Three revelrous stocks for St. Paddy’s Day and beyond
A Time-honored Tipple: Diageo (DEO)
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Diageo (NYSE:DEO) stands tall in the alcoholic beverages domain, with a treasure trove encompassing the iconic Guinness, synonymous with St. Patrick’s Day.
As the festive vibes of St. Paddy’s Day kick in, Diageo raises its glass to the occasion with spirited marketing campaigns, drenched in the emerald hue of the Irish festivity.
Fiscal 2023 blessed Diageo with a robust net cash inflow of 3 billion Great British Pounds (GBP) and a free cash flow amounting to GBP 1.8 billion. Moreover, the announcement of a fresh return of capital program up to GBP 1 billion, on the heels of GBP 1.4 billion disbursed in fiscal 2023, augurs well for investors.
On the horizon, the company’s guidance spanning fiscal 2023 to 2025 envisages organic sales growth of 5% to 7% and organic operating profit surge of 6% to 9%.
The valuation of this spirited juggernaut presents an inviting panorama, with its forward sales and earnings multiples trailing its twelve-month comparables. The multiples stand humbly at 16 times for earnings and a mere 3.8 times for sales.
DEO, the emblem of St. Patrick’s Day stocks, beckons to investors like a beacon in the night.
Embracing Irish Flavors: Anheuser-Busch InBev (BUD)
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Anheuser-Busch InBev (NYSE:BUD) towers in the beer realm, harboring stalwarts like Budweiser and Corona in its arsenal.
Though not draped in Irish linens, BUD harnesses the festive spirit of St. Patrick’s Day by rolling out specialty brews and themed promotions. Its famed Irish red lager, Budweiser Red Light, twirls under the limelight during the nerve-jangling March 17th fiesta. Anticipate a jolly sales upswing for the company during the revelries.
BUD, an unsung hero of the stock universe, confronts transient headwinds in the market narrative. The U.S. territory witnessed a plummet of 17.3% in revenue year-over-year in Q4, a slump predominantly traced back to Bud Light’s sales sag.
Having traversed a rollercoaster ride year-to-date, with a tepid 0.5% return, AB InBev lays an optimistic wager for 2024, projecting an EBITDA growth spurt of 4% to 8%. BUD, in its strides to bolster market share and consumer faith in the U.S., is delving into novel sports affiliations and marketing campaigns, with St. Patrick’s Day forming a significant slice of its stratagem.
A Festive Sip: Boston Beer (SAM)
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Boston Beer (NYSE:SAM), renowned for pioneering the craft beer surge through its Samuel Adams range, embraces the Irish essence with fervor. Its Angry Orchard line-up, inclusive of the revered Irish-style red elixir dubbed “The Muppet,” flaunts the holiday garb with pride. The limited-edition stouts and ciders on offer during the fete are a joyous hit among patrons.
The road ahead gleams brightly for SAM in FY2024. Projections by Zacks portend a 53% surge in EPS to $11.21, buttressed by a persistent uphill trend in FY24 earnings forecasts over the past stretch.
Market sages have christened SAM with a “Hold” mantra collectively. However, a hefty 15.2% upside for investors looms over the ensuing 12 moons, a nugget of delight for shareholders.
Fiscal musings portray a staggering 365% leap in EPS during FY2022, a trend that gingerly promises to hold sway into FY2023 and onwards.
On the date of publication, Matthew Farley traversed the financial terrain, steering clear of direct or indirect positions in the flagged securities. The volitions articulated stem from the soul of the writer, stewarded by the InvestorPlace.com Publishing Guidelines.