While the ongoing Russia-Ukraine saga stays in the headlines, what Wall Street is the most focused on is the raging inflation that continues to push higher. The January and February readings for the consumer and producer price indexes came in white hot, and March is looking to be just as disconcerting. While some feel that we could be close to a peak in the highest inflation numbers in 40 years, citing solid retail sales among other items, others feel that the peak may not hit until this summer or later in the fall, if then.
If any data set can stir arguments among economists, it is probably consumer and producer price index numbers, and with good reason. Rising consumer and producer prices can signal the start of an inflationary period for an economy, and even moderate inflation can rapidly erode purchasing power and can create uncertainty, as businesses have more difficulty estimating future costs.
With the bond market seeing an inversion between the two-year and 10-year notes, albeit briefly, many see a recession and stagflation on the way. So, we screened the Goldman Sachs Conviction List of top stock ideas looking for companies that pay reliable dividends and offer a degree of safety in a volatile climate on Wall Street. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
If any company has products that stay in style, it is this one, which only has 7% foreign sales. Constellation Brands Inc. (NYSE: STZ) is a leading global producer and marketer of beverage alcohol. Its wide-ranging portfolio spans wine, spirits and imported beer.
The company is one the world’s largest wine companies overall and is the largest global premium wine company. Key brands include Robert Mondavi, Clos du Bois, Blackstone, Arbor Mist, Black Velvet and SVEDKA vodka. It also owns 100% of the rights to brew, market and sell Modelo’s Mexican beers in the United States.
Constellation Brands made a gigantic $3.8 billion investment in cannabis company Canopy Growth in 2018 to increase its holdings in the company. The record investment reflects a world in which marijuana has become ubiquitous as its counterculture stigma fades and more states legalize use.
Constellation Brands stock investors receive a 1.31% dividend. Goldman Sachs has a $275 price target, and the consensus target is $272. The stock was last seen Wednesday trading at $231.81 a share.
Fifth Third Bancorp
This top super-regional bank stock remains incredibly cheap and is a beneficiary of higher interest rates. Fifth Third Bancorp (NASDAQ: FITB) is a diversified financial services company headquartered in Cincinnati, Ohio, and the indirect parent of Fifth Third Bank, National Association, a federally chartered institution.
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