mobile offerings is significantly positive for the company's growth prospects.
The collaboration will help in saving costs for both the companies. However, the company continues to struggle due to sluggish growth in a saturated and competitive multi-channel U.S. video market. Charter also faces stiff competition from online TV streaming service providers. The company's high debt level and consolidation-related woes are other potential hazards.
(You can read the full research report on Charter Communications here >>> ).
Strong Buy-ranked Intuitive Surgical 's shares have outperformed the Zacks Medical Instruments industry over the last year, gaining +66.5% vs +1%. Intuitive Surgical ended the first quarter of 2018 on a solid note, with both earnings and revenues surpassing expectations. The company's flagship da Vinci procedures recorded solid growth and holds promise for the quarters ahead.
The company also saw solid expansion outside the United States in the recent past. A suite of regulatory approvals buoys optimism. Solid growth in prostatectomy procedure volumes lent Intuitive Surgical a competitive edge in the broader prostate surgery market. However, the company expects U.S. sales to decline in the quarters ahead, which raises concern.
Furthermore, looming foreign exchange volatility also adds to the woes. Intense competition in niche space and long sale and purchase order cycles of da Vinci unit has been currently plaguing the company.
(You can read the full research report on Intuitive Surgical here >>> ).
Other noteworthy reports we are featuring today include Statoil (STO), Diageo (DEO) and Aon (AON).
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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 Trendsand Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Acquisitions Support BlackRock (BLK), Marketing Costs a Woe
Subscriber Gains, Wireless Initiatives Benefit Charter (CHTR)
Intuitive Surgical (ISRG) Gains Ground on da Vinci Platform
Featured Reports
Acquisitions, Productivity Actions Buoy Celanese (CE)
The Zacks analyst thinks that Nilit and Omni Plastics acquisitions as well as operational cost savings through productivity actions will drive Celanese's profitability in FY18.
Restructuring to Aid Valmont (VMI), High Input Costs a Woe
According to the Zacks analyst, Valmont should gain from its restructuring actions that are geared to improve productivity amid headwinds from raw material cost inflation in 2018.
Robust Used-Car Market & Store Expansion Aid CarMax (KMX)
Per the Zacks analyst, improved store sales & digital initiatives are aiding CarMax's comparable-store used vehicle sales. The rise in sales is getting complimented by aggressive store expansion.
Buyouts Aids Stanley Black (SWK), Commodity Inflation Drags
Per a Zacks analyst, Stanley Black & Decker's Nelson Fastener buyout will fortify its Engineered Fastening business and prove accretive to earnings in 2018. Commodity inflation remains a drag.
Aon (AON) Gains from Strategic Alliances, Debt Level Hurts
Per the Zacks analyst, Aon largely benefits from its partnerships; the recent one with HP to combat cyber attacks is worth a mention here.
Cost Control & Strategic Acquisitions Aid BancorpSouth (BXS)
Per Zacks analyst, BancorpSouth's efforts to drive operational efficiency through cost-control measures and strategic deals remain encouraging.
International Business Aids Skechers (SKX), Q2 View Worries
Per the Zacks analyst, Skechers' international business remains a key sales driver, apart from product innovation.
New Upgrades
Rail International unit, Dividends Aid GATX Corp. (GATX)
The Zacks analyst appreciates the company's efforts to reward shareholders. Improvement in the Rail International unit's profit is also encouraging.
Rise in Customers, Investments to Drive WEC Energy (WEC)
Per the Zacks analyst WEC Energy's plans to invest $11.8B to fortify its electric and gas delivery operation and energy infrastructure by 2022, will help it to serve its rising customer base.
Statoil (STO) to Benefit from Norwegian Upstream Projects
The Zacks analyst expects Statoil to generate significant cash flow from new upstream projects in the Norwegian Continental Shelf.
New Downgrades
Low Rates, Legal Costs Remain Woes for Deutsche Bank (DB)
Per Zacks analyst, Deutsche Bank's revenues continue to remain under pressure due to the prevailing low rate environment in the European economy. Also, pending legal matters will keep costs elevated.
Stringent Government Laws Remain Woes for DTE Energy (DTE)
Per the Zacks analyst DTE Energy faces stringent government regulations for curbing emissions. Such new legislation can change how the company operates its business and lead to additional expenses.
Diageo's (DEO) Top Line Remains Troubled by Currency Exposure
Diageo sales were hit by currency woes in first-half fiscal 2018, given its solid global presence. Thus, the Zacks analyst expects adverse currency movements to remain a threat for Diageo's top line.
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
Statoil ASA (STO): Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
Charter Communications, Inc. (CHTR): Free Stock Analysis Report
BlackRock, Inc. (BLK): Free Stock Analysis Report
Aon plc (AON): 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.
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, the company continues to struggle due to sluggish growth in a saturated and competitive multi-channel U.S. video market. Other noteworthy reports we are featuring today include Statoil (STO), Diageo (DEO) and Aon (AON). Diageo's (DEO) Top Line Remains Troubled by Currency Exposure Diageo sales were hit by currency woes in first-half fiscal 2018, given its solid global presence.
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Click to get this free report Statoil ASA (STO): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Charter Communications, Inc. (CHTR): Free Stock Analysis Report BlackRock, Inc. (BLK): Free Stock Analysis Report Aon plc (AON): Free Stock Analysis Report To read this article on Zacks.com click here. However, the company continues to struggle due to sluggish growth in a saturated and competitive multi-channel U.S. video market. Other noteworthy reports we are featuring today include Statoil (STO), Diageo (DEO) and Aon (AON).
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Click to get this free report Statoil ASA (STO): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Charter Communications, Inc. (CHTR): Free Stock Analysis Report BlackRock, Inc. (BLK): Free Stock Analysis Report Aon plc (AON): Free Stock Analysis Report To read this article on Zacks.com click here. However, the company continues to struggle due to sluggish growth in a saturated and competitive multi-channel U.S. video market. Other noteworthy reports we are featuring today include Statoil (STO), Diageo (DEO) and Aon (AON).
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However, the company continues to struggle due to sluggish growth in a saturated and competitive multi-channel U.S. video market. Other noteworthy reports we are featuring today include Statoil (STO), Diageo (DEO) and Aon (AON). Diageo's (DEO) Top Line Remains Troubled by Currency Exposure Diageo sales were hit by currency woes in first-half fiscal 2018, given its solid global presence.
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2018-04-12 00:00:00 UTC
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Zacks Market Edge Highlights: Exxon, Diageo, GlaxoSmithKline, Micron and AMN
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DEO
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https://www.nasdaq.com/articles/zacks-market-edge-highlights%3A-exxon-diageo-glaxosmithkline-micron-and-amn-2018-04-12
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For Immediate Release
Chicago, IL - April 12, 2018 - Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/298742/what-all-investors-should-know-about-trade-deficits-and-recessions )
What All Investors Should Know About Trade Deficits and Recessions
Welcome to Episode #126 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by John Blank, Zacks Chief Equity Strategist and the Editor of the Large Cap Trader newsletter, to discuss the economic issues facing investors right now including the trade deficit and trade war talk and worries about a recession.
Are All Trade Deficits "Bad"?
John, a PhD economist, discusses why we have trade deficits in the first place.
If you're wondering what all the fuss is about, it's worth tuning in to get some straight economic talk on trade deficits, what fuels them, and how they can be dealt with.
We'll Get a Recession Soon Right?
There have been a lot of doom and gloomers on Twitter in 2018. The longer the US economy goes without a recession, and it has now been 9 years, the louder the bears get that one is imminent.
And that means stock investors should also be paying attention because historically the stock market has corrected during recessions.
Signals of a Coming Recession
Because investors don't want to be caught with their hands in the cookie jar at the start of a recession, they have been trying to gauge when the next recession may hit.
There are a lot of different "signals" out there but one that Tracey recently saw on Twitter was the Federal Reserve Bank of St. Louis FRED chart of the Passenger Car Registrations for the US.
John discusses what he thinks about "signals" and then gives his #1 recessionary signal that all investors should know.
Investment Ideas for 2018
What stocks are John and Tracey looking at as the first quarter earnings season gets underway?
1. Exxon Mobil Corp. XOM , the energy giant, trades with a forward P/E of just 15.5 with WTI crude near 3-year highs. Earnings are expected to rise 33.7% in 2018. It also pays a dividend yielding 4.1%.
2. Diageo plc DEO is one of the world's largest producers of spirits. It owns Smirnoff, Johnnie Walker, Baileys and Guinness brands, among others. Earnings are expected to rise 18.8% in fiscal 2018 and it too pays a dividend, yielding 2.4%.
3. GlaxoSmithKline plc GSK is a London-based drug company with a forward P/E of just 13.7. It pays a juicy dividend, currently yielding 6.3%.
4. Micron Technology MU continues to be dirt cheap. The semiconductor maker is trading with a forward P/E of just 4.3. Are investors missing the story here?
5. AMN Healthcare AMN is a mid-cap medical staffing company. Tracey likes it as it is likely immune from any trade war worries. Earnings are expected to jump 27% in 2018. Shares recently hit 5-year highs.
What else should you know about investing in volatile times?
Tune in to this week's podcast to find out.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion - more than a 3,800% increase in the previous 12 months. They're now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks' has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks. >>
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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.
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
GlaxoSmithKline plc (GSK): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
AMN Healthcare Services Inc (AMN): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Micron Technology, Inc. (MU): 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.
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 one of the world's largest producers of spirits. Click to get this free report GlaxoSmithKline plc (GSK): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. There are a lot of different "signals" out there but one that Tracey recently saw on Twitter was the Federal Reserve Bank of St. Louis FRED chart of the Passenger Car Registrations for the US.
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Click to get this free report GlaxoSmithKline plc (GSK): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc DEO is one of the world's largest producers of spirits. For Immediate Release Chicago, IL - April 12, 2018 - Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec.
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Click to get this free report GlaxoSmithKline plc (GSK): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc DEO is one of the world's largest producers of spirits. Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
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Diageo plc DEO is one of the world's largest producers of spirits. Click to get this free report GlaxoSmithKline plc (GSK): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/298742/what-all-investors-should-know-about-trade-deficits-and-recessions ) What All Investors Should Know About Trade Deficits and Recessions Welcome to Episode #126 of the Zacks Market Edge Podcast.
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2018-04-11 00:00:00 UTC
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What All Investors Should Know about Trade Deficits and Recessions
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DEO
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https://www.nasdaq.com/articles/what-all-investors-should-know-about-trade-deficits-and-recessions-2018-04-11
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nan
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(1: 00 ) - Breaking Down The Trade Deficit
(8: 00 ) - Recession Signals: When Should You Get Out?
(14: 15 ) - Summary Statistics: Nonfarm Payroll
(20: 05 ) - Where To Invest During Volatile Market Conditions
(27: 25 ) - Episode Roundup: XOM, DEO, GSK, MU, AMN
Podcast@Zacks.com
Welcome to Episode #126 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by John Blank, Zacks Chief Equity Strategist and the Editor of the Large Cap Trader newsletter, to discuss the economic issues facing investors right now including the trade deficit and trade war talk and worries about a recession.
Are All Trade Deficits "Bad"?
John, a PhD economist, discusses why we have trade deficits in the first place.
If you're wondering what all the fuss is about, it's worth tuning in to get some straight economic talk on trade deficits, what fuels them, and how they can be dealt with.
We'll Get a Recession Soon Right?
There have been a lot of doom and gloomers on Twitter in 2018. The longer the US economy goes without a recession, and it has now been 9 years, the louder the bears get that one is imminent.
And that means stock investors should also be paying attention because historically the stock market has corrected during recessions.
Signals of a Coming Recession
Because investors don't want to be caught with their hands in the cookie jar at the start of a recession, they have been trying to gauge when the next recession may hit.
There are a lot of different "signals" out there but one that Tracey recently saw on Twitter was the Federal Reserve Bank of St. Louis FRED chart of the Passenger Car Registrations for the US.
The gray bars indicate a recession. The number of registrations spiked into the negative just before the recessions hit. It's been in the negative for the last couple of years as well.
John discusses what he thinks about "signals" and then gives his #1 recessionary signal that all investors should know.
Investment Ideas for 2018
What stocks are John and Tracey looking at as the first quarter earnings season gets underway?
1. Exxon Mobil Corp. (XOM) , the energy giant, trades with a forward P/E of just 15.5 with WTI crude near 3-year highs. Earnings are expected to rise 33.7% in 2018. It also pays a dividend yielding 4.1%.
2. Diageo plc (DEO) is one of the world's largest producers of spirits. It owns Smirnoff, Johnnie Walker, Baileys and Guinness brands, among others. Earnings are expected to rise 18.8% in fiscal 2018 and it too pays a dividend, yielding 2.4%.
3. GlaxoSmithKline plc (GSK) is a London-based drug company with a forward P/E of just 13.7. It pays a juicy dividend, currently yielding 6.3%.
4. Micron Technology (MU) continues to be dirt cheap. The semiconductor maker is trading with a forward P/E of just 4.3. Are investors missing the story here?
5. AMN Healthcare (AMN) is a mid-cap medical staffing company. Tracey likes it as it is likely immune from any trade war worries. Earnings are expected to jump 27% in 2018. Shares recently hit 5-year highs.
What else should you know about investing in volatile times?
Tune in to this week's podcast to find out.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion - more than a 3,800% increase in the previous 12 months. They're now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks' has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks. >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GlaxoSmithKline plc (GSK): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
AMN Healthcare Services Inc (AMN): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Micron Technology, Inc. (MU): 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.
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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(14: 15 ) - Summary Statistics: Nonfarm Payroll (20: 05 ) - Where To Invest During Volatile Market Conditions (27: 25 ) - Episode Roundup: XOM, DEO, GSK, MU, AMN Podcast@Zacks.com Welcome to Episode #126 of the Zacks Market Edge Podcast. Diageo plc (DEO) is one of the world's largest producers of spirits. Click to get this free report GlaxoSmithKline plc (GSK): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here.
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(14: 15 ) - Summary Statistics: Nonfarm Payroll (20: 05 ) - Where To Invest During Volatile Market Conditions (27: 25 ) - Episode Roundup: XOM, DEO, GSK, MU, AMN Podcast@Zacks.com Welcome to Episode #126 of the Zacks Market Edge Podcast. Click to get this free report GlaxoSmithKline plc (GSK): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc (DEO) is one of the world's largest producers of spirits.
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Click to get this free report GlaxoSmithKline plc (GSK): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here. (14: 15 ) - Summary Statistics: Nonfarm Payroll (20: 05 ) - Where To Invest During Volatile Market Conditions (27: 25 ) - Episode Roundup: XOM, DEO, GSK, MU, AMN Podcast@Zacks.com Welcome to Episode #126 of the Zacks Market Edge Podcast. Diageo plc (DEO) is one of the world's largest producers of spirits.
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(14: 15 ) - Summary Statistics: Nonfarm Payroll (20: 05 ) - Where To Invest During Volatile Market Conditions (27: 25 ) - Episode Roundup: XOM, DEO, GSK, MU, AMN Podcast@Zacks.com Welcome to Episode #126 of the Zacks Market Edge Podcast. Diageo plc (DEO) is one of the world's largest producers of spirits. Click to get this free report GlaxoSmithKline plc (GSK): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report To read this article on Zacks.com click here.
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727876.0
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2018-04-06 00:00:00 UTC
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U.S. Beer Opens a Can of Worms: Will Its Fizz Remain?
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DEO
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https://www.nasdaq.com/articles/us-beer-opens-can-worms-will-its-fizz-remain-2018-04-06
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Fears of an imminent U.S.-China trade war have shaken up a number of sectors. The beer industry too hasn't been spared. President Donald Trump's imposition of a 10% tariff on imported aluminum from China is likely to have a devastating effect on the U.S. beer industry. Given that most of the beer produced in the United States today is packaged in cans, aluminum tariffs will only make things difficult for the country's beer industry.
The tariffs certainly aren't a good sign at a time when the U.S. beer industry is already witnessing a decline in domestic beer sales due to the changing preferences of consumers. Amid all these developments, the only good news is that U.S. craft beer exports rose in 2017.
And, yes, most of the exports were to Canada, the Asia-Pacific region (excluding Japan), the U.K. and Western Europe. That said, the beer industry stands a critical juncture, where higher exports are being cheered but lower domestic sales and aluminum tariffs are denting the confidence of brewers. Let's look at each of the good, the bad and the ugly sides of the U.S. beer industry in this tumultuous time.
The Good: Craft Beer Export Rise
International distribution of craft beer continued to increase in 2017, with U.S. export volumes rising 3.6% to $125.4 million, according to The Brewers Association (BA). Canada remains the biggest market for craft beer export, accounting for 51.3% of total exports. The Asia-Pacific region (excluding Japan) also witnessed robust growth of 7.4%.
The U.K., Sweden, Korea, Australia are the second, third, fourth and fifth biggest markets, accounting for 10.5%, 6.7%, 4.6% and 3.8% exports, respectively. The U.K. market grew 7.1%, accounting for 10.5% of beer exports compared with 10.1% in 2016. The Western Europe market grew 1.3%. However, despite 2017 setting a record, export growth slowed for the third consecutive year. U.S. craft beer exports increased 37%, 16% and 4.4% in 2014, 2015 and 2016, respectively.
Now, coming to the country that is breathing fire, China accounts for a meager 2.5% of U.S. craft beer export. Given this scenario, U.S. craft beer exporters might not really worry if China concocts any tariff on beer. Canada, U.K. Sweden, France and Australia are still the biggest consumers of Anheuser-Busch InBev SA/NV BUD , Molson Coors Brewing Company TAP , Craft Brew Alliance, Inc. BREW and Constellation Brands Inc STZ and Diageo plc DEO , who export their beer in bulk.
Moreover, the Asia-Pacific (excluding Japan) is being seen as lucrative market with its taste for craft beer developing over the last few years. Naturally, beer exporters will be looking to capture this market. Shares of Craft Brew Alliance, Constellation Brands, Diageo and Anheuser-Busch have increased 52.7%, 33.9%, 22.5% and 1%, respectively, in the last year.
The Bad: Domestic Beer Sales Decline
While craft beer export is soaring, beer sales are struggling at home. Per Alcohol and Tobacco Tax and Trade Bureau statistics published in a report by the Beer Institute (BI), the U.S. beer industry shipped 3.8 million fewer barrels in 2017 than 2016, reflecting a decline of 2.2%. According to Michael Uhrich, BI chief economist, this is "the largest percentage decrease in annual domestic beer shipment volume since 1954." The question is, are Americans consuming less beer? Well, beer sales volume fell 1% in the United States in 2017.
One of the primary reasons cited by analysts for this is that there is an increasing shift toward distilled spirits and wines, a category headwind. According to Vivien Azer, managing director and senior research analyst, Cowen and Co., consumers aged 21-34 were eight percentage points less likely to prefer beer than their 35-to-44-year-old counterparts.
However, amid this decline in domestic sales, preference for craft beer to draught beer has increased. This is perhaps because consumers are going for authenticity with a good brand story and increased flavor selection. The only good sign is that 2018 started on a good note for the beer industry, with a 3% sales increase through the first four weeks, according to retail data provider IRI Worldwide.
The Ugly: Aluminum Tariffs to Hurt Beer Industry
Americans prefer their beer in cans. More than 50% of the beer produced in the United States is packaged in cans. And with Trump imposing 10% tariff on imported aluminum from China, the situation certainly looks grim. According to the BI, 10% aluminum tariff would amount to $347,700,000 on beverages sold in cans. Additionally, this might also result in a loss of 20,000 jobs.
At the end of 2016, there were more than 53,000 breweries across the United States selling around 190 million barrels of beer. Of these, almost 60% of the beer is sold in aluminum packaging. United States currently imports around 52% of the aluminum used for manufacturing.
Given this scenario, large breweries like Molson Coors, Anheuser-Busch, Craft Brew Alliance, Constellation Brands will have to spend more on producing aluminum beer cans. Moreover, foreign brands like Heineken NV HEINY and Carlsberg AS CABGY that have manufacturing units in the United States will have to bear the brunt of the 10% aluminum tariff. Heineken has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
In Conclusion
Undoubtedly, the U.S. beer industry is walking on a tight rope. Declining domestic beer sales coupled with the imposition of a 10% duty on imported aluminum has heightened their worries. High production cost of beer will result in either the companies losing revenues or the price burden being passed on to consumers. The second certainly doesn't look a wise option given the dwindling domestic beer sales figure.
The only bright spot is that Americans are very good at recycling and beer cans produced in the country today contain approximately 70% recycled aluminum. Moreover, a rise in craft beer exports certainly will give a boost to the confidence of brewers, which will try to focus on more lucrative markets.
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Constellation Brands Inc (STZ): Free Stock Analysis Report
Molson Coors Brewing Company (TAP): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
Anheuser-Busch InBev SA/NV (BUD): Free Stock Analysis Report
Craft Brew Alliance, Inc. (BREW): Free Stock Analysis Report
Carlsberg AS (CABGY): Free Stock Analysis Report
Heineken NV (HEINY): 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.
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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BREW and Constellation Brands Inc STZ and Diageo plc DEO , who export their beer in bulk. Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD): Free Stock Analysis Report Craft Brew Alliance, Inc. (BREW): Free Stock Analysis Report Carlsberg AS (CABGY): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report To read this article on Zacks.com click here. That said, the beer industry stands a critical juncture, where higher exports are being cheered but lower domestic sales and aluminum tariffs are denting the confidence of brewers.
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Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD): Free Stock Analysis Report Craft Brew Alliance, Inc. (BREW): Free Stock Analysis Report Carlsberg AS (CABGY): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report To read this article on Zacks.com click here. BREW and Constellation Brands Inc STZ and Diageo plc DEO , who export their beer in bulk. Canada, U.K. Sweden, France and Australia are still the biggest consumers of Anheuser-Busch InBev SA/NV BUD , Molson Coors Brewing Company TAP , Craft Brew Alliance, Inc.
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Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD): Free Stock Analysis Report Craft Brew Alliance, Inc. (BREW): Free Stock Analysis Report Carlsberg AS (CABGY): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report To read this article on Zacks.com click here. BREW and Constellation Brands Inc STZ and Diageo plc DEO , who export their beer in bulk. The Good: Craft Beer Export Rise International distribution of craft beer continued to increase in 2017, with U.S. export volumes rising 3.6% to $125.4 million, according to The Brewers Association (BA).
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BREW and Constellation Brands Inc STZ and Diageo plc DEO , who export their beer in bulk. Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD): Free Stock Analysis Report Craft Brew Alliance, Inc. (BREW): Free Stock Analysis Report Carlsberg AS (CABGY): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report To read this article on Zacks.com click here. The tariffs certainly aren't a good sign at a time when the U.S. beer industry is already witnessing a decline in domestic beer sales due to the changing preferences of consumers.
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ced10e91-8bb4-4410-9445-b998d2c53c92
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727877.0
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2018-04-02 00:00:00 UTC
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Diageo (DEO) Shares Cross Below 200 DMA
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DEO
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https://www.nasdaq.com/articles/diageo-deo-shares-cross-below-200-dma-2018-04-02
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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 $134.38, changing hands as low as $133.28 per share. Diageo plc shares are currently trading down about 1.3% 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 $113.67 per share, with $147.62 as the 52 week high point - that compares with a last trade of $133.67.
According to the ETF Finder at ETF Channel, DEO makes up 2.47% of the Vanguard FTSE Europe ETF (Symbol: VGK) which is trading lower by about 1.3% on the day Monday.
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.
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 $134.38, changing hands as low as $133.28 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 $113.67 per share, with $147.62 as the 52 week high point - that compares with a last trade of $133.67. According to the ETF Finder at ETF Channel, DEO makes up 2.47% of the Vanguard FTSE Europe ETF (Symbol: VGK) which is trading lower by about 1.3% on the day Monday.
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In trading on Monday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $134.38, changing hands as low as $133.28 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 $113.67 per share, with $147.62 as the 52 week high point - that compares with a last trade of $133.67. According to the ETF Finder at ETF Channel, DEO makes up 2.47% of the Vanguard FTSE Europe ETF (Symbol: VGK) which is trading lower by about 1.3% on the day Monday.
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In trading on Monday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $134.38, changing hands as low as $133.28 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 $113.67 per share, with $147.62 as the 52 week high point - that compares with a last trade of $133.67. According to the ETF Finder at ETF Channel, DEO makes up 2.47% of the Vanguard FTSE Europe ETF (Symbol: VGK) which is trading lower by about 1.3% on the day Monday.
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In trading on Monday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $134.38, changing hands as low as $133.28 per share. According to the ETF Finder at ETF Channel, DEO makes up 2.47% of the Vanguard FTSE Europe ETF (Symbol: VGK) which is trading lower by about 1.3% on the day Monday. 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 $113.67 per share, with $147.62 as the 52 week high point - that compares with a last trade of $133.67.
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750658ca-1a8e-44fa-a4c3-1b8c8b05cf9d
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727878.0
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2018-03-24 00:00:00 UTC
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Winners and Losers From the World's 50 Largest Beer Brewers
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DEO
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https://www.nasdaq.com/articles/winners-and-losers-worlds-50-largest-beer-brewers-2018-03-24
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nan
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nan
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Anheuser-Busch InBev (NYSE: BUD) and MillerCoors are still the two biggest breweries in the U.S. The craft beer industry trade group, the Brewers Association, released its annual list of the top-50 U.S. brewers based on beer sales volume, and to no one's surprise the mega brewers remained atop the heap in 2017.
Anheuser-Busch produced 113.5 hectoliters of beer in North America last year, or almost 97 million barrels, equivalent to about 3 billion gallons. Despite that being down 3.3% from 2016, it's still appreciably more than the 67.7 million hectoliters MillerCoors parent Molson Coors (NYSE: TAP) reported it produced in the U.S.
Anheuser-Busch owned 43% of the U.S. beer market, while Molson Coors owned 25%. The remainder was owned by other companies.
It's in that "other companies" category that the real surprise comes with the Brewers Association tally, and below we highlight the winners and losers in the annual makeup of the top U.S. brewers.
Winners
The biggest winner is Constellation Brands (NYSE: STZ) , which appeared on the list for the first time in the No. 3 position, behind MillerCoors. Having acquired the U.S. rights to the Mexican Modelo brand and its Corona beer label, it has ridden rising sales and saw that portfolio's depletions jump 9% in the third quarter, driving 80% of its total U.S. beer category growth. Year-to-date shipment volumes are up 8.5% while depletions are 9.5% higher. Depletions are distributor shipments to retail customers and are considered an industry proxy for consumer demand. What made Constellation eligible for the list this year was its joint holdings in domestic brands Ballast Point, Funky Buddha, and Tocayo.
The second big winner is Heineken (NASDAQOTH: HEINY) , another first-time entry on the list of biggest U.S. brewers even though it is the world's second-largest brewer. In 2017, Heineken acquired the remaining 50% shares in Lagunitas Brewing that it didn't already own, which secured its eligibility on the list. The brewer notes the brand continues to outperform the U.S. craft beer market. It says Lagunitas is the market leader in the IPA segment, which is the fastest growing sub-segment within craft beer.
It should be pointed out that the Brewers Association has not considered Lagunitas a craft beer since 2015 when Heineken first acquired a 50% stake in the brewer. Its craft beer definition requires a brewer to be independent, meaning less than 25% of the brewer is owned or controlled by a large brewer. But Lagunitas was the ninth biggest brewer overall last year.
Diageo (NYSE: DEO) also made the list for the first time, coming in eighth place. Although it has owned several well-known beer brands for years, including Red Stripe (which was sold to Heineken), Guinness, and Harp, in 2016 it reorganized its U.S. beer portfolio while committing to increase its investment in the Smithwick's and Harp brands. The following year Diageo announced plans to open a Guinness brewery in Maryland with new Guinness beers created for the U.S. market. Arguably known best for its Johnnie Walker brand of whisky, beer accounts for 15% of Diageo's total revenues.
Losers
Undoubtedly the biggest loser in the top 50 biggest brewer rankings is Boston Beer (NYSE: SAM) . The company's star turn as the face of the craft beer industry continues to fade as its flagship Samuel Adams brand continues an unrelenting decline.
The brewer has steadily fallen down the list. In 2015 it ranked as the fifth largest brewer -- a position it's held since 2009 -- but fell to sixth place in 2016. In the current listing, it has fallen all the way to the ninth spot. It does, however, remain the second largest craft brewer behind D.G. Yuengling & Sons.
Revenue has fallen for two consecutive years at Boston Beer, selling 3.7 million barrels in 2017, down 6% from the 4 million it sold the year before. There's also little hope Samuel Adams or its Angry Orchard hard cider brand will be recovering anytime soon. Instead, the brewer is relying upon niche products like hard teas and seltzer to drive growth. If it continues on this path, don't be surprised to find the craft brewer ranked even lower next year on the list of biggest brewers.
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Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Anheuser-Busch InBev NV and Boston Beer. The Motley Fool owns shares of Molson Coors Brewing. 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.
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) also made the list for the first time, coming in eighth place. Anheuser-Busch produced 113.5 hectoliters of beer in North America last year, or almost 97 million barrels, equivalent to about 3 billion gallons. What made Constellation eligible for the list this year was its joint holdings in domestic brands Ballast Point, Funky Buddha, and Tocayo.
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Diageo (NYSE: DEO) also made the list for the first time, coming in eighth place. Despite that being down 3.3% from 2016, it's still appreciably more than the 67.7 million hectoliters MillerCoors parent Molson Coors (NYSE: TAP) reported it produced in the U.S. Anheuser-Busch owned 43% of the U.S. beer market, while Molson Coors owned 25%. Losers Undoubtedly the biggest loser in the top 50 biggest brewer rankings is Boston Beer (NYSE: SAM) .
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Diageo (NYSE: DEO) also made the list for the first time, coming in eighth place. The craft beer industry trade group, the Brewers Association, released its annual list of the top-50 U.S. brewers based on beer sales volume, and to no one's surprise the mega brewers remained atop the heap in 2017. Its craft beer definition requires a brewer to be independent, meaning less than 25% of the brewer is owned or controlled by a large brewer.
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Diageo (NYSE: DEO) also made the list for the first time, coming in eighth place. It should be pointed out that the Brewers Association has not considered Lagunitas a craft beer since 2015 when Heineken first acquired a 50% stake in the brewer. Revenue has fallen for two consecutive years at Boston Beer, selling 3.7 million barrels in 2017, down 6% from the 4 million it sold the year before.
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4b75339f-40e6-4cc6-bc82-31bb79e76167
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727879.0
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2018-03-23 00:00:00 UTC
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4 Low Beta Stocks to Buy as Trade War Looks Real
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DEO
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https://www.nasdaq.com/articles/4-low-beta-stocks-buy-trade-war-looks-real-2018-03-23
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nan
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nan
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President Donald Trump finally set in motion tariffs on as much as up to $60 billion in Chinese imports on Thursday. Consequently, China too has announced plans for reciprocal tariffs on $3 billion of imports from the United States, giving rise to fears of an ensuing trade war. This saw the Dow once again tumbling more than 700 points or almost 3% on Thursday.
Going by the 90-year S&P 500 history, March is considered a one of the best months for stocks. This too seems to have been proven wrong this time, as the markets failed to start the month on a high owing to Trump's proposed imposition of 25% and 10% tariffs on imported steel and aluminum, respectively.
Evidence of the panic is the spiking of the market's preferred fear guage to its highest level since Feb 5. Given that these events could drastically dent investor confidence, picking low beta stocks looks like a smart option at this point. Beta measures the tendency of a stock's returns to respond to market swings. Low correlation stocks provide protection during turbulent times as these are less prone to day-to-day fluctuations.
Volatility Index Spikes
After trade fears escalated, the CBOE Volatility Index, which gauges the level of fear gripping the market, skyrocketed 31% to hit 23.35, finally settling at 24.04 on Thursday. The VIX has more than doubled so far this year.
Current weakness in the technology sector as well as the selloff which ensued post Trump's levies on China, pushed up VIX. This also marked the highest increase for VIX in a single session since Feb 5, when the fear-gauge doubled from its lowest-ever level.
U.S.-China Trade War to Follow?
Trade war fears showed up in late February and the markets have remained volatile in March. Early this month, Trump finally announced tariffs on imported steel and aluminum, which saw shares of major automakers and airline companies declining. Although Canada was Mexico, the largest exporters of steel to the United States, were exempted, the move was tailored at targeting China.
Trump has been quite vocal about his 'America First' agenda, a culmination of his longstanding view that weak U.S. trade policies have affected the country's workforce and increased the federal deficit. No sooner did the metal tariffs come into effect, Trump announced his plans of imposing tariffs of as much as $60 billion on Chinese imports, which were given the final shape on Thursday.
The initial fears, which already saw shares declining throughout March, finally saw the Dow Jones industrial average taking a massive hit, closing down more than 724 points or 2.9% on Thursday. This also marks the blue-chip average's fifth worst daily point drop in history. Also, this is the worst drop since Feb 8, when it tanked more than 1,000 points. Moreover, the Dow is down 3.1% for the year and 9.99% from its January all-time high. This almost puts it back in correction territory once again.
China was prompt in announcing its plans for reciprocal tariffs of $3 billion on imports from the United States in its first response to Trump's instruction to U.S. Trade Representative Robert Lighthizer to slap tariffs on Chinese imports. Will this enrage China enough to counter the United States, thus triggering a trade war? Let's see.
Our Choices
Understandably, it's too early to predict the implications of the tariffs or a trade war with China. How long the fears of inflation continue to take a toll on the markets is also hard to predict. In such an event, investors should build a strategy on low-risk assets and a combination of parameters that lead to better returns. The best way to go about doing this is by creating a portfolio of low-beta stocks, which are inherently less volatile than the markets they trade in. In this case, a low beta ranges from 0 to 1.
These stocks are also mega caps that boast immense financial strength and are immune to market vagaries. Such stocks reflect solid financial structure, healthy underlying fundamentals and better quality business. Further, these boast a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Toyota Motor CorporationTM produces, sells, leases and repairs passenger cars, trucks, buses, boats, airplanes and other products in Japan and most foreign countries. The company has a Zacks Rank #1 and a beta of 0.73. It has a dividend yield of 2.8%. The Zacks Consensus Estimate for its current-year earnings rose 11.8% in the last 30 days. Toyota is expected to return 36.70% this year, higher than the industry 's estimated returns of 17.8%.
NextEra Energy, Inc.NEE is a leading clean energy company. The stock carries a Zacks Rank #2 and a beta of 0.32. The dividend yield is 2.7% for NextEra. The Zacks Consensus Estimate for its current-year earnings rose 5.6% in the last 60 days. The company is expected to return 15.3% this year, more than the industry 's expected returns of 5.9%.
The Estee Lauder Companies Inc.EL is one of the world's leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The company has a beta of 0.69 and a dividend yield of 1.1%. The Zacks Consensus Estimate for its current-year earnings rose 0.1% in the last 30 days. Zacks Rank #2 Estee Lauder is expected to return 25.6% this year, more than the industry 's estimated returns of 13.8%. You can see the complete list of today's Zacks #1 Rank stocks here.
Diageo plcDEO is a multinational branded food and drinks company. The company has an outstanding portfolio of world-famous food and drinks brands include Smirnoff, Johnnie Walker, J&B, Gordon's, Malibu, Baileys, Guinness and Tanqueray. The stock has a Zacks Rank #2 and a beta of 0.73. The dividend yield is 2.6%. The Zacks Consensus Estimate for its current-year earnings rose 4.1% in the last 60 days. Diageo is expected to return 18.8% this year, more than the industry 's expected returns of 15.5%.
Looking for Stocks with Skyrocketing Upside?
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NextEra Energy, Inc. (NEE): Free Stock Analysis Report
Toyota Motor Corporation (TM): Free Stock Analysis Report
Diageo plc (DEO): Free Stock Analysis Report
The Estee Lauder Companies Inc. (EL): 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.
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 plcDEO is a multinational branded food and drinks company. Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report Toyota Motor Corporation (TM): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report To read this article on Zacks.com click here. This too seems to have been proven wrong this time, as the markets failed to start the month on a high owing to Trump's proposed imposition of 25% and 10% tariffs on imported steel and aluminum, respectively.
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Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report Toyota Motor Corporation (TM): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plcDEO is a multinational branded food and drinks company. Consequently, China too has announced plans for reciprocal tariffs on $3 billion of imports from the United States, giving rise to fears of an ensuing trade war.
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Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report Toyota Motor Corporation (TM): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plcDEO is a multinational branded food and drinks company. China was prompt in announcing its plans for reciprocal tariffs of $3 billion on imports from the United States in its first response to Trump's instruction to U.S. Trade Representative Robert Lighthizer to slap tariffs on Chinese imports.
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Diageo plcDEO is a multinational branded food and drinks company. Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report Toyota Motor Corporation (TM): Free Stock Analysis Report Diageo plc (DEO): Free Stock Analysis Report The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report To read this article on Zacks.com click here. Consequently, China too has announced plans for reciprocal tariffs on $3 billion of imports from the United States, giving rise to fears of an ensuing trade war.
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631df82a-de48-40f5-b75e-e7167c2eed24
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727880.0
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2018-03-22 00:00:00 UTC
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Here's Why Boston Beer (SAM) Rallies Despite a Dismal Q4
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DEO
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https://www.nasdaq.com/articles/heres-why-boston-beer-sam-rallies-despite-a-dismal-q4-2018-03-22
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nan
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nan
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The Boston Beer Company, Inc.SAM stock continues its bull run despite reporting a softer-than-anticipated fourth-quarter fiscal 2018. The upside story mainly relates to the company's commitment toward its three-point growth plan focused on revival of Samuel Adams and Angry Orchard brands, cost-saving initiatives and long-term innovation. Consequently, shares of Boston Beer have rallied 8.8% in the past month, outperforming the industry 's gain of 3.1%.
That said, let's find out more about the growth drivers for this Zacks Rank #3 (Hold) stock.
Strategic Initiatives -- A Key Growth Driver
Boston Beer looks well-poised to drive long-term growth through the execution of the aforementioned three-point growth plan. Firstly, this plan prioritizes the revival of the Samuel Adams and Angry Orchard brands via packaging, innovation, promotion and brand communication initiatives. The company is encouraged by the recently launched new-media campaigns for the Samuel Adams and Angry Orchard brands. It remains optimistic about other innovative product launches like Sam '76, Samuel Adams New England IPA and Angry Orchard Rose. It also targets to retain momentum for the Twisted Tea brand and to gain leadership for Truly Spiked & Sparkling brand in the hard sparkling water category.
Secondly, the company has accelerated its focus on cost savings and efficiency projects with these savings directed for further brand development. This aided gross margin improvement in fourth-quarter 2017. Based on current opportunities, it continues to anticipate improving gross margin by one percentage point every year through 2019.
Finally, the plan emphasizes long-term innovation and maximizing the shareholder value. Boston Beer remains optimistic about the craft beer and cider categories in the future.
Gross Margin Growth to Boost Bottom Line
Boston Beer is making strides to address industry challenges through improved cost structure and re-investing these savings for brand development. This has been significantly contributing toward an improving gross margin. In 2017, its cost savings and efficiency projects delivered above the targeted ranges, providing increased flexibility to invest in brands and positioning it well for 2018.
Gross margin improved 330 basis points (bps) in the fourth quarter driven by better pricing, product and package mix as well as cost-savings gains from the company-owned breweries. For 2018, it expects gross margins between 52% and 54%, which are likely to increase over the course of the year, driven by continued progress on cost-saving initiatives. This, along with lower operating expenses, should aid the bottom line.
Depletion Trends Show Improvement
Depletions continued to be soft in both the fourth quarter and full-year 2017, reflecting a decline of 10% and 7%, respectively. Depletion volumes were impacted by the loss of a week's depletions and persistent decline in the Samuel Adams and Angry Orchard brands, partly mitigated by growth in Twisted Tea and Truly Spiked & Sparkling brands. Though still negative, the company's quarterly depletion trends have been improving since the first quarter of 2017.
Additionally, we are encouraged by a strong start in 2018. Notably, depletions for the year-to-date period through the six-week period ended Feb 10, 2018, are estimated to have grown nearly 6% from the comparable year-ago period. For 2018, depletions and shipments are likely to range from flat to up 6%.
Lower Earnings & Sales Remain a Deterrent
Though the company's long-term prospects look good, it reported lower-than-expected results in fourth-quarter 2017 with the top and bottom lines missing estimates. This marked a sales lag after two consecutive beats. Further, sales declined year over year, owing to a fall in shipment volumes and lower depletions. Volume declines in the quarter resulted from continued challenges at the Samuel Adams brand as well as the fall in the cider category and the Angry Orchard brand.
The Boston Beer Company, Inc. Price, Consensus and EPS Surprise
The Boston Beer Company, Inc. Price, Consensus and EPS Surprise | The Boston Beer Company, Inc. Quote
While the company anticipates depletions and shipments in the range of flat to up 6%, there remains some uncertainty in the volume outlook for 2018, which is expected to be more sensitive to innovations than previous years. Moreover, industry-wide challenges related to general softening of the craft beer and hard cider categories, increased entry of start-up brewers, and the rising number of options to drinkers is likely to hurt the top- and bottom-line results.
Do Beverages-Alcohol Stocks Grab Your Attention? Check These
Some better-ranked stocks in the same industry are Diageo plc DEO , Campri Group DVDCY and Heineken NV HEINY .
Diageo has a long-term earnings growth rate of 7.4% and a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Campri Group carries a Zacks Rank #2. The stock has a long-term EPS growth rate of 7.5%.
Heineken, also a Zacks Rank #2 stock, has a long-term earnings growth rate of 8.4%.
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Diageo plc (DEO): Free Stock Analysis Report
Heineken NV (HEINY): Free Stock Analysis Report
The Boston Beer Company, Inc. (SAM): Free Stock Analysis Report
Campari Group (DVDCY): 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.
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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Check These Some better-ranked stocks in the same industry are Diageo plc DEO , Campri Group DVDCY and Heineken NV HEINY . Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report The Boston Beer Company, Inc. (SAM): Free Stock Analysis Report Campari Group (DVDCY): Free Stock Analysis Report To read this article on Zacks.com click here. The upside story mainly relates to the company's commitment toward its three-point growth plan focused on revival of Samuel Adams and Angry Orchard brands, cost-saving initiatives and long-term innovation.
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report The Boston Beer Company, Inc. (SAM): Free Stock Analysis Report Campari Group (DVDCY): Free Stock Analysis Report To read this article on Zacks.com click here. Check These Some better-ranked stocks in the same industry are Diageo plc DEO , Campri Group DVDCY and Heineken NV HEINY . The upside story mainly relates to the company's commitment toward its three-point growth plan focused on revival of Samuel Adams and Angry Orchard brands, cost-saving initiatives and long-term innovation.
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Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report The Boston Beer Company, Inc. (SAM): Free Stock Analysis Report Campari Group (DVDCY): Free Stock Analysis Report To read this article on Zacks.com click here. Check These Some better-ranked stocks in the same industry are Diageo plc DEO , Campri Group DVDCY and Heineken NV HEINY . Depletion volumes were impacted by the loss of a week's depletions and persistent decline in the Samuel Adams and Angry Orchard brands, partly mitigated by growth in Twisted Tea and Truly Spiked & Sparkling brands.
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Check These Some better-ranked stocks in the same industry are Diageo plc DEO , Campri Group DVDCY and Heineken NV HEINY . Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report The Boston Beer Company, Inc. (SAM): Free Stock Analysis Report Campari Group (DVDCY): Free Stock Analysis Report To read this article on Zacks.com click here. Further, sales declined year over year, owing to a fall in shipment volumes and lower depletions.
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2018-03-22 00:00:00 UTC
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The 3 Safest Dividend Stocks for International Exposure
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https://www.nasdaq.com/articles/3-safest-dividend-stocks-international-exposure-2018-03-22
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In any long-term diversified portfolio, international stocks not only have a place, they should be represented by as much as 10% to 15% of your investment.
The reason is not merely diversification, but because international stocks do not always correlate directly to the performance of the U.S. market. You want to have stocks that aren't correlated to smooth out volatility.
Investors can be afraid of international stocks, as if they aren't as safe from a political, reporting or regulatory perspective as they are here in the United States. Political risk can be very real with international stocks, and significant cultural differences can present an additional risk when trying to evaluate securities.
Look, I would be very cautious investing in China, Russia or Africa. As I've mentioned in many articles about Chinese stocks, China is opaque. We just found out that Anbang Insurance Group , a Chinese conglomerate was seized by the government .
7 High-Quality Dividends for 2018 and Beyond
Still, international exposure is necessary. But there are many international companies that you will find palatable because you know their products, and you know their name. Plus, they pay pretty good dividends to boot.
International Dividend Stocks to Buy: GlaxoSmithKline (GSK)
Source: Shutterstock
Dividend Yield: 5.9%
You certainly know the name GlaxoSmithKline plc (NYSE: GSK ). As investors, we aren't going to freak out about a U.K.-based company, right? We also know it is an $88 billion pharmaceutical company.
It has four divisions: Pharmaceuticals, Pharmaceuticals R&D, Vaccines and Consumer Healthcare. Besides its huge portfolio of proprietary pharma drugs, it has other products you certain know: Otrivin, Panadol, parodontax, Poligrip, Sensodyne, Theraflu and Voltaren.
It also has consumer products, such as drinks and foods, toothpastes, toothbrushes, mouth rinses, medicated mouthwashes, gels and sprays, denture adhesives, and denture cleansers.
GSK invented NicoDerm and has more than three dozen other products in development. It's no wonder GSK has billions of cash on the balance sheet, and more than enough cash flow to pay its dividend, presently at 5.9%.
International Dividend Stocks to Buy: Diageo (DEO)
Source: Mustafa Khayat Via Flickr
Dividend Yield: 2.6%
Do you like booze? Enjoy knocking back a few from time to time? Then hop on board Diageo PLC (NYSE: DEO ). We know for a fact there will always be some baseline demand for alcohol. No matter how healthy people claim they want to be, they will always give in to alcohol.
You know many of Diageo's brands, including Johnnie Walker, Crown Royal, J&B, Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.
Why is alcohol a smart investment? Because it is a social product. When people get together, if one person buys, others tend to buy-in also. Marketing for alcohol centers around creating an experience, and creating and perpetuating social circles. In general, it is a good play because human social behavior is often centered around the consumption of alcohol.
5 Big Biotech Stocks to Buy Under $10
DEO stock is being pushed higher thanks to increased efforts in flavored alcohols. DEO is consistent and reliable, and pumps out more than $3 billion annually in free cash flow, returning about 65% of that to shareholders in the form of its 2.57% yield.
International Dividend Stocks to Buy: Unilever (UL)
Source: Sean Biehle via Flickr
Dividend Yield: 3.2%
Unilever plc (NYSE: UL ) is a familiar, international presence with consumer products across the spectrum. You certainly know all of the following: Dove, Knorr, Axe, Magnum, Lipton, Surf, Becel, Lux, Metadent, Pepsodent, Country Crock, Persil, Popsicle, Ben & Jerry's, Breyer's Vaseline and many more.
Unilever makes a ton of money. The company reported good numbers in its fourth-quarter earnings, with sales up 3.5%, operating margins up 110bps, earnings up 11% and free cash flow of 5.4 billion euros.
UL is concentrating on new channels: health and beauty, direct to consumer, e-commerce, and "experience stores." By the way, UL is shoring up its pension, with a deficit of 3.2 billion euros now down to just 600 million. That means money to pay the dividend won't be diverted.
UL only has two years of consecutive increases under its belt, but it pays a 3.2% dividend, which you could do worse than.
Lawrence Meyers is the CEO of PDL Capital, a specialty lender focusing on consumer finance and is the Manager of The Liberty Portfolio at www.thelibertyportfolio.com. He does not own any stock mentioned. He has 23 years' experience in the stock market, and has written more than 2,000 articles on investing. Lawrence Meyers can be reached at TheLibertyPortfolio@gmail.com.
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The post The 3 Safest Dividend Stocks for International Exposure 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.
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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International Dividend Stocks to Buy: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.6% Do you like booze? Then hop on board Diageo PLC (NYSE: DEO ). 5 Big Biotech Stocks to Buy Under $10 DEO stock is being pushed higher thanks to increased efforts in flavored alcohols.
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International Dividend Stocks to Buy: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.6% Do you like booze? Then hop on board Diageo PLC (NYSE: DEO ). 5 Big Biotech Stocks to Buy Under $10 DEO stock is being pushed higher thanks to increased efforts in flavored alcohols.
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International Dividend Stocks to Buy: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.6% Do you like booze? Then hop on board Diageo PLC (NYSE: DEO ). 5 Big Biotech Stocks to Buy Under $10 DEO stock is being pushed higher thanks to increased efforts in flavored alcohols.
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International Dividend Stocks to Buy: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.6% Do you like booze? Then hop on board Diageo PLC (NYSE: DEO ). 5 Big Biotech Stocks to Buy Under $10 DEO stock is being pushed higher thanks to increased efforts in flavored alcohols.
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2018-03-19 00:00:00 UTC
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A Foolish Take: Is Beer Getting Less Popular?
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DEO
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https://www.nasdaq.com/articles/foolish-take-beer-getting-less-popular-2018-03-19
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nan
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nan
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Beer is one of the most popular beverages in the world, and holidays like St. Patrick's Day act as a reminder of the cultural importance that beer has across the globe. For London-based Diageo (NYSE: DEO) , which owns the Guinness brand and has turned it into a worldwide favorite among beer drinkers, March 17 is always an important day. About 13 million pints of Guinness beer were consumed on the holiday, or about three times the ordinary run rate for the Irish stout.
Yet when you look more broadly at beer consumption throughout the year, the picture doesn't look as strong. Even with a generally successful brand like Guinness, there have been obstacles to growth that have shown up recently. As you can see, organic volume of the Irish beer brand's sales has fallen in four out of the past five years.
There are several factors potentially at play. One is that the rise of craft brews has disrupted the usual brand loyalty among beer drinkers, instead leading many consumers to favor a wider selection of beers. In addition, a new emphasis on spirits in the marketplace has shifted consumer tastes away from beer toward hard liquor.
Companies in the industry are responding accordingly to keep up with changing consumer trends. Diageo in particular has seen tremendous growth in spirits brands like Tanqueray gin and Crown Royal whiskey, which saw volume increases of 12% and 10%, respectively, in 2017. Beer won't disappear overnight, but its past dominance of the local tavern might slowly give way to a broader menu of adult beverages in the years to come.
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Dan Caplinger 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.
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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For London-based Diageo (NYSE: DEO) , which owns the Guinness brand and has turned it into a worldwide favorite among beer drinkers, March 17 is always an important day. About 13 million pints of Guinness beer were consumed on the holiday, or about three times the ordinary run rate for the Irish stout. Beer won't disappear overnight, but its past dominance of the local tavern might slowly give way to a broader menu of adult beverages in the years to come.
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For London-based Diageo (NYSE: DEO) , which owns the Guinness brand and has turned it into a worldwide favorite among beer drinkers, March 17 is always an important day. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. In fact, the newsletter they run, Motley Fool Stock Advisor , has tripled the S&P 500!
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For London-based Diageo (NYSE: DEO) , which owns the Guinness brand and has turned it into a worldwide favorite among beer drinkers, March 17 is always an important day. One is that the rise of craft brews has disrupted the usual brand loyalty among beer drinkers, instead leading many consumers to favor a wider selection of beers. Offer from The Motley Fool: 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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For London-based Diageo (NYSE: DEO) , which owns the Guinness brand and has turned it into a worldwide favorite among beer drinkers, March 17 is always an important day. As you can see, organic volume of the Irish beer brand's sales has fallen in four out of the past five years. Offer from The Motley Fool: 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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2018-03-16 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Diageo, Dollar General, Papa Murphy's Holdings, Nordstrom and Macy's
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-diageo-dollar-general-papa-murphys-holdings-nordstrom
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For Immediate Release
Chicago, IL - March 16, 2018 - 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 Diageo Plc DEO , Dollar General Corporation DG , Papa Murphy's Holdings, Inc. FRSH , Nordstrom Inc. JWN and Macy's Inc. M .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
Try Luck o' the Irish with These St. Patrick's Day Stocks
A large number of Americans plan to celebrate the Irish festival of St. Patrick's Day on Mar 17 this year and spend as much as $5.9 billion, per National Retail Federation . This is the highest level in its 14-year survey history and up from last year's record of $5.3 billion. Average spending per person is also expected to climb from $37.92 last year to $39.65.
More than 149 million Americans are expected to celebrate the Irish holiday, with 83% wearing green, 31% planning a special dinner, 27% throwing a party at a bar or a restaurant, 27% decorating their homes or offices in an Irish theme and 16% attending private parties. While the day is popular among the 18-24 years age group, the biggest spenders will be the 35-44 years age group, shelling out at an average of $45.76 for the holiday.
About 50% of the Americans will be spending on holiday-themed food, 41% on beverages, 31% on apparel, 26% on decoration, and 16% on candy. Coming to shopping destinations, 38% purchases will be from grocery stores, 31% from discount stores, 20% from department stores, 19% from bars or restaurants, and 9% online, specialty stores, or drug stores.
Investors should also note that St. Patrick's Day is the fourth largest drinking day in the United States, after New Year's Eve, Christmas, and Fourth of July with Guinness being the most popular brand. Some of the other popular drinks include Irish stout and Irish ale.
Given the splurge in spending, it will not come as a surprise if the stock market could Wearin' o' the Green in the honor of St. Patrick's Day. In particular, retailers, food and beverage companies could see huge jump in their stock prices as higher consumer spending will likely boost their revenues. So, raise a toast to the stocks in these sectors and try to find some hidden luck on this Irish festival.
Diageo Plc
Based in London, Diageo is a global leader in alcohol beverages and has an outstanding portfolio of world famous brands across spirits, beer, cider, and wine categories. These brands include Johnnie Walker, Crown Royal, J&B, Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.
The Guinness brand will find its pot of gold as about 13 million pints are expected to be consumed on St. Patrick's Day. This is nearly four times the consumption on a normal day. Diageo saw positive earnings estimate revision of 33 cents over the past three months for the fiscal year (ending June 2018) with an expected growth of 18.84%. It has a Zacks Rank #2 (Buy) and a VGM Score of C. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Dollar General Corporation
Based in Goodlettsville, Dollar General is a discount retailer in the United States providing various merchandise products in the southern, southwestern, midwestern, and eastern United States. The company offers its merchandise in four categories - highly consumable, seasonal, home products and basic clothing. Highly consumable consists of packaged food, candy, snacks and refrigerated products, health and beauty aids, home cleaning supplies and pet supplies; seasonal consists of seasonal and holiday-related items, toys, stationery and hardware; home products consists of house wares and domestics, and basic clothing consists of casual everyday apparel.
St. Patrick Day themed items are available at Dollar Tree for as low as 75 cents. The stock saw solid earnings estimate revision of 62 cents over the past three months for the fiscal year (ending January 2019) and has an estimated growth rate of 24.34%. It has a Zacks Rank #2 and a VGM Score of B.
Papa Murphy's Holdings, Inc.
Based in Vancouver, Papa Murphy's operates as a franchisor and operator of the Take 'N' Bake pizza chain in the United States. In addition to scratch-made pizzas, the company offers a growing menu of grab 'n' go items, including salads, sides and desserts.
For St. Patrick's Day, the company is offering online a large, thin crust, one-topping pizza for just $3.14. The stock saw positive earnings estimate revision of a penny over the past three months for this year and has an estimated growth rate of 73.33%. It has a Zacks Rank #2 and a VGM Score of B.
Nordstrom Inc.
Based in Seattle, Nordstrom is a leading fashion specialty retailer offering compelling clothing, shoes and accessories for men, women and children.
The company is selling holiday-themed graphic tees and baseball hats from Vineyard Vines, per Forbes. It saw solid earnings estimate revision of 57 cents over the past three months for the fiscal (ending January 2019) with expected growth of 15.54%. Nordstrom has a Zacks Rank #2 and a VGM Score of A.
Macy's Inc.
Based in Cincinnati, Macy's, one of the nation's premier retailers, operates about 885 stores in 45 states, the District of Columbia, Guam and Puerto Rico, under the names of Macy's, Bloomingdale's, Bloomingdale's Outlet and Bluemercury, as well as macys.com , bloomingdales.com and bluemercury.com websites.
The company is selling St. Paddy's themed T-shirts with shamrock graphic and more. It saw solid earnings estimate revision of $1.13 over the past three months for the fiscal year (ending January 2019) though earnings are expected to decline a modest 3.71%. Macy's has a Zacks Rank #1 and a VGM Score of A.
Can Hackers Put Money INTO Your Portfolio?
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Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .
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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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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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Diageo PLC (DEO): Free Stock Analysis Report
Nordstrom, Inc. (JWN): Free Stock Analysis Report
Dollar General Corporation (DG): Free Stock Analysis Report
Papa Murphy's Holdings, Inc. (FRSH): Free Stock Analysis Report
Macy's Inc (M): 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.
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 Diageo Plc DEO , Dollar General Corporation DG , Papa Murphy's Holdings, Inc. FRSH , Nordstrom Inc. JWN and Macy's Inc. M . Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Nordstrom, Inc. (JWN): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Papa Murphy's Holdings, Inc. (FRSH): Free Stock Analysis Report Macy's Inc (M): Free Stock Analysis Report To read this article on Zacks.com click here. These brands include Johnnie Walker, Crown Royal, J&B, Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.
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Stocks recently featured in the blog include Diageo Plc DEO , Dollar General Corporation DG , Papa Murphy's Holdings, Inc. FRSH , Nordstrom Inc. JWN and Macy's Inc. M . Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Nordstrom, Inc. (JWN): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Papa Murphy's Holdings, Inc. (FRSH): Free Stock Analysis Report Macy's Inc (M): Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Thursday's Analyst Blog: Try Luck o' the Irish with These St. Patrick's Day Stocks A large number of Americans plan to celebrate the Irish festival of St. Patrick's Day on Mar 17 this year and spend as much as $5.9 billion, per National Retail Federation .
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Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Nordstrom, Inc. (JWN): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Papa Murphy's Holdings, Inc. (FRSH): Free Stock Analysis Report Macy's Inc (M): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Diageo Plc DEO , Dollar General Corporation DG , Papa Murphy's Holdings, Inc. FRSH , Nordstrom Inc. JWN and Macy's Inc. M . Here are highlights from Thursday's Analyst Blog: Try Luck o' the Irish with These St. Patrick's Day Stocks A large number of Americans plan to celebrate the Irish festival of St. Patrick's Day on Mar 17 this year and spend as much as $5.9 billion, per National Retail Federation .
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Stocks recently featured in the blog include Diageo Plc DEO , Dollar General Corporation DG , Papa Murphy's Holdings, Inc. FRSH , Nordstrom Inc. JWN and Macy's Inc. M . Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Nordstrom, Inc. (JWN): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Papa Murphy's Holdings, Inc. (FRSH): Free Stock Analysis Report Macy's Inc (M): Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Thursday's Analyst Blog: Try Luck o' the Irish with These St. Patrick's Day Stocks A large number of Americans plan to celebrate the Irish festival of St. Patrick's Day on Mar 17 this year and spend as much as $5.9 billion, per National Retail Federation .
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2018-03-16 00:00:00 UTC
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Diageo (DEO) is Tailor-Made for Your Portfolio: Here's Why
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DEO
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https://www.nasdaq.com/articles/diageo-deo-is-tailor-made-for-your-portfolio%3A-heres-why-2018-03-16
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Diageo plcDEO has been performing well, thanks to its focus on strategic growth initiatives which also helped the company to put up an impressive show in the last reported results. Well, this alcohol-beverage player has gained nearly 20% in a year, almost on par with the industry . So, let's take a closer view of the factors that have spurred investors' confidence in this Zacks Rank #2 (Buy) stock, which is most likely to add new leaves to its growth story.
Robust Acquisitions Bolster Growth
Diageo explores opportunities to expand geographically through acquisitions. The spirits segment, amongst other alcohol categories, is gaining traction as consumers are inclining toward flavored whisky, premium tequilas and other spirits. Notably, Diageo has also been striving to augment its spirit-based alcohol portfolio through acquisitions. To this end, the company acquired the U.S. fastest-growing premium tequila brand, Casamigos in August 2017. This buyout strengthens Diageo's market share in the tequila category. Prior to this, the company strengthened its position in the tequila category with the acquisition of tequila brand Don Julio (February 2015), which led its organic sales growth in North America in the first half of fiscal 2018. Further, in fiscal 2014, the company took over the premium brand De Leon Comb Wine & Spirits.
Emerging Markets Presence Bodes Well
Like most other multinationals, Diageo has been turning its attention to the emerging markets. It is one of the leading international spirits company in the emerging markets of Africa, Latin America and Asia. Moreover, Diageo caters to the local tastes of the regions. Its products like Johnnie Walker Blue Label bottle, which was designed through a series of exclusive private tasting in China, India, Thailand, Vietnam, Brazil and Mexico, with local cultural relevance bear testimony to this strategy of the company. Moreover, the acquisition of India's largest spirits company, United Spirits Ltd, in July 2014, extended its reach to one of the most populous countries.
Focus on High-Margin Brands
Diageo is putting greater thrust on high-margin products. The company classified a group of brands as strategic brands that are expected to yield higher margins. With regards to its decision, the company ended a 16-year old distribution deal with Jose Cuervo, a non-premium tequila brand in December 2013, following a shift of demand toward more premium brands in America. The shift to high-margin brand is expected to be beneficial for the company. Further, Diageo is disposing off its non-core assets like the hotel at Gleneagles. Going forward, such a strategy is expected to help the company to focus on the core business and maintain its share in the spirit business.
Superb 1H18 Results, Favorable Outlook
Diageo's strong fundamentals, continuous innovations and focus on expansion fueled results in the first half of fiscal 2018, wherein sales and earnings improved year over year. While the bottom line gained from increased organic operating profit and reduced finance costs, top line was backed by broad-based organic sales. Organic sales increased 4.2%, backed by improved volumes and favorable price/mix. Also, all regions witnessed organic sales growth, driven by Diageo's strong brand portfolio and solid reach. Moreover, the company witnessed an increase in margins, thanks to favorable mix, greater productivity and efforts like better pricing and lowering input costs.
Based on these factors, Diageo continues to expect organic net sales for fiscal 2018 to improve in the mid-single digit. Also, the company expects margin growth of 175 bps over the three years ending on Jun 30, 2019.
Looking for More? Check These Trending Consumer Staples Stocks
Post Holdings POST , with a long-term earnings growth rate of 14%, sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Flowers Foods FLO , with a long-term EPS growth rate of 6.1%, carries a Zacks Rank #2.
Darling Ingredients DAR , a Zacks #2 Ranked stock, has witnessed solid estimate revisions in the last 30 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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Diageo PLC (DEO): Free Stock Analysis Report
Post Holdings, Inc. (POST): Free Stock Analysis Report
Flowers Foods, Inc. (FLO): Free Stock Analysis Report
Darling Ingredients Inc. (DAR): 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.
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 plcDEO has been performing well, thanks to its focus on strategic growth initiatives which also helped the company to put up an impressive show in the last reported results. Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Post Holdings, Inc. (POST): Free Stock Analysis Report Flowers Foods, Inc. (FLO): Free Stock Analysis Report Darling Ingredients Inc. (DAR): Free Stock Analysis Report To read this article on Zacks.com click here. So, let's take a closer view of the factors that have spurred investors' confidence in this Zacks Rank #2 (Buy) stock, which is most likely to add new leaves to its growth story.
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Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Post Holdings, Inc. (POST): Free Stock Analysis Report Flowers Foods, Inc. (FLO): Free Stock Analysis Report Darling Ingredients Inc. (DAR): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plcDEO has been performing well, thanks to its focus on strategic growth initiatives which also helped the company to put up an impressive show in the last reported results. Also, all regions witnessed organic sales growth, driven by Diageo's strong brand portfolio and solid reach.
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Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Post Holdings, Inc. (POST): Free Stock Analysis Report Flowers Foods, Inc. (FLO): Free Stock Analysis Report Darling Ingredients Inc. (DAR): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plcDEO has been performing well, thanks to its focus on strategic growth initiatives which also helped the company to put up an impressive show in the last reported results. Prior to this, the company strengthened its position in the tequila category with the acquisition of tequila brand Don Julio (February 2015), which led its organic sales growth in North America in the first half of fiscal 2018.
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Diageo plcDEO has been performing well, thanks to its focus on strategic growth initiatives which also helped the company to put up an impressive show in the last reported results. Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Post Holdings, Inc. (POST): Free Stock Analysis Report Flowers Foods, Inc. (FLO): Free Stock Analysis Report Darling Ingredients Inc. (DAR): Free Stock Analysis Report To read this article on Zacks.com click here. So, let's take a closer view of the factors that have spurred investors' confidence in this Zacks Rank #2 (Buy) stock, which is most likely to add new leaves to its growth story.
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f06df4a4-0376-43cd-9da3-acd84233f8a3
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727885.0
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2018-03-15 00:00:00 UTC
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Try Luck O' the Irish With These Stocks on St. Patrick's Day
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DEO
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https://www.nasdaq.com/articles/try-luck-o-irish-these-stocks-st-patricks-day-2018-03-15
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nan
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A large number of Americans plan to celebrate the Irish festival of St. Patrick's Day on Mar 17 this year and spend as much as $5.9 billion, per National Retail Federation . This is the highest level in its 14-year survey history and up from last year's record of $5.3 billion. Average spending per person is also expected to climb from $37.92 last year to $39.65.
More than 149 million Americans are expected to celebrate the Irish holiday, with 83% wearing green, 31% planning a special dinner, 27% throwing a party at a bar or a restaurant, 27% decorating their homes or offices in an Irish theme and 16% attending private parties. While the day is popular among the 18-24 years age group, the biggest spenders will be the 35-44 years age group, shelling out at an average of $45.76 for the holiday.
About 50% of the Americans will be spending on holiday-themed food, 41% on beverages, 31% on apparel, 26% on decoration, and 16% on candy. Coming to shopping destinations, 38% purchases will be from grocery stores, 31% from discount stores, 20% from department stores, 19% from bars or restaurants, and 9% online, specialty stores, or drug stores.
Investors should also note that St. Patrick's Day is the fourth largest drinking day in the United States, after New Year's Eve, Christmas, and Fourth of July with Guinness being the most popular brand. Some of the other popular drinks include Irish stout and Irish ale.
Given the splurge in spending, it will not come as a surprise if the stock market could Wearin' o' the Green in the honor of St. Patrick's Day. In particular, retailers, food and beverage companies could see huge jump in their stock prices as higher consumer spending will likely boost their revenues. So, raise a toast to the stocks in these sectors and try to find some hidden luck on this Irish festival.
Diageo Plc DEO
Based in London, Diageo is a global leader in alcohol beverages and has an outstanding portfolio of world famous brands across spirits, beer, cider, and wine categories. These brands include Johnnie Walker, Crown Royal, J&B, Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.
The Guinness brand will find its pot of gold as about 13 million pints are expected to be consumed on St. Patrick's Day. This is nearly four times the consumption on a normal day. Diageo saw positive earnings estimate revision of 33 cents over the past three months for the fiscal year (ending June 2018) with an expected growth of 18.84%. It has a Zacks Rank #2 (Buy) and a VGM Score of C. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Dollar General Corporation DG
Based in Goodlettsville, Dollar General is a discount retailer in the United States providing various merchandise products in the southern, southwestern, midwestern, and eastern United States. The company offers its merchandise in four categories - highly consumable, seasonal, home products and basic clothing. Highly consumable consists of packaged food, candy, snacks and refrigerated products, health and beauty aids, home cleaning supplies and pet supplies; seasonal consists of seasonal and holiday-related items, toys, stationery and hardware; home products consists of house wares and domestics, and basic clothing consists of casual everyday apparel.
St. Patrick Day themed items are available at Dollar Tree for as low as 75 cents. The stock saw solid earnings estimate revision of 62 cents over the past three months for the fiscal year (ending January 2019) and has an estimated growth rate of 24.34%. It has a Zacks Rank #2 and a VGM Score of B.
Papa Murphy's Holdings, Inc. FRSH
Based in Vancouver, Papa Murphy's operates as a franchisor and operator of the Take 'N' Bake pizza chain in the United States. In addition to scratch-made pizzas, the company offers a growing menu of grab 'n' go items, including salads, sides and desserts.
For St. Patrick's Day, the company is offering online a large, thin crust, one-topping pizza for just $3.14. The stock saw positive earnings estimate revision of a penny over the past three months for this year and has an estimated growth rate of 73.33%. It has a Zacks Rank #2 and a VGM Score of B.
Nordstrom Inc. JWN
Based in Seattle, Nordstrom is a leading fashion specialty retailer offering compelling clothing, shoes and accessories for men, women and children.
The company is selling holiday-themed graphic tees and baseball hats from Vineyard Vines, per Forbes. It saw solid earnings estimate revision of 57 cents over the past three months for the fiscal (ending January 2019) with expected growth of 15.54%. Nordstrom has a Zacks Rank #2 and a VGM Score of A.
Macy's Inc. M
Based in Cincinnati, Macy's, one of the nation's premier retailers, operates about 885 stores in 45 states, the District of Columbia, Guam and Puerto Rico, under the names of Macy's, Bloomingdale's, Bloomingdale's Outlet and Bluemercury, as well as macys.com, bloomingdales.com and bluemercury.com websites.
The company is selling St. Paddy's themed T-shirts with shamrock graphic and more. It saw solid earnings estimate revision of $1.13 over the past three months for the fiscal year (ending January 2019) though earnings are expected to decline a modest 3.71%. Macy's has a Zacks Rank #1 and a VGM Score of A.
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Diageo PLC (DEO): Free Stock Analysis Report
Nordstrom, Inc. (JWN): Free Stock Analysis Report
Dollar General Corporation (DG): Free Stock Analysis Report
Papa Murphy's Holdings, Inc. (FRSH): Free Stock Analysis Report
Macy's Inc (M): 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.
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 Based in London, Diageo is a global leader in alcohol beverages and has an outstanding portfolio of world famous brands across spirits, beer, cider, and wine categories. Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Nordstrom, Inc. (JWN): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Papa Murphy's Holdings, Inc. (FRSH): Free Stock Analysis Report Macy's Inc (M): Free Stock Analysis Report To read this article on Zacks.com click here. A large number of Americans plan to celebrate the Irish festival of St. Patrick's Day on Mar 17 this year and spend as much as $5.9 billion, per National Retail Federation .
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Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Nordstrom, Inc. (JWN): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Papa Murphy's Holdings, Inc. (FRSH): Free Stock Analysis Report Macy's Inc (M): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo Plc DEO Based in London, Diageo is a global leader in alcohol beverages and has an outstanding portfolio of world famous brands across spirits, beer, cider, and wine categories. The stock saw solid earnings estimate revision of 62 cents over the past three months for the fiscal year (ending January 2019) and has an estimated growth rate of 24.34%.
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Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Nordstrom, Inc. (JWN): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Papa Murphy's Holdings, Inc. (FRSH): Free Stock Analysis Report Macy's Inc (M): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo Plc DEO Based in London, Diageo is a global leader in alcohol beverages and has an outstanding portfolio of world famous brands across spirits, beer, cider, and wine categories. Investors should also note that St. Patrick's Day is the fourth largest drinking day in the United States, after New Year's Eve, Christmas, and Fourth of July with Guinness being the most popular brand.
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Diageo Plc DEO Based in London, Diageo is a global leader in alcohol beverages and has an outstanding portfolio of world famous brands across spirits, beer, cider, and wine categories. Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Nordstrom, Inc. (JWN): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Papa Murphy's Holdings, Inc. (FRSH): Free Stock Analysis Report Macy's Inc (M): Free Stock Analysis Report To read this article on Zacks.com click here. A large number of Americans plan to celebrate the Irish festival of St. Patrick's Day on Mar 17 this year and spend as much as $5.9 billion, per National Retail Federation .
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360759fe-3b3d-4c8f-8f03-20724ffcd539
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727886.0
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2018-03-15 00:00:00 UTC
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How Is Craft Brew Alliance Likely To Grow In the Next 2 Years?
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DEO
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https://www.nasdaq.com/articles/how-craft-brew-alliance-likely-grow-next-2-years-2018-03-15
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nan
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Craft Brew Alliance ( BREW ) is one of the top six brewers in the craft brewing segment of the U.S. brewing industry. While the domestic beer market has been facing declining shipments, the craft beer space has been the only source of growth. However, this segment has also been showing signs of a slowdown. The total shipments in 2017 increased by 1.4% , as compared to a 7% growth seen in 2016. Craft Brew Alliance has been facing declining shipments in recent years; on the other hand, it was able to increase its revenues by over 2% in FY 2017, and its comprehensive portfolio, together with national scale and innovative flavors, gives it a competitive advantage. Craft Brew Alliance has also expanded its partnership with Anheuser-Busch InBev ( BUD ), and in this respect, will take on brewing responsibilities for Anheuser-Busch's craft beer subsidiaries, in cases where using the A-B facility would be inefficient.
We believe Craft Brew Alliance's revenues will jump nearly 8% over the next two years. We have created an interactive dashboard which shows the forecast trends. You can modify the different revenue drivers to see how it will impact the company's expected revenues.
Estimating Craft Brew Alliance's Revenue Growth
Craft Brew Alliance's revenue comes from three sources: A-B & A-B (Anheuser-Busch) Related Revenue, Contract Brewing & Beer Related Revenue, and Brewpubs Revenue. The former two segments include brewing, and domestic and international sales, of craft beers and ciders from its breweries, while the latter constitutes the operation of five brewpubs.
Craft Brew Alliance is the only independent craft brewer in the U.S. to have established a wholly-aligned distribution network through its partnership with A-B. This partnership provides the company with national distribution, which results in both an effective distribution presence in each market and administrative efficiencies. While the volume in this segment has been undergoing a decline, the revenue per barrel has been increasing between 3% and 5% in the last couple of years. We expect these trends to continue, resulting in a 2% sales growth in this segment, translating to increased revenues to the tune of $3.55 million.
BREW has entered into multiple contract brewing arrangements, in order to absorb the excess capacity, through which the company produces beer as per the specifications designated by the arrangements. As noted earlier, the company has entered into an agreement with A-B, pursuant to which Craft Brew Alliance will brew and package beer for certain A-B affiliated companies. Given a new agreement signed in January of 2018, we expect the volume to increase over the next two years, along with continued improvement in the revenue per barrel metric. As per our estimates, the growth in the two metrics would result in a 60% rise in revenues from this segment.
The management has noted that restaurants in the on-premise channel have witnessed a challenging environment in general, and Craft Brew Alliance's Brewpubs segment was no exception. Lower traffic to these brewpubs have caused a decline in volumes, and while the revenue per barrel increased significantly in FY 2016, it fell marginally in FY 2017. Looking ahead, we expect a decline in both metrics to continue going forward, implying a $2.67 million revenue drop in this segment.
For CFOs and Finance Teams | Product, R&D, and Marketing Teams
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Like our charts? Explore example interactive dashboards and create your own.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Craft Brew Alliance has been facing declining shipments in recent years; on the other hand, it was able to increase its revenues by over 2% in FY 2017, and its comprehensive portfolio, together with national scale and innovative flavors, gives it a competitive advantage. The former two segments include brewing, and domestic and international sales, of craft beers and ciders from its breweries, while the latter constitutes the operation of five brewpubs. The management has noted that restaurants in the on-premise channel have witnessed a challenging environment in general, and Craft Brew Alliance's Brewpubs segment was no exception.
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While the domestic beer market has been facing declining shipments, the craft beer space has been the only source of growth. Estimating Craft Brew Alliance's Revenue Growth Craft Brew Alliance's revenue comes from three sources: A-B & A-B (Anheuser-Busch) Related Revenue, Contract Brewing & Beer Related Revenue, and Brewpubs Revenue. As noted earlier, the company has entered into an agreement with A-B, pursuant to which Craft Brew Alliance will brew and package beer for certain A-B affiliated companies.
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Craft Brew Alliance ( BREW ) is one of the top six brewers in the craft brewing segment of the U.S. brewing industry. Craft Brew Alliance has also expanded its partnership with Anheuser-Busch InBev ( BUD ), and in this respect, will take on brewing responsibilities for Anheuser-Busch's craft beer subsidiaries, in cases where using the A-B facility would be inefficient. Estimating Craft Brew Alliance's Revenue Growth Craft Brew Alliance's revenue comes from three sources: A-B & A-B (Anheuser-Busch) Related Revenue, Contract Brewing & Beer Related Revenue, and Brewpubs Revenue.
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Craft Brew Alliance ( BREW ) is one of the top six brewers in the craft brewing segment of the U.S. brewing industry. Estimating Craft Brew Alliance's Revenue Growth Craft Brew Alliance's revenue comes from three sources: A-B & A-B (Anheuser-Busch) Related Revenue, Contract Brewing & Beer Related Revenue, and Brewpubs Revenue. Given a new agreement signed in January of 2018, we expect the volume to increase over the next two years, along with continued improvement in the revenue per barrel metric.
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13eeddfd-42ca-4849-a9fc-bdd607a91a18
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727887.0
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2018-03-10 00:00:00 UTC
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3 Dividend Stocks That Thrive in Both Bull and Bear Markets
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DEO
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https://www.nasdaq.com/articles/3-dividend-stocks-thrive-both-bull-and-bear-markets-2018-03-10
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nan
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nan
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The stock market has been on one of its longest bull runs in recent history, lasting nearly a full decade. But eventually the economy will turn south, and stocks will follow, which can be a time of unease for investors.
Investors can brace for a downturn by buying shares of companies that can thrive in both bull and bear markets. Our Foolish investors think diversity helps 3M Co (NYSE: MMM) in any market, Diageo plc 's (NYSE: DEO) spirit sales are almost recession-proof, and Colgate-PalmoliveCompany (NYSE: CL) will still be cleaning teeth in a downturn.
60 years of dividend increases and counting: What else do you need?
Neha Chamaria (3M): Did you know that there are companies that haven't missed a dividend in 100 years or more? These are the kind of dividend stocks that can thrive in both bull and bear markets, simply because they are capable of growing their earnings, cash flow, and dividends even during downturns.
Just take a look at industrial conglomerate 3M's dividend history: It hasn't just paid a dividend for 100 consecutive years, but increased it for 60 straight years! That's one of the best dividend streaks you can find among publicly listed companies today, and one that wouldn't have been possible without 3M's diverse portfolio, which includes more than 60,000 products used across several industries, and powerful brands such as Post-It and Scotch.
The best part about owning a stock like 3M is that while you can expect small dividend hikes even during tough times, the rewards get bigger when the business thrives. For instance, 3M increased its dividend by 16% in fiscal 2017, backed by 12.4% growth in adjusted earnings per share and free cash flow generation of nearly $4.9 billion, or 100% of its net income.
If you are the kind of income investor who's happy with dividends that are steady and can grow year after year, or even decades, and don't care as much about yields -- 3M yields 2.3% currently -- 3M is a right fit for your portfolio.
Toasting a premier name in spirits
Rich Duprey(Diageo): Alcohol seems to do well no matter how the market goes, and among distillers, Diageo is one of the world's largest. It derives the bulk of its revenue from making Scotch whisky, which represents a quarter of its $15.9 billion in annual sales. Johnnie Walker is Diageo's premier brand, but it also owns a portfolio of other brands that hold the No. 1 or 2 position in various markets around the globe, including Buchanan's, which is the second-most popular scotch in the U.S.; Black & White, Brazil's best seller; and J&B, the top scotch in Spain.
Scotch whisky has the unique property of only being allowed to be made in Scotland, much like bourbon is a solely American spirit. While there is some consternation over the U.K. leaving the European Union next year, scotch exports shouldn't be a concern, as World Trade Organization regulations for spirits mandate no tariffs can be imposed on them. While other industries may go through a period of upheaval, Diageo's portfolio shouldn't be one of them.
In the U.S., the distiller is benefiting from the rise in the number of women drinking hard liquor , and Diageo has just launched a "Jane Walker" brand to complement its leading Johnnie Walker label. But spirits of all types are increasing in popularity, though mostly the so-called "browns" -- whiskey and bourbon -- are seeing the greatest growth.
Diageo has been a consistent dividend payer since it was created in 1997 by the merger of Guinness and Grand Metropolitan, and it has raised its payout in each of the last six years. The $3.46-per-share dividend currently yields a solid 2.6%, which, when coupled with its steady growth in revenue, suggests that Diageo is a stock investors can count on when times are good, but even more when times get tough.
The consumer staples titan
Travis Hoium(Colgate-Palmolive): When the stock market is in bull or bear territory, do you change your toothbrushing or dishwashing habits at all? Probably not, and if you're like most consumers, you are probably loyal to one brand for those consumer staples, which makes Colgate-Palmolive almost recession-proof.
I could talk about how consumer staples have very little fluctuation in their demand or how major brands like Colgate-Palmolive own valuable shelf space in stores , but I think the chart below tells a better story. Since Jan. 1, 1988, there have been three recessions and coinciding bear markets, one of which devastated the economy in 2008 and 2009. Can you see where those bear markets are in either the stock price or dividend paid below?
CL data by YCharts
It isn't that Colgate-Palmolive stock doesn't have down periods (as you can see in 2000 and in 2008/2009 the stock did fall along with the market). But it's not the kind of stock that's going to collapse if a recession interrupts the long-term bull market we've been in.
Colgate-Palmolive won't be a high-growth stock for investors, but the dividend yield of 2.3% is rock solid and will grow steadily over time. If you're looking for income in any kind of market, this is a great stock for your portfolio.
Prepared for any market
Being prepared for a bear market is a good idea for investors because the bull market we're in will eventually end. When it does, 3M, Diageo, and Colgate-Palmolive have the kind of businesses that will withstand the downturn.
10 stocks we like better than 3M
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 10 best stocks for investors to buy right now... and 3M wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of March 5, 2018
Neha Chamaria owns shares of Colgate-Palmolive. Rich Duprey has no position in any of the stocks mentioned. Travis Hoium owns shares of 3M. The Motley Fool recommends 3M and 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.
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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Our Foolish investors think diversity helps 3M Co (NYSE: MMM) in any market, Diageo plc 's (NYSE: DEO) spirit sales are almost recession-proof, and Colgate-PalmoliveCompany (NYSE: CL) will still be cleaning teeth in a downturn. That's one of the best dividend streaks you can find among publicly listed companies today, and one that wouldn't have been possible without 3M's diverse portfolio, which includes more than 60,000 products used across several industries, and powerful brands such as Post-It and Scotch. While there is some consternation over the U.K. leaving the European Union next year, scotch exports shouldn't be a concern, as World Trade Organization regulations for spirits mandate no tariffs can be imposed on them.
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Our Foolish investors think diversity helps 3M Co (NYSE: MMM) in any market, Diageo plc 's (NYSE: DEO) spirit sales are almost recession-proof, and Colgate-PalmoliveCompany (NYSE: CL) will still be cleaning teeth in a downturn. The $3.46-per-share dividend currently yields a solid 2.6%, which, when coupled with its steady growth in revenue, suggests that Diageo is a stock investors can count on when times are good, but even more when times get tough. The consumer staples titan Travis Hoium(Colgate-Palmolive): When the stock market is in bull or bear territory, do you change your toothbrushing or dishwashing habits at all?
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Our Foolish investors think diversity helps 3M Co (NYSE: MMM) in any market, Diageo plc 's (NYSE: DEO) spirit sales are almost recession-proof, and Colgate-PalmoliveCompany (NYSE: CL) will still be cleaning teeth in a downturn. These are the kind of dividend stocks that can thrive in both bull and bear markets, simply because they are capable of growing their earnings, cash flow, and dividends even during downturns. The $3.46-per-share dividend currently yields a solid 2.6%, which, when coupled with its steady growth in revenue, suggests that Diageo is a stock investors can count on when times are good, but even more when times get tough.
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Our Foolish investors think diversity helps 3M Co (NYSE: MMM) in any market, Diageo plc 's (NYSE: DEO) spirit sales are almost recession-proof, and Colgate-PalmoliveCompany (NYSE: CL) will still be cleaning teeth in a downturn. Investors can brace for a downturn by buying shares of companies that can thrive in both bull and bear markets. These are the kind of dividend stocks that can thrive in both bull and bear markets, simply because they are capable of growing their earnings, cash flow, and dividends even during downturns.
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727888.0
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2018-03-09 00:00:00 UTC
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Zacks Value Investor Highlights: Diageo, Mylan, Sony, AbbVie and Walgreens
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DEO
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https://www.nasdaq.com/articles/zacks-value-investor-highlights%3A-diageo-mylan-sony-abbvie-and-walgreens-2018-03-09
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nan
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For Immediate Release
Chicago, IL - March 9, 2018 - Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:
( https://www.zacks.com/stock/news/294965/want-to-be-a-buy-and-hold-investor-3-strategies )
Want to Be a Buy-and-Hold Investor? 3 Strategies
Welcome to Episode #84 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
Do you want to be a buy and hold investor but just don't know where to start?
Buy and hold investing is one of the toughest types of investing to do because it calls for you to go against human nature for the instant big payout. After all, why do we play the lottery? We love the idea of becoming a millionaire overnight.
Buy and hold investing is slow and slogging. The payout may not come for several decades. Who has the guts to stick it out that long?
But for those investors who do have the guts, buy and hold investing can pay off with big returns.
3 Strategies for Buy and Hold Investing
1. Start Young. The longer you have to invest, the more you'll reap the rewards of compounding.
2. Diversify. Don't just buy one stock or even two. What if one of them is a Bear Stearns or a Wachovia? Spread out your risk.
3. Don't Get Fancy. You don't need the latest fad stock or biotech wonder. Stick with the basics. Buy companies that have solid fundamentals and strong brands.
Stocks to Buy for a Buy and Hold Portfolio Today
When you read about successful buy and hold investors, they're almost always invested in companies you've heard of.
Therefore, Tracey screened for big cap companies, with Zacks Ranks of #1 (Strong Buy), #2 (Buy) or #3 (Hold), which also had a value component of a P/E under the average of the S&P 500 which is about 17.5.
1. Diageo PLCDEO isn't technically a value stock. It has a forward P/E of 20. But it's expected to grow earnings by 18% in fiscal 2018. The maker of Guinness, Baileys and Johnnie Walker also pays a dividend currently yielding a healthy 2.6%.
2. Mylan N.V.MYL is dirt cheap. This drug company trades with a forward P/E of just 7.8. It also has earnings growth which is expected to be 17.1% in 2018.
3. SonySNE is big in entertainment but is also moving into the self-driving car market as it's working on the sensors. It's a value stock, with a forward P/E of 13.1. Sony also pays a dividend, currently yielding 0.3%.
4. AbbVieABBV is a rare growth and value stock. This biopharmaceutical has a forward P/E of 15.4 yet is expected to grow earnings by 33.9% in 2018. As an extra bonus, shareholders also get a dividend yielding 2.5%.
5. Walgreens BootsWBA has pulled back off its highs so it's cheaper than in January 2018. It trades with a forward P/E of 12.2. It's closing on the Rite Aid deal in 2018 which will add another 1600 stores. Earnings are expected to rise 13.5% in fiscal 2018.
What else should you know about being a buy and hold investor?
Find out in this week's podcast.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion - more than a 3,800% increase in the previous 12 months. They're now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks' has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks. >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
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Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .
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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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AbbVie Inc. (ABBV): Free Stock Analysis Report
Sony Corp Ord (SNE): Free Stock Analysis Report
Diageo PLC (DEO): Free Stock Analysis Report
Mylan N.V. (MYL): Free Stock Analysis Report
Walgreens Boots Alliance, Inc. (WBA): 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.
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 PLCDEO isn't technically a value stock. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
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Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo PLCDEO isn't technically a value stock. For Immediate Release Chicago, IL - March 9, 2018 - Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec.
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Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo PLCDEO isn't technically a value stock. 3 Strategies Welcome to Episode #84 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
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Diageo PLCDEO isn't technically a value stock. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. 3 Strategies Welcome to Episode #84 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
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2018-03-08 00:00:00 UTC
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Want to be a Buy and Hold Investor? 3 Strategies
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https://www.nasdaq.com/articles/want-be-buy-and-hold-investor-3-strategies-2018-03-08
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(0: 30 ) - Buy and Hold Value Investing
(3: 30 ) - Examples of Successful Long Term Retail Investors
(7: 35 ) - Buy and Hold Strategies
(11: 45 ) - Tracey's Top Stock Picks
(17: 45 ) - Episode Roundup: DEO, MYL, SNE, ABBV, WBA
Welcome to Episode #84 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
Do you want to be a buy and hold investor but just don't know where to start?
Buy and hold investing is one of the toughest types of investing to do because it calls for you to go against human nature for the instant big payout. After all, why do we play the lottery? We love the idea of becoming a millionaire overnight.
Buy and hold investing is slow and slogging. The payout may not come for several decades. Who has the guts to stick it out that long?
But for those investors who do have the guts, buy and hold investing can pay off with big returns.
3 Strategies for Buy and Hold Investing
1. Start Young. The longer you have to invest, the more you'll reap the rewards of compounding.
2. Diversify. Don't just buy one stock or even two. What if one of them is a Bear Stearns or a Wachovia? Spread out your risk.
3. Don't Get Fancy. You don't need the latest fad stock or biotech wonder. Stick with the basics. Buy companies that have solid fundamentals and strong brands.
Stocks to Buy for a Buy and Hold Portfolio Today
When you read about successful buy and hold investors, they're almost always invested in companies you've heard of.
Therefore, Tracey screened for big cap companies, with Zacks Ranks of #1 (Strong Buy), #2 (Buy) or #3 (Hold), which also had a value component of a P/E under the average of the S&P 500 which is about 17.5.
1. Diageo PLC DEO isn't technically a value stock. It has a forward P/E of 20. But it's expected to grow earnings by 18% in fiscal 2018. The maker of Guinness, Baileys and Johnnie Walker also pays a dividend currently yielding a healthy 2.6%.
2. Mylan N.V. MYL is dirt cheap. This drug company trades with a forward P/E of just 7.8. It also has earnings growth which is expected to be 17.1% in 2018.
3. Sony SNE is big in entertainment but is also moving into the self-driving car market as it's working on the sensors. It's a value stock, with a forward P/E of 13.1. Sony also pays a dividend, currently yielding 0.3%.
4. AbbVie ABBV is a rare growth and value stock. This biopharmaceutical has a forward P/E of 15.4 yet is expected to grow earnings by 33.9% in 2018. As an extra bonus, shareholders also get a dividend yielding 2.5%.
5. Walgreens Boots WBA has pulled back off its highs so it's cheaper than in January 2018. It trades with a forward P/E of 12.2. It's closing on the Rite Aid deal in 2018 which will add another 1600 stores. Earnings are expected to rise 13.5% in fiscal 2018.
What else should you know about being a buy and hold investor?
Find out in this week's podcast.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion - more than a 3,800% increase in the previous 12 months. They're now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks' has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks. >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Sony Corp Ord (SNE): Free Stock Analysis Report
Diageo PLC (DEO): Free Stock Analysis Report
Mylan N.V. (MYL): Free Stock Analysis Report
Walgreens Boots Alliance, Inc. (WBA): 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.
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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(0: 30 ) - Buy and Hold Value Investing (3: 30 ) - Examples of Successful Long Term Retail Investors (7: 35 ) - Buy and Hold Strategies (11: 45 ) - Tracey's Top Stock Picks (17: 45 ) - Episode Roundup: DEO, MYL, SNE, ABBV, WBA Welcome to Episode #84 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks. Diageo PLC DEO isn't technically a value stock. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here.
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(0: 30 ) - Buy and Hold Value Investing (3: 30 ) - Examples of Successful Long Term Retail Investors (7: 35 ) - Buy and Hold Strategies (11: 45 ) - Tracey's Top Stock Picks (17: 45 ) - Episode Roundup: DEO, MYL, SNE, ABBV, WBA Welcome to Episode #84 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo PLC DEO isn't technically a value stock.
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(0: 30 ) - Buy and Hold Value Investing (3: 30 ) - Examples of Successful Long Term Retail Investors (7: 35 ) - Buy and Hold Strategies (11: 45 ) - Tracey's Top Stock Picks (17: 45 ) - Episode Roundup: DEO, MYL, SNE, ABBV, WBA Welcome to Episode #84 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo PLC DEO isn't technically a value stock.
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(0: 30 ) - Buy and Hold Value Investing (3: 30 ) - Examples of Successful Long Term Retail Investors (7: 35 ) - Buy and Hold Strategies (11: 45 ) - Tracey's Top Stock Picks (17: 45 ) - Episode Roundup: DEO, MYL, SNE, ABBV, WBA Welcome to Episode #84 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks. Diageo PLC DEO isn't technically a value stock. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Sony Corp Ord (SNE): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report To read this article on Zacks.com click here.
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2018-03-08 00:00:00 UTC
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Want to be a Buy and Hold Investor? 3 Strategies
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DEO
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https://www.nasdaq.com/articles/want-be-buy-and-hold-investor-3-strategies-2018-03-08-0
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Welcome to Episode #84 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
Do you want to be a buy and hold investor but just don't know where to start?
Buy and hold investing is one of the toughest types of investing to do because it calls for you to go against human nature for the instant big payout. After all, why do we play the lottery? We love the idea of becoming a millionaire overnight.
Buy and hold investing is slow and slogging. The payout may not come for several decades. Who has the guts to stick it out that long?
But for those investors wh
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Welcome to Episode #84 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks. Do you want to be a buy and hold investor but just don't know where to start? Buy and hold investing is slow and slogging.
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Do you want to be a buy and hold investor but just don't know where to start? Buy and hold investing is one of the toughest types of investing to do because it calls for you to go against human nature for the instant big payout. Buy and hold investing is slow and slogging.
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Welcome to Episode #84 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks. Buy and hold investing is one of the toughest types of investing to do because it calls for you to go against human nature for the instant big payout. We love the idea of becoming a millionaire overnight.
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Do you want to be a buy and hold investor but just don't know where to start? Buy and hold investing is one of the toughest types of investing to do because it calls for you to go against human nature for the instant big payout. But for those investors wh
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2018-03-07 00:00:00 UTC
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Trade War Talks Heat Up: ETFs & Stocks in Focus
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https://www.nasdaq.com/articles/trade-war-talks-heat-etfs-stocks-focus-2018-03-07
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The European Union (EU) has threatened the United States of a tit-for-tat situation should Trump impose a 25% tax on foreign steel. This is especially true as the EU would propose a retaliatory tariff of 25% on a range of consumer, agricultural and steel products imported from the country, valued about 2.8 billion euros ($3.5 billion).
The targeted products include shirts, jeans, cosmetics, other consumer goods, motorbikes and pleasure boats worth around 1 billion euros; orange juice, bourbon whiskey, corn and other agricultural products totaling 951 million euros; and steel and other industrial products valued at 854 million euros.
In a counter-attack, Trump warned the EU that he would impose a 25% penalty on European car imports if the bloc carried out punitive measures against the metals tariffs. He reiterated his commitment to levying tariffs on steel and aluminum, saying that the United States has poor trading conditions with other nations, including those in the EU. According to the latest data from the European Automobile Manufacturers' Association (ACEA), EU and U.S. auto-related trade account for around 10% of total trade between the two regions (read: Trump Tariffs Put These Sector ETFs & Stocks in Focus ).
Intensifying talks of a trade war between Trump and the EU have been unnerving investors lately, putting many stocks and ETFs in focus. Here, we have discussed some.
What's Hot
The penalty on European car imports could spell trouble for popular car manufacturers like Volkswagen and BMW , affecting the German auto industry. These luxury carmakers also manufacture cars in America, shipping billions of dollars abroad. According to Germany's Association of the Automotive Industry, this country produced 854,000 vehicles in the United States in 2016, marking a four-fold increase in about seven years. More than 60% of those were exported.
As such, iShares MSCI Germany ETF EWG targeting the German stock market, will likely feel the pressure. The ETF has a Zacks Rank #2 (Buy) with a Medium risk outlook (read: ETFs to Buy as German Economy Grows ).
Coming to the EU proposed retaliation against U.S. goods, manufacturer and seller of motorcycles Harley Davidson HOG will be hit hard as about 16% of the company's sales come from Europe. The company cautioned that the tariffs "will drive up costs for all products with these raw materials, regardless of their origin." It also stated "a punitive, retaliatory tariff on Harley-Davidson motorcycles in any market would have a significant impact on their sales, their dealers, suppliers and the customers in those markets." The stock has a Zacks Rank #3 (Hold) and a VGM Score of D.
Harley Davidson accounts for a minor 1.5% share in the only pure play auto ETF - First Trust NASDAQ Global Auto ETF CARZ (read: Should You Steer Clear of Auto ETFs & Stocks? ).
Other iconic American brands that will be hurt include Levi Strauss & Co, the corporate parent ofglobal marketshare leader Levi's, and bourbon whiskey. Notably, Europe has been a major contributor to Levi's sales, with 20% increase in jeans sales last year.
Meanwhile, the additional tax on bourbon whiskey will make the product more expensive, hurting sales of the likes of Brown Forman Corporation's BF.A Jack Daniel's family of whiskey, Diageo's DEO Bulleit Bourbon Whiskey and Constellation Brands's STZ Black Velvet. The three stocks have a Zacks Rank #3.
This would negatively impact the performance of the Spirited Funds/ETFMG Whiskey and Spirits ETF WSKY targeting the fast-growing world of high-end whiskey and spirits. In fact, it has heavy exposure to Diageo, which dominates the fund's return with 16.6% of total assets.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
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
Constellation Brands Inc (STZ): Free Stock Analysis Report
Diageo PLC (DEO): Free Stock Analysis Report
ISHARS-GERMANY (EWG): ETF Research Reports
FT-NDQ GL AUTO (CARZ): ETF Research Reports
ETFMG-WSKY&SPRT (WSKY): ETF Research Reports
Harley-Davidson, Inc. (HOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meanwhile, the additional tax on bourbon whiskey will make the product more expensive, hurting sales of the likes of Brown Forman Corporation's BF.A Jack Daniel's family of whiskey, Diageo's DEO Bulleit Bourbon Whiskey and Constellation Brands's STZ Black Velvet. Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report ISHARS-GERMANY (EWG): ETF Research Reports FT-NDQ GL AUTO (CARZ): ETF Research Reports ETFMG-WSKY&SPRT (WSKY): ETF Research Reports Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. The European Union (EU) has threatened the United States of a tit-for-tat situation should Trump impose a 25% tax on foreign steel.
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Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report ISHARS-GERMANY (EWG): ETF Research Reports FT-NDQ GL AUTO (CARZ): ETF Research Reports ETFMG-WSKY&SPRT (WSKY): ETF Research Reports Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, the additional tax on bourbon whiskey will make the product more expensive, hurting sales of the likes of Brown Forman Corporation's BF.A Jack Daniel's family of whiskey, Diageo's DEO Bulleit Bourbon Whiskey and Constellation Brands's STZ Black Velvet. This is especially true as the EU would propose a retaliatory tariff of 25% on a range of consumer, agricultural and steel products imported from the country, valued about 2.8 billion euros ($3.5 billion).
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Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report ISHARS-GERMANY (EWG): ETF Research Reports FT-NDQ GL AUTO (CARZ): ETF Research Reports ETFMG-WSKY&SPRT (WSKY): ETF Research Reports Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, the additional tax on bourbon whiskey will make the product more expensive, hurting sales of the likes of Brown Forman Corporation's BF.A Jack Daniel's family of whiskey, Diageo's DEO Bulleit Bourbon Whiskey and Constellation Brands's STZ Black Velvet. According to the latest data from the European Automobile Manufacturers' Association (ACEA), EU and U.S. auto-related trade account for around 10% of total trade between the two regions (read: Trump Tariffs Put These Sector ETFs & Stocks in Focus ).
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Meanwhile, the additional tax on bourbon whiskey will make the product more expensive, hurting sales of the likes of Brown Forman Corporation's BF.A Jack Daniel's family of whiskey, Diageo's DEO Bulleit Bourbon Whiskey and Constellation Brands's STZ Black Velvet. Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report ISHARS-GERMANY (EWG): ETF Research Reports FT-NDQ GL AUTO (CARZ): ETF Research Reports ETFMG-WSKY&SPRT (WSKY): ETF Research Reports Harley-Davidson, Inc. (HOG): Free Stock Analysis Report To read this article on Zacks.com click here. The three stocks have a Zacks Rank #3.
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2018-03-04 00:00:00 UTC
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Drown Your Market Volatility Blues With These Alcohol Stock Dividends
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https://www.nasdaq.com/articles/drown-your-market-volatility-blues-these-alcohol-stock-dividends-2018-03-04
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The year 2018 started with a bang, but exuberance abruptly ended with the onset of February. After a two-year run with barely a hiccup, the stock market correction was a reminder for many that stocks can move in more directions than one.
If that reminder has you rethinking where your money is invested, alcohol stocks might be a place to begin. Here are five that offer dividends that can help make up for the pain.
Dividends will make it all better
Chart by author. Data source: Yahoo! Finance. Annual dividend yields as of this writing.
All of the above stocks pay attractive dividends, with the exception of Constellation, with its less than 1% yield. However, what it lacks in dividend payouts it has made up for in share price appreciation , doubling several times over the last five years.
Overall, share price returns are relatively unimpressive. Alcohol is an old business, after all. However, alcohol holds up well regardless of economic conditions. Consumers tend to consume more but cheaper alcohol when the economy hits a rough patch. Nevertheless, add those dividend payments in, and each stock has provided steady returns in the last decade.
Data by YCharts.
News at the bar
There have been quite a few shake-ups in alcohol in recent years. Big manufacturers have been consolidating, especially as small craft-style breweries, wineries, and distilleries have started popping up all over the world. This has helped the biggest players maintain their bottom-line profit and keep those dividends flowing.
In the case of Constellation Brands, the company initiated a dividend payment in 2015 after successfully integrating the U.S. portion of Grupo Modelo (Corona, Modelo, and Pacifico) that it acquired from A-B InBev in 2013, and has increased it nearly 50% since then.
Data by YCharts. TTM = trailing 12 months.
A-B InBev has been at the center of several big moves in the industry. A decade ago, it was the combination of Budweiser with the Belgian brewer InBev, and in 2016, the conglomerate added most of the assets of brewer SABMiller. The Miller brand in the U.S. was sold to Molson Coors to gain regulatory approval. A-B InBev is now easily the world's largest beer maker and is trying to streamline operations to boost profitability . In addition, the company has also taken advantage of the craft beer boom in the U.S. by acquiring 10 regional brewers over the last few years.
Diageo was formed in 1997 with the merger of Guinness and Grand Metropolitan. Brands include Guinness beer and a big piece of the distilled spirits market. While Diageo doesn't boast the same growth rates as rival Constellation -- net sales were up only 1.7% as of last report -- the well-established portfolio is rewarding patient shareholders nonetheless. Adjusted earnings per share increased 9.4% due to higher operating profits and lower interest expense, and the dividend was raised 5%.
Last on the list is Altria, primarily a tobacco company best known for the Marlboro brand. It made the cut, though, as it owns a large stake in A-B InBev and owns wine labels Chateau Ste. Michelle, Colombia Crest, and 14 Hands. Wine was 3% of revenue in 2017, and the interest in A-B InBev contributed only a few cents to earnings per share. However, both add to the stability of the overall business and help make an attractive dividend paying at over 4% a year.
If fighting market swings to the downside is your goal, collecting income from dividend paying companies is a good strategy. These best-in-class companies could help do just that with their attractive dividend yields and well-established portfolios of alcohol brands.
10 stocks we like better than Constellation Brands
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 10 best stocks for investors to buy right now... and Constellation Brands wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 5, 2018
Nicholas Rossolillo has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Anheuser-Busch InBev NV. The Motley Fool owns shares of Molson Coors Brewing. 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.
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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While Diageo doesn't boast the same growth rates as rival Constellation -- net sales were up only 1.7% as of last report -- the well-established portfolio is rewarding patient shareholders nonetheless. Adjusted earnings per share increased 9.4% due to higher operating profits and lower interest expense, and the dividend was raised 5%. If fighting market swings to the downside is your goal, collecting income from dividend paying companies is a good strategy.
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All of the above stocks pay attractive dividends, with the exception of Constellation, with its less than 1% yield. These best-in-class companies could help do just that with their attractive dividend yields and well-established portfolios of alcohol brands. The Motley Fool owns shares of Molson Coors Brewing.
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In the case of Constellation Brands, the company initiated a dividend payment in 2015 after successfully integrating the U.S. portion of Grupo Modelo (Corona, Modelo, and Pacifico) that it acquired from A-B InBev in 2013, and has increased it nearly 50% since then. These best-in-class companies could help do just that with their attractive dividend yields and well-established portfolios of alcohol brands. 10 stocks we like better than Constellation Brands When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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Alcohol is an old business, after all. However, both add to the stability of the overall business and help make an attractive dividend paying at over 4% a year. These best-in-class companies could help do just that with their attractive dividend yields and well-established portfolios of alcohol brands.
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2018-03-01 00:00:00 UTC
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Diageo Shares Cross Below 200 DMA
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https://www.nasdaq.com/articles/diageo-shares-cross-below-200-dma-2018-03-01
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In trading on Thursday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $132.99, changing hands as low as $132.73 per share. Diageo plc shares are currently trading off about 1.3% 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 $110.92 per share, with $147.62 as the 52 week high point - that compares with a last trade of $133.77.
According to the ETF Finder at ETF Channel, DEO makes up 2.48% of the Vanguard FTSE Europe ETF (Symbol: VGK) which is trading lower by about 1% on the day Thursday.
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.
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 below their 200 day moving average of $132.99, changing hands as low as $132.73 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 $110.92 per share, with $147.62 as the 52 week high point - that compares with a last trade of $133.77. According to the ETF Finder at ETF Channel, DEO makes up 2.48% of the Vanguard FTSE Europe ETF (Symbol: VGK) which is trading lower by about 1% on the day Thursday.
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In trading on Thursday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $132.99, changing hands as low as $132.73 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 $110.92 per share, with $147.62 as the 52 week high point - that compares with a last trade of $133.77. According to the ETF Finder at ETF Channel, DEO makes up 2.48% of the Vanguard FTSE Europe ETF (Symbol: VGK) which is trading lower by about 1% on the day Thursday.
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In trading on Thursday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $132.99, changing hands as low as $132.73 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 $110.92 per share, with $147.62 as the 52 week high point - that compares with a last trade of $133.77. According to the ETF Finder at ETF Channel, DEO makes up 2.48% of the Vanguard FTSE Europe ETF (Symbol: VGK) which is trading lower by about 1% on the day Thursday.
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In trading on Thursday, shares of Diageo plc (Symbol: DEO) crossed below their 200 day moving average of $132.99, changing hands as low as $132.73 per share. According to the ETF Finder at ETF Channel, DEO makes up 2.48% of the Vanguard FTSE Europe ETF (Symbol: VGK) which is trading lower by about 1% on the day Thursday. 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 $110.92 per share, with $147.62 as the 52 week high point - that compares with a last trade of $133.77.
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2018-02-28 00:00:00 UTC
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What Are Diageo's Key Sources Of Revenue?
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https://www.nasdaq.com/articles/what-are-diageos-key-sources-revenue-2018-02-28
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North America, Europe, and the Asia Pacific can be considered the key sources of revenue for Diageo ( DEO ). Together their contribution to the company's revenue has increased from 77.4% to 78.4% from FY 2015 to FY 2017.
We have a price estimate of $159 for Diageo , which is higher than the current market price. The charts below have been made using our new, interactive platform. Our interactive model charts out Diageo's key sources of revenues and you can modify the blue dots in this model to analyze the impact of a change in segment revenues on DEO's total sales.
North America is the largest premium drinks market in the world, and accounts for about one-third of Diageo's net sales and half of its operating profits. It is comprised of US Spirits, Diageo Guinness USA (DGUSA), and Diageo Canada. A slowdown in the region had been dragging the otherwise upbeat earnings of the company in the past. Hence, it had become imperative for the company to reverse its sales decline in the region. The company has been able to accomplish this, spurred on by higher sales of North American whiskey, scotch, and tequila brands.
European revenues have been dampened by negative foreign currency translations in recent years. In FY 2017, while the European volumes increased by just 1%, the revenue was up by 11% in pounds, implying a significant hike in the RPU. However, once the figures are converted into dollars, the metric actually shows a decline. The region currently accounts for almost a quarter of the company's sales.
Diageo's acquisition of United Spirits, India's leading alcoholic beverage company, which gave it a 54.78% stake in the company, bestowed it a foothold in the country, and provided it the footprint to compete and win in India. The region, Diageo's second biggest market in terms of revenue, is considered to be a key growth market for the company, given the increasing disposable income, as well as the addition of LPA (legal purchase age) consumers. However, certain factors, such as demonetization, the implementation of the Goods and Services Tax ( GST ), and a Supreme Court ruling prohibiting the sale of alcohol in certain outlets near highways, have resulted in a decline in volumes in India. China, on the other hand, has been witnessing increased volumes and revenues, which together with higher sales of premium brands in India resulted in a revenue increase in FY 2017.
See Our Complete Analysis For Diageo Here
Have more questions on Diageo? See the links below:
Interest Builds Up In The Premium Tequila Market
A Closer Look At Diageo's Valuation
Why Is India Considered A Key Growth Market For Diageo?
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
More Trefis Research
Like our charts? Explore example interactive dashboards and create your own.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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North America, Europe, and the Asia Pacific can be considered the key sources of revenue for Diageo ( DEO ). Our interactive model charts out Diageo's key sources of revenues and you can modify the blue dots in this model to analyze the impact of a change in segment revenues on DEO's total sales. North America is the largest premium drinks market in the world, and accounts for about one-third of Diageo's net sales and half of its operating profits.
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Our interactive model charts out Diageo's key sources of revenues and you can modify the blue dots in this model to analyze the impact of a change in segment revenues on DEO's total sales. North America, Europe, and the Asia Pacific can be considered the key sources of revenue for Diageo ( DEO ). The region, Diageo's second biggest market in terms of revenue, is considered to be a key growth market for the company, given the increasing disposable income, as well as the addition of LPA (legal purchase age) consumers.
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Our interactive model charts out Diageo's key sources of revenues and you can modify the blue dots in this model to analyze the impact of a change in segment revenues on DEO's total sales. North America, Europe, and the Asia Pacific can be considered the key sources of revenue for Diageo ( DEO ). The region, Diageo's second biggest market in terms of revenue, is considered to be a key growth market for the company, given the increasing disposable income, as well as the addition of LPA (legal purchase age) consumers.
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North America, Europe, and the Asia Pacific can be considered the key sources of revenue for Diageo ( DEO ). Our interactive model charts out Diageo's key sources of revenues and you can modify the blue dots in this model to analyze the impact of a change in segment revenues on DEO's total sales. Hence, it had become imperative for the company to reverse its sales decline in the region.
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2018-02-16 00:00:00 UTC
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The 10 Safest Stocks to Buy If Markets Overheat Again
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https://www.nasdaq.com/articles/10-safest-stocks-buy-if-markets-overheat-again-2018-02-16
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Yes, the markets are marching back from their bone-rattling drop, but don't think that everything is "back to normal." There's a new normal in town now. The U.S. has a new board chair of the Federal Reserve and the era of quantitative easing is over. And it's not just over in the U.S., the past decade of central bank-controlled easy money and low rates is winding down all over the globe. It's more vital than ever to find safe stocks to buy.
We had never seen central bank intervention like we have in the past decade, and now we're entering a new phase of the unknown - getting the domestic and global economies back in play on the free market side.
The balancing act is still real. Too much inflation will overheat the economy and the dollar will not just weaken, but collapse, sending stocks tumbling. Too-little rate rising may end up choking off expansion and bring us back into recession. And after all this QE, there's little the central banks could do to help.
3 Chinese Internet Stocks That Could Post Huge Returns In The Next 5 Years
That's why I wanted to share the 10 safest stock to buy today. Regardless of what happens, having some solid growth stocks will keep you cool if things overheat again.
Safe Stocks to Buy Today: Nike Inc (NKE)
Source: Shutterstock
Nike Inc (NYSE: NKE ) is coming under some pressure from competitors like German sports firms Adidas and Puma . It also saw the last throes of its shoe retailers' demise as online retailing starts to kill middlemen, which hurts keep the brand in front of potential consumers.
NKE is at a pivot point now and needs to makes some tactical changes in 2018 to keep its might in the global sports world.
Certainly, the Olympics help, since Nike is sponsoring the US teams clothing. And the weakening dollar will also help international sales sectors look better. And remember, with a market cap of $111 billion, it's 3x larger than its nearest direct competitor and has demonstrated its resilience in transitional markets many times over.
5 New Strong Buy Stocks for February 16th
And it's a great long-term growth stock in times of turmoil.
Safe Stocks to Buy Today: Electronic Arts Inc (EA)
Source: Shutterstock
Electronic Arts Inc (NASDAQ: EA ) is one of the biggest video game makers in the world. It makes franchises with FIFA , Madden NFL , Battlefield , The Sims and Need for Speed .
This last quarter's earnings were not stunning, but earnings came in ahead of analysts' expectations. And EA has plenty of launches this year that will keep the revenue rolling.
So far in 2018, EA stock is up 20%, and it was a strong performer when the markets sold off. That's a good sign that it is seen as a safe harbor stock when volatility increases.
Also, mobile gaming growth is expected nearly double between 2016 and 2020, according to Statista .
Safe Stocks to Buy Today: Sony (SNE)
Source: Dalvenjah via Flickr
Sony Corp (ADR) (NYSE: SNE ) was the best in class technology in the 1970s through the 1990s. Then, Apple Inc (NASDAQ: AAPL ) came along and changed the game.
SNE's Trinitron televisions, and Walkman tape and the CD players were all the rage until the iPod hit the scene.
Since then, SNE has been a steady, diversified technology company, but an entire generation of consumers have considered it nothing more than another brand that for some reason charges a premium for its products.
But that is changing. Its PlayStation video game division is finally differentiating itself from competitors. And it other division it's recommitting to being a world-class, innovative consumer electronics brand again.
5 Hot Stocks Leading the Dow ETF Rebound
Plus, it has the staying power and the R&D to make it happen.
Safe Stocks to Buy Today: Netflix (NFLX)
Source: via Netflix
Netflix Inc (NASDAQ: NFLX ) is a juggernaut. Yes, it has a PE that's over 200. But year to date, the stock is up 45% - including the 1000-plus point down week we just had. And in the past 12 months, NFLX stock is up nearly 100.
That's pretty impressive for company with a market cap of $120 billion.
And the thing is, NFLX is still growing and becoming stronger.
Remember, there is no one in this space that is trying to compete with NFLX. There are plenty of content firms that want to grab some of its market share, but no one has committed to building original content for viewers around the world like NFLX.
What's more, NFLX has always been a streaming service, so it doesn't have legacy contracts with cable providers that can weigh growth and margins.
Safe Stocks to Buy Today: Diageo (DEO)
Source: Mustafa Khayat Via Flickr
Diageo plc (ADR) (NYSE: DEO ) is a spirits company that is twice as big by market cap as its closest competition.
Crown Royal , Ciroc , Smirnoff , Bailey's , Ketel One , Guinness , Tanqueray , Captain Morgan , Bulleit , are just a few of the brands that are in the DEO stable.
When the markets get bouncy and the economy starts to undergo a transition like the one we're experiencing now, it is usually cause for celebration as well as trepidation.
Either way, 'sin' stocks are at their best in these times, because either way people searching out a drink.
10 Dividend Stocks to Buy With Low Yields, But Big Dividend Growth
DEO stock had a solid 12 months, and got hit in the selloff a bit. But it's regained most of its loss and is set for a strong 2018.
Safe Stocks to Buy Today: Lifetime (LCUT)
Lifetime Brands Inc (NASDAQ: LCUT ) designs and manufactures kitchenware and tableware for more than 30 name brand companies, including Faberware , Kitchen Aid , Mikasa , Pfaltzgraff , Mossy Oak and Gorham .
This is a smaller stock, with a market cap of around $235 million. But it's one of the bigger players in this niche space. LCUT has done a very good job finding brands in growth sectors that competitors have yet see. For example, its Mossy Oak line is geared for the tools, tableware and accessories that outdoor and hunting enthusiasts would find attractive.
That market isn't typically served by companies like LCUT. And as the economy expands, more consumers will be interested in buying more name brand products as well as replacing aging equipment they have been nursing for a while.
Safe Stocks to Buy Today: Hooker Furniture (HOFT)
Source: Shutterstock
Hooker Furniture Corporation (NASDAQ: HOFT ) was founded in 1925 by Clyde Hooker. And after his father retired, Clyde Hooker Jr took over the furniture making firm out of Martinsville, VA.
In 2000, Clyde Jr handed the reigns to Paul Toms Jr, the grandson of the original owner. In most industries, keeping a company in the family isn't always the best way to go. But when you're legacy is making furniture, it's a different thing entirely.
Even when your company has a $435 million market cap.
7 Heartthrob Valentine's Day Stocks to Buy Today
As rates rise, housing prices will rise as inventory decreases. But banks have already started pushing home equity loans and home equity lines of credit. And upgrading furniture is always one of the more popular ways to spend.
Safe Stocks to Buy Today: Insperity Inc (NSP)
Source: Shutterstock
Insperity Inc (NYSE: NSP ) is the next wave in human resources solutions. And it has been leading this wave since 1986, when it was founded.
The idea was simple. Business owners were good at building a business. And their core competencies were usually focused on the products or services that they sold.
But as their businesses became bigger, human resources - hiring, benefits, training, bookkeeping, payroll, etc - also became bigger and more important. The problem is, HR is usually a completely different world from what most business are engaged in.
NSP saw the opportunity in outsourcing. And now it serves over 100,000 businesses with more than 2 million employees across the US.
Now, businesses looking to run lean are seeking out NSP and similar firms with regularity.
And if you need proof it's a safe choice in a choppy market, NSP stock is up almost 20% off its February 9 lows.
Safe Stocks to Buy Today: TransUnion (TRU)
Source: Simon Cunninghan via Flickr
TransUnion (NYSE: TRU ) is one of the hottest financial sectors in the market today. Now that doesn't mean it's sexy but demand is expanding, and should for a long time to come.
TRU provides consumer credit reports, risk scores and analytical services. Since the financial meltdown in 2008, credit scores have become the be all and end all of the financial services market. And TRU is one of the biggest players.
Now that the markets are becoming more dynamic and the economy is growing, more people will be looking for housing, transportation and credit cards to leverage their newfound money.
TRU gets a piece of each one of those requests. And consumers are now obsessed with their credit scores, so subscription services are up on the consumer side as well.
5 Telecom Stocks to Cushion Your Portfolio Against Market Turmoil
On February 14, TRU reported earnings that beat analysts' estimates and it's very bullish for 2018 and beyond.
Safe Stocks to Buy Today: Bright Horizons (BFAM)
Source: Shutterstock
Bright Horizons Family Solutions Inc (NASDAQ: BFAM ) is a full-service child care provider with over 1000 locations in the U.S., U.K. and Holland.
Through its size and reach it has been able to exploit important niches that local child care providers would be strained to explore. For example, BFAM set up a facility for hospital workers' children that they could come to if they are mildly sick so the parents don't have to stay home with the child and the child can be taken care of and also taught away from healthy classmates.
This kind of innovation is at the core of BFAM's strategy. And these services are already very popular in Europe, so translating them cost-effectively into the US market means more efficiencies.
BFAM stock is up nearly 40% in the past 12 months and as long as the economy continues to grow, so will its fortunes.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth , Emerging Growth, Ultimate Growth , Family Trust and Platinum Growth . His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com . Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
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The post The 10 Safest Stocks to Buy If Markets Overheat Again 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.
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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Crown Royal , Ciroc , Smirnoff , Bailey's , Ketel One , Guinness , Tanqueray , Captain Morgan , Bulleit , are just a few of the brands that are in the DEO stable. Safe Stocks to Buy Today: Electronic Arts Inc (EA) Source: Shutterstock Electronic Arts Inc (NASDAQ: EA ) is one of the biggest video game makers in the world. Its PlayStation video game division is finally differentiating itself from competitors.
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Safe Stocks to Buy Today: Electronic Arts Inc (EA) Source: Shutterstock Electronic Arts Inc (NASDAQ: EA ) is one of the biggest video game makers in the world. Its PlayStation video game division is finally differentiating itself from competitors. Safe Stocks to Buy Today: Diageo (DEO) Source: Mustafa Khayat Via Flickr Diageo plc (ADR) (NYSE: DEO ) is a spirits company that is twice as big by market cap as its closest competition.
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Safe Stocks to Buy Today: Diageo (DEO) Source: Mustafa Khayat Via Flickr Diageo plc (ADR) (NYSE: DEO ) is a spirits company that is twice as big by market cap as its closest competition. Safe Stocks to Buy Today: Electronic Arts Inc (EA) Source: Shutterstock Electronic Arts Inc (NASDAQ: EA ) is one of the biggest video game makers in the world. Its PlayStation video game division is finally differentiating itself from competitors.
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Safe Stocks to Buy Today: Electronic Arts Inc (EA) Source: Shutterstock Electronic Arts Inc (NASDAQ: EA ) is one of the biggest video game makers in the world. Its PlayStation video game division is finally differentiating itself from competitors. Safe Stocks to Buy Today: Diageo (DEO) Source: Mustafa Khayat Via Flickr Diageo plc (ADR) (NYSE: DEO ) is a spirits company that is twice as big by market cap as its closest competition.
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2018-02-15 00:00:00 UTC
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Molson Coors Brewing Co Stock Is Setting Up and Could Explode Higher
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https://www.nasdaq.com/articles/molson-coors-brewing-co-stock-setting-and-could-explode-higher-2018-02-15
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Unlike most stocks, the past 12 months have not been too kind to Molson Coors Brewing Co (NYSE: TAP ). However, after reporting third quarter earnings, TAP stock finally has some pep in its step. Shares jumped 6.3% on Wednesday, closing at $80.45. This pop comes just days after shares made new 52-week lows.
Is now the time to drink up?
It's at least worth paying attention to. The company's fiscal third quarter earnings results were in line with expectations. Revenue of $2.88 billion missed analysts' expectations by $90 million. Was it the greatest showing? Not really. But being a large beer conglomerate makes it hard to post a massive upside surprise.
The most difficult thing about buying TAP stock is its competition. Not necessarily competitive pressure on its business, but rather, with the stock. Like TAP, Anheuser Busch Inbev NV (ADR) (NYSE: BUD ) stock has been struggling as well. Both are near their annual lows and look rather unspectacular at the moment.
7 'Strong Buy' Stocks That Look Cheap Right Now
However, the same cannot be said for companies like Diageo plc (ADR) (NYSE: DEO ) and Constellation Brands, Inc. (NYSE: STZ ). These two stocks continue to churn higher and higher. The companies' higher-end beers, wines and spirits are clearly in demand over lower-price alternatives. As a result of consumer habits, investors are sticking with what's hot and ditching what's not.
Apparently, it's one of the few times a cold one doesn't sounds good!
Anyway, with brands like Molson, Coors, Keystone, Miller and Red Dog, TAP stock is very much one I'd circle back to in a recession. People are going to drink beer in good times and in bad. Only during the latter, it's not going to be the high-end ones they're after.
TAP is trying, with mid-tier brands like Blue Moon and Leinenkugel. It's not Boston Beer Company Inc (NYSE: SAM ), but it's stepping out of its comfort zone. Particularly with a few others like Spark, Henry's Soda and various ciders.
Valuing TAP Stock
With one more quarter to go, analysts expect $4.32 in earnings per share for fiscal 2017. While that's about flat vs. last year, forecasts call for 13.9% earnings growth in 2018. That goes alongside 0.5% revenue growth this year and 1.6% next year.
Shares trade at about 18.6 times 2017 earnings estimates, which isn't great given the lack of growth. But at about 16.5 times earnings for almost 14% growth in 2018 is more reasonable.
The company carries over $11 billion in debt. While this isn't the most problematic observation, it does make up a large part of its $16 billion market cap. Given the industry standards on debt-to-equity and debt-to-asset ratios, TAP stock actually finds itself mostly in the middle.
Again I circle back to my biggest issue being around stock competition. If I want a stock in the industry, STZ or DEO would be my go-to. I do like TAP more than BUD or SAM, though. But even looking outside the beer space, there's more attractive stocks. At least in my eyes.
Companies like Bank of America Corp (NYSE: BAC ), Apple Inc. (NASDAQ: AAPL ) and even a name likeCelgene Corporation (NASDAQ: CELG ) have a better combination of growth and valuation . So it's not that TAP stock is necessarily a bad investment, it's just that there are more attractive picks at the moment.
Trading Molson Coors Stock
There is one exception to all of this, and that's on the charts. As you can see, TAP stock has been trapped in a depressing downward channel over the past 18 months or so. Currently the top of the channel is near $84, about 5% above current levels. Can Molson Coors stock push through?
Click to Enlarge
Notably, the 200-day simple moving average has been trending lower with this level of resistance. If TAP stock is able to push through these levels, it's definitely a buy for me. I love these setups, as previous resistance becomes support. If it fails as support, we can cut our losses with minimal damage. If support is not violated, these types of stocks can run a long ways before tiring out.
Molson Coors is a Great Choice to Tap Into Profits
So the play? Wait for a breakout over $84 before getting long.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, Bret Kenwell did held a position in AAPL and CELG.
More From InvestorPlace
7 Heartthrob Valentine's Day Stocks to Buy Today
Time to Drink to Molson Coors Brewing Company Stock (TAP)
8 Companies That Could Disappear by 2019
Compare Brokers
The post Molson Coors Brewing Co Stock Is Setting Up and Could Explode Higher 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.
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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7 'Strong Buy' Stocks That Look Cheap Right Now However, the same cannot be said for companies like Diageo plc (ADR) (NYSE: DEO ) and Constellation Brands, Inc. (NYSE: STZ ). If I want a stock in the industry, STZ or DEO would be my go-to. Like TAP, Anheuser Busch Inbev NV (ADR) (NYSE: BUD ) stock has been struggling as well.
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7 'Strong Buy' Stocks That Look Cheap Right Now However, the same cannot be said for companies like Diageo plc (ADR) (NYSE: DEO ) and Constellation Brands, Inc. (NYSE: STZ ). If I want a stock in the industry, STZ or DEO would be my go-to. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Unlike most stocks, the past 12 months have not been too kind to Molson Coors Brewing Co (NYSE: TAP ).
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7 'Strong Buy' Stocks That Look Cheap Right Now However, the same cannot be said for companies like Diageo plc (ADR) (NYSE: DEO ) and Constellation Brands, Inc. (NYSE: STZ ). If I want a stock in the industry, STZ or DEO would be my go-to. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Unlike most stocks, the past 12 months have not been too kind to Molson Coors Brewing Co (NYSE: TAP ).
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7 'Strong Buy' Stocks That Look Cheap Right Now However, the same cannot be said for companies like Diageo plc (ADR) (NYSE: DEO ) and Constellation Brands, Inc. (NYSE: STZ ). If I want a stock in the industry, STZ or DEO would be my go-to. Shares trade at about 18.6 times 2017 earnings estimates, which isn't great given the lack of growth.
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2018-02-05 00:00:00 UTC
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The Super Bowl Is Over, But You Can Still Buy These 3 Sin Stocks
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https://www.nasdaq.com/articles/super-bowl-over-you-can-still-buy-these-3-sin-stocks-2018-02-05
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Super Bowl LII in Minneapolis turned out to be a fantastic game between the Philadelphia Eagles and the New England Patriots. And while the teams battled it out on the field in historic high-scoring fashion, people around the country gathered in living rooms and bars happily sipping their favorite adult beverages.
The Super Bowl is one of the biggest get-together events of the year, and for many, it signals the start of post-football season life. This also means that warmer weather, as well as spring and summer parties, are on the horizon. In short, while football is over for now, people around the country will still be drinking plenty of booze.
But not all beer and liquor companies are well positioned to capitalize in the current U.S. drinking market. Domestic beer sales have slowed, wine and spirits sales are up, and imports from south of the border and craft brews have become more and more prevalent.
With that said, let's take a look at three companies with strong Zacks Ranks that also stand to profit from these new booze trends.
1. Diageo plc DEO
Shares of Diageo plc slipped on Monday as part of a now two-day, market-wide sell-off. But before today's retreat, shares of this liquor giant had surged more than 27% over the last year. The maker of brands such as Johnnie Walker, J&B, Smirnoff, Cîroc, Ketel One, Don Julio, and Tanqueray has also earned multiple upward earnings estimate revisions for its current fiscal year within the last 30 days.
Diageo plc is currently a Zacks Rank #2 (Buy) and rocks an "A" grade for Growth in our Style Scores system. The multinational spirits company could be poised to expand even further amid shifting drinking habits. Investors should be happy to note that the company currently sits nearly 8% below its 52-week high, which should give its shares room to rebound without having to jump into a new range.
2. Boston Beer Company SAM
Despite Boston Beer Company's hometown Patriots losing 41-33 in the Super Bowl, the company has a stronghold in the craft beer world. In fact, the maker of Samuel Adams helped kick off the mass appeal of this beer revolution, and it continues to introduce new flavor-forward beers and other alcoholic drinks to this day.
Boston Beer also owns two hard cider powers: Twisted Tea Brewing Company and Angry Orchard Cider Company. These two brands should help the company expand its reach as the hard cider drinking trend proliferates. Lastly, Boston Beer quietly entered the even more nascent spiked sparkling water market in 2016 with its Truly Spiked & Sparkling brand. SAM is currently a Zacks Rank #1 (Strong Buy)
3. Constellation Brands, Inc. STZ
Constellation boasts beer brands such as Corona and Ballast Point. The company also owns Black Box and Kim Crawford wines as well as Casa Noble Tequila and Svedka vodka. Constellation also owns Mexican beer Modelo Especial, which is one of the fastest growing beer brands in the U.S. These brands have helped shares of this alcohol distribution powerhouse skyrocket over 44.63% in the last 52 weeks.
Looking forward, Constellation is expected to see its full-year earnings jump 26.18% year-over-year. Constellation has also experienced a great deal of upward earnings estimate revisions recently. Investors will also be happy to note that the company is expected to see its EPS figure grow at an annualized rate of 19.05% over the next three to five years. What's more, Constellation is currently a Zacks Rank #2 (Buy).
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Download it free >>
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
Constellation Brands Inc (STZ): Free Stock Analysis Report
Diageo PLC (DEO): Free Stock Analysis Report
Boston Beer Company, Inc. (The) (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.
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 Shares of Diageo plc slipped on Monday as part of a now two-day, market-wide sell-off. Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report To read this article on Zacks.com click here. And while the teams battled it out on the field in historic high-scoring fashion, people around the country gathered in living rooms and bars happily sipping their favorite adult beverages.
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Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc DEO Shares of Diageo plc slipped on Monday as part of a now two-day, market-wide sell-off. Boston Beer Company SAM Despite Boston Beer Company's hometown Patriots losing 41-33 in the Super Bowl, the company has a stronghold in the craft beer world.
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Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc DEO Shares of Diageo plc slipped on Monday as part of a now two-day, market-wide sell-off. Boston Beer Company SAM Despite Boston Beer Company's hometown Patriots losing 41-33 in the Super Bowl, the company has a stronghold in the craft beer world.
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Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc DEO Shares of Diageo plc slipped on Monday as part of a now two-day, market-wide sell-off. Boston Beer Company SAM Despite Boston Beer Company's hometown Patriots losing 41-33 in the Super Bowl, the company has a stronghold in the craft beer world.
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1d4f49fb-3c16-424d-a0d7-ed2db188a976
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727898.0
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2018-01-31 00:00:00 UTC
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Diageo Toasts Increase in Women Whiskey Drinkers
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DEO
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https://www.nasdaq.com/articles/diageo-toasts-increase-women-whiskey-drinkers-2018-01-31
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nan
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nan
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Fred Astaire and Ginger Rogers. Bonnie and Clyde. Mulder and Scully. Famous couples do have their own separate identities, but like peanut butter and jelly, they're much more memorable as pairs. Now it looks like Johnnie Walker whiskey is going to get a partner.
Global distillery Diageo (NYSE: DEO) just applied to the U.S. Patent and Trademark Office for rights to the words "Jane Walker" to be used for all alcoholic beverages except beer, meaning the Johnnie Walker Scotch brand could be getting a decidedly feminine touch.
Ladies first
Consumption of alcohol by women has been rising steadily since the 1950s, and studies suggest they may drink as much alcohol as men today, with younger women possibly drinking even more.
Whiskey, in particular, has seen an immense uptick in popularity over the past few years, across both the male and female demographic. According to the trade association Distilled Spirits Council of the U.S., bourbon, Tennessee whiskey, and rye enjoyed an 8% jump in sales in 2016 to $3.1 billion, with volumes rising 6.8% to 21.8 million cases. Cognac did even better, rising 13% for the year, and Irish whiskey jumped almost 19%.
Diageo is one of the world's largest distillers, and it derives the lion's share of its revenue from its Scotch portfolio, which represents a quarter of Diageo's $15.9 billion in annual sales. Johnnie Walker is its premier brand, but the distiller also owns Buchanan's, which is the second most popular Scotch in the U.S.; Black & White, Diageo's top seller in Brazil; and J&B, the No. 1 Scotch in Spain. It also owns Windsor, Old Parr, and Lagavulin, each of which holds a leading position in various markets around the world.
Though none has been marketed as an especially female adult beverage, with more women drinking that's likely going to change. NPR notes that two decades ago, about 15% of whiskey drinkers were women, but by 2014, their share had grown to as much as 37% of the total.
Women on a whiskey river
Ad viewers may have noticed Jim Beam started featuring actress Mila Kunis prowling around bourbon casks in its commercials recently, but before the 2016 presidential election, in anticipation of Hillary Clinton winning the race, Diageo had purportedly commissioned an ad that would have delved into gender equality and women achieving new heights.
The campaign's name? Jane Walker.
Obviously, Diageo has been eying this growing segment of the whiskey-consuming public for a long time. What's notable is the distiller's willingness to create a new identity for the spirit, something it hasn't done previously with other beverages.
For example, when flavored vodka was all the rage, Diageo's Ciroc brand focused on the flavor and not necessarily on who was drinking it, though it may very well have been that women were those experimenting most with the spirit. And the new trademark may not mean we'll see bottles with a Jane Walker label appearing on store shelves. Earlier this month, a blog devoted to drinks and music called Drampedia found a new Johnnie Walker Black label that was subtitled "The Jane Walker Edition".
The Johnnie Walker brand is maintaining its worldwide renown and experiencing growth -- Johnnie Walker's net sales rose 8% in 2017. A version of the whiskey explicitly geared toward women could take scotch in a new direction and boost sales even further.
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*Stock Advisor returns as of January 2, 2018
Rich Duprey 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.
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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Global distillery Diageo (NYSE: DEO) just applied to the U.S. Patent and Trademark Office for rights to the words "Jane Walker" to be used for all alcoholic beverages except beer, meaning the Johnnie Walker Scotch brand could be getting a decidedly feminine touch. According to the trade association Distilled Spirits Council of the U.S., bourbon, Tennessee whiskey, and rye enjoyed an 8% jump in sales in 2016 to $3.1 billion, with volumes rising 6.8% to 21.8 million cases. Johnnie Walker is its premier brand, but the distiller also owns Buchanan's, which is the second most popular Scotch in the U.S.; Black & White, Diageo's top seller in Brazil; and J&B, the No.
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Global distillery Diageo (NYSE: DEO) just applied to the U.S. Patent and Trademark Office for rights to the words "Jane Walker" to be used for all alcoholic beverages except beer, meaning the Johnnie Walker Scotch brand could be getting a decidedly feminine touch. Earlier this month, a blog devoted to drinks and music called Drampedia found a new Johnnie Walker Black label that was subtitled "The Jane Walker Edition". After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.
|
Global distillery Diageo (NYSE: DEO) just applied to the U.S. Patent and Trademark Office for rights to the words "Jane Walker" to be used for all alcoholic beverages except beer, meaning the Johnnie Walker Scotch brand could be getting a decidedly feminine touch. Johnnie Walker is its premier brand, but the distiller also owns Buchanan's, which is the second most popular Scotch in the U.S.; Black & White, Diageo's top seller in Brazil; and J&B, the No. Women on a whiskey river Ad viewers may have noticed Jim Beam started featuring actress Mila Kunis prowling around bourbon casks in its commercials recently, but before the 2016 presidential election, in anticipation of Hillary Clinton winning the race, Diageo had purportedly commissioned an ad that would have delved into gender equality and women achieving new heights.
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Global distillery Diageo (NYSE: DEO) just applied to the U.S. Patent and Trademark Office for rights to the words "Jane Walker" to be used for all alcoholic beverages except beer, meaning the Johnnie Walker Scotch brand could be getting a decidedly feminine touch. Johnnie Walker is its premier brand, but the distiller also owns Buchanan's, which is the second most popular Scotch in the U.S.; Black & White, Diageo's top seller in Brazil; and J&B, the No. Though none has been marketed as an especially female adult beverage, with more women drinking that's likely going to change.
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b3a0bda1-476a-4f94-8dd6-7566c7e2e843
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727899.0
|
2018-01-29 00:00:00 UTC
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Consumer Sector Update for 01/29/2018: WMT, MCD, DIS, CVS, KO, DPS, NBEV, PEP, DEO
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DEO
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https://www.nasdaq.com/articles/consumer-sector-update-01292018-wmt-mcd-dis-cvs-ko-dps-nbev-pep-deo-2018-01-29
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nan
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nan
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Top Consumer Shares:
WMT: -0.2%
MCD: +0.2%
DIS: -0.07%
CVS: flat
KO: -0.1%
Consumer shares were mostly lower ahead of the opening bell on Monday.
Expected movers:
- Dr Pepper Snapple Group ( DPS ): surged 30% after the company said it has agreed to merge with privately held Keurig Green Mountain
- New Age Beverages ( NBEV ) rose 5% after it said it has formed a partnership with Simple Again to bring its products to juice bars and health clubs in the US
Other news:
- Pepsico ( PEP ): SunTrust initiates coverage for the company with a hold rating and $125 price target
- Diageo ( DEO ): received an investment-rating downgrade to sector perform from outperform from RBC Capital Markets
News from overseas:
- FTSE 250-listed convenience food company Greencore Group PLC (GNC.LN) unveiled the sale of its cakes & desserts business in Hull to Bright Blue Foods Ltd.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
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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Expected movers: - Dr Pepper Snapple Group ( DPS ): surged 30% after the company said it has agreed to merge with privately held Keurig Green Mountain - New Age Beverages ( NBEV ) rose 5% after it said it has formed a partnership with Simple Again to bring its products to juice bars and health clubs in the US Other news: - Pepsico ( PEP ): SunTrust initiates coverage for the company with a hold rating and $125 price target - Diageo ( DEO ): received an investment-rating downgrade to sector perform from outperform from RBC Capital Markets News from overseas: - FTSE 250-listed convenience food company Greencore Group PLC (GNC.LN) unveiled the sale of its cakes & desserts business in Hull to Bright Blue Foods Ltd. Consumer shares were mostly lower ahead of the opening bell on Monday. Unauthorized reproduction is strictly prohibited.
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Expected movers: - Dr Pepper Snapple Group ( DPS ): surged 30% after the company said it has agreed to merge with privately held Keurig Green Mountain - New Age Beverages ( NBEV ) rose 5% after it said it has formed a partnership with Simple Again to bring its products to juice bars and health clubs in the US Other news: - Pepsico ( PEP ): SunTrust initiates coverage for the company with a hold rating and $125 price target - Diageo ( DEO ): received an investment-rating downgrade to sector perform from outperform from RBC Capital Markets News from overseas: - FTSE 250-listed convenience food company Greencore Group PLC (GNC.LN) unveiled the sale of its cakes & desserts business in Hull to Bright Blue Foods Ltd. 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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Expected movers: - Dr Pepper Snapple Group ( DPS ): surged 30% after the company said it has agreed to merge with privately held Keurig Green Mountain - New Age Beverages ( NBEV ) rose 5% after it said it has formed a partnership with Simple Again to bring its products to juice bars and health clubs in the US Other news: - Pepsico ( PEP ): SunTrust initiates coverage for the company with a hold rating and $125 price target - Diageo ( DEO ): received an investment-rating downgrade to sector perform from outperform from RBC Capital Markets News from overseas: - FTSE 250-listed convenience food company Greencore Group PLC (GNC.LN) unveiled the sale of its cakes & desserts business in Hull to Bright Blue Foods Ltd. Consumer shares were mostly lower ahead of the opening bell on Monday. 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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Expected movers: - Dr Pepper Snapple Group ( DPS ): surged 30% after the company said it has agreed to merge with privately held Keurig Green Mountain - New Age Beverages ( NBEV ) rose 5% after it said it has formed a partnership with Simple Again to bring its products to juice bars and health clubs in the US Other news: - Pepsico ( PEP ): SunTrust initiates coverage for the company with a hold rating and $125 price target - Diageo ( DEO ): received an investment-rating downgrade to sector perform from outperform from RBC Capital Markets News from overseas: - FTSE 250-listed convenience food company Greencore Group PLC (GNC.LN) unveiled the sale of its cakes & desserts business in Hull to Bright Blue Foods Ltd. Top Consumer Shares: CVS: flat
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ef51beb1-a141-447b-89e3-bc4c05e04030
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