When they need leadership, retail investors often turn to institutional investment trends to get ideas about areas where the current economy can reward risk underestimation. Led by one of the most legendary investors, it is easy to understand why Berkshire Hathaway NYSE: BRK.A It is a typical goal for retail merchants to explore when searching for opportunities.
In the fourth quarter of 2024, Buffet’s Berkshire Hathaway opened one main position, while reducing assets in companies such as Bank of America NYSE: BAC and Citigroup NYSE: C.This only purchase was made by brands of beer, wine and spiritual distributor Constellation NYSE: stzWhich is traded close to its 52-week low price 161 dollar per share.
Although confidence from Berkshire Hathaway is not a guarantee of future success, Constellation Brands has several key functions that may indicate future success.
Constellation brands: the company standing behind Corona, Modelo & More
Constellation Brends today
Constellation Brands
- 52-week range
- $ 160.46
▼
$ 274.87
- Dividend yield
- 2.27%
- P/e ratio.
- 47.78
- Value is valuable
- $ 250.41
The headquarters in Victor, New York, Constellation Brands manages the model of the alcoholic beveraged service focused on the consumer oriented to insurance, purchase and expand high-class brands to satisfy developing market requirements.
The most famous of its beer portfolio, Constellation owns a popular Mexican import, such as Corona and Modelo in the USA, as well as premium wine brands and alcohol, such as Svedka Vodka and Casa Noble Tequila.
Why Berkshire Hathaway sees the value in the Brands of the constellation
The Berkshire Hathaway investment strategy has long been and, as you know, bought stocks that can bargain below their fair market value and hold them for the long term. Constellation Brands has several key attributes that Buffett may have considered before adding this consumer promotion to the Berkshire Hathaway portfolio.
1. Import for dominance of the beer industry
The Constellation imported portfolio, which is mainly focusing on imports and rights to distribute Mexican products, makes up the lion’s share of its income. Currently, Constellation is 60%-Plus a volumetric share in the premium beer segment due to the acquisition of exclusive distribution rights for Mexican beer brands such as Modelo and Corona.
While beer consumption in the United States was in a reduced trend, Contellation Brand invested in a series of research and development projects, marketing campaigns and quality control efforts in order to maintain its market share and return gross profit over the past three years in a row.
Constellation recognizes its strengths: 82% of income enters the Mexican beer import segment. Having focused on advertising efforts on expanding new consumer bases, Constellation Brands was able to achieve a larger volume of growth, turning to consumers outside the traditional Latin American demography.
2. Investments in digital and electronic commerce
In addition to the strong brothel portfolio, Constellation Brands also brings benefits with higher digitalization and investment in electronic commerce compared to other consumer brands. This investment series began during the Covid-19 pandemic, when it collaborated with a local Drizly alcohol distribution application.
The company also increased its advertising budget after I realized that consumers basically did not know that buying alcohol online was legal. This early attention to online trees and consumer behavior is a positive indicator in contacting the high digital market of buyers 20-30. Currently, the company will invest more in its optimization of business on the Internet and the e -commerce business, long -term infrastructure game, which can bring dividends in young consumers.
3. Analysts ratings and dividends payment
Constellation Brands Forecast Today
$ 250.41
40.89% growthModerate purchase
Based on 22 analysts ratings
| The current price | $ 177.73 |
|---|---|
| High forecast | $ 306.00 |
| Average forecast | $ 250.41 |
| Low forecast | $ 190.00 |
Constellation brands of brands.
It seems that general analysts agree with the decision of Berkshir Hathaway that Stz can be underestimated.
Analysts’ ratings give this action an average consensus rating with a moderate purchase, with a potential growth of 41.25% compared to its current suppressed value.
These feelings, plus institutional investments growing up to $ 4 billion in the fourth quarter of 2024, may indicate the cost.
Thanks to their consistent dividends, Constellation brands can also be suitable for a long -term portfolio of creating wealth. STZ shares currently have a dividend yield of 2.26%, with an annual three -year dividend growth rate of 8.96%.
The company also supports this dividend with a reasonable money payment coefficient by 26.75%, which indicates that the future increase can occur along with irregularities of income.
Before considering Constellation brands, you will want to hear it.
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While Constellation Brands currently has a moderate purchase rating among analysts, analysts with the highest rating believe that these five promotions are better buying.
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