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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: The Stock Movers Report, your roundup of companies making moves

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Speaker 2: in the stock market. Harnessing the power of Bloomberg Data.

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Speaker 1: Let's take a look now at some stocks making news

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Speaker 1: in the week ahead. I'm Nathan Hager, joined by Bloomberg

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Speaker 1: Markets Live strategists Tatiana Daria. I guess we could say

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Speaker 1: this is the unofficial start of earning season, before the

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Speaker 1: banks get things going right. We've got a few companies

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Speaker 1: opening things up, including Constellation Brands on Wednesday. It's been

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Speaker 1: a tough go for the booze business, hasn't it.

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Speaker 3: Yes, exactly. Expectations aren't very high here for the company,

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Speaker 3: but some analysts on Wall Street are starting to warm

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Speaker 3: up to the stock on valuation concerns, saying that a

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Speaker 3: lot of the bad news is already in the stock

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Speaker 3: so Bloomberg Intelligence forecast dot Net revenue will fall about

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Speaker 3: fifteen percent do mainly to their wine in spirits portfolio devestments,

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Speaker 3: but they're also anticipating some sluggishness in the beer segment,

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Speaker 3: which is obviously their main driver or crown a jewel

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Speaker 3: there and especially among Hispanic consumers. BI notes, but some

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Speaker 3: analysts are saying that most of that is already in

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Speaker 3: the price. Perhaps, you know, the beer segment has room

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Speaker 3: to surprise to the upside. We've seen JP Morgan lifting

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Speaker 3: their price target, We've seen Evercore adding the stock to

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Speaker 3: the tactical outperform list, and it also got an upgrade

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Speaker 3: from City earlier this month, citing a valuation that's below

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Speaker 3: historical levels. And if you look at the forward price

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Speaker 3: to earnings ratio, it has indeed fallen drastically. It's hovering

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Speaker 3: around the lowest since twenty twelve now as shares have

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Speaker 3: come down sharply over the past year.

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Speaker 1: Yeah, valuation concern certainly speaks to that. There Before we

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Speaker 1: hear from Constellation, and we're going to get results as

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Speaker 1: well from Levi Strauss on Tuesday. Of course, we got

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Speaker 1: that big disappointment from Nike this past week. Do you

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Speaker 1: put Levi in the same category as Nike in terms

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Speaker 1: of what to expect there?

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Speaker 3: I think one has to, right because they both speak

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Speaker 3: to the consumer. They're both sort of discretionary brands that

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Speaker 3: you turn to for sort of luxury and comfort, not

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Speaker 3: necessarily because you really need to, And expectations are pretty

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Speaker 3: I would say modestly positive. UBS, for example, expects a

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Speaker 3: fourth quarter sales and EPs beat, though they say the

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Speaker 3: company may remain cautious on a full year outlook amid

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Speaker 3: the macro as. Certainly, just like we've seen with Nike,

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Speaker 3: they know that the US direct to consumer sales likely

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Speaker 3: rose about two percent year over year, and that web

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Speaker 3: traffic likely increased even more in the US according to

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Speaker 3: their industry data that they track. Nonetheless, the company may

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Speaker 3: choose to just be cautious and conservative and not raise

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Speaker 3: their guidance despite the likely beat. And that's because of

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Speaker 3: the reasons that we have seen with the Nike report,

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Speaker 3: with potential fresh setbacks in Europe and the Middle East,

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Speaker 3: regions that are obviously heavily exposed to the energy costs

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Speaker 3: and just the disruptions coming from the year round war.

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Speaker 1: Now, were you expecting any further commentary from Levi around

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Speaker 1: how they're dealing with trade uncertainty as well after that

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Speaker 1: Supreme Court tariff decision and some of the uncertainty around

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Speaker 1: how the President might try to rebuild that terrafall and

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Speaker 1: how that could affect its business.

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Speaker 3: Yes, certainly, you know, tariffs is sort of fallen off

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Speaker 3: the radar, but when you look at company earnings, especially

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Speaker 3: in the consumer space, it is still a big focus.

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Speaker 3: So it will be really interesting to see what the

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Speaker 3: company has to say on that matter.

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Speaker 1: Yeah, and of course earnings take off with Delta Airlines

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Speaker 1: on Wednesday. What kind of a stock move could we

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Speaker 1: see following those results? Ta Tiana.

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Speaker 3: Well, it's interesting with Delta air is that they kind

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Speaker 3: of have been the exception among the airlines. It is

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Speaker 3: the only airline stock bucking the weakness among major peers

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Speaker 3: since the war started. If you look at an index

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Speaker 3: of an industry index, that index has fallen into a

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Speaker 3: bear market recently, but Delta shares have actually gained three

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Speaker 3: percent since the war started. And maybe because the company

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Speaker 3: has already set a positive tone for its earnings report

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Speaker 3: after issuing a more optimistic sales target at a recent conference,

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Speaker 3: saying that bookings for leisure and corporate customers accelerated into March. Actually,

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Speaker 3: and they say they are very well positioned to navigate

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Speaker 3: the current environment at the time when elevated fuel prices

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Speaker 3: are roiling the industry. And it looks like are giving

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Speaker 3: Delta the benefit of the doubt here, But obviously things

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Speaker 3: change very fast these days, so it will be interesting

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Speaker 3: to see how their views have changed since they issued

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Speaker 3: that update about two weeks for two weeks.

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Speaker 1: Ago from now, yeah, absolutely, while we wait for updates

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Speaker 1: around the war and how that could develop as well.

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Speaker 1: I mean, what kind of changes could we see? What

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Speaker 1: are you listening for, particularly from the call from Delta

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Speaker 1: later on.

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Speaker 3: I'll be listening on clues about the consumer right because

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Speaker 3: obviously travel is a discretionary category. Most of us do

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Speaker 3: it for fun, for vacations, so I'll be interested to

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Speaker 3: see if they have seen a pullback from consumers specifically,

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Speaker 3: because if you look at alternative data on the Bloomberg

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Speaker 3: as it relates to that, yes, it showed that airline

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Speaker 3: spending is hanging in there, but hotel spending has sort

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Speaker 3: of fallen off here in recent weeks, So I'd be

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Speaker 3: sort of curious to see how much is that impacting

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Speaker 3: airlines already.

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Speaker 2: The Stockmovers Report from Bloomberg Radio. Check back with us

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Speaker 2: throughout the day for the latest roundup of companies making

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Speaker 2: news on Wall Street and for the latest market moving headlines.

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