Latest news with #Modelo
Yahoo
6 days ago
- General
- Yahoo
‘Subject is shooting back!': More details released in April shooting involving beer theft suspect, deputies
BAKERSFIELD, Calif. (KGET) — What started with the theft of $68.97 in beer from a Rite Aid in south Bakersfield led to an exchange of gunfire and a search through backyards, ending when the suspect emerged from a storage shed hours later. Sheriff's reports released this week indicate 18 rounds were fired during the April 15 incident — five apparently by Jeremy Pletcher, the theft suspect, and 13 by a deputy. No one was wounded. A round that was determined to have been fired by Pletcher passed through the sliding glass door of a home and lodged in a couch, the reports say. Pletcher, 34, is being held on $565,000 bail on charges including attempted murder and assault with a gun on a peace officer. He's due back in court July 16. Around 9 a.m., the manager of the Rite Aid at H Street and Ming Avenue reported a man had piled two 12-packs of Modelo and an 18-pack of Corona beer on a skateboard and left through the emergency exit without paying. Surveillance video captured the theft. A man matching the suspect's description and later identified as Pletcher was found by a deputy in a patrol vehicle minutes later at the intersection of Montgomery Avenue and Fremont Street, according to the reports. Pletcher refused to stop and ran toward Marshall Street and Hodges Avenue and into a backyard, the reports say. The deputy chased him — and the shooting occurred. 'Shots fired!' the deputy radioed according to the reports. 'Subject is shooting back!' Following the gunfire, Pletcher ran west and jumped fences into other yards. The deputy retreated to his patrol vehicle. More deputies swarmed the area as multiple residents called to report seeing a man running through yards. Eventually, Pletcher was determined to be hiding inside a storage shed in a backyard near Benton Street and Mark Court. He was surrounded; helicopters circled the scene and snipers took up position on rooftops. Chemical agents were fired at the shed and Pletcher surrendered at about 11:08 a.m. A black Hi-Point 9mm handgun was found in the shed with a live round in the chamber and another in an eight-round magazine, according to the reports. The gun's registered owner was contacted. They told investigators they didn't realize the weapon was missing. Pletcher is a convicted felon and barred from owning firearms. After he was taken to sheriff's headquarters and before he requested an attorney, Pletcher asked, 'Is everybody alright over there?' according to the reports. A brief exchange ensued after detectives questioned why he'd ask that. 'I don't know,' Pletcher said. 'Well, I'm just asking.' 'What if I told you no?' a detective asked. 'I'd say you'd be lying,' Pletcher responded. Detectives asked why he'd say that. Pletcher laughed. 'Because you'd be lying,' he said. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
26-05-2025
- Yahoo
Accused drunken driver said he was looking at phone GPS just before fatal crash: CHP
BAKERSFIELD, Calif. (KGET) — Fidel Habana Vargas was driving to Lake Woollomes with his roommates on May 7 when he took his eyes off the road to check his phone GPS. When he looked back there was a stop sign in front of him — and no time to react, he told a California Highway Patrol officer. His Toyota Camry entered the intersection of Wallace Road and Cecil Avenue and collided with a van. Oliver Campuzano Villalva, 24, the Toyota's front passenger, was killed. Vargas and a rear passenger were injured, as was the driver of the van. In addition to not paying attention to the road, Vargas, 35, was driving under the influence of alcohol, according to CHP. Breath samples returned blood-alcohol content readings of 0.092 and 0.095%, CHP reports say. Vargas said he drank an 18-pack of Modelo at his house the day before, according to the reports. He also said he used a 'small dose' of methamphetamine the morning before, the reports say. He's pleaded not guilty to charges of gross vehicular manslaughter while intoxicated and two counts of DUI causing injury, and is due back in court next month. Vargas told an officer he was driving south on Wallace Road at about 60 mph when he entered the intersection around 3:30 p.m. The van was traveling east on Cecil Avenue at about 55 mph, its driver said according to the reports. No prior cases are listed against Vargas on the Superior Court website. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
22-05-2025
- Business
- Yahoo
Warren Buffett's Berkshire Hathaway Doubled Down on Constellation Brands Stock. Time to Buy?
Berkshire Hathaway increased its stake in Constellation Brands by 114%. A low forward valuation and above-average dividend yield should bolster the stock's value proposition. Shifting consumer patterns and tariffs could bode poorly for the stock. 10 stocks we like better than Constellation Brands › Over the last few quarters, Warren Buffett's Berkshire Hathaway was a net seller of stocks. This was also true of the most recent quarter, as its liquidity rose to $348 billion, up from $335 billion in the previous quarter. Still, Buffett and his team bought some stocks in Q1, and its fastest-growing position was Constellation Brands (NYSE: STZ). The company increased its stake by 116% and now owns over 12 million shares. Nonetheless, investors like Buffett buy stocks for many reasons. Knowing that, should average investors follow Berkshire's lead in this Warren Buffett investment or stay on the sidelines? Berkshire began buying Constellation Brands stock in the fourth quarter of 2024. On the surface, it looks like a "Buffett stock" with relatively low valuation. Another attribute is the fact that Constellation owns the U.S.'s current No. 1 beer brand, Modelo. With other brands such as Corona beer, Robert Mondavi wine, and High West whiskey, it sells products with the enduring demand investors like Warren Buffett often seek. However, in January, the company reported results for the third quarter of fiscal 2025 (ended Nov. 30, 2024). The misses on net sales and earnings and a $2.25 billion goodwill impairment led to a considerable sell-off in Constellation stock, and it dropped over 17% the day after its announcement. The stock steadily declined further before bottoming in February. While Buffett's team has not commented directly on its activity with this Constellation stock, it may have taken advantage of the lower stock price to more than double its share count. Even though the stock is up about 20% from that 52-week low, it trades at a 47 P/E ratio when figuring in the aforementioned goodwill impairment. Buffett's team likely based its valuation on the 15 forward P/E ratio, which makes it appear inexpensive and includes no one-time charges. Berkshire may also like its dividend. The annual payout of $4.08 per share offers a dividend yield of 2.1%, well above the 1.3% S&P 500 (SNPINDEX: ^GSPC) average. Constellation Brands generated just over $1.9 billion in free cash flow in fiscal 2025 (ended Feb. 28). The 10 straight years of payout hikes may have baked in an expectation of rising dividends. Additionally, since the dividend cost the company $732 million during the same period, it can probably continue to raise its payout, making it an increasingly attractive income stock. However, before being so quick to follow Buffett and his team into Constellation Brands, investors should understand its challenges. For one, there's surprisingly low demand for alcohol among Gen Z. While a variety of factors may explain that decline, it could mean a possible long-term drop in demand for its beverages. Also, softening consumer spending appears to have affected all generations. This could hurt sales as more consumers seek better value. Furthermore, many of its most popular brands come from foreign countries. This is particularly concerning for Mexican beer Modelo, which only recently became the No. 1 beer after capturing the title from Anheuser-Busch InBev's Bud Light. In light of its situation, the company believes it will achieve -2% to 1% net sales growth in 2026. For its "medium-term" forecast, the company previously predicted 6% to 8% net sales growth for fiscal 2027 and 2028. Now, with the possible effects of tariffs added, the company revised the net sales increase to the 2% to 4% range, indicating Constellation shareholders might face years of pain. Under current conditions, Constellation Brands stock looks like a buy for average investors. Admittedly, worries about tariff effects, consumer sentiment, and demographic trends arguably justified a lower earnings multiple, since sales growth appears it is on track to fall. Nonetheless, with the company on track to sell at just 15 times earnings, the sell-off in Constellation Brands stock appears overdone. Moreover, with the dividend yield of over 2% and more payout hikes likely coming, investors have the potential to earn significant returns from both stock price growth and income. Hence, as investors receive more clarity on the tariff front, they may return to this stock, lifting share values over time. Before you buy stock in Constellation Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Constellation Brands wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Will Healy has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy. Warren Buffett's Berkshire Hathaway Doubled Down on Constellation Brands Stock. Time to Buy? was originally published by The Motley Fool
Yahoo
22-05-2025
- Business
- Yahoo
Better Buffett Stock: Constellation Brands vs. Coca-Cola
Constellation faces significant near-term and long-term challenges. Coca-Cola is still growing at a steady rate in this challenging market. Buffett's classic investment is still a better buy than his newest one. 10 stocks we like better than Coca-Cola › Warren Buffett plans to step down as the CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) at the end of this year, but he's still making some big trades for the conglomerate's $285 billion portfolio. Last year, Buffett reduced Berkshire's stakes in several of his top stocks -- including Apple and Bank of America -- and boosted its cash and short-term U.S. Treasury holdings to record levels. Those cautious moves indicated that Buffett thought the market was getting overheated. But as he pruned some of those long-term winners, he accumulated some new stocks and left his other top holdings alone. One of those new stocks was Constellation Brands (NYSE: STZ), one of the world's leading producers of alcoholic beverages. One of the classic stocks he didn't touch was Coca-Cola (NYSE: KO), the world's largest beverage maker. Both of these stocks might seem like evergreen investments. But over the past 12 months, Constellation's stock declined 23% as Coca-Cola's shares rose 15%. Should you follow Buffett's lead and buy Constellation? Or should you simply stick with Coca-Cola? Buffett started a new position in Constellation by buying 5.62 million shares in the fourth quarter of 2024. He bought another 6.38 million shares in the first quarter of 2025. Those 12 million shares, which are worth $2.3 billion, account for 0.8% of Berkshire's entire portfolio. The investment in Constellation turned heads because the company faces some formidable near-term and long-term challenges. It sells more than 100 brands of beers, spirits, and wines, but many of its top brands -- including the beers Modelo, Corona, and Pacifico -- are produced in Mexico and subject to the Trump administration's 25% tariffs against the country. Even if Constellation overcomes those tariffs by shifting its supply chain or raising its prices, it still needs to deal with the ongoing decline of its cheaper wine brands and lower alcohol consumption rates among younger consumers. It's trying to address those issues by divesting its cheaper wine brands and rolling out lighter and nonalcoholic drinks for the younger generation, but the bears think it could eventually face an existential crisis like the big tobacco companies. From fiscal 2025 (which ended this past February) to fiscal 2028, analysts expect revenue to decline from $10.2 billion to $9.9 billion as it divests some weaker brands. It posted a net loss in fiscal 2025, mainly due to some big goodwill impairment charges related to its struggling wine and spirits segment, but the company is expected to turn profitable again in fiscal 2026 as it laps those one-time expenses. Analysts expect EPS to show a compound annual growth rate (CAGR) of 7% over the following two years as it tries to stabilize its business. The stock looks cheap at 15 times earnings and pays a decent forward yield of 2.1%, but it needs to resolve those pressing issues before it attracts a higher valuation. Buffett started to buy shares of Coca-Cola for Berkshire in 1988. It now owns 400 million shares, which are worth $28.8 billion and account for 10.1% of its portfolio. That makes it Berkshire's third largest position after Apple (21.8%) and American Express (15.7%). Buffett's devotion to Coca-Cola, which he claims to drink five cans of daily, might seem risky as soda consumption rates decline worldwide. But over the past few decades, the company has diversified with more brands of bottled water, fruit juices, teas, sports drinks, energy drinks, coffee, and even alcoholic beverages to reduce its dependence on sugary sodas. It has also refreshed its classic sodas with new flavors, sugar-free versions, and smaller serving sizes to attract new customers. Coca-Cola isn't heavily exposed to tariffs because it only sells the concentrates and syrups for its drinks. Its finished products are actually produced by a global network of bottlers that operate as independent companies. Those bottlers might face a near-term headwind from the Trump administration's tariff on aluminum, but they can easily pivot toward more plastic bottles to offset that pressure. They also don't need to worry too much about the tariffs on exports into the U.S., since they produce and sell their finished beverages regionally. From 2024 to 2027, analysts expect Coca-Cola's revenue and EPS to show a CAGR of 4% and 11%, respectively. The stock still looks reasonably valued at 25 times forward earnings, and it pays a forward yield of 2.8%. That's probably why Buffett hasn't sold any of his shares over the past 13 years. Constellation's business isn't headed off a cliff, but it faces much tougher near-term and long-term challenges than Coca-Cola. I see why Buffett thinks it's undervalued at these levels, but it could get stuck in the same trap as big tobacco companies and need to constantly hike prices to offset declining shipments, cut costs, and buy back more shares to squeeze out more earnings growth. So if I had to pick one of these stocks, I would stick with Coca-Cola instead of Constellation. Before you buy stock in Coca-Cola, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Coca-Cola wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Leo Sun has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy. Better Buffett Stock: Constellation Brands vs. Coca-Cola was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
21-05-2025
- Business
- Yahoo
The Last Dance: Warren Buffett Doubles Down on These 2 Stocks
Warren Buffett, the legendary Oracle of Omaha, has confirmed that he'll be stepping down as CEO of Berkshire Hathaway at the end of the year. While he'll officially hand over the reins, investors are still watching his every move – especially as he takes what may be his final bold swings in the market. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter True to form, Buffett isn't chasing hype. Instead, he's reinforcing his long-held playbook: invest in companies with strong fundamentals, dependable dividends, and time-tested business models. That steady hand has earned him the title of the world's most successful investor, and one of the richest people on the planet. As his storied career nears its final chapter, Buffett is going out just as he came in: with conviction. He's doubling down – literally – on two names in his portfolio, significantly increasing his stakes in both. Using the TipRanks database, we've pulled together what Wall Street has to say about these two high-conviction picks. Let's take a closer look. Constellation Brands (STZ) We'll start with one of the beverage industry's true stalwarts – and a new favorite investment of Buffett's. Constellation Brands is a leader in the US market for alcoholic beverages, offering a large portfolio of beers, wines, and hard spirits for the consumer market. Constellation also holds the right to import the famous Mexican beer brands Modelo and Corona into the US; the company operates several breweries in Mexico to produce these beers for the import market. Modelo is the number-one imported beer in the US, and, since May of 2023, is the best-selling beer in the US; we should note that Corona is also in the top ten of best-selling beers, at number eight. Among Constellation's other brands, the Mexican import Pacifico is proving to be popular in California, while the company's Modelo Chelada brand is finding favor with customers who prefer a more flavorful beverage. Constellation's stock has come under pressure this year. The company missed expectations in its 3Q25 earnings report, released in January, and as a major importer, the company is vulnerable to shifts in trade and tariff policy; against that background, the share price has remained depressed since the hit it took after the January earnings release. In the most recent earnings report, released on April 9 and covering 4Q and full-year for fiscal 2025, Constellation reported $2.16 billion in quarterly sales, for a modest 0.9% year-over-year gain – a result that looked better after Q3's 0.4% y/y sales drop. The Q4 revenue also beat the forecast by $40 million. At the bottom line, the company's quarterly non-GAAP EPS of $2.63 was up 33 cents per share year-over-year and beat the forecast by 36 cents per share. These results supported the April 9 dividend announcement, for a payment of $1.02 per common share. The payment was made on May 15; the annualized rate of $4.08 gives a forward yield of 2.1%. Turning to Buffett's recent purchase, we find that the legendary investor's STZ purchases in calendar Q1 came to 6,384,676 shares, marking a 114% increase in his holding of the stock. Buffett's total stake in Constellation Brands is valued at nearly $2.32 billion. He first bought into the stock in the final quarter of 2024. The company also has a supporter in Roth MKM analyst Bill Kirk. Following the FQ4 earnings, Kirk noted the headwinds faced by the company but he still laid out the bull case, writing, 'We understand that macro conditions are unfavorable and tariffs are a major headwind, but Constellation gained more incremental points of distribution in the 2025 resets than even the 2024 resets (~10%), and that the gains were broad-based across brand families. This was one of the more surprising revelations on a recent expert call we hosted. While the extra shelf space hasn't helped Constellation's recent trends, should the consumer get more comfortable, the extra shelf space bodes well for summer. We believe consumers adjust to lifestyle shocks, and old habits, including Beer, re-form. Kirk goes on to rate STZ as a Buy, and his $256 price target implies a one-year upside potential of 33% for the stock. (To watch Kirk's track record, click here) Constellation gets a Moderate Buy consensus rating from the Street's analysts, based on 18 recent reviews that include 11 Buys and 7 Holds. The shares are priced at $192.91, and their $208.11 average price target indicates room for an 8% gain over the next 12 months. (See STZ stock forecast) Pool Corporation (POOL) The next stock we'll look at, Pool Corporation, puts its business right in its name: it's a leading distributor of supplies, equipment, and other outdoor products for swimming pools. The company employs more than 6,000 people, operates through more than 445 locations in North America, Europe, and Australia, and serves 125,000 wholesale customers. Pool Corp's products include everything from construction materials to outdoor hot tubs, replacement parts, and fencing. The company has diversified its product line to include commercial and residential parts and products for outdoor irrigation; power equipment used in professional landscaping; and even specialty leisure products such as outdoor grills and kitchens, outdoor lighting, and water management. Pool Corporation is the world's largest company in the niche for swimming pools and accessories. Turning to the company's financials, Pool Corporation's 1Q25 revenue of $1.1 billion was down 1.8% year-over-year and in-line with the forecasts; the bottom line, non-GAAP EPS of $1.32, was down 52 cents per share year-over-year and missed expectations by 14 cents per share. At the same time, Pool Corp felt confident enough to raise its quarterly dividend. The payment was bumped from $1.20 per common share in the previous quarter to $1.25 in the April 30 declaration. The new dividend annualizes to $5 per share, gives a forward yield of 1.55%, and is scheduled for payment on May 29. The company also announced an increase in its share repurchase authorization to $600 million. As for Buffett, his firm Berkshire Hathaway first bought into POOL shares last year, during the third quarter — and during 1Q25, the firm added 865,311 shares to its holdings. This brings Buffett's stake in POOL to 1,464,000 shares, currently worth more than $472 million. This stock has caught the attention of Goldman analyst Susan Maklari, who is impressed by the company's ability to keep up its business in the face of difficult conditions. She writes, 'Pool continues to execute on strategic initiatives, despite ongoing demand headwinds, while also incrementally benefiting from a more inflationary environment… Management noted further adoption of POOL360 and other margin accretive proprietary offerings, which we believe will add to share gains and shareholder returns over time. Moreover, we see Pool's distribution model, with 60% of revenues from maintenance, as a relative beneficiary of tariffs, even in a weaker demand environment. In line with this, the company raised guidance for price to the high-end of the 1-2% range this year, as related increases come through from suppliers. We also look for these to carryover to early 2026, benefiting future growth.' The Goldman analyst comes to an upbeat conclusion on the stock, based on her assessment of its underlying strengths, and adds to her comments: 'This comes as maintenance demand remains steady in contrast to ongoing pressure in larger ticket, discretionary spend given the macro backdrop and limited existing home sales. Although we look for these conditions to hold over upcoming quarters, we note Pool's balance sheet strength, supporting investments in company-specific efforts as well as the ability to return cash to shareholders.' Maklari rates POOL as a Buy, and her $355 price target implies that the shares will gain 10% in the year ahead. (To watch Maklari's track record, click here) Overall, POOL gets a Moderate Buy rating from the analyst consensus, based on 11 recent reviews that include 4 Buys, 6 Holds, and 1 Sell. The stock's $322.45 share price and $320.60 average target price suggest the shares will stay rangebound for the time being. (See POOL stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. 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