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Constellation Brands (STZ) Q3 earnings
  + stars: | 2023-01-05 | by ( Stefan Sykes | ) www.cnbc.com   time to read: +1 min
A worker stacks cases of Constellation Brands' Corona beer for delivery at the Euclid Beverage LLC warehouse in Peru, Illinois. Shares of Constellation Brands fell Thursday after the wine, beer and spirits company reported ongoing supply chain costs that offset sales growth in its beer category. For the three months ended Nov. 30, Constellation's beer segment posted year-over-year net sales growth of 8%, driven by continued growth of its Modelo Especial and Modelo Chelada brands. However, the company cited higher costs from raw materials, packaging and logistics, brewery expansions and marketing, which offset beer sales growth. The company said it plans to continue price increases on its beer products to match higher operating costs plaguing its supply chain.
Constellation Brands (STZ) could potentially implement a stock buyback program, CEO Bill Newlands said Thursday — a move we would welcome as shareholders in the alcoholic beverage maker. During an interview with Jim Cramer on "Mad Money" Thursday evening, Jim pushed Newlands on whether Constellation would consider a buyback given the decline in the stock. U.S.-based Constellation's growth in the beer market has been propelled by its 3 Mexican beer brands — Modelo Especial, Corona and Pacifico. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. A case of Constellation Brands Inc. Corona beer sits on a shelf in a cooler during a delivery in Ottawa, Illinois, U.S., on Tuesday, April 2, 2019.
U.S.-based Constellation's growth in the beer market has been propelled by its 3 Mexican beer brands — Modelo Especial, Corona and Pacifico. 1 spot in the country's high-end beer market and the No. 2 in the overall beer market, and has been the No.1 share gainer among Constellation's beer portfolio during the company's last 6 consecutive quarters, according to management. Moreover, Constellation's recent decision to eliminate its dual-class share structure puts the company in a strong position to deliver for all shareholders. Trucks with Constellation Brands Inc. Corona and Modelo beer sit during a delivery in the Zona Rosa neighborhood in Mexico City, Mexico.
We're buying 25 shares of Constellation Brands (STZ) at roughly $230.60 each. Our thesis all year has been that beer demand tends to be resilient in a macroeconomic slowdown, and we think the risk of trade-down from Constellation's one-of-a-kind Mexican beer portfolio is minimal. Lastly, we believe that Constellation Brands trading at a steep discount to other beverage stocks makes it attractive. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. Trucks with Constellation Brands Inc. Corona and Modelo beer sit during a delivery in the Zona Rosa neighborhood in Mexico City, Mexico.
Apple (AAPL), Constellation Brands (STZ) and Ford Motor (F) were subject to Wall Street research on Wednesday. Club take: China's Covid-19 lockdown measures have posed a risk to Apple's iPhone manufacturing, but we believe it's a temporary one. Club take: Ford has benefitted from higher pricing power as a result of supply chain challenges impacting production. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER .
CNN —A biologic therapy that delays the onset of type 1 diabetes received approval from the US Food and Drug Administration on Thursday. The most common side effects reported in the trial participants were low white blood cells and lymph cells, rash and headache. Without insulin, blood sugar can build up in the bloodstream and break down the body’s own fat and muscle. With Tzield, doctors would screen individual family members of people with type 1 diabetes to see whether they have those specific antibodies. As of 2019, about 1.9 million people have type 1 diabetes in the United States, according to the American Diabetes Association, including 244,000 children and adolescents.
Boston Beer has an average analyst rating of hold and 8% downside to the average price target, according to FactSet. "In a recession, beer tends to gain about one percentage point of share from spirits. How to play the space With that mindset, you shouldn't alter your long-term investments because of a potential recession, Sarwat said. Its average price target is buy. Duckhorn also has an average rating of buy, with 30% upside to the average price target.
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