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727900.0
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2018-01-29 00:00:00 UTC
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Diageo (DEO) 1H18 Interim Earnings & Sales Up Year Over Year
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DEO
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https://www.nasdaq.com/articles/diageo-deo-1h18-interim-earnings-sales-up-year-over-year-2018-01-29
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nan
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nan
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Diageo plcDEO recently announced interim results for the half yearly period ended Jul 31, 2017. Pre-exceptional earnings per share for the first half of fiscal 2018 grew 9.4% (in local currency) year over year. The upside was backed by increased organic operating profit and reduced finance costs.
While Diageo's stock didn't react much to the announcement, shares of this Zacks Rank #2 (Buy) company have rallied 33.2% in a year, faring even better than the industry 's 26.1% surge. Clearly, this alcohol behemoth is riding on its focus on innovations, achieving growth through buyouts and penetration in emerging markets.
1H18 Highlights
On a reported basis, net sales as well as operating profits moved up 1.7% and 6.1%, respectively, courtesy of organic growth. However, this was somewhat countered by unfavorable currency fluctuations.
Diageo PLC Price, Consensus and EPS Surprise
Diageo PLC Price, Consensus and EPS Surprise | Diageo PLC Quote
Broad-based organic sales increased 4.2%, backed by improved volumes and favorable price/mis. Also, all regions witnessed organic sales growth, driven by Diageo's strong brand portfolio and solid reach. Further, organic volumes went up 1.8%.
Gross margin expanded nearly 200 basis points during the first half, as impacts from GST and inflation were more than offset by favorable mix, greater productivity and efforts like better pricing and lowering input costs to reduce the adverse impact of GST.
Additionally, organic operating profit advanced 6.7%, thanks to benefits from the company's productivity program, partly negated by greater marketing investments. Organic margins rose 81 basis points.
Segment Details
Organic sales grew 2% in North America due to higher sales at U.S. Spirits which in turn was fueled by strength across all categories other than Vodka. Categorically, results were led by Don Julio in the Tequila category; North American whiskey; Captain Morgan in the Rum category and Baileys. Operating profit (organic) rose 3%.
In Europe, Russia and Turkey , organic sales increased 4% on greater volumes. Also, improved pricing in Turkey aided price mix, while it was partly offset by unfavorable mix from Gordon's and Baileys in Europe. Organic operating profit in the region improved 12%.
Organic sales in Africa climbed 2%, driven by strong performance in Nigeria, which was partly hampered by softness in Africa Regional Markets and South Africa. Also, price/mix remained negative due to heightened competition in South Africa, accelerated growth in Mainstream Spirits across East Africa and Nigeria. This was somewhat compensated by favorable pricing in Nigeria. In Africa, operating profit (organic) fell 3%
Organic sales in the Latin America and Caribbean region ascended 7% backed by strong growth in Mexico and PUB. Results gained from strength across primary scotch brands, which delivered higher sales in Mexico, PUB and Colombia. However, price mix remained negative. Organic operating profit jumped 10%.
In the Asia Pacific region, organic sales gained 7%. Operating profit (organic) improved 17% in the region.
Financial Status
Diageo's cash flows remained robust and in line with the year-ago period. Management raised the interim dividend (local currency) by 5%.
Outlook
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 Alcohol Stocks
The Boston Beer Company, Inc. SAM with a splendid earnings surprise history flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Brown-Forman Corporation BF.B , also boasting a Zacks Rank #1, has delivered back-to-back earnings surprises in the last two quarters.
Constellation Brands, Inc. STZ , with a spectacular earnings surprise history and long-term earnings growth rate of 19% carries a Zacks Rank #2.
Zacks Top 10 Stocks for 2018
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Brown Forman Corporation (BF.B): Free Stock Analysis 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 plcDEO recently announced interim results for the half yearly period ended Jul 31, 2017. Click to get this free report Brown Forman Corporation (BF.B): Free Stock Analysis 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. While Diageo's stock didn't react much to the announcement, shares of this Zacks Rank #2 (Buy) company have rallied 33.2% in a year, faring even better than the industry 's 26.1% surge.
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Click to get this free report Brown Forman Corporation (BF.B): Free Stock Analysis 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 plcDEO recently announced interim results for the half yearly period ended Jul 31, 2017. Diageo PLC Price, Consensus and EPS Surprise Diageo PLC Price, Consensus and EPS Surprise | Diageo PLC Quote Broad-based organic sales increased 4.2%, backed by improved volumes and favorable price/mis.
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Click to get this free report Brown Forman Corporation (BF.B): Free Stock Analysis 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 plcDEO recently announced interim results for the half yearly period ended Jul 31, 2017. Diageo PLC Price, Consensus and EPS Surprise Diageo PLC Price, Consensus and EPS Surprise | Diageo PLC Quote Broad-based organic sales increased 4.2%, backed by improved volumes and favorable price/mis.
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Diageo plcDEO recently announced interim results for the half yearly period ended Jul 31, 2017. Click to get this free report Brown Forman Corporation (BF.B): Free Stock Analysis 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. Pre-exceptional earnings per share for the first half of fiscal 2018 grew 9.4% (in local currency) year over year.
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ceda918f-c6d4-4293-a328-061ae85e4fbb
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727901.0
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2018-01-29 00:00:00 UTC
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Consumer Sector Update for 01/29/2018: DPS,NBEV,PEP,DEO,MDLZ
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DEO
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https://www.nasdaq.com/articles/consumer-sector-update-01292018-dpsnbevpepdeomdlz-2018-01-29
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nan
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nan
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Top Consumer Stocks
WMT +0.96%
MCD -0.02%
DIS -0.15%
CVS +1.94%
KO -0.81%
Consumer stocks were edging higher Monday, with shares of consumer staples companies in the S&P 500 rising less than 0.1% in afternoon trading while shares of consumer discretionary firms in the S&P 500 were climbing more than 0.4%.
Among consumer stocks moving on news:
+ Dr Pepper Snapple Group Inc ( DPS ) effervesced Monday, rising over 32% to a best-ever $126.63 a share, after the soft-drink bottler said it has agreed to a $18.7 billion merger offer from privately held Keurig Green Mountain. The proposed transaction calls for Dr. Pepper investors receiving $103.75 for each of their shares through a special dividend payment, an 8.5% premium to Friday's closing price. Keurig owner JAB Holding Company, along with its partners, will make a $9 billion equity investment in the deal and will retain a majority stake in the combined companies while Mondelez International ( MDLZ ), JAB's partner in Keurig, will hold between 13% to 14% in the firm. Dr Pepper investors will own another 13% of the company.
In other sector news:
+ New Age Beverages ( NBEV ) jumped almost 10% Monday morning, reaching a session high of $4.12 a share, after the bottled tea and energy-drink seller said it was partnering with Simple Again to bring its products to juice bars and health clubs throughout the United States.
- Pepsico ( PEP ) was falling Monday, dropping over 1% to a session low of $119.96 a share, after analysts at SunTrust began coverage for the soft-drink company with a Hold investment rating and a $125 price target.
- Diageo ( DEO ) dropped over 2% to a session low of $145.02 a share on Monday after analysts at RBC Capital Markets lowered their investment recommendation for the food conglomerate to Sector Perform from Outperform.
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 ) dropped over 2% to a session low of $145.02 a share on Monday after analysts at RBC Capital Markets lowered their investment recommendation for the food conglomerate to Sector Perform from Outperform. Among consumer stocks moving on news: + Dr Pepper Snapple Group Inc ( DPS ) effervesced Monday, rising over 32% to a best-ever $126.63 a share, after the soft-drink bottler said it has agreed to a $18.7 billion merger offer from privately held Keurig Green Mountain. In other sector news: + New Age Beverages ( NBEV ) jumped almost 10% Monday morning, reaching a session high of $4.12 a share, after the bottled tea and energy-drink seller said it was partnering with Simple Again to bring its products to juice bars and health clubs throughout the United States.
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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. - Diageo ( DEO ) dropped over 2% to a session low of $145.02 a share on Monday after analysts at RBC Capital Markets lowered their investment recommendation for the food conglomerate to Sector Perform from Outperform. Among consumer stocks moving on news: + Dr Pepper Snapple Group Inc ( DPS ) effervesced Monday, rising over 32% to a best-ever $126.63 a share, after the soft-drink bottler said it has agreed to a $18.7 billion merger offer from privately held Keurig Green Mountain.
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- Diageo ( DEO ) dropped over 2% to a session low of $145.02 a share on Monday after analysts at RBC Capital Markets lowered their investment recommendation for the food conglomerate to Sector Perform from Outperform. Consumer stocks were edging higher Monday, with shares of consumer staples companies in the S&P 500 rising less than 0.1% in afternoon trading while shares of consumer discretionary firms in the S&P 500 were climbing more than 0.4%. Among consumer stocks moving on news: + Dr Pepper Snapple Group Inc ( DPS ) effervesced Monday, rising over 32% to a best-ever $126.63 a share, after the soft-drink bottler said it has agreed to a $18.7 billion merger offer from privately held Keurig Green Mountain.
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- Diageo ( DEO ) dropped over 2% to a session low of $145.02 a share on Monday after analysts at RBC Capital Markets lowered their investment recommendation for the food conglomerate to Sector Perform from Outperform. Among consumer stocks moving on news: + Dr Pepper Snapple Group Inc ( DPS ) effervesced Monday, rising over 32% to a best-ever $126.63 a share, after the soft-drink bottler said it has agreed to a $18.7 billion merger offer from privately held Keurig Green Mountain. Dr Pepper investors will own another 13% of the company.
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b274b88a-71f4-436e-b798-79c5eada9ac0
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727902.0
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2018-01-25 00:00:00 UTC
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Tequila Stars in Diageo's Latest Earnings Report
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DEO
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https://www.nasdaq.com/articles/tequila-stars-diageos-latest-earnings-report-2018-01-25
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nan
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nan
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Diageo plc (NYSE: DEO) continued its dominance of the global spirits business in the first half of its fiscal 2018. Whiskey and vodka made up the largest percentage of revenue once again, but it was the emergence of gin and tequila as growth spirits that really pushed results higher.
Here's a look at the overall numbers and what was key to Diageo's performance to start fiscal 2018.
Diageo: The raw numbers
Data source: Diageo. H1 = first half of the (fiscal) year.
What happened with Diageo?
Diageo continues to execute on its strategy of growing organically, expanding margins, and increasing cash flow that it can return to shareholders. The high-level numbers above show some of the operational improvements, but here are the key points investors should be looking at from the first half of fiscal 2018.
The Casamigos brand acquisition was completed on Aug. 15, 2017, helping growth slightly during the period. In the long term, this could become a key brand for the company.
A negative exchange rate resulted in a 134-million pound impact on sales, or about 2.1% of sales overall.
Operating margin improved 81 basis points versus a year ago to 33.6%.
Volume rose 2% on an organic basis. The Europe and Turkey segment drove volume and sales growth of 5% and 4%, respectively, while the Latin America and Caribbean geography grew volume 8% and net sales by 3%. Asia-Pacific was the one region that struggled, with volume down 12%.
The breakdown of spirits showed some interesting trends, with scotch only growing 3% on an organic basis while gin and tequila grew 16% and 43%, respectively. Those trends are a big reason why Diageo was willing to pay $1 billion for tequila brand Casamigos. In the period, gin represented 4% of net sales and tequila represented 3% of net sales.
Free cash flow in the first half of fiscal 2018 was 1.03 billion pounds, down slightly from 1.08 billion a year ago as taxes paid increased. But the increase in operating profit means free cash flow is on the path to long-term growth.
The interim dividend was increased 5% to 24.9 pence. The company spent 760 million pounds of its 1.5 billion-pound buyback program in the first half of fiscal 2018, resulting in the repurchase of 29.5 million shares.
What management had to say
Diageo has done a great job executing on its operational strategies while adapting to the market at large. Scotch, U.S. spirits, and India continue to be three areas of focus, and as gin and tequila grow, we're seeing a shift to those products as well.
Speaking to how well tequila is doing, CEO Ivan M. Menezes said during the conference call that " ... tequila is really hot, and the big gainers in ultra-premium tequila right now in the U.S. [are] Don Julio and Casamigos. You can see our overall tequila business has grown 43%, excluding Casamigos, because it's not in organic. But if you look at underlying Casamigos performance, I'm really delighted with the momentum we are seeing."
Management put its operations performance and long-term guidance targets like this: "Our financial performance expectations for this year remain unchanged. We are confident in our ability to deliver consistent mid-single digit top line growth and 175bps of organic operating margin improvement in the three years ending 30 June 2019."
Looking forward
As the spirits business has consolidated, it's allowed Diageo to slowly raise prices and increase margins around the world. Armed with some of the best brands, Diageo is set to succeed for years to come.
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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 plc (NYSE: DEO) continued its dominance of the global spirits business in the first half of its fiscal 2018. Whiskey and vodka made up the largest percentage of revenue once again, but it was the emergence of gin and tequila as growth spirits that really pushed results higher. Diageo continues to execute on its strategy of growing organically, expanding margins, and increasing cash flow that it can return to shareholders.
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Diageo plc (NYSE: DEO) continued its dominance of the global spirits business in the first half of its fiscal 2018. Diageo continues to execute on its strategy of growing organically, expanding margins, and increasing cash flow that it can return to shareholders. In the period, gin represented 4% of net sales and tequila represented 3% of net sales.
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Diageo plc (NYSE: DEO) continued its dominance of the global spirits business in the first half of its fiscal 2018. Diageo continues to execute on its strategy of growing organically, expanding margins, and increasing cash flow that it can return to shareholders. Those trends are a big reason why Diageo was willing to pay $1 billion for tequila brand Casamigos.
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Diageo plc (NYSE: DEO) continued its dominance of the global spirits business in the first half of its fiscal 2018. The high-level numbers above show some of the operational improvements, but here are the key points investors should be looking at from the first half of fiscal 2018. Those trends are a big reason why Diageo was willing to pay $1 billion for tequila brand Casamigos.
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64f7ed2b-2a7c-4ca9-b4c6-9dbe613b23cd
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727903.0
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2018-01-24 00:00:00 UTC
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Russian Sanctions Sound Bad for Microsoft Corporation Stock
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DEO
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https://www.nasdaq.com/articles/russian-sanctions-sound-bad-microsoft-corporation-stock-2018-01-24
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Reuters published an attention-getting report on Microsoft Corporation's (NASDAQ: MSFT ) Russian-related problems. Microsoft's issue is much different from those facing content-hosting tech giants such as Facebook, Inc. (NASDAQ: FB ) and it will affect MSFT stock differently.
Microsoft hasn't gotten implicated in hacking or election-related scandals. Instead, it's having problems on the revenue-recognition side.
In November, the United States greatly stiffened its regulations against Russia . It was seen as an effort to punish the country for its continuing involvement in the Ukraine political/military crisis.
What the Sanctions Mean for MSFT Stock
Previously, the west maintained sanctions that largely impacted Russian banks and energy firms. The sanctions prohibited Russian banks from obtaining long-term loans, essentially locking them out of international credit markets.
The country had to develop alternative financing firms, such as homegrown payments processor Qiwi plc (NASDAQ: QIWI ) to replace its lost access to foreign financial capital and technology.
Similarly, the west's actions blocked Russian energy firms from participating in the global economy in the same way other state-run oil firms could.
However, until last November, the sanctions didn't have much impact on ordinary multinational companies merely selling their products in Russia. That has changed now though. The tighter sanctions now prohibit all the but the shortest of loans to Russian firms generally.
This is highly problematic. Analysts are now interpreting the sanctions to mean that product manufacturers can't extend vendor financing past the shortest of terms.
When a company sells a product to a retailer, for example, it generally doesn't expect to get paid for 30-90 days, or until the retailer in turn sells the good to an end consumer.
The manufacturer doesn't mind this risk, since retailers are usually good for the money, unless they are on the brink of bankruptcy. And by offering the product to retailers without an upfront obligation, it makes it easier to earn shelf space and brand acceptance.
Microsoft's Issue
As Reuters explains, in Russia, retailers routinely don't pay vendors for products until months after delivery. Speaking from experience, I can assure you it's the same in Latin America, among other emerging markets.
It's not uncommon for consumer products companies to not get paid up to six months after shipping goods to a retail store outside of developed countries.
So when the newly-sharpened Russian sanctions appear to ban anything but the shortest-term forms of vendor financing, it breaks a traditional capitalist product sales arrangement.
The investigative report specifically detailed that:
"One of the two Microsoft distributors, a Russian company called Merlion, said in its notification to partners that all sanctioned buyers of Microsoft licenses must pay within tight deadlines, or even pay upfront in some cases.
The second distributor, RRC, said in its notification, seen by Reuters, that "serious restrictions are being introduced" on Microsoft orders from firms subject to U.S. sanctions."
In practice, this could play out as follows. A PC vendor acquires a license for Microsoft Windows, Office, or other such software. Previously, it would have paid for the license once the PC sold at a retail store.
Now, however, they will have to pay upfront for the license, which could put a crimp on sales, since a lot of business models rely heavily on the float between getting paid and paying back the supplier. Flip it in reverse, and things get more difficult.
How Much Will It Hit Sales?
Here's where things get substantially better for MSFT stock. All the above stuff sounds quite bad on the surface. But, in fact, it's largely irrelevant to MSFT stock specifically. For one, Microsoft is just one of at least dozens of companies that will potentially be hit by these sanctions.
What makes an Apple Inc. (NASDAQ: AAPL ) phone or computer any less immune to these rules? Many sectors, including liquor and luxury goods, to name just two, should be vulnerable to sanctions due to vendor financing as well.
To put it another way, this is a Russia problem, not a MSFT stock problem. Diageo plc (ADR) (NYSE: DEO ), which sells a lot of spirits in Russia, will probably see a meaningful sales hit for example. If you own an American company with substantial Russian sales, consider Russia as a risk factor. This runs far past just MSFT stock.
On the plus side, Russia isn't a particularly large market. It has just 144 million people, just 2% of the world's population. And, due to its low birth rate, Russia has an even smaller part of the world's youth population. In other words, this isn't a key Microsoft market.
Adding to that, Russia is known for its hackers. Many of the world's pirating sites have ties to Russia. I don't have any hard data, but I'd be quite surprised if Russia doesn't have an unusually high amount of unlicensed Microsoft software in use.
Furthermore, the Russian Ruble crated from 30 to the dollar in 2013 to almost 60 to the dollar today. That sort of massive devaluation greatly cut the amount of profits Microsoft was earning on its Russian sales.
MSFT Stock Verdict
MSFT stock powered higher on Monday despite the Russia story. In fact, it rallied almost 2% to hit new all-time highs above $90/share. As I wrote last summer: "A move toward $100 could well be in the cards."
The key battle continues to be in the cloud, not in Russia. And so far, Microsoft is winning. MSFT stock is up from $75 to $91 since that previous article.
As for whether it hits $100 as soon as its next earnings report, that will depend on how much the company gains from the tax bill, among other factors. Russia has caused significant headaches for numerous tech firms. But any problems won't have a great affect on MSFT stock.
At the time of this writing, the author owned DEO stock and QIWI stock. He held no positions in any other of the aforementioned securities. You can reach him on Twitter at @irbezek.
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The post Russian Sanctions Sound Bad for Microsoft Corporation 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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Diageo plc (ADR) (NYSE: DEO ), which sells a lot of spirits in Russia, will probably see a meaningful sales hit for example. At the time of this writing, the author owned DEO stock and QIWI stock. Analysts are now interpreting the sanctions to mean that product manufacturers can't extend vendor financing past the shortest of terms.
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Diageo plc (ADR) (NYSE: DEO ), which sells a lot of spirits in Russia, will probably see a meaningful sales hit for example. At the time of this writing, the author owned DEO stock and QIWI stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Reuters published an attention-getting report on Microsoft Corporation's (NASDAQ: MSFT ) Russian-related problems.
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Diageo plc (ADR) (NYSE: DEO ), which sells a lot of spirits in Russia, will probably see a meaningful sales hit for example. At the time of this writing, the author owned DEO stock and QIWI stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Reuters published an attention-getting report on Microsoft Corporation's (NASDAQ: MSFT ) Russian-related problems.
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Diageo plc (ADR) (NYSE: DEO ), which sells a lot of spirits in Russia, will probably see a meaningful sales hit for example. At the time of this writing, the author owned DEO stock and QIWI stock. Here's where things get substantially better for MSFT stock.
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04605ef6-4b0a-49db-a528-b4883c0d57cd
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727904.0
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2018-01-24 00:00:00 UTC
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Interest Builds Up In The Premium Tequila Market
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DEO
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https://www.nasdaq.com/articles/interest-builds-premium-tequila-market-2018-01-24
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nan
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nan
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Tequila is no longer an alcohol intended to be hidden in cocktails, and is gaining popularity as a drink to be sipped. This gathering momentum has been evident in the tremendous rise in the sales of tequila, and in particular of the super-premium varieties. The sales of this alcoholic beverage in North America have been growing at a faster rate than the overall drinks market, as the premium brands help to improve the image of tequila. The increasing interest is also reflected in the growing M&A activity in this industry. Recently, Bacardi agreed to purchase Patron Spirits , maker of high-end tequila, valuing the latter at $5.1 billion. This news even sent shares of the Jose Cuervo-maker, Becle SAB, to a near-record high. The deal also follows the Pernod Ricard buying out Avion Tequila , and Diageo ( DEO ) acquiring Casamigos tequila .
Growth Of The Tequila Market
Among a number of reasons, the chief one in the increasing interest in the business is the tremendous growth being witnessed in the super-premium tequila industry in the US, where Patron, Avion, and Casamigos primarily generate their sales. Americans can't seem to get enough of Mexico's native spirit. Since 2012, tequila volumes have grown by 121%, at an average rate of 5.8%. In 2016 alone, 15.9 million 9-liter cases were sold. What is even more impressive is that while the volumes of value and premium tequila grew by 93% and 72% during the aforementioned time frame, those of high-end premium and super-premium shot up by 292% and 706%, respectively, according to the Distilled Spirits Council (DISCUS).
DISCUS defines premium tequila as one which costs between $90 and $160 per case (a case is nine liters), high-end premium ranges from $160 to $240, while super premium is anything above $240. Hence, the per bottle price would be less than $10 for value tequila, between $10 and $17.78 for premium, between $17.78 and $26.67 for high-end premium, and over $26.67 for super premium. The presence of Patron, Avion, and Casamigos in this lucrative super-premium market makes them poised to carry on their enormous growth.
Diageo has also had considerable success following the purchase of another super premium brand Don Julio. In FY 2017 (year ended June 2017), the brand reported a net sales improvement of 43%, with organic volume growth of 25%, and organic sales growth of 25%. Tequila represents just 2% of Diageo's sales. However, its organic sales growth of 26% in the aforementioned period, driven by double-digit growth in the US and Mexico, far outstripped the numbers witnessed in its other categories.
See Our Complete Analysis For Diageo Here
Have more questions on Diageo? See the links below:
Weakness Of The Pound Helps Diageo Beat Estimates
Why Are We Bullish On Diageo?
Why Is India Considered A Key Growth Market For Diageo?
Diageo Takes Inspiration From Japan To Revive South Korea's Whiskey Market
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Diageo .
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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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The deal also follows the Pernod Ricard buying out Avion Tequila , and Diageo ( DEO ) acquiring Casamigos tequila . The sales of this alcoholic beverage in North America have been growing at a faster rate than the overall drinks market, as the premium brands help to improve the image of tequila. The presence of Patron, Avion, and Casamigos in this lucrative super-premium market makes them poised to carry on their enormous growth.
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The deal also follows the Pernod Ricard buying out Avion Tequila , and Diageo ( DEO ) acquiring Casamigos tequila . Recently, Bacardi agreed to purchase Patron Spirits , maker of high-end tequila, valuing the latter at $5.1 billion. In FY 2017 (year ended June 2017), the brand reported a net sales improvement of 43%, with organic volume growth of 25%, and organic sales growth of 25%.
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The deal also follows the Pernod Ricard buying out Avion Tequila , and Diageo ( DEO ) acquiring Casamigos tequila . Growth Of The Tequila Market Among a number of reasons, the chief one in the increasing interest in the business is the tremendous growth being witnessed in the super-premium tequila industry in the US, where Patron, Avion, and Casamigos primarily generate their sales. DISCUS defines premium tequila as one which costs between $90 and $160 per case (a case is nine liters), high-end premium ranges from $160 to $240, while super premium is anything above $240.
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The deal also follows the Pernod Ricard buying out Avion Tequila , and Diageo ( DEO ) acquiring Casamigos tequila . The sales of this alcoholic beverage in North America have been growing at a faster rate than the overall drinks market, as the premium brands help to improve the image of tequila. Growth Of The Tequila Market Among a number of reasons, the chief one in the increasing interest in the business is the tremendous growth being witnessed in the super-premium tequila industry in the US, where Patron, Avion, and Casamigos primarily generate their sales.
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55435e40-72cd-4988-b41a-67a605e48db6
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727905.0
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2018-01-23 00:00:00 UTC
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Sales Growth Expected To Slow Down In The First Half Of Its Financial Year For Diageo
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DEO
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https://www.nasdaq.com/articles/sales-growth-expected-slow-down-first-half-its-financial-year-diageo-2018-01-23
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nan
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nan
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Diageo ( DEO ) is set to report its first half of FY 2018 earnings on January 25, wherein it is expected to carry on its growth, albeit at a slower rate than that reported by the company recently. While whiskey sales are expected to continue to remain strong, certain factors may slow down the sales in India and China, two key markets for the company. Moreover, the sales growth coupled with the productivity initiatives undertaken by the company are expected to result in operating margin expansion. The US, its biggest market, is set to extend the momentum it has built recently, and Diageo is predicted to report another strong half in the region. Below, we'll highlight the factors that are expected to have an impact on the company's results.
We have a $158 price estimate for Diageo , which is higher than the current market price.
1. Setbacks In India
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, a Supreme Court ruling that prohibited the sale of alcohol within 500 meters of a highway is expected to have a negative impact on the company's sales. Moreover, the Goods and Service Tax ( GST ) implemented in the country, which went live in July 2017, should have an impact on the margins in the future, as a result of higher tax rates on packaging material, molasses, and services, partially offset by reduced input costs.
2. Timing Of Chinese New Year
The Chinese New Year falls on February 16 this year, as compared to January 28 in 2017. This later timing of this festival, which is a driver for increased spirit sales, will have a positive impact in the second half of Diageo's financial year, rather than its first half.
3. Impressive Performance Of Scotch
2017 was a good year for Scotch, with exports of premium, craft Scottish product returning to growth, and " Single Malt exports breaking £1 billion for the first time ." As Diageo is one of the biggest players in this field, it should benefit immensely from the broad-based growth reported in this industry.
4. Continued Momentum In North America
Organic net sales of US Spirits grew by 3.4% in FY 2017, driven by volume growth. However, they were held back by the performance of super premium vodka. Excluding this, the sales growth was 6.1%. The company has taken a number of actions to drive the sales growth, such as increasing the marketing spend, improving the digital content, leveraging partnerships with Drizly, Uber, and Tasty, launching innovation variants of its brands, drive efficiencies to cut down costs, etc., which should continue to benefit the company in the region.
5. Cost Savings And Productivity Initiatives
Organic net sales growth, driven by volume improvements and a strong price mix, helped to increase the operating margins for Diageo in FY 2017. These factors can again be expected to drive margin expansion, along with the cost savings and productivity initiatives implemented by the company. Given the impressive performance of the company in FY 2017, the management increased the productivity savings goal to £700 million from £500 million estimated earlier, two-thirds of which will be reinvested in the business. While the company continues to expect mid-single-digit top line growth, it is raising the margin improvement guidance provided earlier to 175 bps for the three years ending FY 2019 (ending June 2019).
See Our Complete Analysis For Diageo Here
Have more questions on Diageo? See the links below:
Weakness Of The Pound Helps Diageo Beat Estimates
Why Are We Bullish On Diageo?
Why Is India Considered A Key Growth Market For Diageo?
Diageo Takes Inspiration From Japan To Revive South Korea's Whiskey Market
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Diageo .
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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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Diageo ( DEO ) is set to report its first half of FY 2018 earnings on January 25, wherein it is expected to carry on its growth, albeit at a slower rate than that reported by the company recently. The US, its biggest market, is set to extend the momentum it has built recently, and Diageo is predicted to report another strong half in the region. Cost Savings And Productivity Initiatives Organic net sales growth, driven by volume improvements and a strong price mix, helped to increase the operating margins for Diageo in FY 2017.
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Diageo ( DEO ) is set to report its first half of FY 2018 earnings on January 25, wherein it is expected to carry on its growth, albeit at a slower rate than that reported by the company recently. Cost Savings And Productivity Initiatives Organic net sales growth, driven by volume improvements and a strong price mix, helped to increase the operating margins for Diageo in FY 2017. Given the impressive performance of the company in FY 2017, the management increased the productivity savings goal to £700 million from £500 million estimated earlier, two-thirds of which will be reinvested in the business.
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Diageo ( DEO ) is set to report its first half of FY 2018 earnings on January 25, wherein it is expected to carry on its growth, albeit at a slower rate than that reported by the company recently. 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. The company has taken a number of actions to drive the sales growth, such as increasing the marketing spend, improving the digital content, leveraging partnerships with Drizly, Uber, and Tasty, launching innovation variants of its brands, drive efficiencies to cut down costs, etc., which should continue to benefit the company in the region.
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Diageo ( DEO ) is set to report its first half of FY 2018 earnings on January 25, wherein it is expected to carry on its growth, albeit at a slower rate than that reported by the company recently. While whiskey sales are expected to continue to remain strong, certain factors may slow down the sales in India and China, two key markets for the company. Cost Savings And Productivity Initiatives Organic net sales growth, driven by volume improvements and a strong price mix, helped to increase the operating margins for Diageo in FY 2017.
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d17c6f0e-915e-4f54-8098-36847d8a3f0f
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727906.0
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2018-01-16 00:00:00 UTC
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Why Diageo Stock Soared 40% in 2017
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DEO
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https://www.nasdaq.com/articles/why-diageo-stock-soared-40-2017-2018-01-16
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nan
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nan
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What happened
Alcoholic beverage giant Diageo plc (NYSE: DEO) outperformed the market last year, as shares rose 40% compared to the 19% increase in the S&P 500 , according to data provided by S&P Global Market Intelligence .
^SPX data by YCharts .
The rally still left many long-term shareholders trailing the market, as the stock has gained just 25% since early 2013 while the S&P 500 rose by over 85%.
So what
Diageo closed out a strong fiscal 2017 in late July that included 15% higher revenue and a 19% spike in net income. Organic sales growth was a solid 4% for the year thanks to rising global demand across its key spirit franchises including Johnnie Walker, Captain Morgan, Baileys, and Tanqueray.
These volume gains coincided with improving profitability, too, as operating profit rose by 1.6 percentage points to 25.3% of sales.
Now what
Diageo is hoping to return to growth in its vodka business in fiscal 2018 following a disappointing outing for the Smirnoff brand. The scotch category makes up the biggest portion of its sales base, though, and so continued gains in the Jonnie Walker franchise will be critical in keeping revenue marching higher.
Meanwhile, management is aiming for more profitability gains as theglobal marketfor premium spirits continues to strengthen. Its recent acquisition, the $1 billion purchase of tequila brand Casamigos, represents its latest move toward expanding deeper into that attractive ultra-premium spirits segment that has the potential to send margins higher over time.
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 tripled 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 January 2, 2018
Demitrios Kalogeropoulos 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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What happened Alcoholic beverage giant Diageo plc (NYSE: DEO) outperformed the market last year, as shares rose 40% compared to the 19% increase in the S&P 500 , according to data provided by S&P Global Market Intelligence . Organic sales growth was a solid 4% for the year thanks to rising global demand across its key spirit franchises including Johnnie Walker, Captain Morgan, Baileys, and Tanqueray. The scotch category makes up the biggest portion of its sales base, though, and so continued gains in the Jonnie Walker franchise will be critical in keeping revenue marching higher.
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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. What happened Alcoholic beverage giant Diageo plc (NYSE: DEO) outperformed the market last year, as shares rose 40% compared to the 19% increase in the S&P 500 , according to data provided by S&P Global Market Intelligence . Organic sales growth was a solid 4% for the year thanks to rising global demand across its key spirit franchises including Johnnie Walker, Captain Morgan, Baileys, and Tanqueray.
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What happened Alcoholic beverage giant Diageo plc (NYSE: DEO) outperformed the market last year, as shares rose 40% compared to the 19% increase in the S&P 500 , according to data provided by S&P Global Market Intelligence . 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 tripled the market.
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What happened Alcoholic beverage giant Diageo plc (NYSE: DEO) outperformed the market last year, as shares rose 40% compared to the 19% increase in the S&P 500 , according to data provided by S&P Global Market Intelligence . 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 tripled the market.
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132cf1ca-5215-443b-9c50-57cdf86e5f57
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727907.0
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2018-01-12 00:00:00 UTC
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Think Snap's 2017 Was Bad? Watch What 2018 Brings
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DEO
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https://www.nasdaq.com/articles/think-snaps-2017-was-bad-watch-what-2018-brings-2018-01-12
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nan
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nan
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The new year is a little over a week old and already Snap (NYSE: SNAP) is having a rough go of it. So if you thought 2017 was bad for the vanishing message app -- er, camera company -- then wait till you see what 2018 holds.
From an IPO that went from hero to goat, to declining daily-user rates as Facebook (NASDAQ: FB) and its Instagram and WhatsApp platforms borrowed heavily from Snap's features (essentially doing Snap better than Snap), the social media channel had a troubled 2017.
Unfortunately, it looks as if a lot of the same headwinds that buffeted Snap last year will continue into 2018, and let's just say Snap's New Year's Eve bash was a microcosm of all that was wrong with the business -- and a prelude.
Please support our competition
Snap wanted to welcome in 2018 in a special way for its employees and their guests and wanted to keep the affair private, so it blocked everyone from using Snapchat at the party. Guests were advised to leave their phones at home and to not take any photos. And just to make sure no one violated the policy, it blocked all snaps to the site emanating from the venue.
For a company built on being a social media platform that is all about taking photos and sharing them, it was a completely tone-deaf move. So the guests did the next best thing: They posted their photos on Instagram. If you want to prove the utility of the competition over your own service, there could hardly have been a better way to do it.
Not adding value
Virtually all of Snap's revenue comes from advertising, and while it's up 25% year to date from the year-ago period, it was reported Snap was discounting its rates to lure advertisers. While that's not a particular problem itself, though it does give off a whiff of desperation, it was further revealed that the advertisers were questioning the value of appearing on the site because ads received less than three seconds of view time on the app. Snap may have difficulty holding on to advertisers if they feel their spots aren't being watched, but like everyone who's viewed a YouTube video with advertising, your finger hovers over the ad so you can click the skip button.
Snap is facing a similar problem, which is likely why it's considering making users sit through at least three seconds of an ad before being able to skip past it. It's not unheard of, as just noted with YouTube, which can make you endure five seconds of an ad, though it at least shares revenue with the content providers for allowing the ads to appear with their videos. Facebook, which autoplays its ads as you scroll past them, has less than two seconds of view time. Forcing users to watch more of an ad that they've already indicated they don't want to watch is hardly going to endear the platform to users any further.
Inappropriate content
And Snap may face something of a revolt among its advertisers similar to what Google experienced with YouTube and the content the ads were appearing next to. In that imbroglio, advertisers objected to their ads appearing next to content purportedly objectionable and threatened to yank their ads from the service. Google responded in a rather ham-fisted way, yanking the ability of certain content creators from monetizing their videos even though the content is arguably benign.
Snap just lost the account of alcoholic beverage distributor Diageo (NYSE: DEO) , the maker of Johnnie Walker whisky, Ciroc vodka, and Captain Morgan's spiced rum, after the U.K. Advertising Standards Authority (ASA) ruled that a sponsored lens Diageo promoted to make users look like Captain Morgan could be seen and used by those younger than 18.
Because it added a beard and a pirate's hat to a user's image, the ASA said Diageo broke the rules, and Diageo responded by pulling all of its advertising from Snap globally since, as the ASA said, "the adequacy of self-reported age as the sole means of targeting alcohol advertising on Snapchat" is questionable.
Better value elsewhere
And now comes word that analysts at Cowen & Co. found advertisers think Facebook and Instagram are a better opportunity for their ads to be seen than Snap is, which came in dead last in the survey -- right there with Pinterest. The analysts forecast a 30% drop in Snap's stock in 2018.
Although not included in the survey, Amazon.com (NASDAQ: AMZN) is also muscling its way into the digital ad space. As a company that generated 44% of all e-commerce sales in 2017 -- and 4% of all retail sales, period -- it offers advertisers a massive venue for reaching an audience ready, willing, and able to spend money.
The public markets are not always smooth sailing to riches, and the apparent promise of Snap's IPO has given way to a much more stark reality: Although millions of users still love the platform, there are much better social media sites that are still experiencing rapid growth, and investors may want to snap them up instead.
10 stocks we like better than Snap 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 tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Snap 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 January 2, 2018
Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Facebook. 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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Snap just lost the account of alcoholic beverage distributor Diageo (NYSE: DEO) , the maker of Johnnie Walker whisky, Ciroc vodka, and Captain Morgan's spiced rum, after the U.K. Advertising Standards Authority (ASA) ruled that a sponsored lens Diageo promoted to make users look like Captain Morgan could be seen and used by those younger than 18. Snap may have difficulty holding on to advertisers if they feel their spots aren't being watched, but like everyone who's viewed a YouTube video with advertising, your finger hovers over the ad so you can click the skip button. It's not unheard of, as just noted with YouTube, which can make you endure five seconds of an ad, though it at least shares revenue with the content providers for allowing the ads to appear with their videos.
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Snap may have difficulty holding on to advertisers if they feel their spots aren't being watched, but like everyone who's viewed a YouTube video with advertising, your finger hovers over the ad so you can click the skip button. It's not unheard of, as just noted with YouTube, which can make you endure five seconds of an ad, though it at least shares revenue with the content providers for allowing the ads to appear with their videos. Google responded in a rather ham-fisted way, yanking the ability of certain content creators from monetizing their videos even though the content is arguably benign.
|
Snap may have difficulty holding on to advertisers if they feel their spots aren't being watched, but like everyone who's viewed a YouTube video with advertising, your finger hovers over the ad so you can click the skip button. It's not unheard of, as just noted with YouTube, which can make you endure five seconds of an ad, though it at least shares revenue with the content providers for allowing the ads to appear with their videos. Google responded in a rather ham-fisted way, yanking the ability of certain content creators from monetizing their videos even though the content is arguably benign.
|
Snap may have difficulty holding on to advertisers if they feel their spots aren't being watched, but like everyone who's viewed a YouTube video with advertising, your finger hovers over the ad so you can click the skip button. It's not unheard of, as just noted with YouTube, which can make you endure five seconds of an ad, though it at least shares revenue with the content providers for allowing the ads to appear with their videos. Google responded in a rather ham-fisted way, yanking the ability of certain content creators from monetizing their videos even though the content is arguably benign.
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f1e1c9e3-502d-4886-8054-53bc53ebc518
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727908.0
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2018-01-05 00:00:00 UTC
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Constellation Brands (STZ) Q3 Earnings Beat, Ups FY18 View
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DEO
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https://www.nasdaq.com/articles/constellation-brands-stz-q3-earnings-beat-ups-fy18-view-2018-01-05
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nan
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nan
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Constellation Brands Inc.STZ delivered robust third-quarter fiscal 2018 results, wherein both the top and bottom line topped estimates and improved year over year. Notably, this marked the 13th consecutive quarter of earnings beat for the company. Further, to inspire investors' confidence management raised earnings guidance for fiscal 2018.
However, shares of Constellation Brands declined nearly 2% in the pre-market trading session primarily due to lower-than-expected sales performance. Overall, this Zacks Rank #2 (Buy) stock surged 51.1% in the past year, outperforming the industry 's 23.4% growth.
During the quarter, Constellation Brands benefited from efforts to drive consumer demand for its robust brand portfolio. Further, results were driven by contributions from acquisitions along with continued strength in the company's beer business in particular.
Q3 Highlights
The company's adjusted earnings for third-quarter fiscal 2018 rose 2% year over year to $2.00 per share, surpassing the Zacks Consensus Estimate of $1.87. Reported earnings came in at $2.44 per share, up 23% year over year.
Constellation Brands Inc Price, Consensus and EPS Surprise
Constellation Brands Inc Price, Consensus and EPS Surprise | Constellation Brands Inc Quote
Net sales dipped 0.6% to $1,799.1 million and lagged the Zacks Consensus Estimate of $1,863 million. However, organic sales grew 5%.
Sales at the company's beer business improved 7.8%, driven by 5.9% rise in shipment volumes and depletions growth of 9.1%. The beer business also gained from strong portfolio performance and share gains for the Modelo brand family, with depletions growth of 17%. Further, beer sales benefited from market share gains in United States during the Labor Day and Thanksgiving holidays. During the quarter, the U.S. shipment volume lagged depletion volumes, mainly due to the timing.
Wine and spirits' sales fell 10.3%, due to lower shipment volumes and 2.5% decline in depletions. Organic sales for the segment rose 0.3%. Notably, the company's recently acquired wine brands - The Prisoner, Meiomi, and Charles Smith wine brands, reported superb depletions growth of 21%, 14% and 89%, respectively. Moreover, the High West Whiskey portfolio delivered depletions growth of 28%.
Cost and Margin Performance
Adjusted gross profit for the quarter improved 3% year over year to $911.3 million. Adjusted gross profit margin expanded 190 basis points (bps) to 50.7%.
Constellation Brands' comparable operating income grew nearly 3% to $550.1 million with the comparable operating margin expanding 120 bps to 30.6%. This growth was backed by operating income improvement at the beer segment, offset by operating income decline at the wine and spirits business. The beer segment gained from solid operating performance and favorable pricing. Meanwhile, operating income at the wine and spirits business was hurt by increased spending on marketing initiatives and higher cost of goods sold.
Financial Position
Constellation Brands ended the quarter with cash and cash equivalents of $154.5 million. As of Nov 30, 2017, the company had $8,114.2 million in long-term debt (excluding current maturities) and total shareholders' equity was $8,009.1 million.
In first-half fiscal 2018, Constellation Brands generated $1,468.4 million in cash from operations and free cash flow of $762.8 million.
The company's solid cash flows and financials provide it with the flexibility to pay dividends. Incidentally, on Jan 4, 2018, the company announced quarterly dividend of 52 cents per share for Class A and 47 cents for Class B shares. This dividend is payable on Feb 23, to shareholders on record as of Feb 9.
Further, it repurchased 1.1 million shares for $225 million in the quarter. Additionally, the company authorized a new multi-year $3 billion share repurchase program. It has $308 million remaining under its existing buyback plan.
Fiscal 2018 Outlook
Management remains encouraged with superb results, which was marked by significant market share gains, margin expansion, strong free cash flow and solid execution. This along with the strength in the beer business led the company to raise earnings outlook for fiscal 2018. Further, management raised fiscal 2018 operating income target for the beer segment, while retaining the sales forecast. For the wine and spirits business, it now anticipates results to be at the lower end of the sales and operating income guidance ranges.
The company now envisions adjusted earnings guidance in a range of $8.40-$8.50 per share, compared with previous guidance range of $8.25-$8.40. On a reported basis, EPS for fiscal 2018 is anticipated in the range of $8.50-$8.60, up from $7.90-$8.05 projected earlier.
It expects net sales for the beer segment to grow 9-11%. Operating income at this segment is envisioned to increase in a band of 18-19%, compared with the prior guidance of 17-19%.
Sales at the wine and spirits' segment are still projected to decline 4-6%, while the operating income is expected to remain flat. These projections include the impact from the sale of its Canadian wine business, and benefits from the High West, Charles Smith and Prisoner buyouts. Excluding the effects of these, net sales for the wine and spirits business are expected to increase in the range of the 4-6%, while operating income is anticipated to improve 5-7% in fiscal 2018. Further, the company now expects results for the wine spirits business to be at the lower end of the above guidance ranges.
Certain other factors were taken into consideration in providing the earnings guidance. These include an interest expense expectation of $330-$340 million, an approximate tax rate of 20% and weighted average diluted shares outstanding of approximately 201 million.
The company anticipates capital expenditure for fiscal 2018 in the range of $1.175-$1.275 billion with roughly $1.0 billion estimated for expansion of Mexico beer operations.
The company's free cash flow expectation for fiscal 2018 lies in the range of $725-$825 million. Operating cash flow is projected in the range of $1.9-$2.1 billion.
Looking for Some More Promising Stocks? Check these
Some other top-ranked stocks in the same industry include Brown-Forman Corp. BF.B , Diageo Plc DEO and Molson Coors Brewing Company TAP . While Brown-Forman sports a Zacks Rank #1 (Strong Buy), Diageo and Molson Coors carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Brown-Forman has improved 24.9% in the last three months. Moreover, the company has delivered an average positive earnings surprise of nearly 7% in the trailing four quarters while estimates for the current fiscal have improved in the last 30 days.
Diageo has Growth Score of B. Additionally, the stock has advanced 8.9% in the last three months.
Molson Coors' estimates for the current fiscal have improved in the last 30 days. Further, the stock has a VGM Score of B.
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Brown Forman Corporation (BF.B): Free Stock Analysis Report
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Diageo PLC (DEO): Free Stock Analysis Report
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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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Check these Some other top-ranked stocks in the same industry include Brown-Forman Corp. BF.B , Diageo Plc DEO and Molson Coors Brewing Company TAP . Click to get this free report Brown Forman Corporation (BF.B): Free Stock Analysis 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 To read this article on Zacks.com click here. Fiscal 2018 Outlook Management remains encouraged with superb results, which was marked by significant market share gains, margin expansion, strong free cash flow and solid execution.
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Click to get this free report Brown Forman Corporation (BF.B): Free Stock Analysis 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 To read this article on Zacks.com click here. Check these Some other top-ranked stocks in the same industry include Brown-Forman Corp. BF.B , Diageo Plc DEO and Molson Coors Brewing Company TAP . Constellation Brands Inc Price, Consensus and EPS Surprise Constellation Brands Inc Price, Consensus and EPS Surprise | Constellation Brands Inc Quote Net sales dipped 0.6% to $1,799.1 million and lagged the Zacks Consensus Estimate of $1,863 million.
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Click to get this free report Brown Forman Corporation (BF.B): Free Stock Analysis 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 To read this article on Zacks.com click here. Check these Some other top-ranked stocks in the same industry include Brown-Forman Corp. BF.B , Diageo Plc DEO and Molson Coors Brewing Company TAP . Constellation Brands Inc Price, Consensus and EPS Surprise Constellation Brands Inc Price, Consensus and EPS Surprise | Constellation Brands Inc Quote Net sales dipped 0.6% to $1,799.1 million and lagged the Zacks Consensus Estimate of $1,863 million.
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Check these Some other top-ranked stocks in the same industry include Brown-Forman Corp. BF.B , Diageo Plc DEO and Molson Coors Brewing Company TAP . Click to get this free report Brown Forman Corporation (BF.B): Free Stock Analysis 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 To read this article on Zacks.com click here. Further, it repurchased 1.1 million shares for $225 million in the quarter.
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a896b0a6-5bf0-4fde-8049-38f5a3703ca7
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727909.0
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2018-01-05 00:00:00 UTC
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Diageo Cheers Rising Spirits Demand: More Growth in Store?
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DEO
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https://www.nasdaq.com/articles/diageo-cheers-rising-spirits-demand%3A-more-growth-in-store-2018-01-05
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Diageo plcDEO , one of the prominent players in the U.S. alcohol industry, seems to be cheering on favorable market trends. Diageo, like most companies in the alcohol space, is benefiting from steadily surging demand, a stable U.S. economy and constant innovations to suit the changing tastes of consumers.
Driven by such strong fundamentals, Diageo has emerged into a preferred pick for investors. Evidently, shares of this Zacks Rank #2 (Buy) company surged 35.5% in a year, compared with the industry 's rally of 22.8%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Further, we expect this alcohol giant to continue on its growth path, backed by strategies to augment offerings and expand business reach.
Acquisitions Aid Growth in the Spirits Category
The spirits segment, amongst other alcohol categories, is gaining much 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. In June 2017, the company announced the acquisition of the fastest-growing premium tequila brand, Casamigos, in a deal worth $1 billion. This buyout is likely to strengthen Diageo's market share in the tequila category along with the existing Don Julio brand. Also, the company will capitalize on its presence in the high-growth international markets. Other noteworthy acquisitions in this segment include United Spirits Limited, De Leon Comb Wine & Spirits, Shui Jing Fang and Halico.
The booming spirit segment trend has also been aiding other alcohol manufactures like Brown-Forman BF.B and Constellation Brands STZ . Further, companies like Boston Beer Company SAM have been taking advantage of the growing demand, by adding products to their portfolio.
Focus on Emerging Markets and High-Margin Brands
Like most multinationals, Diageo has been focusing on expanding in the emerging markets. It is the leading international spirits company in markets of Africa, Latin America and Asia. Moreover, the company has been successful in the emerging regions by catering to local tastes. Products like Johnnie Walker and Blue Label have been customized according to the local palate in China, India, Thailand, Vietnam, Brazil and Mexico.
Further, Diageo emphasizes on high-margin products as they have been depicting strong growth globally. During first-half fiscal 2017, the company's premium brands delivered growth of approximately 6% while the super deluxe brands rose 5%. In accordance with this strategy, management resorted to disposing less productive brands and non-core assets.
Bottom Line
Diageo has been witnessing unfavorable trends in the beer category. Nevertheless, robust growth in the spirits segment is expected to more than offset dismal beer sales in the forthcoming periods. Also, the company's consistent efforts to progress in the alcohol industry by adapting with evolving trends look promising.
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.
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Brown Forman Corporation (BF.B): Free Stock Analysis 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 plcDEO , one of the prominent players in the U.S. alcohol industry, seems to be cheering on favorable market trends. Click to get this free report Brown Forman Corporation (BF.B): Free Stock Analysis 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, like most companies in the alcohol space, is benefiting from steadily surging demand, a stable U.S. economy and constant innovations to suit the changing tastes of consumers.
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Click to get this free report Brown Forman Corporation (BF.B): Free Stock Analysis 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 plcDEO , one of the prominent players in the U.S. alcohol industry, seems to be cheering on favorable market trends. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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Click to get this free report Brown Forman Corporation (BF.B): Free Stock Analysis 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 plcDEO , one of the prominent players in the U.S. alcohol industry, seems to be cheering on favorable market trends. Acquisitions Aid Growth in the Spirits Category The spirits segment, amongst other alcohol categories, is gaining much traction as consumers are inclining toward flavored whisky, premium tequilas and other spirits.
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Diageo plcDEO , one of the prominent players in the U.S. alcohol industry, seems to be cheering on favorable market trends. Click to get this free report Brown Forman Corporation (BF.B): Free Stock Analysis 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. Acquisitions Aid Growth in the Spirits Category The spirits segment, amongst other alcohol categories, is gaining much traction as consumers are inclining toward flavored whisky, premium tequilas and other spirits.
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2017-12-28 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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https://www.nasdaq.com/articles/10-retirement-stocks-buy-and-hold-rest-your-life-2017-12-28
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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.
Source: Shutterstock
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 Company (NYSE: GM ) was a classic "widows and orphans" stock … until last decade, when GM wound up going bankrupt. United States Steel Corporation (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 Company (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.
7 Dividend-Growing REITs That Cost Next to Nothing
Here are 10 such retirement stocks that you can hold on to in perpetuity.
10 Retirement Stocks to Hold Forever: Bank of America (BAC)
Source: Shutterstock
Dividend Yield: 1.6%
It might seem strange to open the list with Bank of America Corp (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.
10 Retirement Stocks to Hold Forever: Diageo (DEO)
Source: Mustafa Khayat Via Flickr
Dividend Yield: 2.7%
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 plc (ADR) (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 The Coca-Cola Co (NYSE: KO ) and Anheuser Busch InBev NV (ADR) (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 Investments You Should Hold in an IRA
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.
10 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 plc. Ordinary Shares (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.
10 Retirement Stocks to Hold Forever: NextEra Energy (NEE)
Source: Shutterstock
Dividend Yield: 2.5%
Utility stocks are among the most common safe, "buy and hold" issues. And NextEra Energy Inc (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 2.5% dividend yield provides income along the way.
The 7 Best Stocks to Survive a Chaotic Next Few Months
Investors looking for value in the space might look for a smaller play like cheaper Dominion Energy Inc (NYSE: D ). But it's usually worth paying for quality, and NextEra Energy looks like one of the best utility stocks out there.
10 Retirement Stocks to Hold Forever: McCormick (MKC)
Source: Blue Genie via Flickr
Dividend Yield: 2%
McCormick & Company, Incorporated (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 Group PLC-ADR (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.
10 Retirement Stocks to Hold Forever: Allstate (ALL)
Source: Shutterstock
Dividend Yield: 1.4%
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.
10 Cash-Rich Stocks to Buy (And What They Should Buy)
Once those short-term worries subside, ALL should resume its march upward.
10 Retirement Stocks to Hold Forever: International Flavors & Fragances (IFF)
Source: Shutterstock
Dividend Yield: 1.8%
International Flavors & Fragrances Inc (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 1.8% dividend, raised by 8% earlier this year, offers income potential as well.
Consumers may not know IFF - but investors should.
10 Retirement Stocks to Hold Forever: Lamb Weston (LW)
Source: Shutterstock
Dividend Yield: 1.4%
Lamb Weston Holdings Inc (NYSE: LW ) was spun off from Conagra Brands Inc (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 Corporation (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.
The 7 Best Dow Jones Stocks to Buy Right Now
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.
10 Retirement Stocks to Hold Forever: Fortune Brands (FBHS)
Source: Shutterstock
Dividend Yield: 1.2%
Investors are commonly advised to diversify their portfolio. Fortune Brands Home & Security Inc (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 1.2% 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.
10 Retirement Stocks to Hold Forever: Republic Services (RSG)
Source: Shutterstock
Dividend Yield: 2.1%
Republic Services, Inc. (NYSE: RSG ) is a bit smaller and likely a lot less well-known than rival Waste Management, Inc. (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.
4 Vanguard Bond Funds to Buy (And 3 to Avoid) for Higher Interest Rates
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.
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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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10 Retirement Stocks to Hold Forever: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.7% 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 plc (ADR) (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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10 Retirement Stocks to Hold Forever: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.7% 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 plc (ADR) (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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10 Retirement Stocks to Hold Forever: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.7% 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 plc (ADR) (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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10 Retirement Stocks to Hold Forever: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.7% 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 plc (ADR) (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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2017-12-28 00:00:00 UTC
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Will Brown-Forman & Boston Surge Higher Post a 52-Week High?
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https://www.nasdaq.com/articles/will-brown-forman-boston-surge-higher-post-a-52-week-high-2017-12-28
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The alcohol market in the United States has been expanding on strong demand. Also, the alcohol industry is poised to benefit from the holiday season and a buoyant U.S. economy. Markedly, the Zacks Beverages - Alcoholic industry has gained 12.1% in the past six months, outperforming the S&P 500's growth of 10%. Impressively, the Zacks Industry Rank falls within the top 40% (102 of 256).
Two leading players in this industry - Brown-Forman CorporationBF.B and The Boston Beer Company, Inc.SAM - have been flying high on this solid momentum and have crushed the industry's trend too. Shares of Brown-Forman and Boston Beer have surged 40.8% and 46%, respectively, over the past six months. This apart, the companies' sturdy fundamentals drove the stocks to hit a 52-week high on Dec 27. Notably, both these alcohol stocks sport a Zacks Rank
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Also, the alcohol industry is poised to benefit from the holiday season and a buoyant U.S. economy. Markedly, the Zacks Beverages - Alcoholic industry has gained 12.1% in the past six months, outperforming the S&P 500's growth of 10%. This apart, the companies' sturdy fundamentals drove the stocks to hit a 52-week high on Dec 27.
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Impressively, the Zacks Industry Rank falls within the top 40% (102 of 256). Two leading players in this industry - Brown-Forman CorporationBF.B and The Boston Beer Company, Inc.SAM - have been flying high on this solid momentum and have crushed the industry's trend too. Notably, both these alcohol stocks sport a Zacks Rank
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Markedly, the Zacks Beverages - Alcoholic industry has gained 12.1% in the past six months, outperforming the S&P 500's growth of 10%. Two leading players in this industry - Brown-Forman CorporationBF.B and The Boston Beer Company, Inc.SAM - have been flying high on this solid momentum and have crushed the industry's trend too. Notably, both these alcohol stocks sport a Zacks Rank
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The alcohol market in the United States has been expanding on strong demand. Shares of Brown-Forman and Boston Beer have surged 40.8% and 46%, respectively, over the past six months. Notably, both these alcohol stocks sport a Zacks Rank
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2017-12-07 00:00:00 UTC
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Diageo Clears Technical Benchmark, Hitting 80-Plus RS Rating
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https://www.nasdaq.com/articles/diageo-clears-technical-benchmark-hitting-80-plus-rs-rating-2017-12-07
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The Relative Strength ( RS ) Rating for Diageo ( DEO ) entered a new percentile Thursday, with a rise from 79 to 83.
[ibd-display-video id=2102289 width=50 float=left autostart=true] This proprietary rating identifies market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the trailing 52 weeks matches up against other publicly traded companies.
Over 100 years of market history shows that the stocks that go on to make the biggest gains often have an 80 or better RS Rating as they launch their biggest price moves.
See How IBD Helps You Make More Money In Stocks
Diageo is still within a buy zone after climbing above a 137.69 buy point in a flat base . Once a stock moves 5% or higher beyond the original entry, it's considered out of buy range.
The company reported 23% earnings growth in the latest quarterly report, while sales growth came in at 15%.
Diageo earns the No. 3 rank among its peers in the Beverages-Alcoholic industry group. Brown Forman (BFB) is the No. 1-ranked stock within the group.
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Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
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 Relative Strength ( RS ) Rating for Diageo ( DEO ) entered a new percentile Thursday, with a rise from 79 to 83. [ibd-display-video id=2102289 width=50 float=left autostart=true] This proprietary rating identifies market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the trailing 52 weeks matches up against other publicly traded companies. Once a stock moves 5% or higher beyond the original entry, it's considered out of buy range.
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The Relative Strength ( RS ) Rating for Diageo ( DEO ) entered a new percentile Thursday, with a rise from 79 to 83. [ibd-display-video id=2102289 width=50 float=left autostart=true] This proprietary rating identifies market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the trailing 52 weeks matches up against other publicly traded companies. The company reported 23% earnings growth in the latest quarterly report, while sales growth came in at 15%.
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[ibd-display-video id=2102289 width=50 float=left autostart=true] This proprietary rating identifies market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the trailing 52 weeks matches up against other publicly traded companies. The Relative Strength ( RS ) Rating for Diageo ( DEO ) entered a new percentile Thursday, with a rise from 79 to 83. Over 100 years of market history shows that the stocks that go on to make the biggest gains often have an 80 or better RS Rating as they launch their biggest price moves.
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The Relative Strength ( RS ) Rating for Diageo ( DEO ) entered a new percentile Thursday, with a rise from 79 to 83. [ibd-display-video id=2102289 width=50 float=left autostart=true] This proprietary rating identifies market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the trailing 52 weeks matches up against other publicly traded companies. See How IBD Helps You Make More Money In Stocks Diageo is still within a buy zone after climbing above a 137.69 buy point in a flat base .
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2017-12-07 00:00:00 UTC
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Brown Forman Joins Rank Of Stocks With 95-Plus Composite Rating
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https://www.nasdaq.com/articles/brown-forman-joins-rank-stocks-95-plus-composite-rating-2017-12-07
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Brown Forman (BFB) saw an improvement in its IBD SmartSelect Composite Rating Thursday, from 92 to 97.
[ibd-display-video id=2385970 width=50 float=left autostart=true] The revised score means the stock currently tops 97% of all other stocks in terms of key performance metrics and technical strength. The market's biggest winners often have a 95 or higher grade in the early stages of a new price run.
Brown Forman is now out of buy range after breaking out from a 55.23 entry in a cup with handle.
Looking For Winning Stocks? Try This Simple Routine
The stock sports a 91 EPS Rating, meaning its recent quarterly and annual earnings growth tops 91% of all stocks.
Its Accumulation/Distribution Rating of A shows heavy buying by institutional investors over the last 13 weeks.
The company reported 24% earnings growth for Q2. Sales growth rose 10%, up from 9% in the prior quarter. That marks two consecutive reports with increasing revenue gains.
Brown Forman holds the No. 1 rank among its peers in the Beverages-Alcoholic industry group. Brown Forman (BFA) and Diageo ( DEO ) are also among the group's highest-rated stocks.
RELATED:
Which Companies Are Now Outperforming 95% Of All Stocks?
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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[ibd-display-video id=2385970 width=50 float=left autostart=true] The revised score means the stock currently tops 97% of all other stocks in terms of key performance metrics and technical strength. Brown Forman (BFA) and Diageo ( DEO ) are also among the group's highest-rated stocks. Brown Forman (BFB) saw an improvement in its IBD SmartSelect Composite Rating Thursday, from 92 to 97.
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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. [ibd-display-video id=2385970 width=50 float=left autostart=true] The revised score means the stock currently tops 97% of all other stocks in terms of key performance metrics and technical strength. Brown Forman (BFA) and Diageo ( DEO ) are also among the group's highest-rated stocks.
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[ibd-display-video id=2385970 width=50 float=left autostart=true] The revised score means the stock currently tops 97% of all other stocks in terms of key performance metrics and technical strength. Brown Forman (BFA) and Diageo ( DEO ) are also among the group's highest-rated stocks. Try This Simple Routine The stock sports a 91 EPS Rating, meaning its recent quarterly and annual earnings growth tops 91% of all stocks.
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Brown Forman (BFA) and Diageo ( DEO ) are also among the group's highest-rated stocks. [ibd-display-video id=2385970 width=50 float=left autostart=true] The revised score means the stock currently tops 97% of all other stocks in terms of key performance metrics and technical strength. Try This Simple Routine The stock sports a 91 EPS Rating, meaning its recent quarterly and annual earnings growth tops 91% of all stocks.
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2017-12-06 00:00:00 UTC
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1 Top Alcohol Stock to Buy Now -- and 1 to Avoid
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https://www.nasdaq.com/articles/1-top-alcohol-stock-buy-now-and-1-avoid-2017-12-06
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Sin stocks, such as cigarette makers, alcoholic beverage brewers, and casino operators, have historically outperformed the market. Tobacco and alcohol companies, in particular, have thrived not just by selling products that are both mind-altering and addictive, but by creating high-profit-margin brands with which consumers develop strong relationships. Popular liquor brands like Jack Daniel's whiskey, Smirnoff vodka, or Jose Cuervo tequila, have been staples on bar shelves for generations.
The alcohol industry today
While alcohol is a product with no real substitute, shifting consumer tastes have rocked the industry in recent years, leading to a surge of merger activity , and creating new winners and losers.
The rapidly growing popularity of craft beer -- defined as those beers made by independent brewers that produce 6 million barrels or less a year -- has siphoned market share away from macrobrews like Budweiser, and led to industry giants like Anheuser Busch/InBev (NYSE: BUD) buying up scores of microbreweries, including Wicked Weed Brewing, Karbach Brewing Co., among others. By volume, craft beer sales increased 6.2% last year, though that clip is down from the double-digit percentage growth of previous years. Meanwhile, overall beer sales were flat last year.
Sales of Mexican imports like Corona and Modelo, which are distributed in the U.S. by Constellation Brands (NYSE: STZ) , are also growing, thanks to the country's expanding Hispanic population, wider distribution, and savvy marketing campaigns.
In liquor, whiskey has surged in popularity and availability: U.S. bourbon production has jumped by 150% over the last decade, and the number of craft distilleries has quintupled. The premium cocktail trend and an explosion of high-end cocktail bars have helped spark a resurgence of whiskey-based drinks and other creative beverages engineered by mixologists and bartenders. Some observers have also credited TV shows like Mad Men for the cultural shift. That growth has driven increasing sales and profits at Brown-Forman (NYSE: BF-A) (NYSE: BF-B) , which owns Jack Daniel's, as well as bourbon brands like Woodford Reserve and Old Forrester.
Domestic liquor sales grew 2.6% last year, with the growing popularity of bourbon driving much of that growth. Wine sales, meanwhile, were up 1%. Since the wine market is highly fragmented, with hundreds of brands and different vintages, as well as quality that can fluctuate marked from year to year, the wine industry tends to be of less interest to investors.
The major players
Below is a chart showing five of the best-known alcohol stocks.
Source: Yahoo! Finance and YCharts
As the table above shows, Constellation Brands is the clear winner both in year-to-date gains and over the last five years, during which it has crushed other alcohol stocks and the S&P 500 . Brown-Forman is the second-best performer over both time frames; the other three have lagged the broader market over the last five years. Sam Adams-brewer Boston Beer has fallen significantly over the last three years as smaller craft brews have chipped away at its market share.
Constellation Brands' runaway success can be traced primarily to a single event that happened five years ago. The company acquired the remaining 50% of Crown Imports that it didn't own from Grupo Modelo) (AB/InBev was forced to divest that stake when it bought Grupo Modelo.) The $1.8 billion purchase gave Constellation the exclusive right to distribute Grupo Modelo brands such as Corona, Modelo Especial, Pacifico, Negro Modelo, and Victoria in the U.S. Since then, Constellation has expanded its capacity by 10 million to 25 million hectaliters -- a number which will rise further when its new Mexicali megabrewery begins producing.
Thanks to that acquisition, revenue jumped 74% in fiscal 2014, and EPS has more than tripled over the last four years.
Growth has been slower at Brown-Forman, Diageo, and AB/InBev, which have all seen revenue tick up in the single-digit percentages in recent quarters, though AB/InBev has capitalized on its recent acquisition of SAB Miller. Since global alcohol sales volumes are relatively flat, investors should have modest expectations for growth from the industry. That lack of volume growth explains why there have been so many acquisitions recently, as well as a race to premiumization in craft beers and high-end liquors as consumers have developed more refined tastes.
Boston Beer, meanwhile, has struggled. Revenue declined 4.5% through the first three quarters as increasing competition from craft brewers has left Sam Adams in a squeeze between high-end microbrews and macro brands from the likes of Anheuser Busch and Molson Coors .
One for the road
For investors looking to get a piece of the alcohol sector, Constellation Brands continues to look like the best choice. While I wouldn't expect another 500% surge over the next five years, the company consistently beats earnings estimates, and is adjusting its portfolio to position itself for continued growth. It acquired craft brewer Ballast Point in December 2015, and made a strategic investment in Canopy Growth Corp. (TSX: WEED) , a leading cannabis company based in Canada. Constellation took a 9.9% stake in Canopy for about $200 million, and has the option to purchase an additional ownership interest. With Canada set to legalize recreational marijuana and an increasing number of U.S. states also doing so, the Corona importer is in a strong position to take advantage of the so-called green rush .
Cannabis seems like a natural extension for Constellation as the company has expertise with drug-related regulations, as well as the marketing and distribution expertise that would be necessary if legal marijuana becomes as big a business as investors hope. CEO Rob Sands said he thinks it's "highly likely" that pot will eventually be legalized in the U.S., though he said the company would not produce any cannabis products until it was legal at all levels. Sands also said Constellation would work with Canopy to develop cannabis-infused beverages.
Boston Beer, on the other hand, is a stock better off avoided. Though share prices have spiked about 40% since this summer on a better-than-expected second-quarter earnings report and speculation about a buyout , the stock is still down nearly 30% over the last three years. Revenue continues to decline, and at a forward P/E of 28.6, shares look pricey.
Constellation Brands, on the other hand, trades at a forward P/E of 23.3. Considering that the other companies listed above are valued similarly but growing more slowly, and Constellation looks well positioned for the future, I think the Corona importer is the best alcohol stock to buy today.
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 December 4, 2017
Jeremy Bowman 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 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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Revenue declined 4.5% through the first three quarters as increasing competition from craft brewers has left Sam Adams in a squeeze between high-end microbrews and macro brands from the likes of Anheuser Busch and Molson Coors . It acquired craft brewer Ballast Point in December 2015, and made a strategic investment in Canopy Growth Corp. (TSX: WEED) , a leading cannabis company based in Canada. With Canada set to legalize recreational marijuana and an increasing number of U.S. states also doing so, the Corona importer is in a strong position to take advantage of the so-called green rush .
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That growth has driven increasing sales and profits at Brown-Forman (NYSE: BF-A) (NYSE: BF-B) , which owns Jack Daniel's, as well as bourbon brands like Woodford Reserve and Old Forrester. It acquired craft brewer Ballast Point in December 2015, and made a strategic investment in Canopy Growth Corp. (TSX: WEED) , a leading cannabis company based in Canada. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.
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The rapidly growing popularity of craft beer -- defined as those beers made by independent brewers that produce 6 million barrels or less a year -- has siphoned market share away from macrobrews like Budweiser, and led to industry giants like Anheuser Busch/InBev (NYSE: BUD) buying up scores of microbreweries, including Wicked Weed Brewing, Karbach Brewing Co., among others. By volume, craft beer sales increased 6.2% last year, though that clip is down from the double-digit percentage growth of previous years. Finance and YCharts As the table above shows, Constellation Brands is the clear winner both in year-to-date gains and over the last five years, during which it has crushed other alcohol stocks and the S&P 500 .
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Since global alcohol sales volumes are relatively flat, investors should have modest expectations for growth from the industry. That lack of volume growth explains why there have been so many acquisitions recently, as well as a race to premiumization in craft beers and high-end liquors as consumers have developed more refined tastes. That's right -- they think these 10 stocks are even better buys.
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727915.0
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2017-12-06 00:00:00 UTC
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These Hard Liquors Are Gaining Popularity Now As Tastes Shift
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DEO
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https://www.nasdaq.com/articles/these-hard-liquors-are-gaining-popularity-now-tastes-shift-2017-12-06
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nan
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Spirits have chipped away at beer's popularity for several years, but executives at Brown-Forman (BFB) see an even faster-growing kind of booze than spirits: straight-up hard liquor.
[ibd-display-video id=3006975 width=50 float=left autostart=true] The owner of Jack Daniel's, Herradura tequila, Chambord and other kinds of liquor also ratcheted up its full-year profit and underlying net sales guidance and easily topped fiscal second-quarter forecasts on Wednesday. The results, as one analyst suggested during the company's earnings call, stood out as other companies in the consumer-staples industry struggle.
CEO Paul Varga attributed that success, in part, to what the company has been doing for decades.
"Our categories, where we're focused - American whiskeys, bourbons, increasingly tequilas, Irish - these are categories today that are growing ahead of even the distilled spirits category in the United States," he said during the company's earnings call. "We think we're particularly well positioned."
The premium ends of those kinds of liquor, he said, tend to be the categories that are growing ahead of the market.
Management also said that it was positioning its new Tennessee Rye for "long-term success," and expected it to help sales for the rest of the year.
That strategy could echo the way it has treated its Jack Daniel's Tennessee Honey and its cinnamon-flavored Tennessee Fire - both of which have been rolled out in recent years in attempt to draw millennial drinkers. Varga said "it was a conscious choice to treat those more like brands," rather than novelty flavors.
The company, in a statement, attributed the gains in the second quarter to "improving economies in the emerging markets," and the appeal of Jack Daniel's, Woodford Reserve, Old Forester and Herradura tequila. Growth in Poland and Mexico was strong. Varga, during the call, singled out what he described as the rapidly-increasing popularity of Herradura Ultra in Mexico, where tequila isn't exactly in short supply.
While the company suggested it was satisfied with its strategy to drive tequila sales, management said it might need to refine how it sells its single-malt scotch, which tends to be sold more uniquely, and at a higher price, than other kinds of liquor.
The company said its Scotch brands aren't performing up to plans right now due to hiccups related to timing on bringing them to market.
Shares were up 6.5% at 65.82 on the stock market today , a record close after surging as much as 9.6% intraday.
IBD'S TAKE:On the search for even more stocks with actionable trading opportunities? Check out ourStock Listspage, where you can find stocks near buy zones, stocks hitting new highs, sector leaders, tech leaders, IPO leaders and more.
Brown-Forman's fiscal Q2 earnings per share jumped 23% to 62 cents, while reported net sales rose 10% to $914 million. Wall Street expected EPS of 53 cents and revenue of $868 million, according to Zacks Investment Research.
The company boosted its full-year EPS outlook to $1.90-$1.98, up from a prior view of $1.85-$1.95, with the midpoint above the consensus for $1.92. Brown-Forman now sees underlying net sales growth of 6%-7%, up from an earlier view for 4%-5%. The EPS forecast was helped by better sales, a slightly lower tax rate, and expectations for lower inventories.
The company said it expects more modest growth in emerging markets for the rest of the fiscal year.
Brown-Forman faces stiff competition from other big booze companies like Constellation Brands ( STZ ) - whose portfolio includes Corona, Kim Crawford wines and other spirits - and Diageo ( DEO ), whose brands include Smirnoff, Tanqueray and Captain Morgan. News surfaced earlier this year that Brown-Forman rejected a takeover offer from Constellation.
But shares of Brown-Forman have climbed since late August, when the company raised its full-year EPS forecast and delivered estimate-topping first-quarter earnings, marking what Zacks analysts called a rebound from a "dismal" prior quarter.
A lower tax rate and an easier foreign exchange environment influenced the full-year forecast at that time, but the company also held to its sales outlook despite troubled economies outside the U.S.
Brown-Forman's results also arrive as the alcoholic beverage industry tries to figure out what to do with marijuana, around which a rapidly growing industry has formed as more U.S. states legalize the plant.
Constellation in October said it agreed to take a 9.9% stake in the Canadian marijuana company Canopy Growth , while Molson Coors ( TAP ) said last month that the company had a team to gauge " potential impacts and/or the opportunities " of the cannabis industry.
Brown-Forman last month said it was "continuing to monitor" the cannabis industry's development, without offering further detail. The subject did not come up during Wednesday's conference call.
RELATED:
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As Investors Eye Marijuana Industry, These Products May Go Mainstream
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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[ibd-display-video id=3006975 width=50 float=left autostart=true] The owner of Jack Daniel's, Herradura tequila, Chambord and other kinds of liquor also ratcheted up its full-year profit and underlying net sales guidance and easily topped fiscal second-quarter forecasts on Wednesday. Brown-Forman faces stiff competition from other big booze companies like Constellation Brands ( STZ ) - whose portfolio includes Corona, Kim Crawford wines and other spirits - and Diageo ( DEO ), whose brands include Smirnoff, Tanqueray and Captain Morgan. While the company suggested it was satisfied with its strategy to drive tequila sales, management said it might need to refine how it sells its single-malt scotch, which tends to be sold more uniquely, and at a higher price, than other kinds of liquor.
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[ibd-display-video id=3006975 width=50 float=left autostart=true] The owner of Jack Daniel's, Herradura tequila, Chambord and other kinds of liquor also ratcheted up its full-year profit and underlying net sales guidance and easily topped fiscal second-quarter forecasts on Wednesday. Brown-Forman faces stiff competition from other big booze companies like Constellation Brands ( STZ ) - whose portfolio includes Corona, Kim Crawford wines and other spirits - and Diageo ( DEO ), whose brands include Smirnoff, Tanqueray and Captain Morgan. Brown-Forman's fiscal Q2 earnings per share jumped 23% to 62 cents, while reported net sales rose 10% to $914 million.
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[ibd-display-video id=3006975 width=50 float=left autostart=true] The owner of Jack Daniel's, Herradura tequila, Chambord and other kinds of liquor also ratcheted up its full-year profit and underlying net sales guidance and easily topped fiscal second-quarter forecasts on Wednesday. Brown-Forman faces stiff competition from other big booze companies like Constellation Brands ( STZ ) - whose portfolio includes Corona, Kim Crawford wines and other spirits - and Diageo ( DEO ), whose brands include Smirnoff, Tanqueray and Captain Morgan. But shares of Brown-Forman have climbed since late August, when the company raised its full-year EPS forecast and delivered estimate-topping first-quarter earnings, marking what Zacks analysts called a rebound from a "dismal" prior quarter.
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[ibd-display-video id=3006975 width=50 float=left autostart=true] The owner of Jack Daniel's, Herradura tequila, Chambord and other kinds of liquor also ratcheted up its full-year profit and underlying net sales guidance and easily topped fiscal second-quarter forecasts on Wednesday. Brown-Forman faces stiff competition from other big booze companies like Constellation Brands ( STZ ) - whose portfolio includes Corona, Kim Crawford wines and other spirits - and Diageo ( DEO ), whose brands include Smirnoff, Tanqueray and Captain Morgan. Management also said that it was positioning its new Tennessee Rye for "long-term success," and expected it to help sales for the rest of the year.
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6c80fdb1-87a0-4d64-9cac-9917eb92cb86
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727916.0
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2017-12-04 00:00:00 UTC
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3 Stocks Set to Drop
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DEO
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https://www.nasdaq.com/articles/3-stocks-set-drop-2017-12-04
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nan
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nan
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The stock market continues to march higher, but not all investors necessarily consider that a good thing. All-time greats from Carl Icahn to Warren Buffett have questioned whether the historic rise, or the difficulty of finding value stocks in today's expensive environment, will end soon. They certainly have a point.
At a time when investors need to dig deep to ignore emotional cues and stick to their long-term plan, or put in the extra effort to find that hidden gem, they cannot afford costly mistakes -- such as hanging onto a stock that's set to drop. That's why I think there's good reason to ditch specialty chemical manufacturer Chemours Company (NYSE: CC) , oilfield products supplier Flotek Industries (NYSE: FTK) , and whiskey specialist MGP Ingredients (NASDAQ: MGPI) .
A socially irresponsible investment
There's no denying that Chemours is running an efficient operation right now. Its titanium and fluoroproducts businesses are booming. They alone have resulted in a 114% increase in EPS in the first nine months of 2017 compared with the year-ago period. A steady increase in selling prices will have that effect. However, I think there's a major cloud hanging over the stock.
Shares have more than doubled in the past year, for two reasons. First, Chemours settled a long-standing legal dispute over the release of a toxic chemical previously used in the manufacturing process of its fluoroproducts. That relieved Wall Street's concerns and removed uncertainty. Second, a global recovery in selling prices of titanium dioxide has boosted performance throughout the year. The improvement is genuine and could continue to deliver gains, but the company may be headed for additional uncertainty regarding pollution.
That's because PFOA, the toxic chemical at the center of the previously settled legal battle, was replaced with something called GenX, which appears to be just as toxic to human health. Worse for investors, the state of North Carolina isn't taking any chances and is getting serious with Chemours before a major public health crisis has the chance to unfold. The company is currently facing five separate lawsuits regarding the discharge of GenX, is being forced to provide bottled water to at least 85 households found to have tainted wells, and may even be investigated by the state's Bureau of Investigation for criminal charges.
Simply put, I wouldn't feel comfortable owning Chemours stock right now, and I don't think too many other investors would feel that it's a socially responsible investment, either.
Don't wait for this stock to ripen
Flotek Industries stock has recently sunk to lows last seen in 2011. That's mostly due to one culprit: oranges. Yes, as in the fruit. It may seem ridiculous at first, but investors need to consider the long-term risks.
The company's drilling products and specialty ingredients are derived from citrus oil, which is predominantly sourced from America's orange crop. However, years of citrus greening disease have devastated the country's output, while the recent hurricane season wiped out half of all citrus acres. The result: significantly reduced supply, significantly higher prices, and virtually no reasonable alternative for sourcing the inputs that Flotek Industries has staked its product portfolio upon.
Worst yet, the problem is largely out of the company's hands. Without significantly pivoting on its established product portfolio -- a costly move that would take years -- there doesn't appear to be much reason for near-term optimism. Even if the nation's citrus crop rebounds from the effects of this year's hurricane season, citrus greening disease promises to continually erode output over time. Investors should steer clear of Flotek Industries stock.
A multi-bagger set to drop
Although the stock continues to climb, I don't think MGP Ingredients can continue to hold its remarkable gains. The contract distiller has risen from an $80 million market cap five years ago to a $1.2 billion valuation today -- the definition of a hidden gem. The growth is certainly impressive, but the 17-bagger stock hasn't quite earned that valuation .
In the past three years, MGP Ingredients has enjoyed a 374% increase in market cap despite just a 66% increase in annual EPS. That simply isn't sustainable. Sure, the company has a genuine business and a major vote of confidence from blue-chip customer Diageo , but that alone isn't worth the stock's premium. Besides, much larger fuel ethanol companies are beginning to pivot spare capacity into the higher-margin premium beverage space -- and they have an order of magnitude more capital to deploy.
That means there's a new crop of competition about to make growth that much more difficult for MGP Ingredients. The distiller can still grow for the foreseeable future, but there won't be much room for error. Given the astronomical rise in the past three years and its excessive valuation, it seems reasonable that investors will abandon the stock once the growth story begins to falter.
What does it mean for investors?
There's no denying that the broader stock market is historically expensive. While that doesn't mean investors need to run away in fear, it does hint that they need to continue to focus on only the strongest businesses with a long-term mindset. However, I think there are strong reasons that Chemours, Flotek Industries, and MGP Ingredients are three stocks set to drop. Investors should proceed with caution.
10 stocks we like better than Flotek Industries
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 Flotek Industries 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 6, 2017
Maxx Chatsko 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-time greats from Carl Icahn to Warren Buffett have questioned whether the historic rise, or the difficulty of finding value stocks in today's expensive environment, will end soon. At a time when investors need to dig deep to ignore emotional cues and stick to their long-term plan, or put in the extra effort to find that hidden gem, they cannot afford costly mistakes -- such as hanging onto a stock that's set to drop. Besides, much larger fuel ethanol companies are beginning to pivot spare capacity into the higher-margin premium beverage space -- and they have an order of magnitude more capital to deploy.
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That's why I think there's good reason to ditch specialty chemical manufacturer Chemours Company (NYSE: CC) , oilfield products supplier Flotek Industries (NYSE: FTK) , and whiskey specialist MGP Ingredients (NASDAQ: MGPI) . Even if the nation's citrus crop rebounds from the effects of this year's hurricane season, citrus greening disease promises to continually erode output over time. However, I think there are strong reasons that Chemours, Flotek Industries, and MGP Ingredients are three stocks set to drop.
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Simply put, I wouldn't feel comfortable owning Chemours stock right now, and I don't think too many other investors would feel that it's a socially responsible investment, either. Don't wait for this stock to ripen Flotek Industries stock has recently sunk to lows last seen in 2011. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Flotek Industries wasn't one of them!
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The company's drilling products and specialty ingredients are derived from citrus oil, which is predominantly sourced from America's orange crop. What does it mean for investors? However, I think there are strong reasons that Chemours, Flotek Industries, and MGP Ingredients are three stocks set to drop.
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727917.0
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2017-11-30 00:00:00 UTC
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10 Best Stocks I Wish I Bought in 2017
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DEO
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https://www.nasdaq.com/articles/10-best-stocks-i-wish-i-bought-in-2017-2017-11-30
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Care to guess how many stocks have gained 30% or more so far in 2017?
According to Finviz.com, out of 1,747 stocks with a market cap of $2 billion or higher, 555 have delivered YTD performance of 30% or more. Naturally, as 2017 comes to close, most investors will dwell on the ones that got away this past year.
You know, the no-brainers that any idiot could pick such as Weight Watchers International, Inc. (NYSE: WTW ), Oprah's little darling, and Universal Display Corporation (NASDAQ: OLED ), whose reign at the top of the Organic Light Emitting Diodes (OLED) display industry shows no signs of letting up.
It's easy to look back at the year that's passed and wish you'd bought these two stocks that are up 276% and 231% year to date, respectively.
12 Best Dividend Stocks for the Next 12 Months
Harder are those that are up 30%-40% on the year and whose returns weren't nearly as easy to predict. Nonetheless, here are ten stocks I wish I'd owned in 2017.
Best Stocks I Wish I Bought in 2017: Sherwin-Williams (SHW)
Source: Shutterstock
The sale of new homes in the U.S. hit a 10-year high in October, an indication that Americans have forgotten about the housing crisis almost a decade earlier. One company that benefits directly from a robust housing market is Sherwin-Williams Co (NYSE: SHW ) whose paints and stains are a welcome addition to any home, new or existing.
"The Valspar integration plans and synergy progress is in line with our expectations. We remain focused on strengthening the performance of our core businesses and our newly acquired businesses," stated CEO John Morikis in its Q3 2017 earnings report.
"We have implemented appropriate pricing initiatives to offset increasing raw material costs, and continue to focus on volume improvements in all businesses and all regions."
Sherwin-Williams completed the acquisition of Valspar in June. It first announced it was buying its competitor in March 2016. Up 49% year to date through Nov. 28, 2017, the writing was definitely on the wall heading into 2017.
Best Stocks I Wish I Bought in 2017 : Mohawk Industries (MHK)
Source: Shutterstock
Another beneficiary of a healthy housing market is Mohawk Industries, Inc. (NYSE: MHK ) who manufacture flooring and carpet. Its stock is up 40% year to date, double the S&P 500 . Interestingly, MHK stock hasn't had a negative calendar year return since 2008, the year the housing market went in the tank.
A $10,000 investment in Mohawk Industries at the beginning of the bull market back in March 2009 would be worth a little more than $163,000, an annualized annual return of 37.6%.
Mohawk Industries announced Nov. 20 that it is acquiring Godfrey Hirst Group, Australia and New Zealand's largest flooring manufacturer with $334 million in annual sales. Although the company didn't reveal how much it was paying for the company down under, it did say it would be accretive to earnings in the first 12 months.
7 Stocks to Double Your Money
"Mohawk is using its strong management team and balance sheet to increase its participation in the global flooring market," stated Mohawk Industries CEO Jeffrey Lorberbaum. "With Godfrey Hirst, Mohawk will become the leader in flooring products in both Australia and New Zealand with a platform for significant growth."
Best Stocks I Wish I Bought in 2017: Diageo (DEO)
Source: Mustafa Khayat Via Flickr
Earlier this year I wrote an article about three ETFs I thought should never be in your portfolio calling them "The 3 Worst ETFs in the World" . One of them, the Spirited Funds/ETFMG Whiskey & Spirits ETF (NYSEARCA: WSKY ), made the argument that we are at the beginning of a 25-40 year supercycle for the demand of whiskey and spirits.
I made the argument that you should just buy Diageo Plc (ADR) (NYSE: DEO ) as a proxy for the whiskey industry and forego the management fee.
"Why pay an annual management fee of 0.75% when you can simply buy Diageo stock - a good proxy for the liquor industry and the largest producer in the world - and do so for no more than the brokerage commission?" I wrote Feb. 2.
It was right there in front of me.
I all but agreed with the ETF provider's thesis that whiskey was on the rise. I even revisited the ETF in September and admitted that I was too hard on WSKY. That it made sense to own if you wanted to capture a bunch of companies that didn't trade on the NYSE or Nasdaq.
As Diageo was the top holding when I first wrote about WSKY, I knew it had a chance to have a good year in the markets and it did up 39% year to date.
My bad.
Best Stocks I Wish I Bought in 2017: Apple (AAPL)
Source: Shutterstock
In fairness to my stock-picking skills, like most investors, I didn't see the iPhone X being such a huge success for Apple Inc. (NASDAQ: AAPL ).
Many experts were pointing to a slowdown in smartphone sales - or at least a plateau - heading into 2017 and given the higher price of Apple's new phone; it didn't look good for the world's largest publicly traded company.
Over Black Friday weekend, Apple is said to have sold six million iPhone Xs , many of them with 256GB of storage, making its most expensive phone ever sold even costlier for those who doled out a G-note.
With 15 million sold in just three weeks, Apple is set to deliver a strong holiday quarter.
In early February, I predicted that Apple's recurring services revenue would take AAPL stock to $200. It now appears that the iPhone won't be relegated to passenger status as we enter 2018.
4 Cryptocurrencies to Buy If You Missed the Boat on Bitcoin
Up almost 50% year to date, I wish I'd pulled the trigger earlier in the year, but you can't own them all.
Best Stocks I Wish I Bought in 2017: National Beverage (FIZZ)
Source: H. Michael Karshis (Modified)
The minute LaCroix showed up on my local grocery store's shelves, I should have been buying National Beverage Corp. (NASDAQ: FIZZ ) stock.
Living in Canada, we sometimes don't get hot products until they're bursting at the seams. The mere appearance of the popular line of flavored sparkling waters was a confirmation of the drink's popularity. A buy signal if there ever was one.
Up 113% year to date, many believe there are more gains to be had with FIZZ stock in 2018.
Susquehanna just upped its 12-month target price from $108 to $150 suggesting there's a 25% chance it will be sold; however, even without a sale, the brand's revenues and overall profitability bode well for the stock.
M ad Money's Jim Cramer sees a big short-squeeze happening with FIZZ stock recently recommending that younger investors can take a chance with this stock despite the enormous gains over the past year.
Who knew sparkling water could be so popular? They said the same thing about energy drinks.
Best Stocks I Wish I Bought in 2017: Noah Holdings (NOAH)
Source: Shutterstock
If you're unfamiliar with Noah Holdings Limited (ADR) (NYSE: NOAH ), it's a rapidly expanding Chinese asset management firm focussing on high net worth investors in the country.
I first recommended NOAH in 2013 when it was a much smaller company with annual revenues of just $87 million. Today, annual revenues are approaching $500 million with 20% operating margins.
Up 243% since June 2013 and 99% year to date, NOAH had been either hot or cold since its IPO in November 2010.
The company expects its non-GAAP net income in fiscal 2017 to increase by a minimum of 14% to $125 million. Look for its online wealth management platform to continue to experience rapid growth in 2018. In Q3 2017, its internet business saw revenues increase by 172% year over year but is not yet profitable.
3 Unknown Dividend Aristocrats Returning 10%+ Annually
With China's economy coming back to life in 2017, I should have known that financial services companies would have been a prime beneficiary of the renewed growth.
Best Stocks I Wish I Bought in 2017: Camping World (CWH)
Source: Shutterstock
I first heard of Camping World Holdings Inc (NYSE: CWH ) because of CEO Marcus Lemonis's CNBC show, The Profit, which helps small businesses succeed. Little did I know that he walks the talk he dishes out on his show.
Since taking his company public in October 2016 at $22 a share, CWH stock is up 109% through Nov. 29. It continues to benefit from a hot RV market that's getting buyers from all kinds of customers including millennials.
"RV sales have been growing rapidly and have already surpassed their mid-2000s peak. RV dealer Camping World Holdings could be the biggest beneficiary of the trend. The company 'not only sells the units, but also can capture high-margin service revenue,'" BMO Capital Markets analyst Gerrick Johnson said in a Nov. 25 Barron's article. "Young adults who are buying their first RVs or trailers often finance their purchases and are more likely to pay for servicing, rather than doing it themselves."
Could I have seen its 43% gain in 2017 coming? You bet.
Atlantic magazine ran a story in December 2016 that showed how RV sales follow the economy both up and down.
"We've been a leading indicator up and down for decades now," said Kevin Broom, a spokesman for the Recreational Vehicle Industry Association, the trade group representing the industry. "It's a large discretionary purchase that people borrow money to make."
RV sales have headed higher since the 2009 market bottom and are getting very close to breaking the 2006 record.
Best Stocks I Wish I Bought in 2017: Mastercard or Visa (MA, V)
Source: Shutterstock
Another sign the economy is healthy is that both the major credit card payment processors' stocks are doing well in 2017 - Visa Inc (NYSE: V ) and Mastercard Inc (NYSE: MA ) are up 42% and 45% year to date respectively.
Could we have seen it coming?
I do think there were signs the economy was growing as we entered 2017 despite a wobbly retail industry. Fortune ran a story in November 2016 that suggested Americans would have more than $1 trillion in credit card debt by the end of the year, the first time since 2008.
"That high-water mark is actually an encouraging sign of economic recovery," stated Fortune contributor Matthew Heimer. "Since the Great Recession, Visa, MasterCard, American Express, and Discover have become increasingly efficient profit machines. In 2016 they're on track to post $20 billion in earnings on $70 billion in revenue, according to S&P Global, up from $9.6 billion and $48 billion, respectively, in 2010."
So, yeah, we could have seen it coming. Maybe not the returns Visa and Mastercard have managed to deliver for shareholders in 2017, but better than the single-digit returns of 2016.
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As the economy goes, so goes Visa and Mastercard.
Best Stocks I Wish I Bought in 2017: Alibaba (BABA)
Source: Photo by via Alibaba
Sometimes it pays to listen to your advice.
If I had done so last December, I might be sitting on a 105% gain after recommending buying Alibaba Group Holding Ltd (NYSE: BABA ) stock as it dropped close to $80.
"Could BABA stock really be headed for e-commerce oblivion simply because a single man, albeit a powerful one, is opposed to China's currency manipulation?" I asked December 8. "Alibaba's $2.1 billion in free cash flow for Q2 makes BABA stock a sound investment. Understanding that its main source of revenue is relatively protected from competition, it's vital that investors figure out what this means for the BABA stock price. Fear of the unknown has created significant volatility in BABA stock. Trump in office clearly won't change that."
Interestingly, since then, BABA stock has been relatively free of volatility.
Regardless, I've liked Jack Ma's vision for Alibaba for some time and have written several positive articles about the company in 2017.
I should have been a buyer of its stock.
Best Stocks I Wish I Bought in 2017: Arcos Dorados (ARCO)
Source: Mike Mozart via Flickr
Arcos Dorados Holding Inc (NYSE: ARCO ) is the world's largest McDonald's Corporation (NYSE: MCD ) franchisee with more than 2,100 restaurants in Latin America and the Caribbean.
In January 2017, I called ARCO one of "The 3 Best Restaurant Stocks to Buy in 2017" . It's up 90% year to date. Call it my revenge pick after being horrifically wrong about the stock in 2011.
Earnings and same-store sales excluding currency devaluations were healthy heading into 2017. In the third quarter ended September 30, 2017, the company's systemwide comparable sales were up 10.4% year over year with net income of $23.4 million, a big turnaround from the $1.8 million loss a year earlier.
The 4 Best Investments of 2017
I might have missed buying ARCO, but that doesn't mean you should. If you can handle the obvious risks of a Latin American investment, I see a better outcome for its shareholders six years from now.
As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.
The post 10 Best Stocks I Wish I Bought in 2017 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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Best Stocks I Wish I Bought in 2017: Diageo (DEO) Source: Mustafa Khayat Via Flickr Earlier this year I wrote an article about three ETFs I thought should never be in your portfolio calling them "The 3 Worst ETFs in the World" . I made the argument that you should just buy Diageo Plc (ADR) (NYSE: DEO ) as a proxy for the whiskey industry and forego the management fee. Best Stocks I Wish I Bought in 2017: Sherwin-Williams (SHW) Source: Shutterstock The sale of new homes in the U.S. hit a 10-year high in October, an indication that Americans have forgotten about the housing crisis almost a decade earlier.
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Best Stocks I Wish I Bought in 2017: Diageo (DEO) Source: Mustafa Khayat Via Flickr Earlier this year I wrote an article about three ETFs I thought should never be in your portfolio calling them "The 3 Worst ETFs in the World" . I made the argument that you should just buy Diageo Plc (ADR) (NYSE: DEO ) as a proxy for the whiskey industry and forego the management fee. Best Stocks I Wish I Bought in 2017 : Mohawk Industries (MHK) Source: Shutterstock Another beneficiary of a healthy housing market is Mohawk Industries, Inc. (NYSE: MHK ) who manufacture flooring and carpet.
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Best Stocks I Wish I Bought in 2017: Diageo (DEO) Source: Mustafa Khayat Via Flickr Earlier this year I wrote an article about three ETFs I thought should never be in your portfolio calling them "The 3 Worst ETFs in the World" . I made the argument that you should just buy Diageo Plc (ADR) (NYSE: DEO ) as a proxy for the whiskey industry and forego the management fee. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Care to guess how many stocks have gained 30% or more so far in 2017?
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Best Stocks I Wish I Bought in 2017: Diageo (DEO) Source: Mustafa Khayat Via Flickr Earlier this year I wrote an article about three ETFs I thought should never be in your portfolio calling them "The 3 Worst ETFs in the World" . I made the argument that you should just buy Diageo Plc (ADR) (NYSE: DEO ) as a proxy for the whiskey industry and forego the management fee. As Diageo was the top holding when I first wrote about WSKY, I knew it had a chance to have a good year in the markets and it did up 39% year to date.
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The 10 Best Acquisitions of 2017
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In a year in which the S&P 500 has performed tremendously well, mergers and acquisitions deals in the U.S. have been remarkably quiet. According to Bloomberg , only 43% of the world's best acquisitions involved North American companies.
In fact, year-to-date through mid-November, North American M&A deals are down 35% despite Canada having a solid year when it comes to acquisitions. It seems the so-called Trump effect on the markets hasn't translated to the mergers and acquisitions market.
At least not yet.
There is speculation that many CEOs are waiting to see what happens with the AT&T Inc. (NYSE: T ) takeover of Time Warner Inc (NYSE: TWX ) before launching into any multi-billion dollar acquisitions that will face extreme scrutiny from the Justice Department.
It also might be that CEOs fear to pay too much for acquisitions at a time when big corporations are leveraged at record levels.
Whatever the reluctance resulting in lower volumes, there still have been some fascinating M&A deals in 2017.
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Here are ten of the best acquisitions over $1 billion this past year.
Best Acquisitions of 2017: Amazon (AMZN) / Whole Foods
Source: Shutterstock
It might not have been the biggest deal of 2017 regarding dollars - $13.7 billion - but Amazon.com, Inc. (NASDAQ: AMZN ) buying Whole Foods sure did a number on grocery stocks, which are down 16% YTD.
Kroger Co (NYSE: KR ), the largest U.S.-listed grocery store chain has fared even worse, down 32% in 2017; Amazon is up 60% YTD on investor expectations it will lower food prices at Whole Foods, making the healthy grocer more attractive to the average shopper.
Whether it be the home delivery of groceries or Amazon's move into pharmacies, investors are betting CEO Jeff Bezos has a winning plan to capture retail sales online and off.
"We're determined to make healthy and organic food affordable for everyone," said Jeff Wilke, CEO of Amazon Worldwide Consumer in August on the closing of the acquisition. "Everybody should be able to eat Whole Foods Market quality - we will lower prices without compromising Whole Foods Market's long-held commitment to the highest standards."
It's never wise to bet against Bezos. This acquisition should be viewed as a winner by Amazon shareholders.
Best Acquisitions of 2017: Samsung Electronics (SSNLF) / Harman International
Source: Sylwia Bartyzel Via Unsplash
Back in July 2016, I calledHarman International Industries Inc (NYSE: HAR ), best known for its car stereos and navigation systems, one of the best "hidden values" on the market.
At the time, Harman had just delivered solid earnings with a 2.5% cut in its full-year earnings. Investors gave it a big smackdown, sending its share price down 30% on its disappointing guidance.
I argued that the punishment did not fit the crime; the 30% haircut was unwarranted providing investors with a real value play.
"At the end of the day, Harman still is going to generate $6.8 billion in revenue and $6.20 per share in earnings," I wrote July 1, 2016. "So considering that HAR stock is trading at less than 12 times those earnings, the 30% drop in HAR stock hardly seems fair.
"This is a good company whose stock has seen many ups and downs. Hold it long-term, and you're going to make money."
Flash forward to November 2016.
Samsung Electronics offered to buy Harman for $112 a share or $8 billion. Completing the deal the following March, Samsung bought Harmen so that it could capture a big chunk of the automotive electronics market.
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I believe Samsung got a deal at $112, about $39 more than its price on July 1, 2016, when I recommended it.
Best Acquisitions of 2017: Intel (INTC) / Mobileye
Source: Intel
Intel Corporation (NASDAQ: INTC ) announced in August that it had completed its tender offer for the outstanding shares of Mobileye, acquiring 84% of its shares for $63.54 -per-share or $15.3 billion.
The Israel-based company's computer vision and machine learning technology combined with Intel's high-performance computing gives Intel a big leg up in the move to autonomous driving.
"With Mobileye, Intel emerges as a leader in creating the technology foundation that the automotive industry needs for an autonomous future," said Intel CEO Brian Krzanich in August. "It's an exciting engineering challenge and a huge growth opportunity for Intel. Even more exciting is the potential for autonomous cars to transform industries, improve society and save millions of lives."
Intel estimates this market will grow to $70 billion annually by 2030, a mere 13 years from now. As Intel investors look back on this acquisition it's likely they'll be thrilled with the results.
Best Acquisitions of 2017: JAB Holdings / Panera Bread
Source: Shutterstock
Currently, a private company, JAB Holdings completed its $7.5 billion acquisition of Panera Bread for $7.5 billion in July.
Panera joins a stable of coffee-related brands that include Peet's Coffee, Keurig Green Mountain, Krispy Kreme and Jacobs Douwe Egberts. In addition to the coffee investments, JAB has ownership interests in several apparel companies and non-food-related ventures.
Buying Panera Bread gives JAB Holdings another retail vehicle to grow its coffee sales in the U.S. and other parts of the world. Panera Bread gets the resources of a much more significant company to continue its expansion plans outside the U.S.
Apparently, Starbucks Corporation (NASDAQ: SBUX ) was one of the bidders for Panera, but it lost out to JAB Holdings.
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It's not hard imagining JAB taking the company public in 2018. With $30 billion in assets as of the end of December 2016, it's a force to be reckoned with; its IPO would be very attractive to investors.
Best Acquisitions of 2017: GE (GE) / Baker Hughes (BHI)
Source: Shutterstock
Given all of the bad press General Electric Company (NYSE: GE ) has received in recent weeks, I thought I'd chime in on a positive aspect of its 2017 purchase of Baker Hughes A GE Co (NYSE: BHI ) for approximately $23 billion .
A complex deal, GE combined its oil and gas services with Baker Hughes' assets to create the world's second-largest oilfield and services provider in terms of revenue behind only Schlumberger Limited. (NYSE: SLB ). Operating independently of GE, GE shareholders got 62.5% of BHI with Baker Hughes shareholders getting the remainder.
The expensive move further into the oil and gas business forced new CEO John Flannery to reassess every part of its business, including reducing the number of directors from 18 to 12 - a move that will see half the current directors lose their positions and three new ones join the board.
As part of this unprecedented shakeup in its corporate structure, GE will focus on just three areas: Healthcare, Aviation and Power.
This means that once GE is allowed to sell its majority stake in BHI, it will surely do so.
Is it enough to turn around the lumbering business? Many analysts don't think so, but at least it's gotten the ball rolling.
Baker Hughes might not be the best acquisition of 2017, but it's certainly one of the most significant in the history of General Electric.
Best Acquisitions of 2017: Diageo (DEO) / Casamigos
Source: Puamella via Flickr (Modified)
I couldn't resist putting a liquor-related transaction in my list of 10 best acquisitions; this is despite the deal being only worth $1 billion. But in a year in which there weren't too many blockbusters, Diageo plc (ADR)'s (NYSE: DEO ) purchase of Casamigos - George Clooney was one of the partners - the fastest-growing super-premium tequila brand in the U.S., ranks right up there for consumer interest.
People might not know who Diageo is, but they certainly know George Clooney. Paying $700 million plus a $300-million earn-out over ten years, Clooney's plans to slow down his acting work won't affect his overall wealth in the future.
Seriously, Casamigos gives Diageo a fourth tequila brand to meet the rising demand for the category. Over the past 15 years, tequila has averaged 5.7% annual growth in the number of cases sold. In 2016, Casamigos sold 120,000 cases; it expects to increase that by 42% in 2017.
"We are delighted that the founders will have continued involvement and active participation in the future success of Casamigos," the liquor giant said in a prepared statement in June announcing the deal. "This, combined with the strengths of Diageo, will ensure the continued momentum of the brand in the US as well as realizing the growth opportunity from international expansion."
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If you own Diageo, the news of this acquisition must have put a smile on your face this past summer.
Best Acquisitions of 2017: Gilead (GILD) / Kite Pharma
Source: Gilead Sciences
Gilead Sciences, Inc. (NASDAQ: GILD ) paid $11.9 billion for Kite Pharma in October, its biggest acquisition ever. The deal gives it access to a promising cancer therapy and hopefully makes it less reliant on antiviral treatments, such as its wildly successful Sovaldi , the Hepatitis C drug it obtained when it acquired Pharmasset in 2011 for $10.8 billion.
The company is hoping it can deliver on Kite Pharma like it did Pharmasset.
"This is the one space that there are a lot of new areas to be explored and where we could be a leader as opposed to a late follower," Gilead Chief Executive Officer John Milligan said in a telephone interview. "Ten years from now this will be a significant part of what we do and a significant part of our revenue."
Analysts thought Gilead overpaid on Pharmasset and look how that turned out.
"Gilead said the deal will be neutral, at best, for three years," said David Nierengarten, an analyst at Wedbush Securities. "I can't remember any time someone got acquired and said neutral for three solid years."
When analysts are most skeptical, I'm most bullish.
Earnings might be down in 2017, but given how well GILD stock has performed over the past 20 years - up 21% annually - I'd say its chances with Kite Pharma could be very rewarding.
Best Acquisitions of 2017: Johnson & Johnson (JNJ) / Actelion
Source: Shutterstock
Johnson & Johnson (NYSE: JNJ ) completed one of the year's largest acquisitions in June buying Swiss drugmaker Actelion for $30 billion. As part of the transaction, Actelion spun-off its drug development business into a separate company, Idorsia Ltd (OTCMKTS: IDRSF ), which JNJ could own as much as 22% after the conversion of a convertible note.
Actelion is a leader in the treatment of pulmonary arterial hypertension (PAH). It makes an excellent addition to the existing drugs made by JNJ subsidiary Janssen Pharmaceuticals and it will accelerate JNJ's revenue and earnings growth.
The acquisition is accretive earnings, adding at least 35 cents to JNJ's bottom line in the first year alone. More importantly, the acquisition helps prime the drug pipeline in the years ahead.
"We are convinced that the pharma pipeline remains robust and more meaningful contributions will kick in beyond 2017," Joshua Jennings from Cowen & Co. wrote in a client note in October.
Anytime you can add to your roster of drugs while padding the bottom line, you're doing well.
Even after paying $30 billion for Actelion, JNJ's long-term debt is just 17% of its total assets, considerably lower than many of its competitors.
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This might be the best of the best acquisitions in 2017.
Best Acquisitions of 2017: Alimentation Couche Card (ANCUF) / CST Brands
Source: Shutterstock
Whenever I can put in a plug for one of Canada's great companies, I'll take the opportunity to do so.
In June 2017, Alimentation Couche Tard (OTCMKTS: ANCUF ) closed its acquisition of CST Brands, Inc. , the fourth-largest operator of convenience stores in the U.S., for $4.4 billion . As part of its acquisition, it turned around and sold CST Brands' Canadian operations for CAD$965 million to Parkland Fuel Corp (OTCMKTS: PKIUF ), one of Canada's largest gas station owners.
Couche Tard (hardly anybody says the Alimentation part) got what it wanted: additional convenience store locations in Texas and other parts of the southern U.S. and Parkland, based in Alberta, expanded its network all the way from the Pacific to the Atlantic.
Couche Tard's has become the second-largest operator of convenience stores in North America, buying companies, producing big cost savings, increasing cash flow and quickly paying down the debt used to make the acquisitions in the first place.
As far as serial acquirers go, there's not many who do it better than Couche Tard. CST Brands was an excellent acquisition.
Best Acquisitions of 2017: AT&T (T) / Time Warner (TWX)
Source: Mike Mozart via Flickr
The final acquisition on my ten-best list hasn't officially closed, and there's still a chance it won't get the green light from the Department of Justice. However, as acquisitions go, AT&T Inc.'s (NYSE: T ) proposed $85 billion purchase of Time Warner Inc (NYSE: TWX ) has to be considered the year's best acquisition for the sole reason it's bigger and more complicated than most every acquisition I can think of that occurred in 2017.
As of this writing, the Justice Department has just filed suit in a Washington D.C. federal court to block the deal, suggesting it violates antitrust rules because AT&T will use Time Warner programming to hurt its competitors.
AT&T, as you can imagine, disagrees with the DOJ's take on the merger. It plans to fight the lawsuit in court.
"Today's DOJ lawsuit is a radical and inexplicable departure from decades of antitrust precedent," David McAtee II, AT&T's general counsel, said in a statement. "Vertical mergers like this one are routinely approved because they benefit consumers without removing any competitor from the market. We see no legitimate reason for our merger to be treated differently."
Ironically, the DOJ apparently asked AT&T to sell either CNN or DirecTV to obtain the merger's approval. AT&T is unwilling to meet the DOJ's demand.
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This could get messy.
As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.
The post The 10 Best Acquisitions of 2017 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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But in a year in which there weren't too many blockbusters, Diageo plc (ADR)'s (NYSE: DEO ) purchase of Casamigos - George Clooney was one of the partners - the fastest-growing super-premium tequila brand in the U.S., ranks right up there for consumer interest. Best Acquisitions of 2017: Diageo (DEO) / Casamigos Source: Puamella via Flickr (Modified) I couldn't resist putting a liquor-related transaction in my list of 10 best acquisitions; this is despite the deal being only worth $1 billion. As part of its acquisition, it turned around and sold CST Brands' Canadian operations for CAD$965 million to Parkland Fuel Corp (OTCMKTS: PKIUF ), one of Canada's largest gas station owners.
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Best Acquisitions of 2017: Diageo (DEO) / Casamigos Source: Puamella via Flickr (Modified) I couldn't resist putting a liquor-related transaction in my list of 10 best acquisitions; this is despite the deal being only worth $1 billion. But in a year in which there weren't too many blockbusters, Diageo plc (ADR)'s (NYSE: DEO ) purchase of Casamigos - George Clooney was one of the partners - the fastest-growing super-premium tequila brand in the U.S., ranks right up there for consumer interest. Best Acquisitions of 2017: JAB Holdings / Panera Bread Source: Shutterstock Currently, a private company, JAB Holdings completed its $7.5 billion acquisition of Panera Bread for $7.5 billion in July.
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Best Acquisitions of 2017: Diageo (DEO) / Casamigos Source: Puamella via Flickr (Modified) I couldn't resist putting a liquor-related transaction in my list of 10 best acquisitions; this is despite the deal being only worth $1 billion. But in a year in which there weren't too many blockbusters, Diageo plc (ADR)'s (NYSE: DEO ) purchase of Casamigos - George Clooney was one of the partners - the fastest-growing super-premium tequila brand in the U.S., ranks right up there for consumer interest. Best Acquisitions of 2017: JAB Holdings / Panera Bread Source: Shutterstock Currently, a private company, JAB Holdings completed its $7.5 billion acquisition of Panera Bread for $7.5 billion in July.
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Best Acquisitions of 2017: Diageo (DEO) / Casamigos Source: Puamella via Flickr (Modified) I couldn't resist putting a liquor-related transaction in my list of 10 best acquisitions; this is despite the deal being only worth $1 billion. But in a year in which there weren't too many blockbusters, Diageo plc (ADR)'s (NYSE: DEO ) purchase of Casamigos - George Clooney was one of the partners - the fastest-growing super-premium tequila brand in the U.S., ranks right up there for consumer interest. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In a year in which the S&P 500 has performed tremendously well, mergers and acquisitions deals in the U.S. have been remarkably quiet.
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2017-11-08 00:00:00 UTC
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The Math Shows PID Can Go To $19
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DEO
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https://www.nasdaq.com/articles/math-shows-pid-can-go-19-2017-11-08
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the PowerShares International Dividend Achievers Portfolio ETF (Symbol: PID), we found that the implied analyst target price for the ETF based upon its underlying holdings is $18.55 per unit.
With PID trading at a recent price near $16.00 per unit, that means that analysts see 15.96% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PID's underlying holdings with notable upside to their analyst target prices are Seaspan Corp (Symbol: SSW), Sanofi (Symbol: SNY), and Diageo plc (Symbol: DEO). Although SSW has traded at a recent price of $6.23/share, the average analyst target is 44.46% higher at $9.00/share. Similarly, SNY has 19.57% upside from the recent share price of $45.58 if the average analyst target price of $54.50/share is reached, and analysts on average are expecting DEO to reach a target price of $157.20/share, which is 16.38% above the recent price of $135.07. Below is a twelve month price history chart comparing the stock performance of SSW, SNY, and DEO:
Combined, SSW, SNY, and DEO represent 8.50% of the PowerShares International Dividend Achievers Portfolio ETF. Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is a twelve month price history chart comparing the stock performance of SSW, SNY, and DEO: Combined, SSW, SNY, and DEO represent 8.50% of the PowerShares International Dividend Achievers Portfolio ETF. Three of PID's underlying holdings with notable upside to their analyst target prices are Seaspan Corp (Symbol: SSW), Sanofi (Symbol: SNY), and Diageo plc (Symbol: DEO). Similarly, SNY has 19.57% upside from the recent share price of $45.58 if the average analyst target price of $54.50/share is reached, and analysts on average are expecting DEO to reach a target price of $157.20/share, which is 16.38% above the recent price of $135.07.
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Similarly, SNY has 19.57% upside from the recent share price of $45.58 if the average analyst target price of $54.50/share is reached, and analysts on average are expecting DEO to reach a target price of $157.20/share, which is 16.38% above the recent price of $135.07. Below is a twelve month price history chart comparing the stock performance of SSW, SNY, and DEO: Combined, SSW, SNY, and DEO represent 8.50% of the PowerShares International Dividend Achievers Portfolio ETF. Three of PID's underlying holdings with notable upside to their analyst target prices are Seaspan Corp (Symbol: SSW), Sanofi (Symbol: SNY), and Diageo plc (Symbol: DEO).
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Similarly, SNY has 19.57% upside from the recent share price of $45.58 if the average analyst target price of $54.50/share is reached, and analysts on average are expecting DEO to reach a target price of $157.20/share, which is 16.38% above the recent price of $135.07. Three of PID's underlying holdings with notable upside to their analyst target prices are Seaspan Corp (Symbol: SSW), Sanofi (Symbol: SNY), and Diageo plc (Symbol: DEO). Below is a twelve month price history chart comparing the stock performance of SSW, SNY, and DEO: Combined, SSW, SNY, and DEO represent 8.50% of the PowerShares International Dividend Achievers Portfolio ETF.
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Below is a twelve month price history chart comparing the stock performance of SSW, SNY, and DEO: Combined, SSW, SNY, and DEO represent 8.50% of the PowerShares International Dividend Achievers Portfolio ETF. Three of PID's underlying holdings with notable upside to their analyst target prices are Seaspan Corp (Symbol: SSW), Sanofi (Symbol: SNY), and Diageo plc (Symbol: DEO). Similarly, SNY has 19.57% upside from the recent share price of $45.58 if the average analyst target price of $54.50/share is reached, and analysts on average are expecting DEO to reach a target price of $157.20/share, which is 16.38% above the recent price of $135.07.
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2017-11-03 00:00:00 UTC
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Grandfield & Dodd, Llc Buys Weyerhaeuser Co, US Bancorp, M&T Bank Corp, Sells Emerson ...
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DEO
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https://www.nasdaq.com/articles/grandfield-dodd-llc-buys-weyerhaeuser-co-us-bancorp-mt-bank-corp-sells-emerson-2017-11-03
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Grandfield & Dodd, Llc
New Purchases: DWDP , FLIR , WST ,
Added Positions:WY, USB, MTB, JCI, ALB, GILD, BC, NVS, DIS, DVN,
Reduced Positions:VOD, EMR, AMAT, ENB, ADSK, MSFT, D, AMGN, SNPS, PYPL,
Sold Out:DD, SEE, VSM, WFM,
For the details of GRANDFIELD & DODD, LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GRANDFIELD+%26+DODD%2C+LLC
These are the top 5 holdings of GRANDFIELD & DODD, LLC
Microsoft Corp ( MSFT ) - 487,590 shares, 4.08% of the total portfolio. Shares reduced by 4.87%
Illinois Tool Works Inc ( ITW ) - 171,900 shares, 2.86% of the total portfolio. Shares reduced by 2.41%
Diageo PLC ( DEO ) - 191,506 shares, 2.84% of the total portfolio. Shares added by 1.11%
Analog Devices Inc ( ADI ) - 292,780 shares, 2.83% of the total portfolio. Shares reduced by 0.62%
Hormel Foods Corp ( HRL ) - 727,935 shares, 2.63% of the total portfolio. Shares added by 0.97%
New Purchase: DowDuPont Inc (DWDP)
Grandfield & Dodd, Llc initiated holdings in DowDuPont Inc. The purchase prices were between $63.11 and $70.41, with an estimated average price of $65.88. The stock is now traded at around $71.16. The impact to the portfolio due to this purchase was 0.26%. The holdings were 33,088 shares as of 2017-09-30.
New Purchase: FLIR Systems Inc (FLIR)
Grandfield & Dodd, Llc initiated holdings in FLIR Systems Inc. The purchase prices were between $34.1 and $40.66, with an estimated average price of $37.84. The stock is now traded at around $46.97. The impact to the portfolio due to this purchase was 0.15%. The holdings were 34,885 shares as of 2017-09-30.
New Purchase: West Pharmaceutical Services Inc (WST)
Grandfield & Dodd, Llc initiated holdings in West Pharmaceutical Services Inc. The purchase prices were between $84.54 and $96.75, with an estimated average price of $90.44. The stock is now traded at around $100.95. The impact to the portfolio due to this purchase was 0.02%. The holdings were 2,088 shares as of 2017-09-30.
Added: Weyerhaeuser Co (WY)
Grandfield & Dodd, Llc added to the holdings in Weyerhaeuser Co by 172.22%. The purchase prices were between $31.17 and $34.43, with an estimated average price of $32.83. The stock is now traded at around $35.71. The impact to the portfolio due to this purchase was 0.84%. The holdings were 349,184 shares as of 2017-09-30.
Added: US Bancorp (USB)
Grandfield & Dodd, Llc added to the holdings in US Bancorp by 138.95%. The purchase prices were between $49.86 and $54.15, with an estimated average price of $52.31. The stock is now traded at around $54.65. The impact to the portfolio due to this purchase was 0.6%. The holdings were 171,557 shares as of 2017-09-30.
Added: M&T Bank Corp (MTB)
Grandfield & Dodd, Llc added to the holdings in M&T Bank Corp by 52.20%. The purchase prices were between $142.47 and $166.54, with an estimated average price of $157.11. The stock is now traded at around $168.76. The impact to the portfolio due to this purchase was 0.49%. The holdings were 79,583 shares as of 2017-09-30.
Added: Johnson Controls International PLC (JCI)
Grandfield & Dodd, Llc added to the holdings in Johnson Controls International PLC by 26.70%. The purchase prices were between $36.89 and $44.19, with an estimated average price of $40.49. The stock is now traded at around $40.68. The impact to the portfolio due to this purchase was 0.42%. The holdings were 440,783 shares as of 2017-09-30.
Added: Albemarle Corp (ALB)
Grandfield & Dodd, Llc added to the holdings in Albemarle Corp by 31.44%. The purchase prices were between $106.03 and $136.31, with an estimated average price of $118.69. The stock is now traded at around $140.04. The impact to the portfolio due to this purchase was 0.28%. The holdings were 76,870 shares as of 2017-09-30.
Added: Gilead Sciences Inc (GILD)
Grandfield & Dodd, Llc added to the holdings in Gilead Sciences Inc by 25.68%. The purchase prices were between $69.25 and $85.47, with an estimated average price of $76.3. The stock is now traded at around $73.46. The impact to the portfolio due to this purchase was 0.24%. The holdings were 128,070 shares as of 2017-09-30.
Sold Out: E.I. du Pont de Nemours & Co (DD)
Grandfield & Dodd, Llc sold out the holdings in E.I. du Pont de Nemours & Co. The sale prices were between $80.81 and $85.49, with an estimated average price of $82.78.
Sold Out: Sealed Air Corp (SEE)
Grandfield & Dodd, Llc sold out the holdings in Sealed Air Corp. The sale prices were between $41.72 and $46.12, with an estimated average price of $44.33.
Sold Out: Versum Materials Inc (VSM)
Grandfield & Dodd, Llc sold out the holdings in Versum Materials Inc. The sale prices were between $31.35 and $38.51, with an estimated average price of $35.67.
Sold Out: Whole Foods Market Inc (WFM)
Grandfield & Dodd, Llc sold out the holdings in Whole Foods Market Inc. The sale prices were between $41.67 and $42.1, with an estimated average price of $41.83.
Reduced: Vodafone Group PLC (VOD)
Grandfield & Dodd, Llc reduced to the holdings in Vodafone Group PLC by 24.9%. The sale prices were between $28.06 and $29.9, with an estimated average price of $28.94. The stock is now traded at around $29.10. The impact to the portfolio due to this sale was -0.43%. Grandfield & Dodd, Llc still held 380,604 shares as of 2017-09-30.
Reduced: Emerson Electric Co (EMR)
Grandfield & Dodd, Llc reduced to the holdings in Emerson Electric Co by 69.24%. The sale prices were between $58 and $63.89, with an estimated average price of $60.27. The stock is now traded at around $64.10. The impact to the portfolio due to this sale was -0.43%. Grandfield & Dodd, Llc still held 27,167 shares as of 2017-09-30.
Reduced: Enbridge Inc (ENB)
Grandfield & Dodd, Llc reduced to the holdings in Enbridge Inc by 86.22%. The sale prices were between $39.13 and $41.9, with an estimated average price of $40.64. The stock is now traded at around $36.69. The impact to the portfolio due to this sale was -0.29%. Grandfield & Dodd, Llc still held 10,056 shares as of 2017-09-30.
Reduced: Dominion Energy Inc (D)
Grandfield & Dodd, Llc reduced to the holdings in Dominion Energy Inc by 46.31%. The sale prices were between $75.6 and $80.24, with an estimated average price of $77.75. The stock is now traded at around $80.67. The impact to the portfolio due to this sale was -0.16%. Grandfield & Dodd, Llc still held 20,883 shares as of 2017-09-30.
Reduced: TripAdvisor Inc (TRIP)
Grandfield & Dodd, Llc reduced to the holdings in TripAdvisor Inc by 47.26%. The sale prices were between $36.19 and $45.81, with an estimated average price of $40.59. The stock is now traded at around $38.88. The impact to the portfolio due to this sale was -0.06%. Grandfield & Dodd, Llc still held 14,385 shares as of 2017-09-30.
Reduced: Statoil ASA (STO)
Grandfield & Dodd, Llc reduced to the holdings in Statoil ASA by 42.9%. The sale prices were between $16.32 and $20.37, with an estimated average price of $18.42. The stock is now traded at around $20.32. The impact to the portfolio due to this sale was -0.02%. Grandfield & Dodd, Llc still held 12,693 shares as of 2017-09-30.
Warning! GuruFocus has detected 5 Warning Sign with WY. Click here to check it out.
WY 15-Year Financial Data
The intrinsic value of WY
Peter Lynch Chart of WY
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This article first appeared on GuruFocus .
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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Shares reduced by 2.41% Diageo PLC ( DEO ) - 191,506 shares, 2.84% of the total portfolio. Grandfield & Dodd, Llc New Purchases: DWDP , FLIR , WST , Added Positions:WY, USB, MTB, JCI, ALB, GILD, BC, NVS, DIS, DVN, Reduced Positions:VOD, EMR, AMAT, ENB, ADSK, MSFT, D, AMGN, SNPS, PYPL, Sold Out:DD, SEE, VSM, WFM, For the details of GRANDFIELD & DODD, LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GRANDFIELD+%26+DODD%2C+LLC These are the top 5 holdings of GRANDFIELD & DODD, LLC Microsoft Corp ( MSFT ) - 487,590 shares, 4.08% of the total portfolio. Added: Johnson Controls International PLC (JCI) Grandfield & Dodd, Llc added to the holdings in Johnson Controls International PLC by 26.70%.
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Shares reduced by 2.41% Diageo PLC ( DEO ) - 191,506 shares, 2.84% of the total portfolio. Grandfield & Dodd, Llc New Purchases: DWDP , FLIR , WST , Added Positions:WY, USB, MTB, JCI, ALB, GILD, BC, NVS, DIS, DVN, Reduced Positions:VOD, EMR, AMAT, ENB, ADSK, MSFT, D, AMGN, SNPS, PYPL, Sold Out:DD, SEE, VSM, WFM, For the details of GRANDFIELD & DODD, LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GRANDFIELD+%26+DODD%2C+LLC These are the top 5 holdings of GRANDFIELD & DODD, LLC Microsoft Corp ( MSFT ) - 487,590 shares, 4.08% of the total portfolio. New Purchase: West Pharmaceutical Services Inc (WST) Grandfield & Dodd, Llc initiated holdings in West Pharmaceutical Services Inc.
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Shares reduced by 2.41% Diageo PLC ( DEO ) - 191,506 shares, 2.84% of the total portfolio. Grandfield & Dodd, Llc New Purchases: DWDP , FLIR , WST , Added Positions:WY, USB, MTB, JCI, ALB, GILD, BC, NVS, DIS, DVN, Reduced Positions:VOD, EMR, AMAT, ENB, ADSK, MSFT, D, AMGN, SNPS, PYPL, Sold Out:DD, SEE, VSM, WFM, For the details of GRANDFIELD & DODD, LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GRANDFIELD+%26+DODD%2C+LLC These are the top 5 holdings of GRANDFIELD & DODD, LLC Microsoft Corp ( MSFT ) - 487,590 shares, 4.08% of the total portfolio. Shares added by 0.97% New Purchase: DowDuPont Inc (DWDP) Grandfield & Dodd, Llc initiated holdings in DowDuPont Inc.
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Shares reduced by 2.41% Diageo PLC ( DEO ) - 191,506 shares, 2.84% of the total portfolio. Shares added by 0.97% New Purchase: DowDuPont Inc (DWDP) Grandfield & Dodd, Llc initiated holdings in DowDuPont Inc. Grandfield & Dodd, Llc still held 380,604 shares as of 2017-09-30.
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c79ac65f-1064-49e9-a590-2d4f2f9fe6be
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727921.0
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2017-11-01 00:00:00 UTC
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Boston Beer Company Earns Technical Rating Upgrade
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DEO
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https://www.nasdaq.com/articles/boston-beer-company-earns-technical-rating-upgrade-2017-11-01
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nan
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nan
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On Wednesday, Boston Beer Company ( SAM ) got a positive adjustment to its Relative Strength ( RS ) Rating , from 69 to 76.
[ibd-display-video id=2102289 width=50 float=left autostart=true] IBD's unique rating tracks share price action with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks holds up against all the other stocks in our database.
History shows that the market's biggest winners tend to have an RS Rating of at least 80 as they begin their largest runs. See if Boston Beer Company can continue to show renewed price strength and hit that benchmark.
Looking For The Best Stocks To Buy And Watch? Start Here
Boston Beer Company is now considered extended and out of buy range after clearing a 165.90 buy point in a first-stage cup without handle . See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
The company posted 10% EPS growth in its most recent report, while sales growth came in at -3%.
The company earns the No. 6 rank among its peers in the Beverages-Alcoholic industry group. Constellation Brands ( STZ ), Constellation Brands (STZB) and Diageo ( DEO ) are among the top 5 highly rated stocks within the group.
RELATED:
Which Stocks Are Showing Improved Technical Action?
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
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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[ibd-display-video id=2102289 width=50 float=left autostart=true] IBD's unique rating tracks share price action with a 1 (worst) to 99 (best) score. Constellation Brands ( STZ ), Constellation Brands (STZB) and Diageo ( DEO ) are among the top 5 highly rated stocks within the group. On Wednesday, Boston Beer Company ( SAM ) got a positive adjustment to its Relative Strength ( RS ) Rating , from 69 to 76.
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[ibd-display-video id=2102289 width=50 float=left autostart=true] IBD's unique rating tracks share price action with a 1 (worst) to 99 (best) score. Constellation Brands ( STZ ), Constellation Brands (STZB) and Diageo ( DEO ) are among the top 5 highly rated stocks within the group. On Wednesday, Boston Beer Company ( SAM ) got a positive adjustment to its Relative Strength ( RS ) Rating , from 69 to 76.
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Constellation Brands ( STZ ), Constellation Brands (STZB) and Diageo ( DEO ) are among the top 5 highly rated stocks within the group. [ibd-display-video id=2102289 width=50 float=left autostart=true] IBD's unique rating tracks share price action with a 1 (worst) to 99 (best) score. On Wednesday, Boston Beer Company ( SAM ) got a positive adjustment to its Relative Strength ( RS ) Rating , from 69 to 76.
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[ibd-display-video id=2102289 width=50 float=left autostart=true] IBD's unique rating tracks share price action with a 1 (worst) to 99 (best) score. Constellation Brands ( STZ ), Constellation Brands (STZB) and Diageo ( DEO ) are among the top 5 highly rated stocks within the group. On Wednesday, Boston Beer Company ( SAM ) got a positive adjustment to its Relative Strength ( RS ) Rating , from 69 to 76.
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78b80bf4-b19d-4b57-ac14-d3707d1f7500
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727922.0
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2017-10-27 00:00:00 UTC
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Tom Gayner Buys Goldman Sachs Group Inc, Tyson Foods Inc, Albemarle Corp, Sells Exxon Mobil ...
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DEO
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https://www.nasdaq.com/articles/tom-gayner-buys-goldman-sachs-group-inc-tyson-foods-inc-albemarle-corp-sells-exxon-mobil
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nan
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nan
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Tom Gayner
New Purchases: IFF , GT , MCHP ,
Added Positions:GOOG, AMZN, GS, BA, BX, APO, BAM, KKR, WSO, SRCL,
Reduced Positions:XOM,
Sold Out:CLB, NXPI,
For the details of Tom Gayner's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Tom+Gayner
These are the top 5 holdings of Tom Gayner
CarMax Inc ( KMX ) - 4,913,070 shares, 7.42% of the total portfolio.
Berkshire Hathaway Inc (BRK.A) - 1,088 shares, 5.95% of the total portfolio.
Berkshire Hathaway Inc (BRK.B) - 1,511,607 shares, 5.52% of the total portfolio.
Brookfield Asset Management Inc ( BAM ) - 5,435,821 shares, 4.47% of the total portfolio. Shares added by 1.40%
Diageo PLC ( DEO ) - 1,349,800 shares, 3.55% of the total portfolio. Shares added by 0.15%
New Purchase: International Flavors & Fragrances Inc ( IFF )
Tom Gayner initiated holdings in International Flavors & Fragrances Inc. The purchase prices were between $131.69 and $145.01, with an estimated average price of $137.16. The stock is now traded at around $148.56. The impact to the portfolio due to this purchase was 0.02%. The holdings were 8,000 shares as of 2017-09-30.
New Purchase: Microchip Technology Inc ( MCHP )
Tom Gayner initiated holdings in Microchip Technology Inc. The purchase prices were between $75.81 and $91.01, with an estimated average price of $83.62. The stock is now traded at around $94.72. The impact to the portfolio due to this purchase was 0.01%. The holdings were 8,000 shares as of 2017-09-30.
New Purchase: Goodyear Tire & Rubber Co (GT)
Tom Gayner initiated holdings in Goodyear Tire & Rubber Co. The purchase prices were between $29.74 and $36.31, with an estimated average price of $32.52. The stock is now traded at around $32.18. The impact to the portfolio due to this purchase was 0.01%. The holdings were 20,000 shares as of 2017-09-30.
Added: Goldman Sachs Group Inc (GS)
Tom Gayner added to the holdings in Goldman Sachs Group Inc by 128.65%. The purchase prices were between $215.84 and $237.19, with an estimated average price of $225.59. The stock is now traded at around $241.71. The impact to the portfolio due to this purchase was 0.1%. The holdings were 39,100 shares as of 2017-09-30.
Added: Tyson Foods Inc (TSN)
Tom Gayner added to the holdings in Tyson Foods Inc by 25.35%. The purchase prices were between $58.58 and $67.41, with an estimated average price of $63.78. The stock is now traded at around $71.04. The impact to the portfolio due to this purchase was 0.05%. The holdings were 178,000 shares as of 2017-09-30.
Added: Dollar Tree Inc (DLTR)
Tom Gayner added to the holdings in Dollar Tree Inc by 41.94%. The purchase prices were between $66.39 and $85.68, with an estimated average price of $76.03. The stock is now traded at around $93.21. The impact to the portfolio due to this purchase was 0.04%. The holdings were 88,000 shares as of 2017-09-30.
Added: Albemarle Corp (ALB)
Tom Gayner added to the holdings in Albemarle Corp by 25.86%. The purchase prices were between $106.03 and $136.31, with an estimated average price of $118.69. The stock is now traded at around $139.08. The impact to the portfolio due to this purchase was 0.04%. The holdings were 73,000 shares as of 2017-09-30.
Added: McKesson Corp (MCK)
Tom Gayner added to the holdings in McKesson Corp by 72.85%. The purchase prices were between $146 and $168.12, with an estimated average price of $156.11. The stock is now traded at around $135.62. The impact to the portfolio due to this purchase was 0.03%. The holdings were 26,100 shares as of 2017-09-30.
Added: General Electric Co (GE)
Tom Gayner added to the holdings in General Electric Co by 137.50%. The purchase prices were between $23.72 and $27.45, with an estimated average price of $25.26. The stock is now traded at around $20.79. The impact to the portfolio due to this purchase was 0.03%. The holdings were 95,000 shares as of 2017-09-30.
Sold Out: Core Laboratories NV (CLB)
Tom Gayner sold out the holdings in Core Laboratories NV. The sale prices were between $87.47 and $109.17, with an estimated average price of $96.92.
Sold Out: NXP Semiconductors NV (NXPI)
Tom Gayner sold out the holdings in NXP Semiconductors NV. The sale prices were between $109.11 and $113.09, with an estimated average price of $111.48.
Reduced: Exxon Mobil Corp (XOM)
Tom Gayner reduced to the holdings in Exxon Mobil Corp by 42.34%. The sale prices were between $76.1 and $82.19, with an estimated average price of $79.4. The stock is now traded at around $83.71. The impact to the portfolio due to this sale was -0.69%. Tom Gayner still held 544,800 shares as of 2017-09-30.
Warning! GuruFocus has detected 4 Warning Signs with GS. Click here to check it out.
GS 15-Year Financial Data
The intrinsic value of GS
Peter Lynch Chart of GS
Premium Members
This article first appeared on GuruFocus .
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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Shares added by 1.40% Diageo PLC ( DEO ) - 1,349,800 shares, 3.55% of the total portfolio. Tom Gayner New Purchases: IFF , GT , MCHP , Added Positions:GOOG, AMZN, GS, BA, BX, APO, BAM, KKR, WSO, SRCL, Reduced Positions:XOM, Sold Out:CLB, NXPI, For the details of Tom Gayner's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Tom+Gayner These are the top 5 holdings of Tom Gayner CarMax Inc ( KMX ) - 4,913,070 shares, 7.42% of the total portfolio. Brookfield Asset Management Inc ( BAM ) - 5,435,821 shares, 4.47% of the total portfolio.
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Shares added by 1.40% Diageo PLC ( DEO ) - 1,349,800 shares, 3.55% of the total portfolio. Tom Gayner New Purchases: IFF , GT , MCHP , Added Positions:GOOG, AMZN, GS, BA, BX, APO, BAM, KKR, WSO, SRCL, Reduced Positions:XOM, Sold Out:CLB, NXPI, For the details of Tom Gayner's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Tom+Gayner These are the top 5 holdings of Tom Gayner CarMax Inc ( KMX ) - 4,913,070 shares, 7.42% of the total portfolio. Shares added by 0.15% New Purchase: International Flavors & Fragrances Inc ( IFF ) Tom Gayner initiated holdings in International Flavors & Fragrances Inc.
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Shares added by 1.40% Diageo PLC ( DEO ) - 1,349,800 shares, 3.55% of the total portfolio. Tom Gayner New Purchases: IFF , GT , MCHP , Added Positions:GOOG, AMZN, GS, BA, BX, APO, BAM, KKR, WSO, SRCL, Reduced Positions:XOM, Sold Out:CLB, NXPI, For the details of Tom Gayner's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Tom+Gayner These are the top 5 holdings of Tom Gayner CarMax Inc ( KMX ) - 4,913,070 shares, 7.42% of the total portfolio. Shares added by 0.15% New Purchase: International Flavors & Fragrances Inc ( IFF ) Tom Gayner initiated holdings in International Flavors & Fragrances Inc.
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Shares added by 1.40% Diageo PLC ( DEO ) - 1,349,800 shares, 3.55% of the total portfolio. Tom Gayner New Purchases: IFF , GT , MCHP , Added Positions:GOOG, AMZN, GS, BA, BX, APO, BAM, KKR, WSO, SRCL, Reduced Positions:XOM, Sold Out:CLB, NXPI, For the details of Tom Gayner's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Tom+Gayner These are the top 5 holdings of Tom Gayner CarMax Inc ( KMX ) - 4,913,070 shares, 7.42% of the total portfolio. Berkshire Hathaway Inc (BRK.A) - 1,088 shares, 5.95% of the total portfolio.
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55e44f48-4780-4d21-8593-4adeb3ead0eb
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727923.0
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2017-10-25 00:00:00 UTC
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How Diageo Makes Most of Its Money
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DEO
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https://www.nasdaq.com/articles/how-diageo-makes-most-its-money-2017-10-25
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nan
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nan
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"Do you have Johnnie Walker in a bottle? Well, you better let him out!"
That old kids prank is a testament to just how widespread the fame of Johnnie Walker scotch whiskey is. In fact, it is the No. 1 scotch whiskey in the world and it's also where Diageo (NYSE: DEO) makes most of its money.
Liquid sunshine
One of the world's largest distillers, Diageo garnered a lot of press this summer for spending upwards of $1 billion to buy George Clooney's tiny tequila brand , but tequila is actually one of its smallest segments.
The biggest source of revenue for this giant of the spirits world is scotch whiskey, which represents a quarter of Diageo's $15.9 billion in annual sales. Johnnie Walker is the premier label, but the distiller also owns Buchanan's, which is the second most popular scotch in the U.S.; Black & White, the 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 leading positions in various markets around the world.
In an industry where Brown-Forman 's (NYSE: BF-A) (NYSE: BF-B) Jack Daniel's is considered the premier American whiskey, it might be worthwhile to distinguish between the two. Actually, three, four, or five. That's because there's also bourbon, rye, and Irish whiskey, all of which are closely related.
A rose by any other name
All whiskey, regardless of how you spell it , is an alcoholic beverage distilled from grain and depending upon the type, has special requirements on how much alcohol by volume it has after fermentation.
Scotch whisky, as you might guess, has to be made in Scotland and was originally only made from malted barley, but has since been expanded to also use unmalted wheat and rye. It is aged in oak barrels for at least three years.
Like scotch, bourbon can only be called bourbon if it's made in the U.S., and then primarily in Kentucky, but instead of barley, it must contain at least 51% corn. It has no minimum aging requirements, but to be called straight bourbon it must be aged for no less than two years.
Tennessee whiskey like Jack Daniel's is actually bourbon , but then it is put through what's known as the Lincoln County process (named after Lincoln County, Tenn. where it's made) where it's put through a charcoal filter. In short, all whiskey is bourbon, but not all bourbons are whiskey.
Rye whiskey is a product of Canada and though it doesn't have to contain mostly rye, it has to have at least some. Diageo's Bulleit is the world's best-selling rye whiskey while its Crown Royal (a blend of rye, corn, and barley), is the No. 1 Canadian whiskey.
Last, Irish whiskey has pretty much only one requirement, that it be aged in Ireland; it can contain almost any type of grain, but it does have to be aged in wooden oak casks for at least three years. Diageo sold off its 400-year old Bushmill's brand in a deal with Casa Cuervo to acquire Don Julio tequila; now it's launching a new Irish whiskey because of it rising in popularity once more.
An acquired taste
There's a good reason so much emphasis is placed on each category. The so-called "browns" of the spirits world are enjoying renewed popularity, with the Distilled Spirits Council of the U.S. (DISCUS) saying that 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%.
Scotch sales actually ticked down last year, but that's only because the lower end of the scale has fallen. Much like the rest of the liquor industry, high-end and super-premium blends have been soaring, which explains why Bulleit was called out by Diageo as its top performer, reporting a 43% jump in net sales and 23% organic sales gains.
Yet Diageo obviously isn't a one-trick pony. Beer is actually its second largest contributor to revenues. Guinness, which is the No. 1 stout in the world, saw 18% net sales gains last year.
Vodka comes in third place for the distiller thanks to both Smirnoff and Ciroc, but vodka has fallen out of favor lately after years of booming sales , and it shows just how drinkers' tastes change over time.
A tequila sunrise
It may soon be that whiskey's time in the sun will end too, which explains why Diageo made such a big bet on Clooney's Casamigos. It's still likely the distiller overpaid for the brand , but tequila sales are on a torrid pace higher.
DISCUS says tequila volumes in the U.S. grew from 795,000 9-liter cases in 2006 to 1.6 million cases last year, or about 105% growth. Super-premium tequila sales grew even faster, rising 142% in the same period, but they were coming out of relative obscurity in 2002 to sell 4.5 million cases last year, putting them at about 40% of the sales of value and premium tequilas. Diageo's Don Julio has quickly become one of its top sellers.
The takeaway from the foregoing is that Diageo has a massive, global portfolio of top-ranked brands spanning whiskey (and whisky), beer, vodka, rum, gin, and tequila. Take a look in your liquor cabinet, and it's probable you have at least one Diageo brand in there. That's something worth toasting for Diageo investors.
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*Stock Advisor returns as of October 9, 2017
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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1 scotch whiskey in the world and it's also where Diageo (NYSE: DEO) makes most of its money. Johnnie Walker is the premier label, but the distiller also owns Buchanan's, which is the second most popular scotch in the U.S.; Black & White, the top seller in Brazil; and J&B, the No. Diageo sold off its 400-year old Bushmill's brand in a deal with Casa Cuervo to acquire Don Julio tequila; now it's launching a new Irish whiskey because of it rising in popularity once more.
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1 scotch whiskey in the world and it's also where Diageo (NYSE: DEO) makes most of its money. The so-called "browns" of the spirits world are enjoying renewed popularity, with the Distilled Spirits Council of the U.S. (DISCUS) saying that 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. Much like the rest of the liquor industry, high-end and super-premium blends have been soaring, which explains why Bulleit was called out by Diageo as its top performer, reporting a 43% jump in net sales and 23% organic sales gains.
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1 scotch whiskey in the world and it's also where Diageo (NYSE: DEO) makes most of its money. The biggest source of revenue for this giant of the spirits world is scotch whiskey, which represents a quarter of Diageo's $15.9 billion in annual sales. Diageo sold off its 400-year old Bushmill's brand in a deal with Casa Cuervo to acquire Don Julio tequila; now it's launching a new Irish whiskey because of it rising in popularity once more.
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1 scotch whiskey in the world and it's also where Diageo (NYSE: DEO) makes most of its money. Last, Irish whiskey has pretty much only one requirement, that it be aged in Ireland; it can contain almost any type of grain, but it does have to be aged in wooden oak casks for at least three years. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.
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fd9f85ee-eabc-47c6-ae81-fbf334fef1ad
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727924.0
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2017-10-24 00:00:00 UTC
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Boston Beer Company Shows Market Leadership With Jump To 84 RS Rating
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DEO
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https://www.nasdaq.com/articles/boston-beer-company-shows-market-leadership-jump-84-rs-rating-2017-10-24
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One important metric to look for in a stock is an 80 or higher Relative Strength Rating . Boston Beer Company ( SAM ) cleared that benchmark Tuesday, with a jump from 80 to 84 Tuesday.
[ibd-display-video id=2368044 width=50 float=left autostart=true] IBD's proprietary rating identifies market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the trailing 52 weeks compares to all the other stocks in our database.
Over 100 years of market history reveals that the market's biggest winners tend to have an RS Rating of at least 80 in the early stages of their moves.
See How IBD Helps You Make More In Stocks
Boston Beer Company has risen more than 5% past a 165.90 entry in a first-stage cup without handle , meaning it's now out of a proper buy range. Look for the stock to create a new buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
Earnings grew 14% last quarter, up from -68% in the prior report. Revenue also increased, from -14% to 1%.
The company holds the No. 6 rank among its peers in the Beverages-Alcoholic industry group. Constellation Brands ( STZ ), Constellation Brands (STZB) and Diageo ( DEO ) are among the top 5 highly rated stocks within the group.
RELATED:
IBD Stock Rating Upgrades: Rising Relative Strength
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
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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[ibd-display-video id=2368044 width=50 float=left autostart=true] IBD's proprietary rating identifies market leadership with a 1 (worst) to 99 (best) score. Constellation Brands ( STZ ), Constellation Brands (STZB) and Diageo ( DEO ) are among the top 5 highly rated stocks within the group. See How IBD Helps You Make More In Stocks Boston Beer Company has risen more than 5% past a 165.90 entry in a first-stage cup without handle , meaning it's now out of a proper buy range.
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[ibd-display-video id=2368044 width=50 float=left autostart=true] IBD's proprietary rating identifies market leadership with a 1 (worst) to 99 (best) score. Constellation Brands ( STZ ), Constellation Brands (STZB) and Diageo ( DEO ) are among the top 5 highly rated stocks within the group. See How IBD Helps You Make More In Stocks Boston Beer Company has risen more than 5% past a 165.90 entry in a first-stage cup without handle , meaning it's now out of a proper buy range.
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[ibd-display-video id=2368044 width=50 float=left autostart=true] IBD's proprietary rating identifies market leadership with a 1 (worst) to 99 (best) score. Constellation Brands ( STZ ), Constellation Brands (STZB) and Diageo ( DEO ) are among the top 5 highly rated stocks within the group. See How IBD Helps You Make More In Stocks Boston Beer Company has risen more than 5% past a 165.90 entry in a first-stage cup without handle , meaning it's now out of a proper buy range.
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[ibd-display-video id=2368044 width=50 float=left autostart=true] IBD's proprietary rating identifies market leadership with a 1 (worst) to 99 (best) score. Constellation Brands ( STZ ), Constellation Brands (STZB) and Diageo ( DEO ) are among the top 5 highly rated stocks within the group. Boston Beer Company ( SAM ) cleared that benchmark Tuesday, with a jump from 80 to 84 Tuesday.
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3fa5c472-5d1f-4737-b581-224549156482
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727925.0
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2017-10-19 00:00:00 UTC
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Lincoln Capital LLC Buys T. Rowe Price Group Inc, Sells United Technologies Corp, E.I. ...
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DEO
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https://www.nasdaq.com/articles/lincoln-capital-llc-buys-t-rowe-price-group-inc-sells-united-technologies-corp-ei-2017-10
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Lincoln Capital LLC
New Purchases: TROW ,
Added Positions: GOOGL , VWO , VNQ,
Reduced Positions:CFX, UTX, UNP, COTY, SABR, KO, DHR, JNJ, HD, PG,
Sold Out:DD, NEON,
For the details of Lincoln Capital LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Lincoln+Capital+LLC
These are the top 5 holdings of Lincoln Capital LLC
Markel Corp ( MKL ) - 13,013 shares, 8.58% of the total portfolio. Shares added by 0.08%
Berkshire Hathaway Inc (BRK.B) - 62,023 shares, 7.02% of the total portfolio. Shares reduced by 0.53%
Mastercard Inc ( MA ) - 73,154 shares, 6.38% of the total portfolio. Shares reduced by 0.13%
Diageo PLC ( DEO ) - 64,468 shares, 5.26% of the total portfolio. Shares reduced by 0.83%
Starbucks Corp ( SBUX ) - 153,226 shares, 5.08% of the total portfolio. Shares reduced by 0.05%
New Purchase: T. Rowe Price Group Inc ( TROW )
Lincoln Capital LLC initiated holdings in T. Rowe Price Group Inc. The purchase prices were between $74.23 and $90.13, with an estimated average price of $82.46. The stock is now traded at around $95.40. The impact to the portfolio due to this purchase was 0.13%. The holdings were 2,406 shares as of 2017-09-30.
Sold Out: E.I. du Pont de Nemours & Co (DD)
Lincoln Capital LLC sold out the holdings in E.I. du Pont de Nemours & Co. The sale prices were between $80.81 and $85.49, with an estimated average price of $82.78.
Sold Out: Neonode Inc (NEON)
Lincoln Capital LLC sold out the holdings in Neonode Inc. The sale prices were between $1 and $1.34, with an estimated average price of $1.15.
Reduced: United Technologies Corp (UTX)
Lincoln Capital LLC reduced to the holdings in United Technologies Corp by 23.65%. The sale prices were between $109.55 and $123.71, with an estimated average price of $117.64. The stock is now traded at around $118.70. The impact to the portfolio due to this sale was -0.29%. Lincoln Capital LLC still held 12,173 shares as of 2017-09-30.
Warning! GuruFocus has detected 4 Warning Sign with TROW. Click here to check it out.
TROW 15-Year Financial Data
The intrinsic value of TROW
Peter Lynch Chart of TROW
Premium Members
This article first appeared on GuruFocus .
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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Shares reduced by 0.13% Diageo PLC ( DEO ) - 64,468 shares, 5.26% of the total portfolio. Lincoln Capital LLC New Purchases: TROW , Added Positions: GOOGL , VWO , VNQ, Reduced Positions:CFX, UTX, UNP, COTY, SABR, KO, DHR, JNJ, HD, PG, Sold Out:DD, NEON, For the details of Lincoln Capital LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Lincoln+Capital+LLC These are the top 5 holdings of Lincoln Capital LLC Markel Corp ( MKL ) - 13,013 shares, 8.58% of the total portfolio. Shares reduced by 0.05% New Purchase: T. Rowe Price Group Inc ( TROW ) Lincoln Capital LLC initiated holdings in T. Rowe Price Group Inc.
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Shares reduced by 0.13% Diageo PLC ( DEO ) - 64,468 shares, 5.26% of the total portfolio. Shares reduced by 0.05% New Purchase: T. Rowe Price Group Inc ( TROW ) Lincoln Capital LLC initiated holdings in T. Rowe Price Group Inc. du Pont de Nemours & Co (DD) Lincoln Capital LLC sold out the holdings in E.I.
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Shares reduced by 0.13% Diageo PLC ( DEO ) - 64,468 shares, 5.26% of the total portfolio. Lincoln Capital LLC New Purchases: TROW , Added Positions: GOOGL , VWO , VNQ, Reduced Positions:CFX, UTX, UNP, COTY, SABR, KO, DHR, JNJ, HD, PG, Sold Out:DD, NEON, For the details of Lincoln Capital LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Lincoln+Capital+LLC These are the top 5 holdings of Lincoln Capital LLC Markel Corp ( MKL ) - 13,013 shares, 8.58% of the total portfolio. Shares reduced by 0.05% New Purchase: T. Rowe Price Group Inc ( TROW ) Lincoln Capital LLC initiated holdings in T. Rowe Price Group Inc.
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Shares reduced by 0.13% Diageo PLC ( DEO ) - 64,468 shares, 5.26% of the total portfolio. Lincoln Capital LLC New Purchases: TROW , Added Positions: GOOGL , VWO , VNQ, Reduced Positions:CFX, UTX, UNP, COTY, SABR, KO, DHR, JNJ, HD, PG, Sold Out:DD, NEON, For the details of Lincoln Capital LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Lincoln+Capital+LLC These are the top 5 holdings of Lincoln Capital LLC Markel Corp ( MKL ) - 13,013 shares, 8.58% of the total portfolio. Shares reduced by 0.05% New Purchase: T. Rowe Price Group Inc ( TROW ) Lincoln Capital LLC initiated holdings in T. Rowe Price Group Inc.
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cb5dd300-7945-4f1e-96e1-8e02a007e5f5
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727926.0
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2017-10-17 00:00:00 UTC
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Stocks With Rising Relative Price Strength: Constellation Brands
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DEO
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https://www.nasdaq.com/articles/stocks-rising-relative-price-strength-constellation-brands-2017-10-17
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nan
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nan
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Constellation Brands ( STZ ) had its Relative Strength ( RS ) Rating upgraded from 79 to 82 Tuesday.
[ibd-display-video id=449423 width=50 float=left autostart=true] This unique rating measures market leadership by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes.
History reveals that the market's biggest winners typically have an RS Rating north of 80 as they begin their biggest runs.
Looking For The Best Stocks To Buy And Watch? Start Here
Constellation Brands has climbed more than 5% past a 199.99 entry in a second-stage flat base , meaning it's now out of a proper buy zone. Look for the stock to offer a new chance to pick up shares like a three-weeks tight or pullback to the 50-day or 10-week moving average.
The company posted 40% earnings growth last quarter. Sales increased 3%.
The company earns the No. 1 rank among its peers in the Beverages-Alcoholic industry group. Constellation Brands (STZB) and Diageo ( DEO ) are also among the group's highest-rated stocks.
RELATED:
Stocks With Rising Relative Strength Ratings
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
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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[ibd-display-video id=449423 width=50 float=left autostart=true] This unique rating measures market leadership by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes. Constellation Brands (STZB) and Diageo ( DEO ) are also among the group's highest-rated stocks. Constellation Brands ( STZ ) had its Relative Strength ( RS ) Rating upgraded from 79 to 82 Tuesday.
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[ibd-display-video id=449423 width=50 float=left autostart=true] This unique rating measures market leadership by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes. Constellation Brands (STZB) and Diageo ( DEO ) are also among the group's highest-rated stocks. Constellation Brands ( STZ ) had its Relative Strength ( RS ) Rating upgraded from 79 to 82 Tuesday.
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[ibd-display-video id=449423 width=50 float=left autostart=true] This unique rating measures market leadership by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes. Constellation Brands (STZB) and Diageo ( DEO ) are also among the group's highest-rated stocks. Stocks With Rising Relative Strength Ratings Why Should You Use IBD's Relative Strength Rating?
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Constellation Brands (STZB) and Diageo ( DEO ) are also among the group's highest-rated stocks. [ibd-display-video id=449423 width=50 float=left autostart=true] This unique rating measures market leadership by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes. Constellation Brands ( STZ ) had its Relative Strength ( RS ) Rating upgraded from 79 to 82 Tuesday.
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7dce46bb-e331-4197-b521-ee124788d555
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727927.0
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2017-10-06 00:00:00 UTC
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Stocks To Watch: Constellation Brands Sees RS Rating Rise To 82
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DEO
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https://www.nasdaq.com/articles/stocks-watch-constellation-brands-sees-rs-rating-rise-82-2017-10-06
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nan
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One important metric to look for in a stock is an 80 or higher Relative Strength Rating . Constellation Brands ( STZ ) cleared that benchmark Friday, with a jump from 76 to 82 Friday.
[ibd-display-video id=449423 width=50 float=left autostart=true] This exclusive rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the trailing 52 weeks holds up against all the other stocks in our database.
Over 100 years of market history reveals that the best stocks often have an RS Rating north of 80 in the early stages of their moves.
See How IBD Helps You Make More In Stocks
Constellation Brands is not currently showing a potential buy point. See if the stock goes on to build a promising consolidation that could kick off a new climb.
Constellation Brands reported 40% earnings growth in its most recent report, while sales growth came in at 3%.
Constellation Brands holds the No. 1 rank among its peers in the Beverages-Alcoholic industry group. Diageo ( DEO ) and Brown Forman (BFB) are also among the group's highest-rated stocks.
RELATED:
Stocks With Rising Relative Strength Ratings
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
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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[ibd-display-video id=449423 width=50 float=left autostart=true] This exclusive rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. Diageo ( DEO ) and Brown Forman (BFB) are also among the group's highest-rated stocks. Over 100 years of market history reveals that the best stocks often have an RS Rating north of 80 in the early stages of their moves.
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[ibd-display-video id=449423 width=50 float=left autostart=true] This exclusive rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. Diageo ( DEO ) and Brown Forman (BFB) are also among the group's highest-rated stocks. Stocks With Rising Relative Strength Ratings Why Should You Use IBD's Relative Strength Rating?
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[ibd-display-video id=449423 width=50 float=left autostart=true] This exclusive rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. Diageo ( DEO ) and Brown Forman (BFB) are also among the group's highest-rated stocks. The rating shows how a stock's price performance over the trailing 52 weeks holds up against all the other stocks in our database.
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[ibd-display-video id=449423 width=50 float=left autostart=true] This exclusive rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. Diageo ( DEO ) and Brown Forman (BFB) are also among the group's highest-rated stocks. Constellation Brands holds the No.
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a6761cbb-afad-419a-a9ec-b35d1758040e
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727928.0
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2017-10-05 00:00:00 UTC
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Stocks With Rising Relative Strength: Boston Beer Company
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DEO
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https://www.nasdaq.com/articles/stocks-rising-relative-strength-boston-beer-company-2017-10-05
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nan
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The Relative Strength ( RS ) Rating for Boston Beer Company ( SAM ) headed into a higher percentile Thursday, as it got a lift from 65 to 75.
[ibd-display-video id=449419 width=50 float=left autostart=true] IBD's proprietary RS Rating identifies market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database.
Over 100 years of market history reveals that the best stocks often have an RS Rating of at least 80 as they begin their largest price moves. See if Boston Beer Company can continue to rebound and hit that benchmark.
Looking For The Best Stocks To Buy And Watch? Start Here
Boston Beer Company is still within a buy zone after clearing a 165.90 buy point in a cup without handle . Once a stock moves 5% or higher beyond the initial entry, it's considered out of buy range.
Earnings grew 14% last quarter, up from -68% in the prior report. Revenue also increased, from -14% to 1%. The next quarterly results are expected on or around Oct. 20.
The company holds the No. 7 rank among its peers in the Beverages-Alcoholic industry group. Constellation Brands ( STZ ), Diageo ( DEO ) and Constellation Brands (STZB) are among the top 5 highly rated stocks within the group.
RELATED:
Which Stocks Are Showing Improved Technical Action?
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
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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[ibd-display-video id=449419 width=50 float=left autostart=true] IBD's proprietary RS Rating identifies market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database. Constellation Brands ( STZ ), Diageo ( DEO ) and Constellation Brands (STZB) are among the top 5 highly rated stocks within the group. The Relative Strength ( RS ) Rating for Boston Beer Company ( SAM ) headed into a higher percentile Thursday, as it got a lift from 65 to 75.
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[ibd-display-video id=449419 width=50 float=left autostart=true] IBD's proprietary RS Rating identifies market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database. Constellation Brands ( STZ ), Diageo ( DEO ) and Constellation Brands (STZB) are among the top 5 highly rated stocks within the group. The Relative Strength ( RS ) Rating for Boston Beer Company ( SAM ) headed into a higher percentile Thursday, as it got a lift from 65 to 75.
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[ibd-display-video id=449419 width=50 float=left autostart=true] IBD's proprietary RS Rating identifies market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database. Constellation Brands ( STZ ), Diageo ( DEO ) and Constellation Brands (STZB) are among the top 5 highly rated stocks within the group. The Relative Strength ( RS ) Rating for Boston Beer Company ( SAM ) headed into a higher percentile Thursday, as it got a lift from 65 to 75.
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[ibd-display-video id=449419 width=50 float=left autostart=true] IBD's proprietary RS Rating identifies market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database. Constellation Brands ( STZ ), Diageo ( DEO ) and Constellation Brands (STZB) are among the top 5 highly rated stocks within the group. See if Boston Beer Company can continue to rebound and hit that benchmark.
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3c922d88-45ac-4bcf-ae75-c39755f36550
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727929.0
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2017-09-30 00:00:00 UTC
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2 Stocks You'll Brag About Owning Someday
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DEO
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https://www.nasdaq.com/articles/2-stocks-youll-brag-about-owning-someday-2017-09-30
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nan
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Buying good companies at good prices and holding on to them for years, if not decades, has proved to be the best way to grow wealthy. So which stocks do we think are great buy-and-hold candidates today? We asked that question of two Motley Fool investors, and they chose IBM (NYSE: IBM) and MGP Ingredients (NASDAQ: MGPI) .
A beaten-down technology titan
Chuck Saletta(International Business Machines): Technology titan IBM has gone through tough times recently. Revenue has been shrinking on an annual basis for the past several years, and it's only thanks to a large, long-term share-buyback program that its per-share earnings have looked reasonably solid.
Financial engineering doesn't make for a compelling long-term investing story. What does is that IBM is reinventing itself and positioning itself for future growth. It's in the process of refreshing its mainframe lineup, with a new offering focused on cybersecurity and cloud computing.
While mainframe computing may not sound like the hottest technology around, a new offering frequently sets off a wave of upgrades. That could provide a temporary reprieve of IBM's revenue declines. Of course, a temporary revenue bump from a mainframe upgrade cycle won't be enough on its own to return it to sustainable growth. Still, it should give the company a bit more runway for its "strategic imperatives" to continue their growth.
At some point, growth in those strategic imperatives should offset declines in IBM's legacy businesses. It may then once again become a stock you'd be willing to brag about owning. Between now and then, a reasonable valuation combined with a rising dividend makes it a stock that deserves consideration for a patient investor's portfolio.
The toastmaster you never heard of
Rich Duprey(MGP Ingredients): Whiskey has arguably never been more popular than it is today, but regardless of what brand you drink, you're probably imbibing the spirit created by one company, MGP Ingredients, a contract distiller that counts among its clients some of the biggest producers, including Diageo (NYSE: DEO) , as well as a bevy of small so-called "craft distilleries." It lives in the shadows of others and prefers to keep it that way.
In the second quarter, MGP experienced a 15% increase in net premium alcohol sales as distilled products rose 6%, which was more than enough to offset the 7% drop in industrial alcohol sales. Industrial alcohol is used in food-grade products such as vinegar, as well as non-food applications such as hair spray. The distilled products are primarily premium bourbon, such as Diageo's super-premium Bulleit bourbon. (It's important to note that all bourbon is whiskey, but not all whiskey is bourbon.)
Global whiskey volumes are expected to grow by 55.2 million 9-liter cases over the next five years, with the U.S. market contributing almost 9 million cases to the total. Analysts expect MGP Ingredients to keep growing earnings by 15% annually over that same time frame, and though its stock is up 56% in the past year, it's probably one you'll still be able to brag about owning in the future.
10 stocks we like better than MGP Ingredients
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 MGP Ingredients 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 September 5, 2017
Chuck Saletta owns shares of IBM and has the following open options positions: short October 2017 $145 calls, long January 2018 $160 calls, short January 2018 $160 puts. 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 toastmaster you never heard of Rich Duprey(MGP Ingredients): Whiskey has arguably never been more popular than it is today, but regardless of what brand you drink, you're probably imbibing the spirit created by one company, MGP Ingredients, a contract distiller that counts among its clients some of the biggest producers, including Diageo (NYSE: DEO) , as well as a bevy of small so-called "craft distilleries." Revenue has been shrinking on an annual basis for the past several years, and it's only thanks to a large, long-term share-buyback program that its per-share earnings have looked reasonably solid. Analysts expect MGP Ingredients to keep growing earnings by 15% annually over that same time frame, and though its stock is up 56% in the past year, it's probably one you'll still be able to brag about owning in the future.
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The toastmaster you never heard of Rich Duprey(MGP Ingredients): Whiskey has arguably never been more popular than it is today, but regardless of what brand you drink, you're probably imbibing the spirit created by one company, MGP Ingredients, a contract distiller that counts among its clients some of the biggest producers, including Diageo (NYSE: DEO) , as well as a bevy of small so-called "craft distilleries." We asked that question of two Motley Fool investors, and they chose IBM (NYSE: IBM) and MGP Ingredients (NASDAQ: MGPI) . A beaten-down technology titan Chuck Saletta(International Business Machines): Technology titan IBM has gone through tough times recently.
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The toastmaster you never heard of Rich Duprey(MGP Ingredients): Whiskey has arguably never been more popular than it is today, but regardless of what brand you drink, you're probably imbibing the spirit created by one company, MGP Ingredients, a contract distiller that counts among its clients some of the biggest producers, including Diageo (NYSE: DEO) , as well as a bevy of small so-called "craft distilleries." We asked that question of two Motley Fool investors, and they chose IBM (NYSE: IBM) and MGP Ingredients (NASDAQ: MGPI) . Analysts expect MGP Ingredients to keep growing earnings by 15% annually over that same time frame, and though its stock is up 56% in the past year, it's probably one you'll still be able to brag about owning in the future.
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The toastmaster you never heard of Rich Duprey(MGP Ingredients): Whiskey has arguably never been more popular than it is today, but regardless of what brand you drink, you're probably imbibing the spirit created by one company, MGP Ingredients, a contract distiller that counts among its clients some of the biggest producers, including Diageo (NYSE: DEO) , as well as a bevy of small so-called "craft distilleries." We asked that question of two Motley Fool investors, and they chose IBM (NYSE: IBM) and MGP Ingredients (NASDAQ: MGPI) . Analysts expect MGP Ingredients to keep growing earnings by 15% annually over that same time frame, and though its stock is up 56% in the past year, it's probably one you'll still be able to brag about owning in the future.
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4fd9c663-d24e-4f07-af25-d6ef5a4d6342
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727930.0
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2017-09-29 00:00:00 UTC
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Found: 3 Stocks Retirees Should Consider Adding
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DEO
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https://www.nasdaq.com/articles/found-3-stocks-retirees-should-consider-adding-2017-09-29
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nan
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nan
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A well-constructed retirement portfolio should help preserve and grow your base of wealth so that you're free to enjoy other pursuits in your non-working years.
To help find stocks that could help retirees meet those goals, we asked three contributing Motley Fool investors to profile a low-risk, dividend-paying company that has what it takes to deliver dependable returns and strengthen your nest egg. Read on to see why they identified Diageo (NYSE: DEO) , 3M (NYSE: MMM) , and McCormick (NYSE: MKC) as stocks that fit the bill.
Tapping into a rich trend
Rich Duprey(Diageo): Like a bartender mixing up the perfect drink, distiller Diageo has concocted what could be considered a perfect portfolio of high-end beers, wine, and spirits that account for two-thirds of its net sales, including Guinness beer, Ciroc vodka, Don Julio tequila, and Bulleit bourbon. Recently, it also bought premium tequila brand Casamigos from actor George Clooney for $700 million, and while that might not have been the most pragmatic choice , it shows Diageo sees the trend toward premiumization continuing well into the future.
As we saw in its fiscal 2017 full-year results, Diageo is still in a significant upswing. For the period, it posted higher-than-expected earnings, and sales rose 15%, ahead of Wall Street's expectations.
While a lot of time is spent looking at how the business is going in the U.S., emerging markets will play an increasingly important role in the future. For example, Diageo owns a 55% stake in Indian distiller United Spirits, giving it control of the biggest distiller in the world's largest whisky market, where its people consume around 200 million cases of whisky annually, or about half of the world's consumption. The Asia Pacific region of which India is the largest component, accounting for 40%, or twice as much as North America, though only 20% of total sales.
A stock that retirees are considering should be able to grow well into the future and possess a bulletproof brand impervious to competitive challenges. Diageo's portfolio of brands offers that shield while giving the distiller the chance to grow worldwide. And with a dividend yield of 3.1%, Diageo makes a good fit in a retiree's own portfolio.
Stick with this iconic innovator
Dan Caplinger(3M): Retirees appreciate conservative stocks that still take advantage of growth opportunities to produce strong long-term results. 3M has been highly successful in using its innovative spirit to come up with new products in a wide range of industries, ranging from the Post-It line of office products to high-end materials for use in the solar energy, healthcare, and industrial fields. By concentrating largely on the materials that manufacturer clients use to make advances in their own fields, 3M is able to stay ahead of the curve while not being vulnerable to trends that turn out to be passing fads.
3M has been able to return its growing profits to shareholders through dividends, and the conglomerate has one of the most impressive track records of dividend growth in the market . If the company makes a dividend increase on schedule next February -- and there's every reason to believe it will -- then 2018 will mark the 60th straight year in which 3M has boosted its dividend. With a current yield of 2.3%, 3M doesn't have a dangerously high yield, but it pays more than the market average, and that's icing on the cake for conservative shareholders who want a solid blue-chip business with a dollop of portfolio income for their living expenses.
A safe way to spice up your portfolio
Keith Noonan (McCormick): Spice-giant McCormick might not look cheap trading at roughly 24 times forward earnings estimates, but with its demonstrated competitive resilience and dedication to returning value to shareholders, it fits the "great company at a fair price" mold.
The company is nearly four times the size of its largest global competitor, has roughly 40% market share in the domestic spices and seasonings category, and is backed by brand strength that should help it continue leveraging pricing power. With sales growing at a solid clip and the company implementing cost-saving initiatives, McCormick appears primed to deliver reliable earnings growth down the line.
Turning to the dividend, McCormick's yield isn't huge at roughly 1.9%, but investors who buy the stock today can be reasonably confident that their shares will have a bigger yield 12 months from now. The company has raised its annual payout for 31 years running and is on track to continue adding to that impressive streak. With the cost of distributing its dividend representing 45% of trailing earnings and 53% of free cash flow, McCormick is already in good shape to deliver substantial payout growth, and earnings momentum should create more room down the line.
In operation since 1889, McCormick has has proven that it can stand the test of time, and a sturdy business and reliable income generation make it a great stock retirement for portfolios.
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 September 5, 2017
Dan Caplinger has no position in any of the stocks mentioned. Keith Noonan has no position in any of the stocks mentioned. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool recommends 3M, Diageo, and McCormick. 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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Read on to see why they identified Diageo (NYSE: DEO) , 3M (NYSE: MMM) , and McCormick (NYSE: MKC) as stocks that fit the bill. To help find stocks that could help retirees meet those goals, we asked three contributing Motley Fool investors to profile a low-risk, dividend-paying company that has what it takes to deliver dependable returns and strengthen your nest egg. By concentrating largely on the materials that manufacturer clients use to make advances in their own fields, 3M is able to stay ahead of the curve while not being vulnerable to trends that turn out to be passing fads.
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Read on to see why they identified Diageo (NYSE: DEO) , 3M (NYSE: MMM) , and McCormick (NYSE: MKC) as stocks that fit the bill. Tapping into a rich trend Rich Duprey(Diageo): Like a bartender mixing up the perfect drink, distiller Diageo has concocted what could be considered a perfect portfolio of high-end beers, wine, and spirits that account for two-thirds of its net sales, including Guinness beer, Ciroc vodka, Don Julio tequila, and Bulleit bourbon. And with a dividend yield of 3.1%, Diageo makes a good fit in a retiree's own portfolio.
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Read on to see why they identified Diageo (NYSE: DEO) , 3M (NYSE: MMM) , and McCormick (NYSE: MKC) as stocks that fit the bill. Tapping into a rich trend Rich Duprey(Diageo): Like a bartender mixing up the perfect drink, distiller Diageo has concocted what could be considered a perfect portfolio of high-end beers, wine, and spirits that account for two-thirds of its net sales, including Guinness beer, Ciroc vodka, Don Julio tequila, and Bulleit bourbon. A safe way to spice up your portfolio Keith Noonan (McCormick): Spice-giant McCormick might not look cheap trading at roughly 24 times forward earnings estimates, but with its demonstrated competitive resilience and dedication to returning value to shareholders, it fits the "great company at a fair price" mold.
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Read on to see why they identified Diageo (NYSE: DEO) , 3M (NYSE: MMM) , and McCormick (NYSE: MKC) as stocks that fit the bill. Diageo's portfolio of brands offers that shield while giving the distiller the chance to grow worldwide. And with a dividend yield of 3.1%, Diageo makes a good fit in a retiree's own portfolio.
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186e44fb-a6eb-4667-b359-25d596591cb4
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727931.0
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2017-09-28 00:00:00 UTC
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Top 3 Stocks for Retirees to Consider
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DEO
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https://www.nasdaq.com/articles/top-3-stocks-retirees-consider-2017-09-28
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nan
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nan
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Though you may have hung up your work gloves and coat for good, it's never a wise idea to retire from investing. You see, we're living longer than ever, which means we need to ensure that we don't outlive our nest eggs. And the best way to do that is to buy high-quality stocks and hang onto them for extended periods of time.
What top stocks should retirees consider buying? That's a question we recently posed to three of our Foolish investors. Their answers? Take a closer look at international tobacco company Philip Morris International (NYSE: PM) , cruise line operator Carnival Corporation (NYSE: CCL) , and liquor giant Diageo plc (NYSE: DEO) .
Your ticket to a "smoking" good dividend
Sean Williams(Philip Morris International): Retirees typically want three things when looking for stocks they can sock away and not worry about: income, capital preservation, and low volatility. You can get all three of those with tobacco-giant Philip Morris International.
The obvious elephant in the room that should be addressed is the crackdown on tobacco by certain global governments. In the U.S., for example, adult smoking rates have plunged from more than 40% in the mid-1960s to just 15.1% as of 2015, according to the Centers for Disease Control and Prevention. While that's a concern for domestic tobacco companies, it isn't for Philip Morris, which operates in more than 180 markets around the world (the U.S. not being one of them).
Even when the company operates in a country that's become tougher on tobacco (e.g., Australia), it has the option of refocusing its efforts on high-growth countries with burgeoning middle classes that are likely to use tobacco products, such as China or India. Philip Morris' global operating diversity is, perhaps, its greatest strength.
If there's a close second in there, it's that the company has six of the world's 15 leading tobacco brands in its portfolio, including Marlboro, which ranks first worldwide. Having top-tier brands gives Philip Morris strong pricing power, and it also allows for word-of-mouth advertising, which keeps it firmly at the top of the pack among international tobacco producers.
In addition to price increases, Philip Morris is counting on innovative alternatives to smoking to drive its long-term growth. For instance, the company's heated tobacco products heat rather than burn tobacco to generate an aerosol that contains nicotine. Through the first-half of 2017, these heated tobacco products comprised less than 3% of total shipment volume for the company, but year-over-year growth in this segment clocked in at 570%!
The icing on the cake for Philip Morris is that it recently announced an increase to its annual dividend of 2.9%, to $4.28 annually. This works out to a superior yield of 3.7%. Retirees looking for income, stability, and capital security should really give Philip Morris International a closer look.
Cruising for fun and profits
Rich Smith(Carnival Corporation): Investing master Peter Lynch put it best (and simplest): " Buy what you know. " That's an investing maxim I try to live by, and it's one reason I think every retiree should consider buying shares in Carnival Corporation.
Easily the biggest cruise-line company in the world, Carnival Corporation controls three times the market share of its nearest rival, Royal Caribbean . If you're planning to take some cruises in retirement, chances are good that more than a few of them will end up being aboard Carnival's cruisers -- giving you a good chance to "get to know" Carnival cruise.
Why would you want to buy Carnival Corporation stock? Well, there's the price to start with. With a P/E ratio of just 17.5, Carnival stock sells for a 30% discount to the average price of stocks on the S&P 500 -- where P/Es average just under 25 times. Carnival stock also pays a nice dividend of more than 2.4%, a never-ending stream of income that you can use to pay for a few of those cruises you plan to take. (In addition 2.4% is about 18.5% more than the average S&P 500 dividend payer.
Best of all, now is a great time to buy into Carnival Corporation stock. Since Hurricane Irma tore through the Caribbean, Carnival stock is down more than 5% on worries vacationers will avoid Caribbean cruises until damage has been repaired in popular ports of call such as the Virgin Islands and St. Martin. Eventually, though, that damage will be repaired, the tourists and the profits will return, and Carnival stock should bounce back -- just in time to help out your retirement portfolio.
Purveyor of spirits with world-class beverage brands
Sean O'Reilly (Diageo plc): Retirement is the time to kick back, spend time with loved ones, and shift to a more conservative investment strategy. Unfortunately, this is easier said than done. Bonds currently yield a pittance, the stock market is at all-time highs, and disruptors like Amazon are upending entire industries -- which brings me to my top pick for retirees to consider today: Diageo plc .
While some may not have heard of Diageo, they'll no doubt have heard of more than a few of Diageo's top brands, which include: Johnnie Walker, Smirnoff, Baileys, Captain Morgan, Tanqueray, and Guinness. The company boasts operations in over 180 countries and employs well over 30,000 employees. Results for the fiscal year ended June 30, 2017 featured net sales up 4.3%, fueled by sales-volume increases of 1.1%. Diageo's business is so strong that it was able to generate free cash flow (FCF) of 2.7 billion British pounds in FY 2017, up 566 million British pounds from 2016.
Looking ahead, Diageo continues to add to its formidable portfolio of alcoholic-beverage brands. Diageo purchased Casamigos , a premium tequila brand made famous by its founder, George Clooney, for $1 billion. Shares currently yield 2.45% and, with earnings per share expected to grow approximately 11.5% through FY 2022 according to analysts polled by S&P Global Market Intelligence , Diageo is a rock-solid stock that retirees should look at closely.
10 stocks we like better than Philip Morris International
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 Philip Morris International 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 September 5, 2017
Rich Smith has no position in any of the stocks mentioned. Sean O'Reilly has no position in any of the stocks mentioned. Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends Carnival 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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Take a closer look at international tobacco company Philip Morris International (NYSE: PM) , cruise line operator Carnival Corporation (NYSE: CCL) , and liquor giant Diageo plc (NYSE: DEO) . Your ticket to a "smoking" good dividend Sean Williams(Philip Morris International): Retirees typically want three things when looking for stocks they can sock away and not worry about: income, capital preservation, and low volatility. Having top-tier brands gives Philip Morris strong pricing power, and it also allows for word-of-mouth advertising, which keeps it firmly at the top of the pack among international tobacco producers.
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Take a closer look at international tobacco company Philip Morris International (NYSE: PM) , cruise line operator Carnival Corporation (NYSE: CCL) , and liquor giant Diageo plc (NYSE: DEO) . Your ticket to a "smoking" good dividend Sean Williams(Philip Morris International): Retirees typically want three things when looking for stocks they can sock away and not worry about: income, capital preservation, and low volatility. Having top-tier brands gives Philip Morris strong pricing power, and it also allows for word-of-mouth advertising, which keeps it firmly at the top of the pack among international tobacco producers.
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Take a closer look at international tobacco company Philip Morris International (NYSE: PM) , cruise line operator Carnival Corporation (NYSE: CCL) , and liquor giant Diageo plc (NYSE: DEO) . With a P/E ratio of just 17.5, Carnival stock sells for a 30% discount to the average price of stocks on the S&P 500 -- where P/Es average just under 25 times. 10 stocks we like better than Philip Morris International When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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Take a closer look at international tobacco company Philip Morris International (NYSE: PM) , cruise line operator Carnival Corporation (NYSE: CCL) , and liquor giant Diageo plc (NYSE: DEO) . While that's a concern for domestic tobacco companies, it isn't for Philip Morris, which operates in more than 180 markets around the world (the U.S. not being one of them). Why would you want to buy Carnival Corporation stock?
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ec6605db-f731-458d-adde-5c4466c446f0
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727932.0
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2017-09-28 00:00:00 UTC
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Stocks To Watch With Earnings On Deck: Constellation Brands
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DEO
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https://www.nasdaq.com/articles/stocks-watch-earnings-deck-constellation-brands-2017-09-28
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nan
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nan
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Constellation Brands ( STZ ) is expected to report earnings on Oct. 5. The distributor of wine, beer and liquor in the U.S., Canada, New Zealand and Italy is now trading right around the 199.99 buy point from a second-stage flat base that it cleared earlier.
[ibd-display-video id=449433 width=50 float=left autostart=true] Understand that buying a stock just ahead of earnings can be risky since you typically don't have enough time to establish a profit cushion before the latest quarterly numbers come out. Be sure to follow sound buy and sell rules to minimize your exposure.
Looking For The Best Stocks To Buy And Watch? Start Here
Earnings growth rose last quarter from 24% to 52%. But revenue gains fell from 5% to 3%.
Analysts expect earnings-per-share growth of 22% for the quarter, and 21% growth for the full year. Annual growth estimates were recently revised higher.
The company has a 92 Composite Rating and holds the No. 1 rank among its peers in the Beverages-Alcoholic industry group. Constellation Brands (STZB) and Diageo ( DEO ) are also among the group's highest-rated stocks.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
RELATED:
Earnings Calendar, Analyst Estimates And Stocks To Watch
New Option Strategy Limits Risk Around Earnings
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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[ibd-display-video id=449433 width=50 float=left autostart=true] Understand that buying a stock just ahead of earnings can be risky since you typically don't have enough time to establish a profit cushion before the latest quarterly numbers come out. Constellation Brands (STZB) and Diageo ( DEO ) are also among the group's highest-rated stocks. The distributor of wine, beer and liquor in the U.S., Canada, New Zealand and Italy is now trading right around the 199.99 buy point from a second-stage flat base that it cleared earlier.
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[ibd-display-video id=449433 width=50 float=left autostart=true] Understand that buying a stock just ahead of earnings can be risky since you typically don't have enough time to establish a profit cushion before the latest quarterly numbers come out. Constellation Brands (STZB) and Diageo ( DEO ) are also among the group's highest-rated stocks. Constellation Brands ( STZ ) is expected to report earnings on Oct. 5.
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[ibd-display-video id=449433 width=50 float=left autostart=true] Understand that buying a stock just ahead of earnings can be risky since you typically don't have enough time to establish a profit cushion before the latest quarterly numbers come out. Constellation Brands (STZB) and Diageo ( DEO ) are also among the group's highest-rated stocks. Analysts expect earnings-per-share growth of 22% for the quarter, and 21% growth for the full year.
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Constellation Brands (STZB) and Diageo ( DEO ) are also among the group's highest-rated stocks. [ibd-display-video id=449433 width=50 float=left autostart=true] Understand that buying a stock just ahead of earnings can be risky since you typically don't have enough time to establish a profit cushion before the latest quarterly numbers come out. Constellation Brands ( STZ ) is expected to report earnings on Oct. 5.
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f23fa764-bfa5-40da-ae82-2d8dbcdfa9be
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727933.0
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2017-09-26 00:00:00 UTC
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How Safe Is Brown-Forman's Dividend?
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DEO
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https://www.nasdaq.com/articles/how-safe-brown-formans-dividend-2017-09-26
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nan
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nan
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Dividend investors like reliable businesses, and the alcohol and spirits industry has been a reliable producer of profits for centuries. Brown-Forman (NYSE: BF-A) (NYSE: BF-B) isn't a household name in itself, but the products it makes are among the best-known in the business, including Jack Daniel's whiskey and Finlandia vodka. Even with its past success, Brown-Forman still has to compete against many rivals, and investors looking for sustainable income want to make sure they can count on the company to come out a winner.
Let's look more closely at Brown-Forman and how it's positioning itself for the future.
Dividend stats on Brown-Forman
Data source: Yahoo! Finance. Last increase refers to ex-dividend date.
Dividend yield
Brown-Forman's dividend yield is below the average of the overall market by a wide margin, with the typical stock in the S&P 500 weighing in a lot closer to 2%. The current yield is closer to the middle of its range throughout the 2010s, which has ranged from as little as 1% to as high as 2.25%. A soaring stock price has made it difficult for Brown-Forman's dividend to keep pace, and that explains much of the decline in the yield over nearly the past decade.
Payout ratio
Brown-Forman's payout ratio of just over 40% leaves it squarely within its typical range in recent years. Occasionally, substantial earnings declines have pushed the payout ratio above the 100% mark, signaling sustainability issues. Yet subsequent recoveries have taken the ratio back to values of between 25% and 60%, and the current level is consistent with Brown-Forman's performance in recent years.
Dividend growth
Brown-Forman has an excellent history of dividend growth. The spirits specialist has boosted its payout for 43 consecutive years, including a healthy 7% boost late last year. It has also managed to grow its dividend consistently over the decades. The following chart masks some of the dividend growth that Brown-Forman has delivered to shareholders because of the spikes related to special dividend payments. Yet the company's willingness to share greater amounts of capital with shareholders on an occasional basis further heightens its commitment to making income a key part of its capital allocation strategy.
BF.B Dividend data by YCharts .
What's happened with Brown-Forman lately?
Brown-Forman has done extremely well for shareholders, with sixfold gains since the early 2009 bear market lows. Jack Daniel's is a big part of the company's success , with the whiskey commanding top market share in recent years in the whiskey category. The popularity of spirits in general has risen, and that trend has supported Brown-Forman in its efforts to retain and build its share of the business.
Some have feared that rising trade tensions could hurt Brown-Forman. With Jack Daniel's having become one of the most popular brands in the world, exports have made up an increasingly important part of Brown-Forman's overall business strategy. Any threat to favorable trade conditions between the U.S. and key trade partners could put a crimp in Brown-Forman's ability to keep capitalizing on demand for whiskey and other spirits, and that in turn could make it harder for the company to keep sharing its success with shareholders through increased dividends.
Another danger is that consumer interest is tempting spirits companies to make decisions motivated by short-term popularity rather than long-term business sense. Some believe that rival Diageo 's (NYSE: DEO) recent bid to pay $1 billion for the Casmigos tequila brand dramatically overvalues the upstart, and Brown-Forman will have to avoid falling prey to competitive pressures to answer in kind with an overpriced acquisition of its own.
What to expect from Brown-Forman
Brown-Forman has done a good job in the past of maintaining a disciplined approach to building up its spirits portfolio while still making the most of the opportunities it has in front of it. Even as the industry evolves, Brown-Forman is in a good position to take advantage of consumer demand and stay ahead of the curve in terms of popularity.
10 stocks we like better than Brown-Forman (B Shares)
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 Brown-Forman (B Shares) 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 September 5, 2017
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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Some believe that rival Diageo 's (NYSE: DEO) recent bid to pay $1 billion for the Casmigos tequila brand dramatically overvalues the upstart, and Brown-Forman will have to avoid falling prey to competitive pressures to answer in kind with an overpriced acquisition of its own. Another danger is that consumer interest is tempting spirits companies to make decisions motivated by short-term popularity rather than long-term business sense. Even as the industry evolves, Brown-Forman is in a good position to take advantage of consumer demand and stay ahead of the curve in terms of popularity.
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Some believe that rival Diageo 's (NYSE: DEO) recent bid to pay $1 billion for the Casmigos tequila brand dramatically overvalues the upstart, and Brown-Forman will have to avoid falling prey to competitive pressures to answer in kind with an overpriced acquisition of its own. Brown-Forman (NYSE: BF-A) (NYSE: BF-B) isn't a household name in itself, but the products it makes are among the best-known in the business, including Jack Daniel's whiskey and Finlandia vodka. Dividend yield Brown-Forman's dividend yield is below the average of the overall market by a wide margin, with the typical stock in the S&P 500 weighing in a lot closer to 2%.
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Some believe that rival Diageo 's (NYSE: DEO) recent bid to pay $1 billion for the Casmigos tequila brand dramatically overvalues the upstart, and Brown-Forman will have to avoid falling prey to competitive pressures to answer in kind with an overpriced acquisition of its own. Dividend yield Brown-Forman's dividend yield is below the average of the overall market by a wide margin, with the typical stock in the S&P 500 weighing in a lot closer to 2%. Any threat to favorable trade conditions between the U.S. and key trade partners could put a crimp in Brown-Forman's ability to keep capitalizing on demand for whiskey and other spirits, and that in turn could make it harder for the company to keep sharing its success with shareholders through increased dividends.
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Some believe that rival Diageo 's (NYSE: DEO) recent bid to pay $1 billion for the Casmigos tequila brand dramatically overvalues the upstart, and Brown-Forman will have to avoid falling prey to competitive pressures to answer in kind with an overpriced acquisition of its own. Payout ratio Brown-Forman's payout ratio of just over 40% leaves it squarely within its typical range in recent years. With Jack Daniel's having become one of the most popular brands in the world, exports have made up an increasingly important part of Brown-Forman's overall business strategy.
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5d311b8a-6277-4615-9735-eaf2fb0378ed
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727934.0
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2017-09-16 00:00:00 UTC
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Validea Warren Buffett Strategy Daily Upgrade Report - 9/16/2017
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DEO
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https://www.nasdaq.com/articles/validea-warren-buffett-strategy-daily-upgrade-report-9162017-2017-09-16
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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.
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
Since its inception, Validea's strategy based on Warren Buffett has returned 168.86% vs. 135.10% 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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DIAGEO PLC (ADR) ( DEO ) is a large-cap growth stock in the Beverages (Alcoholic) industry. The following are today's upgrades for Validea's Patient Investor model based on the published strategy of Warren Buffett. 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.
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DIAGEO PLC (ADR) ( DEO ) is a large-cap growth stock in the Beverages (Alcoholic) industry. The following are today's upgrades for Validea's Patient Investor model based on the published strategy of Warren Buffett. 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.
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DIAGEO PLC (ADR) ( DEO ) is a large-cap growth stock in the Beverages (Alcoholic) industry. 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. 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 168.86% vs. 135.10% for the S&P 500.
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DIAGEO PLC (ADR) ( DEO ) is a large-cap growth stock in the Beverages (Alcoholic) industry. The following are today's upgrades for Validea's Patient Investor model based on the published strategy of Warren Buffett. 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.
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727935.0
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2017-09-13 00:00:00 UTC
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Diageo Hits 52-Week High on Buyouts, Rising Alcohol Demand
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https://www.nasdaq.com/articles/diageo-hits-52-week-high-on-buyouts-rising-alcohol-demand-2017-09-13
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Alcohol stocks have been performing well of late, primarily backed by the rising demand for flavored whisky, premium tequilas and spirits. The industry has recently witnessed the spirits segment gathering momentum, accounting for about 36% of the total alcohol market, grabbing share from beer and wine sales. (Read More: Cheers to These 5 Alcohol Stocks Gaining on Industry Boom )
One such stock is Diageo plcDEO , which has been witnessing strong growth driven by rising demand for beverages. In fact, this leading global manufacturer and seller of alcohol beverages recently hit a 52-week high of $137.59 on Sep 12, eventually closing at $137.35. We believe that the company's dedicated efforts to expand business through acquisitions and focus on high margin brands has aided it to reach a new high. In addition, this Zacks Rank #1 (Strong Buy) stock carries a VGM Score of B, further depicting its inherent strength.
We also observed that the company's shares have increased 23.5% in the past 12 months, marching ahead of the industry 's gain of 10.3%.
Acquisition Aids Expansion
Diageo is always on the lookout for expansion opportunities, frequently undertaking acquisition-related activities. In June 2017, the company announced the acquisition of Casamigos, one of the fastest-growing premium tequila brands in the United States. This buyout is likely to strengthen Diageo's market share in the tequila category along with the existing Don Julio brand, acquired in February 2015. Notable acquisitions in the past includes; De Leon Comb Wine & Spirits, United Spirits Limited, Mey Içki, Shui Jing Fang and Halico.
Gains from Emerging Markets
Diageo, like most other multinationals, is turning attention to the emerging markets. It is the leading international spirits company in markets of Africa, Latin America and Asia. Moreover, the company has been successful in the emerging regions by catering to local tastes. Its products like Johnnie Walker and Blue Label, have been customized according to the local palate in China, India, Thailand, Vietnam, Brazil and Mexico.
Focus on High-Margin Brands
Diageo puts greater emphasis on high-margin products as they have been depicting strong growth globally. During first-half fiscal 2017, the company's premium brands delivered growth of approximately 6% while the super deluxe brands went up 5%. Also in accordance with this strategy, management has resorted to disposing less productive brands and non-core assets.
Looking for More Consumer Staples Stocks? Check These
Investors may also consider other stocks from the Consumer Staples sector such as Nu Skin Enterprises, Inc. NUS , Ollie's Bargain Outlet Holdings, Inc. OLLI and Constellation Brands, Inc. STZ , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 stocks here .
Nu Skin delivered an average positive earnings surprise of 10.8% in the trailing four quarters. It has a long-term earnings growth rate of 8.7%.
Ollie's Bargain Outlet delivered an average positive earnings surprise of 12.4% in the trailing four quarters. It has a long-term earnings growth rate of 19.5%.
Constellation Brands delivered an average positive earnings surprise of 11.7% in the trailing four quarters. It has a long-term earnings growth rate of 18.2%.
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
Ollie's Bargain Outlet Holdings, Inc. (OLLI): Free Stock Analysis Report
Constellation Brands Inc (STZ): Free Stock Analysis Report
Diageo PLC (DEO): Free Stock Analysis Report
Nu Skin Enterprises, Inc. (NUS): 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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(Read More: Cheers to These 5 Alcohol Stocks Gaining on Industry Boom ) One such stock is Diageo plcDEO , which has been witnessing strong growth driven by rising demand for beverages. Click to get this free report Ollie's Bargain Outlet Holdings, Inc. (OLLI): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Nu Skin Enterprises, Inc. (NUS): Free Stock Analysis Report To read this article on Zacks.com click here. The industry has recently witnessed the spirits segment gathering momentum, accounting for about 36% of the total alcohol market, grabbing share from beer and wine sales.
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Click to get this free report Ollie's Bargain Outlet Holdings, Inc. (OLLI): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Nu Skin Enterprises, Inc. (NUS): Free Stock Analysis Report To read this article on Zacks.com click here. (Read More: Cheers to These 5 Alcohol Stocks Gaining on Industry Boom ) One such stock is Diageo plcDEO , which has been witnessing strong growth driven by rising demand for beverages. Check These Investors may also consider other stocks from the Consumer Staples sector such as Nu Skin Enterprises, Inc. NUS , Ollie's Bargain Outlet Holdings, Inc. OLLI and Constellation Brands, Inc. STZ , all carrying a Zacks Rank #2 (Buy).
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(Read More: Cheers to These 5 Alcohol Stocks Gaining on Industry Boom ) One such stock is Diageo plcDEO , which has been witnessing strong growth driven by rising demand for beverages. Click to get this free report Ollie's Bargain Outlet Holdings, Inc. (OLLI): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Nu Skin Enterprises, Inc. (NUS): Free Stock Analysis Report To read this article on Zacks.com click here. Check These Investors may also consider other stocks from the Consumer Staples sector such as Nu Skin Enterprises, Inc. NUS , Ollie's Bargain Outlet Holdings, Inc. OLLI and Constellation Brands, Inc. STZ , all carrying a Zacks Rank #2 (Buy).
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(Read More: Cheers to These 5 Alcohol Stocks Gaining on Industry Boom ) One such stock is Diageo plcDEO , which has been witnessing strong growth driven by rising demand for beverages. Click to get this free report Ollie's Bargain Outlet Holdings, Inc. (OLLI): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Nu Skin Enterprises, Inc. (NUS): Free Stock Analysis Report To read this article on Zacks.com click here. In June 2017, the company announced the acquisition of Casamigos, one of the fastest-growing premium tequila brands in the United States.
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2017-09-11 00:00:00 UTC
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Harvey Hurts Newell (NWL) Stock, Long-Term Potential Intact
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https://www.nasdaq.com/articles/harvey-hurts-newell-nwl-stock-long-term-potential-intact-2017-09-11
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Newell Brands Inc.NWL has been in investors' good books owing to its solid earnings surprise history, robust top lines, Project Renewal savings, portfolio management initiatives, innovations and sturdy e-Commerce. Further, the stock is supported by a long-term earnings growth rate of 11.9% and a VGM Score of B, which justifies its growth prospects. These factors have aided the company to retain a Zacks Rank #3 (Hold).
Harvey to Erode Profits - Guidance Trimmed
However, the company's stock performance recently witnessed a setback due to the impact of Hurricane Harvey, which resulted in lower resin supplies. The effects of Harvey significantly disrupted huge parts of the United States' resin manufacturing supply chain, significantly raising operating costs. Further, management stated that most of the resin suppliers along with facilities in Texas and Louisiana have declared force majeure, since Harvey's landfall on Aug 25. In fact, many of these facilities remained closed for more than a week.
Evidently, the devastating effects of Harvey have weighed upon the company's third quarter. Further, these resin supply issues and increased inflation is likely to persist through the rest of 2017 and in 2018. Consequently, the company trimmed earnings guidance for 2017. It now envisions normalized earnings in the band of $2.95-$3.05 per share versus $3.00-$3.20 projected earlier.
Stock Suffers
Notably, shares of this global manufacturer and marketer of consumer and commercial products declined 12.1% in the past month, underperforming the industry 's fall of 4.5%. Looking closer, the company's stock fell 6.4% since lowering earnings view on Sep 6.
Newell Making Efforts to Revive Supplies
Nonetheless, Newell Brands is working together with its global suppliers to discover other sources of resin, though this action exceeds the pre-determined costs targets, substantially. Going forward, the company is also likely to continue investing in strategic capacities and brands to aid market share growth, albeit witnessing temporary margin contractions in comparison with 2017 plan.
Long-Term Strategies Still Look Promising
Portfolio Management: As part of Growth Game Plan, Newell remains not only focused on simplifying operating structure, but also making prudent investments in areas with higher growth potential. In first-quarter 2017, the company made significant progress strengthening portfolio by completing six transactions in and just after the end of the quarter. The company completed two acquisitions including the Sistema food storage business and the WoodWick fragranced candles business, while divesting four businesses, namely tools, consumer storage totes, fire building and fire starting, and the rope and chain business.
Further, the company has an agreement in place to divest Teutonia, its central European baby gear business. Notably, the company is on track with its plan of exiting product lines with annual sales of $200-$300 million across its combined business with Jarden, over the next two to three years.
Most recently, the company agreed to acquire Chesapeake Bay Candle in a deal worth $75 million. The transaction is expected to close in fourth-quarter 2017 and will enhance its candles business.
Project Renewal Program: Newell's Project Renewal Program remains on track, and it expects annual cost savings from this program to achieve $700 million by 2017 end or 2018 beginning. The company intends to use a major portion of the savings to accelerate growth by investing the same in business, while the remaining cost savings are expected to reflect in earnings. Evidently, the company delivered more than $80 million of incremental cost savings in the most recent quarter, which reflects year-to-date savings of $198 million. Notably, it remains on track to generate over $300 million savings for the year.
Bottom Line
Despite the headwinds concerning resin supply, Newell is expected to continue delivering growth on the back of savings and acquisition related initiatives. Management also anticipates boosting performance in the second half backed by new distribution gains, a strong pipeline of innovations and e-Commerce strength.
Looking for More Promising Stocks? Check these
Better-ranked stocks in the Consumer Staples space include The Boston Beer Co. Inc. SAM , Diageo PLC DEO and Sanderson Farms, Inc. SAFM , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Boston Beer has improved 9.4% in the last three months. Further, the company has delivered an average positive earnings surprise of nearly 50% in the trailing four quarters.
Diageo has a Momentum Score of B. Further, the stock has returned 31.5% year to date.
Sanderson Farms has surged a whopping 59.6% year to date. Also, the company has delivered an average positive earnings surprise of 14% in the trailing four quarters.
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
Newell Brands Inc. (NWL): Free Stock Analysis Report
Diageo PLC (DEO): Free Stock Analysis Report
Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report
Sanderson Farms, Inc. (SAFM): 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 Better-ranked stocks in the Consumer Staples space include The Boston Beer Co. Inc. SAM , Diageo PLC DEO and Sanderson Farms, Inc. SAFM , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Newell Brands Inc. (NWL): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Sanderson Farms, Inc. (SAFM): Free Stock Analysis Report To read this article on Zacks.com click here. Newell Brands Inc.NWL has been in investors' good books owing to its solid earnings surprise history, robust top lines, Project Renewal savings, portfolio management initiatives, innovations and sturdy e-Commerce.
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Check these Better-ranked stocks in the Consumer Staples space include The Boston Beer Co. Inc. SAM , Diageo PLC DEO and Sanderson Farms, Inc. SAFM , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Newell Brands Inc. (NWL): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Sanderson Farms, Inc. (SAFM): Free Stock Analysis Report To read this article on Zacks.com click here. Project Renewal Program: Newell's Project Renewal Program remains on track, and it expects annual cost savings from this program to achieve $700 million by 2017 end or 2018 beginning.
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Click to get this free report Newell Brands Inc. (NWL): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Sanderson Farms, Inc. (SAFM): Free Stock Analysis Report To read this article on Zacks.com click here. Check these Better-ranked stocks in the Consumer Staples space include The Boston Beer Co. Inc. SAM , Diageo PLC DEO and Sanderson Farms, Inc. SAFM , each sporting a Zacks Rank #1 (Strong Buy). Harvey to Erode Profits - Guidance Trimmed However, the company's stock performance recently witnessed a setback due to the impact of Hurricane Harvey, which resulted in lower resin supplies.
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Check these Better-ranked stocks in the Consumer Staples space include The Boston Beer Co. Inc. SAM , Diageo PLC DEO and Sanderson Farms, Inc. SAFM , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Newell Brands Inc. (NWL): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Sanderson Farms, Inc. (SAFM): Free Stock Analysis Report To read this article on Zacks.com click here. Evidently, the company delivered more than $80 million of incremental cost savings in the most recent quarter, which reflects year-to-date savings of $198 million.
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2017-09-08 00:00:00 UTC
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7 Safe Stocks to Prep for a Market Storm
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https://www.nasdaq.com/articles/7-safe-stocks-to-prep-for-a-market-storm-2017-09-08
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Safe stocks aren't always obvious. There are plenty of big-name companies that have scale but no growth. Also, there are plenty of high-dividend stocks that pay 5% or more only because their share price keeps dropping. Other stocks may hang tough in the tough times, but lag stubbornly behind when the market revs up.
Source: Shutterstock
So how do you identify safe stocks that will protect you in a short-term market downturn, but not leave profits on the table in the long-run?
My recipe for safe stocks is simple. I want three things:
An established business with great cash flow
Protection from cyclical downturns in demand or consumer spending
A modest dividend to pay you even if the broader S&P 500 goes nowhere
Based on these three criteria - as well as standard demands like a fair valuation and decent earnings performance - I've identified seven picks that are worth a look.
Click here for Safe Stock #1 - Medical Properties Trust
Safe Stock #1 - Medical Properties Trust (MPW)
Source: Shutterstock
Dividend Yield: 7.2%
My colleague Aaron Levitt called out this bargain-priced real estate investment trust in a recent article, and for good reason. Medical Properties Trust, Inc. (NYSE: MPW ) is a fast-growing REIT seeing brisk expansion of its funds from operations - the most important measure we can get from this special class of tax-sheltered companies.
That reliable and growing flow of cash also helps fuel reliable and growing dividends, to the tune of 7.2% currently.
But it's not just the income potential that's worth a look here. A big investment theme I've pitched here at InvestorPlace is the power of healthcare. The reasons are pretty simple: Aging baby boomers are increasing demand for care in the U.S., inflationary trends guarantee pricing power in the sector, and even in an economic downturn you'll see Americans cut back on everything but their healthcare.
MPW is well-positioned to capitalize on this trend thanks to its ownership of community hospitals and acute-care centers - and a recent acquisition of 11 more facilities will certainly boost its numbers in the year ahead.
Click here for Safe Stock #2 - Altria
Safe Stock #2 - Altria (MO)
Source: Peyri Herrera via Flickr (Modified)
Dividend Yield: 4.2%
Altria Group Inc (NYSE: MO ) may strike some as one of those no-growth companies I warned against just a moment ago. However, this pick is not just a dividend stock; consider that over the past five years, it has actually outperformed the S&P 500 in share price performance alone thanks to aggressive buybacks and shrewd management of profitability.
And of course, MO stock is a go-to for dividend investors after 48 consecutive years of increases in its payout. Those increases aren't a penny here and there, either -as evidenced most recently with an 8% bump in 2017 from 61 cents to 66 cents.
Yes, traditional tobacco products are on the outs. But keep in mind that Altria is not merely Philip Morris USA - the name behind iconic cigarette brands like Marlboro and Parliament. Altria also dabbles in smokeless products and even wines via producer Ste. Michelle. This provides an added level of long-term stability - even though, to be frank, I don't see cigarettes ever going away completely in my lifetime.
Shares haven't done much lately in 2017, but with a forward price-to-earnings ratio of less than 18 and reliable profit growth ahead in 2018, I'd bank on Altria regardless of short-term market trends.
Click here for Safe Stock #3 - Diageo
Safe Stock #3 - Diageo (DEO)
Source: Mustafa Khayat Via Flickr
Dividend Yield: 2.4%
Diageo plc (ADR) (NYSE: DEO ) is a world leader in the spirits business, with mega-brands including Johnnie Walker whisky, Smirnoff vodka, Tanqueray and Guinness beer, among a host of others. And thanks to a focus mainly on liquor, DEO stock has been largely insulated from the shakeup we've seen in the beer biz as craft brews have eroded share.
For instance, even as Anheuser Busch InBev NV (ADR) (NYSE: BUD ) has struggled since 2015 despite a $200 billion operation with some of the biggest mainline beers on the planet, Diageo has slightly outperformed the market thanks to modest but consistent growth.
As a "sin stock," Diageo also has the unique benefits of seeing stable or even increased demand during hard times. After all, why give up your cocktails if the market is crashing, hurricanes are bearing down on your house and North Korea is thinking of detonating a nuke?
Click here for Safe Stock #4 - Verizon
Safe Stock #4 - Verizon (VZ)
Source: Wikimedia
Dividend Yield: 2.4%
Boeing Co (NYSE: BA ) doesn't immediately spring to mind as a safe-haven investment. After all, talk of decreased defense spending in 2016 really weighed on this stock - and as an industrial player, a cyclical downturn in business spending could weigh on its aerospace business in a big way.
However, Boeing is a company that has seen it all. And while the top line has admittedly seen headwinds in recent years, shares have come roaring back in 2017 with a 50% return since Jan. 1 on expectations of a turnaround and a series of impressive earnings beats.
Don't think that money is all going into the CEO's pocket, however. After a huge dividend increase earlier this year - from $1.09 per share quarterly to $1.42 - BA is back in the ranks of the most generous income investments. That, coupled with geopolitical unrest - including risks of a conflict with North Korea - will assuredly keep Boeing in favor in Washington for some time.
The combo of a favorable big-picture narrative and improving fundamentals is tough to overlook, particularly now that Boeing yields more than U.S. Treasuries.
Click here for Safe Stock #6 - American States Water
Safe Stock #6 - American States Water (AWR)
Source: Sarah Laval via Flickr (Modified)
Dividend Yield: 2.1%
Utilities are often the go-to choice for low-risk investors, and that's understandable. Companies in highly regulated industries enjoy a high barrier to possible competitors, and most utilities are geographic monopolies to boot.
But some electric utilities are overvalued right now despite the lack of growth. On the other hand, American States Water Co (NYSE: AWR ) has a decent yield but a powerful business model that gives it bigger growth opportunities than your conventional electricity generator.
That's because AWR focuses on water and sewer infrastructure instead of electricity. And as water issues increasingly become a concern - particularly in drought-plagued California, where American States Water is headquartered - there is actually growth in this sector as well as stability.
The icing on the cake is the fact that AWR has increased dividends annually for 63 years - the longest streak of any publicly traded U.S. company - and will continue to deliver reliable payouts on reliable revenue for a long time, no matter what happens in the rest of 2017.
Safe Stock #7 - Procter & Gamble
Safe Stock #7 - Procter & Gamble (PG)
Source: Mike Mozart via Flickr (Modified)
Dividend Yield: 3%
You couldn't have a list of safe-haven investments with out Procter & Gamble Co. (NYSE: PG ), one of the most reliable consumer names on the planet.
Powered by amazing brands from Dawn dish soap to Gillette shaving products to Crest toothpaste, P&G has its fingerprints all over the typical household. And best of all for low-risk investors, these products will keep selling no matter what the macro picture is like because people still need to clean their bodies and their kitchens regardless of where the S&P is headed.
The dividend is a big draw, too, with a roughly 60-year streak of annual dividend increases showing P&G is committed to bigger payouts over time.
While growth won't burn down the house and the valuation of PG stock is in line with the broader market, this safe-haven stock has been tracking the market year-to-date despite its bulletproof nature. That implies you can continue to enjoy market upside while it lasts, and be protected if it doesn't.
As of this writing, Jeff Reeves does not hold a position in any of the aforementioned securities.
The post 7 Safe Stocks to Prep for a Market Storm 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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Click here for Safe Stock #3 - Diageo Safe Stock #3 - Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.4% Diageo plc (ADR) (NYSE: DEO ) is a world leader in the spirits business, with mega-brands including Johnnie Walker whisky, Smirnoff vodka, Tanqueray and Guinness beer, among a host of others. And thanks to a focus mainly on liquor, DEO stock has been largely insulated from the shakeup we've seen in the beer biz as craft brews have eroded share. The reasons are pretty simple: Aging baby boomers are increasing demand for care in the U.S., inflationary trends guarantee pricing power in the sector, and even in an economic downturn you'll see Americans cut back on everything but their healthcare.
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Click here for Safe Stock #3 - Diageo Safe Stock #3 - Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.4% Diageo plc (ADR) (NYSE: DEO ) is a world leader in the spirits business, with mega-brands including Johnnie Walker whisky, Smirnoff vodka, Tanqueray and Guinness beer, among a host of others. And thanks to a focus mainly on liquor, DEO stock has been largely insulated from the shakeup we've seen in the beer biz as craft brews have eroded share. Click here for Safe Stock #1 - Medical Properties Trust Safe Stock #1 - Medical Properties Trust (MPW) Source: Shutterstock Dividend Yield: 7.2% My colleague Aaron Levitt called out this bargain-priced real estate investment trust in a recent article, and for good reason.
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Click here for Safe Stock #3 - Diageo Safe Stock #3 - Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.4% Diageo plc (ADR) (NYSE: DEO ) is a world leader in the spirits business, with mega-brands including Johnnie Walker whisky, Smirnoff vodka, Tanqueray and Guinness beer, among a host of others. And thanks to a focus mainly on liquor, DEO stock has been largely insulated from the shakeup we've seen in the beer biz as craft brews have eroded share. Click here for Safe Stock #2 - Altria Safe Stock #2 - Altria (MO) Source: Peyri Herrera via Flickr (Modified) Dividend Yield: 4.2% Altria Group Inc (NYSE: MO ) may strike some as one of those no-growth companies I warned against just a moment ago.
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Click here for Safe Stock #3 - Diageo Safe Stock #3 - Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.4% Diageo plc (ADR) (NYSE: DEO ) is a world leader in the spirits business, with mega-brands including Johnnie Walker whisky, Smirnoff vodka, Tanqueray and Guinness beer, among a host of others. And thanks to a focus mainly on liquor, DEO stock has been largely insulated from the shakeup we've seen in the beer biz as craft brews have eroded share. Click here for Safe Stock #2 - Altria Safe Stock #2 - Altria (MO) Source: Peyri Herrera via Flickr (Modified) Dividend Yield: 4.2% Altria Group Inc (NYSE: MO ) may strike some as one of those no-growth companies I warned against just a moment ago.
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2017-09-08 00:00:00 UTC
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Beverage Stocks to Score This NFL Season
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https://www.nasdaq.com/articles/beverage-stocks-to-score-this-nfl-season-2017-09-08
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nan
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The 2017 National Football League (NFL) championship kicked off yesterday and soccer lovers are bubbling with excitement. Wait, the soccer mania does not end here. The buzz is also felt in markets as sponsors make a beeline for profits while the ball rolls. It is here that beverages give their best shot.
This year, global viewership is expected to increase manifold, with broad proliferation of digital and social media channels. As such, sponsors are likely to pull off every possible trick in the game to gain maximum brand exposure and top-of-the-mind recall, thus persuading football lovers to spend more on their brands.
Importantly, the league too is trying to capitalize on changing demographics and consumers' shift in preferences. This season, the NFL will allow its television partners to accept commercials for distilled spirits throughout the season, according to a memo reviewed by The Wall Street Journal. Amid falling beer consumption, this marks a major change in NFL's advertising policy. The NFL confirmed the policy change and described it as one-season test that is expected to become permanent, per a NFL executive.
According to Fortune, beer lost 10% of its market share to wine and spirits between 2006 and 2016. Spirits made up 35.9% of the industry in 2016, while wine took 17.1%.
This move by the NFL in all likelihood will hit football staples like Anheuser-Busch InBev BUD and Molson Coors Brewing Company TAP , but could be a boon to distilled-spirits companies such as Brown-Forman Corporation BF.B and London-based Diageo plc DEO .
Positive Metrics Set to Cheer Investors
Beverage companies are set to gain the most from this NFL craze. Let's first take a look at the fundamentals of the industry.
The global beverage market (comprising both non-alcoholic and alcoholic) is likely to reach $1.9 trillion by 2021 and witness a CAGR of 3% from 2016 to 2021, according to ReportLinker quoted on PRNewswire. Growing urbanization and disposable income are its main drivers.
The Zacks Beverage Industry has grown 17.6% so far this year, faring a lot better than the broader S&P 500 market's 10.3% gain. The Zacks Soft Drink Industry has returned almost 15%, while the Alcohol Industry has climbed 30.5%.
The Zacks Beverage Industry is expected to witness a solid 17.6% growth this year, higher than the broader market's expected earnings growth rate of 9%. ROE of the industry stands at 25.5% compared with 15.9% of the S&P 500.
The positive momentum is evident from the robust Zacks Industry Rank of these two beverage industries, occupying top 7% out of 256 industries for Alcohol and top 20% for Soft Drinks.
6 Prominent Picks
Investors can bank on these beverage stocks, which are making the most of consumer dynamism amid a shift in preferences. We have chosen companies with the help of Zacks Stock Screener that flaunt a Zacks Rank #1 (Strong Buy) and other important metrics. You can see the complete list of today's Zacks #1 Rank stocks here.
Diageo plc is engaged in the business of brewing, marketing and selling of craft beers in the United States. The stock flaunts a Zacks Rank #1 and a VGM Score of B. The stock has climbed 30.5% year to date, outperforming the beverage industry.
Its earnings estimate for the current year has moved north by 3.1% over the last 30 days. The company has expected earnings growth of 11% for the current year.
The Boston Beer Company Inc.SAM , the largest craft brewer in the United States, has gained a solid 12.5% quarter to date, outperforming the industry's 6.3% growth. This top-ranked stock has seen its earnings estimates grow 14.6% for the current year. The stock has a Growth Score of B and surpassed estimates by an average of nearly 50% in the trailing four quarters.
Another on the list is Coca-Cola FEMSA, S.A.B. de C.V.KOF . The stock, with a VGM Score of B, has climbed 28% quarter to date comparing favorably with the beverage industry. Its earnings estimate for the current year increased 15.2% in the last 60 days. The company has a solid earnings growth rate of 53.8% for the current year.
Coca-Cola European Partners plcCCE or CCEP is the world's largest independent bottler of The Coca-Cola Company KO based on revenue. The stock has surged 37.1% year to date, faring a lot better than the industry's gain of 17.6%. Earnings estimates have displayed a healthy uptrend, reflecting optimism in the stock's prospects. The Zacks Consensus Estimate for CCEP's current-year earnings has moved up 6.8% over the last 60 days.
The company has outpaced/met the Zacks Consensus Estimate consistently in each of the trailing four quarters, the average beat being 6.22%.
Heineken N.V.HEINY is engaged in producing and distributing beverages. The stock has climbed 40.4% year to date and sports a Growth Score of B. the company is expected to witness 16.4% EPS growth this year on sales growth of 15.7%.
Lastly, Craft Brew Alliance, Inc.BREW , another Zacks Rank #1 stock, is engaged in the business of brewing, marketing and selling of craft beers in the United States. Its earnings estimate for the current year increased 14 cents in the last 60 days.
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
Brown Forman Corporation (BF.B): Free Stock Analysis Report
Molson Coors Brewing Company (TAP): Free Stock Analysis Report
Diageo PLC (DEO): Free Stock Analysis Report
Anheuser-Busch Inbev SA (BUD): Free Stock Analysis Report
Craft Brew Alliance, Inc. (BREW): Free Stock Analysis Report
Heineken NV (HEINY): Free Stock Analysis Report
Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report
Coca-Cola European Partners PLC (CCE): Free Stock Analysis Report
Coca-Cola Company (The) (KO): Free Stock Analysis Report
Coca Cola Femsa S.A.B. de C.V. (KOF): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 move by the NFL in all likelihood will hit football staples like Anheuser-Busch InBev BUD and Molson Coors Brewing Company TAP , but could be a boon to distilled-spirits companies such as Brown-Forman Corporation BF.B and London-based Diageo plc DEO . Click to get this free report Brown Forman Corporation (BF.B): Free Stock Analysis Report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Anheuser-Busch Inbev SA (BUD): Free Stock Analysis Report Craft Brew Alliance, Inc. (BREW): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Coca-Cola European Partners PLC (CCE): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Coca Cola Femsa S.A.B. The global beverage market (comprising both non-alcoholic and alcoholic) is likely to reach $1.9 trillion by 2021 and witness a CAGR of 3% from 2016 to 2021, according to ReportLinker quoted on PRNewswire.
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Click to get this free report Brown Forman Corporation (BF.B): Free Stock Analysis Report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Anheuser-Busch Inbev SA (BUD): Free Stock Analysis Report Craft Brew Alliance, Inc. (BREW): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Coca-Cola European Partners PLC (CCE): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Coca Cola Femsa S.A.B. This move by the NFL in all likelihood will hit football staples like Anheuser-Busch InBev BUD and Molson Coors Brewing Company TAP , but could be a boon to distilled-spirits companies such as Brown-Forman Corporation BF.B and London-based Diageo plc DEO . The Zacks Beverage Industry is expected to witness a solid 17.6% growth this year, higher than the broader market's expected earnings growth rate of 9%.
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Click to get this free report Brown Forman Corporation (BF.B): Free Stock Analysis Report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Anheuser-Busch Inbev SA (BUD): Free Stock Analysis Report Craft Brew Alliance, Inc. (BREW): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Coca-Cola European Partners PLC (CCE): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Coca Cola Femsa S.A.B. This move by the NFL in all likelihood will hit football staples like Anheuser-Busch InBev BUD and Molson Coors Brewing Company TAP , but could be a boon to distilled-spirits companies such as Brown-Forman Corporation BF.B and London-based Diageo plc DEO . The Zacks Beverage Industry is expected to witness a solid 17.6% growth this year, higher than the broader market's expected earnings growth rate of 9%.
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This move by the NFL in all likelihood will hit football staples like Anheuser-Busch InBev BUD and Molson Coors Brewing Company TAP , but could be a boon to distilled-spirits companies such as Brown-Forman Corporation BF.B and London-based Diageo plc DEO . Click to get this free report Brown Forman Corporation (BF.B): Free Stock Analysis Report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Anheuser-Busch Inbev SA (BUD): Free Stock Analysis Report Craft Brew Alliance, Inc. (BREW): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Coca-Cola European Partners PLC (CCE): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Coca Cola Femsa S.A.B. The 2017 National Football League (NFL) championship kicked off yesterday and soccer lovers are bubbling with excitement.
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2017-09-08 00:00:00 UTC
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3 Strong Buy Stocks Hitting New Highs Right Now
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DEO
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https://www.nasdaq.com/articles/3-strong-buy-stocks-hitting-new-highs-right-now-2017-09-08
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After what was an up-and-down August for stocks, September isn't quite off to a hot start, and it looks like investors are poised to display more caution in the latter portion of 2017. Nevertheless, several notable individual stocks are testing new highs every day.
In fact, according to Barchart.com , at least 107 companies touched a new 52-week high on Friday morning. Of these, a handful are also currently sporting strong Zacks Ranks, which means they could be poised to move even higher in the coming months.
While some investors are hesitant to buy stocks at their peak, a soaring company with a Zacks Rank #1 (Strong Buy) could be the best option for capturing current momentum and existing potential.
With that said, check out these three stocks that just hit new 52-week highs today:
1. Micron Technology (MU)
Micron shares were actually in the red through morning trading on Friday, but the stock briefly touched a new 52-week high of $33.02 per share after the opening bell. This red-hot chipmaker is up over 42% year-to-date, making it one of 2017's most impressive semiconductor stocks.
Significant improvements in core operations, as well as several key acquisitions, have helped the company post quadruple-digit earnings growth and impressive sales growth, and share prices have soared accordingly. On top of its strong Zacks Rank, MU is sporting an "A" grade for Value, as well as an overall VGM grade of "A."
2. JA Solar Holdings (JASO)
Shares of JA Solar had a strong morning surge and quickly topped out at an intraday high of $7.84, which also marked a new 52-week high for the stock. This solar cell manufacturer has been on fire since its most recent earnings report. The company surpassed the Zacks Consensus Estimate for the fourth-straight quarter, and now, in addition to its Zacks Rank #1 (Strong Buy), JA Solar has an "A" grade for Value and VGM.
3. Diageo (DEO)
Liquor behemoth Diageo moved more than 1% higher this morning, touching a new 52-week and all-time high of $1367.34 per share in the process. This major British exporter has not only benefitted from a weaker pound-it has also cashed in on rising popularity of spirits in America.
The company, which owns Johnnie Walker, J&B, Gordon's, Baileys, Guinness and more, has hit multiple new 52-week highs over the past month. The company also owns Smirnoff, Cîroc, Ketel One, Don Julio, and Tanqueray, which are all brands that could be poised to grow further as the spirit explosion continues in the U.S.
Want morestock market analysisfrom this author? Make sure to follow @ Ryan_McQueeney on Twitter!
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
Micron Technology, Inc. (MU): Free Stock Analysis Report
JA Solar Holdings, Co., Ltd. (JASO): 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 (DEO) Liquor behemoth Diageo moved more than 1% higher this morning, touching a new 52-week and all-time high of $1367.34 per share in the process. Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report JA Solar Holdings, Co., Ltd. (JASO): Free Stock Analysis Report To read this article on Zacks.com click here. After what was an up-and-down August for stocks, September isn't quite off to a hot start, and it looks like investors are poised to display more caution in the latter portion of 2017.
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Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report JA Solar Holdings, Co., Ltd. (JASO): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo (DEO) Liquor behemoth Diageo moved more than 1% higher this morning, touching a new 52-week and all-time high of $1367.34 per share in the process. JA Solar Holdings (JASO) Shares of JA Solar had a strong morning surge and quickly topped out at an intraday high of $7.84, which also marked a new 52-week high for the stock.
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Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report JA Solar Holdings, Co., Ltd. (JASO): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo (DEO) Liquor behemoth Diageo moved more than 1% higher this morning, touching a new 52-week and all-time high of $1367.34 per share in the process. Micron Technology (MU) Micron shares were actually in the red through morning trading on Friday, but the stock briefly touched a new 52-week high of $33.02 per share after the opening bell.
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Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report JA Solar Holdings, Co., Ltd. (JASO): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo (DEO) Liquor behemoth Diageo moved more than 1% higher this morning, touching a new 52-week and all-time high of $1367.34 per share in the process. With that said, check out these three stocks that just hit new 52-week highs today: 1.
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2017-09-07 00:00:00 UTC
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5 British Stocks to Profit From a Weak Pound Sterling
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DEO
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https://www.nasdaq.com/articles/5-british-stocks-profit-weak-pound-sterling-2017-09-07
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nan
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nan
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On Aug 31, Michel Barnier, the EU's chief negotiator at the Brexit talks expressed concern over the lack of "decisive progress" on major issues. And this uncertainty on Brexit negotiations has begun to weigh on Britain's economy and the pound sterling. The pound sterling has lost nearly 7% versus the euro till now this year, mirroring in many ways the fate of these two economies.
Yet, there is a silver lining in the pound's fall, benefits of which Britain experienced in the early days of Brexit. The pound's decline led to windfall gains for the country's exporters which helped to shore up Britain's economy. Now, even as the economy seemingly struggles, companies exporting products and services stand to benefit from a weaker pound. This is why it makes good sense to pick up such stocks at this point.
Britain, EU Diverge Economically
According to the latest Eurostat estimates, the Eurozone expanded by 2.3% year-over-year during the quarter ended June. This is the sharpest pace of growth experienced since the first quarter of 2011. On an annualized basis, the economic bloc exhibited a 2.6% pace of growth during the second quarter.
In contrast, Britain's economy expanded at a sluggish 0.3% pace during the same period. Further, the annualized pace of growth for the first half of this year came in at only 1%. The reason for such changed circumstances is not hard to seek. The economic uncertainty unleashed by Brexit is the primary cause of Britain's economic woes.
British Firms to Gain from Pound's Pain
Brexit related concerns have also led to a substantial decline in the value of the pound, particularly versus the euro. And this is the one payoff which British companies can look forward to amid the economic gloom. Advantages for companies domiciled in Britain are twofold in this case. First, earnings of exporters of goods and services rise with a decline in the value of the pound.
Second, Britain's companies have the opportunity to grow their market share in foreign markets by pushing up sales. According to JPMorgan Chase & Co.'s (JPM) asset management division, this can be achieved because British products have become cheaper in foreign currencies. Even though it may be tough to quantify such an outcome, it is already adding to the attractiveness of stocks from Britain, according to the financial major.
Analysts at Barclays PLC (BCS) go a step further to suggest that companies from Britain should utilize the pound's weakness to reduce prices in order to capture a larger share of foreign markets.
Our Choices
It is true that the pound's decline mirrors the fortunes of the British economy. However, companies based in the country stand to gain by exporting products and services priced in a cheaper currency. Not only should this lead to a jump in earnings, it could also help such firms expand their market share abroad.
Adding stocks gaining from this trend to your portfolios looks like a smart option at this point. However, picking winning stocks may be difficult.
This is where our VGM score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM score.
We have narrowed down our search to the following stocks based on a good Zacks Rank and VGM Score.
Nomad Foods LimitedNOMD is a manufacturer and distributor of frozen foods which operates across the United Kingdom, Italy, Germany, Sweden, France and Norway.
Nomad Foods has a Zacks Rank #1 (Strong Buy) and a VGM Score of B. The company has expected earnings growth of 20.7% for the current year. Its earnings estimate for the current year has improved by 12.1% over the last 30 days. Nomad Foods has returned 48.9% year to date, outperforming the industry it belongs to, which has lost 7.8% over the same period.
Vodafone Group PlcVOD is a telecom company which operates on a global basis. Vodafone is headquartered in Newbury, U.K.
Vodafone has a VGM Score of A. The company has expected earnings growth of 17.2% for the current year. Its earnings estimate for the current year has improved by 1% over the last 30 days. Vodafone has returned 21.2% year to date, outperforming the industry it belongs to, which has gained 12.5% over the same period. The stock has a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Smith & Nephew plcSNN is a global medical device company headquartered in London.
Smith & Nephew has a Zacks Rank #2 (Buy) and a VGM Score of A. The company has expected earnings growth of 9.1% for the current year. Smith & Nephew has returned 22.3% year to date, outperforming the industry it belongs to, which has gained 19.4% over the same period.
Diageo plcDEO operates in approximately 180 countries and is involved in producing, distilling, brewing, bottling, packaging as well as distributing spirits, wine and beer. Diageo is headquartered in London.
Diageo has a Zacks Rank #2 and a VGM Score of B. The company has expected earnings growth of 11% for the current year. Its earnings estimate for the current year has improved by 3.1% over the last 30 days. Diageo has returned 32.8% year to date, outperforming the industry it belongs to, which has gained 21.1% over the same period.
Associated British Foods plcASBFY is a diversified international food, ingredients and retail group headquartered in London.
Associated British Foods has a Zacks Rank #2 and a VGM Score of B. The company has expected earnings growth of 15% for the current year. Associated British Foods has returned 27.5% year to date, outperforming the industry it belongs to, which has lost 7.8% over the same period.
One Simple Trading Idea
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This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
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
Associated British Foods PLC (ASBFY): Free Stock Analysis Report
Smith & Nephew SNATS, Inc. (SNN): Free Stock Analysis Report
Vodafone Group PLC (VOD): Free Stock Analysis Report
Nomad Foods Limited (NOMD): 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 operates in approximately 180 countries and is involved in producing, distilling, brewing, bottling, packaging as well as distributing spirits, wine and beer. Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Associated British Foods PLC (ASBFY): Free Stock Analysis Report Smith & Nephew SNATS, Inc. (SNN): Free Stock Analysis Report Vodafone Group PLC (VOD): Free Stock Analysis Report Nomad Foods Limited (NOMD): Free Stock Analysis Report To read this article on Zacks.com click here. On Aug 31, Michel Barnier, the EU's chief negotiator at the Brexit talks expressed concern over the lack of "decisive progress" on major issues.
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Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Associated British Foods PLC (ASBFY): Free Stock Analysis Report Smith & Nephew SNATS, Inc. (SNN): Free Stock Analysis Report Vodafone Group PLC (VOD): Free Stock Analysis Report Nomad Foods Limited (NOMD): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plcDEO operates in approximately 180 countries and is involved in producing, distilling, brewing, bottling, packaging as well as distributing spirits, wine and beer. However, companies based in the country stand to gain by exporting products and services priced in a cheaper currency.
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Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Associated British Foods PLC (ASBFY): Free Stock Analysis Report Smith & Nephew SNATS, Inc. (SNN): Free Stock Analysis Report Vodafone Group PLC (VOD): Free Stock Analysis Report Nomad Foods Limited (NOMD): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plcDEO operates in approximately 180 countries and is involved in producing, distilling, brewing, bottling, packaging as well as distributing spirits, wine and beer. The company has expected earnings growth of 20.7% for the current year.
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Diageo plcDEO operates in approximately 180 countries and is involved in producing, distilling, brewing, bottling, packaging as well as distributing spirits, wine and beer. Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Associated British Foods PLC (ASBFY): Free Stock Analysis Report Smith & Nephew SNATS, Inc. (SNN): Free Stock Analysis Report Vodafone Group PLC (VOD): Free Stock Analysis Report Nomad Foods Limited (NOMD): Free Stock Analysis Report To read this article on Zacks.com click here. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores.
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2017-09-01 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-2017-09-01
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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.
Source: Shutterstock
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 Company (NYSE: GM ) was a classic "widows and orphans" stock … until last decade, when GM wound up going bankrupt. United States Steel Corporation (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 Company (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.
7 Dividend-Growing REITs That Cost Next to Nothing
Here are 10 such retirement stocks that you can hold on to in perpetuity.
10 Retirement Stocks to Hold Forever: Bank of America (BAC)
Source: Shutterstock
Dividend Yield: 2%
It might seem strange to open the list with Bank of America Corp (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.
10 Retirement Stocks to Hold Forever: Diageo (DEO)
Source: Mustafa Khayat Via Flickr
Dividend Yield: 2.4%
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 plc (ADR) (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 The Coca-Cola Co (NYSE: KO ) and Anheuser Busch InBev NV (ADR) (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 Investments You Should Hold in an IRA
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.
10 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 plc. Ordinary Shares (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.
10 Retirement Stocks to Hold Forever: NextEra Energy (NEE)
Source: Shutterstock
Dividend Yield: 2.6%
Utility stocks are among the most common safe, "buy and hold" issues. And NextEra Energy Inc (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's gained 26% 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 2.6% dividend yield provides income along the way.
The 7 Best Stocks to Survive a Chaotic Next Few Months
Investors looking for value in the space might look for a smaller play like cheaper Dominion Energy Inc (NYSE: D ). But it's usually worth paying for quality, and NextEra Energy looks like one of the best utility stocks out there.
10 Retirement Stocks to Hold Forever: McCormick (MKC)
Source: Blue Genie via Flickr
Dividend Yield: 2%
McCormick & Company, Incorporated (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 Group PLC-ADR (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.
10 Retirement Stocks to Hold Forever: Allstate (ALL)
Source: Shutterstock
Dividend Yield: 1.6%
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 13x 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.
10 Cash-Rich Stocks to Buy (And What They Should Buy)
Once those short-term worries subside, ALL should resume its march upward.
10 Retirement Stocks to Hold Forever: International Flavors & Fragances (IFF)
Source: Shutterstock
Dividend Yield: 2%
International Flavors & Fragrances Inc (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 27x 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% dividend, recently raised by 8%, offers income potential as well.
Consumers may not know IFF - but investors should.
10 Retirement Stocks to Hold Forever: Lamb Weston (LW)
Source: Shutterstock
Dividend Yield: 1.6%
Lamb Weston Holdings Inc (NYSE: LW ) was spun off from Conagra Brands Inc (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 Corporation (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 18x 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.
The 7 Best Dow Jones Stocks to Buy Right Now
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.
10 Retirement Stocks to Hold Forever: Fortune Brands (FBHS)
Source: Shutterstock
Dividend Yield: 1.1%
Investors are commonly advised to diversify their portfolio. Fortune Brands Home & Security Inc (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 1.1% 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.
10 Retirement Stocks to Hold Forever: Republic Services (RSG)
Source: Shutterstock
Dividend Yield: 2.1%
Republic Services, Inc. (NYSE: RSG ) is a bit smaller and likely a lot less well-known than rival Waste Management, Inc. (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.
4 Vanguard Bond Funds to Buy (And 3 to Avoid) for Higher Interest Rates
But investors looking for safe, stable growth can't go wrong with either RSG or WM.
As of this writing, Vince Martin was long MKC.
The post 10 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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10 Retirement Stocks to Hold Forever: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.4% 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 plc (ADR) (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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10 Retirement Stocks to Hold Forever: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.4% 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 plc (ADR) (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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10 Retirement Stocks to Hold Forever: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.4% 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 plc (ADR) (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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10 Retirement Stocks to Hold Forever: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 2.4% 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 plc (ADR) (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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2017-08-30 00:00:00 UTC
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3 Alcohol & Beer Stocks To Buy As Drinking Trends Evolve
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DEO
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https://www.nasdaq.com/articles/3-alcohol-beer-stocks-buy-drinking-trends-evolve-2017-08-30
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nan
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Summer is all but over, but that does not mean people will stop drinking. Today, we're going to look at a few alcohol and beer stocks that are still poised to gain as the seasons turn.
The fall often marks a return to indoor activities for many people in the U.S.-especially as football, and the NFL season in particular, returns to television screens around the country.
Although game days and colder temperatures might mean more drinking, the industry is in the midst of some trying times.
American's consumed less alcohol year-over-year in 2016, according to an IWSR report-which marked the first overall dip since 2011. Goldman Sachs GS recently projected that the total U.S. beer market will decline by 0.7% in 2017, and the firm downgraded Boston Beer Company SAM and Constellation Brands STZ stock accordingly.
However, alcohol sales aren't stopping outright, they are shifting, and the companies we will look at today are ready to gain based on more niche drinking trends.
Overall, beer lost 10% of its market share to wine and spirits between 2006 and 2016. Spirits made up 35.9% of the industry in 2016, while wine grabbed 17.1%, according to Fortune . Tequila consumption jumped by 7.4%, while bourbon climbed 6.4% last year. Vodka, gin, scotch, and wine also all grew.
And beer still accounts for 47% of the market, with the craft beer and Mexican imports segments experiencing growth in 2016.
So now let's take a look at a few companies with strong Zacks Ranks and the ability to profit from these new trends.
Heineken N.V. HEINY
Heineken N.V. is currently a Zacks Rank #1 (Strong Buy). The Netherlands-based brewing giant has a market cap of $59 billion and has already experienced a strong first half of the year.
Heineken's organic revenues grew by 5.7% in the first half of 2017. The company's operating profit jumped 11.8% to $2.12 billion, which beat Wall Street expectations. Heineken's consolidated beer volume rose 2.6%, while the Heineken brand itself saw a 3.9% increase in volume.
The Dutch power brews Europe's top-selling lager, as well as others, including Amstel, Sol, Tecate, and Red Stripe. Heineken sold over 8.5 million barrels in the U.S. , which is more than double what Boston Beer sold.
Heineken also recently made a major investment in up and coming California-based Lagunitas Brewing Co., as well as other craft beer makers. The company's stock price currently sits less than a dollar bellow its all-time high of $52.44 a share, and with a better-than-industry average forward PE of 22.36, Heineken may still be undervalued among its beer-making peers.
Diageo plc DEO
Diageo plc is currently a Zacks Rank #1 (Strong Buy) with a massive $83 billion market cap. The multinational spirits company has experienced a strong 2017.
The company, which owns Johnnie Walker, J&B, Gordon's, Baileys, Guinness and more, has seen its stock price soar from $109.61 a share at the end of last August to rest just below its all-time high of $134.49 a share today. Over the last month, shares have hit multiple new 52-week highs.
Over the last thirty days, we've seen one analyst increase their earnings estimate for this year and next year. The 2017 figure was revised from $5.95 a share to $6.14 a share, while full-year 2018 estimates jumped to $6.71 per share from $6.41 per share.
The company also owns Smirnoff, Cîroc, Ketel One, Don Julio, and Tanqueray, which are all brands that could be poised to grow further as the spirit explosion continues in the U.S.
Pernod Ricard SA PDRDY
Pernod Ricard SA is currently a Zacks Rank #1 (Strong Buy), and the French-based liquor and spirits power is coming off a solid first half of the year.
The company has a forward PE ratio of 20.26, which is better than the industry average. Also, the company's share price has increased by more than 19% over the past year, making it one of the hotter stocks in this space. Pernod Ricard also pays its shareholders a respectable 1.06% dividend, and company holds a price to cash flow ratio of 20.75.
Pernod Ricard owns Havana Club, Ballantine's, Malibu, The Glenlivet, Chivas Regal, Jameson and Absolut Vodka, as well as multiple wine brands, which means it is also positioned to cash in on America's cocktail boom.
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Constellation Brands Inc (STZ): Free Stock Analysis Report
Diageo PLC (DEO): Free Stock Analysis Report
Heineken NV (HEINY): Free Stock Analysis Report
Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report
Pernod Ricard SA (PDRDY): Free Stock Analysis Report
Goldman Sachs Group, Inc. (The) (GS): 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 Diageo plc is currently a Zacks Rank #1 (Strong Buy) with a massive $83 billion market cap. Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Pernod Ricard SA (PDRDY): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report To read this article on Zacks.com click here. However, alcohol sales aren't stopping outright, they are shifting, and the companies we will look at today are ready to gain based on more niche drinking trends.
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Diageo plc DEO Diageo plc is currently a Zacks Rank #1 (Strong Buy) with a massive $83 billion market cap. Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Pernod Ricard SA (PDRDY): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report To read this article on Zacks.com click here. The company also owns Smirnoff, Cîroc, Ketel One, Don Julio, and Tanqueray, which are all brands that could be poised to grow further as the spirit explosion continues in the U.S. Pernod Ricard SA PDRDY Pernod Ricard SA is currently a Zacks Rank #1 (Strong Buy), and the French-based liquor and spirits power is coming off a solid first half of the year.
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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 Heineken NV (HEINY): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Pernod Ricard SA (PDRDY): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc DEO Diageo plc is currently a Zacks Rank #1 (Strong Buy) with a massive $83 billion market cap. Goldman Sachs GS recently projected that the total U.S. beer market will decline by 0.7% in 2017, and the firm downgraded Boston Beer Company SAM and Constellation Brands STZ stock accordingly.
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Diageo plc DEO Diageo plc is currently a Zacks Rank #1 (Strong Buy) with a massive $83 billion market cap. Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Pernod Ricard SA (PDRDY): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report To read this article on Zacks.com click here. Overall, beer lost 10% of its market share to wine and spirits between 2006 and 2016.
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2017-08-28 00:00:00 UTC
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Diageo, Match Group, Amazon's and Whole Foods as Zacks Bull and Bear of the Day
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DEO
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https://www.nasdaq.com/articles/diageo-match-group-amazons-and-whole-foods-as-zacks-bull-and-bear-of-the-day-2017-08-28
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nan
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For Immediate Release
Chicago, IL - August 28, 2017 - Zacks Equity Research highlights Diageo(NYSE: DEO - Free Report) as the Bull of the Day Match Group (OTCMKTS: MTCH - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Amazon's (NASDAQ: AMZN - Free Report ) and Whole Foods (NASDAQ: WFM - Free Report ).
Here is a synopsis of all five stocks:
Bull of the Day :
There's never a dull moment in the stock market. If you were getting used to sideways action, the events of the last couple of weeks have shown that you shouldn't be complacent. We've had two spikes in volatility to go along with major market averages coming down to test 50-day and 200-day moving averages. The good news is, this is creating new trends in the market you can take advantage of.
One time-tested strategy is looking for stocks with positive earnings estimate revisions. Let's face it, no matter how much you follow a stock, you're not going to have as much information at your disposal as an analyst whose entire day is dedicated to following that stock and stocks within the same industry. As these analysts increase their earnings estimates, it could be a hint that good things are happening.
Today's Bull of the Day, Diageo(NYSE: DEO - Free Report) has seen a string of bullish estimate revisions lately. Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide. The company offers a collection of brands across spirits, beer, cider, and wine categories. Its 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.
Bullish estimate revisions are the reason it's currently a Zacks Rank #1 (Strong Buy). Over the last thirty days, an analyst has come out and increased their estimate for the current year and next year. The current year number was revised up to $6.14 from $5.95 while next year's number has gone from $6.41 to $6.71.
Bear:
When you're looking for ideas to invest in, it's important to check out the earnings history of the stock you're investigating. Not only what the growth has been in earnings but how has the sentiment of analysts changed over time? Historically, do analysts have high hopes then dial back their expectations? Revising EPS estimates to the downside isn't nearly as attractive as the opposite. If analysts have to keep dropping their expectations, eventually investors will be taking back their investment dollars.
Today's Bear of the Day is Match Group (OTCMKTS: MTCH - Free Report) .Match Group, Inc. provides dating products. The company operates in two segments, Dating and Non-dating. It operates a portfolio of approximately 45 brands, including Match, Tinder, PlentyOfFish, Meetic, OkCupid, Pairs, Twoo, OurTime, BlackPeopleMeet, and LoveScout24. The company offers its dating products through its Websites and applications in 42 languages approximately in 190 countries.
Match Group is currently a Zacks Rank #5 (Strong Sell) because of several earnings estimate revisions to the downside. Over the last thirty days, five analysts have dropped their estimates for the current year while seven have done so for next year's number. This is setting up Match Group for a 0.9% contraction in EPS this year. That in vacuum doesn't seem like such a drastic number but when you look at the revision history then it paints a different story. A year ago, analysts were expecting 76 cents EPS this year, now they are looking for just 63 cents. Next year's number started off at $1.17 last year and has dwindled down to 79 cents.
Additional content:
What Changes Will Amazon Make at Whole Foods?
Now that Amazon's (NASDAQ: AMZN - Free Report ) purchase of Whole Foods (NASDAQ: WFM - Free Report ) is official, what changes can the organic grocers' customers expect, and how might Amazon users benefit from the merger?
On Wednesday, the Federal Trade Commission approved Amazon's $13.7 billion acquisition of Whole Foods, which was first announced in mid-June. And the news caused grocery store stocks to plummet on Thursday.
But, aside from helping send shivers down grocery store investors' spines, and adding roughly 470 organic grocery stores to its ever-growing list of diversified assets, what will Amazon really change about Whole Foods?
Changes
The Texas-based chain's natural and organic foods often come with hefty price tags. So one of Amazon's first steps, which will begin as soon as Monday, is to lower Whole Foods' prices.
"Everybody should be able to eat Whole Foods Market quality - we will lower prices without compromising Whole Foods Market's long-held commitment to the highest standards," CEO of Amazon Worldwide Consumer Jeff Wilke said in a statement .
On top of that, Jeff Bezos' company will incorporate Amazon Prime into Whole Foods' point-of-sale system. Prime members will then eventually earn unique in-store benefits and savings opportunities.
The company will also make Amazon Prime the grocery store's customer rewards program. "The two companies will invent in additional areas over time, including in merchandising and logistics," according to the statement.
Here are some other highlights from the official Amazon, Whole Foods announcement-minus the extensive list of soon-to-be lower priced food items:
In the future, after certain technical integration work is complete, Amazon Prime will become Whole Foods Market's customer rewards program, providing Prime members with special savings and other in-store benefits.
Whole Foods Market's healthy and high-quality private label products-including 365 Everyday Value, Whole Foods Market, Whole Paws and Whole Catch-will be available through Amazon.com, AmazonFresh, Prime Pantry and Prime Now.
Amazon Lockers will be available in select Whole Foods Market stores. Customers can have products shipped from Amazon.com to their local Whole Foods Market store for pick up or send returns back to Amazon during a trip to the store.
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About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About Zacks Equity Research
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 analyst 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.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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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
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Match Group, Inc. (MTCH): Free Stock Analysis Report
Diageo PLC (DEO): Free Stock Analysis Report
Whole Foods Market, Inc. (WFM): 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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Today's Bull of the Day, Diageo(NYSE: DEO - Free Report) has seen a string of bullish estimate revisions lately. For Immediate Release Chicago, IL - August 28, 2017 - Zacks Equity Research highlights Diageo(NYSE: DEO - Free Report) as the Bull of the Day Match Group (OTCMKTS: MTCH - Free Report) as the Bear of the Day. Get the full Report on DEO - FREE Get the full Report on MTCH - FREE Get the full Report on AMZN - FREE Get the full Report on WFM - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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For Immediate Release Chicago, IL - August 28, 2017 - Zacks Equity Research highlights Diageo(NYSE: DEO - Free Report) as the Bull of the Day Match Group (OTCMKTS: MTCH - Free Report) as the Bear of the Day. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Match Group, Inc. (MTCH): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Whole Foods Market, Inc. (WFM): Free Stock Analysis Report To read this article on Zacks.com click here. Today's Bull of the Day, Diageo(NYSE: DEO - Free Report) has seen a string of bullish estimate revisions lately.
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Get the full Report on DEO - FREE Get the full Report on MTCH - FREE Get the full Report on AMZN - FREE Get the full Report on WFM - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Match Group, Inc. (MTCH): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Whole Foods Market, Inc. (WFM): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - August 28, 2017 - Zacks Equity Research highlights Diageo(NYSE: DEO - Free Report) as the Bull of the Day Match Group (OTCMKTS: MTCH - Free Report) as the Bear of the Day.
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Today's Bull of the Day, Diageo(NYSE: DEO - Free Report) has seen a string of bullish estimate revisions lately. For Immediate Release Chicago, IL - August 28, 2017 - Zacks Equity Research highlights Diageo(NYSE: DEO - Free Report) as the Bull of the Day Match Group (OTCMKTS: MTCH - Free Report) as the Bear of the Day. Get the full Report on DEO - FREE Get the full Report on MTCH - FREE Get the full Report on AMZN - FREE Get the full Report on WFM - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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2017-08-28 00:00:00 UTC
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Diageo, Match Group, Amazon's and Whole Foods as Zacks Bull and Bear of the Day
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DEO
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https://www.nasdaq.com/articles/diageo-match-group-amazons-and-whole-foods-as-zacks-bull-and-bear-of-the-day-2017-08-28-0
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nan
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nan
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For Immediate Release
Chicago, IL - August 28, 2017 - Zacks Equity Research highlights Diageo(NYSE: DEO - Free Report) as the Bull of the Day Match Group (OTCMKTS: MTCH - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Amazon's (NASDAQ: AMZN - Free Report ) and Whole Foods (NASDAQ: WFM - Free Report ).
Here is a synopsis of all five stocks:
Bull of the Day :
There's never a dull moment in the stock market. If you were getting used to sideways action, the events of the last couple of weeks have shown that you shouldn't be complacent. We've had two spikes in volatility to go along with major market averages coming down to test 50-day and 200-day moving averages. The good news is, this is creating new trends in the market you can take advantage of.
One time-tested strategy is looking for stocks with positive earnings estimate revisions. Let's face it, no matter how much you follow a stock, you're not going to have as much information at your disposal as an analyst whose entire day is dedicated to following that stock and stocks within the same industry. As these analysts increase their earnings estimates, it could be a hint that good things are happening.
Today's Bull of the Day, Diageo(NYSE: DEO - Free Report) has seen a string of bullish estimate revisions lately. Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide. The company offers a collection of brands across spirits, beer, cider, and wine categories. Its 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.
Bullish estimate revisions are the reason it's currently a Zacks Rank #1 (Strong Buy). Over the last thirty days, an analyst has come out and increased their estimate for the current year and next year. The current year number was revised up to $6.14 from $5.95 while next year's number has gone from $6.41 to $6.71.
Bear:
When you're looking for ideas to invest in, it's important to check out the earnings history of the stock you're investigating. Not only what the growth has been in earnings but how has the sentiment of analysts changed over time? Historically, do analysts have high hopes then dial back their expectations? Revising EPS estimates to the downside isn't nearly as attractive as the opposite. If analysts have to keep dropping their expectations, eventually investors will be taking back their investment dollars.
Today's Bear of the Day is Match Group (OTCMKTS: MTCH - Free Report) .Match Group, Inc. provides dating products. The company operates in two segments, Dating and Non-dating. It operates a portfolio of approximately 45 brands, including Match, Tinder, PlentyOfFish, Meetic, OkCupid, Pairs, Twoo, OurTime, BlackPeopleMeet, and LoveScout24. The company offers its dating products through its Websites and applications in 42 languages approximately in 190 countries.
Match Group is currently a Zacks Rank #5 (Strong Sell) because of several earnings estimate revisions to the downside. Over the last thirty days, five analysts have dropped their estimates for the current year while seven have done so for next year's number. This is setting up Match Group for a 0.9% contraction in EPS this year. That in vacuum doesn't seem like such a drastic number but when you look at the revision history then it paints a different story. A year ago, analysts were expecting 76 cents EPS this year, now they are looking for just 63 cents. Next year's number started off at $1.17 last year and has dwindled down to 79 cents.
Additional content:
What Changes Will Amazon Make at Whole Foods?
Now that Amazon's (NASDAQ: AMZN - Free Report ) purchase of Whole Foods (NASDAQ: WFM - Free Report ) is official, what changes can the organic grocers' customers expect, and how might Amazon users benefit from the merger?
On Wednesday, the Federal Trade Commission approved Amazon's $13.7 billion acquisition of Whole Foods, which was first announced in mid-June. And the news caused grocery store stocks to plummet on Thursday.
But, aside from helping send shivers down grocery store investors' spines, and adding roughly 470 organic grocery stores to its ever-growing list of diversified assets, what will Amazon really change about Whole Foods?
Changes
The Texas-based chain's natural and organic foods often come with hefty price tags. So one of Amazon's first steps, which will begin as soon as Monday, is to lower Whole Foods' prices.
"Everybody should be able to eat Whole Foods Market quality - we will lower prices without compromising Whole Foods Market's long-held commitment to the highest standards," CEO of Amazon Worldwide Consumer Jeff Wilke said in a statement .
On top of that, Jeff Bezos' company will incorporate Amazon Prime into Whole Foods' point-of-sale system. Prime members will then eventually earn unique in-store benefits and savings opportunities.
The company will also make Amazon Prime the grocery store's customer rewards program. "The two companies will invent in additional areas over time, including in merchandising and logistics," according to the statement.
Here are some other highlights from the official Amazon, Whole Foods announcement-minus the extensive list of soon-to-be lower priced food items:
In the future, after certain technical integration work is complete, Amazon Prime will become Whole Foods Market's customer rewards program, providing Prime members with special savings and other in-store benefits.
Whole Foods Market's healthy and high-quality private label products-including 365 Everyday Value, Whole Foods Market, Whole Paws and Whole Catch-will be available through Amazon.com, AmazonFresh, Prime Pantry and Prime Now.
Amazon Lockers will be available in select Whole Foods Market stores. Customers can have products shipped from Amazon.com to their local Whole Foods Market store for pick up or send returns back to Amazon during a trip to the store.
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About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About Zacks Equity Research
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 analyst 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.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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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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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Match Group, Inc. (MTCH): Free Stock Analysis Report
Diageo PLC (DEO): Free Stock Analysis Report
Whole Foods Market, Inc. (WFM): Free Stock Analysis Report
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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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Today's Bull of the Day, Diageo(NYSE: DEO - Free Report) has seen a string of bullish estimate revisions lately. For Immediate Release Chicago, IL - August 28, 2017 - Zacks Equity Research highlights Diageo(NYSE: DEO - Free Report) as the Bull of the Day Match Group (OTCMKTS: MTCH - Free Report) as the Bear of the Day. Get the full Report on DEO - FREE Get the full Report on MTCH - FREE Get the full Report on AMZN - FREE Get the full Report on WFM - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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For Immediate Release Chicago, IL - August 28, 2017 - Zacks Equity Research highlights Diageo(NYSE: DEO - Free Report) as the Bull of the Day Match Group (OTCMKTS: MTCH - Free Report) as the Bear of the Day. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Match Group, Inc. (MTCH): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Whole Foods Market, Inc. (WFM): Free Stock Analysis Report To read this article on Zacks.com click here. Today's Bull of the Day, Diageo(NYSE: DEO - Free Report) has seen a string of bullish estimate revisions lately.
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Get the full Report on DEO - FREE Get the full Report on MTCH - FREE Get the full Report on AMZN - FREE Get the full Report on WFM - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Match Group, Inc. (MTCH): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Whole Foods Market, Inc. (WFM): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - August 28, 2017 - Zacks Equity Research highlights Diageo(NYSE: DEO - Free Report) as the Bull of the Day Match Group (OTCMKTS: MTCH - Free Report) as the Bear of the Day.
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Today's Bull of the Day, Diageo(NYSE: DEO - Free Report) has seen a string of bullish estimate revisions lately. For Immediate Release Chicago, IL - August 28, 2017 - Zacks Equity Research highlights Diageo(NYSE: DEO - Free Report) as the Bull of the Day Match Group (OTCMKTS: MTCH - Free Report) as the Bear of the Day. Get the full Report on DEO - FREE Get the full Report on MTCH - FREE Get the full Report on AMZN - FREE Get the full Report on WFM - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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b9bccb0d-4613-4133-9498-1e2bfc056c12
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727945.0
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2017-08-23 00:00:00 UTC
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Noteworthy ETF Inflows: FVD, DEO, ADP, MCY
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DEO
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https://www.nasdaq.com/articles/noteworthy-etf-inflows-fvd-deo-adp-mcy-2017-08-23
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Value Line Dividend Index Fund (Symbol: FVD) where we have detected an approximate $132.2 million dollar inflow -- that's a 3.5% increase week over week in outstanding units (from 128,337,986 to 132,837,986). Among the largest underlying components of FVD, in trading today Diageo plc (Symbol: DEO) is trading flat, Automatic Data Processing Inc. (Symbol: ADP) is down about 0.7%, and Mercury General Corp. (Symbol: MCY) is relatively unchanged. For a complete list of holdings, visit the FVD Holdings page » The chart below shows the one year price performance of FVD, versus its 200 day moving average:
Looking at the chart above, FVD's low point in its 52 week range is $26.11 per share, with $29.95 as the 52 week high point - that compares with a last trade of $29.30. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
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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Among the largest underlying components of FVD, in trading today Diageo plc (Symbol: DEO) is trading flat, Automatic Data Processing Inc. (Symbol: ADP) is down about 0.7%, and Mercury General Corp. (Symbol: MCY) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Value Line Dividend Index Fund (Symbol: FVD) where we have detected an approximate $132.2 million dollar inflow -- that's a 3.5% increase week over week in outstanding units (from 128,337,986 to 132,837,986). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of FVD, in trading today Diageo plc (Symbol: DEO) is trading flat, Automatic Data Processing Inc. (Symbol: ADP) is down about 0.7%, and Mercury General Corp. (Symbol: MCY) is relatively unchanged. For a complete list of holdings, visit the FVD Holdings page » The chart below shows the one year price performance of FVD, versus its 200 day moving average: Looking at the chart above, FVD's low point in its 52 week range is $26.11 per share, with $29.95 as the 52 week high point - that compares with a last trade of $29.30. Click here to find out which 9 other ETFs had notable inflows » 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 the largest underlying components of FVD, in trading today Diageo plc (Symbol: DEO) is trading flat, Automatic Data Processing Inc. (Symbol: ADP) is down about 0.7%, and Mercury General Corp. (Symbol: MCY) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Value Line Dividend Index Fund (Symbol: FVD) where we have detected an approximate $132.2 million dollar inflow -- that's a 3.5% increase week over week in outstanding units (from 128,337,986 to 132,837,986). For a complete list of holdings, visit the FVD Holdings page » The chart below shows the one year price performance of FVD, versus its 200 day moving average: Looking at the chart above, FVD's low point in its 52 week range is $26.11 per share, with $29.95 as the 52 week high point - that compares with a last trade of $29.30.
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Among the largest underlying components of FVD, in trading today Diageo plc (Symbol: DEO) is trading flat, Automatic Data Processing Inc. (Symbol: ADP) is down about 0.7%, and Mercury General Corp. (Symbol: MCY) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Value Line Dividend Index Fund (Symbol: FVD) where we have detected an approximate $132.2 million dollar inflow -- that's a 3.5% increase week over week in outstanding units (from 128,337,986 to 132,837,986). For a complete list of holdings, visit the FVD Holdings page » The chart below shows the one year price performance of FVD, versus its 200 day moving average: Looking at the chart above, FVD's low point in its 52 week range is $26.11 per share, with $29.95 as the 52 week high point - that compares with a last trade of $29.30.
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ab52d23b-8dca-4954-93b1-f680c767d22d
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727946.0
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2017-08-21 00:00:00 UTC
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3 Dividend Stocks Perfect for Retirement
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DEO
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https://www.nasdaq.com/articles/3-dividend-stocks-perfect-retirement-2017-08-21
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nan
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nan
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Preparing your portfolio for retirement is no easy task, but investing in quality dividend-paying stocks can certainly relieve a lot of the hassle. Income plus appreciation is a powerful combination to build your nest egg.
We asked three Motley Fool investors to identify one stock they thought would supercharge a retirement portfolio. There are some very good reasons why they chose Pfizer (NYSE: PFE) , Cisco Systems (NASDAQ: CSCO) , and Diageo (NYSE: DEO) .
A solid dividend-paying drugmaker
Keith Speights (Pfizer) : One longtime favorite for retirement portfolios is Pfizer. It's currently the largest drugmaker in the world in terms of prescription-drug sales and appears likely to remain near the top for years to come. The company began operating way back in 1849, so Pfizer definitely has staying power.
For retirees, though, the best thing to like about Pfizer is its dividend. The company's dividend currently yields 3.83% -- among the highest in the healthcare industry. Although Pfizer is spending a little more to fund the dividend program than it's earning right now, there's no reason for concern. The company's cash flow remains rock solid, and Pfizer's earnings should pick up over the next few years.
Pfizer does face some headwinds, as several drugs have either already lost patent exclusivity, or will soon do so. In addition, sales are declining somewhat for two of its top products -- autoimmune disease drug Enbrel and vaccine Prevnar 13. On the other hand, the big pharma company also has some stars in its lineup, especially cancer drug Ibrance.
Over the long run, Pfizer's commitment to internal research and development and its continual search for good acquisition opportunities should keep the company on a solid growth path. That means the dividends should keep on flowing -- exactly what retirees like to hear.
A dependable tech giant
Keith Noonan (Cisco Systems): Cisco is a company that's going through a transitional period, and there might be concern that the company isn't a dependable investment for your non-working years. However, its low valuation, attractive returned-income profile, and overall business strengths suggest that it's a great stock for building a retirement nest egg.
Cisco has long been a stalwart of the networking industry, and has relied on sales of switch and router hardware -- devices that are used for creating and connecting networks -- for the majority of its revenue. These are slow-growth categories within which the company looks poised to remain a leader. It's shifting to a more software-focused model, however, in order to take advantage of technology trends, like the Internet of Things , and to offset threats posed by hardware competitors and the replication of routing and switching functionality through software solutions. The outlook for the company's hardware component is still solid, but building recurring revenue streams through software and services offerings is a move that should strengthen its business substantially over the long term.
Cisco trades at roughly 13 times forward earnings estimates -- a low multiple that suggests the sort of downside protection that's ideal for retirement portfolios -- and the stock is further fortified by a strong returned-income component. The company is relatively new to the dividend game, having first initiated payments in 2011, but it's raised its dividend in each subsequent year, and done so at a compound annual growth rate of roughly 30%. Cisco's yield already looks chunky sitting at roughly 3.6%, and with the cost of distributing its forward dividend representing just 54% of trailing earnings and 46% of free cash flow, the company has plenty of room to continue increasing its payout.
Premium profit opportunity
Rich Duprey(Diageo): Whether it's beer, wine, or spirits, drinkers are scaling up their taste preferences and buying premium and super-premium alcoholic beverages, while shunning lower-end hooch. It's why craft beer remains a growth industry even though mass-produced brands stumble, and why premium-priced spirits such as whiskey, bourbon, and tequila continue to pad distiller profits.
Diageo is perfectly situated to capitalize on all these fronts, and it's doing so. Last month, it posted higher-than-expected fiscal full-year earnings, and sales rose 15%, ahead of Wall Street's expectations. The big winner was scotch whisky, which had almost 5% organic growth, and Diageo was able to say that every country in which it operates saw higher sales.
Diageo owns a portfolio of high-end beers, wine, and spirits that account for two-thirds of its net sales, including Ciroc vodka, Don Julio tequila, Bulleit bourbon, and Guinness beer. Recently, the distiller agreed to purchase from George Clooney the premium Casamigos tequila for $1 billion, including performance payouts.
While Diageo's stock is priced at record highs, it's showing the market is willing to pay a premium price for a premium beer and liquor distributor. There's no reason to believe the shift in taste preferences won't continue for a long time to come, making Diageo's stock a good one for retirement. While it does trade at 23 times earnings and 18 times next year's estimates, the distiller appears to be worth it.
It also pays a dividend of $4.06 per share that's yielding 3.1% annually; this would help smooth out any bumps Diageo might encounter. Approximately 40% of Diageo's total dividend is expected to be paid as an interim dividend and approximately 60% as a final dividend, with the company expecting to raise the payout every six months at a rate of about 5% until it's back in its targeted dividend cover range. Currently, the dividend cover, or the ratio of earnings per share to dividends per share, is 1.5 -- Diageo seeks a range of 1.8 to 2.2.
Regardless of how long the increases continue, Diageo represents a good stock for retirement.
10 stocks we like better than Pfizer
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 Pfizer 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 1, 2017
Keith Noonan has no position in any stocks mentioned. Keith Speights owns shares of Pfizer. Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems 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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There are some very good reasons why they chose Pfizer (NYSE: PFE) , Cisco Systems (NASDAQ: CSCO) , and Diageo (NYSE: DEO) . It's shifting to a more software-focused model, however, in order to take advantage of technology trends, like the Internet of Things , and to offset threats posed by hardware competitors and the replication of routing and switching functionality through software solutions. Cisco trades at roughly 13 times forward earnings estimates -- a low multiple that suggests the sort of downside protection that's ideal for retirement portfolios -- and the stock is further fortified by a strong returned-income component.
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There are some very good reasons why they chose Pfizer (NYSE: PFE) , Cisco Systems (NASDAQ: CSCO) , and Diageo (NYSE: DEO) . A solid dividend-paying drugmaker Keith Speights (Pfizer) : One longtime favorite for retirement portfolios is Pfizer. Cisco trades at roughly 13 times forward earnings estimates -- a low multiple that suggests the sort of downside protection that's ideal for retirement portfolios -- and the stock is further fortified by a strong returned-income component.
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There are some very good reasons why they chose Pfizer (NYSE: PFE) , Cisco Systems (NASDAQ: CSCO) , and Diageo (NYSE: DEO) . Cisco's yield already looks chunky sitting at roughly 3.6%, and with the cost of distributing its forward dividend representing just 54% of trailing earnings and 46% of free cash flow, the company has plenty of room to continue increasing its payout. There's no reason to believe the shift in taste preferences won't continue for a long time to come, making Diageo's stock a good one for retirement.
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There are some very good reasons why they chose Pfizer (NYSE: PFE) , Cisco Systems (NASDAQ: CSCO) , and Diageo (NYSE: DEO) . The company's cash flow remains rock solid, and Pfizer's earnings should pick up over the next few years. Premium profit opportunity Rich Duprey(Diageo): Whether it's beer, wine, or spirits, drinkers are scaling up their taste preferences and buying premium and super-premium alcoholic beverages, while shunning lower-end hooch.
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54b15f3b-81c9-4429-ae54-634643e02819
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727947.0
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2017-08-16 00:00:00 UTC
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Greenwood Gearhart Inc Buys Baker Hughes Inc, Sells Coca-Cola Co, American Express Co, ...
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DEO
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https://www.nasdaq.com/articles/greenwood-gearhart-inc-buys-baker-hughes-inc-sells-coca-cola-co-american-express-co-2017
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nan
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nan
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Greenwood Gearhart Inc
New Purchases: BHI ,
Added Positions: WFC , XOM , UN, JEC, IBM, CVS, AON, TRN, WBA, TSN,
Reduced Positions:KO, AXP, MCD, WMT,
Sold Out:BHGE,
For the details of GREENWOOD GEARHART INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GREENWOOD+GEARHART+INC
These are the top 5 holdings of GREENWOOD GEARHART INC
Diageo PLC ( DEO ) - 70,306 shares, 3.22% of the total portfolio. Shares added by 0.66%
Wal-Mart Stores Inc ( WMT ) - 108,280 shares, 3.13% of the total portfolio. Shares reduced by 10.47%
Johnson & Johnson ( JNJ ) - 59,201 shares, 2.99% of the total portfolio. Shares added by 0.46%
Boeing Co ( BA ) - 38,369 shares, 2.9% of the total portfolio. Shares reduced by 0.38%
Loews Corp ( L ) - 161,680 shares, 2.89% of the total portfolio. Shares added by 0.64%
New Purchase: Baker Hughes Inc (BHI)
Greenwood Gearhart Inc initiated holdings in Baker Hughes Inc. The purchase prices were between $53.37 and $61.71, with an estimated average price of $57.6. The stock is now traded at around $57.68. The impact to the portfolio due to this purchase was 1.04%. The holdings were 49,861 shares as of 2017-06-30.
Sold Out: Baker Hughes, a GE Co (BHGE)
Greenwood Gearhart Inc sold out the holdings in Baker Hughes, a GE Co. The sale prices were between $53.37 and $61.71, with an estimated average price of $57.6.
Warning! GuruFocus has detected 2 Warning Signs with BHI. Click here to check it out.
BHI 15-Year Financial Data
The intrinsic value of BHI
Peter Lynch Chart of BHI
Premium Members
This article first appeared on GuruFocus .
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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Greenwood Gearhart Inc New Purchases: BHI , Added Positions: WFC , XOM , UN, JEC, IBM, CVS, AON, TRN, WBA, TSN, Reduced Positions:KO, AXP, MCD, WMT, Sold Out:BHGE, For the details of GREENWOOD GEARHART INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GREENWOOD+GEARHART+INC These are the top 5 holdings of GREENWOOD GEARHART INC Diageo PLC ( DEO ) - 70,306 shares, 3.22% of the total portfolio. Shares added by 0.64% New Purchase: Baker Hughes Inc (BHI) Greenwood Gearhart Inc initiated holdings in Baker Hughes Inc. Sold Out: Baker Hughes, a GE Co (BHGE) Greenwood Gearhart Inc sold out the holdings in Baker Hughes, a GE Co.
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Greenwood Gearhart Inc New Purchases: BHI , Added Positions: WFC , XOM , UN, JEC, IBM, CVS, AON, TRN, WBA, TSN, Reduced Positions:KO, AXP, MCD, WMT, Sold Out:BHGE, For the details of GREENWOOD GEARHART INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GREENWOOD+GEARHART+INC These are the top 5 holdings of GREENWOOD GEARHART INC Diageo PLC ( DEO ) - 70,306 shares, 3.22% of the total portfolio. Shares added by 0.64% New Purchase: Baker Hughes Inc (BHI) Greenwood Gearhart Inc initiated holdings in Baker Hughes Inc. Sold Out: Baker Hughes, a GE Co (BHGE) Greenwood Gearhart Inc sold out the holdings in Baker Hughes, a GE Co.
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Greenwood Gearhart Inc New Purchases: BHI , Added Positions: WFC , XOM , UN, JEC, IBM, CVS, AON, TRN, WBA, TSN, Reduced Positions:KO, AXP, MCD, WMT, Sold Out:BHGE, For the details of GREENWOOD GEARHART INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GREENWOOD+GEARHART+INC These are the top 5 holdings of GREENWOOD GEARHART INC Diageo PLC ( DEO ) - 70,306 shares, 3.22% of the total portfolio. Shares reduced by 10.47% Johnson & Johnson ( JNJ ) - 59,201 shares, 2.99% of the total portfolio. Shares added by 0.64% New Purchase: Baker Hughes Inc (BHI) Greenwood Gearhart Inc initiated holdings in Baker Hughes Inc.
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Greenwood Gearhart Inc New Purchases: BHI , Added Positions: WFC , XOM , UN, JEC, IBM, CVS, AON, TRN, WBA, TSN, Reduced Positions:KO, AXP, MCD, WMT, Sold Out:BHGE, For the details of GREENWOOD GEARHART INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GREENWOOD+GEARHART+INC These are the top 5 holdings of GREENWOOD GEARHART INC Diageo PLC ( DEO ) - 70,306 shares, 3.22% of the total portfolio. The purchase prices were between $53.37 and $61.71, with an estimated average price of $57.6. The holdings were 49,861 shares as of 2017-06-30.
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293b9994-cbe8-4f14-bcec-05ecaf8a6ad7
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727948.0
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2017-08-08 00:00:00 UTC
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Diageo plc (DEO) Ex-Dividend Date Scheduled for August 09, 2017
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DEO
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https://www.nasdaq.com/articles/diageo-plc-deo-ex-dividend-date-scheduled-august-09-2017-2017-08-08
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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, 2017. A cash dividend payment of $2.022 per share is scheduled to be paid on October 11, 2017. Shareholders who purchased DEO prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 71.07% increase over prior dividend payment.
The previous trading day's last sale of DEO was $132.96, representing a -0.03% decrease from the 52 week high of $133 and a 33.68% increase over the 52 week low of $99.46.
DEO is a part of the Consumer Non-Durables sector, which includes companies such as Anheuser-Busch Inbev SA ( BUD ) and Coca-Cola Company ( KO ). Zacks Investment Research reports DEO's forecasted earnings growth in 2018 as 7.85%, compared to an industry average of 17.1%.
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.
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 7.85%, compared to an industry average of 17.1%. For more information on the declaration, record and payment dates, visit the DEO Dividend History page.
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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. Diageo plc ( DEO ) will begin trading ex-dividend on August 09, 2017. Shareholders who purchased DEO prior to the ex-dividend date are eligible for the cash dividend payment.
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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 $132.96, representing a -0.03% decrease from the 52 week high of $133 and a 33.68% increase over the 52 week low of $99.46. 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, 2017. 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 $132.96, representing a -0.03% decrease from the 52 week high of $133 and a 33.68% increase over the 52 week low of $99.46.
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6361c53d-0649-45b7-bcd3-f195fecc5a9f
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727949.0
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2017-08-02 00:00:00 UTC
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Roundtable: 1 Stock I Can't Wait to Buy on a Pullback
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DEO
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https://www.nasdaq.com/articles/roundtable-1-stock-i-cant-wait-buy-pullback-2017-08-02
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nan
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nan
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We don't often find ourselves hoping for stocks that we like -- or own -- to fall. But all of us have a price that's too high to pay, and three of our Foolish investors have identified stocks that they wouldn't mind taking a tumble, so that they can finally buy shares.
Of course, this is a double-edged sword: if the fall is caused by something that breaks the fundamental thesis behind owning shares, then all is lost. But our contributors have all identified scenarios in which the price could fall and they'd still want to buy shares of MercadoLibre (NASDAQ: MELI) , Align Technology (NASDAQ: ALGN) , or Diageo (NYSE: DEO) .
When Latin America falters, I'll be buying
Brian Stoffel(MercadoLibre): Few companies have all the things I look for in an investment: a mission-driven founder/CEO with skin in the game, a wide and growing moat, evidence of multiple futures, and a rock-solid balance sheet. But MercadoLibre -- a leading e-commerce and payment player in Latin America -- hits all those notes:
Marcos Galerpin founded the company in 1999 and is still CEO. He's only 46 and owns 9%of shares outstanding.
MercadoLibre has become the go-to marketplace in Latin America. Vendors know they need to use the platform to sell their goods, which attracts more buyers, which attracts more vendors, and so on. It's textbook network effect.
Strong Momentum at MercadoLibre
Infogram
While the marketplace has long been MercadoLibre's bread and butter, the company has shown it can chase after other growth avenues: Non-marketplace revenue has almost doubled in two years and now accounts for 42%of sales.
MercadoLibre has $736 million in cashand investments on hand, versus $305 million in debt. In addition, it has generated $234 million in free cash flow over the past year.
Add all of these factors together, and you have a stock I'm itching to buy again. Already, it accounts for over 4% of my real-life holdings, but I'm looking to add more. Today's price of 53 times free cash flow is a bit too rich for me, and I know that geopolitical volatility could easily send shares down at any time. When that time hits, I'll be waiting.
A premium portfolio at a premium price
Rich Duprey(Diageo): Distiller Diageo is trading at an all-time high, as drinkers continue to trade up to premium and super-premium brands.
In its just-reported quarter, organic growth in North America, Diageo's largest and most profitable market, grew 3% year over year. Whiskey brands such as Crown Royal and Bulleit enjoyed strong sales growth and market share gains for the period, helping to drive the segment higher. North American whiskey accounts for 9% of Diageo's net sales, and it grew 11% for the year. Its high-end tequila Don Julio grew net sales 20%, continuing to build on the momentum carrying over from last year, while Tanqueray gin and Baileys grew net sales and generated market share gains in their respective categories.
It is the rise of such super-premium spirits that led Diageo to drop $1 billion on George Clooney's Casamigos tequila . Although it has few sales in the U.S. and virtually nothing internationally, the distiller is banking on the movie star's name recognition to make it into a global brand. While Diageo paid only $700 million upfront, with the balance is reserved for when it hits certain performance targets, it's a steep price to pay even in a rising spirits market. The total price is a third of what Diageo was willing to pay for the Jose Cuervo brand family only a few years ago.
While the distiller probably was a bit starstruck, it doesn't change its overall prospects, which is probably why the market has bid its stock ever higher. Although it trades at 22 times earnings and 18 times next year's estimates, it also is valued at more than twice its sales and 57 times its free cash flow. Particularly after the bump it got after earnings, which pushed the stock up 25% in 2017, it's a bit pricey. If its stock pulls back, however, it would be a premium name that an investor could pour into a portfolio.
An alternative to metal braces
Brian Feroldi (Align Technology): Walk around any middle school in America and you're bound to see scores of kids with a mouthful of metal. That's because teeth misalignment is a common problem, and metal braces have been the go-to fix for decades. However, there are plenty of drawbacks to using metal braces, which dissuades many people from getting them.
That's where Align Technology comes in. The company developed the Invisalign system, which uses a series of clear aligners to fix a wide range of dental problems. Since the aligners are nearly invisible to others and can be temporarily removed by the user, they're a highly attractive alternative to braces. In response, demand from consumers and orthodontists alike has been huge , and Align's stock has been red-hot.
ALGN Total Return Price data by YCharts
Despite the run, I still see plenty of reasons to be bullish. Invisalign's overall market share is only about 10%, so there's ample room for growth in the United States. In addition, the company is awaiting FDA approval for its next-generation product that will be able to treat new types of dental problems. A thumbs-up will further expand its addressable market. Finally, international expansion is going well and remains a huge long-term opportunity for the business.
The only knock against Align Technology is that its stock is expensive. Shares are trading around 62 times trailing earnings, which I think is a tad bit too pricey for a company that is "only" expected to grow profits about 23% annually over the next five years. That's why I'm hoping for a sell-off so I can pick up a few shares of this wonderful business at a discount.
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 tripled 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 1, 2017
Brian Feroldi owns shares of MercadoLibre. Brian Stoffel owns shares of MercadoLibre. Rich Duprey has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Align Technology and MercadoLibre. 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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But our contributors have all identified scenarios in which the price could fall and they'd still want to buy shares of MercadoLibre (NASDAQ: MELI) , Align Technology (NASDAQ: ALGN) , or Diageo (NYSE: DEO) . When Latin America falters, I'll be buying Brian Stoffel(MercadoLibre): Few companies have all the things I look for in an investment: a mission-driven founder/CEO with skin in the game, a wide and growing moat, evidence of multiple futures, and a rock-solid balance sheet. Whiskey brands such as Crown Royal and Bulleit enjoyed strong sales growth and market share gains for the period, helping to drive the segment higher.
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But our contributors have all identified scenarios in which the price could fall and they'd still want to buy shares of MercadoLibre (NASDAQ: MELI) , Align Technology (NASDAQ: ALGN) , or Diageo (NYSE: DEO) . A premium portfolio at a premium price Rich Duprey(Diageo): Distiller Diageo is trading at an all-time high, as drinkers continue to trade up to premium and super-premium brands. Its high-end tequila Don Julio grew net sales 20%, continuing to build on the momentum carrying over from last year, while Tanqueray gin and Baileys grew net sales and generated market share gains in their respective categories.
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But our contributors have all identified scenarios in which the price could fall and they'd still want to buy shares of MercadoLibre (NASDAQ: MELI) , Align Technology (NASDAQ: ALGN) , or Diageo (NYSE: DEO) . Its high-end tequila Don Julio grew net sales 20%, continuing to build on the momentum carrying over from last year, while Tanqueray gin and Baileys grew net sales and generated market share gains in their respective categories. The Motley Fool owns shares of and recommends Align Technology and MercadoLibre.
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But our contributors have all identified scenarios in which the price could fall and they'd still want to buy shares of MercadoLibre (NASDAQ: MELI) , Align Technology (NASDAQ: ALGN) , or Diageo (NYSE: DEO) . That's right -- they think these 10 stocks are even better buys. The Motley Fool owns shares of and recommends Align Technology and MercadoLibre.
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614591dc-cb11-45b5-9415-a186fc6023d7
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727950.0
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2017-08-01 00:00:00 UTC
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Diageo Ends Its Financial Year On A High
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DEO
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https://www.nasdaq.com/articles/diageo-ends-its-financial-year-high-2017-08-01
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nan
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nan
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Diageo ( DEO ) reported a solid full-year earnings on July 27, for the year ended June 2017, exceeding consensus expectations. Its organic net sales growth of 4.3% was driven by organic volume growth and a strong price mix, reflecting broad-based growth across all the regions. These factors also helped to strengthen the operating margins, which improved by 119 basis points on a reported basis, and by 37 basis points on an organic basis.
Given the impressive performance of the company, the management has increased the productivity savings goal to £700 million from £500 million estimated earlier, two-thirds of which will be reinvested in the business. While the company continues to expect mid-single digit top line growth, it is raising the margin improvement guidance, provided earlier, to 175 bps for the three years ending FY 2019 (ending June 2019). The company is also launching a share buyback program of up to £1.5 billion in FY 2018, which should help give a boost to the bottom-line.
Performance of FY 2017 Focus Areas
1. Scotch
The sales of Scotch were up 5%, with the category forming a quarter of the company's net sales. The organic net sales growth was 4.7%, versus 0.4% in the previous year.
The Johnnie Walker brand represents 55% of the sales in this segment, and is back to upbeat growth rates.
Of the three biggest regions for this category, Asia Pacific and North America delivered accelerated growth. In Europe, the growth slowed down, driven by Great Britain and Benelux.
The company has undertaken a number of campaigns to drive the growth of this key category. DEO partnered with F1, enabling it to reach the 3.4 million visitors to the events each year; personalization of labels for gifting purposes was extended to 33 countries and 59 cities; the "Keep Walking America" campaign was launched in the US on the eve of the presidential election; a skywriting stunt was performed for the Johnnie Walker brand at the Coachella music festival.
The company also has brands across different price points in this segment, in order to accelerate growth even in emerging economies where premium scotch may not sell at a high rate.
2. US Spirits
Organic net sales of US Spirits grew by 3.4% in the year, driven by volume growth. However, they were held back by the performance of super premium vodka. Excluding this, the sales growth was 6.1%.
The company has taken a number of actions to drive the growth, such as increasing the marketing spend; improving the digital content; leveraging partnerships with Drizly, Uber, and Tasty; launching innovation variants of its brands; driving efficiencies to cut down costs, etc.
These actions have helped to drive growth of a number of its core brands such as Don Julio, Bulleit, and Buchanan's.
While the company's performance in this category has shown vast improvement since the negative growth seen in the six months ended December 2015, steps still need to be taken to improve its vodka brands, such as Smirnoff, Ciroc, and Ketel One.
3. India
Organic net sales growth of 1.9% was delivered in India, despite short term headwinds such as the demonetization policy implemented in November 2016, and the ban on the sale of liquor within 500 meters of a state highway. While the former should not impact the sales going forward, the negative impact of the latter may continue in the future, though by a much lesser extent.
Strong growth of the prestige and above brands continued this year driven by Scotch and the relaunching of certain brands.
The company was able to gain 20 basis points of spirits market share in the region (till May), with prestige and above brands gaining over 70 basis points of industry share.
Price increases, positive mix, and productivity savings helped to push the gross margins higher by 56 basis points.
The Goods and Service Tax ( GST ) implemented in the country, which went live in July, should have an impact on the margins in the future, as a result of higher tax rates on packaging material, molasses, and services, partially offset by reduced input costs.
In the medium term (by FY 2019), the company aims to improve organic operating margins to the mid-high teens.
See Our Complete Analysis For Diageo Here
Have more questions on Diageo? See the links below:
Weakness Of The Pound Helps Diageo Beat Estimates
Why Are We Bullish On Diageo?
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Diageo Takes Inspiration From Japan To Revive South Korea's Whiskey Market
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Diageo .
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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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DEO partnered with F1, enabling it to reach the 3.4 million visitors to the events each year; personalization of labels for gifting purposes was extended to 33 countries and 59 cities; the "Keep Walking America" campaign was launched in the US on the eve of the presidential election; a skywriting stunt was performed for the Johnnie Walker brand at the Coachella music festival. Diageo ( DEO ) reported a solid full-year earnings on July 27, for the year ended June 2017, exceeding consensus expectations. The company also has brands across different price points in this segment, in order to accelerate growth even in emerging economies where premium scotch may not sell at a high rate.
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Diageo ( DEO ) reported a solid full-year earnings on July 27, for the year ended June 2017, exceeding consensus expectations. DEO partnered with F1, enabling it to reach the 3.4 million visitors to the events each year; personalization of labels for gifting purposes was extended to 33 countries and 59 cities; the "Keep Walking America" campaign was launched in the US on the eve of the presidential election; a skywriting stunt was performed for the Johnnie Walker brand at the Coachella music festival. Its organic net sales growth of 4.3% was driven by organic volume growth and a strong price mix, reflecting broad-based growth across all the regions.
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Diageo ( DEO ) reported a solid full-year earnings on July 27, for the year ended June 2017, exceeding consensus expectations. DEO partnered with F1, enabling it to reach the 3.4 million visitors to the events each year; personalization of labels for gifting purposes was extended to 33 countries and 59 cities; the "Keep Walking America" campaign was launched in the US on the eve of the presidential election; a skywriting stunt was performed for the Johnnie Walker brand at the Coachella music festival. Its organic net sales growth of 4.3% was driven by organic volume growth and a strong price mix, reflecting broad-based growth across all the regions.
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Diageo ( DEO ) reported a solid full-year earnings on July 27, for the year ended June 2017, exceeding consensus expectations. DEO partnered with F1, enabling it to reach the 3.4 million visitors to the events each year; personalization of labels for gifting purposes was extended to 33 countries and 59 cities; the "Keep Walking America" campaign was launched in the US on the eve of the presidential election; a skywriting stunt was performed for the Johnnie Walker brand at the Coachella music festival. Its organic net sales growth of 4.3% was driven by organic volume growth and a strong price mix, reflecting broad-based growth across all the regions.
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67ce04aa-7bd6-4402-b22e-c2b69be44173
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727951.0
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2017-07-31 00:00:00 UTC
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Diageo (DEO) FY17 Earnings: Sales and Productivity Go Up
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DEO
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https://www.nasdaq.com/articles/diageo-deo-fy17-earnings%3A-sales-and-productivity-go-up-2017-07-31
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nan
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nan
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Diageo plcDEO reported preliminary fiscal 2017 results ending Jun 30, wherein earnings gained 21.0% (in local currency) year over year. This was backed by increased organic profit, associate income and favorable currency exchange which more than offset the impacts of tax rate and disposals.
Fiscal 2017 Highlights
On a reported basis, net sales as well as operating profits moved up 15% and 25%, respectively, owing to organic growth and favorable exchange rates.
Broad-based organic sales increased 4.3%, gaining from contributions from all regions, while organic volume grew 1.1%. The progress in top line as well as productivity had favorably impacted the organic operating profit, which grew 5.6% and was partially offset by one-off items and implementation costs. Further, free cash flows also rem
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Diageo plcDEO reported preliminary fiscal 2017 results ending Jun 30, wherein earnings gained 21.0% (in local currency) year over year. This was backed by increased organic profit, associate income and favorable currency exchange which more than offset the impacts of tax rate and disposals. Fiscal 2017 Highlights On a reported basis, net sales as well as operating profits moved up 15% and 25%, respectively, owing to organic growth and favorable exchange rates.
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Diageo plcDEO reported preliminary fiscal 2017 results ending Jun 30, wherein earnings gained 21.0% (in local currency) year over year. This was backed by increased organic profit, associate income and favorable currency exchange which more than offset the impacts of tax rate and disposals. Broad-based organic sales increased 4.3%, gaining from contributions from all regions, while organic volume grew 1.1%.
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Diageo plcDEO reported preliminary fiscal 2017 results ending Jun 30, wherein earnings gained 21.0% (in local currency) year over year. This was backed by increased organic profit, associate income and favorable currency exchange which more than offset the impacts of tax rate and disposals. Fiscal 2017 Highlights On a reported basis, net sales as well as operating profits moved up 15% and 25%, respectively, owing to organic growth and favorable exchange rates.
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Diageo plcDEO reported preliminary fiscal 2017 results ending Jun 30, wherein earnings gained 21.0% (in local currency) year over year. This was backed by increased organic profit, associate income and favorable currency exchange which more than offset the impacts of tax rate and disposals. Broad-based organic sales increased 4.3%, gaining from contributions from all regions, while organic volume grew 1.1%.
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20b81fe9-7f81-4645-9cc0-c76e42742fdd
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727952.0
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2017-07-28 00:00:00 UTC
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Diageo plc (DEO) in Focus: Stock Moves 5.5% Higher
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DEO
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https://www.nasdaq.com/articles/diageo-plc-deo-in-focus%3A-stock-moves-5.5-higher-2017-07-28
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nan
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nan
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Diageo plc DEO was a big mover last session, as the company saw its shares rise nearly 6% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This stock, which remained volatile and traded within the range of $118.20 -$121.75 in the past one-month time frame, witnessed a sharp increase yesterday.
The move came after the company reported solid second-quarter 2017 results.
The company has seen no estimate revisions over the past one month, and the Zacks Consensus Estimate for the current quarter has also remained unchanged. The recent price action is encouraging though, so make sure to keep a close watch on this firm in the near future.
Diageo currently has a Zacks Rank #3 (Hold) while its Earnings ESP is 0.00%.
Diageo PLC Price
Diageo PLC Price | Diageo PLC Quote
A better-ranked stock in the Beverages - Alcoholindustry is Heineken NV HEINY , which currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Is DEO going up? Or down? Predict to see what others think: Up or Down
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 trillionaries,"" 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
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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Diageo plc DEO was a big mover last session, as the company saw its shares rise nearly 6% on the day. Is DEO going up? Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Heineken NV (HEINY): 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 Heineken NV (HEINY): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc DEO was a big mover last session, as the company saw its shares rise nearly 6% on the day. Is DEO going up?
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Diageo plc DEO was a big mover last session, as the company saw its shares rise nearly 6% on the day. Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report To read this article on Zacks.com click here. Is DEO going up?
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Diageo plc DEO was a big mover last session, as the company saw its shares rise nearly 6% on the day. Is DEO going up? Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report Heineken NV (HEINY): Free Stock Analysis Report To read this article on Zacks.com click here.
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49c126c7-3946-43ef-a9eb-6d7742cf5806
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727953.0
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2017-07-28 00:00:00 UTC
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Validea Warren Buffett Strategy Daily Upgrade Report - 7/28/2017
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DEO
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https://www.nasdaq.com/articles/validea-warren-buffett-strategy-daily-upgrade-report-7282017-2017-07-28
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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.
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 68% 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
Since its inception, Validea's strategy based on Warren Buffett has returned 161.32% vs. 133.20% 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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DIAGEO PLC (ADR) ( DEO ) is a large-cap growth stock in the Beverages (Alcoholic) industry. The following are today's upgrades for Validea's Patient Investor model based on the published strategy of Warren Buffett. 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.
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DIAGEO PLC (ADR) ( DEO ) is a large-cap growth stock in the Beverages (Alcoholic) industry. The following are today's upgrades for Validea's Patient Investor model based on the published strategy of Warren Buffett. 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.
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DIAGEO PLC (ADR) ( DEO ) is a large-cap growth stock in the Beverages (Alcoholic) industry. 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. 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 161.32% vs. 133.20% for the S&P 500.
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DIAGEO PLC (ADR) ( DEO ) is a large-cap growth stock in the Beverages (Alcoholic) industry. The following are today's upgrades for Validea's Patient Investor model based on the published strategy of Warren Buffett. The rating according to our strategy based on Warren Buffett changed from 68% to 82% based on the firm's underlying fundamentals and the stock's valuation.
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bdbccab6-bd8b-4499-b604-c3859ab51802
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727954.0
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2017-07-28 00:00:00 UTC
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Scotch Sales Drive Diageo plc Growth
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DEO
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https://www.nasdaq.com/articles/scotch-sales-drive-diageo-plc-growth-2017-07-28
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nan
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nan
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Sales of spirits are surging around the world and Diageo plc (NYSE: DEO) is one of the largest beneficiaries of the industry's growth. The company has a leading position in scotch with Johnnie Walker and the new gin trend with Tanqueray.
On Thursday, Diageo reported fiscal 2017 results, which gave investors their first look at financials since midyear. Here are the big takeaways.
Diageo plc : The raw numbers
*In pounds. Data Source: Diageo fiscal 2017 earnings release.
What happened with Diageo plc this quarter?
Results were impacted heavily by currency, but underneath that was a business that showed remarkably broad-based growth across product lines and geographies.
Currency exchange gains accounted for 1.36 billion pounds of growth in the quarter. When you pull out the currency benefits from a weak pound, organic volume growth was 1.1% in the quarter and overall organic growth was 4.3%. That's up from flat organic sales growth in 2015 and 2.8% growth in 2016.
Scotch was the biggest contributor to growth with a 4.7% organic growth figure. U.S. spirits and India organic growth were 3.4% and 1.9%, respectively.
Every region around the world had revenue growth for Diageo. Latin America and the Caribbean grew fastest at 9%, but Africa had the second-fastest growth at 5%. Every region grew at least 3%.
In fiscal 2017, free cash flow increased to 2.66 billion pounds, up from 2.10 billion pounds a year earlier.
The board of directors approved a 1.5 billion-pound buyback program for fiscal 2018.
What management had to say
Management said the company's focus on high-end products and efficiency are really paying off in the spirits market. Diageo is trying to replicate some of the success in the scotch business in gin and tequila in 2018. That's highlighted by the acquisition of Casamigos for as much as $1 billion. The hope is that this will be another high-margin growth product going forward.
The focus in fiscal 2018 will be on margins. Management has a goal of increasing operating margins by 175 basis points for the three years ended in fiscal 2019. That could drive bottom-line growth even further.
Looking forward
The global spirits business is growing slowly but surely and Diageo is well-positioned to capture incredible value in the market. Its focus on scotch has been a big strength the last few years and it doesn't look to be losing steam anytime soon. With broad growth across the world, Diageo can focus on efficiency and that should lead to long-term profit growth for investors.
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*Stock Advisor returns as of July 6, 2017
Travis Hoium has no position in any 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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Sales of spirits are surging around the world and Diageo plc (NYSE: DEO) is one of the largest beneficiaries of the industry's growth. Results were impacted heavily by currency, but underneath that was a business that showed remarkably broad-based growth across product lines and geographies. Looking forward The global spirits business is growing slowly but surely and Diageo is well-positioned to capture incredible value in the market.
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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. Sales of spirits are surging around the world and Diageo plc (NYSE: DEO) is one of the largest beneficiaries of the industry's growth. What management had to say Management said the company's focus on high-end products and efficiency are really paying off in the spirits market.
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Sales of spirits are surging around the world and Diageo plc (NYSE: DEO) is one of the largest beneficiaries of the industry's growth. When you pull out the currency benefits from a weak pound, organic volume growth was 1.1% in the quarter and overall organic growth was 4.3%. Scotch was the biggest contributor to growth with a 4.7% organic growth figure.
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Sales of spirits are surging around the world and Diageo plc (NYSE: DEO) is one of the largest beneficiaries of the industry's growth. The focus in fiscal 2018 will be on margins. With broad growth across the world, Diageo can focus on efficiency and that should lead to long-term profit growth for investors.
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58af388b-fcc8-41b1-8969-213daa3f471f
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727955.0
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2017-07-26 00:00:00 UTC
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TAP vs. SAM: Which Is the Better Beer Stock Ahead of Earnings?
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DEO
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https://www.nasdaq.com/articles/tap-vs-sam-which-better-beer-stock-ahead-earnings-2017-07-26
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nan
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nan
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According to a recent Gallup poll, beer continues to be the most favored alcoholic beverage in the U.S. The poll conducted early this month reveals that 40% of alcohol consumers prefer beer, compared to 30% who prefer wine and 26% who have voted for liquor. These findings come at a time when it is widely being held that millennials prefer to consumer wine over beer.
The Gallup poll findings clearly show that if this is indeed the case, beer is not going to give up its dominance of the alcoholic beverages space in a hurry. This is a consumer staples category for which demand remains steady regardless of the current economic situation. In this context, earnings of beer companies scheduled for release over this week and the next, including Anheuser-Busch InBev SA/NV BUD and Diageo plc DEO , assume greater significance.
With The Boston Beer Company, Inc. SAM scheduled to report on Jul 27 and the Molson Coors Brewing Company TAP reporting on Aug 2, this may be a good time to consider which of these is a better stock. While Molson Coors has a Zacks Rank #3 (Hold), Boston Beer carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Price Performance
Both Boston Beer and Molson Coors have performed poorly over the last three months, a period during which the Zacks categorized Alcoholic Beverages industry has gained 3.6%. However, while Molson Coors has lost 7.5% over this time period, Boston Beer has only declined by 4.5%, making it the better choice on this count.
Valuation
The price to sales ratio is particularly relevant in a consumer focused industry whose fortunes are dictated by the ebb and flow of sales. This ratio indicates that market value of each of the company's sales dollars.
Net Margin
Profitability ratios acquire greater importance in an industry characterized by low margins. Net margin is a good metric to compare the profitability of companies within the same industry, since they are bound by the same business constraints.
Debt-to-Equity Ratio
The debt-to-equity ratio is a good indicator of the financial well-being of a company and is a good proxy for its debt servicing capacity. In the context of the beer industry, it is an indicator of the company's long-term sustainability. Since Boston Beer utilizes a negligible amount of debt, or no bet to fund its operations, it has a debt-to-equity ratio of 0. In contrast, Molson Coor's debt-to-equity ratio of 104.03 is alarmingly high, which means Boston Beer easily wins this round.
Asset Turnover Ratio
Since the beer industry is essentially characterized by low margins and high volumes, activity ratios are extremely important when determining the health of a company. All activity ratios are geared toward gauging a company's ability to convert various heads under its balance sheet into sales or cash. The asset turnover ratio examines the level of efficiency with which a company utilizes its assets to conduct sales.
Quick Ratio
Considered to be a conservative measure of liquidity, the quick ratio gauges as to how liquid the current position of a company is. In other words, it measures the extent to which liquid current assets can service current liabilities. The measure is conservative since it does not take into account current assets which are relatively less liquid such as inventory.
Earnings History and ESP
When considering Earnings ESP , there is nothing to choose from between the two stocks with both having readings of 0. However, taking into account a more comprehensive earnings history, Molson Coors has delivered a positive surprise in only one of the four preceding quarters and has an average earnings surprise of -22.6%. Boston Beer is better on this count, since it has delivered positive earnings surprises in three out of the four prior quarters. Further, it has an average earnings surprise of 30.6%.
Conclusion
Our comparative analysis shows that Molson Coors holds an edge over Boston Beer when considering price-to-sales ratio. But on all other counts Boston Beer has a clear edge. Not only does it have a relatively better price performance and superior earnings history, it is better placed when considering net margin, debt-to-equity, asset turnover and quick ratios. With a better Zacks Rank #2, Boston Beer is clearly placed better than Molson Coors ahead of earnings.
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Molson Coors Brewing Company (TAP): Free Stock Analysis Report
Diageo PLC (DEO): Free Stock Analysis Report
Anheuser-Busch Inbev SA (BUD): Free Stock Analysis Report
Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report
To read this article on Zacks.com click 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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In this context, earnings of beer companies scheduled for release over this week and the next, including Anheuser-Busch InBev SA/NV BUD and Diageo plc DEO , assume greater significance. Click to get this free report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Anheuser-Busch Inbev SA (BUD): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report To read this article on Zacks.com click here. The Gallup poll findings clearly show that if this is indeed the case, beer is not going to give up its dominance of the alcoholic beverages space in a hurry.
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Click to get this free report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Anheuser-Busch Inbev SA (BUD): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report To read this article on Zacks.com click here. In this context, earnings of beer companies scheduled for release over this week and the next, including Anheuser-Busch InBev SA/NV BUD and Diageo plc DEO , assume greater significance. While Molson Coors has a Zacks Rank #3 (Hold), Boston Beer carries a Zacks Rank #2 (Buy).
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Click to get this free report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Anheuser-Busch Inbev SA (BUD): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report To read this article on Zacks.com click here. In this context, earnings of beer companies scheduled for release over this week and the next, including Anheuser-Busch InBev SA/NV BUD and Diageo plc DEO , assume greater significance. With The Boston Beer Company, Inc. SAM scheduled to report on Jul 27 and the Molson Coors Brewing Company TAP reporting on Aug 2, this may be a good time to consider which of these is a better stock.
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In this context, earnings of beer companies scheduled for release over this week and the next, including Anheuser-Busch InBev SA/NV BUD and Diageo plc DEO , assume greater significance. Click to get this free report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Anheuser-Busch Inbev SA (BUD): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report To read this article on Zacks.com click here. The asset turnover ratio examines the level of efficiency with which a company utilizes its assets to conduct sales.
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c4795264-0fe7-44a3-a61a-43c0b550859c
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727956.0
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2017-07-26 00:00:00 UTC
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Global Brands To Drive Revenue Growth For Anheuser-Busch In The Second Quarter
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DEO
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https://www.nasdaq.com/articles/global-brands-drive-revenue-growth-anheuser-busch-second-quarter-2017-07-26
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nan
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nan
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Anheuser-Busch InBev ( BUD ) is slated to report its second quarter earnings on July 27, marking the third time the company will be addressing its shareholders since finalizing the merger with SABMiller. In the last quarter, BUD delivered a miss on its earnings, and this trend has been continuing in the past four quarters. The question, therefore, on everyone's minds is whether the company can deliver a positive surprise this time around. The company is on track with its integration of SABMiller, and divesting some of its assets as part of the merger deal. Despite the divestitures, the combined company holds the top spot in the beer industry, accounting for 30% of the industry's sales, and 46% of the profits. Below we'll highlight certain trends taking place, which may have an impact on the company's earnings.
1. Synergies From The Merger
The company continues to deliver synergies from the combination with SABMiller.
In the first quarter, BUD delivered synergies of $252 million, with a large portion of the synergies coming from best practice sharing.
BUD expects the delivery of $2.8 billion worth of recurring synergies and cost savings, on a constant currency basis, over the next three to four years.
This involves one-off cash costs of ~$900 million, to be incurred in the first three years of the deal closing, of which $318 million has been spent till date.
2. Importance Of Global Brands
The combined revenues for the three global brands - Budweiser, Corona, and Stella Artois - grew by 12.1% in the first quarter, and this strong growth is expected to continue in this quarter as well.
Budweiser revenues grew by 7.3%, with 16.4% growth in revenues outside of the US. Stella Artois revenues grew by 21.1%, driven mainly by growth in the US and Argentina. Corona had a solid quarter as well, with revenues growing 18.2%, with 48.2% growth in revenues outside of Mexico, as a result of strong growth in Western Europe and China.
The company continues to fuel the growth of these brands by leveraging their enormous commercial platforms, while also expanding to new markets such as Australia, Peru, Colombia, and South Africa.
3. Diversifying Its Portfolio
BUD recently announced the acquisition of organic energy drink maker Hiball, which is expected to close in the third quarter of this year.
While this is a small deal ( Hiball has 20 employees and had sales of $40 million in the past 12 months ), it is newsworthy as it implies a move towards non-beer categories. The company may also want to jump on the organic/natural drinks bandwagon.
Anheuser has the distribution network to make Hiball increase its scale immensely.
The company already sells carbonated soft drinks in the Latin American market, where it is a bottler for PepsiCo.
BUD also struck a deal with Starbucks last year to make, bottle, and distribute the ready-to-drink Teavana tea line.
The company is also trying to make in-roads in the craft beer industry, with partnerships with 10 craft breweries.
Have more questions on Anheuser-Busch InBev? See the links below.
Here's How AB InBev Trimmed Business To Make Room For SABMiller
The Year That Was: Anheuser-Busch InBev
Brazil Slowdown Weighs On AB InBev's Financials, As Earnings Decline By More Than Expected
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Anheuser-Busch InBev
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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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Anheuser-Busch InBev ( BUD ) is slated to report its second quarter earnings on July 27, marking the third time the company will be addressing its shareholders since finalizing the merger with SABMiller. The company continues to fuel the growth of these brands by leveraging their enormous commercial platforms, while also expanding to new markets such as Australia, Peru, Colombia, and South Africa. Diversifying Its Portfolio BUD recently announced the acquisition of organic energy drink maker Hiball, which is expected to close in the third quarter of this year.
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Synergies From The Merger The company continues to deliver synergies from the combination with SABMiller. Importance Of Global Brands The combined revenues for the three global brands - Budweiser, Corona, and Stella Artois - grew by 12.1% in the first quarter, and this strong growth is expected to continue in this quarter as well. For precise figures, please refer to our complete analysis for Anheuser-Busch InBev See More at Trefis |View Interactive Institutional Research(Powered by Trefis) Get Trefis Technology 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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Anheuser-Busch InBev ( BUD ) is slated to report its second quarter earnings on July 27, marking the third time the company will be addressing its shareholders since finalizing the merger with SABMiller. Importance Of Global Brands The combined revenues for the three global brands - Budweiser, Corona, and Stella Artois - grew by 12.1% in the first quarter, and this strong growth is expected to continue in this quarter as well. Here's How AB InBev Trimmed Business To Make Room For SABMiller The Year That Was: Anheuser-Busch InBev Brazil Slowdown Weighs On AB InBev's Financials, As Earnings Decline By More Than Expected Notes: 1) The purpose of these analyses is to help readers focus on a few important things.
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Anheuser-Busch InBev ( BUD ) is slated to report its second quarter earnings on July 27, marking the third time the company will be addressing its shareholders since finalizing the merger with SABMiller. Synergies From The Merger The company continues to deliver synergies from the combination with SABMiller. Importance Of Global Brands The combined revenues for the three global brands - Budweiser, Corona, and Stella Artois - grew by 12.1% in the first quarter, and this strong growth is expected to continue in this quarter as well.
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f99863eb-a5a3-441d-aa63-ac29e4d3e2e1
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727957.0
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2017-07-09 00:00:00 UTC
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Starstruck Diageo Is Blowing $1 Billion on Hollywood Tequila
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DEO
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https://www.nasdaq.com/articles/starstruck-diageo-blowing-1-billion-hollywood-tequila-2017-07-09
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nan
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nan
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Diageo (NYSE: DEO) must have stars in its eyes if it really thinks George Clooney's tequila, Casamigos, is worth a third of what the company was willing to pay for the entire house of Cuervo. Although a case could be made that the approximately $1 billion purchase price for the high-end tequila brand will pay off, it's more likely Diageo is going to wake up one morning with a very severe hangover and regrets about last night's bar tab.
There's no doubt tequila is the hot drink of the moment. Fortune points out that high-end tequila sales have surged 365% over the past decade, while vodka is up 143%, and bourbon, which was one of the biggest winners last year, has risen only 282%. Yet that also indicates that consumer tastes are always changing.
Cycling through spirits
Only a few years ago, it was the high-end vodka market that was pushing super-premium labels like Diageo's Ciroc to become a $100 million brand. As more women began drinking liquor, fruit-infused and candy-flavored vodkas helped expand the category so it comprised more than a third of the entire spirits segment.
But now, whiskey is undergoing a similar metamorphosis, due in large part to the popularity of flavored whiskies like the cinnamon-flavored Fireball and Brown-Forman 's honey-flavored Jack Daniel's brand, Tennessee Honey. The "browns" of the market are enjoying tremendous popularity with the Distilled Spirits Council of the U.S. (DISCUS) saying that 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%.
It should be noted that DISCUS puts the growth rate for premium tequila sales at a decidedly slower pace than Fortune did. It says tequila volumes in the U.S. grew from 795,000 9-liter cases in 2006 to 1.6 million cases last year, or about 105%. Super-premium tequila sales grew 142% in the same period. It does note that high-end and super-premium sales are witnessing the fastest growth, coming out of relative obscurity in 2002 to sell 4.5 million cases last year, but they're still only 40% of the sales of value and premium tequilas.
No tequila sunrise
This is why Diageo's purchase of Casamigos is going to be hard to swallow. In its announcement of the acquisition, Diageo says the high-end tequila sold 120,000 cases last year and is expected to sell 170,000 cases in 2017. Casamigos had virtually no sales whatsoever outside of the U.S., giving it the potential to greatly expand through international sales.
Still, that doesn't necessarily justify the price. When Diageo's distribution agreement with Casa Cuervo expired in 2013, it was reportedly willing to buy the entire family-owned business for $3 billion. While Cuervo represented a comparatively small portion of the distiller's top line, it still contributed net sales of $484 million and operating profit of $119 million.
Casamigos doesn't offer much of anything except the Clooney name. While the headline purchase price of $1 billion is a bit of a misnomer, since only $700 million will be paid upfront, with an additional $300 million in earn-outs paid over the next 10 years if the company hits unspecified performance goals, it's still a pricey acquisition for a brand with relatively insignificant sales.
Going down hot
Diageo ended up acquiring the high-end Don Julio tequila from Cuervo almost two years after splitting with Cuervo in a brand swap that saw it also receive $408 million in exchange for its Bushmills Irish whisky. Don Julio has since become one of Diageo's best brands.
Maybe that's why the company feels another high-end brand can make similar gains, but its previous deals with celebrities , such as with rap impresario Sean Combs for the super-premium tequila brand DeLeon, don't seem to have moved the needle much and in fact, contributed a nearly $12 million operating loss last year.
It's possible George Clooney's star power can generate enough sales to warrant the price tag (and earn-outs), but it seems equally probable that consumers will have moved on to the next new thing in spirits by then, and all Diageo will have to show for its drunken tequila binge will be a cool tattoo.
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 tripled 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 5, 2017.
Rich Duprey has no position in any 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) must have stars in its eyes if it really thinks George Clooney's tequila, Casamigos, is worth a third of what the company was willing to pay for the entire house of Cuervo. Although a case could be made that the approximately $1 billion purchase price for the high-end tequila brand will pay off, it's more likely Diageo is going to wake up one morning with a very severe hangover and regrets about last night's bar tab. But now, whiskey is undergoing a similar metamorphosis, due in large part to the popularity of flavored whiskies like the cinnamon-flavored Fireball and Brown-Forman 's honey-flavored Jack Daniel's brand, Tennessee Honey.
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Diageo (NYSE: DEO) must have stars in its eyes if it really thinks George Clooney's tequila, Casamigos, is worth a third of what the company was willing to pay for the entire house of Cuervo. Although a case could be made that the approximately $1 billion purchase price for the high-end tequila brand will pay off, it's more likely Diageo is going to wake up one morning with a very severe hangover and regrets about last night's bar tab. The "browns" of the market are enjoying tremendous popularity with the Distilled Spirits Council of the U.S. (DISCUS) saying that 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.
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Diageo (NYSE: DEO) must have stars in its eyes if it really thinks George Clooney's tequila, Casamigos, is worth a third of what the company was willing to pay for the entire house of Cuervo. It does note that high-end and super-premium sales are witnessing the fastest growth, coming out of relative obscurity in 2002 to sell 4.5 million cases last year, but they're still only 40% of the sales of value and premium tequilas. Going down hot Diageo ended up acquiring the high-end Don Julio tequila from Cuervo almost two years after splitting with Cuervo in a brand swap that saw it also receive $408 million in exchange for its Bushmills Irish whisky.
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Diageo (NYSE: DEO) must have stars in its eyes if it really thinks George Clooney's tequila, Casamigos, is worth a third of what the company was willing to pay for the entire house of Cuervo. Cycling through spirits Only a few years ago, it was the high-end vodka market that was pushing super-premium labels like Diageo's Ciroc to become a $100 million brand. Going down hot Diageo ended up acquiring the high-end Don Julio tequila from Cuervo almost two years after splitting with Cuervo in a brand swap that saw it also receive $408 million in exchange for its Bushmills Irish whisky.
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c2f9ab69-4604-4b30-a313-4deb02f615b5
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727958.0
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2017-07-03 00:00:00 UTC
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A Foolish Take: Americans Are Drinking Less Beer and More Liquor
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DEO
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https://www.nasdaq.com/articles/foolish-take-americans-are-drinking-less-beer-and-more-liquor-2017-07-03
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nan
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nan
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The U.S. alcohol industry is a steady slow-growth market, but consumer tastes have changed since the dawn of the new millennium. That shift is illustrated in the following chart, based on data from the Distilled Spirits Council of the United States.
The council attributes the growth of spirits to millennials, who are drinking more whiskey instead of beer. That shift helped boost total shipments of spirits by 2.4% to 220 million cases in 2016.
That change is encouraging for leading spirits makers like Diageo (NYSE: DEO) , the maker of Johnnie Walker, and Brown-Forman , which sells Jack Daniels . But it's less encouraging for beer breweries like Anheuser-Busch InBev (NYSE: BUD) and Molson Coors , as they're already struggling with a market shift away from their mainstream brands toward craft beers.
Investors should expect more market consolidation, like AB InBev's takeover of SABMiller for over $100 billion, as well as acquisitions of popular craft beers and high-growth spirit brands (Diageo's recent purchase of George Clooney's Casamigos tequila brand is one prominent example). There will also be continued emphasis on premium brands across the industry.
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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!*
Tom and David just revealed their ten top stock picks for investors to buy right now.
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* Stock Advisor returns as of June 5, 2017.
Leo Sun has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Anheuser-Busch InBev NV. 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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That change is encouraging for leading spirits makers like Diageo (NYSE: DEO) , the maker of Johnnie Walker, and Brown-Forman , which sells Jack Daniels . The U.S. alcohol industry is a steady slow-growth market, but consumer tastes have changed since the dawn of the new millennium. That shift is illustrated in the following chart, based on data from the Distilled Spirits Council of the United States.
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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. That change is encouraging for leading spirits makers like Diageo (NYSE: DEO) , the maker of Johnnie Walker, and Brown-Forman , which sells Jack Daniels . In fact, the newsletter they run, Motley Fool Stock Advisor , has tripled the S&P 500!
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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. That change is encouraging for leading spirits makers like Diageo (NYSE: DEO) , the maker of Johnnie Walker, and Brown-Forman , which sells Jack Daniels . Investors should expect more market consolidation, like AB InBev's takeover of SABMiller for over $100 billion, as well as acquisitions of popular craft beers and high-growth spirit brands (Diageo's recent purchase of George Clooney's Casamigos tequila brand is one prominent example).
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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. That change is encouraging for leading spirits makers like Diageo (NYSE: DEO) , the maker of Johnnie Walker, and Brown-Forman , which sells Jack Daniels . But it's less encouraging for beer breweries like Anheuser-Busch InBev (NYSE: BUD) and Molson Coors , as they're already struggling with a market shift away from their mainstream brands toward craft beers.
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295f3ffb-d80e-4a81-a397-80c115be439b
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727959.0
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2017-06-30 00:00:00 UTC
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Diversification Is Becoming More Important Than Ever
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DEO
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https://www.nasdaq.com/articles/diversification-becoming-more-important-ever-2017-06-30
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nan
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nan
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The importance of diversification in investing cannot be understated.
Many famous investors have made their reputations because of highly concentrated investing, which does tend to skew the diversification argument. You could ask if Buffett doesn't need to diversify and never has, why should I? The simple answer is that you are not Buffett and should not try to be, but other investors have also advised taking the same approach when building a portfolio.
All of the above investment professionals are highly skilled at their art and therefore can take more risk in their portfolios than we mere mortals. Nonetheless, there is an important point to be made here. Diversification is important no matter what you may hear from the talking heads on CNBC and legendary investors. And it is only becoming more important as disruption continues to destabilize established industries.
Most companies fail
A report published by JPMorgan ( JPM ) at the beginning of 2017 highlighted just how important it is to have a diversified portfolio.
The report highlighted figures showing that, between 1980 and 2014, roughly 40% of all stocks in the Russell 3000 suffered permanent 70% declines from their peak values. Further data shows the median stock returns since its inception versus an investment in the Russell 3000 in the period 1980 to 2015 were -54%. Two-thirds of all stocks underperformed vs. the Russell 3000 Index, and for 40% of all stocks, their absolute returns were negative.
What's more, over 320 companies were deleted from the Standard & Poor's 500 for distressed reasons between 1980 and 2014.
These figures are concrete evidence that it is better to be diversified than not. Of course, the opposing argument to this is that, if you are a good stock picker, you don't need to be diversified. That's true, but how many investors really are excellent stock pickers? How many investors have there been in history that have consistently achieved market-beating returns by picking the market's best stocks?
Of all the tens of thousands of investors out there, Buffett is probably the only one with such a record; others have been successful for several decades, which is a commendable achievement, but none have the record of the Oracle of Omaha.
More important than ever
The concept of diversification is only gaining in importance as disruption gains traction. Technology is impacting almost every industry and companies that have been established for decades are suddenly finding themselves being overrun by smaller upstarts.
Established financial services companies are being forced to diversify as technology erodes margins. Big oil is struggling to cut costs fast enough as technology has improved the margins possible from shale extraction. Consumer goods companies such as Diageo ( DEO ) and Coca-Cola ( KO ) are facing pressure from new upstarts that have been able to raise seed funding to take on these industry giants quickly. I'm not saying Coca-Cola will fall anytime soon, but this is an example of how companies that were previously thought to have wide and deep moats are now finding themselves competing for market share.
Against this backdrop it is going to be even more important for investors to diversify to ensure that their portfolios are protected from disruption and, at the same time, achieve the best results without a permanent impairment of capital.
Disclosure: The author owns no stock mentioned.
Premium Members
This article first appeared on GuruFocus .
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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Consumer goods companies such as Diageo ( DEO ) and Coca-Cola ( KO ) are facing pressure from new upstarts that have been able to raise seed funding to take on these industry giants quickly. I'm not saying Coca-Cola will fall anytime soon, but this is an example of how companies that were previously thought to have wide and deep moats are now finding themselves competing for market share. Against this backdrop it is going to be even more important for investors to diversify to ensure that their portfolios are protected from disruption and, at the same time, achieve the best results without a permanent impairment of capital.
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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. Consumer goods companies such as Diageo ( DEO ) and Coca-Cola ( KO ) are facing pressure from new upstarts that have been able to raise seed funding to take on these industry giants quickly. The report highlighted figures showing that, between 1980 and 2014, roughly 40% of all stocks in the Russell 3000 suffered permanent 70% declines from their peak values.
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Consumer goods companies such as Diageo ( DEO ) and Coca-Cola ( KO ) are facing pressure from new upstarts that have been able to raise seed funding to take on these industry giants quickly. Most companies fail A report published by JPMorgan ( JPM ) at the beginning of 2017 highlighted just how important it is to have a diversified portfolio. More important than ever The concept of diversification is only gaining in importance as disruption gains traction.
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Consumer goods companies such as Diageo ( DEO ) and Coca-Cola ( KO ) are facing pressure from new upstarts that have been able to raise seed funding to take on these industry giants quickly. Many famous investors have made their reputations because of highly concentrated investing, which does tend to skew the diversification argument. You could ask if Buffett doesn't need to diversify and never has, why should I?
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4c01118b-34b7-472b-a708-1a5a85fa52ab
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727960.0
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2017-06-26 00:00:00 UTC
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Stock Market News for June 26, 2017
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DEO
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https://www.nasdaq.com/articles/stock-market-news-for-june-26-2017-2017-06-26
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Energy shares bounced back on Friday, sending S&P 500 and the Nasdaq higher. Additionally, gain in shares of tech stalwarts such as Apple, Facebook and Microsoft boosted the broader markets. Meanwhile, the Dow finished marginally lower dragged down primarily by financials. Separately, investors digested the new-home sales data released by U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article.
The Dow Jones Industrial Average (DJI) declined 2.53 points to close at 21,394.76. The S&P 500 advanced 0.2% to close at 2,438.30. The tech-heavy Nasdaq Composite Index advanced 0.5% to finish at 6,265.25. The Dow, the S&P 500 and Nasdaq have advanced 8.3%, 8.9% and 16.4% respectively on a year to date basis. The fear-gauge CBOE Volatility Index (VIX) traded near 10 on Friday. Advancers outnumbered declining stocks on the NYSE by a 1.96 to 1 ratio.
Energy Shares Recover
Oil prices recouped on Friday to settle at $43.01 a barrel, an increase of $0.27, or 0.6%. Oil prices posted its only gain of the week, recovering from its lowest level since August last year. As per John Kilduff, founding partner of Again Capital, the IHS Markit U.S. Output Composite index declined to post a three-month low, sending crude prices higher on Friday.
The increase in oil prices had a positive impact on the energy shares, which in turn had a positive impact on the broader markets. The broader Energy Select Sector SPDR (XLE) advanced 0.7%, emerging as the best performing sector of S&P 500. Some of its key holdings, including Exxon Mobil Corp XOM and Chevron Corp CVX increased 0.7% and 0.5% respectively.
Technology Shares Boost Nasdaq
Shares of large cap companies including Apple AAPL , Facebook FB and Microsoft MSFT advanced on Friday pushing the Nasdaq higher. Both Facebook and Microsoft recorded a gain of more than one percent, while Apple's shares finished 0.5% higher. Investors appeared to have recovered their faith in tech shares following the tech selloff in past two weeks.
The broader Technology Select Sector SPDR (XLK) advanced 0.6%, emerging as one of the best performing sector of S&P 500. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Financials and Healthcare Decline
Financials continued to decline on Friday as rightly pointed out by CIO of Bryn Mawr Trust, Ernie Cecilia. Ernie said that "Financials have been under pressure lately because of the yield curve flattening."
Additionally, investors digested comment from St. Louis Fed President James Bullard on Friday. Bullard commented that the central bank should refrain from raising interest rates as the economy seems to be trapped in a "low growth, low-inflation and low-interest-rate regime."
The broader Financials Select Sector SPDR (XLF) declined 0.4%, which had an adverse impact on the broader markets. Some of its key holdings, including US Bancorp USB and Goldman Sachs Group Inc GS fell 1% and 1.2% respectively.
Meanwhile, healthcare shares were also down on Friday. Healthcare shares declined after posting strong gain on Thursday following the release of the Senate health care Bill. The broader Health Care Select Sector SPDR (XLV) declined 0.2%.
Economic Data
As per the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, new-home sales in May were recorded at a seasonally adjusted annual rate of 610,000 against the consensus estimate of 596,000. The figure increased 2.9% from the revised April rate of 593,000.
Weekly Roundup
For the week, the Dow, S&P 500, the Nasdaq registered a gain of 0.1% and 0.2% and 1.8% respectively. Healthcare shares posted gain following the release of Senate's Healthcare Bill, aimed to repeal key sections of Obama's Affordable Care Act. Trump's tax plan spurring waves of buyouts, innovation reaching exponential levels and drug price outrage easing out. ( Read More )
Meanwhile, Existing-home sales increased by 1.1% to a seasonally adjusted annual rate of 5.62 million in May from a revised figure of 5.56 million in the previous month. Separately, President Emmanuel Macron secured a comfortable victory in the final round of voting in parliamentary elections.
Stocks that made Headlines
CBS Shows to Feature in fuboTV's Live Streaming TV Service
CBS Corporation CBS has reached an agreement with the leading sports streaming service provider fuboTV that will enable it to live-stream the U.S.'s most-watched broadcast network, CBS sports and entertainment channels. ( Read More )
Diageo Strengthens Tequila Category with Casamigos Buyout
Diageo plc DEO is set to acquire the U.S. fastest-growing premium tequila brand, Casamigos, in a deal worth $1 billion. ( Read More )
The Best & Worst of Zacks
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U.S. Bancorp (USB): Free Stock Analysis Report
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Diageo PLC (DEO): Free Stock Analysis Report
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Chevron Corporation (CVX): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): 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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( Read More ) Diageo Strengthens Tequila Category with Casamigos Buyout Diageo plc DEO is set to acquire the U.S. fastest-growing premium tequila brand, Casamigos, in a deal worth $1 billion. Click to get this free report U.S. Bancorp (USB): Free Stock Analysis Report CBS Corporation (CBS): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. As per John Kilduff, founding partner of Again Capital, the IHS Markit U.S. Output Composite index declined to post a three-month low, sending crude prices higher on Friday.
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Click to get this free report U.S. Bancorp (USB): Free Stock Analysis Report CBS Corporation (CBS): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. ( Read More ) Diageo Strengthens Tequila Category with Casamigos Buyout Diageo plc DEO is set to acquire the U.S. fastest-growing premium tequila brand, Casamigos, in a deal worth $1 billion. Separately, investors digested the new-home sales data released by U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
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Click to get this free report U.S. Bancorp (USB): Free Stock Analysis Report CBS Corporation (CBS): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. ( Read More ) Diageo Strengthens Tequila Category with Casamigos Buyout Diageo plc DEO is set to acquire the U.S. fastest-growing premium tequila brand, Casamigos, in a deal worth $1 billion. Technology Shares Boost Nasdaq Shares of large cap companies including Apple AAPL , Facebook FB and Microsoft MSFT advanced on Friday pushing the Nasdaq higher.
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( Read More ) Diageo Strengthens Tequila Category with Casamigos Buyout Diageo plc DEO is set to acquire the U.S. fastest-growing premium tequila brand, Casamigos, in a deal worth $1 billion. Click to get this free report U.S. Bancorp (USB): Free Stock Analysis Report CBS Corporation (CBS): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. Oil prices posted its only gain of the week, recovering from its lowest level since August last year.
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67eb96f8-cbf4-4aa1-b12e-c5322f8bd89e
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727961.0
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2017-06-26 00:00:00 UTC
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Is Diageo Paying Too Much For George Clooney's Tequila Brand?
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DEO
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https://www.nasdaq.com/articles/diageo-paying-too-much-george-clooneys-tequila-brand-2017-06-26
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nan
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nan
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We should never underestimate the financial power of celebrity. Latest case in point: Diageo 's (NYSE: DEO) deal to acquire Casamigos Spirits, a maker of high-end tequila co-founded by actor George Clooney. Diageo is on the hook for up to $1 billion for the brand, making it one heck of a pricey bottle. Here are the particulars of the deal, and why Diageo thinks Casamigos is so valuable.
A drink with George
Diageo will pay $700 million up front for Casamigos Spirits, with up to an additional $300 million in performance-linked earn-outs over the next 10 years.
The brand was founded in 2013 by Clooney and a pair of his friends. It offers three tequilas -- blanco, resposado, and anejo. If ordered on Casamigos' web site, these will set a drinker back $95, $105, and $115, respectively, per 1.75 liter bottle.
According to Diageo, in 2016 Casamigos sold roughly 120,000 cases of tequila last year, giving the brand a 54% compound annual growth rate over two years. The liquor powerhouse continues to expect strong double-digit growth; it says the brand should sell around 170,000 cases this year.
That growth is encouraging, but Casamigos' direct association with a celebrity might have been more of a pull. Diageo made sure to point out that the tequila purveyor's founders will, as the company says, "continue to promote the brand and provide their leadership and vision."
"We are delighted that the founders will have continued involvement and active participation in the future success of Casamigos," it added. "This, combined with the strengths of Diageo, will ensure the continued momentum of the brand in the US as well as realising the growth opportunity from international expansion."
It didn't specifically mention Clooney in that blurb, nor did it say whether the still-bankable actor will participate in the brand's marketing activities going forward. Whether he does or not, though, he will still be linked to and strongly associated with Casamigos.
This Fool's take
It isn't very often that a company has a chance to buy a brand with a virtually locked-in celebrity presence. So we can understand the attraction of this facet of Casamigos' business. We're in the Age of Celebrity after all, and fame at the Clooney level certainly adds some value.
We've also witnessed a few big-ticket shopping excursions from liquor purveyors. Witness the acquisitiveConstellation Brands ' (NYSE: STZ) apparently rebuffed buyout offer to Jack Daniel's maker Brown-Forman earlier this year; Constellation was willing and clearly able to acquire a company that had a market capitalization in the neighborhood of $20 billion.
Although the Casamigos deal is relatively modest next to Constellation's attempt, I'm not convinced it's worth it. Yes, Casamigos is growing at an admirable rate, but we have to remember that this is from a low baseline -- after all, the company is not even five years old. Plus, as a high-end specialty brand, its appeal (and hence its upside) is limited. Connoisseurs form only a small part of the overall tequila market.
We can make a crude, back-of-the-napkin projection here. Diageo's projected 170,000 cases times the $240 or so retail price of Casamigos' reposado tequila yields under $41 million. The real take will be less, of course, factoring in the wholesale discount and other sales expenses. Diageo's ultimate profit (or loss) naturally depends on the costs of making and bottling the stuff, which probably aren't cheap given its premium status.
This means that, even at healthy growth rates, it's going to take at best quite a long time for Diageo to recoup its spend on Casamigos. I'm not sure the company's shareholders should be thrilled about this buy, no matter how much star power it brings.
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 tripled 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 5, 2017
Eric Volkman has no position in any 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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Latest case in point: Diageo 's (NYSE: DEO) deal to acquire Casamigos Spirits, a maker of high-end tequila co-founded by actor George Clooney. Witness the acquisitiveConstellation Brands ' (NYSE: STZ) apparently rebuffed buyout offer to Jack Daniel's maker Brown-Forman earlier this year; Constellation was willing and clearly able to acquire a company that had a market capitalization in the neighborhood of $20 billion. Diageo's ultimate profit (or loss) naturally depends on the costs of making and bottling the stuff, which probably aren't cheap given its premium status.
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Latest case in point: Diageo 's (NYSE: DEO) deal to acquire Casamigos Spirits, a maker of high-end tequila co-founded by actor George Clooney. According to Diageo, in 2016 Casamigos sold roughly 120,000 cases of tequila last year, giving the brand a 54% compound annual growth rate over two years. Diageo's projected 170,000 cases times the $240 or so retail price of Casamigos' reposado tequila yields under $41 million.
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Latest case in point: Diageo 's (NYSE: DEO) deal to acquire Casamigos Spirits, a maker of high-end tequila co-founded by actor George Clooney. According to Diageo, in 2016 Casamigos sold roughly 120,000 cases of tequila last year, giving the brand a 54% compound annual growth rate over two years. Diageo made sure to point out that the tequila purveyor's founders will, as the company says, "continue to promote the brand and provide their leadership and vision."
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Latest case in point: Diageo 's (NYSE: DEO) deal to acquire Casamigos Spirits, a maker of high-end tequila co-founded by actor George Clooney. According to Diageo, in 2016 Casamigos sold roughly 120,000 cases of tequila last year, giving the brand a 54% compound annual growth rate over two years. The liquor powerhouse continues to expect strong double-digit growth; it says the brand should sell around 170,000 cases this year.
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0b76575c-6bb1-400a-b190-1583c5070b1d
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727962.0
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2017-06-22 00:00:00 UTC
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Why Diageo Is Paying $1 Billion for George Clooney's Tequila
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DEO
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https://www.nasdaq.com/articles/why-diageo-paying-1-billion-george-clooneys-tequila-2017-06-22
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nan
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nan
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OK, to be fair, spirits giant Diageo plc (NYSE: DEO) is actually only paying $700 million for Casamigos, a tequila company owned by none other than actor George Clooney and two of his friends. The other $300 million represents potential earn-outs over the next 10 years based on the achievement of performance milestones. But still, even the base consideration is quite a haul for a very new -- and very small -- craft tequila maker.
Casamigos, or "house of friends," was founded by Clooney and partners Rande Gerber and Mike Meldman in 2013. According to Diageo, the brand sold 120,000 cases of tequila in 2016, primarily in the U.S., and should pass 170,000 cases by the end of 2017.
Why would Diageo pay what seems to be a vast sum in exchange for the minuscule number of cases moved so far? Sales growth provides at least part of the answer. Per the company, Casamigos' volume has improved at a compounded annual growth rate (CAGR) of 54% over the last two years. Inevitably, this rate will slow, but it does point to the brand's potential to win market share.
Moreover, tequila is heating up among more traditional alternatives in the spirits category. The tequila market in the U.S. is projected to expand at a CAGR of nearly 4% through 2020. While this may not seem like a blistering rate, consider that brands which can grow at a faster pace than the tequila sector will post CAGRs in the mid- to high-single digits. That constitutes pretty attractive growth in the overall alcoholic beverage industry.
Tactically, the purchase helps Diageo populate the brand layer positioned below "ultra-premium" spirits (such as its Johnnie Walker and Crown Royal labels): its fast-growing "super-premium" beverages.
It's also indicative of growing consumer interest in the tequila market, which shows a lot promise for long-term global expansion. Diageo purchased the ultra-premium Tequila Don Julio in 2015, and this latest deal seems to reinforce its intent to participate in a beverage sector increasingly popular among millennials.
An evolving approach to premium spirits revenue
Purchasing and scaling a rapidly growing brand through a massive distribution system like Diageo's is an increasingly common play among a handful of beer, wine, and spirits companies.
Constellation Brands (NYSE: STZ) notably employed a similar strategy when it bought Ballast Point Brewing & Spirits for a cool $1 billion in late 2015 . At the time, the enormous valuation for a small but award-winning brewery raised eyebrows.
Yet since the acquisition, Constellation has increased the California brewery's nationwide volume by extending production to its own manufacturing facilities. Additionally, Ballast Point just opened a new brewery location in Daleville, Virginia, this month, to scale the East Coast presence of popular beers like Sculpin India Pale Ale.
The well-regarded Ballast Point platform enabled Constellation to realize its ambitions to become a dominant player in the high-end craft beer segment. It also created a transaction reference point for a few lucky companies like Casamigos.
As for this billion-dollar price point, it's important to understand that for an alcoholic beverage giant like Constellation or Diageo, a fledgling beverage start-up represents future value rather than a return on investment for current case volume.
Still, it's inherently difficult to project the future cash flows of these tiny labels, which could nonetheless become sought-after global bottles, given the right marketing and distribution push. Tellingly, Diageo doesn't even expect Casamigos to be accretive to earnings for another three years.
In this transaction, you also have to factor in the intangible value of Clooney's star power. By tying in the last $300 million to financial milestones, Diageo is ensuring that Clooney stays vested in Casamigos' success.
As a brand ambassador with international recognition, Clooney reinforces the "aspirational" character of Casamigos to potential customers. When you couple 10 years' worth of his endorsement with the resources of the world's largest spirits company, chances are decent that volume could ramp up significantly over the long term. As I noted above, these acquisitions are extremely difficult to quantify when the returns are predicated on uncertain future value. But in this particular case, the deal size is probably justified.
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 tripled 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 5, 2017
Asit Sharma has no position in any 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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OK, to be fair, spirits giant Diageo plc (NYSE: DEO) is actually only paying $700 million for Casamigos, a tequila company owned by none other than actor George Clooney and two of his friends. Tactically, the purchase helps Diageo populate the brand layer positioned below "ultra-premium" spirits (such as its Johnnie Walker and Crown Royal labels): its fast-growing "super-premium" beverages. Additionally, Ballast Point just opened a new brewery location in Daleville, Virginia, this month, to scale the East Coast presence of popular beers like Sculpin India Pale Ale.
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OK, to be fair, spirits giant Diageo plc (NYSE: DEO) is actually only paying $700 million for Casamigos, a tequila company owned by none other than actor George Clooney and two of his friends. Diageo purchased the ultra-premium Tequila Don Julio in 2015, and this latest deal seems to reinforce its intent to participate in a beverage sector increasingly popular among millennials. As for this billion-dollar price point, it's important to understand that for an alcoholic beverage giant like Constellation or Diageo, a fledgling beverage start-up represents future value rather than a return on investment for current case volume.
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OK, to be fair, spirits giant Diageo plc (NYSE: DEO) is actually only paying $700 million for Casamigos, a tequila company owned by none other than actor George Clooney and two of his friends. An evolving approach to premium spirits revenue Purchasing and scaling a rapidly growing brand through a massive distribution system like Diageo's is an increasingly common play among a handful of beer, wine, and spirits companies. As for this billion-dollar price point, it's important to understand that for an alcoholic beverage giant like Constellation or Diageo, a fledgling beverage start-up represents future value rather than a return on investment for current case volume.
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OK, to be fair, spirits giant Diageo plc (NYSE: DEO) is actually only paying $700 million for Casamigos, a tequila company owned by none other than actor George Clooney and two of his friends. Per the company, Casamigos' volume has improved at a compounded annual growth rate (CAGR) of 54% over the last two years. The well-regarded Ballast Point platform enabled Constellation to realize its ambitions to become a dominant player in the high-end craft beer segment.
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5086138b-ccfb-460c-9bd1-b105c1d5d063
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727963.0
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2017-06-21 00:00:00 UTC
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George Clooney Sells Tequila Company to Diageo for $1 Billion
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DEO
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https://www.nasdaq.com/articles/george-clooney-sells-tequila-company-diageo-1-billion-2017-06-21
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nan
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nan
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In a case that seems to prove the thesis that one must have money to make money, Hollywood mega-star George Clooney has reportedly sold his "Casamigos" tequila brand to liquor behemoth Diageo DEO for a cool $1 billion.
According to CNBC , a source familiar with the matter confirmed the deal, and Clooney responded via email by saying that the buyout "reflects Diageo's belief in our company and our belief in Diageo."
"But we're not going anywhere. We'll still be very much a part of Casamigos. Starting with a shot tonight. Maybe two," Clooney added.
CNBC also said that the deal will include an initial payment of $700 million, followed by a potential $300 million more based on the company's performance over the next decade. The report indicated that the acquisition will close in the second half of this year.
Besides Clooney, Casamigos is owned by Rande Gerber, a founder of several nightlife companies, and Michael Meldman, a real estate mogul.
Diageo is one of the world's largest alcoholic beverage companies, and it will add Casamigos to a liquor portfolio that includes Smirnoff, Johnnie Walker, J&B, Gordon's, Malibu, and Baileys.
It's been an interesting stretch for the tequila industry, which has watched consumer preference shift towards premium brands like Casamigos. Earlier this year, Jose Cuervo, the world's largest tequila maker, debuted on the Mexican stock market after years of attempting to increase its premium choices in the U.S (also read: Tequila Maker Jose Cuervo Announces $1 Billion IPO ).
Want morestock market analysisfrom this author? Make sure to follow @ Ryan_McQueeney on Twitter!
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Diageo PLC (DEO): Free Stock Analysis Report
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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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In a case that seems to prove the thesis that one must have money to make money, Hollywood mega-star George Clooney has reportedly sold his "Casamigos" tequila brand to liquor behemoth Diageo DEO for a cool $1 billion. Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report To read this article on Zacks.com click here. Besides Clooney, Casamigos is owned by Rande Gerber, a founder of several nightlife companies, and Michael Meldman, a real estate mogul.
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In a case that seems to prove the thesis that one must have money to make money, Hollywood mega-star George Clooney has reportedly sold his "Casamigos" tequila brand to liquor behemoth Diageo DEO for a cool $1 billion. Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report To read this article on Zacks.com click here. Earlier this year, Jose Cuervo, the world's largest tequila maker, debuted on the Mexican stock market after years of attempting to increase its premium choices in the U.S (also read: Tequila Maker Jose Cuervo Announces $1 Billion IPO ).
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In a case that seems to prove the thesis that one must have money to make money, Hollywood mega-star George Clooney has reportedly sold his "Casamigos" tequila brand to liquor behemoth Diageo DEO for a cool $1 billion. Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report To read this article on Zacks.com click here. Earlier this year, Jose Cuervo, the world's largest tequila maker, debuted on the Mexican stock market after years of attempting to increase its premium choices in the U.S (also read: Tequila Maker Jose Cuervo Announces $1 Billion IPO ).
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In a case that seems to prove the thesis that one must have money to make money, Hollywood mega-star George Clooney has reportedly sold his "Casamigos" tequila brand to liquor behemoth Diageo DEO for a cool $1 billion. Click to get this free report Diageo PLC (DEO): Free Stock Analysis Report To read this article on Zacks.com click here. The report indicated that the acquisition will close in the second half of this year.
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983b4be8-5432-4e5c-9ca6-b76d543dacdb
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727964.0
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2017-06-14 00:00:00 UTC
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3 Growth Stocks for Those Moving Up in the World
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DEO
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https://www.nasdaq.com/articles/3-growth-stocks-those-moving-world-2017-06-14
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nan
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nan
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Investors put their capital at risk for the sole purpose of generating wealth over time. So which stocks can help them achieve their goal? We asked that question to a team of Fools, and they picked Diageo (NYSE: DEO) , Marriott International (NASDAQ: MAR) , and Under Armour (NYSE: UA) (NYSE: UAA) .
Playing the boom in high-end spirits
Travis Hoium ( Diageo ): Sometimes the best way to profit from global trends is to follow what's popular with those who are making the most money (or acting like it). Today, one of the biggest trends globally is toward high-end spirits, which makes Diageo a great investment.
Diageo has amassed a dominant position in the spirits business, with the Johnnie Walker line of scotches, Ciroc vodka, and Crown Royal and Bulleit whiskeys. Results can be choppy quarter to quarter, but long-term growing demand for high-end spirits is driving cash flow and earnings higher.
DEO Net Income (TTM) data by YCharts
As the beer and spirits businesses consolidate, there will be a small number of companies with the scale to operate profitably on a global scale. And that size means they can exert control over distribution and retail, eking out higher and higher profits along the way.
It's hard to tell what brands or products will be popular next year, much less a decade or two from now. But I would bet that Diageo will remain a power in the spirits business, and that brands such as Johnnie Walker will continue to be popular and profitable, a lot longer than the latest hot tech company will. And that's the kind of investment those moving up in the world should love.
Check in to growth
Demitri Kalogeropoulo s ( Marriott ): Marriott represents a great way for investors to gain exposure to a healthy, and growing, travel industry. The hotel chain's latest results beat management's expectations thanks to stronger travel demand both in the core U.S. market and in its international divisions. Marriott posted a 3% increase in revenue per available room (RevPAR) in the first quarter, compared with the 2% uptick executives had forecast. That growth combined with rising profitability and stronger fee revenue to push adjusted earnings up a healthy 10%. "We are pleased by our performance in the quarter across the board," CEO Arne Sorenson said in a press release.
Sorenson and his team raised the full-year growth target in response to these brightening operating trends. Marriott now sees RevPAR rising by between 1% and 3% worldwide, up from the prior range of between 0.5% and 2.5%.
That steady growth should speed up over time, with help from the newly acquired Starwood business that's helped Marriott gain significant scale in the industry. Meanwhile, its already deep portfolio of properties will continue to expand deeper into established markets and branch out into new ones. The company is on track to add 6% more rooms to its base in 2017 and has a packed pipeline of projects set to aggressively increase its guest capacity in future years.
An emerging powerhouse brand
Brian Feroldi ( Under Armour ): Consumers worldwide are usually willing to pay a premium to get their hands on brand-name apparel. Successful consumer brands such as Nike and Adidas have proved it for decades. One company that I think is poised to eventually match the success of those two industry giants is Under Armour.
Under Armour's brand looked red hot for years, as it posted quarter after quarter of at least 20% revenue growth. Its stock roared to new heights as investors assumed that its success was inevitable. However, Wall Street turned sour on the company after it posted back -to- back quarters of disappointing sales growth.
Has the company's brand lost its luster? Possibly, but the more likely culprit is the recent bankruptcies of several prominent retailers. After all, it's awfully hard to grow when a few of your big retail partners go belly-up. What's more, the company's results look much better across the pond. Last quarter, Under Armour's international sales grew by 57% when currencies are held constant. That performance hints that the company's brand is stronger than the market is currently assuming.
Under Armour recently forged new retail partnerships with Kohl's and DSW that should help revive the company's sluggish North American sales. Footwear also continues to look poised for growth, and its recent entry into the $12.5 billion sportswear market could be a big opportunity for the business.
I think there are plenty of reasons to remain optimistic about Under Armour's future. With shares trading at a discount, now could be an opportune time for growth investors to consider getting in.
10 stocks we like better than Under Armour (A Shares)
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 Under Armour (A Shares) 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 5, 2017
Brian Feroldi owns shares of Nike, Under Armour (A Shares), and Under Armour (C Shares). Demitrios Kalogeropoulos owns shares of Nike, Under Armour (A Shares), and Under Armour (C Shares). Travis Hoium has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Marriott International, Nike, Under Armour (A Shares), and Under Armour (C Shares). The Motley Fool recommends 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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We asked that question to a team of Fools, and they picked Diageo (NYSE: DEO) , Marriott International (NASDAQ: MAR) , and Under Armour (NYSE: UA) (NYSE: UAA) . DEO Net Income (TTM) data by YCharts As the beer and spirits businesses consolidate, there will be a small number of companies with the scale to operate profitably on a global scale. Diageo has amassed a dominant position in the spirits business, with the Johnnie Walker line of scotches, Ciroc vodka, and Crown Royal and Bulleit whiskeys.
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We asked that question to a team of Fools, and they picked Diageo (NYSE: DEO) , Marriott International (NASDAQ: MAR) , and Under Armour (NYSE: UA) (NYSE: UAA) . DEO Net Income (TTM) data by YCharts As the beer and spirits businesses consolidate, there will be a small number of companies with the scale to operate profitably on a global scale. Check in to growth Demitri Kalogeropoulo s ( Marriott ): Marriott represents a great way for investors to gain exposure to a healthy, and growing, travel industry.
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We asked that question to a team of Fools, and they picked Diageo (NYSE: DEO) , Marriott International (NASDAQ: MAR) , and Under Armour (NYSE: UA) (NYSE: UAA) . DEO Net Income (TTM) data by YCharts As the beer and spirits businesses consolidate, there will be a small number of companies with the scale to operate profitably on a global scale. *Stock Advisor returns as of June 5, 2017 Brian Feroldi owns shares of Nike, Under Armour (A Shares), and Under Armour (C Shares).
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We asked that question to a team of Fools, and they picked Diageo (NYSE: DEO) , Marriott International (NASDAQ: MAR) , and Under Armour (NYSE: UA) (NYSE: UAA) . DEO Net Income (TTM) data by YCharts As the beer and spirits businesses consolidate, there will be a small number of companies with the scale to operate profitably on a global scale. But I would bet that Diageo will remain a power in the spirits business, and that brands such as Johnnie Walker will continue to be popular and profitable, a lot longer than the latest hot tech company will.
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5809704d-d6e3-4c69-8ba1-b89a521b553d
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727965.0
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2017-06-12 00:00:00 UTC
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In a Game-Changer, the NFL Adopts a New Policy on Liquor Ads
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DEO
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https://www.nasdaq.com/articles/game-changer-nfl-adopts-new-policy-liquor-ads-2017-06-12
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nan
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nan
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The National Football League is abandoning a long-held advertising ban on distilled spirits in a test that will run during the 2017 season, though the change is likely to be permanent.
For the first time, television networks will be allowed to air commercials for hard liquor, in a move to expand beyond the historical choices of beer brewers and automakers, according to The Wall Street Journal (subscription required). The ban had been the result of concerns regarding linking football players and teams with hard liquor and its potential effects on young fans.
This change does come with conditions, however. The NFL will only allow four 30-second distilled-spirits ads in each game, with no more than two in a
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The National Football League is abandoning a long-held advertising ban on distilled spirits in a test that will run during the 2017 season, though the change is likely to be permanent. For the first time, television networks will be allowed to air commercials for hard liquor, in a move to expand beyond the historical choices of beer brewers and automakers, according to The Wall Street Journal (subscription required). The ban had been the result of concerns regarding linking football players and teams with hard liquor and its potential effects on young fans.
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The National Football League is abandoning a long-held advertising ban on distilled spirits in a test that will run during the 2017 season, though the change is likely to be permanent. For the first time, television networks will be allowed to air commercials for hard liquor, in a move to expand beyond the historical choices of beer brewers and automakers, according to The Wall Street Journal (subscription required). The ban had been the result of concerns regarding linking football players and teams with hard liquor and its potential effects on young fans.
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The National Football League is abandoning a long-held advertising ban on distilled spirits in a test that will run during the 2017 season, though the change is likely to be permanent. For the first time, television networks will be allowed to air commercials for hard liquor, in a move to expand beyond the historical choices of beer brewers and automakers, according to The Wall Street Journal (subscription required). The ban had been the result of concerns regarding linking football players and teams with hard liquor and its potential effects on young fans.
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The National Football League is abandoning a long-held advertising ban on distilled spirits in a test that will run during the 2017 season, though the change is likely to be permanent. For the first time, television networks will be allowed to air commercials for hard liquor, in a move to expand beyond the historical choices of beer brewers and automakers, according to The Wall Street Journal (subscription required). The ban had been the result of concerns regarding linking football players and teams with hard liquor and its potential effects on young fans.
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4144dd84-b0d1-4a2d-aa67-7227e16ed3f0
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727966.0
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2017-05-16 00:00:00 UTC
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Greenwood Gearhart Inc Buys Leggett & Platt Inc, CVS Health Corp, Procter & Gamble Co, ...
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DEO
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https://www.nasdaq.com/articles/greenwood-gearhart-inc-buys-leggett-platt-inc-cvs-health-corp-procter-gamble-co-2017-05-16
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nan
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nan
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Greenwood Gearhart Inc
New Purchases: LEG ,
Added Positions: CVS , XOM , WBA, UN, WFC, COP, AON, RDS.A, SJM, CVX,
Reduced Positions:JEC, JBHT, GLW, MCD, TSN,
For the details of GREENWOOD GEARHART INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GREENWOOD+GEARHART+INC
These are the top 5 holdings of GREENWOOD GEARHART INC
Wal-Mart Stores Inc ( WMT ) - 120,945 shares, 3.27% of the total portfolio. Shares reduced by 0.11%
Diageo PLC ( DEO ) - 69,846 shares, 3.03% of the total portfolio. Shares added by 2.79%
Loews Corp ( L ) - 160,650 shares, 2.82% of the total portfolio. Shares added by 3.91%
Johnson & Johnson ( JNJ ) - 58,928 shares, 2.75% of the total portfolio. Shares added by 3.34%
Apple Inc ( AAPL ) - 50,441 shares, 2.72% of the total portfolio. Shares added by 3.71%
New Purchase: Leggett & Platt Inc (LEG)
Greenwood Gearhart Inc initiated holdings in Leggett & Platt Inc. The purchase prices were between $46.99 and $50.58, with an estimated average price of $48.84. The stock is now traded at around $51.78. The impact to the portfolio due to this purchase was 0.23%. The holdings were 12,000 shares as of 2017-03-31.
Added: CVS Health Corp (CVS)
Greenwood Gearhart Inc added to the holdings in CVS Health Corp by 20.95%. The purchase prices were between $74.8 and $83.92, with an estimated average price of $79.83. The stock is now traded at around $79.25. The impact to the portfolio due to this purchase was 0.17%. The holdings were 33,722 shares as of 2017-03-31.
Added: Procter & Gamble Co (PG)
Greenwood Gearhart Inc added to the holdings in Procter & Gamble Co by 35.48%. The purchase prices were between $83.49 and $91.67, with an estimated average price of $88.67. The stock is now traded at around $86.74. The impact to the portfolio due to this purchase was 0.03%. The holdings were 3,994 shares as of 2017-03-31.
Warning! GuruFocus has detected 1 Warning Sign with CVS. Click here to check it out.
CVS 15-Year Financial Data
The intrinsic value of CVS
Peter Lynch Chart of CVS
Premium Members
This article first appeared on GuruFocus .
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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Shares reduced by 0.11% Diageo PLC ( DEO ) - 69,846 shares, 3.03% of the total portfolio. Greenwood Gearhart Inc New Purchases: LEG , Added Positions: CVS , XOM , WBA, UN, WFC, COP, AON, RDS.A, SJM, CVX, Reduced Positions:JEC, JBHT, GLW, MCD, TSN, For the details of GREENWOOD GEARHART INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GREENWOOD+GEARHART+INC These are the top 5 holdings of GREENWOOD GEARHART INC Wal-Mart Stores Inc ( WMT ) - 120,945 shares, 3.27% of the total portfolio. Shares added by 3.71% New Purchase: Leggett & Platt Inc (LEG) Greenwood Gearhart Inc initiated holdings in Leggett & Platt Inc.
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Shares reduced by 0.11% Diageo PLC ( DEO ) - 69,846 shares, 3.03% of the total portfolio. Greenwood Gearhart Inc New Purchases: LEG , Added Positions: CVS , XOM , WBA, UN, WFC, COP, AON, RDS.A, SJM, CVX, Reduced Positions:JEC, JBHT, GLW, MCD, TSN, For the details of GREENWOOD GEARHART INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GREENWOOD+GEARHART+INC These are the top 5 holdings of GREENWOOD GEARHART INC Wal-Mart Stores Inc ( WMT ) - 120,945 shares, 3.27% of the total portfolio. Shares added by 3.71% New Purchase: Leggett & Platt Inc (LEG) Greenwood Gearhart Inc initiated holdings in Leggett & Platt Inc.
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Shares reduced by 0.11% Diageo PLC ( DEO ) - 69,846 shares, 3.03% of the total portfolio. Greenwood Gearhart Inc New Purchases: LEG , Added Positions: CVS , XOM , WBA, UN, WFC, COP, AON, RDS.A, SJM, CVX, Reduced Positions:JEC, JBHT, GLW, MCD, TSN, For the details of GREENWOOD GEARHART INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GREENWOOD+GEARHART+INC These are the top 5 holdings of GREENWOOD GEARHART INC Wal-Mart Stores Inc ( WMT ) - 120,945 shares, 3.27% of the total portfolio. Shares added by 2.79% Loews Corp ( L ) - 160,650 shares, 2.82% of the total portfolio.
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Shares reduced by 0.11% Diageo PLC ( DEO ) - 69,846 shares, 3.03% of the total portfolio. The holdings were 12,000 shares as of 2017-03-31. Added: CVS Health Corp (CVS) Greenwood Gearhart Inc added to the holdings in CVS Health Corp by 20.95%.
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bfaf3da2-6b11-4ccc-a473-b5488d9cf777
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727967.0
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2017-05-15 00:00:00 UTC
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The 3 Best Dividend Stocks in the Alcohol Industry
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DEO
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https://www.nasdaq.com/articles/3-best-dividend-stocks-alcohol-industry-2017-05-15
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nan
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nan
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Alcohol stocks are often considered non-cyclical and recession-resistant plays. But in 2015, annual global alcohol consumption dipped for the first time in nearly two decades, and the industry faces new headwinds like growing craft beer brands and the threat of higher import taxes.
Yet alcohol stocks still remain fairly reliable investments for conservative investors, and several of the top names in the industry are also dependable dividend plays. Let's examine three beer stocks which can definitely cover your beer tab every year with their dividends.
Anheuser Busch InBev
Anheuser Busch InBev (NYSE: BUD) is the world's largest brewer. The Belgium-based company was created from the mergers of Interbrew in Belgium, AmBev in Brazil, Anheuser-Busch in the U.S., and SABMiller in London. InBev's massive portfolio now includes top brands like Budweiser, Michelob, Stella Artois, Foster's, Cass, and Hoegaarden. To counter the market shift toward craft beer brands, InBev acquired popular craft beers like Karbach, Goose Island, Blue Point, Elysian, and Golden Road over the past few years.
InBev's quarterly revenue has risen by over 30% annually over the last two quarters, and Wall Street expects it to post 26% growth this year. However, most of that growth can be attributed to the completion of its merger with SABMiller last October. Its earnings are expected to jump 49% this year.
But after those annual comparisons normalize, analysts expect InBev's revenue and earnings to respectively rise 4% and 15% next year, fueled by the ongoing "premiumization" of its top beers. That bottom line growth should give it plenty of room to continue its seven year streak of dividend hikes. InBev currently pays a forward dividend yield of 3.6%. Its payout ratio currently exceeds 100% due to the SABMiller purchase, but it should drop to more sustainable levels after its operations are fully integrated.
Diageo
London-based Diageo 's (NYSE: DEO) portfolio of alcoholic beverages includes Johnnie Walker, Crown Royal, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness. Its vodka, rum, and ready-to-drink sales have been tepid this year, but that softness was offset by robust sales of spirits and beers.
Diageo's revenue rose 14.5% annually in the first half of fiscal 2017. Much of that growth was attributed to Brexit fears devaluing the pound, which boosted Diageo's revenue from overseas markets. On an organic basis -- which excludes currency impacts, divestments, acquisitions, and other one-time charges -- Diageo's revenue rose 4%. Its adjusted earnings grew 21% during that period.
Wall Street expects Diageo's revenue and earnings to respectively rise 14% and 19% this year. Diageo currently pays a forward dividend yield of 2.5%, which is supported by a payout ratio of 61%. Diageo has hiked its dividend annually for nearly two decades -- making it a solid pick for conservative income investors.
Molson Coors
At first glance, Denver-based Molson Coors ' (NYSE: TAP) forward yield of 1.8% seems less impressive than InBev and Diageo's yields. Yet Molson Coors has two potential advantages over both companies. First, its lower payout ratio of 17% gives it more room to hike its dividend -- although it hasn't done so since 2015. Second, it pays a quarterly dividend, compared to InBev and Diageo's semi-annual ones -- which might matter to investors who need steady income.
Molson Coors expanded significantly due to InBev's acquisition of SABMiller. To satisfy regulators, SABMiller sold its stake in MillerCoors to Molson Coors. Molson Coors' beefed up portfolio now includes brands like Coors, Miller, Molson, Blue Moon, Bergenbier, Keystone, and Henry's Hard Soda.
Molson Coors' reported revenue (which includes MillerCoors in year-over-year comparisons) fell 2% and its non-GAAP earnings rose 2% last year. But for the current year, Molson sales and non-GAAP earnings are expected to respectively rise 1% and 7% as the company eliminates redundancies and scales up its business.
The key takeaways
Alcohol stocks are decent defensive plays for a volatile market, but they often underperform the overall market. The S&P 500 has risen about 17% over the past 12 months, compared to InBev's 4% decline, Diageo's 10% gain, and Molson Coors' 5% drop. Therefore, investors should note that while alcohol stocks can be reliable income generators, they are often overlooked during bull markets.
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 tripled 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 May 1, 2017
Leo Sun has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Anheuser-Busch InBev NV. 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 London-based Diageo 's (NYSE: DEO) portfolio of alcoholic beverages includes Johnnie Walker, Crown Royal, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness. But in 2015, annual global alcohol consumption dipped for the first time in nearly two decades, and the industry faces new headwinds like growing craft beer brands and the threat of higher import taxes. Yet alcohol stocks still remain fairly reliable investments for conservative investors, and several of the top names in the industry are also dependable dividend plays.
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Diageo London-based Diageo 's (NYSE: DEO) portfolio of alcoholic beverages includes Johnnie Walker, Crown Royal, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness. Anheuser Busch InBev Anheuser Busch InBev (NYSE: BUD) is the world's largest brewer. Wall Street expects Diageo's revenue and earnings to respectively rise 14% and 19% this year.
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Diageo London-based Diageo 's (NYSE: DEO) portfolio of alcoholic beverages includes Johnnie Walker, Crown Royal, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness. But after those annual comparisons normalize, analysts expect InBev's revenue and earnings to respectively rise 4% and 15% next year, fueled by the ongoing "premiumization" of its top beers. Molson Coors At first glance, Denver-based Molson Coors ' (NYSE: TAP) forward yield of 1.8% seems less impressive than InBev and Diageo's yields.
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Diageo London-based Diageo 's (NYSE: DEO) portfolio of alcoholic beverages includes Johnnie Walker, Crown Royal, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness. Diageo has hiked its dividend annually for nearly two decades -- making it a solid pick for conservative income investors. Molson Coors' beefed up portfolio now includes brands like Coors, Miller, Molson, Blue Moon, Bergenbier, Keystone, and Henry's Hard Soda.
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9e0b9f77-311b-4d99-8406-8c2b61b564c7
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727968.0
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2017-05-09 00:00:00 UTC
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5 Top Dividend Stocks From Across the Globe
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DEO
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https://www.nasdaq.com/articles/5-top-dividend-stocks-from-across-the-globe-2017-05-09
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With the Federal Reserve deciding to keep interest rates where they are, investors looking for income are still up the creek without a paddle. With that in mind, dividend stocks continue to be a great draw for investors. The only problem is that with the markets being up so much, many dividend stocks aren't exactly spitting out a ton of yield these days. The SPDR S&P 500 ETF Trust (NYSE: SPY ) - which tracks the benchmark S&P 500 - is currently only yielding 1.9%.
Source: Shutterstock
The secret to finding great dividend stocks isn't to look in the United States, but to break out your passport.
The best-yielding dividends stocks could be found overseas. The international markets feature plenty of multinational muscle that comes with higher yields and potentially cheaper valuations. For investors looking for income, thinking global with your portfolio could offer plenty of benefits.
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With that said, here are five great international stocks to buy today for strong dividends.
Great International Dividend Stocks to Buy Today: Diageo (DEO)
Dividend Yield : 2.5%
What do Captain Morgan rum, Smirnoff vodka and Johnnie Walker Scotch have in common (aside from being tasty)? Well, they happen to be the leading spirits in their respective categories, and the chief products of one of the best dividend stocks around - the U.K.'s Diageo Plc (ADR) (NYSE: DEO ).
But Diageo's boozy empire doesn't stop at just these three. It encompasses a whole range of beer and spirit brands. And until recently, DEO was the largest booze company in the world by volume, sales and operating profits. That title now belongs to China's Kweichow Moutai .
Even still, DEO's vast empire spans 180 different countries and 29 category-leading brands.
And that fact has continued to drive profits and revenues at the firm. For its last interim results back in January - U.K. stocks only report earnings twice a year - DEO reported a 14.5% boost to its sales and a 28% jump in profits. This resulted in a sharp increase in free cash flows for the period and follows DEO's long streak of wins.
Investors have been winning as well. All of those free cash flows have made their way back to investors pockets. During the period Diageo managed to up its payout by another 5%. Today, the stock yields 2.5%.
Great International Dividend Stocks to Buy Today: Total SA (TOT)
Dividend Yield : 5.1%
When we think of the major oil companies as dividend stocks, names like Chevron Corporation (NYSE: CVX ) often dominate the conversation. However, Europe is full of some big-time energy stocks that pump out major dividends as well. One of the best happens to be France's Total SA(ADR) (NYSE: TOT ).
TOT is nearly as big as CVX in many regards and features numerous assets across the world. That includes everything from major oil fields to pipelines and refining capacity. But the real win is that Total's management knows just what to do with those assets.
And that has included stepping off the gas at just the right time - before the recent oil crash - and hitting the pedal to the metal just before the rebound. That has allowed the firm to report some pretty decent earnings over the last few years. Moreover, its management has been tight with CAPEX spending and has increased its cash balance to more than $25 billion.
These efforts and its profits have helped pay for its hefty 5.1% dividend.
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And with higher crude oil prices on the horizon, Total could be one of the first energy firms to really increase their dividends by a meaningful amount.
Great International Dividend Stocks to Buy Today: The Toronto-Dominion Bank (TD)
Dividend Yield : 3.3%
Do you want high-yielding banks with strong balance sheets? Then the dividend stocks for you aren't in America, but up North … and one of the best could be Toronto-Dominion Bank (NYSE: TD ).
The key is that TD has focused more on you and me, rather than big-time business clients. That's important because competition for more prominent clients has brought down many of the lucrative fees that banks charge large companies for using their services. That's not so for retail customers, and TD can realize greater margins on retail accounts that are sometimes much higher than wholesale business banking.
Additionally, Toronto-Dominion has expanded into other banking operations. This includes brokerage firms - it owns TD Ameritrade and recently offered to buy Scottrade . Again, trading and custodian fees are pretty darn lucrative.
For TD's investors, that mean that bank has become a profit and dividend champion. The bank has managed to grow its shareholder returns at a CAGR of 15.9% over the last five years. And it has been sending more of those profits back to investors. Toronto-Dominion has grown its payout by 11% annually since 1995.
This makes TD one of the most consistent dividend stocks in the world.
Great International Dividend Stocks to Buy Today: British American Tobacco p.l.c. (BTI)
Dividend Yield : 3.1%
While rates of smoking are falling in the developed world, in the emerging world, cigarettes are as cool as ever. And that's great news for investors looking for dividend stocks like British American Tobacco PLC (ADR) (NYSEMKT: BTI ). The firms received the vast bulk of their revenues from emerging-market nations like China and India. Furthermore, growth in the emerging world help offset any declines here at home. In fact, BTI sold over 12% more of its products last year .
But BTI is about to sell even more. That's because it's offered to finish buying up the rest of rival Reynolds American, Inc. (NYSE: RAI ) that it didn't already own. The $49 billion buyout will create the world's largest tobacco firm by a long shot and place strong brands like Camel, Lucky Strike, Newport and Pall Mall under one roof. Even better is the buy gives BTI a hefty dose of next-generation tobacco products and e-cigarettes.
While the deal is expensive, it gives BTI investors another way to grow their dividends and instantly add to overall profits.
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And speaking of those payouts, BTI is a monster. While the amount fluctuates since it is tied to a percentage of profits, it has been paid twice a year, year in and year out. Currently, BTI yields 3.1%
Great International Dividend Stocks to Buy Today: iShares International Select Dividend ETF (IDV)
Dividend Yield : 4.3%
Perhaps the best way to get some exposure to international dividend stocks is to own them all - or at least a big swath of them. And the easiest way to do that is the iShares Dow Jones EPAC Sel Div Ind (ETF) (NYSEARCA: IDV ).
IDV tracks the Dow Jones EPAC Select Dividend Index - which is a measure of high-dividend-paying equities in non-U.S. developed markets. The intentional dividend ETF tracks high-paying equities and screens for those that have consistently paid those dividends over longer periods of time. That currently creates a portfolio of 99 different non-U.S. stocks - like pharmaceutical firm AstraZeneca PLC (ADR) (NYSE: AZN ) and previously mentioned Total SA.
This focus on long-term dividend payers helps IDV offer a high yield itself. The ETF currently pays around 4% - roughly double what the S&P 500 is currently paying.
Returns for IDV have been pretty decent as well. Over the last five years, the fund has had an average total return of 5.2%. That's pretty darn good for an international stock fund. Helping is IDV's low 0.5% expense ratio.
In the end, when it comes to international dividend stocks, IDV is the best broad play for them all.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.
The post 5 Top Dividend Stocks From Across the Globe 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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Well, they happen to be the leading spirits in their respective categories, and the chief products of one of the best dividend stocks around - the U.K.'s Diageo Plc (ADR) (NYSE: DEO ). Great International Dividend Stocks to Buy Today: Diageo (DEO) Dividend Yield : 2.5% What do Captain Morgan rum, Smirnoff vodka and Johnnie Walker Scotch have in common (aside from being tasty)? And until recently, DEO was the largest booze company in the world by volume, sales and operating profits.
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Great International Dividend Stocks to Buy Today: Diageo (DEO) Dividend Yield : 2.5% What do Captain Morgan rum, Smirnoff vodka and Johnnie Walker Scotch have in common (aside from being tasty)? Well, they happen to be the leading spirits in their respective categories, and the chief products of one of the best dividend stocks around - the U.K.'s Diageo Plc (ADR) (NYSE: DEO ). And until recently, DEO was the largest booze company in the world by volume, sales and operating profits.
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Great International Dividend Stocks to Buy Today: Diageo (DEO) Dividend Yield : 2.5% What do Captain Morgan rum, Smirnoff vodka and Johnnie Walker Scotch have in common (aside from being tasty)? Well, they happen to be the leading spirits in their respective categories, and the chief products of one of the best dividend stocks around - the U.K.'s Diageo Plc (ADR) (NYSE: DEO ). And until recently, DEO was the largest booze company in the world by volume, sales and operating profits.
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Great International Dividend Stocks to Buy Today: Diageo (DEO) Dividend Yield : 2.5% What do Captain Morgan rum, Smirnoff vodka and Johnnie Walker Scotch have in common (aside from being tasty)? Well, they happen to be the leading spirits in their respective categories, and the chief products of one of the best dividend stocks around - the U.K.'s Diageo Plc (ADR) (NYSE: DEO ). And until recently, DEO was the largest booze company in the world by volume, sales and operating profits.
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2017-05-02 00:00:00 UTC
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15 Things to Buy With Your Sell in May Profits
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https://www.nasdaq.com/articles/15-things-buy-your-sell-may-profits-2017-05-02
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Life in the equity markets has been very good to investors, especially since the unexpected election of Donald Trump as our 45th president. The S&P 500 is up more than 12% since Election Day, and many stocks are up far more than that since the "Trump reflation trade" has been in effect.
Source: Shutterstock
Now, however, we're in May, and that means many investors are planning to follow one of Wall Street's oldest (and possibly one of its wisest) adages: "Sell in May and go away."
If you are sitting on a whole lot of post-election profits, and you are getting ready to sell in May and go away, the question then becomes … what do you buy with all that money?
While purchasing power varies across the investment spectrum, there's no shortage of great ways to spoil yourself with both big and little luxury items that make the struggle that is life just a little bit easier.
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Here are 15 things to buy with your sell-in-May profits.
"Sell in May" Buys: Johnnie Walker Blue Label Scotch
Source: Shutterstock
Cost: ~ $4,200
If you're into wine (and I don't know anyone who isn't), then take a trip to America's best wine country: Napa Valley, California. And if you want a styling place to stay, then go to the Calistoga Ranch , an Auberge Resorts property.
This resort is "nestled in a secluded upper Napa Valley canyon on 157 oak-lined acres." It's also designed to essentially blur the line between the outdoors and the indoors.
If you want to spend those stock profits in style, book a few nights at the Calistoga.
"Sell in May" Buys: Tag Heuer Carrera Calibre Heuer 01
Cost: $5,350
Tag Heuer'sCarrera Calibre Heuer 01 is a "classic yet contemporary sports watch" with auto racing roots. The Tag brand (a division of LVMH ) is at home on the track or in the boardroom, and serves well as a staple of any stylish business outfit.
The casing is scratch-resistant sapphire crystal with a polished steel crown, and is water-resistant up to 100 meters. If you want to sport stylish sophistication without breaking the bank, this Tag is one to consider.
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Tag currently offers several similar models, though the particular 43 mm version pictured is available starting in June.
"Sell in May" Buys: Tiffany Jewelry
Source: Shutterstock
Cost: ~$500-$15,000
Whether you want to spoil a spouse, pop the question, congratulate a recent graduate or celebrate Mother's Day or Father's Day, why not do it with the little blue box?
That box is, of course, any piece of jewelry from Tiffany & Co .
Whether it's a bracelet, an engagement ring, earrings, a pendant or a money clip, Tiffany has a luxurious treat for everyone. No matter what size your sell-in-May profits are, you are bound to find a winning luxury treat in the iconic blue box.
"Sell in May" Buys: Louis Vuitton Handbag
Cost: $2,260
Another LVMH item on my list is for the ladies, and it's the Montaigne BB bag in the iconic monogram design. This bag feels luxury, looks luxury and blares out "prosperity and style" for any woman clutching it.
If you're a woman and you want a treat, buy yourself an LV handbag. If you're a man, do yourself a favor and get this bag for the lady in your life. It could pay dividends for much longer than some of the stocks you own.
"Sell in May" Buys: Christian Louboutin So Kate Pumps
Cost: $675
Another item for the ladies - and for the men who appreciate female footwear - is the Christian Louboutin "So Kate" Pumps (in red, of course). These high heels are just about as luxurious and sexy as it gets, and glamour has few equals in the footwear department.
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If you're looking to treat that special someone (or yourself) for those red-carpet nights, then outfit their/your feet with some Louboutins.
"Sell in May" Buys: Allen Edmonds Park Avenue Cap-Toe Oxfords
Cost: $395
Want to walk around feeling like the president of the United States? If you're a man, then you'll want some Allen Edmonds Park Avenue Cap-Toe Oxfords .
The company says this model was the Inauguration Day footwear for Presidents Reagan, H.W. Bush, Clinton and G.W. Bush … so you'd be in pretty good company.
The classic style and supreme craftsmanship of this brand makes it a timeless purchase, and one that will last you for many sell-in-May seasons to come.
"Sell in May" Buys: Diane Von Furstenberg Tailored Shift Dress
Cost: $398
The Diane von Furstenberg , or DVF, Tailored Shift Dress is simple luxury incarnate. This is one of those elegant and classic designs that will look great today and great tomorrow … regardless of the ever-changing fashion winds.
Every woman I know loves DVF dresses, so if you're a man looking to give that special woman to a fashion treat, then go DVF.
And if you're a woman … well, you already know.
"Sell in May" Buys: Porsche 911
Source: Shutterstock
Cost: Starting at $91,000
When it comes to styling sports cars, there's the Porsche 911 , and then there's everything else.
The latest iteration of the 911 model is, in my view, Porsche's best yet. It combines luxury materials with the epitome of German auto engineering, all in a classic body shape that lets the world know you care about quality, performance and making a statement.
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If you made a lot of money in the markets, and you're just itching to spend some of it going fast, then choose Porsche. As the company says, "There is no substitute."
"Sell in May" Buys: Ducati Superbike 1299 Panigale S
Cost: $25,795
If you want to shed the encumbrance of four wheels and want to streamline your speed and fun down to two wheels, then check out the Ducati Superbike 1299 Panigale S .
One of the fastest and most agile motorcycles money can buy, the Panigale S also is (in my opinion) perhaps the most beautiful bike ever made. Two-wheel enthusiasts know the experience of riding a Ducati, and that's why the brand engenders such extreme loyalty among those who want to ride with class.
If you have the market profits - and the requisite two-wheel skills and experience - take a test ride of the Panigale S.
"Sell in May" Buys: Gibson J-45 Custom Guitar
Cost: $2,799
Musicians and music lovers around the world know Gibson guitars. And if you've listened to rock, country, folk, blues, jazz - just about any kind of music in your life, you've listened to a Gibson.
For those who love acoustic sounds, it doesn't get better than the Gibson J-45 Custom Guitar . Nicknamed "The Workhorse" because of its versatility, the J-45 plays with deep and rich tones and booming volume that outshines its rivals.
If you play guitar, get one. If you don't play, get one and learn. Remember: You're never too old to a rock star.
"Sell in May" Buys: H&K USP Semiautomatic Pistol
Cost: ~$820-$1,100
If quality firearms are your thing, then get to your local gun store with those sell-in-May profits and get a Heckler & Koch (H&K) USP semiautomatic pistol .
This high-end handgun has long been the favorite of elite special operations forces around the world, because those units know when your life and those in your charge depend on it, the H&K won't fail.
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I consider the H&K USP (universal service pistol) the "Porsche of handguns," as it embodies quality, precision and German engineering.
"Sell in May" Buys: African Safari at the Singita Grumeti, Serengeti National Park Area, Tanzania
Source: Shutterstock
Cost: ~$8,000
If you've ever wanted to go on safari, then why not go in the lap of luxury? Doing so means doing it at the Singita Grumeti, in the Serengeti National Park area of Tanzania.
According to Travel and Leisure , this spot ranks No. 1 on its best safaris in Africa list . The property is made up of a group of five camps near Serengeti National Park. In addition to seeing some of the world's most exotic and gorgeous wildfire on earth up close, Singita also offers dedicated chefs, expert guides and some of the most plush accommodations on the continent.
"Sell in May" Buys: Hoyo de Monterrey Epicure No. 2 Premium Cuban Cigars
Cost: $533 (cabinet of 50)
Long one of Cuba's greatest brands, the Hoyo de Monterrey Epicure No. 2 is what some aficionados consider the island nation's greatest robusto.
One of the few Cuban cigars available in cabinets of 50, the Epicure No. 2 offers cigar lovers hours of full-bodied flavor and enjoyment.
And that's not just me saying it. Cigar Aficionado points out that in a recent Connoisseur's Corner tasting, "an Epicure No. 2 produced in 1992 scored a perfect 100 points, a clear sign of its long aging potential."
"Sell in May" Buys: Upgrade Your Home
Source: Shutterstock
Cost: Varies widely
If you've made big profits in the market since Election Day, now may be a good time to make your real estate great again. Whether it's new appliances, new paint, a room addition or a pool or jacuzzi, taking profits from the equity markets and redirecting those profits into home improvement projects that will enhance the value of your home is a smart use of your money.
And unlike most of the depreciating assets I've outlined here, upgrading your home could pay off for you in the long run when it comes time to resell.
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So, go out and get some bids on whatever you've always wanted to do with your home. There'll be time enough to get back into stocks this fall.
Many of the items on this list can be found on, in or around Jim Woods. In fact, he's already spent some of his sell-in-May profits generated from hisSuccessful ETF Investingand Millionaire Blueprint advisory services on these very things.
The post 15 Things to Buy With Your Sell in May Profits appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 purchasing power varies across the investment spectrum, there's no shortage of great ways to spoil yourself with both big and little luxury items that make the struggle that is life just a little bit easier. It combines luxury materials with the epitome of German auto engineering, all in a classic body shape that lets the world know you care about quality, performance and making a statement. "Sell in May" Buys: Upgrade Your Home Source: Shutterstock Cost: Varies widely If you've made big profits in the market since Election Day, now may be a good time to make your real estate great again.
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"Sell in May" Buys: Diane Von Furstenberg Tailored Shift Dress Cost: $398 The Diane von Furstenberg , or DVF, Tailored Shift Dress is simple luxury incarnate. "Sell in May" Buys: African Safari at the Singita Grumeti, Serengeti National Park Area, Tanzania Source: Shutterstock Cost: ~$8,000 If you've ever wanted to go on safari, then why not go in the lap of luxury? "Sell in May" Buys: Upgrade Your Home Source: Shutterstock Cost: Varies widely If you've made big profits in the market since Election Day, now may be a good time to make your real estate great again.
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If you have the market profits - and the requisite two-wheel skills and experience - take a test ride of the Panigale S. "Sell in May" Buys: Gibson J-45 Custom Guitar Cost: $2,799 Musicians and music lovers around the world know Gibson guitars. "Sell in May" Buys: African Safari at the Singita Grumeti, Serengeti National Park Area, Tanzania Source: Shutterstock Cost: ~$8,000 If you've ever wanted to go on safari, then why not go in the lap of luxury? "Sell in May" Buys: Upgrade Your Home Source: Shutterstock Cost: Varies widely If you've made big profits in the market since Election Day, now may be a good time to make your real estate great again.
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Every woman I know loves DVF dresses, so if you're a man looking to give that special woman to a fashion treat, then go DVF. "Sell in May" Buys: Porsche 911 Source: Shutterstock Cost: Starting at $91,000 When it comes to styling sports cars, there's the Porsche 911 , and then there's everything else. "Sell in May" Buys: Upgrade Your Home Source: Shutterstock Cost: Varies widely If you've made big profits in the market since Election Day, now may be a good time to make your real estate great again.
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2017-04-02 00:00:00 UTC
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3 Top Alcohol Stocks to Buy in 2017
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https://www.nasdaq.com/articles/3-top-alcohol-stocks-buy-2017-2017-04-02
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Candy might be dandy, but for sweet profits, liquor is definitely quicker. The biggest confectioners enjoy net profit margins that barely break out of the single-digit range, while comparable leading distillers are more than double that.
So let's roll out the barrel and take a look at three wine, liquor, and spirits distributors that could help uncork your portfolio's returns: Brown-Forman (NYSE: BF-A) (NYSE: BF-B) , Constellation Brands (NYSE: STZ) , and Diageo (NYSE: DEO) .
Brown-Forman
According to the Distilled Spirits Council of the U.S., American whiskey sales have never been stronger, as bourbon, Tennessee whiskey, and rye jumped 8% last year to $3.1 billion. Volumes were also higher, rising 6.8% to 21.8 million cases, driven mostly by higher export volumes, which jumped more than 10% in 2016.
Brown-Forman played a leading role in those gains, as its Jack Daniel's family of whiskey continued to push sales higher here at home as well as abroad. In its fiscal 2017 third-quarter earnings report, the distiller said year-to-date underlying net sales in the U.S. were up 4% as Tennessee Whiskey, Tennessee Honey, and Gentleman Jack all saw increases, with 3% gains in developed markets and 5% growth in emerging markets. It's looking for underlying net sales to grow 3% to 4% for the full year across its portfolio, leading to increases in operating income of 5% to 7%.
The introduction of new flavors has helped spark renewed interest in the "browns" category, but in Brown-Forman's Jack Daniel's in particular. Its honey-flavored Tennessee Honey has maintained strong growth since its introduction, with volumes 5% higher in the period, while its cinnamon-spiked Tennessee Fire continues to challenge industry leader Fireball with double-digit net sales growth as Brown-Forman continued its international rollout.
While the new appreciation for whiskey has led to the creation of a cottage industry in craft distillers, similar to what happened in the beer market several decades ago, there's plenty of room from the old-line distillers to grow, and Brown-Forman will continue to capitalize on its leading position.
Constellation Brands
While Constellation Brands derives more than half of its consolidated revenue from beer sales, which brought in over $3.3 billion through the first nine months of its fiscal year, it has a nearly equally robust wine and spirits portfolio that generated almost $2.4 billion in sales from wine brands including Almaden, Robert Mondavi, and Ruffino, as well as spirits such as Svedka vodka and Black Velvet Canadian whisky (yes, it's spelled differently).
The first real spark of growth Constellation enjoyed was acquiring the full U.S. rights to Grupo Modelo's Corona, Modelo, and Pacifico beers when it acquired Crown Imports from Anheuser-Busch InBev (NYSE: BUD) in 2013. It followed that up in 2015 with the acquisition of regional craft brewer Ballast Point Brewing, for which it paid $1 billion , but has seen transform into the fastest-growing craft beer in the country.
The wine and spirits portfolio has offered Constellation a more measured, stable kind of growth, and over the first three quarters of fiscal 2017, sales have expanded by 4% year over year.
However, Constellation sold off its Canadian wine business and bought the Obregon brewery in Mexico, as well as Charles Smith Wines and High West Distillery to jump on U.S. market trends toward high-end wines and spirits. It will be changing consumer preference for the premium brands in its portfolio that will be the straw that stirs Constellation's drink.
Diageo
Diageo is another adult beverage distributor with a deep bench of brands stretching across spirits and beer. Among its top-shelf names are Johnnie Walker Scotch whisky, Smirnoff vodka, Captain Morgan rum, Baileys liqueur, Tanqueray gin, and Guinness beer. At some point or another you've likely tasted at least one of them, possibly all of them (though hopefully not at the same time).
Revenue across the first six months of its fiscal year grew 14.5%, though a lot of that gain was the result of currency fluctuations that saw the U.K.'s Brexit vote wallop the British pound. Still, organic revenue grew over 4% for the period as volumes increased 1.8% helping it generate free cash flow in excess of 1 billion pounds, or about $1.2 billion at current exchange rates
Like the other distillers, Diageo was able to capitalize on the popularity of the twin trends toward whiskey and premiumization with net sales in North America growing 15% as Crown Royal whiskey and Bulleit bourbon continued to gain market share. Its Johnnie Walker brand also grew 9% in the quarter.
Diageo notes the drive toward premium spirits in international markets is being "driven by growth in both populations and incomes," and it plans to increase the penetration of such brands in emerging markets as well.
There's no question Diego's stock is also premium-priced, but as one of the leaders across all spirits and enjoying the growth rates it has, that's to be expected. That doesn't mean it can't continue to gain, however, and with a new premium Irish whiskey set to launch called Roe & Co. that seeks to challenge Jameson, there may be a new spirit we'll be raising our glasses to toast.
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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Rich Duprey has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Anheuser-Busch InBev NV. 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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So let's roll out the barrel and take a look at three wine, liquor, and spirits distributors that could help uncork your portfolio's returns: Brown-Forman (NYSE: BF-A) (NYSE: BF-B) , Constellation Brands (NYSE: STZ) , and Diageo (NYSE: DEO) . Among its top-shelf names are Johnnie Walker Scotch whisky, Smirnoff vodka, Captain Morgan rum, Baileys liqueur, Tanqueray gin, and Guinness beer. Revenue across the first six months of its fiscal year grew 14.5%, though a lot of that gain was the result of currency fluctuations that saw the U.K.'s Brexit vote wallop the British pound.
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So let's roll out the barrel and take a look at three wine, liquor, and spirits distributors that could help uncork your portfolio's returns: Brown-Forman (NYSE: BF-A) (NYSE: BF-B) , Constellation Brands (NYSE: STZ) , and Diageo (NYSE: DEO) . Its honey-flavored Tennessee Honey has maintained strong growth since its introduction, with volumes 5% higher in the period, while its cinnamon-spiked Tennessee Fire continues to challenge industry leader Fireball with double-digit net sales growth as Brown-Forman continued its international rollout. The first real spark of growth Constellation enjoyed was acquiring the full U.S. rights to Grupo Modelo's Corona, Modelo, and Pacifico beers when it acquired Crown Imports from Anheuser-Busch InBev (NYSE: BUD) in 2013.
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So let's roll out the barrel and take a look at three wine, liquor, and spirits distributors that could help uncork your portfolio's returns: Brown-Forman (NYSE: BF-A) (NYSE: BF-B) , Constellation Brands (NYSE: STZ) , and Diageo (NYSE: DEO) . Constellation Brands While Constellation Brands derives more than half of its consolidated revenue from beer sales, which brought in over $3.3 billion through the first nine months of its fiscal year, it has a nearly equally robust wine and spirits portfolio that generated almost $2.4 billion in sales from wine brands including Almaden, Robert Mondavi, and Ruffino, as well as spirits such as Svedka vodka and Black Velvet Canadian whisky (yes, it's spelled differently). Still, organic revenue grew over 4% for the period as volumes increased 1.8% helping it generate free cash flow in excess of 1 billion pounds, or about $1.2 billion at current exchange rates Like the other distillers, Diageo was able to capitalize on the popularity of the twin trends toward whiskey and premiumization with net sales in North America growing 15% as Crown Royal whiskey and Bulleit bourbon continued to gain market share.
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So let's roll out the barrel and take a look at three wine, liquor, and spirits distributors that could help uncork your portfolio's returns: Brown-Forman (NYSE: BF-A) (NYSE: BF-B) , Constellation Brands (NYSE: STZ) , and Diageo (NYSE: DEO) . Brown-Forman played a leading role in those gains, as its Jack Daniel's family of whiskey continued to push sales higher here at home as well as abroad. Constellation Brands While Constellation Brands derives more than half of its consolidated revenue from beer sales, which brought in over $3.3 billion through the first nine months of its fiscal year, it has a nearly equally robust wine and spirits portfolio that generated almost $2.4 billion in sales from wine brands including Almaden, Robert Mondavi, and Ruffino, as well as spirits such as Svedka vodka and Black Velvet Canadian whisky (yes, it's spelled differently).
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09d27186-25fb-402a-946a-90aa10e34876
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727971.0
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2017-02-25 00:00:00 UTC
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Will Trump's Trade Policies Hurt Jack Daniel's Sales?
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DEO
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https://www.nasdaq.com/articles/will-trumps-trade-policies-hurt-jack-daniels-sales-2017-02-25
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nan
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nan
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President Donald Trump began carrying through on his tough talk on trade once he took office last month, and though it's argued his policies are being fashioned to give American workers a better deal, many others may be hurt by his actions.
One of Trump's first actions after being inaugurated was to exit from the Trans-Pacific Partnership, a trade agreement with Pacific Rim nations, as well sign an executive order stating his intention to renegotiate the North American Free Trade Agreement with Mexico and Canada. While there are always problems with such multinational contracts -- despite their name, "free trade" is never really quite so laissez-faire as critics and proponents would have you believe -- there are worries that erecting isolationist trade barriers may do more harm to U.S. businesses than good.
For example, a surprising victim of a tougher trade posture could be the spirits industry, which enjoyed a banner year last year.
Toasting continued growth
According to the Distilled Spirits Council of the U.S., American whiskey has never been more popular with sales of bourbon, Tennessee whiskey, and rye hitting $3.1 billion in 2016, a near 8% jump from the prior year, with volumes rising 6.8% to 21.8 million cases. Those gains were driven in large part by a surge in export volumes as American whiskey jumped more than 10% for the year.
That growth is echoed in the results of distiller Brown-Forman (NYSE: BF-A) (NYSE: BF-B) , which reported in December that fiscal 2017 second-quarter underlying net sales grew 5% year to date, with sales to developed countries up 2%, and emerging markets down 1%, though Mexico was up by "robust double-digit" rates of 18%. Notably, its Jack Daniel's Tennessee whiskey saw particularly strong growth south of the border as well as in Japan.
Japan's Beam Suntory also saw near 9% gains through last October, based on market analyst data from IRI, as brands like Knob Creek and Booker's rally. Although that would suggest Brown-Forman would have the most to lose in any clampdown on trade that might result in retaliatory actions, Beam's Jim Beam, Maker's Mark, and George Dickel brands are all made here in the U.S., in Tennessee and Kentucky, and they could suffer from any retaliatory trade actions, because although the distiller is foreign-owned, its whiskies are made in the U.S.A.
A trade spat could help other distillers gain market share at their expense. For example, in its own six-month financial report last month, London-based spirits distributor Diageo (NYSE: DEO) said organic net sales were up 4% on a 2% increase in volume, with sales to Mexico up 21% year over year, but that was largely driven by Scotch whisky and tequila.
Red, white, blue, and brown
Although DISCUS says other spirits are enjoying larger growth spurts than American whiskey, with cognac up 13% and Irish whiskey jumping almost 19%, they're much smaller segments, with sales totaling $1.5 billion and $795 million, respectively. The Council, though, says overall U.S. retail sales of distilled spirits hit $78 billion last year, and more importantly, represent some 1.4 million jobs in the hospitality and manufacturing sectors.
According to a study conducted by the Urban Studies Institute at the University of Louisville and the Kentucky Distillers' Association, the state's bourbon industry is responsible for $8.5 billion in total economic output -- up $1 billion from the last time the biennial survey was taken -- and between 15,000 and 17,500 jobs. A U.S. Chamber of Commerce study says Tennessee's whiskey exports account for 65% of all whiskey shipped out of the U.S. in 2015, and they have nearly doubled between 2005 and 2015, rising from $361 million to $691 million.
Brown-Forman has been using the popularity of brown spirits to drive further sales of brand extensions of its Jack Daniel's family of whiskey. Its honey-flavored Tennessee Honey brand was largely responsible for the 5% growth in underlying net sales the distiller saw in the U.S. and 2% growth overall.
Open markets can certainly have an impact as industries strive to meet the challenges of the new conditions, but actions have consequences, and while restrictionist trade policies might benefit one industry, they could have repercussions that severely damage another.
10 stocks we like better than Brown-Forman (B Shares)
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 Brown-Forman (B Shares) 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 6, 2017.
Rich Duprey has no position in any 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 example, in its own six-month financial report last month, London-based spirits distributor Diageo (NYSE: DEO) said organic net sales were up 4% on a 2% increase in volume, with sales to Mexico up 21% year over year, but that was largely driven by Scotch whisky and tequila. President Donald Trump began carrying through on his tough talk on trade once he took office last month, and though it's argued his policies are being fashioned to give American workers a better deal, many others may be hurt by his actions. Japan's Beam Suntory also saw near 9% gains through last October, based on market analyst data from IRI, as brands like Knob Creek and Booker's rally.
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For example, in its own six-month financial report last month, London-based spirits distributor Diageo (NYSE: DEO) said organic net sales were up 4% on a 2% increase in volume, with sales to Mexico up 21% year over year, but that was largely driven by Scotch whisky and tequila. Toasting continued growth According to the Distilled Spirits Council of the U.S., American whiskey has never been more popular with sales of bourbon, Tennessee whiskey, and rye hitting $3.1 billion in 2016, a near 8% jump from the prior year, with volumes rising 6.8% to 21.8 million cases. According to a study conducted by the Urban Studies Institute at the University of Louisville and the Kentucky Distillers' Association, the state's bourbon industry is responsible for $8.5 billion in total economic output -- up $1 billion from the last time the biennial survey was taken -- and between 15,000 and 17,500 jobs.
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For example, in its own six-month financial report last month, London-based spirits distributor Diageo (NYSE: DEO) said organic net sales were up 4% on a 2% increase in volume, with sales to Mexico up 21% year over year, but that was largely driven by Scotch whisky and tequila. Toasting continued growth According to the Distilled Spirits Council of the U.S., American whiskey has never been more popular with sales of bourbon, Tennessee whiskey, and rye hitting $3.1 billion in 2016, a near 8% jump from the prior year, with volumes rising 6.8% to 21.8 million cases. That growth is echoed in the results of distiller Brown-Forman (NYSE: BF-A) (NYSE: BF-B) , which reported in December that fiscal 2017 second-quarter underlying net sales grew 5% year to date, with sales to developed countries up 2%, and emerging markets down 1%, though Mexico was up by "robust double-digit" rates of 18%.
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For example, in its own six-month financial report last month, London-based spirits distributor Diageo (NYSE: DEO) said organic net sales were up 4% on a 2% increase in volume, with sales to Mexico up 21% year over year, but that was largely driven by Scotch whisky and tequila. Toasting continued growth According to the Distilled Spirits Council of the U.S., American whiskey has never been more popular with sales of bourbon, Tennessee whiskey, and rye hitting $3.1 billion in 2016, a near 8% jump from the prior year, with volumes rising 6.8% to 21.8 million cases. That's right -- they think these 10 stocks are even better buys.
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6567f27b-86b0-4ff9-87fc-4406d4b7d601
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727972.0
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2017-02-21 00:00:00 UTC
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Diageo plc (DEO) Ex-Dividend Date Scheduled for February 22, 2017
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DEO
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https://www.nasdaq.com/articles/diageo-plc-deo-ex-dividend-date-scheduled-february-22-2017-2017-02-21
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nan
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nan
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Diageo plc ( DEO ) will begin trading ex-dividend on February 22, 2017. A cash dividend payment of $1.182 per share is scheduled to be paid on April 11, 2017. Shareholders who purchased DEO prior to the ex-dividend date are eligible for the cash dividend payment. This represents an -35.97% decrease from the prior dividend payment.
The previous trading day's last sale of DEO was $114.2, representing a -3.09% decrease from the 52 week high of $117.84 and a 14.82% increase over the 52 week low of $99.46.
DEO is a part of the Consumer Non-Durables sector, which includes companies such as Anheuser-Busch Inbev SA ( BUD ) and Coca-Cola Company ( KO ). Zacks Investment Research reports DEO's forecasted earnings growth in 2017 as 3.23%, compared to an industry average of -2.1%.
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.
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 2017 as 3.23%, compared to an industry average of -2.1%. For more information on the declaration, record and payment dates, visit the DEO Dividend History page.
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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. Diageo plc ( DEO ) will begin trading ex-dividend on February 22, 2017. Shareholders who purchased DEO prior to the ex-dividend date are eligible for the cash dividend payment.
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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 $114.2, representing a -3.09% decrease from the 52 week high of $117.84 and a 14.82% increase over the 52 week low of $99.46. 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 February 22, 2017. 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 $114.2, representing a -3.09% decrease from the 52 week high of $117.84 and a 14.82% increase over the 52 week low of $99.46.
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85a83b11-3c37-4d6f-b266-3f5b0bc99f0d
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727973.0
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2017-02-20 00:00:00 UTC
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2 Dividend Stocks to Help You Make Money in Retirement
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DEO
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https://www.nasdaq.com/articles/2-dividend-stocks-help-you-make-money-retirement-2017-02-20
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nan
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nan
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Retirees should generally invest in companies with wide moats and solid dividends. In a previous article , I noted that AT&T and Unilever were easy-to-understand companies that were ideal for most retirement portfolios. Today, I'll add two more companies to that list -- alcoholic beverage giants Diageo (NYSE: DEO) and Anheuser-Busch InBev (NYSE: BUD) .
Diageo
Diageo's massive portfolio of iconic alcoholic beverages includes Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness. The company is based in London, but it produces its drinks at over 200 sites in 30 countries.
Those drinks are shipped to over 180 countries, which are divided into 21 key markets. Diageo's beer business has posted soft growth in recent quarters due to competition from craft and local brands, but that weakness has been offset by robust growth across its spirits portfolio.
Diageo's revenue rose 14.5% annually in the first half of fiscal 2017. That growth was mainly attributed to Brexit concerns crushing the pound -- which helps U.K.-based companies like Diageo that generate most of their revenue overseas. On an organic basis -- which excludes currency impacts, divestments, and acquisitions -- Diageo's revenue rose 4.4% on 1.8% volume growth. Its "pre-exceptional" (adjusted) earnings rose 21% during the period.
For the full year, Diageo's reported revenue is expected to rise 14%, while its earnings are expected to improve 18%. That solid growth will generate plenty of free cash to fund its dividend.
Diageo only pays its dividend semi-annually, but it's raised it every year for almost two decades. It currently pays a 2.7% yield, which is easily supported by its payout ratio of 38%. Diageo currently trades at 24 times earnings, which is higher than the industry average of 19, but that slight premium is arguably justified by its double-digit growth rates.
Anheuser-Busch InBev
Anheuser-Busch InBev, the world's largest brewer, was created from the mergers between Interbrew in Belgium, AmBev in Brazil, Anheuser-Busch in the U.S., and SABMiller in London. Its top brands include Budweiser, Michelob, Stella Artois, Foster's, Cass, and Hoegaarden. The Belgium-based company controls about 28% of the global beer market, according to research firm EuroMonitor International.
The strength of those brands creates a wide moat that's tough for smaller rivals to cross. But like Diageo, AB InBev has lost market share to smaller craft-beer players in recent years. To counter that shift, AB InBev started acquiring popular craft-beer brands like Karbach, Goose Island, Blue Point, Elysian, and Golden Road.
AB InBev's quarterly revenues have notably slipped annually in recent quarters due to currency headwinds and tough macro challenges in inflation-rattled markets like Brazil. During the third quarter, AB InBev's revenue rose 3% annually as revenue management and "premiumization" initiatives partly offset its softness in Brazil. However, its normalized EPS (adjusted for the SABMiller acquisition) still fell 19% due to those challenges. Looking ahead, analysts expect AB InBev's revenue to rise 6% this year, but for its earnings to decline 35%.
That outlook seems bleak, but macro issues are cyclical, and the acquisition of SABMiller will reduce the weight of troubled markets like Brazil on AB InBev's top line. That's why analysts believe that AB InBev's revenue and earnings will improve 24% and 44%, respectively, in fiscal 2017.
AB InBev pays semi-annual dividends, and it currently pays a forward yield of 3.3%. Its payout ratio currently exceeds 100% due to the SABMiller merger, but InBev has raised its dividends for seven straight years. The stock trades at 22 times earnings, which is higher than the industry average of eight, but that premium could be justified by the company's long-term dominance of the brewery industry.
Should you buy Diageo or AB InBev?
I believe that Diageo and AB InBev are both solid retirement plays that have wide moats, well-diversified businesses, and reliable dividends. Neither company is a fast grower, but both companies will likely grow larger over the next few years as they gobble up smaller players in alcoholic beverages.
However, retirees who require more frequent payments than Diageo and AB InBev's semi-annual payments should also check out stocks that pay out dividends every quarter or month instead.
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 tripled 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 February 6, 2017
Leo Sun owns shares of AT and T. The Motley Fool owns shares of and recommends Anheuser-Busch InBev NV. The Motley Fool recommends Diageo and Unilever. 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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Today, I'll add two more companies to that list -- alcoholic beverage giants Diageo (NYSE: DEO) and Anheuser-Busch InBev (NYSE: BUD) . Diageo currently trades at 24 times earnings, which is higher than the industry average of 19, but that slight premium is arguably justified by its double-digit growth rates. To counter that shift, AB InBev started acquiring popular craft-beer brands like Karbach, Goose Island, Blue Point, Elysian, and Golden Road.
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Today, I'll add two more companies to that list -- alcoholic beverage giants Diageo (NYSE: DEO) and Anheuser-Busch InBev (NYSE: BUD) . But like Diageo, AB InBev has lost market share to smaller craft-beer players in recent years. AB InBev's quarterly revenues have notably slipped annually in recent quarters due to currency headwinds and tough macro challenges in inflation-rattled markets like Brazil.
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Today, I'll add two more companies to that list -- alcoholic beverage giants Diageo (NYSE: DEO) and Anheuser-Busch InBev (NYSE: BUD) . But like Diageo, AB InBev has lost market share to smaller craft-beer players in recent years. AB InBev's quarterly revenues have notably slipped annually in recent quarters due to currency headwinds and tough macro challenges in inflation-rattled markets like Brazil.
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Today, I'll add two more companies to that list -- alcoholic beverage giants Diageo (NYSE: DEO) and Anheuser-Busch InBev (NYSE: BUD) . But like Diageo, AB InBev has lost market share to smaller craft-beer players in recent years. AB InBev's quarterly revenues have notably slipped annually in recent quarters due to currency headwinds and tough macro challenges in inflation-rattled markets like Brazil.
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c8b43df0-dbeb-4099-a229-2a77bf746ced
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727974.0
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2017-02-17 00:00:00 UTC
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Greenwood Gearhart Inc Buys Diageo PLC, Procter & Gamble Co, Sells Harman International ...
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DEO
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https://www.nasdaq.com/articles/greenwood-gearhart-inc-buys-diageo-plc-procter-gamble-co-sells-harman-international-2017
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nan
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nan
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Greenwood Gearhart Inc
New Purchases: PG ,
Added Positions: DEO , SPY ,
Reduced Positions:CAT, JBHT, JNJ, UTX, CSCO, DIS, KHC, MCD, GLW, FDX,
Sold Out:HAR, INTC,
For the details of GREENWOOD GEARHART INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GREENWOOD+GEARHART+INC
These are the top 5 holdings of GREENWOOD GEARHART INC
Wal-Mart Stores Inc ( WMT ) - 121,079 shares, 3.41% of the total portfolio. Shares reduced by 0.77%
Loews Corp ( L ) - 154,598 shares, 2.95% of the total portfolio. Shares reduced by 0.47%
Diageo PLC ( DEO ) - 67,947 shares, 2.87% of the total portfolio. Shares added by 40.92%
Exxon Mobil Corp ( XOM ) - 73,792 shares, 2.71% of the total portfolio. Shares reduced by 0.77%
Johnson & Johnson ( JNJ ) - 57,026 shares, 2.67% of the total portfolio. Shares reduced by 3.82%
New Purchase: Procter & Gamble Co (PG)
Greenwood Gearhart Inc initiated holdings in Procter & Gamble Co. The purchase prices were between $81.86 and $90, with an estimated average price of $85.23. The stock is now traded at around $90.79. The impact to the portfolio due to this purchase was 0.1%. The holdings were 2,948 shares as of 2016-12-31.
Added: Diageo PLC ( DEO )
Greenwood Gearhart Inc added to the holdings in Diageo PLC by 40.92%. The purchase prices were between $99.95 and $116.38, with an estimated average price of $105.22. The stock is now traded at around $114.20. The impact to the portfolio due to this purchase was 0.83%. The holdings were 67,947 shares as of 2016-12-31.
Sold Out: Harman International Industries Inc (HAR)
Greenwood Gearhart Inc sold out the holdings in Harman International Industries Inc. The sale prices were between $77.58 and $111.16, with an estimated average price of $96.53.
Sold Out: Intel Corp (INTC)
Greenwood Gearhart Inc sold out the holdings in Intel Corp. The sale prices were between $33.61 and $38.1, with an estimated average price of $35.81.
Reduced: Caterpillar Inc (CAT)
Greenwood Gearhart Inc reduced to the holdings in Caterpillar Inc by 32.99%. The sale prices were between $81.11 and $97.33, with an estimated average price of $90.63. The stock is now traded at around $98.26. The impact to the portfolio due to this sale was -0.72%. Greenwood Gearhart Inc still held 40,193 shares as of 2016-12-31.
Reduced: JB Hunt Transport Services Inc (JBHT)
Greenwood Gearhart Inc reduced to the holdings in JB Hunt Transport Services Inc by 27.74%. The sale prices were between $77.6 and $100.68, with an estimated average price of $88.97. The stock is now traded at around $100.71. The impact to the portfolio due to this sale was -0.49%. Greenwood Gearhart Inc still held 38,598 shares as of 2016-12-31.
Warning! GuruFocus has detected 4 Warning Sign with DEO. Click here to check it out.
DEO 15-Year Financial Data
The intrinsic value of DEO
Peter Lynch Chart of DEO
Premium Members
This article first appeared on GuruFocus .
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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Greenwood Gearhart Inc New Purchases: PG , Added Positions: DEO , SPY , Reduced Positions:CAT, JBHT, JNJ, UTX, CSCO, DIS, KHC, MCD, GLW, FDX, Sold Out:HAR, INTC, For the details of GREENWOOD GEARHART INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GREENWOOD+GEARHART+INC These are the top 5 holdings of GREENWOOD GEARHART INC Wal-Mart Stores Inc ( WMT ) - 121,079 shares, 3.41% of the total portfolio. Shares reduced by 0.47% Diageo PLC ( DEO ) - 67,947 shares, 2.87% of the total portfolio. Added: Diageo PLC ( DEO ) Greenwood Gearhart Inc added to the holdings in Diageo PLC by 40.92%.
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Greenwood Gearhart Inc New Purchases: PG , Added Positions: DEO , SPY , Reduced Positions:CAT, JBHT, JNJ, UTX, CSCO, DIS, KHC, MCD, GLW, FDX, Sold Out:HAR, INTC, For the details of GREENWOOD GEARHART INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GREENWOOD+GEARHART+INC These are the top 5 holdings of GREENWOOD GEARHART INC Wal-Mart Stores Inc ( WMT ) - 121,079 shares, 3.41% of the total portfolio. Shares reduced by 0.47% Diageo PLC ( DEO ) - 67,947 shares, 2.87% of the total portfolio. Added: Diageo PLC ( DEO ) Greenwood Gearhart Inc added to the holdings in Diageo PLC by 40.92%.
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Greenwood Gearhart Inc New Purchases: PG , Added Positions: DEO , SPY , Reduced Positions:CAT, JBHT, JNJ, UTX, CSCO, DIS, KHC, MCD, GLW, FDX, Sold Out:HAR, INTC, For the details of GREENWOOD GEARHART INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GREENWOOD+GEARHART+INC These are the top 5 holdings of GREENWOOD GEARHART INC Wal-Mart Stores Inc ( WMT ) - 121,079 shares, 3.41% of the total portfolio. Shares reduced by 0.47% Diageo PLC ( DEO ) - 67,947 shares, 2.87% of the total portfolio. Added: Diageo PLC ( DEO ) Greenwood Gearhart Inc added to the holdings in Diageo PLC by 40.92%.
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Greenwood Gearhart Inc New Purchases: PG , Added Positions: DEO , SPY , Reduced Positions:CAT, JBHT, JNJ, UTX, CSCO, DIS, KHC, MCD, GLW, FDX, Sold Out:HAR, INTC, For the details of GREENWOOD GEARHART INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GREENWOOD+GEARHART+INC These are the top 5 holdings of GREENWOOD GEARHART INC Wal-Mart Stores Inc ( WMT ) - 121,079 shares, 3.41% of the total portfolio. Shares reduced by 0.47% Diageo PLC ( DEO ) - 67,947 shares, 2.87% of the total portfolio. Added: Diageo PLC ( DEO ) Greenwood Gearhart Inc added to the holdings in Diageo PLC by 40.92%.
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727975.0
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2017-02-16 00:00:00 UTC
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The 10 Best Stocks to Buy and Hold Forever
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DEO
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https://www.nasdaq.com/articles/the-10-best-stocks-to-buy-and-hold-forever-2017-02-16
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Forever is a long time to hold a stock. Most investors hold on to a stock for less time than the late Elizabeth Taylor held on to a husband. Depending on who you ask, the average holding period for a stock has been estimated as anywhere from 11 seconds to five days.
Source: Shutterstock
And it's not just traders doing the churning. Even the index creators seem to be doing a Wall Street version of speed dating at times. Of the 12 stocks that made up the original Dow Jones Industrial Average in 1896, the General Electric Company (NYSE: GE ) is the only one still in the index. And even General Electric was briefly kicked to the curb in the early 1900s.
Yet overtrading can be an investor's worst enemy, as every dollar you spend in trading commissions is a dollar that is no longer compounding and working for you. And there are some stocks that are worth holding on to - forever. If a stock is healthy, growing and ideally throwing off a decent dividend, there's no real reason to dump it.
So today, we're going to take a look at 10 of the best stocks to buy and hold forever.
7 Stocks Warren Buffett Is Buying or Selling
You'll notice something about this list of best stocks: It's pretty lean on technology companies, and there's a good reason for that. Technology is inherently disruptive and also prone to being disrupted itself. Today's tech leaders will likely not be in business a few decades from now. For a list of stocks to buy and hold forever, we're looking for boring, consistent models that have withstood the test of time.
Best Stocks to Buy: General Electric (GE)
Source: Shutterstock
Dividend Yield: 3.2%
Long-Term Growth: 12.1%
I mentioned General Electric earlier, and I figure it's a good stock to start with. GE is a leading American industrial conglomerate that has clearly stood the test of time. It was an original Dow component over a century ago, and it will likely still be around a century from now.
Though for a while, that might have been a dubious statement. Back in 2008, during the pits of the financial crisis, GE had to go to Warren Buffett begging for money. GE's financial arm, like virtually every bank out there, had gotten in over its head. And GE Capital had grown to the point that GE looked more like a mammoth hedge fund than an engineering company.
Thankfully, that has changed. GE has spent the better part of the past decade winding down its financial operations, and GE was recently removed from the list of "systematically important financial institutions." It took time, but GE finally looks like a real industrial company again, and a leading producer of everything from aircraft engines to medical devices.
GE isn't exceptionally cheap right now (few stocks are in this market), but if you're looking at a holding period of forever, then buying at today's prices isn't unreasonable. GE sports a respectable 3.2% dividend.
Best Stocks to Buy: Diageo (DEO)
Source: Mustafa Khayat Via Flickr
Dividend Yield: 3.8%
Long-Term Growth: 9.6%
Unless Islamic State really does conquer the world and turn us all into teetotalers, I'd say it's safe to assume that we'll still be consuming alcohol a century from now. We all know what the world's oldest profession is, but I'd argue that distilling booze is probably mankind's second oldest profession.
And this brings me to global drinks giant Diageo plc (ADR) (NYSE: DEO ). Diageo is about as close to technology proof as you're going to get. At the end of the day, the process of fermentation really doesn't change.
Tastes change, of course, but Diageo's brands span across virtually all tastes and preferences. It owns the popular Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray and Guinness brands, among others, and its portfolio is always expanding.
7 Sports Stocks to Buy That Any Investor Can Own
Diageo isn't cheap at current prices, trading for 25 times earnings. But if you're looking for a stock that is likely to be around decades or even centuries from now, this is it.
Best Stocks to Buy: Anheuser-Busch InBev (BUD)
Source: Paul Sableman via Flickr
Dividend Yield: 3.7%
Long-Term Growth: 6.7%
Along the same lines, I'd recommend Anheuser Busch InBev NV (ADR) (NYSE: BUD ), the world's largest beer brewer. This might seem like an odd choice given that some of BUD's most iconic brands, such as Bud Light, appear to be in terminal decline as drinkers switch to more full-flavored craft beers. After all, it's not uncommon to visit a bar in Dallas and find 17 different local craft beers on tap and not a single national brand like Bud or Miller.
But let's not forget that this is a company that has successfully changed with the times in the past and will likely continue to do so in the future. Bud Light was itself a reaction to changing consumer tastes in the early 1980s, and its launch made beer more palatable to women drinkers at the time.
This time around, BUD is responding to consumer tastes by buying a portfolio of craft beer names. And decades from now, when consumer tastes inevitably shift again, BUD will no doubt change with the times.
BUD is a stock you can safely buy and hold forever.
Best Stocks to Buy: Realty Income (O)
Source: Shutterstock
Dividend Yield: 4.2%
Long-Term Growth: 5%
If any stock can ever claim to be "future-proof," it would be the Monthly Dividend Company, triple-net retail REIT Realty Income Corp (NYSE: O ).
It might seem odd including a retail stock on a list of best stocks to buy and hold forever. Internet commerce continues to eat into brick-and-mortar retail more and more with every passing year, and it's not unreasonable to expect a major wave of retail bankruptcies at some point.
Well, all of that may be true, but I'm not concerned about Realty Income. Its property portfolio is made up mostly of high-traffic retail stores that are critical to daily life. Your local Walgreens Boots Alliance Inc (NASDAQ: WBA ) or CVS Health Corp (NYSE: CVS ) pharmacy is a good example of the "typical" Realty Income property.
I consider O to be one of the safest stocks you can buy. It's bond-like in its predictability but actually a lot better than a bond. Bonds pay a fixed coupon twice per year, but Realty Income pays its dividend monthly, which better aligns your income with your expenses. Dividends also are taxed at a more favorable rate than bond interest.
3 Tire Stocks That Are Burning Rubber in China
But even better, Realty Income actually raises its dividend … and raises it often. O stock has raised its dividend for 77 consecutive quarters and counting.
Best Stocks to Buy: Johnson & Johnson (JNJ)
Source: Dawn Via Flickr
Dividend Yield: 2.7%
Long-Term Growth: 5.9%
It doesn't get much more boring than Band-Aids. A century from now, unless Doctor McCoy's Star Trek tricorder becomes a reality, we're still going to need them, and Johnson & Johnson (NYSE: JNJ ) will still be there to sell them.
Johnson & Johnson is going to be a mainstay on any list of best stocks to buy and hold forever. Most of its products are consumed and disposed, meaning you regularly have to come back for more. And naturally, JNJ is more than just cheap gauze and Band-Aids. It has successful medical device and pharmaceutical businesses as well.
But one nice aspect of all of JNJ's businesses is that none are particularly sensitive to the economy. JNJ is one of the most defensive stocks out there, and one of only two AAA-rated companies left in America.
Johnson & Johnson is a dividend-hiking machine, having raised its dividend for 54 consecutive years and counting. And I'm betting it will still be churning out that dividend a century from now.
Best Stocks to Buy: Berkshire Hathaway (BRK.B)
Source: Elyka Haryani via YouTube
Dividend Yield: N/A
Long-Term Growth: 8.8%
Berkshire Hathaway Inc. (NYSE: BRK.A , NYSE: BRK.B ) might be a peculiar stock to add to a list of stocks to buy forever. After all, Warren Buffett is getting up there in years, and he won't be running the company for much longer unless we find a way to clone him (I'm keeping my fingers crossed).
Alas, I don't see that as being likely. The truth is, we have to get used to the idea of a Berkshire without Buffett
That's OK. The empire that Buffett built is a durable one that will be around long after the Oracle has left us. Buffett has almost always eschewed technology companies (with his purchase of IBM being a glaring and unfortunate exception) because they are prone to disruption. Most of Berkshire's portfolio is full of boring, old-line business like consumer staples and insurance. Berkshire Hathaway also has interests in trains and utilities and in niche businesses like Nebraska Furniture Mart and See's Candies.
7 Stocks to Sell or Short Before the Bears Strike
Nothing about Buffett's empire is interesting. It's as boring as Buffett's home state of Nebraska itself. And that's exactly why I like Berkshire and consider it a safe stock to buy and hold forever.
Best Stocks to Buy: Procter & Gamble (PG)
Source: Mike Mozart via Flickr (Modified)
Dividend Yield: 2.9%
Long-Term Growth: 7.5%
Next up is a stock that was previously one of Berkshire Hathaway's larger holdings: consumer staples giant Procter & Gamble Co (NYSE: PG ).
PG is an interesting study in business models. One of Buffett's reasons for liking its Gillette brand was its predictability. Men would buy a razor and then be lifetime customers buying the expensive blades.
Well, then a funny thing happened. We had the birth of the hipster beard and a revival of old-school safety razors and straight razors… a flood of cheap interest competitors. So suddenly, razor sales are no longer as predictable. But that's precisely why Procter & Gamble's is such a great company. It owns 21 brands that each do over $1 billion in annual sales, so a setback like this in men's razors is something that can be taken in stride.
Procter & Gamble has raised its dividend for over six decades. That's about as dependable as you can get and yet another reason why Procter & Gamble is a company you can safely buy and hold forever.
Best Stocks to Buy: Nestlé (NSRGY)
Source: Shutterstock
Dividend Yield: 2.7%
Long-Term Growth: 8.4%
Next up is Swiss confectionery giant NestléSA (ADR) (OTCMKTS: NSRGY ). Nestlé's business is easy to understand. It sells food and nutrition products, including everything from baby formula and chocolate milk to packaged food and instant coffee … including my beloved Nespresso machine. These tend to be recession-proof products as well as future-proof products. No matter how humans might evolve in the decades to come, I expect they will still be drinking their morning coffee a century from now.
Nestlé has really struggled with a difficult currency environment in recent years. Europeans wary of the euro have been piling into francs, which has forced the Swiss National Bank to take extraordinary measures to push the value of the franc back down to more reasonable levels.
All of this has scared investors away from Swiss stocks. But remember, we're talking about a time horizon of forever here, and this too will pass. Nestlé has experience navigating currency minefields, and it will survive whatever the world's central bankers throw at it.
7 Tech Stocks That Could Implode at Any Minute
At current prices, Nestlé yields just under 3% in dividends, and it has a long history of raising that dividend.
Best Stocks to Buy: Unilever (UL)
Source: Sean Biehle via Flickr
Dividend Yield: 3.3%
Long-Term Growth: 4.8%
Along the same lines, I'd recommend Anglo-Dutch consumer staples and food company Unilever plc (ADR) (NYSE: UL ).
I'll admit to being a little too fond of one of Unilever's iconic brands… Ben & Jerry's Cherry Garcia ice cream. But Unilever sells a lot more than just ice cream. If you've been in a supermarket anywhere in the world, you are familiar with Unilever's brands. Among many, many others, they include Axe, Bertolli, Dove, Lipton, St Ives, VO5 and Vaseline.
I don't know what the future will look like decades from now, but I'm pretty sure we'll still be purchasing food and personal care products … and Unilever is likely to still be selling them.
Unilever has had a rough go at it in recent years because it gets a large chunk of its revenues from emerging markets, which have been a real minefield. But longer term, Unilever's exposure to emerging markets is a major source of strength. Population growth and disposable income growth is much higher in the developing world. And Unilever is cultivating the consumer relationships today that will power its growth decades from now.
At today's prices, Unilever yields about 3.3% in dividends. This is a stock you can buy and safely forget about for years or decades, all while collecting a nice dividend.
Best Stocks to Buy: S&P 500 ETF (SPY)
Dividend Yield: 1.9%
Long-Term Growth: N/A
I would be remiss if I didn't at least mention an index fund in a list of stocks to buy and hold forever. I'm a little wary of the U.S. market right now, as eight years of nearly uninterrupted bull markets have left stocks looking pricey.
The S&P 500's cyclically adjusted price-earnings ratio, which takes a 10-year average of earnings in an attempt to smooth out the business cycle, is now an eye-popping 29.3, which implies that the next several years might be rough.
Still, we're talking about forever here. If you're looking to buy something, drop it in that proverbial drawer and not look at it again for decades, then it's hard to beat something like the SPDR S&P 500 ETF (NYSEARCA: SPY ). You're getting a basket of the world's finest companies and you're paying a ridiculously low 0.9% in fees.
3 Stocks to Buy for Under $10 With 25%-Plus Upside
Over the very long term, the market has returned 7% to 10% per year. So having a little index exposure makes all the sense in the world.
Charles Sizemore is the principal of Sizemore Capital , a wealth management firm in Dallas, Texas.
The post The 10 Best Stocks to Buy and Hold Forever appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Best Stocks to Buy: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 3.8% Long-Term Growth: 9.6% Unless Islamic State really does conquer the world and turn us all into teetotalers, I'd say it's safe to assume that we'll still be consuming alcohol a century from now. And this brings me to global drinks giant Diageo plc (ADR) (NYSE: DEO ). After all, it's not uncommon to visit a bar in Dallas and find 17 different local craft beers on tap and not a single national brand like Bud or Miller.
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Best Stocks to Buy: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 3.8% Long-Term Growth: 9.6% Unless Islamic State really does conquer the world and turn us all into teetotalers, I'd say it's safe to assume that we'll still be consuming alcohol a century from now. And this brings me to global drinks giant Diageo plc (ADR) (NYSE: DEO ). Best Stocks to Buy: General Electric (GE) Source: Shutterstock Dividend Yield: 3.2% Long-Term Growth: 12.1% I mentioned General Electric earlier, and I figure it's a good stock to start with.
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Best Stocks to Buy: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 3.8% Long-Term Growth: 9.6% Unless Islamic State really does conquer the world and turn us all into teetotalers, I'd say it's safe to assume that we'll still be consuming alcohol a century from now. And this brings me to global drinks giant Diageo plc (ADR) (NYSE: DEO ). Best Stocks to Buy: Realty Income (O) Source: Shutterstock Dividend Yield: 4.2% Long-Term Growth: 5% If any stock can ever claim to be "future-proof," it would be the Monthly Dividend Company, triple-net retail REIT Realty Income Corp (NYSE: O ).
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Best Stocks to Buy: Diageo (DEO) Source: Mustafa Khayat Via Flickr Dividend Yield: 3.8% Long-Term Growth: 9.6% Unless Islamic State really does conquer the world and turn us all into teetotalers, I'd say it's safe to assume that we'll still be consuming alcohol a century from now. And this brings me to global drinks giant Diageo plc (ADR) (NYSE: DEO ). BUD is a stock you can safely buy and hold forever.
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f4100989-b7dc-4f1b-89d2-73ef25292d1f
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727976.0
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2017-01-27 00:00:00 UTC
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Diageo (DEO) First Half 2017 Sales Gain on Higher Volume
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DEO
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https://www.nasdaq.com/articles/diageo-deo-first-half-2017-sales-gain-on-higher-volume-2017-01-27
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nan
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nan
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Diageo plc'sDEO earnings in first-half fiscal 2017 increased 21% (in local currency) year over year to 61.7 pence (78.4 cents* per share) from 51.3 pence (86 cents* per share) driven by higher sales.
On an organic basis, net sales increased 4.4% backed by volume growth and positive price mix. Volume increased 1.8% on an organic basis.
Reported net sales (i.e. total revenue excluding excise duties) gained 14.5% in local currency in first-half fiscal 2017. Operating profit before exceptional items (excluding acquisitions and disposals) went up 4.4% year over year on an organic basis.
Segment Details
In North America , organic sales gained 3%, driven by strong performance in each market - US Spirits, Diageo Beer Company USA and Canada.
Operating profit increased 26% in the reported period. Operating margin inflated 131 basis points (bps) as backed by higher gross margin coupled with marketing efficiencies, and zero-based budgeting lowering costs.
Sales gain of spirits and Ready-to-Drink partially neutralized decline in beer sales during the period.
In Europe, Russia and Turkey , organic sales increased 5%, backed by sales growth in almost Continental Europe. Diageo gained share in the Europe with continued growth in Great Britain and improved performance in Continental Europe.
Operating profit increased 19%, while operating margin in the region inflated 37 bps primarily due to the continuing productivity work and positive price/mix.
While sales of beer remained same, that of spirits gained 6%. However, sales of Ready-to-Drink declined 5% in the region.
Organic sales in Africa increased 4%, with 3% volume growth owing to strong gains in the premium brands. Operating profit declined 4% in the region, while operating margins decreased 37 bps primarily due to the impact of adverse mix in Nigeria and East Africa.
Marketing gained3% in the region with investment being focused on key campaigns including Satzenbrau Smart Choice.
The Latin America and Caribbean region's performance was sturdy in first-half fiscal 2017, with 11% growth in organic sales backed by solid performances across the Mexico, Andean and CCA was offset by weak performance in Brazil. Operating margin increased 60 bps, primarily driven by positive mix, lower marketing spend in Brazil and marketing efficiencies in Colombia.
Marketing spend declined 6% with reductions in Brazil partially offset by increased spend in Mexico. In Mexico, the company focused on driving scotch performance through Johnnie Walker.
In the Asia Pacific region, sales increased 3% backed by higher sales in Australia, South East Asia, Greater China and India, partially neutralized by decline in North Asia and Travel Retail in Middle East and Asia. Operating profit increased 11%. Adjusted operating margin inflated 43 bps, due to positive mix and productivity initiatives .
Management reduced marketing expenditure by 6%, due to lower market in Korea and Thailand.
Other Updates
Diageo is focusing more on spirits brands. In fiscal 2016, the company announced its decision to sell majority of its U.S. and British wine operations for $552 million to the Australian company, Treasury Wine Estates. Further, the deal included the sale of U.S.-based Chateau and Estate Wines, and the Percy Fox businesses based in the U.K. The proceeds were used to repay the borrowings.
The company hiked its interim dividend by 5% to 23.7 pence.
Outlook
Management expects volume growth backed by stronger top-line performance. Margins are expected to improve slightly. Moreover, management expects mid-single digit top-line growth and 100 bps of organic operating margin improvement by 2019.
Bottom Line
We note that Diageo, which shares space with companies like Molson Coors Brewing Company TAP and Boston Beer Inc. SAM , is making efforts to focus on its spirits business, as a result of which it has planned to divest non-core assets.
However, increasing restrictions on alcohol consumption by governments worldwide have dented revenue growth for the industry as a whole. The shares of the company gained 4.7% in the last three months, outperforming the Zacks categorized Beverages Alcohol industry which has dropped almost 6.6% in the same period.
Zacks Rank & Key Pick
Diageo currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the same sector includes Constellation Brands Inc. STZ carrying a Zacks Rank #2 (Buy) and has an expected long-term growth of 19%. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
*£1=$1.27 (average price of the half year ended Dec 31, 2016).
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Molson Coors Brewing Company (TAP): Free Stock Analysis Report
Diageo PLC (DEO): Free Stock Analysis Report
Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report
Constellation Brands Inc (STZ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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'sDEO earnings in first-half fiscal 2017 increased 21% (in local currency) year over year to 61.7 pence (78.4 cents* per share) from 51.3 pence (86 cents* per share) driven by higher sales. Click to get this free report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report To read this article on Zacks.com click here. Reported net sales (i.e. total revenue excluding excise duties) gained 14.5% in local currency in first-half fiscal 2017.
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Diageo plc'sDEO earnings in first-half fiscal 2017 increased 21% (in local currency) year over year to 61.7 pence (78.4 cents* per share) from 51.3 pence (86 cents* per share) driven by higher sales. Click to get this free report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report To read this article on Zacks.com click here. Operating margin increased 60 bps, primarily driven by positive mix, lower marketing spend in Brazil and marketing efficiencies in Colombia.
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Click to get this free report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc'sDEO earnings in first-half fiscal 2017 increased 21% (in local currency) year over year to 61.7 pence (78.4 cents* per share) from 51.3 pence (86 cents* per share) driven by higher sales. Segment Details In North America , organic sales gained 3%, driven by strong performance in each market - US Spirits, Diageo Beer Company USA and Canada.
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Diageo plc'sDEO earnings in first-half fiscal 2017 increased 21% (in local currency) year over year to 61.7 pence (78.4 cents* per share) from 51.3 pence (86 cents* per share) driven by higher sales. Click to get this free report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report To read this article on Zacks.com click here. On an organic basis, net sales increased 4.4% backed by volume growth and positive price mix.
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22a039ee-4660-4d67-8eee-7d56bbab3ac3
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727977.0
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2017-01-26 00:00:00 UTC
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Scotch Sales Drive Diageo plc's Growth
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DEO
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https://www.nasdaq.com/articles/scotch-sales-drive-diageo-plcs-growth-2017-01-26
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nan
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nan
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The global spirits industry continues to be strong, driving results for Diageo plc (NYSE: DEO) higher in the first half of fiscal 2017, for which it reported results Thursday. Currency changes helped growth (and keep in mind that the numbers below are in Diageo's reported British pounds and pence), but organic trends for the business are strong nonetheless.
Diageo results: The raw numbers
Data source: Diageo plc. 1H = first half.
What happened with Diageo this quarter?
The spirits business continues steady growth around the world, and Diageo's key brands are well-positioned to take advantage. But keep in mind that the high growth numbers you see above take into account a big boost from exchange rates while organic growth in net sales, for instance, was a more modest 4%. Here's a little more context for what investors should be watching:
A positive change in exchange rates helped drive sales higher in pound-denominated terms. There was a net 815-million-pound increase in sales in the first half of fiscal 2017; 853 million pounds was due to exchange rates while 270 million pounds was due to organic movement. Looking at organic changes in volume and revenue gives a clearer explanation of the business than the top-line numbers do.
Overall, organic volume at Diageo was up 3% and organic net sales were up 6%.
If there's one spirit that drives Diageo's results, it's Johnnie Walker. The blended scotch is extremely popular in Latin America and the Asia Pacific region and it saw organic volume growth of 4% and organic net sales improvement of 5%.
The other two spirits performing extremely well are Crown Royal, which saw organic volume rise 15% and organic sales rise 17%, and Bulleit, which was up 27% in organic volume and 29% in organic sales.
Tequila volume overall was up 22% on an organic basis, and sales were up 18%, driven by Don Julio sales in the U.S. But at just 2% of sales, the impact on the business overall is fairly small.
While scotch sales improved (up 6%) and North American whiskey jumped (up 15%), vodka sales fell 2% in the period as demand for the spirit waned around the world. Smirnoff and Ketel One were the two brands that took the brunt of the decline, and right now there's no turnaround on the horizon.
What management had to say
The strategy of building and acquiring strong brands and then spreading them through Diageo's wide distribution network is working, which can be seen by a 28% increase in operating profit (to 2.07 billion pounds), compared to a 15% increase in net sales. And with scotch and American whiskey demand continuing to outpace supply, especially on the high end of the market, steady growth will likely continue.
Management continues to focus on building a positive brand experience and a more sustainable business. For investors considering this as a long-term investment, that's encouraging.
Looking forward
Management continues to expect mid-single-digit growth; a 100-basis-point organic operating margin improvement is possible between mid-2016 and mid-2019. In a business with the kind of staying power that spirits have, that kind of long-term focus is what investors should be looking for.
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Travis Hoium has no position in any 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 global spirits industry continues to be strong, driving results for Diageo plc (NYSE: DEO) higher in the first half of fiscal 2017, for which it reported results Thursday. Currency changes helped growth (and keep in mind that the numbers below are in Diageo's reported British pounds and pence), but organic trends for the business are strong nonetheless. The spirits business continues steady growth around the world, and Diageo's key brands are well-positioned to take advantage.
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The global spirits industry continues to be strong, driving results for Diageo plc (NYSE: DEO) higher in the first half of fiscal 2017, for which it reported results Thursday. Here's a little more context for what investors should be watching: A positive change in exchange rates helped drive sales higher in pound-denominated terms. There was a net 815-million-pound increase in sales in the first half of fiscal 2017; 853 million pounds was due to exchange rates while 270 million pounds was due to organic movement.
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The global spirits industry continues to be strong, driving results for Diageo plc (NYSE: DEO) higher in the first half of fiscal 2017, for which it reported results Thursday. Overall, organic volume at Diageo was up 3% and organic net sales were up 6%. The blended scotch is extremely popular in Latin America and the Asia Pacific region and it saw organic volume growth of 4% and organic net sales improvement of 5%.
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The global spirits industry continues to be strong, driving results for Diageo plc (NYSE: DEO) higher in the first half of fiscal 2017, for which it reported results Thursday. There was a net 815-million-pound increase in sales in the first half of fiscal 2017; 853 million pounds was due to exchange rates while 270 million pounds was due to organic movement. Overall, organic volume at Diageo was up 3% and organic net sales were up 6%.
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9bfd882f-8cf2-44cc-96f9-49daa17946a1
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727978.0
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2017-01-24 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-2017-01-24
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nan
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nan
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In trading on Tuesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $109.12, changing hands as high as $109.43 per share. Diageo plc shares are currently trading up about 0.4% 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 $99.46 per share, with $117.84 as the 52 week high point - that compares with a last trade of $109.10.
According to the ETF Finder at ETF Channel, DEO makes up 2.70% of the Vanguard FTSE Europe ETF (Symbol: VGK) which is trading lower by about 0.1% on the day Tuesday.
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 Tuesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $109.12, changing hands as high as $109.43 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 $99.46 per share, with $117.84 as the 52 week high point - that compares with a last trade of $109.10. According to the ETF Finder at ETF Channel, DEO makes up 2.70% of the Vanguard FTSE Europe ETF (Symbol: VGK) which is trading lower by about 0.1% on the day Tuesday.
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In trading on Tuesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $109.12, changing hands as high as $109.43 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 $99.46 per share, with $117.84 as the 52 week high point - that compares with a last trade of $109.10. According to the ETF Finder at ETF Channel, DEO makes up 2.70% of the Vanguard FTSE Europe ETF (Symbol: VGK) which is trading lower by about 0.1% on the day Tuesday.
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In trading on Tuesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $109.12, changing hands as high as $109.43 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 $99.46 per share, with $117.84 as the 52 week high point - that compares with a last trade of $109.10. According to the ETF Finder at ETF Channel, DEO makes up 2.70% of the Vanguard FTSE Europe ETF (Symbol: VGK) which is trading lower by about 0.1% on the day Tuesday.
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In trading on Tuesday, shares of Diageo plc (Symbol: DEO) crossed above their 200 day moving average of $109.12, changing hands as high as $109.43 per share. According to the ETF Finder at ETF Channel, DEO makes up 2.70% of the Vanguard FTSE Europe ETF (Symbol: VGK) which is trading lower by about 0.1% on the day Tuesday. 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 $99.46 per share, with $117.84 as the 52 week high point - that compares with a last trade of $109.10.
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adf73db1-7048-447d-8c2c-838157a7b25d
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727979.0
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2017-01-24 00:00:00 UTC
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Diageo's Johnnie Walker Lends Asian Touch to Blue Label
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DEO
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https://www.nasdaq.com/articles/diageos-johnnie-walker-lends-asian-touch-to-blue-label-2017-01-24
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nan
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nan
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Leading brewer and distiller, Diageo plcDEO is geared to capitalize on the Asian market by catering to sentiments of the local populace of Asia. In sync with this initiative Johnnie Walker Blue Label is set to welcome the Chinese Lunar New Year with a Year of the Rooster limited edition bottle.
The blended scotch is available nationwide at spirit outlets with a suggested retail price of $258.00 (750 ml/bottle, 43% ABV).
The Year of the Rooster bottle is the fourth edition of the annual limited edition series. The first edition was the Year of the Horse limited edition bottle. This line of Blue Label is inspired by the enduring legacy of the Chinese Zodiac.
The latest whiskey features the rare blend that is unique to the Blue Label blend. The special release marking the occasion of the auspicious Lunar New Year, ho
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Leading brewer and distiller, Diageo plcDEO is geared to capitalize on the Asian market by catering to sentiments of the local populace of Asia. The blended scotch is available nationwide at spirit outlets with a suggested retail price of $258.00 (750 ml/bottle, 43% ABV). This line of Blue Label is inspired by the enduring legacy of the Chinese Zodiac.
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Leading brewer and distiller, Diageo plcDEO is geared to capitalize on the Asian market by catering to sentiments of the local populace of Asia. In sync with this initiative Johnnie Walker Blue Label is set to welcome the Chinese Lunar New Year with a Year of the Rooster limited edition bottle. The Year of the Rooster bottle is the fourth edition of the annual limited edition series.
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Leading brewer and distiller, Diageo plcDEO is geared to capitalize on the Asian market by catering to sentiments of the local populace of Asia. In sync with this initiative Johnnie Walker Blue Label is set to welcome the Chinese Lunar New Year with a Year of the Rooster limited edition bottle. The Year of the Rooster bottle is the fourth edition of the annual limited edition series.
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Leading brewer and distiller, Diageo plcDEO is geared to capitalize on the Asian market by catering to sentiments of the local populace of Asia. In sync with this initiative Johnnie Walker Blue Label is set to welcome the Chinese Lunar New Year with a Year of the Rooster limited edition bottle. The blended scotch is available nationwide at spirit outlets with a suggested retail price of $258.00 (750 ml/bottle, 43% ABV).
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c716b458-8aac-44b7-bb6d-2d60ba4c85c3
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727980.0
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2017-01-17 00:00:00 UTC
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Diageo (DEO) Poised to Grow in 2017: Should You Hold?
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DEO
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https://www.nasdaq.com/articles/diageo-deo-poised-to-grow-in-2017%3A-should-you-hold-2017-01-17
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Leading brewer Diageo plc.DEO seems to be a good choice for investors to hold onto seeking growth in 2017. In spite of the company's declining volumes in the past few quarters and the near-term headwinds it faces, we believe that it is likely to bounce back on growth trajectory driven by its product innovation and high margin portfolio.
The shares of the company gained 5.3% in the past one year, outperforming the Zacks categorized Beverages-Alcoholic industry which has gained 4.1% during the same period. Let us delve deep and find out what is going on with the stock.
Leading Market Share in All Geographies
Diageo, a global leader in spirits, has majority market share in nearly every spirit category in Europe and the U.S., two of its largest markets.
Growing Spirits Category
Most of the companies in the spirits market like Diageo, Boston Beer Inc. SAM and Molson Coors Brewing Company TAP are experiencing declining volumes. However, the spirits and wine market as a whole is getting an uptick, as younger generations are also consuming more spirits. Notably, Diageo is making efforts to focus on its spirits business, as a result of which it has planned to divest non-core assets. In Nov 2016, the company sold the majority of its U.S. and British wine operations to the Australian company, Treasury Wine Estates. Earlier in July, Diageo had sold luxury hotel and golf resort, Gleneagles, located in Scotland, to a private equity firm Ennismore Capital, to cut costs and bolster profits. These moves reaffirm its plans to focus more on the core spirits business.
Innovation and Adaption to Changing Demands
Diageo is set to capture the growing market of spirits and is innovating newer varieties of spirits to entice the growing consumer base. Further, the company is penetrating fast into emerging markets with the help of acquisitions.
In order to combat the slowdown in the spirits market, the company is striving to sustain its market share by adapting to the changing demands of the consumers. As a testimony to this effort, Diageo launched the new malt flavored SMIRNOFF Spiked Sparkling Seltzer beverage with only 90 calories and zero sugar in the beginning of 2017, which provides a guilt free drinking experience to its calorie conscious consumers.
Although the Zacks Rank #3 (Hold) company maintains a leadership position in the spirits market, we notice increasing restrictions on alcohol consumption by governments worldwide have dented revenue growth.
However, the sinful nature of its products is an advantage for the stock. Alcohol Beverage sector in particular has always been alluring for investors, as these sinful stocks always yield handsome returns for the portfolio. Since people drink both during times of recession as well as economic growth, such stocks are sometimes valued at a higher premium than companies that are more sensitive to economic trends. As a result, these stocks always benefit from the addictive nature of their products.
Key Pick
A better-ranked stock in the same sector is Constellation Brands Inc. STZ carrying a Zacks Rank #2 (Buy) and has an expected long-term growth of 19%. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
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Molson Coors Brewing Company (TAP): Free Stock Analysis Report
Diageo PLC (DEO): Free Stock Analysis Report
Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report
Constellation Brands Inc (STZ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Leading brewer Diageo plc.DEO seems to be a good choice for investors to hold onto seeking growth in 2017. Click to get this free report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report To read this article on Zacks.com click here. In spite of the company's declining volumes in the past few quarters and the near-term headwinds it faces, we believe that it is likely to bounce back on growth trajectory driven by its product innovation and high margin portfolio.
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Click to get this free report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report To read this article on Zacks.com click here. Leading brewer Diageo plc.DEO seems to be a good choice for investors to hold onto seeking growth in 2017. Growing Spirits Category Most of the companies in the spirits market like Diageo, Boston Beer Inc. SAM and Molson Coors Brewing Company TAP are experiencing declining volumes.
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Click to get this free report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report To read this article on Zacks.com click here. Leading brewer Diageo plc.DEO seems to be a good choice for investors to hold onto seeking growth in 2017. Leading Market Share in All Geographies Diageo, a global leader in spirits, has majority market share in nearly every spirit category in Europe and the U.S., two of its largest markets.
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Leading brewer Diageo plc.DEO seems to be a good choice for investors to hold onto seeking growth in 2017. Click to get this free report Molson Coors Brewing Company (TAP): Free Stock Analysis Report Diageo PLC (DEO): Free Stock Analysis Report Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report To read this article on Zacks.com click here. Growing Spirits Category Most of the companies in the spirits market like Diageo, Boston Beer Inc. SAM and Molson Coors Brewing Company TAP are experiencing declining volumes.
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d212818e-c75f-4ad1-942d-fd98239c087b
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727981.0
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2017-01-05 00:00:00 UTC
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Diageo (DEO) Launches SMIRNOFF Seltzer With Low Calories
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DEO
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https://www.nasdaq.com/articles/diageo-deo-launches-smirnoff-seltzer-with-low-calories-2017-01-05
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Leading brewer and distiller, Diageo plcDEO offers customers an opportunity to ring in the New Year with a toast to health. The new SMIRNOFF Spiked Sparkling Seltzer presents a win-win situation, as this malt flavored beverage comes with only 90 calories and zero sugar, providing a guilt free drinking experience.
The seltzer comes in 12 oz. serving cans and is composed of 4.5% alcohol by volume (ABV) with only 1g carbs, zero sugar and no artificial sweeteners. Diageo claims that a 12 oz. can of seltzer has lesser calories than a standard 5 oz. serving of leading champagne brands in the market. It comes at a retail price of $8.99 for a 6-pack of 12 oz. cans of seltzer. The Spiked Sparkling Seltzer are said to be gluten free and comes in three natural fruit flavors - Orange Mango, Cranberry Lime and Watermelon.
The company persistently carries out innovations to enrich its portfolio. In 2016, Diageo added Crown Royal Vanilla Flavored Whisky and Jack-O'Blast Limited Edition Pumpkin Spiced Rum to its already rich spirit portfolio.
We note that Diageo, which shares space with companies like Molson Coors Brewing Company TAP and Constellation Brands Inc. STZ , is making efforts to focus on its spirits business, as a result of which it has planned to divest non-core assets. Recently, the company sold the majority of its U.S. and British wine operations to the Australian company, Treasury Wine Estates. Earlier in July, Diageo had sold luxury hotel and golf resort, Gleneagles, located in Scotland, to a private equity firm Ennismore Capital, to cut costs and bolster profits. The move reaffirmed its plans to focus more on the core spirits business.
Though the above mentioned initiatives boost our confidence in the stock, certain inherent issues raise our concerns for the same. Declining volumes has been a drag on top line for the past few quarters. Moreover, increasing restrictions on alcohol consumption by governments worldwide have dented revenue growth for the industry as a whole. However, the aforementioned initiatives taken have been able to cushion the stock to an extent. The shares of the company declined 7% in the last three months, outperforming the Zacks categorized Beverages Alcohol industry which has slumped almost 14% in the same period.
Zacks Rank & Key Pick
Diageo currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the same sector includes Boston Beer Inc. SAM carrying a Zacks Rank #2 (Buy) and an expected long-term growth of 12%. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
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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
MOLSON COORS-B (TAP): Free Stock Analysis Report
DIAGEO PLC-ADR (DEO): Free Stock Analysis Report
BOSTON BEER INC (SAM): Free Stock Analysis Report
CONSTELLATN BRD (STZ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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Leading brewer and distiller, Diageo plcDEO offers customers an opportunity to ring in the New Year with a toast to health. Click to get this free report MOLSON COORS-B (TAP): Free Stock Analysis Report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report BOSTON BEER INC (SAM): Free Stock Analysis Report CONSTELLATN BRD (STZ): Free Stock Analysis Report To read this article on Zacks.com click here. The new SMIRNOFF Spiked Sparkling Seltzer presents a win-win situation, as this malt flavored beverage comes with only 90 calories and zero sugar, providing a guilt free drinking experience.
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Click to get this free report MOLSON COORS-B (TAP): Free Stock Analysis Report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report BOSTON BEER INC (SAM): Free Stock Analysis Report CONSTELLATN BRD (STZ): Free Stock Analysis Report To read this article on Zacks.com click here. Leading brewer and distiller, Diageo plcDEO offers customers an opportunity to ring in the New Year with a toast to health. A better-ranked stock in the same sector includes Boston Beer Inc. SAM carrying a Zacks Rank #2 (Buy) and an expected long-term growth of 12%.
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Click to get this free report MOLSON COORS-B (TAP): Free Stock Analysis Report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report BOSTON BEER INC (SAM): Free Stock Analysis Report CONSTELLATN BRD (STZ): Free Stock Analysis Report To read this article on Zacks.com click here. Leading brewer and distiller, Diageo plcDEO offers customers an opportunity to ring in the New Year with a toast to health. We note that Diageo, which shares space with companies like Molson Coors Brewing Company TAP and Constellation Brands Inc. STZ , is making efforts to focus on its spirits business, as a result of which it has planned to divest non-core assets.
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Leading brewer and distiller, Diageo plcDEO offers customers an opportunity to ring in the New Year with a toast to health. Click to get this free report MOLSON COORS-B (TAP): Free Stock Analysis Report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report BOSTON BEER INC (SAM): Free Stock Analysis Report CONSTELLATN BRD (STZ): Free Stock Analysis Report To read this article on Zacks.com click here. The seltzer comes in 12 oz.
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df8b5bfd-aba2-47f1-aaed-98aec58fe7fa
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727982.0
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2016-12-24 00:00:00 UTC
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GlaxoSmithKline, Vodafone Hit ‘-Year Low Prices
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DEO
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https://www.nasdaq.com/articles/glaxosmithkline-vodafone-hit-year-low-prices-2016-12-24
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GlaxoSmithKline PLC ( GSK ), Diageo PLC ( DEO ), V odafone Group PLC ( VOD ) and National Grid PLC ( NGG ) have reached their three-year low prices.
GlaxoSmithKline PLC ( GSK ) reached $'8.'5
The prices of GlaxoSmithKline shares have declined to $'8.'5, which is only '% above the three-year low of $'7.-….
GlaxoSmithKline is a British pharmaceutical company. It is the world's sixth largest pharmaceutical company as of -…-5. The company's drugs and vaccines earned over £--.' billion in -…-', and its top-selling products included Advair, Avodart, Flovent and Lamictal.
GlaxoSmithKline has a market cap of $9'.4' billion; its
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GlaxoSmithKline PLC ( GSK ), Diageo PLC ( DEO ), V odafone Group PLC ( VOD ) and National Grid PLC ( NGG ) have reached their three-year low prices. GlaxoSmithKline is a British pharmaceutical company. It is the world's sixth largest pharmaceutical company as of -…-5.
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GlaxoSmithKline PLC ( GSK ), Diageo PLC ( DEO ), V odafone Group PLC ( VOD ) and National Grid PLC ( NGG ) have reached their three-year low prices. GlaxoSmithKline PLC ( GSK ) reached $'8. '5, which is only '% above the three-year low of $'7.-….
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GlaxoSmithKline PLC ( GSK ), Diageo PLC ( DEO ), V odafone Group PLC ( VOD ) and National Grid PLC ( NGG ) have reached their three-year low prices. GlaxoSmithKline PLC ( GSK ) reached $'8. GlaxoSmithKline is a British pharmaceutical company.
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GlaxoSmithKline PLC ( GSK ), Diageo PLC ( DEO ), V odafone Group PLC ( VOD ) and National Grid PLC ( NGG ) have reached their three-year low prices. '5 The prices of GlaxoSmithKline shares have declined to $'8. GlaxoSmithKline is a British pharmaceutical company.
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de52fccf-4e25-413e-b777-3f2f1343b09b
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727983.0
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2016-12-17 00:00:00 UTC
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Top Sin Stocks to Buy in 2017
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DEO
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https://www.nasdaq.com/articles/top-sin-stocks-buy-2017-2016-12-17
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Vices seem to have a way of being present through economic good times and bad, and that dynamic can make sin stocks that serve those vices attractive for long-term investors.
Looking over the market in 2017, the sin stock landscape has changed from previous years. The alcohol business has consolidated, casino companies are making very little money outside of Asia, and smoking seems to be dying a slow death. Still, there are a few attractive sin stocks on the market.
BF.A revenue (TTM) data by YCharts .
Dividend yields of 1.6% from Brown-Forman and 3.6% from Diageo are attractive as well. And with cash consistently coming in from sales of a diverse set of spirits these are dividends to count on long term.
The best stocks in gaming
Casino stocks today are struggling to decide whether the future is getting brighter or more risky. After two years of gaming declines, Macau is now on the rise again, but a new crackdown on ATM withdrawals by Chinese citizens has investors worried. In the U.S., the gaming market isn't growing very much, but Las Vegas has become a place of stability for gaming operators.
It's through that lens that MGM Resorts International (NYSE: MGM) and Las Vegas Sands Corp. (NYSE: LVS) provide the best opportunity for investors. Las Vegas Sands has an incredibly diverse business in Las Vegas, Macau, and Singapore, which throws off billions of dollars in cash flow each year. The most important use of that cash flow today is through paying a dividend, which stands at a 5.2% yield today.
MGM Resorts is the steady player in gaming, operating primarily in Las Vegas. I recently highlighted that less exposure to Macau and a declining debt load have made MGM a top-performing stock for investors over the past two years. And with Las Vegas continuing to grow at a slow and steady pace, MGM will be a great stock for 2017 as well.
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*Stock Advisor returns as ofDecember 12 , 2016
The author(s) may have a position in any stocks mentioned. The Motley Fool owns and recommends shares of Apple.
Travis Hoium owns shares of Molson Coors Brewing. The Motley Fool owns shares of and recommends Anheuser-Busch InBev NV and Boston Beer. The Motley Fool recommends Diageo. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 alcohol business has consolidated, casino companies are making very little money outside of Asia, and smoking seems to be dying a slow death. After two years of gaming declines, Macau is now on the rise again, but a new crackdown on ATM withdrawals by Chinese citizens has investors worried. I recently highlighted that less exposure to Macau and a declining debt load have made MGM a top-performing stock for investors over the past two years.
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It's through that lens that MGM Resorts International (NYSE: MGM) and Las Vegas Sands Corp. (NYSE: LVS) provide the best opportunity for investors. Las Vegas Sands has an incredibly diverse business in Las Vegas, Macau, and Singapore, which throws off billions of dollars in cash flow each year. The Motley Fool owns and recommends shares of Apple.
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The best stocks in gaming Casino stocks today are struggling to decide whether the future is getting brighter or more risky. Las Vegas Sands has an incredibly diverse business in Las Vegas, Macau, and Singapore, which throws off billions of dollars in cash flow each year. After all, the newsletter they have run for over a decade, the Motley Fool Stock Advisor, has tripled the market.
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Still, there are a few attractive sin stocks on the market. In the U.S., the gaming market isn't growing very much, but Las Vegas has become a place of stability for gaming operators. After all, the newsletter they have run for over a decade, the Motley Fool Stock Advisor, has tripled the market.
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a57366d9-080a-4140-8954-992abc722f5e
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727984.0
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2016-12-08 00:00:00 UTC
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3 European Stocks to Buy for Big-Time Dividends
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DEO
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https://www.nasdaq.com/articles/3-european-stocks-to-buy-for-big-time-dividends-2016-12-08
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InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Brexit, the Quitaly , generally high unemployment, the ripping apart of the E.U., low stagnating growth, double- and triple-dip recessions - you name it, the Old Country is suffering from it. With that in mind, European stocks certainty aren't at the top of investor's lists when it comes hot investment destinations. After all, would you really want to plunk a pile of hard-earned cash on European stocks right now, with all of this mess going on?
Source: Grab Media
The answer should be a resounded yes.
Sure, Europe does have its warts. But you know what else it has? Some of the largest multinationals on the planet. The truth is, they get just as much - if not more - of their revenues from sources outside of Europe. And sales continue to be good, as they have looked towards emerging Asia for their sales. It's just that the domestic economy is pretty darn bad.
But in that "badness," investors can find opportunities - namely in some top European dividend stocks. The yield on the broad and multinational-filled Vanguard FTSE Europe ETF (NYSEARCA: VGK ) is a whopping 3.5%.
The Best Investments for 2017
In the end, European dividend stocks are a tremendous value to income seekers. And here are three of those European stocks to buy today.
European Stocks to Buy for Big Dividends: Diageo (DEO)
Dividend Yield: 3%
What do Johnnie Walker, Smirnoff, Captain Morgan and Guinness all have in common? They happen to be some of the biggest brands in their respective alcohol categories and have billions in annual global sales. They also happen to be owned and produced by Diageo plc(ADR) (NYSE: DEO ). All in all, DEO's brand range includes 14 of the top 100 premium distilled spirits brands and seven of the top-20 premium spirits brands worldwide .
That gives DEO a massive global footprint that isn't really affected by what happens in Europe. In fact, Diageo has spent much of the last few years adding capacity and brands in far-off locales such as India and China to gain from the growing consumer markets in these places. These areas continue to see strong case volumes, sales and brand retention among drinkers. Meanwhile, new organic, natural flavors and varied promotions have helped turned the tide in slowing North American sales.
What it really means is that DEO stock remains a powerhouse of the global booze industry that continues to churn put healthy cash flows - cash flows that have trickled down to investors as big-time dividends.
Since its founding in 1998, Diageo has steadily paid a dividend semi-annually . That dividend has varied, as European dividend stocks base their payouts on percentages of profits, not a steady amount.
DEO currently yields 3%.
European Stocks to Buy for Big Dividends: Novo Nordisk (NVO)
Dividend Yield: 2.6%
When it comes to European stocks of multinationals, the healthcare sector is where the content really shines. And shining brightest of all is Novo Nordisk A/S (ADR) (NYSE: NVO ).
NVO has plenty of exposure to various therapies and drugs, but where it really makes its money is from diabetes. Diabetes has become a worldwide epidemic with new instances rising every year. Increased sedentary lifestyles, diets high in fatty processed foods and other cultural reasons have made the diseases more prevalent in our global society. The International Diabetes Federation (IDF) predicts that at least one in 10 adults will have diabetes by 2030 .
While that's bad for society, it's good for NVO stock's bottom line. Novo first created an insulin product back in the 1920's and is now the leading producer of the medicine. The firm has a 47% share when looking at the total insulin market worldwide.
Perhaps equally as impressive, NVO commands a 46% share when looking at modern and next-generation insulin.
5 Stocks to Buy for December
That dominating position in a medicine that is required for diabetes sufferers to live has resulted in serious cash flows and profits over it history. And with rates of diabetes continuing to grow across the globe and not just in Europe, investors can sit back and collect the firm's high 2.6% dividend.
European Stocks to Buy for Big Dividends: Eni (E)
Dividend Yield:
When we think of the major oil companies, names like Exxon Mobil Corporation (NYSE: XOM ) dominate the conversation. However, Europe is full of some big-time energy stocks that pump out major dividends as well. One of the best happens to be Italy's Eni SpA (ADR) (NYSE: E ).
Yes, Italy is in the middle of the death throes of its Quitaly movement to leave the E.U., but in the real end, that shouldn't affect E very much. Eni is nearly as big as XOM and features a stable of assets -up-, mid- and downstream - across the globe. It's one of the main oil producers in the low-cost Middle East and traditional elephant fields have dominated its cash flows and production profiles for years.
But Eni still has plenty of growth in its tank.
The firm continues to find insane amounts of natural gas in offshore Mozambique. These fields have the ability to provide plenty of long-term revenues for the energy major as the world transitions to a natural gas future. It's basically becoming the Exxon of Europe in its shift to natural gas.
More importantly, management has been cautious in spending extra CAPEX on other projects to get these fields pumping ASAP.
In the end, Eni is a great all-around energy stock. But because of the Quitaly B.S., shares can now be had for a monster dividend yield. This is one European dividend stock value that needs to be in your portfolio.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.
The post 3 European Stocks to Buy for Big-Time Dividends appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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European Stocks to Buy for Big Dividends: Diageo (DEO) Dividend Yield: 3% What do Johnnie Walker, Smirnoff, Captain Morgan and Guinness all have in common? They also happen to be owned and produced by Diageo plc(ADR) (NYSE: DEO ). All in all, DEO's brand range includes 14 of the top 100 premium distilled spirits brands and seven of the top-20 premium spirits brands worldwide .
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European Stocks to Buy for Big Dividends: Diageo (DEO) Dividend Yield: 3% What do Johnnie Walker, Smirnoff, Captain Morgan and Guinness all have in common? They also happen to be owned and produced by Diageo plc(ADR) (NYSE: DEO ). All in all, DEO's brand range includes 14 of the top 100 premium distilled spirits brands and seven of the top-20 premium spirits brands worldwide .
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European Stocks to Buy for Big Dividends: Diageo (DEO) Dividend Yield: 3% What do Johnnie Walker, Smirnoff, Captain Morgan and Guinness all have in common? They also happen to be owned and produced by Diageo plc(ADR) (NYSE: DEO ). All in all, DEO's brand range includes 14 of the top 100 premium distilled spirits brands and seven of the top-20 premium spirits brands worldwide .
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European Stocks to Buy for Big Dividends: Diageo (DEO) Dividend Yield: 3% What do Johnnie Walker, Smirnoff, Captain Morgan and Guinness all have in common? They also happen to be owned and produced by Diageo plc(ADR) (NYSE: DEO ). All in all, DEO's brand range includes 14 of the top 100 premium distilled spirits brands and seven of the top-20 premium spirits brands worldwide .
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727985.0
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2016-12-01 00:00:00 UTC
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Diageo (DEO): Moving Average Crossover Alert
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DEO
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https://www.nasdaq.com/articles/diageo-deo%3A-moving-average-crossover-alert-2016-12-01
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Diageo plcDEO 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 4.3% 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 have moved higher. Add this in to 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 .
Confidential from Zacks
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DIAGEO PLC-ADR (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 plcDEO 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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And with the recent moving average crossover, investors have to think that more unfavorable trading is ahead for DEO stock. Click to get this free report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plcDEO could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front.
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Diageo plcDEO 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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Diageo plcDEO 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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13f8a2c2-8f77-42ac-8274-092f02e55f61
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727986.0
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2016-11-11 00:00:00 UTC
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Pre-Market Most Active for Nov 11, 2016 : JCP, PTCT, BAC, NVDA, FCX, QQQ, COMM, PBR, XIV, BHP, DEO, TVIX
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DEO
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https://www.nasdaq.com/articles/pre-market-most-active-nov-11-2016-jcp-ptct-bac-nvda-fcx-qqq-comm-pbr-xiv-bhp-deo-tvix
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is down -21.18 to 4,725.85. The total Pre-Market volume is currently 13,386,594 shares traded.
The following are the most active stocks for the pre-market session :
J.C. Penney Company, Inc. Holding Company ( JCP ) is -0.53 at $8.28, with 5,129,052 shares traded. GlobeNewswire Reports: JCPENNEY REPORTS A $39 MILLION INCREASE IN OPERATING INCOME FOR THE THIRD QUARTER 2016; A 140 BASIS POINT RATE IMPROVEMENT OVER THE PRIOR YEAR
PTC Therapeutics, Inc. ( PTCT ) is +4.84 at $10.84, with 1,296,824 shares traded. PTCT's current last sale is 90.33% of the target price of $12.
Bank of America Corporation ( BAC ) is -0.18 at $18.58, with 1,006,239 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2016. The consensus EPS forecast is $0.38. , following a 52-week high recorded in prior regular session.
NVIDIA Corporation ( NVDA ) is +10.63 at $78.40, with 866,620 shares traded. As reported in the last short interest update the days to cover for NVDA is 9.100452; this calculation is based on the average trading volume of the stock.
Freeport-McMoran, Inc. ( FCX ) is +0.58 at $14.38, with 608,433 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2017. The consensus EPS forecast is $0.34. FCX's current last sale is 130.73% of the target price of $11.
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.75 at $115.00, with 557,054 shares traded. This represents a 21.26% increase from its 52 Week Low.
CommScope Holding Company, Inc. ( COMM ) is -0.96 at $33.15, with 486,043 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2017. The consensus EPS forecast is $0.68. , following a 52-week high recorded in prior regular session.
Petroleo Brasileiro S.A.- Petrobras ( PBR ) is -0.24 at $10.10, with 459,944 shares traded. PBR's current last sale is 101% of the target price of $10.
VelocityShares Daily Inverse VIX Short Term ETN ( XIV ) is -0.57 at $37.55, with 390,171 shares traded. This represents a 144.47% increase from its 52 Week Low.
BHP Billiton Limited ( BHP ) is +0.02 at $38.15, with 365,278 shares traded. BHP's current last sale is 92.02% of the target price of $41.46.
Diageo plc ( DEO ) is -0.89 at $100.80, with 313,614 shares traded. As reported by Zacks, the current mean recommendation for DEO is in the "buy range".
VelocityShares Daily 2x VIX Short Term ETN ( TVIX ) is +0.48 at $15.82, with 259,382 shares traded. This represents a 16.07% increase from its 52 Week Low.
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 -0.89 at $100.80, with 313,614 shares traded. As reported by Zacks, the current mean recommendation for DEO is in the "buy range". As reported in the last short interest update the days to cover for NVDA is 9.100452; this calculation is based on the average trading volume of the stock.
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Diageo plc ( DEO ) is -0.89 at $100.80, with 313,614 shares traded. As reported by Zacks, the current mean recommendation for DEO is in the "buy range". Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2016.
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Diageo plc ( DEO ) is -0.89 at $100.80, with 313,614 shares traded. As reported by Zacks, the current mean recommendation for DEO is in the "buy range". The following are the most active stocks for the pre-market session : J.C. Penney Company, Inc. Holding Company ( JCP ) is -0.53 at $8.28, with 5,129,052 shares traded.
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Diageo plc ( DEO ) is -0.89 at $100.80, with 313,614 shares traded. As reported by Zacks, the current mean recommendation for DEO is in the "buy range". The following are the most active stocks for the pre-market session : J.C. Penney Company, Inc. Holding Company ( JCP ) is -0.53 at $8.28, with 5,129,052 shares traded.
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fe43d385-dbf3-414d-bb66-6b820df28295
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727987.0
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2016-10-23 00:00:00 UTC
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Sure, Budweiser Is the Biggest Brand in Alcohol, but Can You Guess Who Is No. 2?
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DEO
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https://www.nasdaq.com/articles/sure-budweiser-biggest-brand-alcohol-can-you-guess-who-no-2-2016-10-23
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nan
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nan
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Now that Anheuser-Busch InBev (NYSE: BUD) has completed its acquisition of SABMiller, the $104 billion deal has created a beer-brewing behemoth that straddles just about every continent and has operations, sales, or employees in just about every country.
The maker of Budweiser, Bud Light, and Corona beer is truly a global powerhouse that accounts for more than a quarter of the world's beer production, 45% of the industry's profits, and owns the first and/or second top-selling beers in more than a handful of markets, including the U.S., where it will continue to have a 45% share of the market.
The merged company is also the fifth largest consumer products company in the world, behind such giants as Procter & Gamble and PepsiCo , but ahead of Coca-Cola and Mondelez International . Together, A-B InBev and Miller will have $55 billion in annual revenues and around $21 billion in earnings before interest, taxes, depreciation, and amortization, more than any other consumer products company.
A beer by any other name
According to brand consultancy company Interbrand, Budweiser by itself was already the biggest global alcohol brand valued at $15.1 billion, up 8% from last year's ranking and one position higher.
Interbrand puts a lot into determining a brand's value. The ISO-certified methodology looks at how a business delivers on customer expectations to what it does to drive economic value, with the rankings based on a brand's cumulative value in three key areas:
The financial performance of the branded products and services.
The role the brand plays in influencing customer choice.
The strength the brand has to command a premium price or secure earnings for the company.
From that assessment, it organizes the list of top 100 companies. In the 2016 survey, the Budweiser brand came in 30th; last year it was 31st. That it was the biggest adult beverage brand probably surprises no one, but like me, you might have wondered which alcohol brands followed after.
Can you guess who's on top?
I examined Interbrand's list of the best global companies and sifted out only those that made adult beverages. On more than one occasion, I raised an eyebrow at which company was there and which wasn't, but the following list identifies the most valuable brands, their Interbrand rank, and their brand value:
Budweiser (30) $15.099 billion
Heineken (87) $5.123 billion
Corona (93) $4.059 billion
Johnny Walker (95) $4.317 billion
Smirnoff (96) $4.252 billion
Moet & Chandon (97) $4.118 billion
One trend that stands out is the even split between beer and spirits, indicating there is no real difference between highbrow and lowbrow tastes, but also notably the absence of brands such as any of Miller's beers or Brown-Forman 's(NYSE: BF-A) (NYSE: BF-B) Jack Daniel's.
Those two would seem particularly notable, one because A-B InBev just acquired Miller on the strength of its global brand portfolio, particularly its leading position in countries such as Africa and Latin America (albeit for brands not under the Miller label), but also because the Tennessee whiskey maker's success has largely been tied to that family of spirits.
Aside from Anheuser-Busch having two brands on the list (Bud and Corona), the only other company to earn that distinction is distiller Diageo (NYSE: DEO) , which owns the Johnny Walker brand of Scotch whisky and Smirnoff vodka.
Image source: Felix Triller via Flickr.
Why Heineken is a top-shelf brewer
As Heineken (NASDAQOTH: HEINY) calls itself, it is "is the world's most international brewer," led principally by its premium eponymous brand that is sold in more than 170 countries. Heineken represents just 15% of the brewer's total volume, but it accounts for well over 30% of its profits, and it still sees another 10 to 20 years of growth ahead of it.
When investors look to invest in alcoholic beverage companies, once having made the choice to put their money into beer, it's often a case of looking at the biggest, like Anheuser-Busch InBev, or in the niches, like craft beer. However, imports are certainly worth taking note of as the Brewers Association, which represents the craft beer industry, notes, import beer volumes grew 6% in 2015, accounting for a 22% share of the market -- almost double craft beer's share. Now, as sales of craft beer eases up, imports can shine through.
As Heineken's Most Interesting Man in the World would say (yes, it also owns Dos Equis beer), stay thirsty, my friends.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early, in-the-know investors! To be one of them, just click here .
Rich Duprey has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Anheuser-Busch InBev NV and PepsiCo. The Motley Fool recommends Coca-Cola, Diageo, and Procter and Gamble. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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Aside from Anheuser-Busch having two brands on the list (Bud and Corona), the only other company to earn that distinction is distiller Diageo (NYSE: DEO) , which owns the Johnny Walker brand of Scotch whisky and Smirnoff vodka. Now that Anheuser-Busch InBev (NYSE: BUD) has completed its acquisition of SABMiller, the $104 billion deal has created a beer-brewing behemoth that straddles just about every continent and has operations, sales, or employees in just about every country. Those two would seem particularly notable, one because A-B InBev just acquired Miller on the strength of its global brand portfolio, particularly its leading position in countries such as Africa and Latin America (albeit for brands not under the Miller label), but also because the Tennessee whiskey maker's success has largely been tied to that family of spirits.
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Aside from Anheuser-Busch having two brands on the list (Bud and Corona), the only other company to earn that distinction is distiller Diageo (NYSE: DEO) , which owns the Johnny Walker brand of Scotch whisky and Smirnoff vodka. On more than one occasion, I raised an eyebrow at which company was there and which wasn't, but the following list identifies the most valuable brands, their Interbrand rank, and their brand value: Budweiser (30) $15.099 billion Heineken (87) $5.123 billion Corona (93) $4.059 billion Johnny Walker (95) $4.317 billion Smirnoff (96) $4.252 billion Moet & Chandon (97) $4.118 billion One trend that stands out is the even split between beer and spirits, indicating there is no real difference between highbrow and lowbrow tastes, but also notably the absence of brands such as any of Miller's beers or Brown-Forman 's(NYSE: BF-A) (NYSE: BF-B) Jack Daniel's. However, imports are certainly worth taking note of as the Brewers Association, which represents the craft beer industry, notes, import beer volumes grew 6% in 2015, accounting for a 22% share of the market -- almost double craft beer's share.
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Aside from Anheuser-Busch having two brands on the list (Bud and Corona), the only other company to earn that distinction is distiller Diageo (NYSE: DEO) , which owns the Johnny Walker brand of Scotch whisky and Smirnoff vodka. A beer by any other name According to brand consultancy company Interbrand, Budweiser by itself was already the biggest global alcohol brand valued at $15.1 billion, up 8% from last year's ranking and one position higher. On more than one occasion, I raised an eyebrow at which company was there and which wasn't, but the following list identifies the most valuable brands, their Interbrand rank, and their brand value: Budweiser (30) $15.099 billion Heineken (87) $5.123 billion Corona (93) $4.059 billion Johnny Walker (95) $4.317 billion Smirnoff (96) $4.252 billion Moet & Chandon (97) $4.118 billion One trend that stands out is the even split between beer and spirits, indicating there is no real difference between highbrow and lowbrow tastes, but also notably the absence of brands such as any of Miller's beers or Brown-Forman 's(NYSE: BF-A) (NYSE: BF-B) Jack Daniel's.
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Aside from Anheuser-Busch having two brands on the list (Bud and Corona), the only other company to earn that distinction is distiller Diageo (NYSE: DEO) , which owns the Johnny Walker brand of Scotch whisky and Smirnoff vodka. The maker of Budweiser, Bud Light, and Corona beer is truly a global powerhouse that accounts for more than a quarter of the world's beer production, 45% of the industry's profits, and owns the first and/or second top-selling beers in more than a handful of markets, including the U.S., where it will continue to have a 45% share of the market. A beer by any other name According to brand consultancy company Interbrand, Budweiser by itself was already the biggest global alcohol brand valued at $15.1 billion, up 8% from last year's ranking and one position higher.
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1e7c3ddc-066b-402f-85c4-abdca70cd9f6
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727988.0
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2016-10-10 00:00:00 UTC
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Diageo Continues to Boost Portfolio; Adds Vanilla Whiskey
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DEO
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https://www.nasdaq.com/articles/diageo-continues-to-boost-portfolio-adds-vanilla-whiskey-2016-10-10
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nan
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nan
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Leading brewer and distiller, Diageo plcDEO consistently undertakes innovations in order to boost top-line growth. In keeping with these initiatives, the company recently introduced Crown Royal Vanilla Flavored Whisky, a collection of hand selected Crown Royal whiskies flavored with Madagascar Bourbon Vanilla.
The new whiskey combines the popular flavor of vanilla with the usual distinctive smoothness of Crown Royal. It can be enjoyed throughout the year, either on the rocks or as the key ingredient in classic cocktails like Vanilla Old Fashioned or Vanilla Hot Toddy.
Crown Royal Vanilla Whiskey (70 proof, 35% ABV) comes in a signature box and felt bag. It is priced at $24.99 for a 750 ml bottle and is available nationwide.
DIAGEO PLC-ADR Price
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Leading brewer and distiller, Diageo plcDEO consistently undertakes innovations in order to boost top-line growth. The new whiskey combines the popular flavor of vanilla with the usual distinctive smoothness of Crown Royal. Crown Royal Vanilla Whiskey (70 proof, 35% ABV) comes in a signature box and felt bag.
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Leading brewer and distiller, Diageo plcDEO consistently undertakes innovations in order to boost top-line growth. In keeping with these initiatives, the company recently introduced Crown Royal Vanilla Flavored Whisky, a collection of hand selected Crown Royal whiskies flavored with Madagascar Bourbon Vanilla. The new whiskey combines the popular flavor of vanilla with the usual distinctive smoothness of Crown Royal.
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Leading brewer and distiller, Diageo plcDEO consistently undertakes innovations in order to boost top-line growth. In keeping with these initiatives, the company recently introduced Crown Royal Vanilla Flavored Whisky, a collection of hand selected Crown Royal whiskies flavored with Madagascar Bourbon Vanilla. DIAGEO PLC-ADR Price
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Leading brewer and distiller, Diageo plcDEO consistently undertakes innovations in order to boost top-line growth. The new whiskey combines the popular flavor of vanilla with the usual distinctive smoothness of Crown Royal. It can be enjoyed throughout the year, either on the rocks or as the key ingredient in classic cocktails like Vanilla Old Fashioned or Vanilla Hot Toddy.
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916d7571-c57c-4ec9-8690-72b43dc50108
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727989.0
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2016-10-05 00:00:00 UTC
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New Strong Sell Stocks for October 5th
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DEO
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-october-5th-2016-10-05
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nan
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nan
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
• Vulcan Materials CompanyVMC is a leading producer of construction aggregates, a major producer of asphalt mix, cement and concrete. The Zacks Consensus Estimate for its current year earnings has been revised 8.3% downward over the last 30 days.
• Pentair plcPNR delivers industry-leading products, services and solutions for its customers' diverse needs in water and other fluids, thermal management and equipment protection. The Zacks Consensus Estimate for its current year earnings has declined 2% over the last 30 days.
• Ligand Pharmaceuticals IncorporatedLGND discovers, develops and markets new drugs that address critical unmet medical needs of patients. It has seen the Zacks Consensus Estimate for its current year earnings being revised 5.3% downward over the last 30 days.
• Diageo plcDEO is a multinational branded food and drinks company. The Zacks Consensus Estimate revision for its current year earnings was a negative of 0.8% over the last 30 days.
• Energy Transfer Partners, L.P.ETP is a publicly traded partnership owning and operating a diversified portfolio of energy assets. The Zacks Consensus Estimate for its current year earnings has moved 6.7% lower over the last 30 days.
View the entire Zacks Rank #5 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
ENERGY TRAN PTR (ETP): Free Stock Analysis Report
DIAGEO PLC-ADR (DEO): Free Stock Analysis Report
VULCAN MATLS CO (VMC): Free Stock Analysis Report
LIGAND PHARMA-B (LGND): Free Stock Analysis Report
PENTAIR PLC (PNR): 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 ENERGY TRAN PTR (ETP): Free Stock Analysis Report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report VULCAN MATLS CO (VMC): Free Stock Analysis Report LIGAND PHARMA-B (LGND): Free Stock Analysis Report PENTAIR PLC (PNR): Free Stock Analysis Report To read this article on Zacks.com click here. • Pentair plcPNR delivers industry-leading products, services and solutions for its customers' diverse needs in water and other fluids, thermal management and equipment protection.
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Click to get this free report ENERGY TRAN PTR (ETP): Free Stock Analysis Report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report VULCAN MATLS CO (VMC): Free Stock Analysis Report LIGAND PHARMA-B (LGND): Free Stock Analysis Report PENTAIR PLC (PNR): Free Stock Analysis Report To read this article on Zacks.com click here. • Diageo plcDEO is a multinational branded food and drinks company. The Zacks Consensus Estimate revision for its current year earnings was a negative of 0.8% over the last 30 days.
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Click to get this free report ENERGY TRAN PTR (ETP): Free Stock Analysis Report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report VULCAN MATLS CO (VMC): Free Stock Analysis Report LIGAND PHARMA-B (LGND): Free Stock Analysis Report PENTAIR PLC (PNR): Free Stock Analysis Report To read this article on Zacks.com click here. • Diageo plcDEO is a multinational branded food and drinks company. The Zacks Consensus Estimate for its current year earnings has been revised 8.3% downward over the last 30 days.
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• Diageo plcDEO is a multinational branded food and drinks company. Click to get this free report ENERGY TRAN PTR (ETP): Free Stock Analysis Report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report VULCAN MATLS CO (VMC): Free Stock Analysis Report LIGAND PHARMA-B (LGND): Free Stock Analysis Report PENTAIR PLC (PNR): Free Stock Analysis Report To read this article on Zacks.com click here. View the entire Zacks Rank #5 List .
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4e26dedd-ee85-4e64-8886-3fc774559199
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727990.0
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2016-09-20 00:00:00 UTC
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3 Stocks With Better Dividends Than Wynn Resorts, Limited
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DEO
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https://www.nasdaq.com/articles/3-stocks-better-dividends-wynn-resorts-limited-2016-09-20
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nan
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nan
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Diageo
Staying within the "sin stock" category, Diageo (NYSE: DEO) has both a stable business and strong dividend with a 3.5% yield. Brands like Johnnie Walker, Smirnoff, Captain Morgan, and Guinness are incredibly stable because of both consistent demand and distribution power.
Consolidation in beer and spirits has left a few power players in the industry, which makes it more difficult for smaller brands and distributors to break into the business. As one of the few major players in the business, there's a lot less risk for disruption.
Financial returns from this stability can be seen below. Net income has been rising steadily over the past decade and the dividend payout ratio has been at a reasonable two-thirds of income or less.
DEO Payout Ratio (TTM) data by YCharts .
Whether economic growth or a recession is ahead, beer and spirits sales won't change dramatically., and that makes Diageo a better dividend today than Wynn Resorts.
Anheuser-Busch InBev
Diageo focuses on the spirits side of adult beverages, but Anheuser-Busch InBev (NYSE: BUD) is one of the dominant players on the beer side. If its merger with SABMiller is approved, the company will control 46% of U.S. beer sales and 28% of beer sales globally. That's an incredible market position and would give the company distribution power to nearly every continent in the world.
The power of distribution can't be overstated in the beer industry. Walk into any bar or liquor store in the U.S. and you're likely to see signs for an AB Inbev beer and a sign in the window or on the wall. At bars, major beer companies use their power to keep smaller beer distributors out. They can threaten to pull product if another company gets too many taps or preferential placement. Distribution is a rough business and being in a power position is a strong position to be in.
Dividend payments from AB Inbev have been on the rise as well. You can see below that over the past decade the company's dividend has risen 235% while Wynn's has been in decline. Beer is definitely more stable than gaming right now.
BUD Dividends Paid (TTM) data by YCharts .
Altria
Another company in the "sin stock" category that investors may want to consider is Altria (NYSE: MO) , the cigarette and cigar maker. Quietly, the company has been able to increase net income and dividends paid over the past five years, as you can see below.
MO Net Income (TTM) data by YCharts .
Cigarettes are an incredibly stable business -- because they're addictive -- and there are relatively small numbers of competitors. But it's also a business some investors choose to avoid for that reason.
What Altria has done in recent years is diversify beyond cigarettes to smokeless products, beer, and wine. That keeps the company in its core market of vice products, but it has provided lower exposure to the decline of smoking and given growth, particularly as smokeless tobacco products have grown. Even if smoking isn't what it once was, earnings growth guidance of 7.5% to 9.5% for the year is solid and shows fruit from the business's diversification.
Depending on what you think about Altria's core business, this may or may not be an investment you will consider. But there's no doubt that it's a great dividend for investors looking for stability in cash flows.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
Travis Hoium owns shares of Wynn Resorts. The Motley Fool recommends Anheuser-Busch InBev NV and Diageo. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 Staying within the "sin stock" category, Diageo (NYSE: DEO) has both a stable business and strong dividend with a 3.5% yield. DEO Payout Ratio (TTM) data by YCharts . Brands like Johnnie Walker, Smirnoff, Captain Morgan, and Guinness are incredibly stable because of both consistent demand and distribution power.
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Diageo Staying within the "sin stock" category, Diageo (NYSE: DEO) has both a stable business and strong dividend with a 3.5% yield. DEO Payout Ratio (TTM) data by YCharts . At bars, major beer companies use their power to keep smaller beer distributors out.
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Diageo Staying within the "sin stock" category, Diageo (NYSE: DEO) has both a stable business and strong dividend with a 3.5% yield. DEO Payout Ratio (TTM) data by YCharts . Whether economic growth or a recession is ahead, beer and spirits sales won't change dramatically., and that makes Diageo a better dividend today than Wynn Resorts.
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Diageo Staying within the "sin stock" category, Diageo (NYSE: DEO) has both a stable business and strong dividend with a 3.5% yield. DEO Payout Ratio (TTM) data by YCharts . Whether economic growth or a recession is ahead, beer and spirits sales won't change dramatically., and that makes Diageo a better dividend today than Wynn Resorts.
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d12dd2e7-aa14-40ad-a4cc-983f186998e2
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727991.0
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2016-09-19 00:00:00 UTC
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Diageo Upgraded to Hold Owing to Spirits Category Growth
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DEO
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https://www.nasdaq.com/articles/diageo-upgraded-to-hold-owing-to-spirits-category-growth-2016-09-19
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nan
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nan
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Diageo plc.DEO was upgraded to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell) on Sep 16, 2016. Going by the Zacks model, stocks carrying a Zacks Rank #3 are likely to perform in line with the broader market in the quarters ahead.
The company has seen its stock price surge 9.03% over the past three months and nearly 3.33% on a year-to-date basis. The earnings for Diageo are expected to grow by 8.05% in the long term.
Why Upgraded to Hold?
Diageo, a global leader in spirits, has majority market share in nearly every spirit category in Europe and the U.S., its two largest markets.
DIAGEO PLC-ADR Price, Consensus and EPS Surprise
DIAGEO PLC-ADR Price, Consensus and EPS Surprise | DIAGEO PLC-ADR Quote
We note that the spirits and wine market is benefiting from favorable demographic trends. The baby-boomer generation is reaching its peak spirits and wine consuming age as they reach their 50s and 60s both in Europe and US. Younger generations are also consuming more spirits. Diageo is geared to capture the growing market of spirits and is innovating newer varieties of spirits to woo the growing consumer base. Further the company is penetrating fast into emerging markets with the help of acquisitions to tap the growing market in these areas.
Diageo is putting greater thrust on high-margin products. With regards to its decision, the company ended a 16-year old distribution deal with Jose Cuervo, a non-premium tequila brand in Dec 2013, and shifted towards more premium brands in America. The shift to high-margin brand is expected to be beneficial for the company.
Though the above mentioned positive aspects boost our confidence in the stock, certain inherent issues raise our concerns for the same. Declining volumes has been a drag on top line for the past few quarters. Moreover, increasing restrictions on alcohol consumption by governments across the world have dented revenue growth.
Over the last 60 days, Zacks Consensus Estimate for the stock has been revised downwards for 2017 but raised up for 2018.
Stocks to Consider
Some better-ranked stocks within the broader consumer staples industry include Sanderson Farms Inc. SAFM , Omega Protein Corp. OME and The Kraft Heinz Company KHC . While Sanderson Farms and Omega Protein sport a Zacks Rank #1 (Strong Buy), Kraft Heinz carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Confidential from Zacks
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DIAGEO PLC-ADR (DEO): Free Stock Analysis Report
SANDERSON FARMS (SAFM): Free Stock Analysis Report
OMEGA PROTEIN (OME): Free Stock Analysis Report
KRAFT HEINZ CO (KHC): 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 was upgraded to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell) on Sep 16, 2016. Click to get this free report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report SANDERSON FARMS (SAFM): Free Stock Analysis Report OMEGA PROTEIN (OME): Free Stock Analysis Report KRAFT HEINZ CO (KHC): Free Stock Analysis Report To read this article on Zacks.com click here. Though the above mentioned positive aspects boost our confidence in the stock, certain inherent issues raise our concerns for the same.
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Click to get this free report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report SANDERSON FARMS (SAFM): Free Stock Analysis Report OMEGA PROTEIN (OME): Free Stock Analysis Report KRAFT HEINZ CO (KHC): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc.DEO was upgraded to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell) on Sep 16, 2016. DIAGEO PLC-ADR Price, Consensus and EPS Surprise DIAGEO PLC-ADR Price, Consensus and EPS Surprise | DIAGEO PLC-ADR Quote We note that the spirits and wine market is benefiting from favorable demographic trends.
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Click to get this free report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report SANDERSON FARMS (SAFM): Free Stock Analysis Report OMEGA PROTEIN (OME): Free Stock Analysis Report KRAFT HEINZ CO (KHC): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc.DEO was upgraded to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell) on Sep 16, 2016. Going by the Zacks model, stocks carrying a Zacks Rank #3 are likely to perform in line with the broader market in the quarters ahead.
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Diageo plc.DEO was upgraded to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell) on Sep 16, 2016. Click to get this free report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report SANDERSON FARMS (SAFM): Free Stock Analysis Report OMEGA PROTEIN (OME): Free Stock Analysis Report KRAFT HEINZ CO (KHC): Free Stock Analysis Report To read this article on Zacks.com click here. Going by the Zacks model, stocks carrying a Zacks Rank #3 are likely to perform in line with the broader market in the quarters ahead.
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2016-09-16 00:00:00 UTC
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8 International Stocks Priced to Beat the U.S.
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https://www.nasdaq.com/articles/8-international-stocks-priced-to-beat-the-u.s.-2016-09-16
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InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
Ever since the 2008 meltdown, it's been "America the Beautiful" when it comes to investing. American stocks have consistently beaten their international peers on a level that would make our national basketball team proud.
Source: Luke Price via Flickr (Modified)
Since the bottom in early 2009, the S&P 500 Index is up about 220%. The MSCI All Country World Ex-U.S. Index - which covers pretty much the entire rest of the world outside U.S. borders - is up less than 80% over the same period.
But before you drape yourself in Old Glory and chant "U-S-A … U-S-A …" keep in mind that American outperformance has historically been cyclical. There are long stretches when American stocks dominate the competition like the Southeastern Conference in college football. But there are also plenty of times when U.S. stocks get clobbered as hard as Rocky Balboa by the Russian in the first 14 rounds of Rocky IV .
Today, American stocks are expensive, trading at a cyclically adjusted price earnings ratio of 27, which implies annual returns over the next decade of about 1% . That makes the U.S. the most expensive major world market by a wide margin. By comparison, the U.K., France and Canada trade at CAPEs of 13, 15 and 18, respectively, implying annual returns over the coming decade of 7.2%, 6.7% and 5.1%.
These forecasts - like all market forecasts - should be taken with a grain of salt. The numbers do, however, suggest American stocks might fare more like the national soccer team than the national basketball team relative to the rest of the world in the coming years.
The Top 10 S&P 500 Dividend Stocks to Buy Now
So with no more ado, here are 10 international stocks poised outperform 'Murica.
International Stocks to Buy: BP (BP)
Country: United Kingdom
Forward P/E Ratio: 12
I'll start with oil supermajor BP Plc (ADR) (NYSE: BP ). BP's relationship with the U.S. of A is, shall we say, "complicated" following the Deepwater Horizon oil spill. The spill caused billions of dollars of damage to the Gulf of Mexico coast and made BP into something of a pariah among Americans.
But in the six years that have passed, BP has slowly waded through the legal and regulatory mess and has emerged as a viable, if not smaller, energy major. The lingering effects of the oil spill has caused BP stock to trade at a discount to its supermajor peers, but as time passes that discount should continue to narrow.
Today, BP trades at prices it first saw in the mid-1990s. It trades for 12 times next year's expected earnings and at a dividend yield of 7%. As a point of comparison, U.S. supermajor Exxon Mobil Corporation (NYSE: XOM ) trades for nearly 20 times expected earnings and yields 3.5%.
Starting at these prices, I would expect BP to crush its American competition.
International Stocks to Buy: Toyota (TM)
Country: Japan
Forward P/E Ratio: 10
The Japanese yen has gained nearly 20% over the past year, and it's wreaking havoc on Japanese exporters. The exchange rate that the Japanese government estimates is the breakeven level for exporters is 103.2 yen to the dollar . Well, as I'm writing this, the yen trades at 102.2. So at current exchange rates, Japan's exporters lose money.
That's bad for an automaker like Toyota Motor Corp (ADR) (NYSE: TM ) that depends heavily on sales in markets outside of Japan.
But here's the thing. While is yen is expensive today, I don't expect it to stay that way for long. Japan's economy is stalling out again. Over the past four quarters, Japanese GDP grew at an average rate of just 0.2%. So Japan's government will be putting renewed pressure on the Bank of Japan to push the currency lower. Furthermore, as the Federal Reserve moves closer to raising rates, that should push the U.S. dollar higher.
7 Stock Splits Investors Are Dying to See
So, Toyota should be very close to getting a much needed currency tailwind from a sagging yen. And given that Toyota trades for a modest 10 times next year's expected earnings and yields over 3%, I think it's likely that Toyota outpaces the U.S. market by a healthy margin.
International Stocks to Buy: Daimler (DDAIF)
Country: Germany
Forward P/E Ratio: 7
Along the same lines, I like Daimler AG's (OTCMKTS: DDAIF ) prospects going forward. I'm not sure what the future holds for the European Union. Is the Brexit vote a prelude of things to come? Will other countries follow the U.K. out the door? Will the Italian banking crisis overwhelm the European Central Bank? Will the migrant crisis lead to widespread unrest?
Frankly, I have no idea. But I expect that the euro will come under pressure for several years to come. At a time when the Fed is itching to raise rates, ECB chief Mario Draghi is talking about new and creative ways to stimulate, including pushing interest rates deeper into negative territory.
A cheap euro is a major advantage to a global exporter like Daimler, maker of the iconic Mercedes-Benz. About two-thirds of Daimler's annual revenues come from outside Europe. So the lower the euro slides, the better Daimler's profit potential.
At current prices, Daimler trades for eight times earnings and sports a dividend yield of 5.3%.
International Stocks to Buy: Diageo (DEO)
Country: United Kingdom
Forward P/E Ratio: 18
When it comes to global spirits leader Diageo plc (ADR) (NYSE: DEO ), you might want to be careful in following Peter Lynch's advice to invest in what you know. Doing too much primary research into Diageo's liquor brands might unlock a predisposed mental illness!
Diageo is a global leader in scotch whisky, vodka and other spirits. Its brands include Johnnie Walker, Smirnoff, Captain Morgan and many others. Diageo is based in the U.K., which makes life somewhat complicated these days. With the U.K.'s status in Europe still being resolved, no one knows what happens next. That uncertainty has pushed the British pound to multi-decade lows … which isn't such a bad thing for Diageo. Many of its costs are denominated in cheap British pounds while most of its revenues come from overseas.
No American spirits maker matches Diageo in terms of size and scope. To put some numbers behind that, Diageo had global revenues of 10.8 billion euros last year, which equates to about $14.3 billion. The largest independent American spirits company - Jack Daniel's maker Brown-Forman Corporation (NYSE: BF.B ) did $4.1 billion in sales last year.
10 Stocks to Take Profits On NOW
Considering Diageo's larger global presence and its favorable currency tailwinds, I see it drinking its competition under the table.
International Stocks to Buy: Telefonica (TEF)
Country: Spain
Forward P/E Ratio: 12
It's hard to say with a straight face that a Spanish company is primed to outperform. After all, Spain has been mired in on again/off again crisis for the better part of a decade now. Spain's housing bubble and bust was larger than that of the U.S., so Spain got whacked even harder than we did in 2008.
But then, in 2010, when America had started to get its legs back, Spain got sucked down with the European sovereign debt crisis. Adding insult to injury, the restive Catalonia is looking to secede. Yet, lost in all of these bad macro headlines are Spain's firesale prices of some of the world's finest multinationals.
One in particular is Telefonica S.A. (ADR) (NYSE: TEF ), a global leader in mobile telephony, internet and pay TV. Telefonica's biggest long-term strength - its strong presence in emerging markets like Brazil - has been its biggest short-term weakness in recent years. But emerging markets appear to be turning a corner, and as their fortunes improve, so will Telefonica's bottom line.
Today, Telefonica yields a very impressive 8.7% in dividends, meaning you get paid very handsomely to wait.
International Stocks to Buy: Banco Santander (SAN)
Country: Spain
Forward P/E Ratio: 8.5
Along the same lines, we have battered Spanish bank Banco Santander, S.A. (ADR) (NYSE: SAN ). Santander has the unfortunate luck of being a bank … in Europe … in a periphery country … with extensive operations in Brazil. So you can imagine that the headline risk in Banco Santander is about as bad as you can get.
But there is a price at which all bad news is already priced in, and I think Banco Santander is essentially there. Today, Banco Santander trades for about $4.50 per share, which puts it roughly at 1996 prices. Before the 2008 crisis hit, the stock traded hands at nearly $22 per share. So Santander is still down by around 80%.
Santander has been repairing its balance sheet for years, and improving prospects in its core markets outside Europe, such as Brazil, and ironic considering the tone of this article, the United States. I expect financial stocks in general to do well in the coming year, and I expect that Santander will do a lot better than most considering its cheap starting point.
10 Growth Stocks That Will Outrun Google
As an added sweetener, Banco Santander sports a respectable 5% dividend yield, so we're getting paid handsomely even if the stock moves sideways for a while.
International Stocks to Buy: Danone (DANOY)
Country: France
Forward P/E Ratio: 17.5
The French take their food seriously and rightly so. It's arguably the best in the world, and food tends to permeate other areas of French thought. French General and President Charles de Gaulle famously asked how he could be expected to govern a country with two hundred and forty-six varieties of cheese.
So as you can imagine, French food conglomerate Danone SA (ADR) (OTCMKTS: DANOY ) is a worthy adversary on the world stage. Danone makes yogurt and other dairy products and also has a successful line of infant nutrition brands. DANOY also owns iconic Evian bottled water brand, among others.
Danone isn't quite as cheap as some of the other names on this list. It trades hands at 22 times earnings and yields a modest 2.5%. But its American competitor Mead Johnson Nutrition CO (NYSE: MJN ) is even more expensive, trading at 29 times earnings and yielding just 2.1%.
Yogurt is more popular than ever, and Danone is the global leader. I'd trust the French on this one.
International Stocks to Buy: Airbus Group (EADSY)
Country: Netherlands
Forward P/E Ratio: 3
And finally, I'll leave you with one final European powerhouse, aerospace and defense leader Airbus Group (OTCMKTS: EADSY ). Aerospace is a tough business to be in. It's both highly cyclical and subject to the whims of governments … most of which are pretty broke these days and looking to cut back. But Airbus is a survivor and one of the choice few companies in the world that can compete with Boeing Co (NYSE: BA ).
Today, Airbus trades for a very modest 13 times earnings. Boeing is a fair bit more expensive, trading at 23 times earnings. That alone should get your attention. But more interesting to me are the prospects for the two companies going forward. As an American company, Boeing has to deal with strong dollar headwinds for the foreseeable future, whereas Airbus should benefit from a cheapening euro.
5 Simple Mistakes That Could Ruin Your Retirement
Furthermore, global investors have been underweight Europe for years, but I don't expect that to continue much longer. As investors rediscover the European market, global names like Airbus should be near the top of their list.
Charles Sizemore is the principal of Sizemore Capital Management . As of this writing, he was long BP, TEF, SAN stock.
The post 8 International Stocks Priced to Beat the U.S. 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 Stocks to Buy: Diageo (DEO) Country: United Kingdom Forward P/E Ratio: 18 When it comes to global spirits leader Diageo plc (ADR) (NYSE: DEO ), you might want to be careful in following Peter Lynch's advice to invest in what you know. International Stocks to Buy: Telefonica (TEF) Country: Spain Forward P/E Ratio: 12 It's hard to say with a straight face that a Spanish company is primed to outperform. Santander has been repairing its balance sheet for years, and improving prospects in its core markets outside Europe, such as Brazil, and ironic considering the tone of this article, the United States.
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International Stocks to Buy: Diageo (DEO) Country: United Kingdom Forward P/E Ratio: 18 When it comes to global spirits leader Diageo plc (ADR) (NYSE: DEO ), you might want to be careful in following Peter Lynch's advice to invest in what you know. International Stocks to Buy: BP (BP) Country: United Kingdom Forward P/E Ratio: 12 I'll start with oil supermajor BP Plc (ADR) (NYSE: BP ). International Stocks to Buy: Banco Santander (SAN) Country: Spain Forward P/E Ratio: 8.5 Along the same lines, we have battered Spanish bank Banco Santander, S.A. (ADR) (NYSE: SAN ).
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International Stocks to Buy: Diageo (DEO) Country: United Kingdom Forward P/E Ratio: 18 When it comes to global spirits leader Diageo plc (ADR) (NYSE: DEO ), you might want to be careful in following Peter Lynch's advice to invest in what you know. International Stocks to Buy: BP (BP) Country: United Kingdom Forward P/E Ratio: 12 I'll start with oil supermajor BP Plc (ADR) (NYSE: BP ). International Stocks to Buy: Banco Santander (SAN) Country: Spain Forward P/E Ratio: 8.5 Along the same lines, we have battered Spanish bank Banco Santander, S.A. (ADR) (NYSE: SAN ).
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International Stocks to Buy: Diageo (DEO) Country: United Kingdom Forward P/E Ratio: 18 When it comes to global spirits leader Diageo plc (ADR) (NYSE: DEO ), you might want to be careful in following Peter Lynch's advice to invest in what you know. Today, BP trades at prices it first saw in the mid-1990s. International Stocks to Buy: Toyota (TM) Country: Japan Forward P/E Ratio: 10 The Japanese yen has gained nearly 20% over the past year, and it's wreaking havoc on Japanese exporters.
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2016-08-31 00:00:00 UTC
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Pre-Market Most Active for Aug 31, 2016 : AUO, ININ, BAC, DEO, MT, RDS/B, RIGL, BHP, QQQ, AAPL, XIV, TVIX
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DEO
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https://www.nasdaq.com/articles/pre-market-most-active-aug-31-2016-auo-inin-bac-deo-mt-rdsb-rigl-bhp-qqq-aapl-xiv-tvix
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The NASDAQ 100 Pre-Market Indicator is up .4 to 4,776.39. The total Pre-Market volume is currently 4,687,396 shares traded.
The following are the most active stocks for the pre-market session :
AU Optronics Corp ( AUO ) is -0.0068 at $4.05, with 1,112,928 shares traded. AUO's current last sale is 81.06% of the target price of $5.
Interactive Intelligence Group, Inc. ( ININ ) is +3.16 at $59.83, with 769,410 shares traded. ININ's current last sale is 104.96% of the target price of $57.
Bank of America Corporation ( BAC ) is +0.115 at $16.23, with 543,689 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Diageo plc ( DEO ) is -0.3 at $112.66, with 354,750 shares traded. As reported by Zacks, the current mean recommendation for DEO is in the "buy range".
ArcelorMittal ( MT ) is -0.08 at $5.88, with 178,950 shares traded. As reported by Zacks, the current mean recommendation for MT is in the "buy range".
Royal Dutch Shell PLC (RDS/B) is -0.53 at $52.14, with 141,636 shares traded.
Rigel Pharmaceuticals, Inc. ( RIGL ) is -0.18 at $3.75, with 114,422 shares traded., following a 52-week high recorded in prior regular session.
BHP Billiton Limited ( BHP ) is -0.52 at $30.69, with 104,200 shares traded. BHP's current last sale is 85.3% of the target price of $35.98.
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.14 at $116.42, with 51,898 shares traded. This represents a 22.75% increase from its 52 Week Low.
Apple Inc. ( AAPL ) is +0.03 at $106.03, with 44,801 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Credit Suisse AG ( XIV ) is -0.1 at $37.48, with 36,248 shares traded. This represents a 144.01% increase from its 52 Week Low.
Credit Suisse AG ( TVIX ) is +0.1 at $21.66, with 28,750 shares traded. This represents a 2.7% increase from its 52 Week Low.
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 -0.3 at $112.66, with 354,750 shares traded. As reported by Zacks, the current mean recommendation for DEO is in the "buy range". The following are the most active stocks for the pre-market session : AU Optronics Corp ( AUO ) is -0.0068 at $4.05, with 1,112,928 shares traded.
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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. Diageo plc ( DEO ) is -0.3 at $112.66, with 354,750 shares traded. As reported by Zacks, the current mean recommendation for DEO is in the "buy range".
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Diageo plc ( DEO ) is -0.3 at $112.66, with 354,750 shares traded. As reported by Zacks, the current mean recommendation for DEO is in the "buy range". The total Pre-Market volume is currently 4,687,396 shares traded.
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Diageo plc ( DEO ) is -0.3 at $112.66, with 354,750 shares traded. As reported by Zacks, the current mean recommendation for DEO is in the "buy range". The NASDAQ 100 Pre-Market Indicator is up .4 to 4,776.39.
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2016-08-31 00:00:00 UTC
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What Resulted In A Turnaround In Diageo's North American Business?
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https://www.nasdaq.com/articles/what-resulted-turnaround-diageos-north-american-business-2016-08-31
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In its year ended June 2016 earnings, Diageo ( DEO ) reported organic sales growth of 2.8%, after two years of largely flat growth, heralding a "single mid-digit top line growth" in 2017. This performance was last achieved in 2013, after which the company has had to deal with changing consumer tastes and preferences in North America, the group's largest market, and a slowdown in emerging markets, which has been the focus of Diageo's investments. Better than expected turnaround of US Spirits, a recovery in Europe, which accounts for 24% of the company's operating profit, and 5% growth in India, Diageo's second biggest single market, helped to spur this growth. Going forward, the company should grow at mid-single digits over the next three years, with a percentage point improvement in operating margins.
See Our Complete Analysis For Diageo Here
North America is the largest premium drinks market in the world, and accounts for about one-third of Diageo's net sales and a half of its operating profit. It comprises US Spirits, Diageo Guinness USA (DGUSA), and Diageo Canada. During the first half of its FY 2016 (six months ended December 2015), the company reported a decline in the net sales and volumes for the North American region. This was primarily a result of a fall in US spirits, due to late launches in the half and the implementation of the replenishment model for innovations, which reduced the shipment level, when compared to the first half of FY 2015.
However, recovery was already seen in the second quarter (three months ended December 2015) of the company's performance in North America, with the quarterly growth rates improving from a negative 10.4% to a positive 4.7%
For the full financial year, North America delivered net sales growth of 3%, after a strong performance of a 10% increase in the second half of the year in US Spirits. This was driven by growth in North American whiskey, scotch, and tequila, which resulted in a positive mix. North American whiskey was the standout performer, accounting for one-half of the overall net sales growth, with net sales up 6%, due to share gains by Crown Royal and Bulleit. The company's 'The One Made For A King' campaign for Crown Royal Deluxe benefited the company, as it focused on the quality and heritage of the brand. In scotch, Johnnie Walker and Buchanan performed well, with a growth in net sales of 7% and 9%, respectively. The former was largely driven by its reserve variants, which were up 23%, while the latter improved as the 'A lo Grande' campaign enhanced the brand's connection with the Hispanic consumers. The company's tequila brand Don Julio increased its net sales by 34%, making it the fastest growing brand in the portfolio.
How Did Diageo Perform In Its FY 2016 In Terms Of Key Financial Indicators?
Diageo Returns To Growth, Outlook Looks Bright
Will US Spirits Volume Growth Boost Diageo's Year Ended June 2016 Results?
Why Did Diageo Invest In A Non-Alcoholic Drinks Company?
Can There Be A Silver Lining For Diageo In The Aftermath Of The Brexit?
How Will Brexit Impact Diageo?
What Has Been Driving The U.S. Spirits Market?
What Is The Share Of Premium Spirits In The U.S.?
What Is The State Of The U.S. Distilled Spirits Market?
What Is Diageo's Position in India's Alcoholic Beverage Market?
Why Are We Bullish On Diageo?
Why Is Diageo Bullish On The African Beer Market?
Was Don Julio Tequila A Shot Worth Taking For Diageo?
What Is India's Share In The Net Sales Of Diageo Before And After The Purchase Of United Spirits Limited?
Diageo: Year 2015 In Review
How Will Diageo's Revenue And EBITDA Composition Change In The Next Three Years?
Where Will Diageo's Growth Come From In The Next Three Years?
What is Diageo's Fundamental Value Based On Expected 2016 Results?
What Is The Share Of Global Net Sales For Diageo, By Alcohol Category, And How Has It Changed?
How Has Diageo's Revenue And EBITDA Composition Changed In The Last 3 Years?
How Has Diageo's Volume Share Of Premium Spirits Changed Over The Years?
What Are Diageo's Highest And Lowest Growth Markets?
By What Percentage Did Diageo's Revenue & EBITDA Decline In The Last 3 Years?
What Is Diageo's Revenue And EBITDA Breakdown?
How Has Diageo's Volume Composition Changed In The Last 3 Years?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Diageo .
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
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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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In its year ended June 2016 earnings, Diageo ( DEO ) reported organic sales growth of 2.8%, after two years of largely flat growth, heralding a "single mid-digit top line growth" in 2017. During the first half of its FY 2016 (six months ended December 2015), the company reported a decline in the net sales and volumes for the North American region. However, recovery was already seen in the second quarter (three months ended December 2015) of the company's performance in North America, with the quarterly growth rates improving from a negative 10.4% to a positive 4.7% For the full financial year, North America delivered net sales growth of 3%, after a strong performance of a 10% increase in the second half of the year in US Spirits.
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In its year ended June 2016 earnings, Diageo ( DEO ) reported organic sales growth of 2.8%, after two years of largely flat growth, heralding a "single mid-digit top line growth" in 2017. During the first half of its FY 2016 (six months ended December 2015), the company reported a decline in the net sales and volumes for the North American region. The company's tequila brand Don Julio increased its net sales by 34%, making it the fastest growing brand in the portfolio.
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In its year ended June 2016 earnings, Diageo ( DEO ) reported organic sales growth of 2.8%, after two years of largely flat growth, heralding a "single mid-digit top line growth" in 2017. See Our Complete Analysis For Diageo Here North America is the largest premium drinks market in the world, and accounts for about one-third of Diageo's net sales and a half of its operating profit. However, recovery was already seen in the second quarter (three months ended December 2015) of the company's performance in North America, with the quarterly growth rates improving from a negative 10.4% to a positive 4.7% For the full financial year, North America delivered net sales growth of 3%, after a strong performance of a 10% increase in the second half of the year in US Spirits.
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In its year ended June 2016 earnings, Diageo ( DEO ) reported organic sales growth of 2.8%, after two years of largely flat growth, heralding a "single mid-digit top line growth" in 2017. See Our Complete Analysis For Diageo Here North America is the largest premium drinks market in the world, and accounts for about one-third of Diageo's net sales and a half of its operating profit. During the first half of its FY 2016 (six months ended December 2015), the company reported a decline in the net sales and volumes for the North American region.
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2016-08-23 00:00:00 UTC
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Anheuser Busch Inbev SA (ADR) (BUD): 3 Pros, 3 Cons
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https://www.nasdaq.com/articles/anheuser-busch-inbev-sa-adr-bud%3A-3-pros-3-cons-2016-08-23
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
We're just two months away from the expected closure of the gigantic "Megabrew" beer merger. If completed, it will join Anheuser Busch Inbev SA (ADR) (NYSE: BUD ) with SABMiller plc (ADR) (OTCMKTS: SBMRY ). This will unite the world's two largest brewers under one roof.
However, there's a lot that's still unclear about the firm's prospects as the merger draws closer. Among the questions, monopoly concerns, growth strategy for the combined firm and a new dividend policy all are on investors' minds.
With all this in the air, is BUD stock a good buy now, or is it better to wait until the deal closes?
BUD Stock Pros
Sin Pays : A prominent finance blog put up a post last year titled " Beer Before Steel ". In it, the author calculated the returns of 30 different large U.S. industries over the past 82 years. Beer and liquor came in second place, trailing just cigarettes. Beer beat out many other strong sectors, including food, healthcare and oil to take the second spot.
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Over the last 82 years, beer stocks returned more than 7.5% in real terms annually. That's massive. Nominal returns topped 10% per year. Compared to a median S&P 500 stock, beer shares outperformed by 2.5% per year. Put simply, unless you have ethical reasons for not investing in alcohol, beer stocks belong in almost everyone's portfolio.
Huge Scale : Prior to the merger, Anheuser-Busch comes with 22% of the world beer market. SABMiller, at No. 2, has a 13% share. Divestments of the post-merger company will shrink this a bit, but the combined firm will acount for roughly a third of the global beer market. There's no other firm that even hits 10%. Heineken N.V. (ADR) (OTCMKTS: HINKY ) is next up, but its share is in the single digits.
This huge scale gives the combined company a tremendous market position. It can negotiate harder than anyone else for costs all across its supply chain - from grain and bottle suppliers to advertising, distribution and retailers. It's unprecedented for one firm to control this much of a gigantic global market. If Anheuser-Busch uses the opportunity well, it can generate stunning profit margins.
Craft Beer Threat Fading : The Daily Beast recently warned readers of craft beer's " looming crisis ". After watching years of double-digit growth, entrepreneurs assumed craft beer offered easy profits. Now, however, supply is exceeding demand. Old product is going bad on shelves increasingly, as too many new, smaller breweries vie for consumers' limited quantity of beer purchases.
If things play out like 1996, when craft beer last experienced a hangover, the sector should see sales flatline for the next five years. This coming bust will force many of the larger craft brewers to sell to larger competitors on the cheap or fail outright.
This will allow the larger craft brewers, such as Boston Beer Co Inc (NYSE: SAM ) - maker of Sam Adams - to consolidate its market position. Anheuser Busch wants more craft brewers. It has bought Goose Island, Breckenridge and Blue Point Brewing, among others. The upcoming craft beer shakeout should be great for BUD stock. It will weaken the competition and allow the giant to fortify its position.
BUD Stock Cons
Dividend Questions : BUD stock currently pays a generous 3.7% dividend yield. Coming from a company with such stable and strong earnings, that's a great base for steady income. However, the dividend may be cut substantially following the merger. As of yet, the combined company hasn't revealed its dividend plans.
The combined firm will debut with more than $100 billion in debt. Even in 2016, that's a huge sum, topping the wealth of Bill Gates. The company's net debt-to-EBITDA ratio would be almost 4, well above old Anheuser-Busch's target of 2.
To get back to a less levered balance sheet, the new company would have to pay off tens of billions in debt, presumably limiting the amount of cash the company wants to spend on its dividends. SABMiller currently yields only 1.8%. This suggests that its shareholders wouldn't be too outraged if the combined company pays much less than the current 3.7% yield.
Too Big to Grow? : Simply put, we've never seen a brewer this big before. The company already controls a third of the global beer market, there are real questions about further upside. Even if the company finds meaningful organic growth or good merger and acquisition targets, regulators will block moves that would make the company too powerful. Anti-monopoly laws still restrict corporate empires around much of the globe.
On a related note, the law of large numbers applies here. For a company with, say, $1 billion in sales, it only takes an additional $100 million in revenues to grow at 10%. Anheuser-Busch, on the other hand, generates $42 billion in revenue. And that's before the SABMiller merger. It's almost impossible to generate large organic growth in a stable industry where you already dominate.
Low-Alcohol Beer : Anheuser-Busch says it aims to more than double its sales of low and non-alcohol beers by 2025. It's aiming for 20% of its total beer sales to be in this category by 2025, up from just 9% today.
Supposedly, there is a health push away from alcohol. In some developed markets, such as the United Kingdom, beer volumes have dropped over the last decade. The company thus sees a market opportunity to sell products that taste like beer but with less or no alcohol.
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This could work.
However, to me, it seems about as plausible as when fast food restaurants say they are going to sell more salads. Generally, it just serves as a distraction for the company and a waste of marketing resources.
Bottom Line on BUD Stock
I believe most investors should own alcohol stocks. Whether they shold own BUD stock in particular is a more difficult question.
In my view, it's probably better to wait until after the merger, and see how things shake out. A dividend cut would probably hit BUD stock in the short-term as yield seekers exited. For investors wanting to play the alcohol sector, Molson Coors Brewing Company (NYSE: TAP ) and Diageo plc (ADR) (NYSE: DEO ) seem like safer choices at the moment.
As of this writing, Ian Bezek owned shares in Diageo and Boston Beer. You can reach him on Twitter at @irbezek.
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The post Anheuser Busch Inbev SA (ADR) (BUD): 3 Pros, 3 Cons 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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For investors wanting to play the alcohol sector, Molson Coors Brewing Company (NYSE: TAP ) and Diageo plc (ADR) (NYSE: DEO ) seem like safer choices at the moment. BUD Stock Pros Sin Pays : A prominent finance blog put up a post last year titled " Beer Before Steel ". Divestments of the post-merger company will shrink this a bit, but the combined firm will acount for roughly a third of the global beer market.
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For investors wanting to play the alcohol sector, Molson Coors Brewing Company (NYSE: TAP ) and Diageo plc (ADR) (NYSE: DEO ) seem like safer choices at the moment. If completed, it will join Anheuser Busch Inbev SA (ADR) (NYSE: BUD ) with SABMiller plc (ADR) (OTCMKTS: SBMRY ). BUD Stock Cons Dividend Questions : BUD stock currently pays a generous 3.7% dividend yield.
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For investors wanting to play the alcohol sector, Molson Coors Brewing Company (NYSE: TAP ) and Diageo plc (ADR) (NYSE: DEO ) seem like safer choices at the moment. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips We're just two months away from the expected closure of the gigantic "Megabrew" beer merger. BUD Stock Cons Dividend Questions : BUD stock currently pays a generous 3.7% dividend yield.
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For investors wanting to play the alcohol sector, Molson Coors Brewing Company (NYSE: TAP ) and Diageo plc (ADR) (NYSE: DEO ) seem like safer choices at the moment. This huge scale gives the combined company a tremendous market position. BUD Stock Cons Dividend Questions : BUD stock currently pays a generous 3.7% dividend yield.
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727996.0
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2016-08-15 00:00:00 UTC
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Anheuser-Busch InBev's Earnings Show Why It Needs Miller Merger Done Now
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DEO
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https://www.nasdaq.com/articles/anheuser-busch-inbevs-earnings-show-why-it-needs-miller-merger-done-now-2016-08-15
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North America and Latin America North remain A-B InBev's two most important markets, but the continued migration of U.S. consumers to craft beer and imports hurts it in the one while the economic upheavals in Brazil take it down in the other. The Miller deal is crucial to the brewer's future for the following three reasons.
1. Acquiring Miller won't do anything for its U.S. business. To pass regulatory muster with the Justice Dept., A-B agreed to sell Miller's interest in MillerCoors, the joint venture project with Molson Coors (NYSE: TAP) . Any growth realized will redound to Molson, not Anheuser-Busch. Similarly, because it previously wanted to acquire Mexico's Modelo, it had to give up to Constellation Brands '(NYSE: STZ) distribution rights of Corona, so it loses out on import's growth, too.
According to the analysts at market research firm IRI, import beer grew 6.7% in the first two quarters of the year, surpassing the 6% increase achieved by craft brews. While that's down slightly from the 8.7% jump imports saw in the same period a year ago, it puts the category firmly ahead of craft beer. Constellation's earnings grew 15% in the first quarter, driven almost wholly by its portfolio of Grupo Modelo beers, primarily Corona.
2. Miller's strength in Latin America is in the south. SABMiller has near monopoly status in certain South American countries such as Colombia, Ecuador, Panama, and Peru, and the acquisition gives AB InBev access to those fast-growing markets, which account for 34% of Miller's total earnings before interest, taxes, and amortization of intangible assets. Since 2010, Latin America's EBITA has grown at a compounded rate of 7.5% annually for Miller.
3. The real opportunity is Africa. The continent is Miller's second most important market, contributing another 30% of EBITA to its ledger, and forming the strongest region for the brewer last year, driven by Nigeria and South Africa.
According to industry website Beverage Daily , Africa is the fastest-growing market for beer, and it's estimated that it will grow faster than any other region over the next five years. Miller, of course, having begun as South African Breweries, has a natural advantage there, where it possess a third of the market share. Miller, Heineken , Diageo , and Castel Group (in which Miller owns a stake) reportedly have dominant positions there as well.
Analysts at market researcher Canadean forecast growth will continue at a 5% annual rate through 2020, which CEO Carlos Brito admits is a driving force of the merger with Miller, telling analysts last year, "Africa in particular will be a critical driver of future growth for the combined company."
Anheuser-Busch InBev is suffering from changing consumer tastes here at home and macroeconomic events around the world. It had to raise its takeover offer for SABMiller because of the U.K.'s decision to exit the European Union, but it wasn't enough to mollify critics that the buyout price is now too low and large shareholders Altria and BevCo are getting special treatment.
Still, its earnings report indicates that if Anheuser-Busch InBev wants any hope of growth in the future, it needs to acquire Miller. That might not be as easy a task as it was once thought.
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Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends Anheuser-Busch InBev NV and Diageo. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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To pass regulatory muster with the Justice Dept., A-B agreed to sell Miller's interest in MillerCoors, the joint venture project with Molson Coors (NYSE: TAP) . SABMiller has near monopoly status in certain South American countries such as Colombia, Ecuador, Panama, and Peru, and the acquisition gives AB InBev access to those fast-growing markets, which account for 34% of Miller's total earnings before interest, taxes, and amortization of intangible assets. It had to raise its takeover offer for SABMiller because of the U.K.'s decision to exit the European Union, but it wasn't enough to mollify critics that the buyout price is now too low and large shareholders Altria and BevCo are getting special treatment.
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North America and Latin America North remain A-B InBev's two most important markets, but the continued migration of U.S. consumers to craft beer and imports hurts it in the one while the economic upheavals in Brazil take it down in the other. According to the analysts at market research firm IRI, import beer grew 6.7% in the first two quarters of the year, surpassing the 6% increase achieved by craft brews. 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 and Latin America North remain A-B InBev's two most important markets, but the continued migration of U.S. consumers to craft beer and imports hurts it in the one while the economic upheavals in Brazil take it down in the other. The continent is Miller's second most important market, contributing another 30% of EBITA to its ledger, and forming the strongest region for the brewer last year, driven by Nigeria and South Africa. Analysts at market researcher Canadean forecast growth will continue at a 5% annual rate through 2020, which CEO Carlos Brito admits is a driving force of the merger with Miller, telling analysts last year, "Africa in particular will be a critical driver of future growth for the combined company."
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The continent is Miller's second most important market, contributing another 30% of EBITA to its ledger, and forming the strongest region for the brewer last year, driven by Nigeria and South Africa. Still, its earnings report indicates that if Anheuser-Busch InBev wants any hope of growth in the future, it needs to acquire Miller. The Motley Fool recommends Anheuser-Busch InBev NV and Diageo.
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727997.0
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2016-08-01 00:00:00 UTC
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Diageo (DEO) FY16 Earnings Increase as Expenses Decline
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DEO
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https://www.nasdaq.com/articles/diageo-deo-fy16-earnings-increase-as-expenses-decline-2016-08-01
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Diageo plc'sDEO earnings in fiscal 2016 (ended Jun 30, 2016) gained 1.0% (in local currency) year over year to 89.4 pence ($1.32* per share) from 88.8 pence ($1.37* per share) in the year-ago period backed by organic profit growth, higher associates income and lower finance charges.
Unfavorable retail conditions in the emerging markets hindered profit during the fiscal year.
On a reported basis, net revenue (total revenue excluding excise duties) slipped 3% in local currency in fiscal 2015. Unfavorable exchange and disposals more than offset organic growth in each region and accretion from acquisitions. Volume growth in reserve brands was offset by a decline in beer and scotch in the emerging markets. As a result, overall volume remained flat year over year.
On an organic basis, net sales inched up 3% to £276 million ($4.1 billion) backed by sales gain in all the geographic regions. Volumes rose 1% on an organic basis.
In fiscal 2015, Diageo witnessed 2% decline in marketing spending, on an organic basis. Operating profit before exceptional items (excluding acquisitions and disposals) went up 3% year over year, on an organic basis.
DIAGEO PLC-ADR Price and EPS Surprise
DIAGEO PLC-ADR Price and EPS Surprise | DIAGEO PLC-ADR Quote
Segment Details
In North America , organic sales grew 3% in fiscal 2016 due to 2% higher sales in all segments. Net sales also increased on the back of 6% growth in North American whiskey, as Crown Royal and Bulleit continued to gain share in the category. Marketing spending decreased 2% in the region, primarily due to focused spending and procurement efficiencies. Advertising was focused on US Spirits, with investment in Smirnoff, Crown Royal and Captain Morgan and fast growing brands such as Don Julio, Bulleit and Buchanan's.
Operating margin expanded 39 basis points (bps) due to higher gross margin and lower marketing spend.
In Europe, Russia and Turkey , organic sales inched up 4% on higher sales in all regions. Volumes grew 4% in Europe, partly offset by volume decline in Russia and Turkey. Operating margin improved 51 bps due to higher gross margins in both Europe and Russia. In Europe, procurement savings offset increased marketing and overheads.
Organic sales in Africa increased 3%, with 9.3% volume gain due to strong gains of premium brands. Marketing spending was up 1%, particularly on brand building initiatives. Operating margin contracted 252 bps primarily due to adverse mix and volume decline in Nigeria.
The Latin America and Caribbean region's performance was modest in the fiscal year with only 1% gain in organic sales. However, volumes declined 2%. The company also increased its marketing spending by 6% to support broader participation within spirits. Investment in scotch was focused on enhancing brand equity across price points in Mexico. Operating profit dipped 2% as higher overheads overshadowed gross margin improvement due to higher procurement savings.
In the Asia Pacific region, sales gained 2% backed by growth in India, South East Asia and Australia. Volume remained flat as higher volume in South East Asia, North Asia and Australia was offset by volume decline in Greater China and Middle East.
Marketing spend declined 12% due to reduced spending on Johnnie Walker Black Label and Johnnie Walker Blue Label in China and India. This was because marketing in these areas reduced as a result of termination of USL-related party agreements.
Other Updates
Diageo is expanding fast into the emerging markets. The company has acquired ownership in United Spirits Limited, a leading spirit company of India. Moreover, during fiscal 2015, the company gained full control of the tequila brand, Don Julio, in an attempt to boost its presence in the premium tequila category.
Currently, Diageo carries a Zacks Rank #3 (Hold). A better-ranked stocks in the same sector is Constellation Brands Inc. STZ , which holds a Zacks Rank #2 (Buy). Two other consumer staples stock worth considering includes Altria Group Inc. MO and Post Holdings Inc. POST also holding a Zacks Rank #2.
*£1=$1.48 (average price of the year ended Jun 30, 2016).
**£1=$1.55 (average price of the year ended Jun 30, 2015).
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DIAGEO PLC-ADR (DEO): Free Stock Analysis Report
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POST HOLDINGS (POST): Free Stock Analysis Report
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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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Diageo plc'sDEO earnings in fiscal 2016 (ended Jun 30, 2016) gained 1.0% (in local currency) year over year to 89.4 pence ($1.32* per share) from 88.8 pence ($1.37* per share) in the year-ago period backed by organic profit growth, higher associates income and lower finance charges. Click to get this free report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report ALTRIA GROUP (MO): Free Stock Analysis Report CONSTELLATN BRD (STZ): Free Stock Analysis Report POST HOLDINGS (POST): Free Stock Analysis Report To read this article on Zacks.com click here. Net sales also increased on the back of 6% growth in North American whiskey, as Crown Royal and Bulleit continued to gain share in the category.
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Click to get this free report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report ALTRIA GROUP (MO): Free Stock Analysis Report CONSTELLATN BRD (STZ): Free Stock Analysis Report POST HOLDINGS (POST): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc'sDEO earnings in fiscal 2016 (ended Jun 30, 2016) gained 1.0% (in local currency) year over year to 89.4 pence ($1.32* per share) from 88.8 pence ($1.37* per share) in the year-ago period backed by organic profit growth, higher associates income and lower finance charges. DIAGEO PLC-ADR Price and EPS Surprise DIAGEO PLC-ADR Price and EPS Surprise | DIAGEO PLC-ADR Quote Segment Details In North America , organic sales grew 3% in fiscal 2016 due to 2% higher sales in all segments.
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Diageo plc'sDEO earnings in fiscal 2016 (ended Jun 30, 2016) gained 1.0% (in local currency) year over year to 89.4 pence ($1.32* per share) from 88.8 pence ($1.37* per share) in the year-ago period backed by organic profit growth, higher associates income and lower finance charges. Click to get this free report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report ALTRIA GROUP (MO): Free Stock Analysis Report CONSTELLATN BRD (STZ): Free Stock Analysis Report POST HOLDINGS (POST): Free Stock Analysis Report To read this article on Zacks.com click here. DIAGEO PLC-ADR Price and EPS Surprise DIAGEO PLC-ADR Price and EPS Surprise | DIAGEO PLC-ADR Quote Segment Details In North America , organic sales grew 3% in fiscal 2016 due to 2% higher sales in all segments.
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Click to get this free report DIAGEO PLC-ADR (DEO): Free Stock Analysis Report ALTRIA GROUP (MO): Free Stock Analysis Report CONSTELLATN BRD (STZ): Free Stock Analysis Report POST HOLDINGS (POST): Free Stock Analysis Report To read this article on Zacks.com click here. Diageo plc'sDEO earnings in fiscal 2016 (ended Jun 30, 2016) gained 1.0% (in local currency) year over year to 89.4 pence ($1.32* per share) from 88.8 pence ($1.37* per share) in the year-ago period backed by organic profit growth, higher associates income and lower finance charges. As a result, overall volume remained flat year over year.
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2016-07-29 00:00:00 UTC
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Spirits Growth Returns to Diageo plc in 2016
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https://www.nasdaq.com/articles/spirits-growth-returns-diageo-plc-2016-2016-07-29
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The fiscal year has come to a close at spirits-maker Diageo (NYSE: DEO) , and while the headline numbers may not show it, 2016 was a turnaround year for the company. Volumes grew around the world, and key brands came back into favor with customers.
But Brexit complicated results for the U.K.-based company, so investors need to look at the full picture to gauge how the company is doing. Here are the key takeaways for investors from fiscal 2016.
Diageo plc results: The raw numbers
Source: Company earnings release.
What happened with Diageo this quarter?
The drop in the British pound, as well as acquisitions and disposals, complicates the raw earnings figures above. Here are a few items that offer a better picture of Diageo's business:
Organic volume grew 1.3% worldwide, driven by 9% growth in Africa. North American volume increased just 1%, but sales were up 3%, and operating profit grew 4%.
Every major market experienced improved organic growth versus 2015 with 70% of overall growth coming from North America, Europe, Russia, and Turkey.
Acquisitions and disposals (310 million pounds), exchange rate changes (172 million pounds), and a reclassification in the way net sales are recorded in Asia Pacific (122 million pounds) resulted in the decline in sales you see above. Without those changes, organic sales grew 2.6% from a year ago.
Diageo's global-giant brands, which include Johnnie Walker, Smirnoff, Captain Morgan, Guinness, Bailey's, and Tanqueray, all grew organic net sales during 2016. That's a sharp improvement from a year earlier when only Tanqueray displayed any growth.
Margins also expanded on an organic basis from 28.35% in 2015 to 28.69% in 2016.
What management had to say
The uncertainty in Britain is certainly throwing Diageo for a loop, but management said it's working with the government to make sure it has access to the markets it serves.
Within what management can control, the company is performing well. International markets are taking to Diageo's products, particularly in Africa, and U.S. consumers are trending toward more expensive brands. That has helped both top-line growth, as well as bottom-line profitability for Diageo.
Looking forward
The spirits business is facing the same macro challenges as any multinational company with currencies and growth rates fluctuating around the world. But at the core, customers are buying more volume and trending toward high-margin products from Diageo. Management's long-term growth strategy is working, and as long as the global economy continues its slow growth, the company should do the same.
The scale and high-value brands Diageo has built is a lasting model that should continue to throw off cash flow and dividends for years to come. That's a Foolish investment if I ever saw one.
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Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends Diageo. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 fiscal year has come to a close at spirits-maker Diageo (NYSE: DEO) , and while the headline numbers may not show it, 2016 was a turnaround year for the company. Diageo's global-giant brands, which include Johnnie Walker, Smirnoff, Captain Morgan, Guinness, Bailey's, and Tanqueray, all grew organic net sales during 2016. Looking forward The spirits business is facing the same macro challenges as any multinational company with currencies and growth rates fluctuating around the world.
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The fiscal year has come to a close at spirits-maker Diageo (NYSE: DEO) , and while the headline numbers may not show it, 2016 was a turnaround year for the company. Here are a few items that offer a better picture of Diageo's business: Organic volume grew 1.3% worldwide, driven by 9% growth in Africa. Acquisitions and disposals (310 million pounds), exchange rate changes (172 million pounds), and a reclassification in the way net sales are recorded in Asia Pacific (122 million pounds) resulted in the decline in sales you see above.
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The fiscal year has come to a close at spirits-maker Diageo (NYSE: DEO) , and while the headline numbers may not show it, 2016 was a turnaround year for the company. Here are a few items that offer a better picture of Diageo's business: Organic volume grew 1.3% worldwide, driven by 9% growth in Africa. A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology.
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The fiscal year has come to a close at spirits-maker Diageo (NYSE: DEO) , and while the headline numbers may not show it, 2016 was a turnaround year for the company. Here are a few items that offer a better picture of Diageo's business: Organic volume grew 1.3% worldwide, driven by 9% growth in Africa. Without those changes, organic sales grew 2.6% from a year ago.
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2016-07-19 00:00:00 UTC
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Pre-Market Most Active for Jul 19, 2016 : AZN, ARMH, NFLX, DB, BAC, LYG, DEO, EMC, ERIC, QQQ, XIV, TSEM
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DEO
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https://www.nasdaq.com/articles/pre-market-most-active-jul-19-2016-azn-armh-nflx-db-bac-lyg-deo-emc-eric-qqq-xiv-tsem-2016
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The NASDAQ 100 Pre-Market Indicator is down -10.56 to 4,609.12. The total Pre-Market volume is currently 7,763,722 shares traded.
The following are the most active stocks for the pre-market session :
Astrazeneca PLC ( AZN ) is -0.39 at $30.16, with 1,529,938 shares traded. AZN's current last sale is 83.78% of the target price of $36.
ARM Holdings plc ( ARMH ) is -0.54 at $65.63, with 1,473,030 shares traded., following a 52-week high recorded in prior regular session.
Netflix, Inc. ( NFLX ) is -12.66 at $86.15, with 1,409,670 shares traded. NFLX's current last sale is 68.92% of the target price of $125.
Deutsche Bank AG ( DB ) is -0.53 at $14.01, with 559,612 shares traded. DB's current last sale is 96.96% of the target price of $14.45.
Bank of America Corporation ( BAC ) is -0.06 at $14.05, with 333,875 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2016. The consensus EPS forecast is $0.34. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Lloyds Banking Group Plc ( LYG ) is -0.05 at $2.95, with 313,150 shares traded. LYG's current last sale is 108.46% of the target price of $2.72.
Diageo plc ( DEO ) is -1.85 at $111.97, with 305,527 shares traded. As reported by Zacks, the current mean recommendation for DEO is in the "buy range".
EMC Corporation ( EMC ) is +0.41 at $27.95, with 282,004 shares traded. EMC's current last sale is 95.56% of the target price of $29.25.
Ericsson ( ERIC ) is -0.33 at $7.21, with 199,579 shares traded. RTT News Reports: Wall Street Set For Reversal As European Worries Take Hold
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.35 at $112.19, with 171,241 shares traded. This represents a 32.39% increase from its 52 Week Low.
region ( XIV ) is -0.12 at $29.96, with 133,060 shares traded. This represents a 95.05% increase from its 52 Week Low.
Tower Semiconductor Ltd. ( TSEM ) is -0.6 at $12.80, with 121,408 shares traded. As reported by Zacks, the current mean recommendation for TSEM is in the "strong buy range".
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 -1.85 at $111.97, with 305,527 shares traded. As reported by Zacks, the current mean recommendation for DEO is in the "buy range". The following are the most active stocks for the pre-market session : Astrazeneca PLC ( AZN ) is -0.39 at $30.16, with 1,529,938 shares traded.
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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. Diageo plc ( DEO ) is -1.85 at $111.97, with 305,527 shares traded. As reported by Zacks, the current mean recommendation for DEO is in the "buy range".
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Diageo plc ( DEO ) is -1.85 at $111.97, with 305,527 shares traded. As reported by Zacks, the current mean recommendation for DEO is in the "buy range". The following are the most active stocks for the pre-market session : Astrazeneca PLC ( AZN ) is -0.39 at $30.16, with 1,529,938 shares traded.
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Diageo plc ( DEO ) is -1.85 at $111.97, with 305,527 shares traded. As reported by Zacks, the current mean recommendation for DEO is in the "buy range". The NASDAQ 100 Pre-Market Indicator is down -10.56 to 4,609.12.
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