Is Constellation Brands A Good Long Term Investment?
Today, financial trading is gaining much traction as a lucrative area to invest in. There are various instruments that you can try out in the financial markets, and one of them is shares. As an investor, one thing you need to keep in mind when investing is how the company in question is performing at stock exchanges. If you are a novice in trading, it is advisable to go for the best-performing companies to improve your chances of having a fulfilling trading stint. One of the companies to consider when looking at impressive share ratings is Constellation Brands. It is a beverage marketer, which specializes in beers, wines, and spirits. In the United States, it is one of the biggest beer importers in terms of sales, as evident on its Wikipedia page. It has a decent portfolio featuring some of the most famous wines in the world and boasts of having a relationship with over 100 brands. As an investor, the question that you may have is if Constellation Brands is a good long term investment plan? To answer this query, we will first have a look at the company’s history and background.
Constellation Brands History
The company came to be in 1945, by Marvin Sounds, and initially went by the name Canandaigua Industries. It ventured into the New York scene as a bulk wine seller to the eastern states of the United States of America. The first year of the company’s existence was quite successful, registering sales worth $150000 from around 200000 gallons of wine. The company got incorporated in 1972, and the following year it went public. It had a name change at the beginning of the millennium and took the name Constellation Brands to reflect on the various ranges of brands under its marketing umbrella. At the moment, it boasts of over 40 facilities and has the third-largest market share in beer distribution.
Should You Invest In This Company?
The company has been around the beverage marketing and supply scene for over 70 years and continues to grow. Presently, it has an employee figure of roughly 9000 personnel, which is evidence of its flourishing state. When you look at its performance focusing on growth, it is a worthy company to buy shares from. Before venturing deep into its market, below are factors that you need to consider for your trading stint to be successful;
The Company’s Reputation
The company’s status is an indication of its face value and is one of the factors that make its stocks prices to be impressive. For a long time, it has the tag of being among the best in the beverage distribution chain, and this attracts a large number of investors who buy into its market. Its marketability makes it easy to sell your shares for profit whenever you want to pull out. You can bank on this company’s stocks when you want to have a long-term trading stint. This is especially applicable if you consider your invested funds savings, as they will bring you excellent returns.
Venture Into The International Market
Constellation Brands has ventured into the global market, where it exports its beverage brands. This move works on its versatility factor as you can bank on the high performance of its sales in various countries, which also contributes to a boost in its stock prices. Additionally, due to the many brands under its umbrella, it has a decent market share that it utilizes to boost its standing on financial markets.
Investment In Medical Marijuana
Marijuana has, for long, been on the short end of legalization having being prohibited in various territories. However, many governments are relaxing their laws when it comes to the use of this drug, especially for medical purposes. The last decade has witnessed various states legalize marijuana use, and there is a huge possibility that many countries will follow suit.
Constellation Brands bought into this trend and is now into the medical marijuana market. This market has tremendous potential, and will most likely amplify the faring of its shares in the stock markets. Looking at the large customer base for medical marijuana that will be prominent with its legalization in other countries, then you know you have a long term financial gold mine with this company.
Steady Prices In The Stock Market
When you are looking at a long term investment plan in the stock markets, you need to look at the price fluctuation rate of the instrument of your choice. You should go for an instrument with steady prices so as to secure your injections. A look at Motley Fool, and you get a hint of the robust ratings of this company’s shares in its respective stock exchanges.
The Company Is Growing Each Day
In the last decade, Constellation Brands has been on a company acquisition spree, which is evident in its growth. As it acquires more entities, it spreads its asset base thus making it stronger. Some of its acquisitions include Ballast Point Brewing in San Diego, High West Distillery, and Funky Buddha Brewery in Oakland Park, Florida. A growing company is a profitable company, and one fit to invest in.
Final Word;
As an investor, one company that should not escape your radar when you want to acquire shares is Constellation Brands. The beverage marketing and distributing entity has been in the commercial scene for almost 75 years and continues to grow each day. Above are some of the factors that point to how lucrative its shares are, thus making it an excellent investment front. Its venture into the medical marijuana industry is one of the important areas to look at, considering the immense potential this industry presents. Constellation Brands is also continually expanding, which is a marker of excellent ratings when focusing on its profitability. Study its patterns at the financial market and make a conclusive decision when it comes to your long term investment goals.
