Acuity Brands(US:AYI) Investor Placeยท2024-06-19 17:01Core Viewpoint - The article discusses three recommended brand stocks for long-term investment: Constellation Brands, Acuity Brands, and Kontoor Brands, highlighting their market performance and financial metrics [1]. Group 1: Constellation Brands (STZ) - Constellation Brands has a market capitalization of $48.08 billion and is known for its beer products, including Corona Extra and Modelo Especial [2]. - The company has diversified its portfolio to include seltzers, ready-to-drink products, wines, and spirits, and made a significant investment of $4 billion in Canopy Growth in 2018, which has since decreased in value to $190 million as of April 2024 [2][3]. - Analysts are optimistic about STZ stock, with 21 out of 26 rating it a "Buy" and a target price of $300, representing a 17% increase from a year ago [3]. Group 2: Acuity Brands (AYI) - Acuity Brands has shown significant recovery, with its stock up 52% in the past eight months after a two-year struggle [4]. - The company reported Q2 2024 revenues of $906 million, a 4% decline year-over-year, but an adjusted operating profit increase of 6% to $118 million and an 11% rise in adjusted earnings per share to $3.38 [4][5]. - Acuity's free cash flow reached $504.2 million, yielding 6.5%, which is considered fair value [5]. Group 3: Kontoor Brands (KTB) - Kontoor Brands has a market capitalization of $3.81 billion and has seen its shares rise over 10.6% year-to-date and 148% over the past five years [6]. - The company, known for its denim brands like Lee and Wrangler, offers a dividend yield of nearly 3%, significantly higher than the S&P 500 average of 1.3% [6]. - Kontoor's Q1 2024 results exceeded expectations, with a revenue forecast of $2.6 billion, flat year-over-year, and an EPS guidance increase to $4.75 [7].