Constellation

US21036P1084

STZ

STZ

The decision was finally made in favor of $STZ (-1,59 %) has finally been made. Let's see.

Diageo $DGE (+1,9 %) vs. Constellation Brands $STZ (-1,59 %) - Which "drink" belongs in the depot? 🍸📈

Hello everyone,

I'm just about to give my portfolio a little "sip" and am faced with a difficult decision: Diageo or Constellation Brands? Both stocks look very interesting to me.

Here are a few "hard" facts to get me thinking:

Diageo

- P/E RATIO: 18.6

- Dividend yield: 3.3%

- Sales growth: Stable growth of around 5% p.a. in recent years

- Geographical diversification: Sales are generated worldwide, with strong positions in Europe, North America and Asia

- Product portfolio: Premium spirits such as Johnnie Walker, Guinness, Smirnoff, Tanqueray, to name but a few

Constellation Brands

- P/E RATIO: 18.1

- Dividend yield: 1.5%

- Sales growth: Strong performance, driven by the US beer market

- Geographic diversification: Mainly US and Mexico, but with expansion plans

- Product portfolio: Beer brands such as Corona, Modelo and wine and spirits brands; plus an exciting stake in the cannabis market

Diageo brings impressive stability and global presence. Its brands are iconic and the company has a proven track record. The dividend is solid and the company has proven that it can deliver consistently, even in uncertain times.

But then there's Constellation Brands, with a strong position in the profitable US beer market and an interesting foray into the cannabis sector. They are innovative and have the potential to enter new, growing markets. The numbers look good, and their P/E ratio is in a similar range to Diageo - but with a bit more risk, I'd say.

So now I'm faced with a choice: do I play it safe with Diageo and their global influence, or do I take the extra risk with Constellation Brands and hope for a repeat/continuation of past performance?

What do you think? Which of these two stocks would you add to your portfolio, and why? 🍷🍻

I look forward to your well-founded opinions - and perhaps a few personal "tasting experiences"! 😉

Here is the calendar for the coming week:

Monday:

• S&P U.S. Purchasing Managers' Index (PMI) for the manufacturing sector (June)
• Construction Spending (May)
• ISM Purchasing Managers' Index (PMI) for the manufacturing sector (June)

Tuesday:

• Comments from Fed Chairman Jerome Powell
• Job openings (May)

Wednesday:

• ADP Employment Report (June)
• Initial claims for unemployment benefits (week ending June 29)
• S&P U.S. Purchasing Managers' Index (PMI) for the services sector (June)
• ISM Purchasing Managers' Index (PMI) for the services sector (June)
• Trade Deficit (May)
• Orders for goods production (May)
• Publication of the minutes of the FOMC meeting in June
• Quarterly results from Constellation Brands ($STZ (-1,59 %))
• Statements by John C. WilliamsPresident of the New York Fed

Thursday:

• ⚠️Independence Day⚠️

Friday:

• US Labor Market Report (June)

The market overview for 🇺🇸 & 🇪🇺:

US MARKET🇺🇸

Monday

• PACS Group ($PACS) and UL Solutions ($ULS) have potential IPOs.
• Neel KashkariPresident of the Minneapolis Fed, delivers remarks.

Tuesday

• Release of the NFIB Small Business Optimism Index (March).
• Quarterly reports from WD-40 ($WDFC (-0,85 %) ) and Tilray Brands ($TLRY (-0,62 %) ).

Wednesday

• Publication of the consumer price index (March).
• Publication of the wholesale stocks (March).
• Publication of the minutes of the March meeting of the Federal Open Market Committee (FOMC).
• Publication of the monthly federal budget of the USA (March).
• Speeches by Austan GoolsbeePresident of the Chicago Fed.
• Quarterly reports from Delta Air Lines ($DAL (-0,19 %) ) and Applied Digital ($APLD ).

Thursday

• Publication of the initial applications for unemployment benefits (April 5).
• Publication of the producer price index (March).
• Speeches by John C. Williams, President of the New York Fed, and Raphael BosticPresident of the Atlanta Fed.
• Quarterly reports from Constellation Brands ($STZ (-1,59 %) ), Fastenal ($FAST (+0,9 %) ) and CarMax ($KMX (-0,17 %) ).

Friday

• Publication of the preliminary Michigan Consumer Sentiment Index (April).
• Speeches by Raphael Bostic, President of the Atlanta Fed, and Mary C. DalyPresident of the San Francisco Fed.
• Quarterly reports from JPMorgan Chase ($JPM (+0,94 %) ), Wells Fargo ($WFC (+2,23 %) ), BlackRock ($BLK (+0,66 %) ), Citigroup ($C (+4,51 %) ), State Street ($STT (+2,07 %) ) and Progressive ($PGR (-1,31 %) ).

EUROPEAN MARKET🇪🇺

Monday

• Publication of Industrial Production Index🇪🇺

Tuesday

• ZEW Economic Sentiment🇩🇪 will be published
• Quarterly reports from Ericsson ($ERIC A (+0,76 %) )🇸🇪, Beiersdorf AG ($BEI (+3,44 %) )🇩🇪, Sika ($SIKA (+2 %) )🇨🇭, Rio Tinto PLC ($RIO (+2,9 %) )🇬🇧

Wednesday

• Release of CPI data🇪🇺
• Quarterly reports from Hays ($HAS (+3,59 %) )🇬🇧, Petershill Partners ($PHLL )🇬🇧, Just Eat Takeaway ($TKWY (+1,98 %) )🇬🇧, Entain ($ENT (+1,86 %) )🇬🇧, La Francaise ($FDJ (+0 %) )🇫🇷, Legal & General ($LGEN (+0,11 %) ), Tryg ($TRYG (-0,61 %) )🇩🇰, BHP Group Ltd ($BHP (+3,03 %) )🇬🇧, ASML Holding ($ASML (+4,37 %) )🇳🇱Volvo B ($VOLV B (+1,09 %) )🇸🇪, Severstal ($CHMF )🇷🇺

thursday

• Publication of Construction Output🇪🇺
• Quarterly reports from Danone ($BN (-0,53 %) )🇫🇷, Nokia Oyj ($NOKIA (+0,64 %) )🇫🇮, Tele2 AB ($TEL2 B (-0,27 %) )🇸🇪

There are some important economic events coming up in the next week that could be relevant:

Monday

• S&P Global Manufacturing PMI - Final Reading (September)
• ISM Manufacturing PMI (September)
• Construction Spending (August)

Tuesday

• Companies like McCormick & Company ($MKC (-1,07 %) ), Cal-Maine Foods Inc. ($CALM (+2,93 %) ) and Novagold Resources Inc.. ($NG (+1,17 %) ) will release their quarterly reports.
• Job Openings and Labor Turnover Survey (JOLTS) (August)
• IBD/TIPP Economic Optimism Index (October)
• LMI Logistics Managers' Index (September)

Wednesday

• Companies like RPM International Inc. ($RPM (+1,82 %) ), Acuity Brands Inc. ($AYI (+1,24 %) ) and Helen of Troy Ltd.. ($HELE (+0,47 %) ) will release their quarterly reports.
• ADP National Employment Report (September)
• S&P Global Services PMI - Final Reading (September)
• S&P Global Composite PMI - Final Reading (September)
• ISM Services PMI (September)
• PLAndings Manufacturing (August)

Thursday

• Companies like Constellation Brands ($STZ (-1,59 %) ), Lamb Weston Holdings ($LW (-0,63 %) ), ConAgra Brands ($CAG ) and Levi Strauss & Co. ($LEVI (+0,34 %) ) will release their quarterly reports.
• Challenger, Gray & Christmas Job Cuts (September)
• Trade Balance of the USA (August)

Friday

• U.S. Nonfarm Payrolls (September)
• Consumer Credit Report (August)
• Updates on the Labor Market