|Bid||0.00 x 1200|
|Ask||74.00 x 1400|
|Day's Range||72.86 - 73.81|
|52 Week Range||64.55 - 117.06|
|Beta (3Y Monthly)||1.08|
|PE Ratio (TTM)||21.39|
|Forward Dividend & Yield||3.30 (4.58%)|
|1y Target Est||83.73|
In a story Jan. 17 about beer makers' focus on cannabis companies, The Associated Press reported erroneously about the specifics of Molson Coors' investment in cannabis products. Molson has an investment agreement with HEXO Corp., which calls its medical marijuana brand Hydropothecary. Molson holds a 57.5 percent stake in a joint venture with HEXO called Truss that is focusing on cannabis-infused products.
Americans are increasingly laying off the booze, prompting the world’s biggest brewers and liquor companies to push beyond their traditional fare and roll out teas, energy drinks and nonalcoholic spirits. New data show that U.S. alcohol volumes dropped 0.8% last year, slightly steeper than the 0.7% decline in 2017. Beer was worst hit, with volumes down 1.5% in 2018, compared with a 1.1% decline in 2017, while growth in wine and spirits slowed, according to data compiled for The Wall Street Journal by industry tracker IWSR.
Moody's Investors Service ("Moody's") today assigned Baa1 ratings to Anheuser-Busch InBev Worldwide Inc., guaranteed by Anheuser-Busch InBev SA/NV ("ABI") and affiliates, for approximately $15.5 billion of notes to be issued in multiple tranches. The Baa1 rating reflects ABI's strong qualitative fundamentals offset by Moody's expectation that leverage will remain high for the next few years.
It's gimmicky to be sure. Yet, it's also brilliant. On Wednesday, New Age Beverages (NASDAQ:NBEV) unveiled a new line of cannabis-infused drinks that will utilize the name and fame of late reggae star Bob Marley to launch Marley+CBD. The agreement pairs a niche maker of teas and flavored waters with a well-known entertainer who is widely remembered as a fan of marijuana. The news wasn't terribly surprising, given the response from NBEV stock owners. Shares were up slightly in front of the announcement that a conference call had been scheduled to discuss then-unknown news, and New Age Beverages stock actually fell once investors learned of the new product and label. This is a development, however, that may need a slow burn to fully demonstrate the potential of a Marley-branded, cannabis-based drink. NBEV could be a good buy for investors interested in pot stocks, but hesitant about a pure-marijuana play. InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### Sign of the Times In some regards this was inevitable. * 10 Growth Stocks With the Future Written All Over Them Last year was a huge year for cannabis, with sweeping legalization in Canada -- though cannabis drinks are not yet legal in Canada -- and legalization progress in the United States. Partnerships began taking shape in earnest, with some major names showing interest in the business without even knowing exactly how they could or should plug into the legalized marijuana market. Constellation Brands (NYSE:STZ) was arguably the first big name to take the plunge, making a modest investment in Canada's marijuana producer Canopy Growth (NYSE:CGC) early last year and then upping that investment to a $4 billion, 38% stake in August. Anheuser Busch (NYSE:BUD) forged its tie-up with Tilray (NASDAQ:TLRY) in December to explore the development of THC and CBD-infused beverages. Even PepsiCo (NASDAQ:PEP) has acknowledged it's mulling the possibility. ### Marley+CBD Enters a Crowded Market The first product to launch under the Marley+CBD label will be relaxation drink Mellow Mood, soon to be available Colorado, Oregon, Washington, and Michigan. The 15.5 ounce can will contain 25 milligrams of cannabidiol, which does not cause a 'high' like THC (tetrahydrocannabinol) does, but still offers a variety of physical benefits The company implied that more Marley+CBD beverages may be on the way. Investors shouldn't think, however, that New Age Beverages has beaten bigger, better-funded players to the market. The cannabis-based beverage market is already fairly crowded. Tinley, Level+, Dixie, Stillwater, Mood33, Mad Hatter and Brewbudz are just some of the brands of CBD and THC-infused drinks already available, where such beverages are legal. In fact, New Age itself already launched a cannabis-infused drink back in October. The existing and future competitors within the CBD beverage market are a reflection of growing demand. Still, the Marley name is a powerful one, as is the New Age Beverages moniker. ### Modest Market Size In 2017, it was estimated that the legal marijuana market was worth $9 billion.That was before Canada legalized it, and with only a handful of U.S. states on board. By 2022, as pot is legalized in more places, the market could grow to $23 billion. Of those figures, the vast majority of the money has been and will be spent on dry leaf, for smoking. Canaccord estimates that by 2022, the THC-infused beverage market will still only be worth $340 million per annum, while the CBD-infused drinks market will only be worth $260 million. And, cannabis-infused beverages are also expected to make up only a fifth of the entire edibles market. ### Bottom Line for NBEV Stock Though competitors lie ahead in what will indeed likely be a modestly-sized market, New Age Beverages has the advantage of an established distribution channel, at least a little influence within the industry and a brand name linked to a prolific supporter of marijuana that helped reduce the stigma of its use. * 7 Stocks to Buy as the Dollar Weakens In that light, New Age Beverages may have just become one of the top names to beat within the niche. Though NBEV stock hasn't responded especially well to the news yet, time could still prove the full potential of the new product to skeptical investors. As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Growth Stocks With the Future Written All Over Them * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One * 10 Companies That Could Post Decelerating Profits Compare Brokers The post Cannabis-Infused Drinks Are a Slow Burn for NBEV Stock appeared first on InvestorPlace.
Bonds rated BBB -- the lowest ratings tier above junk -- by at least one ratings agency have comprised two-thirds of new supply in the investment-grade market in the first 11 trading days of the year, a drastic reversal from last quarter’s BBB presence of less than one half, according to data compiled by Bloomberg. In the same period, credit spreads, the additional premium above Treasuries investors pay to hold riskier debt, widened 16 basis points, and high-grade bond funds experienced four straight weeks of outflows, according to Lipper Fund flows data. On Jan. 4, Bank of America Corp. strategists moved U.S. high-grade to overweight from underweight, adding they were particularly bullish on BBB’s.
Anheuser Busch InBev NV (NYSE: BUD ) plans to IPO its Asia business for debt refinancing, according to Bloomberg. Rather than floating its segment in the fastest growth region, the company should instead ...
STOCKSTOWATCHTODAY BLOG Brexit wasn’t bothering the Dow Jones Industrial Average Wednesday, as futures rose 93 points, or 0.4%, and S&P 500 futures advanced 0.3% and Nasdaq Composite futures were up 0.
Jefferies downgraded its outlook on Anheuser Busch Inbev's stock to underperform on Wednesday, saying the brewing company is facing heavy global competition, hurting any near term growth.
The latest bond sale by Anheuser-Busch InBev, the Budweiser maker and world’s biggest brewer, should help relieve some of its debt pressures.
Constellation Brands' Guidance Cut Overshadowed Its Q3 Results (Continued from Prior Part) ## STZ’s valuation Constellation Brands (STZ) was trading at 12-month forward PE multiple of 15.4x as of the end of the day on January 9. Constellation Brands’ forward valuation multiple fell 13.1% on January 9 as the company lowered its guidance for fiscal 2019, which ends on February 28, 2019. Higher interest expenses associated with the company’s financing of its stake in Canopy Growth (CGC) and weakness in the performance of its wine and spirits business are expected to adversely affect its fiscal 2019 earnings. As of January 9, Anheuser-Busch InBev (BUD), Molson Coors Brewing (TAP), and Brown-Forman (BF.B) are trading at 12-month forward PE multiples of 17.3x, 12.4x, and 27.1x, respectively. Constellation Brands is trying to boost its performance by focusing on premium brands in the beer and wine and spirits businesses. The company is exploring strategic alternatives to address the weakness in the $11 and below price point in the wine and spirits business. Constellation Brands is also focusing on innovation to drive its top line growth. Its Corona Premier, a low-calorie beer, has achieved tremendous success since its introduction. In the wine and spirits business, the company’s latest product introductions include Meiomi Rosé and SVEDKA Blue Raspberry. Constellation Brands has over a 36% stake in leading cannabis company Canopy Growth and has the option of increasing its stake to over 50%. Constellation’s significant investment in Canopy Growth gives it the opportunity to capitalize on the growth prospects in the global medicinal and recreational cannabis market. ## Analysts’ expectations Analysts expect Constellation Brands’ sales to rise 6.7% to $8.1 billion and its adjusted EPS to rise 6.8% to $9.31 in fiscal 2019. In fiscal 2020, the company’s sales growth and adjusted EPS growth are expected to be 6.5% and 5.9%, respectively. Its premium Mexican beer brands are likely to be the key drivers of its future growth. Browse this series on Market Realist: * Part 1 - Constellation Brands’ Guidance Cut Overshadowed Its Q3 Results * Part 2 - How Constellation Brands’ Q3 Earnings Shook Out * Part 3 - Assessing Constellation Brands’ Q3 Sales Growth
After Anheuser-Busch InBev SA/NV's (EBR:ABI) earnings announcement in September 2018, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 24% in the upcoming year compared with the Read More...
were hopping Friday amid talk of a potential IPO of its Asian operations by the global brewer. AB InBev's stock price rose 4.20% to close at $73.73 following a report by Bloomberg News the Belgium-based beer giant is discussing with advisers whether to turn its Asian operations into a publicly traded company. The deal could raise as much as $5 billion for the maker of Budweiser, which has been struggling under a high debt load since its $100 billion deal in 2016 for SABMiller Plc., the news service reports.
BRUSSELS/HONG KONG (Reuters) - Anheuser-Busch InBev (ABI.BR), the world's largest brewer, is considering raising billions of dollars in a partial flotation of its Asian operations, two Asian banking sources said, in a deal that would help to ease its debt burden. The Belgium-based maker of Budweiser, Corona and Stella Artois has been discussing a possible multibillion-dollar listing in Hong Kong, one banker said on Friday. AB InBev declined to comment on the matter.
BRUSSELS/HONG KONG, Jan 12 (Reuters) - Anheuser-Busch InBev , the world's largest brewer, is considering raising billions of dollars in a partial flotation of its Asian operations, two Asian banking sources said, in a deal that would help to ease its debt burden. The Belgium-based maker of Budweiser, Corona and Stella Artois has been discussing a possible multibillion-dollar listing in Hong Kong, one banker said on Friday. AB InBev declined to comment on the matter.
Many tend to ignore consumer stocks not oriented toward the latest technology. Consumers and investors tend to focus on companies that produce new gadgets or bring the next wave of tech innovation. Many "boring" consumer stocks that have less of a tech focus, however, offer an impressive track record with dividends. This serves as an advantage over a tech industry, which tends to lag the S&P 500 when it comes to offering dividend stocks. Due in large part to dividends and a loyal customer base, consumer stocks tend to offer stability lacking in some of these more exciting stocks. Also, contrary to popular belief, many of these companies have become innovation leaders. Although the press may not always report it, these firms often pioneer new products that place them on the cutting edge in their industries. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 A-Rated Stocks to Buy That The Smart Money Is Piling Into The following three companies lead this innovation. They also offer growth rates, valuations and dividend yields that should draw the attention of stock buyers. Source: Shutterstock ### AbbVie (ABBV) Admittedly, AbbVie (NYSE:ABBV) has made a few of my stock lists. I had hoped not to write about ABBV for that reason. However, when an equity offers an almost single-digit forward price-to-earnings (P/E) ratio, double-digit profit growth and the third-highest dividend yield among dividend aristocrats, I cannot leave it off in good conscience. ABBV stock trades a perfect storm for buyers. The patent on Humira faces patent expirations across the world. This has inspired a wave of selling in AbbVie. Despite this, analysts believe the company's drug pipeline will keep profits growing at double-digit rates. This has led to a forward PE ratio that stands at about 10.1. This perfect storm also applies to the firm's payouts. Due to its previous history as part of Abbott Laboratories (NYSE:ABT), ABBV holds dividend aristocrat status. When a stock hikes its payout for 46 years as AbbVie has, the stock price depends heavily on keeping this streak alive. Even better, ABBV has not made not offered a token hike in the payout merely to maintain the dividend aristocrat status. AbbVie went further, taking the payout from $2.56 per share in 2017 to $3.59 per share in 2018 to $4.28 per share this year. Approving such hikes when they face intense pressure to raise the payout every year shows a strong belief in its own future. Considering the low P/E ratio, the profit levels, and the dividend growth amounts, ABBV becomes one of the more obvious choices among consumer stocks. Source: Peyri Herrera via Flickr (Modified) ### Altria Group (MO) Few consumer stocks reflect resilience better than Altria (NYSE:MO). This year will mark 55 years since the U.S. Surgeon General released their report warning on the dangers of smoking. Amid anti-smoking campaigns, increasing tobacco taxes, and multi-billion dollar legal settlements, MO stock should have sunk into obscurity. Instead, Altria has become an unlikely success story. Despite the hostile environment for tobacco, the company continues to find opportunity. Currently, it invests in both smokeless tobacco and alcohol. It currently holds a 10.2% stake in Anheuser Busch-InBev (NYSE:BUD), for example. Also, despite legal barriers, it has also turned to the emerging marijuana sector. In late 2018, Altria purchased a 45% stake in Cronos (NASDAQ:CRON) for $1.8 billion. Even with the hostile business environment, MO stock manages to maintain a generous dividend. The current dividend of $3.20 per share yields almost 6.6%. Although MO does not hold dividend aristocrat status, the payout has increased in most years. As a result, MO stock has long remained a dividend powerhouse. Those who bought the equity in 2000 and reinvested the dividends receive their original investment back every year in dividends alone. The same holds true for those who bought in 1985 and spent or invested the payouts elsewhere. The company also looks attractive from a valuation and growth perspective. The forward P/E stands at 11.3. Moreover, analysts predict a 7.5% profit growth rate this year. Also, they expect those profit increases to remain in the high-single-digits for years to come. With its successes in related business, and its ability to maintain growth despite strong anti-tobacco sentiment, Altria should continue to stand out among consumer stocks. Source: Shutterstock ### General Mills (GIS) Despite producing recession-proof products, General Mills (NYSE:GIS) and its direct peers have endured years of struggle. An increasing interest in fresh and organic foods has diminished demand for the packaged foods General Mills has produced. As a result, it has seen both revenue and profits steadily fall over the last few years. This has taken GIS stock to levels first seen in 2012. However, a turnaround could occur soon. General Mills has begun to pivot to reflect consumer tastes. The company owns brands such as Cascadian Farm, Larabar, and Muir Glen that produce certified organic foods. Such products have helped revenues and profits turns around. After years of falling numbers, analysts predict a 5.5% increase in profits next year. Revenues have already begun to improve as Wall Street expects a 7.7% increase in sales growth for this year. Also, due to the years of decline, GIS stock trades at 12.7 forward earnings. Although this would not impress investors in a shrinking business, it begins to appear reasonable with growth returning. Also, with a five-year average P/E of 20.6, investors will likely enjoy a nice gain by waiting for the multiple to return to its long-term average. Even better for income-oriented investors, the $1.96 per share dividend yields around 4.75%. Since they have achieved a 15-year streak of dividend increases, another payout hike will likely come this year. Both consumers and investors have waited a long time for packaged food companies to embrace more natural foods. General Mills has finally made that move. With its attractive valuations and dividend yields, GIS stock should find a place among the more attractive high-dividend consumer stocks. As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post 3 Back-of-the-Shelf Consumer Stocks With Growth and Income appeared first on InvestorPlace.
“There’s definitely been a change in tone, and it’s definitely risk on,” said Matt Kennedy, a high-yield portfolio manager at Angel Oak Capital Advisors. While investors still maintain longer-term fears about economic growth and trade tensions, the near-term weakness warrants taking exposure at the margins, several Wall Street strategists said this week.
Tilray (NASDAQ:TLRY) announced on Dec. 18 that it was expanding its partnership with Sandoz, part of drug giant Novartis (NYSE:NVS). Under the deal, which caused Tilray stock to rally, Sandoz's global-sales team will market Tilray's medical-cannabis products. Four days later, Tilray announced that it was partnering with Anheuser-Busch (NYSE:BUD) to research cannabis-infused drinks. That news also created a buzz around Tilray stock. Inevitably, as cannabis companies in Canada and elsewhere stake their claims to different parts of the cannabis industry, comparisons will be made to the Gold Rush of the 1800s. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks at Risk of the Global Smartphone Slowdown And as in the days of the Gold Rush, there will be winners, losers, and posers. ### Is Tilray Stock a Winner, a Loser or a Poser? Unlike Cronos Group (NASDAQ:CRON) and Canopy Growth (NYSE:CGC), Tilray isn't interested in getting investments from large companies, as TLRY prefers to remain completely independent. "We obviously want to partner with other global pioneers and other leaders in their respective sectors," Tilray CEO Brendan Kennedy said about the partnerships. "We think it's too early to give up control of our own destiny." Those appear to be the words of someone who's going to remain CEO of an independent TLRY for a long time. Of course, it could also be PR speak for "We haven't gotten the right offer just yet." Whatever the true motivations of Tilray's CEO and board, its partnerships could prove to be very beneficial for Tilray stock over the long-term. However, it's not uncommon for big, multinational companies to blow hot and cold. Either of Tilray's partners could lose interest, pay a breakup fee, and end the partnership. Getting a big investment like the one that Canopy's gotten from Constellation Brands (NYSE:STZ) is far more permanent; it's also a sign that Canopy is serious about being a smaller piece of a much bigger pie. Tilray might believe that it's in control of its destiny at the moment, but it can lose that control very quickly. TLRY had operating losses of $34 million on $27.6 million in sales through the first nine months of its fiscal year. To win the cannabis wars, companies need deep pockets and experience. Canopy has both. Tilray doesn't. ### It's Not a Poser I don't think there's any way you can consider Tilray a poser. Anheuser-Busch and Sandoz wouldn't have signed on to these deals if they had a sniff of doubt about Tilray's bona fides. However, as InvestorPlace's Luke Lango pointed out in late December, the BUD partnership is not a huge catalyst that can move TLRY stock back into triple digits. "A $50 million commitment from AB InBev (a $130 billion company) is a drop in the ocean," Lango stated in an article published on Dec. 28. "The language in the press release also doesn't imply that AB InBev and Tilray will be 'lifetime partners,' and that stands in stark contrast to the bullish language in the Cronos and Canopy deal press releases." Tilray's CEO, Brendan Kennedy, believes that there will be three cannabis companies with $100 billion valuations, and he hopes that Tilray stock will be one of them. He also thinks that Tilray will be one of three companies in the sector with annual sales of $50 billion. That seems brash for a company that's projected to generate just $140 million of sales in 2019. Kennedy might want to tone down the rhetoric because it likely will come back to bite him in the rear end. ### The Bottom Line on Tilray Stock While Tilray has been in the news a lot in recent weeks, the company's dealmaking has done little to move TLRY stock. Tilray stock can only rise meaningfully if the company delivers better results in the fourth quarter or if it changes its philosophy and sells a chunk of its business to a company like Diageo (NYSE:DEO). Investors want results now. That's a terrible situation for companies like Tilray that have long-range plans. As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post Will Tilrayas Dealmaking Lift Tilray Stock in 2019? appeared first on InvestorPlace.
The Leuven, Belgium-based maker of Budweiser has been talking with potential advisers about the possibility of listing its Asian business, according to the people. AB InBev may seek to value its entire Asian business at around $70 billion through the share sale, though the eventual figure would depend on market demand and growth prospects for the business, the people said. Deliberations are at an early stage, and AB InBev could opt against pursuing a transaction, according to the people.