Bull’s Eye Report: Brown-Forman Corp. (BF.B)

BF.B has had a slightly sloppy ride up in 2013

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
Brown-Forman Corp BF.B Distillers & Vintners 8.2 +12.47% $69.97

Why We Like The Stock:

Brown-Forman Corp. (BF.B) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Distillers and vintners have enjoyed a mostly positive 2013 thus far, as charts like Constellation Brands (STZ) are red hot, while others like Beam (BEAM) and BF.B have had good but slightly sloppy rides higher. BF.B spent the month of April consolidating in the $69-$72 range before breaking out in mid-May to new highs right around $73. This week, the stock has pulled right back down to its 50-day moving average, currently sitting right on top of it. We like BF.B as long as it holds above $70, and it would be even more attractive should it bounce off its 50-day and turn back around this morning. We would set a tight stop at $69.97 to limit the downside in this shaky market, and look for a run back above $73 and beyond.

We Would Be Buyers:

At the current price (~$70.72).

Company Profile:

Brown-Forman Corporation manufactures, bottles, imports, exports, and markets a range of alcoholic beverage brands. The company’s principal beverage brands include Jack Daniel’s Tennessee Whiskey, Chambord Vodka, Jack Daniel’s Single Barrel, Don Eduardo Tequila, Jack Daniel’s Ready-to-Drinks, Early Times Bourbon, Jack Daniel’s Tennessee Honey, Early Times Kentucky Whisky, Gentleman Jack, el Jimador Tequilas, Southern Comfort, Herradura Tequilas, Southern Comfort Ready-to-Drinks, Korbel California Champagnes, Southern Comfort Ready-to-Pours, Maximus Vodka, Southern Comfort Lime and New Mix Ready-to-Drinks. Its beverage brands also include Southern Comfort Fiery Pepper, Old Forester Bourbon, Southern Comfort Bold Cherry, Little Black Dress Vodkas, Finlandia Vodka and Collingwood Whisky.

Stock Rating: 8.2

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Brown-Forman Corp. – Last Three Months

bf b 1 Bulls Eye Report: Brown Forman Corp. (BF.B)

Brown-Forman Corp. – Last 12 Months

bf b 2 Bulls Eye Report: Brown Forman Corp. (BF.B)

Brown-Forman Corp. – Last Five Years

bf b 3 Bulls Eye Report: Brown Forman Corp. (BF.B)

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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.


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