Louisville, Kentucky-based Brown-Forman Corporation (BF.B) manufactures, distills, bottles, imports, exports, markets, and sells various alcoholic beverages. Its offerings include wines, whiskey spirits, ready-to-drink cocktails, vodkas, gin, rum, brandy, bourbons, and more. With a market cap of $19.5 billion, Brown-Forman's operations span the Americas, Europe, Asia, and internationally.
Companies worth $10 billion or more are generally described as "large-cap stocks," Brown-Forman fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the wineries & distilleries industry. It operates through brands like Jack Daniel's, Old Forester, Gentleman Jack, Woodford Reserve, Coopers' Craft, and more.
Despite its strengths, Brown-Forman has tanked 32.2% from its 52-week high of $60.97 achieved on Mar. 5. Furthermore, BF.B has declined 13.4% in the past three months alone, underperforming the First Trust Nasdaq Food & Beverage ETF’s (FTXG) 11.3% dip during the same time frame.
Brown-Forman’s performance has remained grim over the longer-term as well. BF.B stock has plunged 27.6% on a YTD basis and 30% over the past 52 weeks, compared to FTXG’s 5.3% dip in 2024 and 5.6% decline over the past year.
To confirm the bearish trend, BF.B has remained mostly below its 200-day moving average over the past year and below its 50-day moving average since late October with some fluctuations.
Brown-Forman stock prices soared 10.7% after the release of its Q2 results on Dec. 5, as the company’s earnings and revenues surpassed Wall Street’s expectations. However, despite a sequential improvement in international markets and the travel retail channel, Brown-Forman’s overall net sales have continued to decline across geographies. Its net sales for the quarter dropped 1.1% year-over-year to $1.1 billion.
On a positive note, the company has cut down on its operating expenses, which resulted in margin expansion and a marginal increase in operating income to $341 million. Additionally, its EPS of $0.55 beat analysts’ estimates by 7.8%.
Brown-Forman has underperformed its peer The Duckhorn Portfolio, Inc.’s (NAPA) 12.6% gains on a YTD basis and 14.8% surge over the past year.
Among the 16 analysts covering the BF.B stock, the consensus rating is a “Hold.” Its mean price target of $47.50 represents a 14.8% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- Unusual Options Activity: Revisiting the Good, Bad, and Ugly Recommendations From November
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