|Bid||75.00 x 1100|
|Ask||78.00 x 1300|
|Day's Range||76.88 - 77.81|
|52 Week Range||64.55 - 117.06|
|Beta (3Y Monthly)||1.39|
|PE Ratio (TTM)||22.56|
|Forward Dividend & Yield||3.30 (4.35%)|
|1y Target Est||84.93|
Mugglehead says cannabis beverages are going to be the talk of 2019. Since securing its deal with Constellation Brands, Inc. (STZ), all eyes have been on Canopy Growth and what it plans to do in the beverages space. Recently, it also announced it would be injecting an additional CAD $30 million into Canopy Rivers Inc. (RIV.V), its investing arm.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Anheuser-Busch InBev SA/NV and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
Global brewers are unlikely winners from the trend toward temperance. , said Wednesday that its flagship brand had its best performance in more than a decade in 2018. It sold 7.7% more beer, partly thanks to demand for its booze-free Heineken 0.0 range.
Moody's Investors Service ("Moody's") today assigned an A3 rating to Altria Group Inc.'s ("Altria") USD senior unsecured note offering. Altria's A3 rating is supported by its market position as the largest tobacco company in the United States by sales, its top brands, and its solid and expanding investment portfolio of tobacco and tobacco related products. It also reflects Altria's strong and stable cash flow, underpinned by the relatively inelastic nature of tobacco demand, with positive price/mix continuing to offset volume declines.
Moody's Investors Service ("Moody's") today assigned an A3 rating to Altria Group Inc.'s ("Altria") Euro senior unsecured note offering. Altria's A3 rating is supported by its market position as the largest tobacco company in the United States by sales, its top brands, and its solid and expanding investment portfolio of tobacco and tobacco related products. It also reflects Altria's strong and stable cash flow, underpinned by the relatively inelastic nature of tobacco demand, with positive price/mix continuing to offset volume declines.
NEW YORK, Feb. 11, 2019 -- In new independent research reports released early this morning, Capital Review released its latest key findings for all current investors, traders,.
Xavier Brun is the head of European equities at Trea Asset Management, a Spanish investment house that manages 4.6 billion euros. In his 2018 annual commentary, Brun called the year an "obscured" one, saying no one could tell what would happen next. Warning! GuruFocus has detected 2 Warning Signs with RL.
After stirring up controversy with its Super Bowl ad criticizing competitors for using corn syrup, Bud Light is backtracking.
Smoking Pot Maybe Makes More Sperm, Babies, Says Fertility Study of 662 Men Having trouble conceiving? Relax, smoke a joint. It can’t hurt, and may actually help, says a new study of 1,143 semen samples from 662 men who attended a fertility clinic between 2000 and 2017. Those who admitted using marijuana turned out to […] The post Market Morning: Cannabis On Sperm Count, JCPenney Appliance Axe, Dems Like Beer Tax Cuts appeared first on Market Exclusive.
Constellation Brands owns a near 40% stake in cannabis company Canopy Growth, but as Canopy CEO Bruce Linton explains, that almost makes his firm free for Constellation shareholders.
It might seem like Constellation Brands (NYSE:STZ,STZ.B) stock simply was due for a pullback. STZ stock had been one of the market's star performers for most of the decade: at last year's highs, Constellation Brands stock had risen over 1,000% in less than seven years. And so when the market turned south last October, STZ stock was one of the biggest victims. STZ lost over one-third of its value in about three months. A seemingly disappointing fiscal Q3 report earlier this month was the final straw, as Constellation Brands stock dropped 12% after the company cut its fiscal 2019 earnings-per-share guidance. STZ stock has already eliminated all of those losses, however. A major stock purchase by the company's outgoing CEO and strong backing from Wall Street have helped Constellation Brands stock rally. And I don't think the rally is done. Even after a 15% bounce, STZ stock still looks reasonably cheap. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 9 Best Stocks to Invest In During a Manic Market The guidance cut wasn't as big a deal as investors believed at the time. And the value of the company's large stake in marijuana producer Canopy Growth (NYSE:CGC) isn't yet showing up in its earnings numbers. The outlook of STZ stock is still positive, even after its recent rally. And while I'm not sure Constellation Brands stock can retake its 2018 highs immediately, I expect STZ to continue to rise in 2019. ### Were Earnings That Bad? From a headline standpoint, the post-earnings decline of STZ stock made some sense. The company cut its full-year EPS guidance rather sharply, from $9.60-$9.75 to $9.20-$9.30. One key reason for the cut was an increase in its interest costs due to its investment in Canopy, which lowered its EPS by roughly 25c, the company reported on its Q3 conference call. But investors and analysts already had priced that extra expense into their EPS estimates; analysts' average EPS estimate heading into the report was $9.43. The two changes to the operating business's outlook do look potentially worrisome. The company cut its operating margin guidance for its beer business by 0.5 percentage points. And the sales and profits of its wine and spirits business will decline after the company previously predicted that it would grow modestly. Both changes seem potentially worrisome. The beer sector is struggling across the board, as shown most obviously by the plunge of Anheuser-Busch InBev (NYSE:BUD). Weaker margins and slowing industry growth indicate that the profits of STZ's beer business will stall out. And if competition in the sector increases or the U.S. enters a recession, the unit's earnings could even shrink. In wine and spirits, the declines already have begun. Canopy won't contribute to profits for some time, and in the meantime incremental expenses caused by the investment will hurt Constellation's EPS. And so the reaction to the Q3 report - and the subsequent, big decline of STZ stock - seems to make some sense. Constellation Brands stock was priced for growth at $225 in October. It doesn't look like it's delivering on that growth, however. ### The Case for STZ Stock Those concerns are real. At the same time, however, it's too early to assume that STZ won't grow at some point. And investors - perhaps helped by several Wall Street defenses of STZ stock after its earnings - seem to have realized that over the past few weeks. Much of the margin pressure on the company's beer business, for instance, is coming from higher freight expenses. Those higher costs will have some impact in fiscal 2020, but at some point the cost hikes will stabilize or even pull back. In the meantime, the unit's top-line growth is hugely impressive. Depletions (the change in wholesalers' beer inventories, which more closely represents actual sales to end customers) are up 9% this year. Based on the industry's history, that figure is incredible. Depletions are down for BUD's Budweiser. They've been negative for Boston Beer (NYSE:SAM) flagship brand, Sam Adams, for some time. The depletions of Kona, Craft Brew Alliance's (NASDAQ:BREW) only product that's still growing, have increased about 7% so far this year, but the rest of CBA's portfolio has compressed. In the context of the industry, Constellation's beer portfolio, led by Corona and Modelo, still looks like the best -in-class. Meanwhile, much of the weakness of its wine and spirits business is being caused by the low end of its portfolio. Constellation's management still expect the business to generate long-term growth and higher margins, and, after the past few years, STZ deserves the benefit of the doubt. In other words, the outlook of STZ stock really hasn't changed all that much in the last few months. And in the marijuana business, CGC stock has moved higher, increasing the value of the CGC stock and warrants owned by Constellation. All told, there's still a lot to like about Constellation Brands stock. ### Has Constellation Brands Stock Run Too Far? The question is whether the 15% post-earnings bounce has captured much - or all - of the potential upside of STZ stock. I don't think that's quite the case yet. After all, STZ stock remains rather inexpensive. The stock trades at less than 19 times the midpoint of its fiscal 2019 EPS guidance. That's not a bad multiple. It's much cheaper than SAM (though I still believe that stock is overvalued, as I wrote almost a year ago). Diageo (NYSE:DEO) trades at over 20 times its forward earnings. A PE ratio of around 20 for STZ's operating business translates to a per-share value of over $180. And it's worth remembering that the marijuana business is worth nothing if an investor just uses near-term earnings to calculate the valuation of STZ stock. Yet Constellation's investment in Canopy is worth something like $6 billion, or another $30+ per share of STZ stock. Add those two together, and Constellation Brands stock looks like it could - and maybe should - be valued at $210+, suggesting upside of more than 20%. And the average analyst target price on STZ stock of just over $210 suggests that the argument makes some sense. There are valid concerns about Constellation Brands stock. The valuation of CGC stock looks a bit stretched to my eye at this point. The beer business may be further disrupted. A recession could hit Constellation's earnings. And the company's growth is slowing compared with the impressive results seen earlier this decade. But STZ stock could still rally further. And for investors who like the long-term outlook of the beer and spirits space, even after a 15%+ bounce, Constellation Brands stock looks like the cheapest, and potentially the best, play out there. As of this writing, Vince Martin has no positions in any securities mentioned. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks That Won Super Bowl Sunday * 7 High-Yield ETFs for Brave Investors * 10 F-Rated Stocks That Could Break Your Portfolio Compare Brokers The post Constellation Brands Stock Still Can Move Higher appeared first on InvestorPlace.
The Chicago-based brewery apparently decided a full page age might help end a controversy sparked by a Super Bowl ad.
Shares of Cronos Group (NASDAQ:CRON) have been on fire lately, more than doubling in less than six weeks. What's up with CRON stock and can it advance further? Cannabis stocks are very fascinating to watch. While the group certainly has long-term potential as the U.S. and the world continue to go through the legalization process, the group's stocks have become a trader's paradise. The stocks' moves are extreme, in both directions, and they're being fed purely by sentiment. These swings can be difficult for investors emotionally, as they suffer paper losses and enjoy enormous gains, but that's exactly what traders like to see. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks That Won Super Bowl Sunday So what's been happening to CRON stock? Cronos Group stock went from about $10 to about $13 after it was announced that Altria (NYSE:MO) would take a $1.8 billion stake in CRON. That news came on Dec. 7, but by Christmas, CRON stock was back down to $10. Once the market started to rebound from its Christmas Eve lows, Cronos Group stock really flew. Now, with Cronos Group stock over $21 per share, some are wondering if it's too late to buy the shares. ### Evaluating CRON Cronos Group has been in focus lately because of a few of its positive catalysts. First, cannabis stocks have regained momentum recently, with names like Aurora Cannabis (NYSE:ACB), Canopy Growth (NYSE:CGC), New Ages Beverages (NASDAQ:NBEV) and others shifting into "rally mode." Second, after a large, well-known firm takes a multi-billion stake in a company, the company's stock price usually rises. That's been the case with CRON stock. Altria is buying $1.8 billion of Cronos Group stock in exchange for 40% of its equity. It has a warrant to buy another 10% stake at a premium of about 17% to its initial purchase price. The strategic-equity investment leaves investors in a conundrum: Cannabis stocks, generally speaking, are overvalued when viewed in the context of the next 12 to 24 months. Beyond that point, though, many may feel they are undervalued compared to their potential over the next three to five years. With Altria investing $1.8 billion in the space, Constellation Brands (NYSE:STZ) spending $4 billion on its own cannabis investment, Coca-Cola (NYSE:KO) in talks with Aurora Cannabis and Tilray developing products with Anheuser-Busch (NYSE:BUD) and Sandoz, a unit of Novartis (NYSE:NVS), it's logical for investors to feel optimistic about the sector's future. ### Trading CRON Stock With all that said, it's no wonder CRON has been shooting higher. When big-name international companies are taking big stakes in a stock, demand for the shares obviously rises. When demand goes up, so does the share price. After almost hitting $22 on Friday and grazing $25 on Monday, CRON stock is clearly in demand, even though it's down around 4.5% in early-afternoon trading today. However, Cronos Group stock does look a bit toppy over $20. If investors went long CRON stock near $10, they've more than doubled their money. Taking profits is hard to do if investors think the stock could rise further. To make it easier, investors can consider using a trailing stop-loss, thereby ensuring that they will keep the bulk of their gains but giving them the opportunity to ride the stock higher. Those who aren't long CRON yet should wait. With an RSI reading of about 89, it's clear that Cronos Group stock is overbought in the short-term. That doesn't make Cronos an outright sell or a short, but investors should keep in mind that the rally is a little long in the tooth. On a pullback of CRON stock, look to see if its short-term uptrend support, depicted by the blue line on the chart, holds. If not, l am curious to see if the support level around $18, which was previously a consolidation zone, holds up. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 F-Rated Stocks That Could Break Your Portfolio * 5 Fintech Stocks to Buy As This Mega Trend Gains Steam * 10 Cold Weather Stocks to Heat Up Your Returns Compare Brokers The post Should You Buy Cronos Group Stock Right Now? appeared first on InvestorPlace.
Bud Light's advertisement about beer and corn syrup during Sunday night's Super Bowl angered corn farmers and surprised many others with the fact that beer would be linked with the sweetener. In a one-minute commercial during the National Football League championship game, Bud Light shamed competitor Molson Coors Brewing Co for its Miller Lite and Coors Light brews containing corn syrup.
It's no secret - Super Bowl ads have become almost as (if not more) popular as the game itself. The much-coveted Super Bowl LIII ad spot cost companies a cool $5.25 million for a 30-second ad this year, according to CNBC. Researchers have long puzzled over the impact of Super Bowl commercials on the brands' stock prices the following Monday.
Younger alcohol drinkers are more health-conscious and want less sugar, alcohol and calories in their brews. At the same time, they want more choices, including hard seltzer waters and no-calorie beverages. Other interests that could create growth in the sector include the growing buzz around CBD- and cannabis-infused beverages and alcohol-free beer, the analyst said.
After years of swallowing up beer brands and loading up on debt, Anheuser-Busch InBev SA is looking to slim down and exploring a stock-market listing of its Asia business. The world’s largest brewer has appointed JPMorgan Chase & Co. and Morgan Stanley to work on a potential initial public offering, according to a person familiar with the matter. The move, reported earlier by Bloomberg News, comes as the Budweiser brewer focuses on paying down debt amassed after a series of deals, including the $100 billion-plus takeover of global No. 2 brewer SABMiller PLC. AB InBev hasn’t been keeping pace with its internal targets for paying down debt from the deal, according to other people familiar with the matter.
Bud light may have had one of the most popular ads of the Super Bowl, but not everyone was a fan. The company is facing backlash after its commercials mocked Miller Lite and Coors Light for using corn syrup in their beers. Yahoo Finance's Jen Rogers, Myles Udland and Dan Roberts discuss.
Bud Light has backtracked from its Super Bowl ads criticizing its competitors about using corn syrup in its products. Yahoo Finance's Dan Roberts talks with Julie Hyman and Adam Shapiro.