161.30 +0.94 (0.59%)
After hours: 6:15PM EST
|Bid||161.00 x 800|
|Ask||161.45 x 800|
|Day's Range||157.14 - 160.85|
|52 Week Range||150.37 - 236.62|
|Beta (3Y Monthly)||0.53|
|PE Ratio (TTM)||10.11|
|Earnings Date||Mar 27, 2019 - Apr 1, 2019|
|Forward Dividend & Yield||2.96 (1.84%)|
|1y Target Est||210.95|
Carter Worth, Cornerstone Macro, on the ultimate catch-up trade. With CNBC's Melissa Lee and the Fast Money traders, Tim Seymour, Karen Finerman, Dan Nathan and Guy Adami.
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.
Constellation Brands' presentation was led by incoming CEO Bill Newlands, Beer President Paul Hetterich among other key executives from the beer business, Bank of America's Bryan Spillane said in a research report. The overall tone from management was "positive with confidence" in its ability to continue growing the beer business and improve the struggling wine segment. Corona and Modelo are "umbrella brands" that can support product extensions.
The makers of Budweiser, Coors and other large-scale brewers are placing their bets on cannabis as a way to fight saturated markets and shifting consumer trends. Anheuser-Busch InBev, Molson Coors and Corona brewer Constellation Brands have responded by buying up fast-growing craft brews. Anheuser-Busch's 2011 purchase of Chicago's Goose Island is one of the most emblematic examples of this strategy, which has helped big brewers maintain revenue and profit steady.
# Constellation Brands Inc ### NYSE:STZ View full report here! ## Summary * Perception of the company's creditworthiness is negative * Bearish sentiment is low * Economic output in this company's sector is expanding ## Bearish sentiment Short interest | Positive Short interest is extremely low for STZ with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting STZ. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The net inflows of $6.77 billion over the last one-month into ETFs that hold STZ are not among the highest of the last year and have been slowing. ## Economic sentiment PMI by IHS Markit | Positive According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is strong relative to the trend shown over the past year, and is accelerating. ## Credit worthiness Credit default swap | Negative The current level displays a negative indicator. STZ credit default swap spreads are at their highest levels for the past 3 years, which indicates the market's more negative perception of the company's credit worthiness. Please send all inquiries related to the report to email@example.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Constellation Brands (STZ) closed at $159.85 in the latest trading session, marking a -0.42% move from the prior day.
More importantly, alcohol consumption will only continue to rise along with the wealth of society and population increases around the world. Constellation Brands Inc. (STZ) is on sale, trading at discounts to its earnings, book, sales and cash flow multiples. Warning! GuruFocus has detected 8 Warning Signs with LLY.
There is no denying that 2018 was a major year for the legal cannabis industry. Last year, legal cannabis broke new ground in many ways. Several U.S. states legalized medical or recreational marijuana, as did Canada.
Rob Sands has been the CEO of Constellation Brands, Inc. (NYSE:STZ) since 2007. First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at Read More...
Tilray floated on the Nasdaq on July 15, with an initial price of $17 a share, yet quickly surged to an intraday record of $300 a share on Sept. 19, igniting concerns that key investors would cash out of their shares when the so-called lock-up expired on January 15. Tilray CEO Brendan Kennedy is also slated to give a presentation at the 2019 ICR investment conference in Orlando later Tuesday. "When we decide to distribute shares, we will do so in an orderly and deliberate manner to maximize tax-efficiency considerations for Privateer investors, while also taking into consideration potential impacts on Tilray's public float." Privateer managing partner Michael Blue said in a statement.
The Zacks Analyst Blog Highlights: Disney, United Parcel, U.S. Bancorp, Constellation and Tyson
Corrections & Amplifications Sen. Chris Coons (D., Del.) said on “Fox News Sunday”: “I don’t expect the president to capitulate. I do expect him to compromise.” In some editions Monday, a U.S. News article about the partial government shutdown incorrectly gave the second sentence of his quote as “I do expect him to negotiate.
The U.S. farm bill legalized hemp and hemp-derived cannabidiol last month, creating a rush among Canadian pot firms that were previously unable to enter the U.S. market. Canopy said Monday it’s been granted a license by New York to process and produce hemp and plans to establish a hemp industrial park in the state focused on extraction and product manufacturing.
[Editor's note: This story has been updated to reflect a recent development.] For the new year, the shares of cannabis producer Canopy Growth (NYSE:CGC) have made up some ground, going from $29 to $39. Yet they are still well off their recent highs. Consider that Canopy Growth stock is down about 32% since mid-October. Yes, it's been a wild trip, so to speak, and the fall off has also been more than just about the market correction. After all, there was some excess in the cannabis stocks, as valuations got to stratospheric levels. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Besides, the market has been getting more crowded, which could weigh on the pricing of cannabis. What's more, investors have more publicly traded stocks to choose from nowadays, such as Cronos (NASDAQ:CRON) and Tilray (NASDAQ:TLRY). * 10 A-Rated Stocks the Smart Money Is Piling Into So it's reasonable that CGC stock has been quite volatile. But despite this, I think it still represents a pretty solid way to play the cannabis market - especially for those with a long-term perspective. Here's a look at three factors to consider for the bull case: ### CGC Stock: Strong Platform Canopy Growth is one of the best positioned companies to benefit from the cannabis market. First of all, the company has a global footprint, with operations across 12 countries. Consider there are 4.3 million square feet of licensed locations and 1.3 million that are being built. Next, CGC is assembling an impressive line of brands that span areas like retail, medical and adult-use offerings. They include names like Tweed, Vert, Doja, Spectrum Cannabis and Main Street Shop. CGC has also been building up its IP portfolio, which will be crucial for differentiating itself from the competition. There are currently over 120 patent applications. And finally, CGC has been making progress with its healthcare investments. To this end, the company has 15 human clinical trials and four for animals. CGC has also developed a certification program and learning system for pharmacies. ### CGC Stock and Constellation Brands Constellation Brands's (NYSE:STZ) $4 billion investment in CGC has been a game-changer. Let's face it, when it comes to early-stage markets, there needs to be substantial resources. In the case of CGC, it will need to ramp up its infrastructure, boost marketing and pour money into R&D. But money is just one of the benefits. STZ should be a critical strategic partner that will help propel the growth of CGC. The company will provide a tremendous distribution footprint in the U.S., Mexico, New Zealand, Italy and Canada. Keep in mind that STZ owns brands like Corona Extra, Corona Light, Modelo Especial, Modelo Negra and Pacifico. What's more, the company has a proven team that understands M&A, brand building, marketing and production. ### CGC Stock: Secular Growth Opportunity The latest earnings report for CGC was a bit of a letdown, as there was actually a sequential decline on the top line. Note that the company was expected to see a lift from the legalization of recreational cannabis in Canada. But unfortunately, there were shortages and logistical issues with the launch. But such things should be temporary. For the most part, cannabis is likely to be a massive growth opportunity. Canada will certainly be a factor but the U.S. is also rapidly moving toward legalization (a recent positive was the passage of the farm bill, which took industrial hemp off the controlled substance list). Indeed, Canopy Growth stock is surging Monday as news is breaking that CGC has been granted a license to produce hemp in New York state. Specifically, CGC will establish a "Hemp Industrial Park" for the extraction and production of the now-legal substance. Here's what Chairman and Co-CEO of Canopy Growth, Bruce Linton, had to say: "Canopy Growth was founded to drive innovation within the cannabis and hemp industries. In New York we see an opportunity to create products that improve people's lives. In the process, we will create jobs in an exciting, highly profitable new industry. I applaud the political leadership at the federal and state level that has allowed today's announcement to become reality." As of this writing, CGC stock is up 9% on the news. So how big will the market get? Well, according to Cowen analyst Vivien Azer, it will reach a whopping $80 billion in the U.S. by 2030. Oh, and she also believes that CGC will see acceleration on the top line. Her forecast for fiscal 2019 is that revenues will soar by over 200% to $778 million. Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post 3 Reasons People Are Getting Excited About Buying CGC Stock appeared first on InvestorPlace.
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
Mugglehead believes this year could be a big one for marijuana edibles. With hemp recently being legalized in the U.S. and Canada expecting to legalize edibles sometime this year, there could be significant growth opportunities for cannabis stocks this year. Alkaline Water Company Inc (WTER.V) (WTER) is in prime position to take off at a moment's notice.
Constellation Brands' Guidance Cut Overshadowed Its Q3 Results (Continued from Prior Part) ## Analysts’ reactions Constellation Brands (STZ) exceeded analysts’ expectations for its fiscal 2019 third-quarter top line and earnings. However, the company’s downward revision to its fiscal 2019 earnings guidance wasn’t received well by investors or analysts. On January 9, the day the company announced its fiscal third-quarter earnings results, Cowen and Company lowered its price target for the stock to $220 from $260. Many analysts also lowered their price targets on January 10. ## Current ratings As of January 9, Constellation Brands stock has “buy” ratings from 18 out of 24 analysts (or 75%) and “hold” ratings from six analysts (or 25%). It hasn’t received any “sell” ratings. As of January 9, the 12-month average price target for Constellation Brands stock is $224.43, which reflects a potential upside of 49% over the next year. However, this average price target will decrease based on the multiple downward revisions analysts made on January 10. As of the time of writing this article on January 10, Susquehanna has cut its price target for Constellation Brands stock to $162 from $174. Wells Fargo has lowered its price target to $235 from $260, Jefferies has lowered its price target to $258 from $269, and SunTrust Robinson has lowered its price target to $165 from $180. BMO has cut its price target for Constellation Brands to $225 from $245. As of January 10, Goldman Sachs has raised its rating for Constellation Brands to a “buy” from a “neutral” but has lowered its price target to $211 from $243. Constellation Brands stock fell 29.6% in 2018. The stocks of its peers in the alcoholic beverage industry were also in the red last year. Anheuser-Busch InBev (BUD), Molson Coors Brewing (TAP), and Brown-Forman (BF.B) fell 41%, 31.6%, and 11.8%, respectively, in 2018. We’ll discuss Constellation Brands’ valuations in the next article. Continue to Next Part 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