|Bid||164.22 x 800|
|Ask||164.99 x 1000|
|Day's Range||161.50 - 166.10|
|52 Week Range||150.37 - 236.62|
|Beta (3Y Monthly)||0.53|
|PE Ratio (TTM)||10.35|
|Earnings Date||Mar 27, 2019 - Apr 1, 2019|
|Forward Dividend & Yield||2.96 (1.85%)|
|1y Target Est||210.95|
CORAL GABLES, FL / ACCESSWIRE / January 18, 2019 / Marijuana stocks have become one of the hottest topics in the news over the course of the past week years, but the last few weeks have remained especially positive for the industry. With the introduction of the US Farm Bill and the advent of legal hemp, cannabis stocks have seen impressive gains over the last month or so, with no signs of slowing down. Premier Health Group (OTC:PHGRF) (CSE:PHGI) has seen impressive growth throughout the last few weeks of January, as the cannabis sector has garnered significant notoriety, as well as a major increase in public support.
Constellation Brands (STZ) closed at $159.85 in the latest trading session, marking a -0.42% move from the prior day.
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...
GMP Securities raised its price target on Canopy Growth Corp. (WEED.TO) after the company announced plans for a large-scale hemp extraction operation in New York state.
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.
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
Projections suggest Canopy Growth Corp (TSX:WEED)(NYSE:CGC) could hit $1 billion in revenue within 18 months. If so, what does that mean for valuation?
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
Constellation Brands’ (STZ) gross margin contracted in the third quarter of fiscal 2019, while its operating margin expanded. The beer business’s gross margin contracted 80 basis points to 53.8% as the impact of higher pricing in select beer markets was offset by the higher cost of products associated with its Mexican beer portfolio and costs arising from a temporary raw materials supply issue in its glass production plant joint venture. The gross margin of the wine and spirits business contracted 70 basis points to 44.7% due to the impact of an unfavorable product mix.
VICTOR, N.Y., Jan. 11, 2019 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE:STZ and STZ.B), a leading beverage alcohol company, announced today the election of Bill Newlands, president and chief operating officer, and incoming chief executive officer of Constellation, to serve as a member of its board of directors, effective March 1, 2019, on which date the size of Constellation’s board will increase from 12 to 13 members. “Bill has a deep understanding of consumer trends and an ability to leverage those insights to enhance our innovation pipeline and drive incremental growth. His extensive beverage alcohol industry experience and appreciation for the values and principles that have made Constellation successful for more than 70 years make him ideally suited to serve as our next CEO and a great addition to our board of directors,” said Constellation Brands’ Chief Executive Officer Rob Sands.
Constellation Brands' Guidance Cut Overshadowed Its Q3 Results (Continued from Prior Part) ## Strong demand is driving growth Constellation Brands’ (STZ) top line growth in the third quarter of fiscal 2019, which ended on November 30, 2018, continued to be driven by demand for the company’s Mexican beer brands. Its beer business’s sales rose 16.0% to $1.2 billion in the quarter. Constellation Brands’ Modelo and Corona brands continued to deliver impressive results driven by strong distribution gains and innovations. Rival Molson Coors’ (TAP) sales rose 1.8% to $2.9 billion in the third quarter of 2018 driven by higher pricing, volume growth in Europe, the United States, and Canada, and the impact of a favorable product mix in Europe. Anheuser-Busch InBev’s (BUD) revenue fell ~10% to $13.3 billion in the third quarter of 2018, while its organic revenue rose 4.5%. Anheuser-Busch InBev attributed its organic revenue growth to the strong performance of its premium brands and its revenue-management initiatives. ## Beer business’s performance The double-digit growth in Constellation Brands’ beer sales was driven by higher volumes in its Mexican beer category, which contributed $143.8 million to its top line, and a $28.9 million contribution resulting from higher pricing in select markets. The 14.1% rise in the business’s shipment volumes in the quarter was driven by continued consumer demand, increased marketing efforts, product introductions, and the favorable timing of shipments. ## Capacity expansion To support the strong demand for its Mexican beer brands, Constellation Brands has been making significant investments in increasing its production capacity. The company expects to complete its Nava brewery capacity expansion by the end of fiscal 2019. It expects the 5-million-hectoliter capacity expansion at its Obregon facility to be completed ahead of schedule by the end of fiscal 2021. Despite a challenging political environment, the company is continuing the construction of its Mexicali facility. According to the company, this facility will represent only 10% of its overall beer capacity in Mexico. The company expects its Nava and Obregon facilities to produce 400 million cases of beer when they’re completed. Constellation Brands now expects its fiscal 2019 beer business sales to be at the high end of its guidance range of 9%–11% growth. Next, we’ll look at the factors that influenced Constellation Brands’ fiscal 2019 third-quarter margins. 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