|Bid||380.00 x 1200|
|Ask||386.74 x 800|
|Day's Range||383.01 - 388.92|
|52 Week Range||239.37 - 444.65|
|Beta (5Y Monthly)||0.60|
|PE Ratio (TTM)||38.90|
|Earnings Date||Feb 17, 2020 - Feb 23, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||402.25|
Millennials are putting a cork in their wine habit. U.S. wine sales have fizzled for the first time in 25 years as young adults sip spiked seltzers and spirits, instead. The volume of U.S. wine purchases slipped 0.9% in 2019, according to alcohol industry tracker IWSR — the first drop since 1994.
Beverage giants have stumbled upon a promising range of hard seltzers, satisfying their need for product diversification as well as meeting consumer preferences.
The beer industry is made up of companies specializing in the production of beer, but which also produce other alcoholic and non-alcoholic beverages. Beverages are considered consumer staples and thus the beer industry may be considered a small part of the broader consumer staples sector.
Boston Beer's (SAM) investments in the Truly brand are likely to bolster its position in the fast-growing hard seltzer category. However, costs and margin woes are clouding its growth potential.
Constellation Brands Inc. said it will make its biggest-ever single-brand investment to launch its Corona brand hard seltzer this spring — $40 million. Corona hard seltzer will come in four flavors: tropical lime, mango, cherry and blackberry lime. Retailers have already made space on the shelves for the new brand, said William Newlands, Constellation’s chief executive officer, who talked about the launch during the Wednesday earnings call.
Amid an overall bull market, many stocks that smart money investors were collectively bullish on surged in 2019. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 57%. Our research shows that most of the stocks that smart money likes historically generate strong risk-adjusted returns. That's why we weren't […]
Apparently, beer is a bear market.After dominating the U.S. beverage market, beer sales have fallen flat -- all as consumers opt for alternatives. For example, craft beer sales were up 7% in 2018 to $27.58 billion, giving it a 24.2% share of the $114.2 billion U.S. beer market. That's up from 23.4% in 2017.The bearish trend can also be attributed to millennials, who are less likely to drink beer, and are more likely to drink wine or spirits when they do consume alcohol.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAdditionally, this shift can also be attributed to cannabis. "The emergence of legal cannabis in certain U.S. states and Canada may result in a shift of discretionary income away from our products or a change in consumer preferences away from beer," once noted Molson Coors (NYSE:TAP).It is part of the reason Constellation Brands took a 9.9% stake in cannabis giant, Canopy Growth Company (NYSE:CGC)."We believe alcohol could be under pressure for the next decade, based on our data analysis covering 80 years of alcohol and 35 years of cannabis incidence in the US," analysts at Cowen noted. "Since 1980, we have seen 3 distinct substitution cycles between alcohol and cannabis; we are entering another cycle." * 7 Stocks to Buy to Get 2020 Started the Right Way However, as beer companies wake up to changing demands for cannabis and health-conscious beverages, I'm spotting quite a few big opportunities. Here are three beer stocks to look into before the New Year. Beer Stocks to Buy Before 2020: Anheuser-Busch InBev (BUD)Source: legacy1995 / Shutterstock.com One of the biggest beer companies in the world got an icy reception in the latter part of 2019.In fact, Anheuser-Busch InBev (NYSE:BUD) lost 23% of its value after weak sales in China became a drag on earnings, and after cutting its forecast for the year ahead. However, it appears the worst has been priced into the stock."While the quarter left much to be desired, management believes the company is well positioned for accelerating revenue growth over time. With the addition of SAB Miller, Anheuser-Busch is more diversified than ever," says Motley Fool contributor, John Ballard. "Emerging markets make up about 70% of the company's total volume, which holds a lot of opportunity to bring in new consumers for the largest beer maker in the world, with 26% global market share."Plus, BUD is well-diversified in cannabis. In late 2018, it announced a $100 million cannabis deal with Tilray (NASDAQ:TLRY) to develop cannabis-infused, non-alcoholic drinks. Not only is BUD well-positioned for international growth, it is positioning itself among a health conscious, cannabis-loving generation. Plus, Guggenheim analyst Laurent Grandet reiterated a "buy" on BUD. While he argues earnings weren't as strong as he would have liked, he still believes BUD has "one of the most attractive growth algorithms in the space with continued optionality for M&A given the recently completed IPO in Asia-Pacific." Boston Beer Co. (SAM)Source: LunaseeStudios / Shutterstock.com Since the year began, Boston Beer Co. (NYSE:SAM) has been one of the most explosive alcohol stocks on the market. Between January and December, shares have run from $231.57 to nearly $385 with plenty of upside remaining.UBS just upgraded the SAM stock to a buy from a neutral rating, with a new price target of $440 -- all thanks to strong growth in the company's seltzer business. In fact, sales of Boston Beer's Truly brand of hard seltzer are so hot, the company can't handle the demand; That's not a fad either.White Claw's hard seltzer is already seeing a nationwide shortage of its drinks in the U.S. As Americans seek out drinks with fewer calories and less sugar, they're turning to hard seltzers. White Claw and competitor Truly both have around 100 calories per can, for example. * 7 Momentum Stocks Refusing to Slow Down Even Anheuser-Busch launched its line of seltzer. "These new products can help those companies, such as Anheuser-Busch, 'buffer those losses,'" Beth Bloom, associate director of US Food and Drink for Mintel has said, because beer sales are declining. Constellation Brands (STZ)Source: ShinoStock / Shutterstock.com Constellation Brands (NYSE:STZ) shares are up nicely from a 2019 low of $150.37 to around $200 in October with plenty of volatility in between.While its biggest beer brands -- including Modelo and Corona -- are still enjoying fast growth, STZ's diversification into the wine business should also bolster higher highs for the stock. For example, it just announced a deal with E&J Gallo Winery to buy more than 30 wine and spirit brands along with six wine-making facilities in the U.S. It is also launching a Corona-branded spiked seltzer mid-2020. Because of that and once the cannabis boom gets back underway, I strongly believe Constellation can be a $250 stock before long.As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy to Get 2020 Started the Right Way * 10 Best ETFs for 2020: The Competition Is Stacked Full of Potential * 4 Gold Stocks to Buy as the Yellow Metal Surges The post 3 Beer Stocks to Own Heading Into New Year 2020 appeared first on InvestorPlace.
Flowers Foods (FLO) is well poised for 2020, courtesy of Project Centennial, yielding buyouts, favorable price/mix and other key growth strategies.
A new report estimates online alcohol sales in the U.S. will soar by nearly five times to $13.4B by 2024, creating major opportunities for e-commerce startups to cash in.
Archer Daniels' (ADM) Readiness initiative and three strategic pillars - optimize, drive and growth - will likely drive performance in the next year.
Coca-Cola (KO) partners with Hard Rock International to provide beverages in all cafes globally. Also, focus on key brands and innovations bode well.
Conagra's (CAG) second-quarter fiscal 2020 results reflect gains from Pinnacle Foods, partly countered by the divestiture of Sold Businesses.
Monster Beverage's (MNST) momentum in the energy drinks category is commendable. Also, its efforts to innovate and launch products are encouraging.
Procter & Gamble (PG) is benefiting from its focus on product improvement as well as packaging and marketing initiatives. Also, the company is on track with its cost-saving plans.
Efforts to revive Samuel brand, robust depletion and shipment growth along with the three-point growth plan are likely to keep Boston Beer's (SAM) solid show on.
Sysco's (SYY) focus on key growth strategies bodes well. The company's U.S. Foodservice segment has been performing well for quite some time.
Pilgrim's Pride (PPC) is benefiting from strength in the Prepared Foods unit. Further, the company's zero-base budgeting and positive impacts from acquisitions bode well.
Kellogg (K) is benefiting from robust organic sales trend. Further, the company is on track with building brands and expanding presence in the emerging regions.
So-called "sin stocks" often provide higher returns. If some investors simply won't buy a stock for ethical or moral reasons, that in turn lowers the current share price and provides an opportunity for those willing to own that same stock.It's possible, though not guaranteed, that sin stock returns will be higher in an era of ESG (environmental, social and governance) investing. As AQR's Clifford Asness noted back in 2017, the very goal of ESG investing actually is to lower expected returns. That in turn reduces that company's cost of capital and makes projects more profitable. Conversely, sin stocks have a higher cost of capital, an impediment to the business but somewhat counterintuitively a boost to returns for those willing to invest in those names.That said, individual sin stocks have much the same risks as the rest of the market. In some cases, the risks are greater given tighter regulation and changing consumer behavior. Altria (NYSE:MO) is a great example: what not that long ago was the greatest stock ever declined over 40% before a recent bounce.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 'A'-Rated Stocks to Buy Before 2020 These three sin stocks could follow that same trajectory in a worst-case scenario. And so investors probably should look elsewhere in the group, both during the holiday season and after it. Boston Beer (SAM)Source: LunaseeStudios / Shutterstock.com To be fair, I've been wrong on Boston Beer (NYSE:SAM) so far. SAM stock has nearly doubled since I recommended against it nearly two years ago. And there is a lot to like here. Boston Beer's Truly is a leader in the fast-growing hard seltzer space. The acquisition of Dogfish Head in May added to the beer portfolio. And the flagship brand has a solid reputation and nationwide reach.Still, I'd be careful, at least, owning SAM stock above $350. Valuation is questionable, at over 30x forward earnings. Overall beer consumption, even for craft beer, is declining on a barrel basis. Wine and spirits are taking share. Hard seltzer could be a growth opportunity -- or it could be something of a fad.There are risks here, and SAM already has pulled back from August highs. I wouldn't be at all surprised if that pullback extends. Anheuser-Busch InBev (BUD)Source: legacy1995 / Shutterstock.com Anheuser-Busch (NYSE:BUD) already has seen its pullback. BUD stock touched a six-year low late last year. Shares rallied from those levels, but have reversed and trade at a nine-month low.From a near-term standpoint, BUD seems particularly risky. Shares have breached support at $80, and even with some modest rallies in recent sessions there's room for the stock to give way.From a long-term standpoint, Anheuser-Busch InBev stock too looks dangerous. At 17.3x forward earnings, BUD stock hardly looks cheap. Sales are declining as craft beer continues to take share in the U.S. A 2.6% dividend yield is attractive, but Anheuser-Busch InBev halved its dividend last year and may cut it again as it tries to manage a significant debt load. An $11 billion asset sale to Asahi (OTCMKTS:ASBRF) has been held up by regulators, a potential stumbling block to reducing borrowings that total roughly $100 billion at the moment. * These 7 S&P 500 Stocks Will Deliver a Repeat Performance in the Next Decade There are real risks here -- and real reasons why BUD stock has pulled back so sharply. It's not hard to see echoes of Kraft Heinz (NASDAQ:KHC), another company that took on too much debt and then had to deal with significant, secular, changes in its industry. Simply put, Anheuser-Busch is going in the wrong direction right now, and the same likely will hold true for BUD stock. Canopy Growth (CGC)Source: Jarretera / Shutterstock.com To be fair, it's possible that Canopy Growth (NYSE:CGC) will rally during the holidays and into 2020. As I wrote just last week, "Cannabis 2.0" products have the potential to help revenue next year. The arrival of a new chief executive officer from Constellation Brands (NYSE:STZ,NYSE:STZ.B), who owns over 40% of the company, has sparked hopes for a takeover. CGC stock already has bounced, yet it and other cannabis stocks trade significantly off early 2019 highs.That said, I'm hardly sold on CGC stock at the moment. A new CEO may help, but execution has been poor for some time now. Pricing pressure in Canada should pressure margins. Barring movement in the U.S., opportunities outside the market still seem limited.And for investors betting on a cannabis rebound, there are other, potentially more attractive options. Aphria (NYSE:APHA) has done an excellent job this year under CEO Irwin Simon, and looks like the pick in the sector. Cronos (NASDAQ:CRON), like Canopy, has a fortress balance sheet and has avoided wasting capital on potentially unprofitable production assets.I'm not recommending a short of CGC, or even necessarily that owners sell the stock. But for those who believe the cannabis sector has hit a bottom, there seem to be better places to put new money than Canopy Growth stock.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 'A'-Rated Stocks to Buy Before 2020 * 7 of the Decade's Fastest-Growing Dividend Stocks * 5 Cheap Dividend Stocks With High Yields And Annual Increases The post 3 Sin Stocks to Avoid During the Holidays appeared first on InvestorPlace.