Louisville, Kentucky-based Brown-Forman Corporation (BF.B) manufactures, distills, bottles, imports, exports, markets, and sells various alcoholic beverages. Its offerings include wines, whiskey spirits, ready-to-drink cocktails, vodkas, gin, rum, brandy, bourbons, and more. With a market cap of $19.5 billion, Brown-Forman's operations span the Americas, Europe, Asia, and internationally.
Companies worth $10 billion or more are generally described as "large-cap stocks," Brown-Forman fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the wineries & distilleries industry. It operates through brands like Jack Daniel's, Old Forester, Gentleman Jack, Woodford Reserve, Coopers' Craft, and more.
Despite its strengths, Brown-Forman has tanked 32.2% from its 52-week high of $60.97 achieved on Mar. 5. Furthermore, BF.B has declined 13.4% in the past three months alone, underperforming the First Trust Nasdaq Food & Beverage ETF’s (FTXG) 11.3% dip during the same time frame.
Brown-Forman’s performance has remained grim over the longer-term as well. BF.B stock has plunged 27.6% on a YTD basis and 30% over the past 52 weeks, compared to FTXG’s 5.3% dip in 2024 and 5.6% decline over the past year.
To confirm the bearish trend, BF.B has remained mostly below its 200-day moving average over the past year and below its 50-day moving average since late October with some fluctuations.
Brown-Forman stock prices soared 10.7% after the release of its Q2 results on Dec. 5, as the company’s earnings and revenues surpassed Wall Street’s expectations. However, despite a sequential improvement in international markets and the travel retail channel, Brown-Forman’s overall net sales have continued to decline across geographies. Its net sales for the quarter dropped 1.1% year-over-year to $1.1 billion.
On a positive note, the company has cut down on its operating expenses, which resulted in margin expansion and a marginal increase in operating income to $341 million. Additionally, its EPS of $0.55 beat analysts’ estimates by 7.8%.
Brown-Forman has underperformed its peer The Duckhorn Portfolio, Inc.’s (NAPA) 12.6% gains on a YTD basis and 14.8% surge over the past year.
Among the 16 analysts covering the BF.B stock, the consensus rating is a “Hold.” Its mean price target of $47.50 represents a 14.8% premium to current price levels.
