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Will Brown-Forman & Boston Surge Higher Post a 52-Week High?
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The alcohol market in the United States has been expanding on strong demand. Also, the alcohol industry is poised to benefit from the holiday season and a buoyant U.S. economy. Markedly, the Zacks Beverages – Alcoholic industry has gained 12.1% in the past six months, outperforming the S&P 500’s growth of 10%. Impressively, the Zacks Industry Rank falls within the top 40% (102 of 256).
Two leading players in this industry — Brown-Forman Corporation (BF.B - Free Report) and The Boston Beer Company, Inc. (SAM - Free Report) — have been flying high on this solid momentum and have crushed the industry’s trend too. Shares of Brown-Forman and Boston Beer have surged 40.8% and 46%, respectively, over the past six months. This apart, the companies’ sturdy fundamentals drove the stocks to hit a 52-week high on Dec 27. Notably, both these alcohol stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Good news is that the analysts are steadily growing bullish on these stocks, evident from the uptrend in the Zacks Consensus Estimate. Let’s take a good look at the two companies’ growth strategies that are aiding them to outperform the industry.
What’s Driving Brown-Forman’s Shares Higher?
Shares of Brown-Forman have hit a 52-week high of $68.81 on Wednesday, closing marginally lower at $68.60. The company seems to be on a roll owing to its strategic initiatives, robust brand strength, stellar second-quarter fiscal 2018 results and an upbeat outlook for the fiscal year. Also, management remains confident of continuing its growth in the second half of fiscal 2018. Earnings per share are now envisioned in the range of $1.90-$1.98 for fiscal 2018 compared with the previous guidance of $1.85-$1.95.
Consequently, the stock has seen the Zacks Consensus Estimate for fiscal 2018 being revised five cents upward at $1.97 and raised 12 cents to $2.17 for fiscal 2019 over the past 30 days.
Armed with a sturdy portfolio of globally recognized brands, Brown-Forman is a major producer and distributor of premium alcoholic beverages in the world. Further, it plans to expand Jack Daniel's market share in the developed markets as well as the emerging ones, wherein the whiskey category is in early stages of development. Also, management is confident about growth of its premium American whiskey and tequila brands.
What’s Driving Boston Beer’s Shares?
As mentioned above, shares of Boston Beer have also hit a 52-week high of $197.05 on the same day, although it closed a tad lower at $194.60. The company has been putting up a stellar show backed by its solid brand strength, robust growth strategies and an impressive earnings history.
Additionally, the Zacks Consensus Estimate of 94 cents for fourth-quarter 2017 earnings has moved 14 cents north in the past 30 days. Though the estimate for 2017 has been stable at $6.08, the same has increased by a penny to $6.16 for 2018 over the said time frame.
Boston Beer is the largest premium craft brewer in the United States and commands a strong portfolio of globally recognized brands. Also, management remains committed to a three-point growth plan focused on reviving its Samuel Adams and Angry Orchard brands, cost-saving initiatives and long-term innovation. Moreover, the company’s brand-building efforts and endeavors to add new products remain key revenue drivers. We expect the company’s continued focus on pricing, product innovation as well as brand development to boost its operational performance and position in the market.
Notably, the company’s third-quarter 2017 results delivered a positive earnings surprise for four straight quarters with a second consecutive sales beat. It has recorded an impressive average earnings outperformance of 63.4% in the trailing four quarters. The stock’s VGM Score of B with a long-term earnings growth rate of 5% further buoys optimism in the stock.
Looking For More Stocks Gaining From the Industry Trends
Some other top-ranked alcohol stocks having outpaced the industry with a favorable Zacks Rank are Constellation Brands, Inc. (STZ - Free Report) and Diageo plc (DEO - Free Report) , both carrying a Zacks Rank #2 (Buy).
We note that shares of Constellation Brands and Diageo have gained 17.2% and 19.8%, respectively, in the last six months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
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Will Brown-Forman & Boston Surge Higher Post a 52-Week High?
The alcohol market in the United States has been expanding on strong demand. Also, the alcohol industry is poised to benefit from the holiday season and a buoyant U.S. economy. Markedly, the Zacks Beverages – Alcoholic industry has gained 12.1% in the past six months, outperforming the S&P 500’s growth of 10%. Impressively, the Zacks Industry Rank falls within the top 40% (102 of 256).
Two leading players in this industry — Brown-Forman Corporation (BF.B - Free Report) and The Boston Beer Company, Inc. (SAM - Free Report) — have been flying high on this solid momentum and have crushed the industry’s trend too. Shares of Brown-Forman and Boston Beer have surged 40.8% and 46%, respectively, over the past six months. This apart, the companies’ sturdy fundamentals drove the stocks to hit a 52-week high on Dec 27. Notably, both these alcohol stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Good news is that the analysts are steadily growing bullish on these stocks, evident from the uptrend in the Zacks Consensus Estimate. Let’s take a good look at the two companies’ growth strategies that are aiding them to outperform the industry.
What’s Driving Brown-Forman’s Shares Higher?
Shares of Brown-Forman have hit a 52-week high of $68.81 on Wednesday, closing marginally lower at $68.60. The company seems to be on a roll owing to its strategic initiatives, robust brand strength, stellar second-quarter fiscal 2018 results and an upbeat outlook for the fiscal year. Also, management remains confident of continuing its growth in the second half of fiscal 2018. Earnings per share are now envisioned in the range of $1.90-$1.98 for fiscal 2018 compared with the previous guidance of $1.85-$1.95.
Consequently, the stock has seen the Zacks Consensus Estimate for fiscal 2018 being revised five cents upward at $1.97 and raised 12 cents to $2.17 for fiscal 2019 over the past 30 days.
Armed with a sturdy portfolio of globally recognized brands, Brown-Forman is a major producer and distributor of premium alcoholic beverages in the world. Further, it plans to expand Jack Daniel's market share in the developed markets as well as the emerging ones, wherein the whiskey category is in early stages of development. Also, management is confident about growth of its premium American whiskey and tequila brands.
What’s Driving Boston Beer’s Shares?
As mentioned above, shares of Boston Beer have also hit a 52-week high of $197.05 on the same day, although it closed a tad lower at $194.60. The company has been putting up a stellar show backed by its solid brand strength, robust growth strategies and an impressive earnings history.
Additionally, the Zacks Consensus Estimate of 94 cents for fourth-quarter 2017 earnings has moved 14 cents north in the past 30 days. Though the estimate for 2017 has been stable at $6.08, the same has increased by a penny to $6.16 for 2018 over the said time frame.
Boston Beer is the largest premium craft brewer in the United States and commands a strong portfolio of globally recognized brands. Also, management remains committed to a three-point growth plan focused on reviving its Samuel Adams and Angry Orchard brands, cost-saving initiatives and long-term innovation. Moreover, the company’s brand-building efforts and endeavors to add new products remain key revenue drivers. We expect the company’s continued focus on pricing, product innovation as well as brand development to boost its operational performance and position in the market.
Notably, the company’s third-quarter 2017 results delivered a positive earnings surprise for four straight quarters with a second consecutive sales beat. It has recorded an impressive average earnings outperformance of 63.4% in the trailing four quarters. The stock’s VGM Score of B with a long-term earnings growth rate of 5% further buoys optimism in the stock.
Looking For More Stocks Gaining From the Industry Trends
Some other top-ranked alcohol stocks having outpaced the industry with a favorable Zacks Rank are Constellation Brands, Inc. (STZ - Free Report) and Diageo plc (DEO - Free Report) , both carrying a Zacks Rank #2 (Buy).
We note that shares of Constellation Brands and Diageo have gained 17.2% and 19.8%, respectively, in the last six months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>