For Immediate Release
Chicago, IL – September 16, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Anheuser-Busch InBev SA/NV BUD, Tilray, Inc. TLRY, The Boston Beer Company SAM, Constellation Brands, Inc. STZ and Aphria Inc. APHA.
Here are highlights from Friday’s Analyst Blog:
4 Stocks to Ride on the CBD-Infused Beverage Trend
Cannabidiol-infused (CBD) beverage market holds tremendous potential, owing to increasing health-consciousness among consumers, who are realizing the health benefits of CBD-infused drinks. Let us, thus, take a look at a couple of stocks that are positioned to gain from this new consumer trend.
CBD Beverages Market to Boom
According to a report by Zenith Global, the CBD-infused drinks market could be worth $1.4 billion by 2023, assuming a CAGR of 74.7%. There are ample reasons behind the popularity of CBD-infused drinks. First, consumer preference is shifting toward non-alcoholic beverages. Lower alcohol sales worldwide prove that. These could go further south as consumers step up on their demand for cannabidiol-infused beverages.
Second, CBD helps combat a string of health conditions such as arthritis, migraines, epilepsy, schizophrenia, insomnia, seizures, inflammation, the side effects of cancer and multiple sclerosis. The chemical has become more popular for relieving pain, offering relaxation and lifting one’s mood.
Third, product innovation is pushing sales. Sustainable and attractive packaging, ready-to-drink solutions, making ingredients public and a transparent consumer-producer relationship is building trust around products. When it comes to CBD beverages, these factors are rather crucial to making consumers return for more.
Finally, growing brand endorsements and knowledge of CBD-infused beverages are making these products hard to miss. In addition, speaking of a few CBD-infused products that are a hit among consumers, CBD-infused beer tops the list. Many notable brewers are now opting to manufacture the product.
Recently, California-based brewer Two Roots Brewing Co. said it is set to acquire Rochester Mills Production Brewery, the latter a Michigan-based craft beer producer. Two Roots plans to infuse, package and market cannabis-infused beer under its label.
4 Stocks in Focus
We have chosen four beer and marijuana stocks that could gain big from the CBD-infused drinks rage. All of these stocks carry a Zacks Rank #2 (Buy) or 3 (Hold).
Anheuser-Busch InBev SA/NV announced a partnership with Tilray, Inc. in December 2018 to produce marijuana-based beverages. The deal is worth $100 million.
Anheuser-Busch carries a Zacks Rank #2. In fact, the company’s stock has outperformed the Zacks Beverages – Alcohol industry on a year-to-date basis (+48.1% vs +28.1%). The Zacks Consensus Estimate for its current-year earnings has risen 8.8% over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Per a CNBC report, The Boston Beer Company is seeking an entry into the cannabis market after its Truly Hard Seltzer turned the company’s stock price around.
Boston Beer Company carries a Zacks Rank #3. In fact, the company’s stock has outperformed the Zacks Beverages – Alcohol industry on a year-to-date basis (+63% vs +28.1%). The Zacks Consensus Estimate for its current-year earnings has risen 3.8% over the past 60 days.
Constellation Brands, Inc.is heavily invested in the cannabis market. The Corona beer producer first invested in Canopy Growth (CGC) in 2017 and has followed with more investments since then.
Constellation Brands carries a Zacks Rank #3. In fact, the company’s stock has outperformed the Zacks Beverages – Alcohol industry in the last six months (+19.6% vs +13.5%).
Aphria Inc.is a major global cannabis company. The company holds a Tier 3 license to grow more than 5-acres cannabis for medical, scientific and therapeutic purposes.
Aphria carries a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has risen more than 100% over the past 60 days.
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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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Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
Constellation Brands Inc (STZ) : Free Stock Analysis Report
The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report
Tilray, Inc. (TLRY) : Free Stock Analysis Report
Aphria Inc. (APHA) : Free Stock Analysis Report
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