Is Brown-Forman Stock Underperforming the Dow?

Company Overview - Brown-Forman Corporation, based in Louisville, Kentucky, is a manufacturer and seller of various alcoholic beverages, with a market cap of $12.9 billion. Its product portfolio includes whiskey, vodka, wines, tequila, bourbon, and gin [1]. Market Position - As a large-cap stock, Brown-Forman's market cap exceeds $10 billion, highlighting its size and influence in the beverages - wineries & distilleries industry. The company boasts a premium spirits portfolio, particularly with iconic brands like Jack Daniel's, which supports premium pricing and high profit margins [2]. Financial Performance - In Q1, Brown-Forman reported revenue of $924 million, reflecting a year-over-year decline of 2.8%. The company's earnings per share (EPS) also decreased by 12.2% compared to the same quarter last year [5]. - Year-to-date, Brown-Forman shares have dipped 28.1%, and over the past 52 weeks, they have fallen 41.4%, significantly underperforming the Dow Jones Industrials Average [4]. Stock Performance - Brown-Forman's stock has experienced a decline of 45.2% from its 52-week high of $49.89, reached on October 18, 2024. Over the last three months, the stock gained only 5.4%, underperforming the Dow Jones Industrials Average's 7.6% gains [3][4]. - The stock has been trading below its 50-day and 200-day moving averages, indicating a bearish trend [4]. Analyst Sentiment - Wall Street analysts maintain a cautious outlook on Brown-Forman, with a consensus "Hold" rating from 18 analysts. The mean price target of $32.08 suggests a potential upside of 17.4% from current price levels [6].