Brown Forman Corp. (BF/B): Today's Most Compelling Stock Buy



SoTM Bull's Eye Report - Today's Most Compelling Buy
Thursday, May 23, 2013

At, 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.





% Gain
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 & Vintners have enjoyed a mostly positive 2013 thus far, as charts like Constellation Brands (STZ) are red hot, while others like Beam Inc (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).

Looking to trade the Bull's Eye stock picks? Click here to download our free Special Report, "How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them"
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. During the fiscal year ended April 30, 2012 (fiscal 2012), it acquired the trademarks and related intellectual property rights (brand name) to Maximus Vodka.

Stock Rating:

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.


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.

  Brown Forman Corp - Last 3 Months

  Brown Forman Corp - Last 12 Months

  Brown Forman Corp - Last 5 Years



The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.

The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

Employees and affiliates of HCM and Ridge may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. Editors will indicate whether they or HCM has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.

Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index containing the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many indices owned and maintained by Standard & Poor's, a division of McGraw-Hill. S&P 500 is used in reference not only to the index but also to the 500 companies that have their common stock included in the index.

Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: BEAM , BF/B , STZ

David Moenning

More from David Moenning:

Related Videos

Spot the Dropout RRC
Spot the Dropout RRC                
Spot the Dropout MG
Spot the Dropout MG                 




Most Active by Volume

  • $95.21 ▼ 1.84%
  • $18.13 ▼ 0.17%
  • $5.19 ▼ 6.49%
  • $46.88 ▲ 1.27%
  • $3.97 ▲ 0.51%
  • $15.10 ▼ 0.72%
  • $36.08 ▼ 11.61%
  • $122.37 ▼ 0.50%
As of 7/30/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by