4.99k followers • 16 symbols Watchlist by Yahoo Finance
This basket consists of stocks that serve the 18+ crowd, such as casinos, alcohol, tobacco, and strip clubs.
Philip Morris International Inc.
Anheuser-Busch InBev SA/NV
Altria Group, Inc.
Constellation Brands, Inc.
Las Vegas Sands Corp.
Wynn Resorts, Limited
MGM Resorts International
Molson Coors Beverage Company
The Boston Beer Company, Inc.
Penn National Gaming, Inc.
Boyd Gaming Corporation
Red Rock Resorts, Inc.
RCI Hospitality Holdings, Inc.
Shares of Altria Group (NYSE: MO) have gone up in smoke this year as the domestic Marlboro maker fell early in the year after it took another impairment on its Juul Labs stake and then got slammed by the coronavirus pandemic. According to data from S&P Global Market Intelligence, the stock has slipped 21% through the first six months of the year. Altria began the year with Juul facing stiff headwinds as regulators sought to ban flavored e-cigarette pods, the latest setback for the once-promising cigarette disruptor, with the e-cigarette brand embroiled in a number of lawsuits at the state level.
Constellation Brands (STZ) has been upgraded to a Zacks Rank 2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
The Australian dollar rallied again during the week, reaching towards the top of the same consolidation area that we have been in for over a month.
The Australian dollar rallied a bit on Friday, but as it is the holiday in the United States, there would have been a bit of liquidity problems out there.
Americans still plan to attend or host a cookout this 4th of July weekend as the U.S. reported a record-setting 53,000 new coronavirus cases.
The direction of the AUD/USD on Friday is likely to be determined by trader reaction to the 50% level at .6933.
(Bloomberg) -- Here’s a list of companies that are planning to halt spending on social media. Some have joined a boycott of Facebook Inc. after critics accused the social network of inadequately policing hateful and misleading content on its platform:Harley Davidson Inc. -- The motorcycle maker said in an email it was pausing Facebook ads in July “to stand in support of efforts to stop the spread of hateful content.”Pernod Ricard SA -- The French distiller of Jameson whiskey and Absolut Vodka, which spends more than 1.5 billion euros ($1.69 billion) on advertising annually, is boycotting Facebook and some other U.S. sites through July 31 and working with partners on an app to help victims of online abuse.Daimler AG -- The Mercedes-Benz maker is pausing its paid advertising on Facebook platforms in July, while adding that it expects to the relationship to resume because it’s confident the social-media company will take “necessary steps.”Molson Coors Beverage Co. -- The brewer is choosing to pause advertising on Facebook, Instagram and Twitter while it reviews its own standards and ways to protect the brands and guard against hate speech, Chief Marketing Officer Michelle St. Jacques said in an internal email.Constellation Brands -- The maker of Corona beer and Kim Crawford wines is pausing Facebook ads for the month of July.Dunkin’ Brands Group -- The donut chain is temporarily pausing its paid media on Facebook and Instagram, a spokesperson says, adding that it’s in discussions with Facebook about efforts to stop hate speech and thwart “the spread of “racist rhetoric and false information.”Lego A/S -- Stopping all advertising on social media for at least 30 days to review its standards and will “invest in other channels” during that time.The Body Shop -- The beauty chain says it’s halting paid activity on all Facebook channels and asking the social-media company to enhance and enforce its content-moderation policies.Starbucks Corp. -- Pausing advertising on all social media platforms. Will post on social media without paid promotion.Microsoft Corp. -- Paused global advertising spending on Facebook and Instagram because of concerns about ads appearing next to inappropriate content, according to a person familiar with the matter.Unilever Plc -- Halting advertising on Facebook, Instagram and Twitter in the U.S. through Dec. 31.Volkswagen AG -- The ad stop on Facebook affects the direct ad accounts of the German manufacturer’s brands, including Porsche, Audi and Lamborghini. VW, its ad agencies and the Anti Defamation League will enter talks with Facebook over how to deal with hate speech, discrimination and false information, according to an emailed statement.Mars -- Starting in July, a pause on paid advertising globally across social-media platforms, including Facebook, Instagram, Twitter and Snapchat.Target Corp. -- Pausing ads on Facebook in July.Coca-Cola Co. -- Pausing advertising on all social media platforms.Clorox Co. -- Will stop advertising spending with Facebook through December.Conagra Brands Inc. -- Will stop advertising in U.S. on Facebook and Instagram through the rest of the year.Ford Motor Co. -- Halting U.S. social media for 30 days, won’t purchase social media ads for Bronco unveiling.Honda Motor Co. -- “For the month of July, Honda will withhold its advertising on Facebook and Instagram, choosing to stand with people united against hate and racism.” Acura, a Honda brand, said in a tweet that it was “choosing to stand with people united against hate and racism.”Hershey Co. -- Will halt spending on Facebook in July and cut its spend on the platform by a third for the remainder of the year, according to Business Insider.Diageo Plc -- Pausing paid advertising globally on major social media platforms beginning in July.PepsiCo Inc. -- Pulling ads on Facebook from July through August.Verizon Communications Inc. -- “We’re pausing our advertising until Facebook can create an acceptable solution that makes us comfortable and is consistent with we’ve done with YouTube and other partners,” said John Nitti, chief media officer for Verizon.SAP SE -- “We will suspend all paid advertisements across Facebook and Instagram until the company signals a significant, action-driven commitment to combatting the spread of hate speech and racism on its platforms.”Levi Strauss & Co. -- Pausing all paid Facebook and Instagram advertising globally and across all brands through July.Diamond Foundry Inc. -- Pulling all of advertising from Facebook, including Instagram, for the month of July.Patagonia Inc. -- Will pull all ads on Facebook and Instagram, effective immediately, through at least the end of July, pending meaningful action from Facebook.Viber Media Inc. -- The messaging service, owned by Japanese conglomerate Rakuten, plans to cut ties with the social network entirely, according to the Guardian.VF Corp. -- The North Face will pause ads on Facebook for the month of July. Vans, another VF brand, will also pull ad dollars from Facebook and Instagram next month, and said it will use the money to support Black communities through empowerment and education programs.REI -- “For 82 years, we have put people over profits. We’re pulling all Facebook/Instagram advertising for the month of July.”Upwork Inc. -- No Facebook advertising in July.Eileen Fisher Inc. -- Pulling ads from Facebook through July.Adidas AG -- Will stop ads on Facebook and Instagram internationally through July, according to Adweek.Puma SE -- Will stop all advertisements on Facebook and Instagram throughout July.Madewell Inc. -- Will pause ads on Facebook and Instagram through July.Pfizer Inc. -- Removing all advertising from Facebook and Instagram in July, calls on Facebook to heed the concerns of the StopHateForProfit boycott campaign “and take action.”Chipotle Mexican Grill Inc. -- To pause Facebook advertising beginning July 1, according to an email.Chobani -- The Greek-yogurt company paused all paid social-media advertising.Peet’s Coffee -- Paused advertising on Facebook.Sony Interactive Entertainment Inc. -- ”In support of the StopHateForProfit campaign, we have globally suspended our Facebook and Instagram activity, including advertising and non-paid content, until the end of July.”(Updates with Sony Interactive Entertainment)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Facebook Inc. Chief Executive Officer Mark Zuckerberg and Chief Operating Officer Sheryl Sandberg will meet with at least three civil rights groups on Tuesday after their organizations led an advertising boycott of the social media giant.The Facebook executives will meet with Anti-Defamation League Chief Executive Officer Jonathan Greenblatt, Color of Change President Rashad Robinson and Derrick Johnson, chief executive officer of the National Association for the Advancement of Colored People, a Facebook spokesman confirmed.Facebook and the groups didn’t disclose further details of the meeting.Facebook reached out to the civil rights groups last week to arrange a meeting with Sandberg and Chief Product Officer Chris Cox, a company spokesman said. The civil rights groups said they wanted Zuckerberg to be at the meeting and he later confirmed he would attend, the spokesman added.Starbucks Corp., Levi Strauss & Co., PepsiCo Inc. and Diageo Plc were among the most recent companies to say they’re curtailing ad spending, part of an exodus aimed at pushing Facebook and its peers to suppress posts that glorify violence, divide and misinform the public, and promote racism and discrimination.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Investors had good reasons to be cautious heading into Constellation Brands' (NYSE: STZ) earnings report this week. Constellation Brands also announced several big changes to its wine and spirits portfolio. Constellation Brands wasn't immune to this pressure, and sales to those on-premises partners plunged 75%.
As Covid-19 cases rise around the country, investors betting on a casino resurgence may be pressing their luck. Still, there are some regional players worth buying, says Jefferies.
AUD/USD Current Price: 0.6923 * Australian trade surplus rose 2% to $8.03 billion in May, missing the market's expectations. * China Caixin Services PMI seen back to contraction territory in June. * AUD/USD holding on to the upper end of the weekly range, downside limited.The AUD/USD pair surpassed its previous weekly high by a couple of pips, reaching 0.6951 before retreating to end the day unchanged at around 0.6920. Australia released its May Trade Balance this Thursday, which showed that the country's trade surplus rose 2% to $8.03 billion in the month, as imports fell faster than exports. It was below the market's expectations of $9 billion, but still positive. The pair followed equities for intraday direction.This Friday, Australia will publish May Retail Sales, anticipated to be up by 16.3%. The country will also publish the AIG Performance of Construction Index for June, previously at 24.9, and the Commonwealth Bank Services PMI expected unchanged at 53.2. China, in the meantime, will publish the June Caixin Services PMI foreseen at 49.9, down from 55 in May.AUD/USD short-term technical outlook The AUD/USD pair retains its neutral-to-bullish stance. In the 4-hour chart, the price is hovering around a flat 20 SMA and still above the larger ones, which lack directional strength. Technical indicators, in the meantime, lack directional strength but hold above their mid-lines. The risk is skewed to the upside, but the pair needs a good catalyst to finally be able to gather bullish momentum and challenge the 0.7000 level.Support levels: 0.6895 0.6850 0.6810 Resistance levels: 0.6950 0.6990 0.7015View Live Chart for the AUD/USDSee more from Benzinga * EUR/USD Forecast: Neutral, Trading Within Familiar Levels For A Third Consecutive Week * AUD/USD Forecast: Struggling To Rally Beyond The 0.6900 Threshold * EUR/USD Forecast: Pressuring The Upper End Of The Range(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The company's first-quarter results were mixed, with earnings growing and revenue declining. The company weathered the Covid-19 pandemic fairly well Continue reading...
Alcohol company Constellation Brands, Inc. (NYSE: STZ) has certainly felt its share of headwinds as of late, but it didn't "stop us from having a pretty good quarter," CEO Bill Newlands said on CNBC's "Mad Money."Constellation's Shift To Off-Premise: Constellation reported first-quarter results Wednesday that were highlighted by 20% growth in off-premise sales, Newlands said.The on-premise category as a whole declined by 75% -- but the CEO said investors shouldn't necessarily be worried.Constellation is over-indexed or overweighted to the off-premise arena and continues to benefit from consumers shifting their habits away from bars, restaurants and other venues, he said. Corona Hard Seltzer: The recently launched Corona Hard Seltzer already ranks as the fourth seltzer player, with a 6% IRI market share in the U.S., according to the company's earnings report.View more earnings on STZTo date, the company has shipped more than 3.5 million cases of Corona Hard Seltzer, 90% of which were incremental to Constellation Brands' revenue, the CEO said.Looking forward, Constellation expects to ship 10 million cases in the full fiscal year." "We are just scratching the surface, so we think the ceiling is pretty high."Related Links:Boston Beer Analyst Says It's Truly Well-Positioned In Hard Seltzer Category, Raises Price TargetConstellation Brands CEO Says Alcohol Company Had 'Superb' MarchSee more from Benzinga * FDA Gives Kroger Green Light For At-Home COVID-19 Tests * General Mills CEO Says Q4 Beat 'Built On The Back Of Three Good Quarters' * BofA Cuts Macau Estimates After 97% Year-Over-Year Drop In Gross Gaming Revenue(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
If you can ignore the humidity and 90-degree temperatures, you can almost convince yourself it's March and not July. Spring training baseball is restarting and professional basketball and hockey playoffs are around the corner. If you hold Penn National Gaming (NASDAQ:PENN) stock, these are all good signs.Source: Casimiro PT / Shutterstock.com The novel coronavirus disrupted professional and youth sports across the country, with stay-at-home orders and social distancing the flavor of the moment as the health care industry tried to stay ahead of Covid-19 breakouts.And even as cases are again flaring up across the country, there are definite headwinds for companies like Penn National Gaming, which can soon count on its sports books to once again open.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Major League Baseball is looking at a 60-game season with full playoffs. After players are tested for Covid-19 at their home parks, teams are planning a two- to three-week training camp before starting games in late July. * The NBA is preparing for a restart in Orlando, Florida, with playoff contenders sequestered and playing the end of the regular season before 16 teams advance to the playoffs. * The NHL hasn't yet announced firm plans but it appears teams will be stationed in Canada for the end of the regular season. Players have yet to vote on the proposal.And don't forget about the National Football League, which is expected to start playing in September. Penn just signed a deal with Sportradar that will allow customers to use official NFL play-by-play data for live in-game wagering on its sports betting platforms. * 7 Utilities Stocks to Buy With Reassuring Dividends Sports gambling revenues are expected to reach $155 billion by 2024, growing at a neat 8% clip. So, the resumption of professional sports will be a huge benefit to PENN stock. The Barstool ConnectionIn February, Penn National Gaming bought a 36% equity position in Barstool Sports, the sports and lifestyle blog, for $163 million. As part of the deal, Barstool will promote Penn National Gaming's casinos and products for 40 years. Currently Barstool has a following of 66 million monthly unique viewers.Barstool CEO Erika Nardini says the deal was a natural for Barstool.They're the single-largest casino operator in the country. They have an excellent management team. They had a huge vision about taking the Barstool Sports brand and making that their sportsbook brand, whether it's their app or in their physical sports bars or sportsbooks.There's no doubt that the collaboration between Penn National and Barstool will help PENN stock. Even if you don't live near a Penn National casino, sports bettors know Barstool and its brand. Betting on sports through a Barstool app seems like a no-brainer.Even though the Covid-19 pandemic meant sports took a back seat for much of 2020, the resumption of professional sports puts the Barstool-Penn partnership back on the map. PENN Stock at a GlanceOverall, Penn is having a solid year. The stock is up 22% year to date and challenging all-time highs. Three times in the last 18 months, PENN stock neared $40 per share before encountering resistance.But now that professional sports are restarting and 70% of Penn National Gaming's casinos have opened their doors, PENN stock may be able to smash through resistance once and for all.A public offering in May added $300 million in share capital to its balance sheet and $300 million in debt. And while debt levels can be troubling, it's more interesting that Penn National Gaming saw a 60% increase in revenue growth from 2017 to 2019. The Bottom Line on PENN StockWhile we can't project the same kind of rapid growth during a pandemic, Penn National Gaming is bolstering its growth potential with its Barstool partnership and the return of professional sports.Overall, PENN stock has a "B" grade in my Portfolio Grader, where it carries a buy recommendation.Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system -- with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post As Pro Sports Resume, Penn National Gaming Is a Safe Bet appeared first on InvestorPlace.
The reopening of Las Vegas last month made investors bullish on MGM Resorts (NYSE:MGM) stock. But, with a rise in new novel coronavirus cases, a rapid comeback for this casino giant looks questionable.Source: Jason Patrick Ross / Shutterstock.com The company is taking proactive moves to ensure safety, like requiring masks in public places on its properties. But that may not be enough to reassure potential visitors to its Las Vegas and regional hotels. With just 36% of Americans comfortable riding on a plane, Vegas casinos are going to have a tough time filling up hotel rooms and getting people to their gaming tables.So what does that mean for MGM stock in the near-term? Expect today's uncertainty to continue. Yet uncertainty may be good when it comes to making money with this stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf MGM's near-term prospects were brighter, its shares would be trading closer to their pre-pandemic price levels. In other words, their risk/reward ratio would not be very favorable. But, as the shares move lower, investors' odds improve.I'm not saying that the shares are a screaming buy at today's prices. But if the shares creep down to $10 and below, consider the stock a strong bottom-fishing pick. What a Second Wave Means for MGM StockEarlier this month, the shares of this hard-hit casino stock went higher, as investors wagered on a rapid, "V-shaped" recovery. In the minds of many, the pandemic was entering the rear-view mirror. Indeed, with many states opening up, it seemed like the nation was going to rapidly "return to normal." * 7 Utilities Stocks to Buy With Reassuring Dividends What a difference a few weeks makes. With reported cases rising, investors, political leaders, and other stakeholders may have gotten ahead of themselves. That is to say, we are far from out of the woods when it comes to the pandemic.Will Nevada and other states walk back their reopening plans? Will they impose a second lockdown? That remains to be seen. Also unclear is whether MGM's casino business will continue accelerating throughout the summer.As InvestorPlace columnist Mark Hake wrote in his June 25 column, "wait and see" is a good approach. With the July 4th weekend just days away, we'll soon see the extent to which MGM's operations are bouncing back. If the crowds during Independence Day weekend are larger than expected, that will be a clear sign that things aren't as bad as recent headlines indicate.Granted, many will still shun places with large crowds, like casinos. But, if the mask requirements can help minimize infection risks, and if enough people are daring (or stubborn) enough to hit the tables, MGM's comeback story may still be in motion.That being said, today's share price is reasonable, but not dirt cheap. Yet, considering the fact that other casino stocks have become frothier, valuation may not be much of an issue for MGM stock. MGM's Valuation Is ReasonableUsing the enterprise value/EBITDA (EV/EBITDA) metric, MGM looks reasonably priced, but not cheap. The shares have an EV/EBITDA ratio of 12.9. Rivals like Caesars Entertainment (NASDAQ:CZR), and Las Vegas Sands (NYSE:LVS) sell at similar or lower valuations.But, as I wrote earlier this month, the shares look like a bargain compared to Penn National (NASDAQ:PENN) stock. With Penn's sports-wagering catalyst helping to boost its valuation, that stock currently has an EBITDA multiple of 15.And that's despite the fact that the easy money's already been made with Penn stock. Even as "second wave" fears threaten this company's comeback, MGM remains a stronger bet on a casino comeback.Nevertheless, now may not be the best time to buy MGM stock. Given that rising coronavirus cases could cause another selloff, an opportunity to buy the shares at an even cheaper price may be just around the corner.Sure, there's a chance that MGM's July 4 weekend results could exceed expectations, sending its shares higher. But giving up some potential gains for less risk may be worthwhile. With Uncertainty Still in the Cards, Take Your Time Before Betting on MGM StockCasino stocks are less risky than the shares of other hard-hit sectors. Airline stocks, for example, face a bumpier road.Nevertheless, casino stocks could dip down the road, creating a solid entry point.I'm not saying, "bet big on MGM stock." It could be years before the company gets fully "back to normal." But if its stock continues to dip, take advantage of uncertainty and buy it on any pullback.Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post As Coronavirus Cases Surge, MGM Stock Could Head Lower appeared first on InvestorPlace.
Looking at the stock market today, the first thought that comes to mind is that it is divorced from economic reality Continue reading...
Constellation Brands, Inc. (NYSE: STZ) seems poised to come out of the pandemic in a stronger position, as depletions in beer remain robust and the company moves past overhangs like the Gallo transaction, according to BofA Securities.The Constellation Brands Analyst Bryan Spillane maintained a Buy rating on Constellation Brands and raised the price target from $190 to $220.The Constellation Brands Thesis Constellation Brands reported first-quarter adjusted earnings for fiscal 2021 at $2.30 per share, beating the BofA estimate of $2.10 per share, with the upside being driven by better operating margins in both the beer and wine and spirits segments, Spillane said in the Thursday note. (See his track record here.)The beverage company has done a good job managing beer production through COVID-19, "with a focus on keeping top performing SKUs including Modelo & Corona in-stock."Spillane expressed optimism regarding Constellation Brands continuing to gain market share during the upcoming July 4 weekend, "as in-stocks in the off-premise channel will be increasingly important as consumer shift drinking occasions to at home."The analyst raised his earnings estimates for fiscal 2021, 2022 and 2023 from $8.11 per share to $8.80 per share; from $8.84 to $9.65; and from $9.85 to $10.74, respectively.STZ Price Action Shares of Constellation Brands were nearly flat at $186.01 at the time of publication. Related Links:Constellation Brands: Q1 Earnings Insights10 Biggest Price Target Changes For ThursdayLatest Ratings for STZ DateFirmActionFromTo Jul 2020JefferiesMaintainsBuy Jul 2020CitigroupMaintainsNeutral Jul 2020JP MorganMaintainsOverweight View More Analyst Ratings for STZ View the Latest Analyst Ratings See more from Benzinga * Constellation Brands Has 'Very Real' Beverage Production Risks, MKM Says In Downgrade(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The Australian dollar rallied a bit during the trading session after the jobs number came out in the United States better than anticipated.
For his final "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer checked in with Bill Newlands, president and CEO of Constellation Brands , the wine and spirits maker whose shares rose 6.2% after reporting strong sales on Wednesday. Newlands said despite many headwinds in the quarter, Constellation was still able to deliver great results. Constellation is overweight toward off-premise, Newlands said, which led to their strong sales.
Earlier this year, Penn National Gaming (NASDAQ: PENN) completed the first of two planned equity purchases of Barstool Sports. The deal gave Penn 36% of Barstool with warrants to acquire up to 50% of the company at a $450 million valuation. Shares have since cooled back off to roughly $32 per share amid casino shutdowns and the halting of professional sports.
With markets volatile – bouncing around the 3,000 to 3,200 range for the last two weeks – and fears rising that a second wave of coronavirus cases will force a new round of economic shutdowns, investors are giving a second look to some strong defensive stocks. We’re talking about stocks with classic defensive profiles: high yielding dividends, combined with a high upside potential. Using TipRanks database, we’ve pinpointed two such stocks. Both offer investors a fine combination of defensive traits: dividends yielding over 8%, an upside potential starting at 25%, and ‘Strong Buy’ consensus rating from Wall Street’s analyst corps. Archrock, Inc. (AROC)We’ll start with Archrock, a natural gas midstreaming company. The midstream sector connects gas extraction with the final customer; midstream companies control the pipelines, transport, and storage facilities that the natural gas industry depends on. Archrock has operations in the lower 48 states, providing the compression equipment that liquifies natural gas for transport and storage.The economic shutdowns in Q1 forced a decline in demand, and Archrock’s Q1 EPS was a down sharply sequentially, from 27 cents to 12 cents. At the same time, revenues beat both the estimates and the year-ago number. At $249.7 million, the top line was up 5.7% year-over-year.A strong free cash flow and heavy-handed actions to cut costs and shore up liquidity allowed AROC to maintain its dividend payment for Q1, and the company paid out 14.5 cents per share common share back in May. This was unchanged from Q4, and up 10% from the first quarter of 2019. It’s a measure of Archrock’s underlying soundness and commitment to the dividend that the company has kept up the payment even during the corona crisis. At 58 cents per share annualized, AROC's dividend yield is an impressive 8.54%.5-star analyst T J Schultz, of RBC Capital, believes AROC has a firm foundation to move forward. He writes of the stock, “We expect lower associated gas production to have an impact on AROC utilization into 2021, but we think manageable debt leverage and ample dividend coverage provide some flexibility… we think the riskreward is decent at current levels given AROC’s liquidity, lack of near-term debt maturities, and ability to pull additional levers to manage liquidity further if needed.”Schultz’ Buy rating on the stock is supported by an $11 price target, which suggests an impressive 68% upside potential for the year. (To watch Schultz’ track record, click here)Overall, the Strong Buy analyst consensus rating on AROC is unanimous, based on 3 recent Buy reviews. Shares are priced at $6.55, and the $9.17 average price target implies a one-year upside of 40%. (See Archrock stock analysis at TipRanks)Altria Group, Inc. (MO)The next stock on our list is a classic ‘sin stock.’ Altria is a tobacco company, the maker of Marlboro cigarettes. Tobacco companies have a long history of outperforming market downturns, and the reason is psychological. People will make big changes when financial hardship hits. They’ll give up luxuries and large purchases, and even delay home and repairs – but they’ll keep buying small pleasures like cigarettes. It’s a quirk that has helped make MO a strong defensive play even as overall smoking rates decline.A look at the Q1 numbers bears out Altria’s solid position. Revenues and earnings – the top and bottom lines – both beat the estimates. Revenues, at $5.05 billion, were 9% above forecasts, and 15% over the year-ago number. EPS came in at $1.09, 12% higher than expected and up almost 7% year-over-year.Wise diversification from the company has also helped. Altria has taken strong positions the cannabis industry, the vaping sector, and in alcohol, with large-scale investments in Cronos Group, JUUL Labs, and AB InBev. These moves mark a shift for Altria, from pure-play tobacco to the full spectrum of vices.Altria’s sound niche has allowed the company to keep its solid dividend – with a 12-year history of reliable payments and steady growth – up to date. The company declared its next payment for July 10, of 84 cents per common share. This gives and annualized rate of $3.36 per share, and a yield of 8.56%. The 77% payment ratio is high, showing a commitment to returning profits to shareholders – but it also shows that the company can sustain the dividend at current income levels.Piper Sandler analyst Michael Lavery sees Altria’s overall position as favorable, even during the pandemic. He states his belief that “We believe consumption may have actually increased during the pandemic, as smokers spend more time away from offices, restaurants, and places with smoking bans. Lower income consumers have also benefited from increased unemployment benefits and the government stimulus... Altria has a vast database of adult US smokers, and it has data at the zip code level to inform pricing and couponing strategies. Altria can monitor and manage mix with its revenue management system on a very targeted basis.”Lavery’s Buy rating on the stock is backed by his $57 price target, which implies a robust upside for MO shares of 45%. (To watch Lavery’s track record, click here)With 6 Buy ratings set in recent weeks, MO shares have a Strong Buy from the analyst consensus rating. The $54.50 average price target suggests an upside of 39% from the $39.24 current trading price. (See Altria stock-price forecast on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Constellation Brands (STZ) saw a big move last session, as its shares jumped more than 6% on the day, amid huge volumes.