Last week, Constellation Brands announced a partnership with media company Tastemade to develop and produce a series for Tastemade’s streaming channel called “Street Somm” (that’s a pronounceable and spellable version of “sommelier”).
Of 27 analysts covering the stock, 20 have a Buy or Strong Buy rating and the others have Hold ratings. At a share price of around $225.40, the upside potential based on a median price target of $264.50 is 17.3%. At the high price target of $295.00, the upside potential rises to 30.9%.
Analysts expect Constellation to report fiscal 2023 fourth-quarter revenue of $2.02 billion, down 17.3% sequentially and 3.8% lower year over year. Adjusted EPS are pegged at $1.84, down 35.0% sequentially and by 22.4% year over year. For the full fiscal year that ended in February, estimates call for EPS of $10.70, up by 4.9%, and revenue of $9.48 billion, up 7.4%.
Constellation stock trades at 21.1 times expected 2023 EPS, 19.1 times estimated 2024 earnings of $11.80 and 16.9 times estimated 2025 earnings of $13.30 per share. The stock’s 52-week range is $208.12 to $261.52. Constellation pays an annual dividend of $3.20 (yield of 1.42%). Total shareholder return for the past 12 months is negative 2.24%.
Lamb Weston
Lamb Weston Holdings Inc. (NYSE: LW) is the nation’s largest producer and marketer of frozen potato products and the ninth-largest packaged food company of any kind. Lamb Weston stock is up 69% over the past 12 months. Lamb Weston reports earnings after markets close on Wednesday.
In February, the company acquired the 50% of a joint venture that it did not already own from Netherlands-based Meijer Frozen Foods for €525 million (about $572.5 million) and 1.95 million shares of Lamb Weston stock. The deal added production facilities to supply some 2 billion pounds of frozen products annually.
Of seven analysts covering the stock, five have a Buy or Strong Buy rating and one has a Hold rating. At a share price of around $104.20, the upside potential based on a median price target of $110.00 is 5.6%. At the high price target of $115.00, the upside potential rises to nearly 10.4%.
Analysts expect the company to report fiscal 2023 third-quarter revenue of $1.16 billion, down 17.3% sequentially but up 21.5% year over year. Adjusted EPS are pegged at $0.99, down 22.7% sequentially and 35.6% higher year over year. For the full fiscal year that ends in May, current estimates call for EPS of $3.94, up by 89.3%, and revenue of $5.15 billion, up 25.7%.
Lamb Weston stock trades at 26.5 times expected 2023 EPS, 23.1 times estimated 2024 earnings of $4.52 and 20.4 times estimated 2025 earnings of $5.10 per share. The stock’s 52-week range is $59.40 to $104.99, and the high was posted Monday. The company pays an annual dividend of $1.12 (yield of 1.07%). Total shareholder return for the past 12 months is 72.42%.
Originally published at 24/7 Wall St.
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