|Bid||187.50 x 1000|
|Ask||194.51 x 1000|
|Day's Range||192.61 - 198.50|
|52 Week Range||150.37 - 228.49|
|Beta (3Y Monthly)||1.12|
|PE Ratio (TTM)||48.35|
|Earnings Date||Jan 7, 2020 - Jan 13, 2020|
|Forward Dividend & Yield||3.00 (1.56%)|
|1y Target Est||226.95|
PepsiCo (NASDAQ:PEP) announced its third-quarter results on Oct. 4. They were healthy enough that I've put the beverage and snack food company on my list of seven beverage stocks to buy now. But before I get into the seven names on my list, I thought I'd explain why I'm so high on beverage stocks. The truth is, a lot of interesting stuff is happening in the beverage world at the moment, not the least of which is a fight by traditional beverage makers, non-alcoholic and alcoholic alike, to get into cannabis-infused drinks. The payoff could be enormous for those brands that resonate with the public. InvestorPlace - Stock Market News, Stock Advice & Trading TipsFurthermore, long-time partnerships seem to be fracturing as larger beverage businesses look to find growth wherever they can. The gloves have come off.Big or small, you've got to have a vision for sustainable growth or you're going to be left in the dust. * 10 Lithium Stocks to Buy Despite the Market's Irrationality Here are the seven beverage stocks I believe will do just that. Beverage Stocks to Buy: PepsiCo (PEP)Source: suriyachan / Shutterstock.com PepsiCo released its Q3 2019 results Oct. 3 and they were very healthy. On the top line, Pepsi had organic growth of 4.3%. In terms of profits, Pepsi generated $2.86 billion in operating profits in the quarter, $11 million higher than the same quarter a year earlier. This is despite PEP spending $2 billion on its business through the first nine months of the year and an estimated $4.5 billion for the entire fiscal year. "While adverse foreign exchange translation negatively impacted reported net revenue performance, organic revenue growth was 4.3% in the quarter," stated CEO Ramon Laguarta. "We are making good progress against our strategic priorities and our businesses are performing well … Given our performance year-to-date, we now expect to meet or exceed our full-year organic revenue growth target of 4%."One of the big reasons for its success so far in 2019 are the sales from Bubly, the sparkling water brand it launched in 2018. According to Bloomberg Intelligence, it is taking market share from LaCroix, which saw its sales fall by 14% in the four weeks ended July 14, compared to a 96% increase for Bubly in the same period. Pepsi is investing in the brand and LaCroix is feeling the heat.Over the past year, Bubly has generated more than $170 million in revenue and grabbed 7.7% of the sparkling water market in short order. With free cash flow expected to be $5 billion or more in 2019, look for the company to buy back more than $3 billion of PEP stock. Canopy Growth (CGC), Constellation Brands (STZ)Source: Shutterstock If you blinked, you probably missed the news Oct. 2, that Canopy Growth (NYSE:CGC) was buying 72% of BioSteel Sports Nutrition, a company that specializes in sports nutrition and hydration products for high-performance athletes like Dallas Cowboy running back Ezekiel Elliott. With an option to buy the remaining 28% of BioSteel in the future, I see this acquisition as a no-brainer for the Canadian cannabis company backed by Constellation Brands (NYSE:STZ). When the news first broke, I was all over the story because, unlike the $600 million Canopy spent on Hiku, BioSteel has "big" written all over it.Not only does Canopy get a beverage and nutrition company that it could grow on its own, separate from its cannabis business, but BioSteel is also a great vehicle to roll out CBD-based products to athletes and non-athletes across North America. The CBD industry is projected to grow to $17.3 billion over the next seven years. Add these drinks to the CBD-infused chewables and chocolates and you've got a recipe for significant revenue generation. * 10 Winning Stocks to Buy and Stick With for the Long Haul Take Constellation's distribution reach, Canopy's understanding of cannabis and hemp and BioSteel's market leadership, and this investment seems like a slam dunk. Boston Beer (SAM)Source: LunaseeStudios / Shutterstock.com The good news for owners of Boston Beer (NYSE:SAM) stock is that it's up 54% year-to-date through Oct. 8. The bad news is that it was as high as $445 in early September. Not to worry. Just when you think CEO and founder Jim Koch is down and out, he figures out how to keep Boston Beer growing. Are you familiar with White Claw? It's the leading hard seltzer in the U.S., brought to consumers by the same people who sell Mike's Hard Lemonade, and outselling Budweiser and every craft beer in the process. A fad, you say. Don't tell that to Koch. He's got Truly, the second-place brand in terms of market share at 30%, half White Claw's, but still pretty darn impressive. On Oct. 4, thanks to the company finding the internal capacity to produce Truly in-house instead of using third-party co-packers, UBS Group analyst Sean King upgraded his rating on the stock from $305 to $390. "Truly's stellar growth in fiscal 2019 failed to translate into meaningful earnings growth year-to-date as the company's heavy reliance on co-packers weighed on margins," King wrote. "We now believe that this headwind will ease into fiscal 2020 with greater internal capacity coming. The extent of vertical integration and outlook for Truly growth will be key determinants of earnings growth for Boston Beer in fiscal 2020." Here's what I know. I live on Canada's east coast. You can't find either product on store shelves. Down in the U.S., it's estimated that only 20% of restaurants and bars carry White Claw indicating just how much business is still on the table.I see $400 again soon. Starbucks (SBUX)Source: monticello / Shutterstock.com What would a list of beverage stocks be if it didn't contain the world's biggest coffee company.Starbucks (NASDAQ:SBUX), like Boston Beer, always seems to find a way to reignite growth at precisely the right time, and in doing so, keep the SBUX share price moving higher. In 2019, it's up 34% YTD, including dividends. As if you needed another reason to own SBUX stock, I've come across a real doozie. According to Schaeffer's Investment Research, Starbucks is one of only two S&P 500 stocks that have moved higher in the fourth quarter for 10 consecutive years, averaging a Q4 return of 10.6%.While there are other S&P 500 stocks that have better average returns in the fourth quarter -- Delta (NYSE:DAL) has an average return of 16.6%, delivering positive returns in nine out of the last 10 years -- its consistency is important as we approach the 11th anniversary of the latest bull market. Sure, the company's admission that its 10% growth rate forecast probably won't carry into 2020 due to some one-time, tax-related issues but unless people stop drinking coffee, it will continue to do just fine. Down from its 52-week high of $99.72 reached in July, any future weakness should be met with increased buying. * 7 'A'-Rated Stocks to Buy for the Rest of 2019 As beverage stocks go, Starbucks is a must-own. LVMH (LVMUY)Source: lentamart / Shutterstock.com Most people wouldn't consider luxury goods conglomerate LVMH (OTCMKTS:LVMUY) a beverage company. However, given the "MH" in its name stands for Moet-Hennessy, which merged with Louis Vuitton in 1987 to form LVMH, I would beg to differ. If there were a consumer goods company that is too big too fail, I would go with LVMH every day of the week and twice on Sunday. That's why I recommended LVMUY stock in September as part of my article about one-stock portfolios to own. As I said then, LVMH generates almost $53 billion in annual revenue from more than 70 different brands including makers of wine, champagne, cognac, and whiskey. In the first half of 2019, its Wines & Spirits group generated 6% organic growth, with its cognac and spirits business accounting for 61% of sales and champagne and wine the remaining 39%. Although LVMH believes its Wines & Spirits group is facing a difficult business environment, Hennessey managed to grow volumes by 8% in the first six months of the year thanks to strong sales of its VS and VSOP cognac. It pays to own quality. Molson Coors (TAP)Source: Drew Stephens via FlickrMolson Coors' (NYSE:TAP) Canadian division opened a new brewery in Chilliwack, British Columbia, in September. It was built to replace its Vancouver brewery that was sold in 2015. Three years in the making, it's a $300-million facility located on 36 acres, and employing 100 people. More importantly, it is the company's most modern brewery, that will reduce energy and water use by 20% and 40%, respectively. In terms of capacity, it will be able to brew more beer in a year than all of the craft beer sold in B.C. in its most recent fiscal year. While the recent resignation of Hexo (NYSE:HEXO) CFO Michael Monahan has some worried about the cannabis company's future, MKM Partners analyst Bill Kirk remains bullish about its stock. Kirk rates it a buy with a target price of $9.02. I mention Hexo because it is the company that Molson Coors Canada has partnered with to produce cannabis-infused drinks for the Canadian market. Named Truss Beverages, Molson Coors owns 57.5% with Hexo owning the rest. Molson Coors believes that the Canadian cannabis beverages market could be worth between $1.5 billion and $3.0 billion. With legalization of cannabis-infused drinks to take place on Oct. 17 and allowing for another 60 days to get the appropriate licensing, Truss should have products in stores as early as mid-December. * 7 Funds to Buy If the Market Turns Sour Molson Coors might be a beverage underdog, but if you can afford to risk a few dollars, its gamble on cannabis that might well pay off handsomely. Coca-Cola (KO)Source: MAHATHIR MOHD YASIN / Shutterstock.com I didn't want to pick Coca-Cola (NYSE:KO) when Pepsi's already on the list but the fact that it's launching its own energy drink in the U.S. makes it noteworthy.Investors already knew about Coca-Cola Energy because the line of drinks has already launched in Spain, Hungary and 25 other markets in Europe and Australia. In addition to Coca-Cola Energy, the lineup includes a zero sugar version, a cherry flavor and a zero sugar cherry offering. Coca-Cola already had a partnership with Monster Beverage (NASDAQ:MNST) that was signed in 2015 that gave Coke a minority position in the energy drink maker and made Coca-Cola its preferred distribution partner. In addition, Coca-Cola transferred its energy drink assets to Monster and Monster gave Coke its non-energy business. It was a marriage made in heaven until Coke decided it wanted back in the energy drink game. The two parties went to arbitration in October 2018. The arbitration tribunal ruled in July that Coke could continue to sell Coca-Cola Energy because it fell under the Coca-Cola brand name and didn't violate the non-compete clause. Coca-Cola has brought a number of interesting products in the past year and Coca-Cola Energy is certainly one of them. Add to this its entry into the coffee market through Costa Coffee and its growth engine might rev up its share price. At the time 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 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post 7 Beverage Stocks to Buy Now appeared first on InvestorPlace.
On Thursday, Canopy Growth announced that Constellation’s CFO David Klein will be the new chairman of its board effective immediately.
Canopy Growth named Constellation Brands CFO as its chairman. Hexo pulled sales guidance. Canopy Growth and Hexo hit record lows. Marijuana stocks fell.
Hedge funds and large money managers usually invest with a focus on the long-term horizon and, therefore, short-lived dips or bumps on the charts, usually don't make them change their opinion towards a company. This time it may be different. During the fourth quarter of 2018 we observed increased volatility and small-cap stocks underperformed the […]
Cannabis producer Canopy Growth Corp said on Thursday it appointed top shareholder Constellation Brands Inc's chief financial officer, David Klein, as chairman of its board. Klein will take over, effective immediately, from interim chairman John Bell, who will continue as a director on the board. In July, Canopy fired its co-founder, co-Chief Executive Officer and Chairman Bruce Linton after Constellation expressed disappointment over the company's financial performance.
Klein will take over, effective immediately, from interim chairman John Bell, who will continue as a director on the board. In July, Canopy fired its co-founder, co-Chief Executive Officer and Chairman Bruce Linton after Constellation expressed disappointment over the company's financial performance. Bell was appointed as the interim chairman after Linton's ouster.
Canopy Growth Corp. said Thursday it named David Klein as its chairman of the board, effective immediately, succeeding Interim Chairman John Bell. Klein is currently chief financial officer of Constellation Brands Inc. , which is the Canada-based cannabis company's largest shareholder with about 36% of the shares outstanding, according to FactSet. Klein's specialty is corporate strategy, finance and accounting, mergers and acquisitions, technology and investor relations. "David's leadership has been extremely valuable to our board at this pivotal moment in Canopy Growth's history, and I am confident that he will continue to add value in his new capacity as board chair in the years ahead," said Chief Executive Mark Zekulin. Canopy's U.S.-listed shares, which slumped 1.5% in premarket trading, have shed 15% year to date through Wednesday, while the ETFMG Alternative Harvest ETF has dropped 20% and the S&P 500 has gained 16%.
Molson Coors (TAP) gains from the solid brand portfolio and premiumization efforts as well as cost-saving initiatives and innovations. But soft beer demand and higher input costs remain deterrents.
Despite the losses, Constellation Brands still has an optimistic outlook for Canopy Growth. The company is happy with Canopy Growth’s progress.
Canopy Growth stock has been praised by many analysts. Here’s what chart analysis shows about buying this marijuana stock right now.
Cannabis Countdown: Top 10 Marijuana Stock News Stories of the Week Welcome to the Cannabis Countdown . In this week’s rendition, we’ll recap and countdown the top 10 marijuana stock news stories for ...
Constellation Brands Inc. stock fell 7% Thursday to lead S&P 500 decliners, after the distributor of Corona beer swung to a big loss in its fiscal second quarter as it booked charges related to an investment in a Canadian cannabis company.
VICTOR, N.Y., Oct. 04, 2019 -- Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading beverage alcohol company, announced today that Robert Hanson, president, wine and.
Investors were trickling out of the Constellation Brands, Inc. (NYSE: STZ) party on Thursday and Friday, but sell-side analysts urged them to relax, pop open a cold one, and stick around with the stock. Wells Fargo’s Bonnie Herzog reiterated an Outperform rating and $235 price target on the stock. Bank of America analyst Bryan Spillane reiterated a Buy rating while lowering the price target from $221 to $220.
She Won’t Go Like a Lam To the Slaughter Hong Kong’s Beijing-appointed chief executive Carrie Lam has invoked emergency powers that allow her to, among other things, insist that protesters stop wearing masks, so as to be able to identify them later in order to arrest them. The protesters who are wearing the masks aren’t […]The post Market Morning: Lam Cracks Down, Alibaba FlyZoo Hotel, Seltzer Spiked, HP Cuts appeared first on Market Exclusive.
Things haven't looked great for Canopy Growth (NYSE:CGC) recently, and CGC stock has been on the ropes for the last six months. Worse, coverage of their troubles is suggesting there's something deeper to worry about. Source: Jarretera / Shutterstock.com InvestorPlace contributor Ian Bezek recently suggested that Canopy Growth is rudderless and sinking without former co-CEO and co-founder Bruce Linton's involvement in the company. Bezek further suggested that Canopy has been abandoned by its major partner, Constellation Brands (NYSE:STZ), a dual reality that is, most certainly, bad news for owners of CGC stock. That's one way of looking at Linton's departure and Constellation Brands' desire to bring financial and operational discipline to a company that had gotten ahead of itself. InvestorPlace - Stock Market News, Stock Advice & Trading TipsI, on the other hand, see Constellation Brands doubling down on its investment in Canopy Growth. Here's why. Cannabis-Infused DrinksWe are mere days from the Canadian legalization of cannabis-infused drinks, edibles, oils, tinctures, concentrated extracts, and topical products on Oct. 17. That said, these products won't be available for a minimum of 60 days, and if the initial legalization in 2018 is any indication, the supply should be somewhat constrained until early 2020. * 7 Important IPO Stocks to Watch for the Long Run The kind of products that I would actually use is finally hitting the Canadian market. People in their 40s or 50s, who've never smoked in their lifetime, have no desire to start now simply because they could get high. The addition of edibles and drinks will be the tipping point for the Canadian cannabis industry. So, the announcement Oct. 2 that CGC acquired a 72% stake in Toronto-based sports drinks maker BioD+Steel Sports Nutrition Inc., with the option to buy the rest at some point in the future, was a very big deal for two reasons. A Great Company in a Fantastic MarketFirst, it gets Canopy into the very competitive sports nutrition and hydration market, with a company whose customers, its press release suggests, include "70% of the teams in North America's four major sports leagues."Connor McDavid, Brooke Henderson, Wayne Gretzky, Eugenie Bouchard, and Dallas Cowboys star running back, Ezekiel Elliott, are all brand ambassadors. "BioSteel has a reputation for being a best-in-class provider of natural sports nutrition products," commented Mark Zekulin, CEO, Canopy Growth. "This acquisition allows us to enter the sports nutrition space with a strong and growing brand as we continue towards a regulated market of food and beverage products that contain cannabis. We view the adoption of CBD in future BioSteel offerings as a potentially significant and disruptive growth driver for our business."The beauty of this acquisition is that it doesn't need to enter the CBD market for the deal to be a long-term positive for CGC. However, you know it's headed in that direction. BioSteel co-founder and co-CEO Michael Cammalleri is a CBD user. He understands the acceptance of CBD-based products by both professional sports leagues and consumers is changing for the positive as people realize these products provide more effective pain relief while minimizing the negative effects of prescription painkillers. Canopy and Constellation can take BioSteel to the next level. A Deal in Constellation's WheelhouseIf you think Constellation is about to run away from its multi-billion-dollar investment, I don't believe you understand why Constellation Brands got involved with Canopy in the first place.Former CEO Rob Sands, who's now Executive Chairman, knew that the addition of a fourth revenue stream to complement its beer, wine, and spirits portfolio was a logical extension of its business. As a result, the aggressive entrepreneur first bought a small stake in Canopy in 2017, followed by a $4-billion bet less than a year later, giving it 55% of the business. "Canopy is Constellation's arm for participation in the cannabis sector," Sands explained in a March 2019 interview with CNN Business.In August, I suggested that Canopy and Constellation, in their search for a new CEO, look to Mark Parker of Nike (NYSE:NKE), Laura Alber of Williams-Sonoma (NYSE:WSM), and Rosalind Brewer of Starbucks (NASDAQ:SBUX) as potential candidates. Personally, I'd love to see Brewer land the job, but she's likely got her hands full with Starbucks, not to mention she's likely the top candidate to replace CEO Kevin Johnson should he ever decide to step aside. In September, Canopy chairman John Bell said that the company would have a new CEO named by the end of the year. Current CEO Mark Zekulin has already said he would leave the company once a successor is named. I don't know who it will be but you can bet Constellation CEO Bill Newlands will have had a big say in the eventual winning candidate. However, the addition of BioSteel should be a nice enticement for anyone considering taking the top job. If Constellation were retreating from its investment, there is no way the BioSteel deal would have gotten done. It's more likely that the company's beverage experience played a big part in the negotiations beginning in the first place. The Bottom Line on CGC StockIt's easy to get cynical about large companies and their desire to please shareholders before all else. The truth, however, is that Constellation Brands has a fiduciary responsibility to those shareholders to manage the company's assets and operations in the most responsible way possible, a role that Newlands and Sands take very seriously. As Bezek commented, the fact that Linton paid $600 million in stock for Hiku, which generates very little revenue for the company, is a big reason why a little more oversight isn't a bad thing. Constellation Brands hasn't forgotten about its investment in Canopy Growth. BioSteel is a good reminder of that. At the time 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 * 7 Important IPO Stocks to Watch for the Long Run * 7 High Volatility Stocks to Buy as the Market Rebounds * 7 Dow Jones Industrial Average Stocks to Sell The post Constellation's Involvement Still Is the Best Hope for CGC Stock appeared first on InvestorPlace.
Constellation Brands, Inc. (NYSE:STZ and STZ.B), a leading beverage alcohol company, today announced that Mallika Monteiro has been promoted to Executive Vice President and Chief Growth & Strategy Officer. As part of her expanded responsibilities, Monteiro will be responsible for consumer and category insights, innovation and new product development across beer, wine and spirits, as well as the company’s strategy development and business transformation functions. Monteiro will also serve as a member of Constellation’s Executive Management Committee.
Cronos Group (NASDAQ:CRON) is oversold, so there is a chance that it has a small rebound or relief rally soon, and it better. As Cronos stock continues to trend lower, a management shakeup is more likely.Source: Shutterstock Unfortunately, the likelihood of a management shakeup improving the firm's fortunes is marginal at best.It is oversold, so there is a chance that it has a small rebound or relief rally soon. Cronos just announced that it has appointed Jody Begley to the Board of Directors. He is currently senior vice president of tobacco products for Altria Group (NYSE:MO) where he oversees more than $20 billion in revenues.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYou may remember that last December Altria bought a 45% stake in Cronos for around $1.8 billion. Begley's placement onto the board is in connection with this transaction. * 7 Important IPO Stocks to Watch for the Long Run Personally, if I was currently a member of the Cronos management team, I would probably get my resume together. Sometimes additions to the board of directors lead to management shakeups and we could be about to see that here. Altria Management and Cronos StockThe management of Altira is not happy with how Cronos has performed. How could they be? It has been terrible. Since February the price of CRON stock has dropped from around $24 a share to current levels around $9.In fiscal 2018 the company posted a loss of almost $19 million, which works out to be a loss of 11 cents per share. Many analysts believe that the company will lose money again this year.Often times, when a major shareholder of a company isn't happy how the current management is performing, they place their representatives on the board. This, in turn, allows the board to make the management changes that the shareholder believes make sense. In other words, they can fire people.Does removing the CEO of a poorly performing company help to turn things around? Some are doubtful."Most companies perform no better--in terms of earnings or stock-price performance--after they dismiss their CEOs than they did in the years leading up to the dismissals" according to Margarethe Wiersema in an article in the Harvard Business Review. "Worse, the organizational disruption created by rushed firings--particularly the bypassing of normal succession processes--can leave companies with deep and lasting scars." A Look at Cronos StockRegardless, when people are losing money, they become emotional and feel as though they need to take action. Many times, in hindsight the decision didn't make sense.This could end up being a similar situation to what happened at another large cannabis grower, Canopy Growth (NYSE:CGC). In June the Board of Directors unceremoniously fired Bruce Linton, the former CEO and co-founder of the company. Canopy has been losing money and the stock has performed very poorly, so the Board thought that it made sense to force him out.Similar to how Altria made a large investment into Cronos, Constellation Brands (NYSE:STZ) made a major investment into and became a major shareholder of Canopy. It was the members of the board that were aligned with Constellation Brands that ultimately pushed Linton out.At the time of this writing Mark Putrino did not have any positions in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Important IPO Stocks to Watch for the Long Run * 7 High Volatility Stocks to Buy as the Market Rebounds * 7 Dow Jones Industrial Average Stocks to Sell The post Nothing About a Management Shakeup Improves Cronos Stock appeared first on InvestorPlace.
The producer of alcoholic beverages offers mixed technical signals, though trading volume in the shares has been diminishing this year.