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Source: Q1 Earnings Presentation, slide 9. Diageo produced organic growth across nearly its entire portfolio of products in the second half of the company’s fiscal year 2019. Investors looking for income might be disappointed with the stock as it yields just 1.5%. Please upgrade to one of the following browsers: Access insights and guidance from our Wall Street pros. Shares offer a yield of 1.8% as of the most recent closing price. Given the competitiveness of the U.S. alcohol market, we feel it is unlikely that Constellation Brands will be able to maintain this type of growth going forward. This article examines the investment prospects of 9 of the top beverage stocks in detail. Shares of Ambev closed recently at $4.65. This double-digit return potential earns the stock a buy rating from Sure Dividend. Dunkin Brands Group remains in the growth phase as it has only recently expanded to the western United States. Coca-Cola will report earnings on Tuesday. Using earnings growth (5%), dividend yield (4.3%) and multiple expansion, we expect shares of Molson Coors to offer a total annual return of 14.9% through 2024. We rate shares as a strong buy. The following beverage stocks are rated highest by our value-focused model. Molson Coors was founded in 1873 and has grown into one of the largest U.S. brewers, offering a wide variety of popular brands such as Coors Light, Coors Banquet, Molson Canadian, Crispin Cider and Miller Lite through a joint venture called MillerCoors. Beer stocks, as represented by the Consumer Staples Select Sector SPDR ETF , have underperformed the broader market. This is slightly more impressive when factoring in the impact of currency exchange on the company’s dividend. The beverage industry offers something different for everyone. The company is primarily known for its tobacco products, but sells beverages as well. We have a 2024 target of 15 times earnings. If Molson Coors’ stock were to trade with this P/E by 2024, then valuation would add 5.5% to annual returns over this period of time. XLP has provided a total … The company also provides wines like Robert Mondavi and Black Box and spirits such as SVEDKA Vodka and Case Noble Tequila. However, the company has shown an ability to adapt with changing consumer tastes as evident by its early entrance into the craft beer market. Global volumes are also increasing. Overall, the closure of bars and restaurants have put a serious damper on the industry. Keurig Dr. Pepper formed following the 2018 merger between Dr. Pepper Snapple and Keurig Green Mountain. Source: Consumer Analyst Group of New York Conference 2019 Presentation. For example, consumers in Brazil, one of Ambev’s largest markets, are seeing their disposable income grow after years of decline. Constellation Brands is the third largest beer company in the U.S. Altria offers one of the best potential returns for stocks on this list. Please send any feedback, corrections, or questions to [email protected]. With a large presence in Latin America, Ambev’s success is tied to the performance of the economies in these countries.
Currency has often impacted Ambev’s financial results, but we expect earnings-per-share to grow at a rate of 3% going forward. Starbucks says fiscal second-quarter earnings will be cut nearly in half following sales plunges in the U.S. and China. Internet Explorer 9+, RSS Feed for 10 Best Beverage Stocks for This Year. We think the company can increase EPS growth to 5% annually through 2024 due to a stabilizing beer market, plus higher sales in the premium and craft beer business. While the company has only increased its dividend five times since 2009, Molson Coors does offer an attractive yield of 4.4% at the moment. U.S. investors may face fluctuations in income from year-to-year due to currency exchange rates.
Using the recent closing price of $113.34 and our expected earnings-per-share of $7.00, J.M. For the most part, the company’s profitability has increased steadily over the years. Luckin Coffee received a notice of delisting from Nasdaq and will request a hearing to discuss the matter with the exchange. These markets have seen rapid population growth which should allow Unilever to continue to produce solid business results. Diageo PLC (DEO) Expected Annual Returns: 6.0% Diageo traces its roots all the way back to the …
Every day TheStreet Ratings produces a list of the top rated stocks, by industry. We forecast that the company will earn $2.90 per share in 2019, giving the stock a P/E ratio of 21.3. Starbucks will hold its annual shareholder meeting virtually due to coronavirus concerns, while Oppenheimer reiterates its outperform rating on the company. Using expected earnings-per-share of $1.14, the stock has a P/E ratio of 24.3.
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