Latest news with #STZ
Globe and Mail
3 days ago
- Business
- Globe and Mail
Warren Buffett Doubled His Position in These 2 Stocks Last Quarter. Should You Invest in Them?
Warren Buffett's company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) recently filed its latest 13F report, showing which stocks it has a position in. And by analyzing the filing, investors can see which stocks the company has been buying and selling. Berkshire hasn't been doing too much buying lately but there are a couple of stocks which it has dramatically increased its position in: Constellation Brands (NYSE: STZ) and Pool Corp (NASDAQ: POOL). Berkshire's share count in both of these stocks has more than doubled in just the past quarter. Are these stocks you should consider for your portfolio as well? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Constellation Brands Berkshire increased its position in beer maker Constellation Brands by 114% this past quarter, and it now owns more than 12 million shares. However, that's still modest in relation to Berkshire's overall portfolio as Constellation accounts for less than 1% of its total holdings. Why would Berkshire be bullish on Constellation Brands right now? What Buffett may like is that it has some strong, identifiable consumer brands in Corona and Modelo, which gives the company a competitive advantage over its peers. The company has also been steadily growing its revenue over the years and its operating income has also been strong. In the trailing 12 months, Constellation's operating income totaled $3.4 billion on revenue of $10.2 billion, for an impressive margin of 33%. What may have enticed Berkshire to add to the position was that in mid-February, the stock hit a new 52-week low, and bargain investor that Buffett is, decided to load up on the stock at the time. Constellation Brands may look appealing but there are risks to consider as well. The company makes its beers in Mexico and tariffs pose a risk for the foreseeable future. And there are also rising health concerns around alcohol as it has been linked to an increased risk of developing several types of cancers, which could impact demand in the long run as consumers become more health conscious. For those reasons, I wouldn't go out and buy the stock. But if you want a cheap dividend stock, Constellation could make for a compelling option as it pays 2.2%, which is better than the S&P 500 average of 1.3%. Pool Corp The stock that jumped the most (in terms of percentage points) in Berkshire's portfolio this past quarter was Pool Corp. Berkshire's position in that stock increased by 145%, but at around 1.5 million shares, it's a much smaller position overall for the company than Constellation. Pool Corp makes up just 0.2% of Berkshire's entire portfolio. As its name suggests, Pool Corp is in the business of pools; it refers to itself as "the world's leading wholesale distributor of swimming pool equipment, parts and supplies, and related outdoor living products." The company has a strong global presence with sales centers in North America, Europe, and Australia. Pool Corp's numbers are good but not as impressive as Constellation's. For one thing, the company's sales declined for the past two years, from $6.2 billion in 2022 to $5.5 billion the following year, and falling to $5.3 billion this past year. It is profitable, but its operating income of $617 million in 2024 was a more modest 12% of its top line. That's a decent margin, but it doesn't look terribly exciting. As with Constellation Brands, Pool Corp stock has also been falling in recent months, and that may have incentivized Buffett to add the stock to Berkshire's holdings. Overall, it's a simple business to understand, it makes decent profits, and it pays a dividend of 1.7%. It's a no-nonsense stock that fits well with other consumer stocks that Berkshire has in its portfolio. But here again, I'd pass on the stock simply because its numbers aren't all that compelling, and a time when consumers are scaling back on discretionary purchases, there may not be growing demand for swimming pools anytime soon. Should you invest $1,000 in Constellation Brands right now? Before you buy stock in Constellation Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to170%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Business Insider
20-05-2025
- Business
- Business Insider
RBC Capital Remains a Buy on Constellation Brands (STZ)
In a report released on May 16, Nik Modi from RBC Capital maintained a Buy rating on Constellation Brands (STZ – Research Report), with a price target of $233.00. The company's shares closed yesterday at $192.91. Confident Investing Starts Here: Modi covers the Consumer Defensive sector, focusing on stocks such as Boston Beer, Procter & Gamble, and Constellation Brands. According to TipRanks, Modi has an average return of 2.2% and a 52.91% success rate on recommended stocks. In addition to RBC Capital, Constellation Brands also received a Buy from Evercore ISI's Robert Ottenstein in a report issued on May 14. However, on May 9, Bank of America Securities maintained a Hold rating on Constellation Brands (NYSE: STZ). The company has a one-year high of $265.70 and a one-year low of $160.46. Currently, Constellation Brands has an average volume of 2.42M. Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of STZ in relation to earlier this year. Earlier this month, Samuel J Glaetzer, the EVP & Pres. Wine and Spirits of STZ sold 3,150.00 shares for a total of $593,901.00.
Yahoo
17-05-2025
- Business
- Yahoo
Warren Buffett More Than Doubles His Stake in Constellation Brands, Inc. (STZ)
It was recently disclosed that Warren Buffett's Berkshire Hathaway has increased its stake in Constellation Brands, Inc. (NYSE:STZ). Let us shed some light on this development. Constellation Brands, Inc. (NYSE:STZ) is a leading international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. The company has gained the spotlight over the last few years for the skyrocketing popularity of its Mexican beer brands, particularly Corona and Modelo. In fact, after the controversy surrounding Bud Light, Modelo Especial is now the most popular beer brand in America. So it comes as no surprise that a seasoned investor like Warren Buffett saw the potential in Constellation Brands, Inc. (NYSE:STZ) and decided to invest a portion of his enormous pile of cash into it. The Oracle of Omaha's confidence in the alcohol company has now been bolstered even further, with the recent revelation that Berkshire Hathaway grew its stake in STZ to about 12 million shares worth $2.2 billion from the initial 5.6 million shares at the year end of 2024. This has raised Berkshire's total stake in the maker of Corona and Modelo to 6.6%. As a result of Buffett's confidence in the company, the share price of Constellation Brands, Inc. (NYSE:STZ) has surged by more than 4.5% over the last two days. While we acknowledge the potential of STZ to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than STZ and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None.
Yahoo
15-05-2025
- Business
- Yahoo
Jim Cramer Calls Constellation Brands a 'Very Big Disappointment'
A caller asked Cramer's opinion of Constellation Brands Inc. (NYSE:STZ), and here's what Mad Money's host had to say: 'Oh, I know it's trying to bottom, but you know what? The beer business is soft. The spirit business is not so good, and frankly, I expected more from the company. I think the company has been a very big disappointment, and I just have to say, I don't need to be in stocks that have been disappointing. I'm sorry. I wish it were doing better for certain, my wife's in that business itself, but I don't see it.' A winemaker examining a glass of red wine from a barrel in a cellar. Constellation Brands (NYSE:STZ) is a large producer and distributor of beer, wine, and spirits. The company sells beer through a variety of brand names. Appearing on Squawk on the Street in April, Cramer said: 'A rather shocking guide down. Beer will be flat no longer 7% to 9% two years. They got Modelo, which is the number one brand. What this says is, without a doubt, that alcohol continues to slow. Consumption continues to slow. We don't know. Now, this company over-indexed for Hispanics. There's always a chance that perhaps Hispanics are unfortunately laying low because of what's ever happening in our country. That's what's happened before. But what's more important is GLP-1. The craving for beer is no more than the craving for sparkling water. So I'd rather have a sparkling water. There's big studies going on right now that show that. And no one in the industry is willing to admit it. […] While we acknowledge the potential of STZ to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than STZ and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: Jim Cramer Commented on These 6 Natural Gas Players and 13 Stocks on Jim Cramer's Radar Recently Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hindu
11-05-2025
- Business
- The Hindu
LG asks officials to expedite modalities on tourism project in Manapet
Lt. Governor Governor K. Kailashnathan has instructed officials to work toward speedy implementation of all the modalities connected with the Rs. 500 crore multi-product tourism project proposed in Manapet. The Lt Governor, who visited Palmyra Beach in the Manapet- Moorthikuppam- Pudukuppam belt, reviewed the plan and urged all concerned to expedite the ground work on the project, given its potential to give an impetus to the already growing tourism sector and to further develop Puducherry as a sought-after tourist destination, a press note from the Raj Nivas said. A draft project report to develop the 100-acre site into a Special Tourism Zone (STZ) on a Public Private Partnership basis, has been submitted to the Union Government for clearance. The draft report for the STZ has pitched for a host of facilities, including an upmarket hotel, with a 200-room capacity, a conference hall, amusement park, and parking lot, the Raj Nivas said. The government plans to offer a diversified tourism experience in the seaside site such as MICE (meetings, incentives, conferencing and exhibitions) events, leisure and adventure sports. According to the press note, it was highlighted during the discussions that once the STZ project goes on stream, the government could expect to garner an annual revenue of about Rs. 40-50 crore. Besides, the area would also benefit from economic development and job opportunities for about 1,000 persons. The representatives of the consultancy firm tasked with formulating the detailed project report, briefed the Lt Governor. D. Manikandan, Secretary to the Lt. Governor and Tourism Secretary, K. Muralidharan, Tourism Director and Revenue Department officials were present for the review.
