169.06 0.00 (0.00%)
After hours: 5:41PM EST
|Bid||0.00 x 800|
|Ask||169.72 x 1000|
|Day's Range||165.50 - 169.37|
|52 Week Range||150.37 - 236.62|
|Beta (3Y Monthly)||0.76|
|PE Ratio (TTM)||10.65|
|Earnings Date||Mar 27, 2019 - Apr 1, 2019|
|Forward Dividend & Yield||2.96 (1.69%)|
|1y Target Est||208.45|
Investors have been celebrating a resolution to the trade stand off with China says Timothy Chubb, Girard CIO. Yahoo Finance's Adam Shapiro, Brian Cheung and Chubb discuss.
Pot stocks are soaring again. To learn more about risks and rewards of investing in marijuana stocks and ETFs, check out this Exploring ETFs video.
Constellation Brands (STZ) closed the most recent trading day at $165.73, moving -0.75% from the previous trading session.
First it was bitcoin that made investors go on a mad rush, and today, it's marijuana. Now that legalization is steadily gaining traction across the U.S., more investors than ever before are looking for ways to cash in.
Constellation Brands, Inc. (NASDAQ: STZ) shares took a hit Wednesday after the company presented at the Consumer Growth Analyst Group of New York (CAGNY) conference this week. Investors seem to be disappointed with the company’s projected earnings growth rates and the negative impact of its recent Canopy Growth Company (NYSE: CGC) investment. Constellation management said its fourth-quarter EPS will take a 10-cent hit thanks to its Canopy investment.
Some on the Street saw wisdom in Constellation Brands, Inc. (NYSE: STZ )'s cannabis play . But on Wednesday, when management guided for a 10-cent quarterly earnings hit from its Canopy Growth Corp. (NYSE: ...
Shares of Canopy Growth (NYSE:CGC) went parabolic to start 2019, as the leading Canadian cannabis company benefited from a series of industry-wide and company-specific catalysts which further illuminated a pathway towards big profits at scale. Year-to-date, CGC stock is up roughly 75%.Source: Shutterstock But stocks don't go up in straight lines forever. Indeed, CGC stock has experienced some weakness as of late. There were some margin concerns in the company's recent earnings report. There was news that the CFO is leaving the company later this year. And, there was a rare downgrade from Wall Street.All together, CGC stock currently sits about 8% off its 2019 highs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Healthy Dividend Stocks to Buy for Extra Stability This recent weakness isn't anything to be too concerned about. CGC stock had come very far, very fast and had jumped into technically overbought territory. It was due for a natural pullback. Now, it's due for some natural consolidation in the $40 range.Importantly, though, CGC stock is not fundamentally overvalued. Recent developments and quarterly numbers underscore that Canopy is on track to potentially become a $100 billion company one day. As such, the long-term potential ($16 billion market cap today) is enormous, with mitigated enough risk to warrant sticking with CGC stock for the long haul.Ultimately, recent weakness is just a bump in the road and this road will eventually take CGC stock much higher. Canopy Stock Was Due for a PullbackOne of the truest statements in the entire investment world is that stocks don't go up in straight lines forever. That which goes very far, very fast, will ultimately pull back. That doesn't say anything about the nature of the stock or the company. It's simply the theory of financial gravity -- buyers won't out-buy sellers forever.Recent weakness in Canopy stock should be perceived through this lens. At one point in time, Canopy stock was up a whopping 90% year to date. That point in time was Jan. 28, meaning shares of Canopy had rallied 90% in less than a month. That is a textbook definition of a stock going very far, very fast.Granted, the big rally was rooted in fundamentals. Namely, Canopy flexed its muscles as the leader in the global cannabis market by expanding global distribution, pushing into the U.S. hemp market, and reporting record third-quarter numbers. Still, up 90% in less than a month, CGC stock was overbought. Regardless of the fundamentals, it needed to cool off.Now, it's cooling off. It will continue to cool off for the foreseeable future. Investor sentiment needs to calm down and become less euphoric. The moving averages need to catch up. Investors should expect CGC stock to be range bound between $40-$50 for a few weeks.Thereafter, CGC stock will resume its rally higher. Why? Because the fundamentals continue to point to huge upside in a long-term window. The Fundamentals Remain HealthyThe long-term bull thesis on CGC stock is simple.Canopy Growth is the head-and-shoulders leader in the now fully legal Canadian cannabis market and will use that leadership position and a $4 billion investment from and partnership with global alcoholic beverage giant Constellation Brands (NYSE:STZ) to become one of, if not the, biggest player in the global cannabis space. This space projects to be a several-hundred-billion-dollar industry within the next 10 to 15 years as fully legal becomes the global norm. As such, Canopy reasonably projects to do several billion dollars in revenues and profits within the next 10 to 15 years, and that will easily translate into a $100 billion-plus market cap for CGC stock using market average multiples.All appears to be intact with this long-term bull thesis at the current time.Recent quarterly numbers suggest that Canopy is still the dominant force in the Canadian cannabis market. Canopy reported over $60 million in net revenue in the third quarter. That is, far and away, the largest revenue quarter any Canadian cannabis company has reported. Ever. It's also up nearly 300% year over year. Canopy also sold over 10,000 kilograms of cannabis during the quarter -- far above what peers are reporting and up 350% year over year. Clearly, Canopy is still dominating the Canadian cannabis market.Meanwhile, Canopy is the first Canadian cannabis company to make a big push into the U.S. hemp market with operations set to proceed in New York. Canopy is also using its cash to acquire multiple smaller players, further increasing its reach and portfolio of cannabis brands. The company is also making big moves in Peru, Poland and the United Kingdom.Overall, everything is moving in the right direction for Canopy. The company is continuing to dominate fully legal cannabis markets, is making big moves into newly legal cannabis markets and is expanding its reach and portfolio through acquisitions. In other words, Canopy looks like it's in the early stages of becoming the Constellation Brands or Altria (NYSE:MO) of the cannabis industry.So long as that thesis remains true, fundamentals will keep CGC stock on a long-term uptrend. Bottom Line on CGC StockCanopy Growth is a long-term winner going through some near term consolidation. In the big picture, this near-term consolidation is healthy. * 10 Hot Stocks Leading the Market's Blitz Higher CGC stock will resume its uptrend later in 2019 as more fundamental catalysts arrive (strong quarters, further legalization, deeper global distribution, Wall Street upgrades, so on and so forth). Until then, buying on weakness and holding for the long haul remains the winning strategy.As of this writing, Luke Lango was long CGC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Cheap Stocks to Buy Right Now * 5 Stocks Under $5 to Buy Before They Soar * 5 Consumer Stocks to Cash Out Of Compare Brokers The post Donat Stress Recent Weakness in Canopy Growth Stock appeared first on InvestorPlace.
Constellation Brands, Inc. (NYSE: STZ) shares dropped Wednesday after the alcoholic beverage maker commented on its beverage growth expectations at an industry conference. The company said it expects to see a 10-cent-per-share hit to fourth-quarter earnings from its investment in cannabis company Canopy Growth Corp. (NYSE: CGC). Constellation, likely best known as the maker of Corona beer, said that it expects the cannabis market to be worth $200 billion over the next decade, and said it expects earnings per share to rise by 10 percent over the next three years.
"Everything that's not a power brand, you can assume that we're either going to sell it, discontinue it or milk it very quickly over the next year or so," Chief Financial Officer David Klein said at CAGNY, a major food and consumer products event in Boca Raton, Florida. Reuters reported in October that Constellation was looking to sell some of its U.S.-based wine brands, in a deal that could be worth more than $3 billion. Klein also said on Wednesday he expects Canadian marijuana producer Canopy Growth Corp's third-quarter results to hit Constellation's current-quarter earnings by about 10 cents per share.
VICTOR, N.Y., Feb. 20, 2019 -- Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading beverage alcohol company, reiterates that Bill Newlands, president and chief.
HENDERSON, NV / ACCESSWIRE / February 20, 2019 / In the last month, the CBD space has had some interesting developments, mostly in relation to its relationship to the beverage industry. Well-known CBD ...
Marijuana stocks may not have had a stellar year in 2018. But, this year could easily bring better news as things continue to expand and more new marijuana markets open up.
The cannabis space remains enticing thanks to both the short-term and long-term trends we have in place. As a result of those trends, it has become a natural interest among investors. Attention has been gravitating toward Canopy Growth (NYSE:CGC) and not because it's the wildest one to trade. Instead, it's because CGC stock is one of the more high-quality names in the industry.Should it be one you consider on the long side?As with everything in the stock market, it comes down to several considerations. Things like, what kind of timeline are investors using, what is their risk tolerance and do they consider themselves traders or investors?InvestorPlace - Stock Market News, Stock Advice & Trading TipsNot only do the answers to these questions indicate whether investors should be in the cannabis space at all, but it also impacts whether Canopy stock is their best choice. For instance, if they are investors instead of traders, they may be best suited in a name like Cronos Group (NASDAQ:CRON) or CGC stock. If they're traders, perhaps Tilray (NASDAQ:TLRY) or Aurora Cannabis (NYSE:ACB) may be better suited for their tastes.That's not to say ACB can't be an investment or CGC a trade, but it's all about putting the most odds in our favor. So how exactly does Canopy Growth benefit long-term investors looking for alpha in the cannabis trade?Let's explore. Valuing Canopy Growth StockAt first, investors were cheering the company's earnings results. Canopy Growth stock initially jumped about 4% despite missing earnings expectations and buyers were holding up the stock. However, selling pressure has since set in and it tells me that the share price needs time to digest. * 10 Smart Money Stocks to Buy Now Last quarter, revenue of $83 million (Canadian dollars, by the way) surged more than 282% vs. the same quarter a year ago. Canopy Growth stock recorded a GAAP loss of 38 cents per share, missing estimates for a loss of 25 cents per share by 13 cents. Losses aside, the company is absolutely crushing it. Triple-digit revenue growth is Canopy's "short-term" driver, while long-term investors remain optimistic about further legalization.In the U.S., only about 20% of the country has approved cannabis for recreational consumption. While it will take time to achieve a full 100%, the country continues to gravitate in that direction, as well as making progress on the federal level. Let's not also forget whole countries -- like Canada -- can approve cannabis use for its population, too.This long-term legalization catalyst is one reason the highly regarded Constellation Brands (NYSE:STZ) dumped $4 billion into CGC to own roughly 40% of the company. Still, its valuation looms large. Shares command a market cap of roughly $16 billion. Even if the company racked up $400 million in sales this year, we're still talking about a price-to-sales ratio of 40.Whew, that's high. But if CGC can maintain a lofty level of revenue growth, the company will eventually grow into that valuation. It will take patience and nerves of steel for investors to participate in that migration, but the long-term payoff could be huge. CGC Stock ChartsIn the last section, I talked about the need for CGC stock to digest. It's not so much the earnings result that stretched out Canopy, but the entire move over the last two months. The stock essentially doubled from its December lows to its January highs. * 7 Financial Stocks With Accelerating Growth Any time a stock does that, a pullback or consolidation is justified. One major observation I have on CGC stock is its inability to take out its January high when it released earnings last week. In other words, despite investors seemingly liking the quarter, they didn't like it enough to bid it up to new 2019 highs. It also shows some downtrend pressure from the stock's earlier run in the fourth quarter of 2018.Overall though, the trend is up. Despite this, I think CGC stock is now a buy-on-any-dip candidate. I would like to see a drop into the mid-$30s and for the 50-day and/or 200-day moving average to support the name. That would allow Canopy Growth stock to digest the big move without negating its uptrend.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. 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 Hot Stocks Leading the Market's Blitz Higher * 7 Strong Buy Stocks With Over 20% Upside * 5 Growthy Stocks Trading Below 15X Earnings Compare Brokers The post Is Canopy Growth Stock the Best Cannabis Play? appeared first on InvestorPlace.
Companies like Altria Group Inc (NYSE: MO) and Constellation Brands Inc. (NYSE: STZ) are looking to enter the cannabis sector via innovative brands like Canopy Growth Corporation (NYSE: CGC). The cannabis sector is beginning to snowball and attitudes in major markets are rapidly shifting in favor of legalization.
Key Takeaways from Canopy Growth's Q3 Earnings CallCanopy Growth’s earningsOn February 14, Canopy Growth (WEED) (CGC) reported its earnings. The company held an earnings call the next day. We discussed the earnings call and summarized the key