Constellation Brands’ Valuation after Fiscal 2Q18 Results
Constellation Brands’ (STZ) 12-month forward PE (price-to-earnings) ratio fell 1.4% to 24.0x on October 5, 2017, the day the company announced its fiscal 2Q18 results.
As of October 6, 2017, 13 of the 19 analysts (or 68.0%) covering Constellation Brands (STZ) stock had “buy” ratings for the stock. Six analysts recommended a “hold.”
Constellation Brands’ (STZ) gross margin increased to 51.1% in fiscal 2Q18 from 47.9% in fiscal 2Q17.
Why Food Stocks Aren’t Cooking
So far this year, food stocks have largely disappointed investors, and the outlook for the rest of the year appears no better. Stock prices for food manufacturers have been on a downtrend, underperforming the S&P 500 Index (SPX-INDEX) on a YTD (year-to-date) basis, as the graph below shows. As of July 3, Campbell Soup (CPB), General Mills (GIS), Conagra Brands (CAG), J. M. Smucker (SJM), Kellogg (K), and Kraft Heinz (KHC) have fallen 13.7%, 10.7%, 10.2%, 7.7%, 6.7%, and 3.3%, respectively, YTD. The S&P 500 Index has returned 8.5% during the same period.
On average, cotton futures traded lower week-over-week for the week ended June 23, 2017.
During the week ended June 23, 2017, orange juice futures, or FCOJ-A near-month futures prices, ended in negative territory week-over-week.
What Affected Campbell Soup’s Margins in 1Q18
Campbell Soup’s (CPB) fiscal 1Q18 margins were impacted by volume deleverage, input cost inflation, and higher transportation and logistics costs due to weather-related issues. In fiscal 1Q18, Campbell Soup’s adjusted gross…
In 1Q18, Campbell Soup’s (CPB) sales fell 2% YoY (year-over-year) to $2.2 billion and missed analysts’ estimate. The company’s organic sales fell 2%, reflecting a continued decline in US (SPY) soup sales.…
Campbell Soup announced weaker-than-expected fiscal 1Q18 (ended October 29, 2017) earnings on November 21, 2017. Campbell Soup’s adjusted EPS (earnings per share) of $0.92 missed analysts’ expectation and fell 8.0%…
What Do Analysts Suggest for Walmart?
Of the 33 analysts, ~50.0% of them recommended a “hold” on Walmart stock, 42.0% recommended a “buy,” and 3.0% recommended a “sell.”
Walmart managed to improve its EPS (earnings per share) in the first three quarters of the current fiscal year despite its sluggish margins.
Analysts expect Walmart’s (WMT) margins to remain subdued due to the company’s continued investments in growth initiatives.
Analysts Revised Price Target for Monster after 3Q Results
As of November 9, Monster Beverage (MNST) was rated a “buy” by 14 out of 18 (or 78%) analysts covering the stock.
Monster Beverage’s (MNST) 12-month forward PE (price-to-earnings) ratio rose 1.3% to 36.2x on November 9 in reaction to the company’s 3Q17 results.
Monster Beverage’s (MNST) gross as well as operating margin contracted in 3Q17 despite strong sales growth.
Casey’s Stock Has Been Part of the Recent Retail Rally
While there wasn’t any positive news for Casey’s, the ongoing strength in food retail stocks probably drove Casey’s stock price higher.
Casey’s General Stores will be reporting its 2Q18 results on December 12, 2017. It’s projected to post a 2.8% fall in its EPS (earnings per share) to $1.40.
Since the Fuel segment is Casey’s largest segment, its performance defines the company’s overall performance in any given quarter.